The Board of Trustees of Barings Participation Investors (NYSE: MPV) (the "Trust") met on May 16, 2024 and would like to report its preliminary financial results for the first quarter of 2024.
Financial Highlights(1) |
Three Months Ended
|
Three Months Ended
|
||||||
|
Total Amount |
Per Share(5) |
Total Amount |
Per
|
||||
Net investment income(2) |
$ |
3,803,027 |
$ |
0.36 |
$ |
3,529,750 |
$ |
0.33 |
Net realized (losses) / gains(3) |
$ |
1,215,599 |
$ |
.11 |
$ |
198,004 |
$ |
0.02 |
Net unrealized appreciation |
$ |
369,810 |
$ |
0.03 |
$ |
631,658 |
$ |
0.06 |
Net increase in net assets resulting from operations |
$ |
5,018,627 |
$ |
0.47 |
$ |
4,449,487 |
$ |
0.42 |
|
|
|
|
|
||||
Total net assets (equity) |
$ |
168,705,696 |
$ |
15.88 |
$ |
163,366,715 |
$ |
15.41 |
| (1) All figures for 2024 are unaudited |
(2) December 31, 2023 figures net of approximately $0.04 per share of excise tax. |
(3) December 31, 2023 figures net of approximately $0.01 per share of capital gains tax |
(4) Based on shares outstanding at the end of the period of 10,601,700 |
(5) Based on shares outstanding at the end of the period of 10,622,421 |
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated, "The Trust earned $0.36 per share of net investment income, net of taxes, for the first quarter of 2024, compared to $0.33 per share in the previous quarter. The increase in net investment income was predominantly due to higher base rates. During the quarter, Barings continued to drive origination flow into quality, 1st lien senior secured middle-market investments. When constructing portfolios, we focus on investing in high-quality businesses that are leaders in their space and offer defensive characteristics that will allow them to perform through economic cycles.”
The Board of Trustees declared a quarterly dividend of $0.36 per share, payable on June 14, 2024, to shareholders of record on May 31, 2024. This represents an increase of $0.01 per share or 2.9% over the previous dividend of $0.35 per share and the seventh consecutive quarterly increase.
During the three months ended March 31, 2024, the Trust reported total investment income of $4.9 million, net investment income of $3.8 million, or $0.36 per share, and a net increase in net assets resulting from operations of $5.3 million, or $0.50 per share.
Net asset value ("NAV") per share as of March 31, 2024, was $15.88, as compared to $15.41 as of December 31, 2023. The increase in NAV per share was primarily attributable to net investment income, net of taxes, of $0.36 per share, net unrealized appreciation on the Trust’s investment portfolio of approximately $0.03 per share and net realized gain on investments, net of taxes, of $.08 per share.
The next scheduled meeting of the Board of Trustees will be held on August 15, 2024.
Recent Portfolio Activity
During the three months ended March 31, 2024, the Trust made eight new investments totaling $6.1 million and 28 add-on investments in existing portfolio companies totaling $4.0 million. During the three months ended March 31, 2024, the Trust had five loans repaid at par totaling $9.5 million and two equity investments were realized totaling $1.0 million.
Liquidity and Capitalization
As of March 31, 2024, the Trust had cash of $4.0 million and $18 million of borrowings outstanding. The Trust had unfunded commitments of $9.5 million as of March 31, 2024.
Net Capital Gains
The Trust realized net capital gains of $897,805 or $0.08 per share during the quarter ended March 31, 2024. By comparison, for the quarter ended December 31, 2023, the Trust realized net capital gains of $198,004 or $0.02 per share.
Annual Meeting
At the Annual Meeting, which was held on Thursday, May 16, 2024, shareholders elected Clifford M. Noreen as an Interested Trustee and Edward P. Grace III as an Independent Trustee, each for three-year terms.
About Barings Participation Investors
Barings Participation Investors is a closed-end management investment company advised by Barings LLC. Its shares are traded on the New York Stock Exchange under the trading symbol ("MPV").
About Barings LLC
Barings is a $406+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*Assets under management as of March 31, 2024
Per share amounts are rounded to the nearest cent.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Cautionary Notice: Certain statements contained in this press release may be "forward-looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the fund's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the fund's current or future investments. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise.
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