New Mountain Finance Corporation announced its financial results for the quarter ended March 31, 2025. The company reported Net Investment Income (NII) of $0.32 per weighted average share for Q1 2025, a decrease from $0.36 per weighted average share in Q1 2024. Total investment income for the quarter was $85.663 million, down from $90.556 million in the prior year period.
The company declared a second quarter distribution of $0.32 per share. However, the total Regular & Supplemental Dividends Paid per Share in Q1 2025 was $0.32, which is a reduction from the $0.36 paid in Q1 2024. This change reflects a decrease in the supplemental dividend component, indicating a shift in the overall shareholder distribution.
Net asset value (NAV) per share was $12.45 as of March 31, 2025, a decline from $12.55 at the end of Q4 2024. The company originated $120.8 million of investments during the quarter, offset by $160.4 million of repayments and $26.3 million of asset sales. Portfolio quality remained high, with 96.5% of investments rated 'Green' by fair value.
Management indicated progress on strategic priorities, including Payment-in-Kind (PIK) reduction, diversifying top investments, and reducing the cost of liabilities. Despite these efforts, the year-over-year decline in NII and the reduction in the total dividend paid per share are key considerations for investors. The dividend payout ratio rose to 100%, indicating that NII fully covered the dividend but left no margin of safety.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.