Portman Ridge Finance Corporation held its third-quarter 2023 earnings conference call with Ted Goldthorpe, the CEO, and two other executive officers, to discuss the company’s performance and activities. Portman Ridge announced that their core investment income was up year-over-year, while their net asset value per share increased, and the Board of Directors approved a dividend of $0.69 per share, reflecting a 12.2% annualized return on net asset value. The company remains optimistic about M&A deal flow and expects the increased activity levels to be in place in the near future.
The Chief Investment Officer, Patrick Schafer, provided commentary on Portman Ridge’s investment portfolio, stating that 90.5% of their debt securities portfolio is comprised of floating rate with the spread to an interest rate index such as LIBOR, SOFR, or prime rate. He also explained that the investments made during the quarter are expected to yield a spread to SOFR of 917 basis points on par value. Schafer highlighted a slight decline in NII per share on a run-rate basis but remains confident in the company’s investment securities portfolio, which remained highly diversified with investments across 26 different industries and 101 entities. He also discussed the potential net value of the company’s debt portfolio, illustrating a significant increase over time as the portfolio matures and is repaid.
Overall, Portman Ridge remains committed to repurchasing shares under their renewed stock purchase program and believes their stock remains undervalued. The company looks forward to continued strong performance in the final quarter of the year, expecting M&A deal activity to pick up, and maintaining high the quality of their investment opportunities. With the solid earnings power of its portfolio and positive outlook, Portman Ridge is poised to finish the year on a high note.
Given the detailed discussion provided by the Portman Ridge executives, shareholders and potential investors can gain insight into the company’s performance, strategies, and economic outlook. The conference call offered valuable information about the company’s investment portfolio and potential upside to their net asset value. As such Portman Ridge Finance Corporation’s third-quarter 2023 earnings conference call highlighted significant improvements in the company’s performance and set the stage for continued success in the future.
