NexPoint Capital, Inc. reported its financial results for the first quarter of 2025, revealing a total investment income of $650,016, an increase from $532,035 in the same period last year. The company experienced a net investment income of $293,824, or $0.03 per share, compared to a loss of $75,319, or $(0.01) per share, in the prior year. However, the company reported a net decrease in net assets resulting from operations of $(1,074,939), or $(0.12) per share, primarily due to unrealized losses on investments.
Total assets as of March 31, 2025, were $45,010,508, a decrease from $46,576,001 at the end of 2024. The decline in total assets was attributed to a reduction in the fair value of unaffiliated investments, which fell to $34,329,374 from $35,244,976. The company's net assets also decreased to $42,880,040, down from $45,276,270 at the end of the previous fiscal year, resulting in a net asset value per share of $4.99, down from $5.21.
In terms of operational developments, NexPoint Capital maintained a portfolio consisting of 26 investments, with a fair value of $43,249,466. The portfolio included 14.4% in first lien senior secured loans and 37.0% in common stocks. The company did not make any new long or short investments during the quarter but generated proceeds from sales and principal repayments of $15,213. The weighted average cost price of investments was reported at 90.81% of par value, with an estimated gross annual portfolio yield of 7.3%.
Looking ahead, NexPoint Capital's management expressed a commitment to generating high current income and long-term capital appreciation through investments primarily in middle-market companies, particularly in the healthcare sector. The company plans to continue leveraging its expertise in distressed investing and restructuring to identify attractive investment opportunities. However, the management acknowledged potential risks, including market volatility and interest rate fluctuations, which could impact future performance. The company remains focused on maintaining its status as a regulated investment company (RIC) and meeting its distribution requirements to avoid federal income taxes.
About NexPoint Capital, Inc.
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