Stellus Capital Investment Corporation reported its financial results for the first quarter of 2025, revealing a net investment income of $9.8 million, or $0.35 per share, compared to $10.2 million, or $0.42 per share, in the same period last year. The company’s total investment income for the quarter was $24.9 million, a decrease from $26.0 million in the prior year, primarily due to lower interest income from its debt investments. The company’s net increase in net assets resulting from operations was $5.0 million, or $0.18 per share, down from $13.1 million, or $0.54 per share, in the previous year.
Total assets as of March 31, 2025, were reported at $1.01 billion, an increase from $980.9 million at the end of 2024. The company’s liabilities also rose to $639.0 million from $611.0 million, driven by an increase in its credit facility payable, which rose to $219.1 million from $172.3 million. Stellus Capital’s net assets stood at $372.8 million, reflecting a slight increase from $369.9 million at the end of the previous fiscal year. The net asset value per share decreased to $13.25 from $13.46.
In terms of operational developments, Stellus Capital made investments totaling $55.4 million in seven new and five existing portfolio companies during the quarter. The company also received $15.0 million in proceeds from repayments of its investments. As of March 31, 2025, Stellus Capital had a portfolio consisting of 110 companies, with approximately 90% of its investments in first lien debt. The company’s investment strategy focuses on lower middle-market companies, typically those with EBITDA between $5 million and $50 million.
Looking ahead, Stellus Capital remains committed to maximizing total returns for its stockholders through a combination of current income and capital appreciation. The company has indicated that it will continue to monitor market conditions and adjust its investment strategy accordingly. The management also noted that it has sufficient liquidity to meet its unfunded commitments, which totaled $46.2 million as of March 31, 2025. The company declared a regular monthly dividend of $0.40 per share for the quarter, consistent with the previous year, and plans to maintain its distribution strategy in line with its RIC status.
About Stellus Capital Investment Corp
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