PennantPark Investment Corporation reported its financial results for the quarter ending March 31, 2025, revealing a total investment income of $30.7 million, a decrease from $36.0 million in the same period last year. The decline in revenue was primarily attributed to a reduction in the total portfolio size and a decrease in the weighted average yield on debt investments. For the six months ending March 31, 2025, total investment income was $64.9 million, down from $70.3 million in the prior year. The company’s net investment income for the quarter was $11.4 million, or $0.18 per share, compared to $14.3 million, or $0.22 per share, in the previous year.
In terms of expenses, PennantPark reported a total of $19.2 million for the quarter, down from $21.7 million in the same quarter of 2024. The decrease was mainly due to lower interest expenses and incentive fees. For the six-month period, total expenses remained flat at $40.4 million compared to the previous year. The company experienced net realized losses of $27.7 million for the quarter, slightly better than the $31.0 million loss reported in the same quarter of 2024. The net change in unrealized appreciation on investments was $27.1 million for the quarter, contributing to a net increase in net assets resulting from operations of $9.5 million.
Operationally, PennantPark's portfolio as of March 31, 2025, totaled $1.21 billion, with a composition of 41% first lien secured debt, 10% U.S. government securities, and 29% equity investments. The company had three portfolio companies on non-accrual status, representing 1.6% of the overall portfolio on a cost basis. The average investment size in the portfolio was approximately $6.9 million, with a weighted average yield on interest-bearing debt investments of 12.0%. The company also reported a net unrealized appreciation of $40.7 million as of the end of the quarter.
Looking ahead, PennantPark continues to focus on middle-market companies, which it believes offer attractive risk-reward opportunities. The company has a multi-currency Truist Credit Facility of up to $500 million, with $314.5 million drawn as of March 31, 2025. The facility is secured by substantially all of the company's assets and has a weighted average interest rate of 6.7%. The company is also exploring additional equity and debt capital through various offerings to support its investment objectives. As of the reporting date, PennantPark had cash and cash equivalents of $32.6 million available for investments and general corporate purposes.
About PENNANTPARK INVESTMENT CORP
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