Main Street Q3 Preliminary Results: CEO Anticipates Return On Equity Of Over 17%

Main Street Capital Corp MAIN disclosed third-quarter (Q3) 2023 preliminary results.

The Houston-based company expects net investment income (NII) per share to be $0.98 to $1.00 and distributable net investment income (DNII) per share to be $1.03 to $1.05.

As of Sept. 30, net asset value (NAV) per share is estimated to be $28.30 to $28.36, representing an increase of 2.2% to 2.4% vs. $27.69 as of June 30, led by the rise in the net fair value of the investment portfolio.

Consequently, the company expects an annualized return on equity of 17% to 18% for Q3 2023.

The company's distributable net investment income exceeded the monthly dividends paid to the shareholders by over 45% and the total dividends paid by over 5% in Q3. It expects to pay meaningful supplemental dividends in Q4 2023. 

Q3 resulted in "a return on equity of over 17% on a trailing twelve-month basis, highlighting the consistency of our positive performance," CEO Dwayne Hyzak said.

Investment Portfolio Activity: The company witnessed investment activity in the lower middle market (LMM) private loan, and middle market investment strategies in Q3. 

This comprises $19.6 million in total LMM portfolio investments, $134.6 million in total private loan investments, and a net decrease of $10.9 million in the cost basis of the middle market investment portfolio.

MAIN expects to release Q3 FY23 results on November 2, 2023. 

Price Action: MAIN shares are trading higher by 0.23% at $40.50 premarket on the last check Tuesday. 

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