Announces Third Quarter 2024 Earnings Release and Conference Call Schedule
HOUSTON, Oct. 15, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE:MAIN) ("Main Street" or the "Company") is pleased to announce its preliminary operating results for the third quarter of 2024 and its third quarter 2024 earnings release and conference call schedule.
In commenting on the Company's operating results for the third quarter of 2024, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are pleased with our performance in the third quarter, which resulted in another quarter of strong operating results, including a new record for net asset value per share for the ninth consecutive quarter, distributable net investment income per share that continued to exceed the dividends paid to our shareholders and an estimated return on equity of over 18% for the quarter. We believe that these continued strong results demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business and the underlying strength and quality of our portfolio companies. We are also pleased that we further improved our strong capital structure and liquidity position during the quarter and ended the quarter with attractive investment pipelines in both our lower middle market and private loan investment strategies, each of which have us well positioned for the future."
Mr. Hyzak continued, "The total dividends paid to our shareholders in the third quarter of 2024 increased by 7.3% compared to the third quarter of 2023, continuing our trend of increasing the dividends paid to our shareholders over the past few years. Our positive performance in the third quarter allowed us to continue to generate distributable net investment income per share that exceeded the total dividends paid to our shareholders, with our estimated distributable net investment income for the third quarter of 2024 exceeding the monthly dividends paid to our shareholders by over 43% and the total dividends paid to our shareholders by over 2%. Based upon the continued strength of our performance in the third quarter, we expect another meaningful supplemental dividend to be paid in the fourth quarter of 2024. This would represent our thirteenth consecutive quarterly supplemental dividend, to go with the eight increases to our regular monthly dividends since the fourth quarter of 2021, allowing us to deliver significant value to our shareholders, while continuing to maintain a conservative dividend policy."
Preliminary Estimates of Third Quarter 2024 Results
Main Street's preliminary estimate of third quarter 2024 net investment income ("NII") is $0.99 to $1.01 per share and distributable net investment income ("DNII") is $1.05 to $1.07 per share.(1)
Main Street's preliminary estimate of net asset value ("NAV") per share as of September 30, 2024 is $30.54 to $30.60, representing an increase of $0.74 to $0.80 per share, or 2.5% to 2.7%, from the NAV per share of $29.80 as of June 30, 2024, with this increase after the impact of the supplemental dividend paid in September 2024 of $0.30 per share. The estimated increase in NAV per share is primarily due to the net fair value increase on the investment portfolio resulting from the net realized gain and the net unrealized appreciation on portfolio investments, including an increase in the fair value of the wholly-owned asset manager, and the accretive impact of equity issuances during the quarter, with these increases partially offset by the net tax expense for the quarter.
As a result of Main Street's preliminary estimates of NII and net changes in the fair market value of its investment portfolio as noted above, Main Street estimates that it generated a quarterly annualized return on equity of 18% to 20% for the third quarter of 2024.(2)
Main Street preliminarily estimates that non-accrual investments comprised 1.4% of the ...
