New Mountain Finance Corporation announced its financial results for the quarter ended September 30, 2024. The company reported Net Investment Income (NII) of $0.32 per weighted average share for Q3 2024, a decrease from $0.40 per weighted average share in Q3 2023. Total investment income for the quarter was $83.5 million, representing a 12% decrease year-over-year.
Despite the decline in investment income, NMFC's adjusted net investment income of $0.32 per share fully covered its $0.32 per share dividend for the quarter. The company's total net operating expenses decreased by 13% to $49 million, partially offsetting the lower investment income. Net asset value (NAV) per share stood at $12.62 as of September 30, 2024.
The company maintained strong credit quality, with non-accruals totaling $38 million, or 1.2% of the portfolio's fair value. This indicates a stable performance in its underlying investments, reflecting the effectiveness of its defensive growth strategy. The statutory debt-to-equity ratio was 1.26x, outlining the company's leverage profile.
For investors, the results show a decrease in net investment income compared to the prior year, which is a key metric for Business Development Companies. However, the consistent dividend coverage and low non-accrual rates highlight the resilience of NMFC's investment strategy. The reduction in operating expenses also contributed to supporting profitability during the quarter.
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.