Portman Ridge(PTMN) - 2025 Q1 - Quarterly Results

Financial Performance - Total investment income for Q1 2025 was $12.1 million, down from$ 16.5 million in Q1 2024, primarily due to a reversal of previously accrued income[3] - Net investment income (NII) for Q1 2025 was $4.3 million ($ 0.47 per share), compared to $6.2 million ($ 0.67 per share) in Q1 2024[8] - Total investment income for Q1 2025 was $12.118 million, a decrease of 26.5% from$ 16.526 million in Q1 2024[35] - Net investment income for Q1 2025 was $4.340 million, down 30.4% from$ 6.226 million in Q1 2024[35] - Total expenses decreased to $7.778 million in Q1 2025, a reduction of 24.6% compared to$ 10.300 million in Q1 2024[35] - Net realized and unrealized losses on investments for Q1 2025 amounted to $(4.422) million, compared to$ (1.527) million in Q1 2024[35] - The net increase (decrease) in net assets resulting from operations was $(0.082) million in Q1 2025, contrasting with an increase of$ 4.486 million in Q1 2024[35] - Basic and diluted net investment income per common share for Q1 2025 was $0.47, down from$ 0.67 in Q1 2024[35] - Management fees for Q1 2025 were $1.466 million, a decrease of 15.2% from$ 1.729 million in Q1 2024[35] - Performance-based incentive fees dropped to $0.920 million in Q1 2025, down 25.4% from$ 1.234 million in Q1 2024[35] - Total payment-in-kind income increased to $3.061 million in Q1 2025, up 52.5% from$ 2.006 million in Q1 2024[35] Asset and Investment Portfolio - Net asset value (NAV) as of March 31, 2025, was $173.5 million ($ 18.85 per share), a decrease from $178.5 million ($ 19.41 per share) as of December 31, 2024[3] - The investment portfolio at fair value as of March 31, 2025, was $406.4 million, comprised of 93 different portfolio companies[8] - Total investments at fair value were reported at$ 406,423,000, slightly up from $405,021,000 in the previous quarter[33] - Debt investments on non-accrual as of March 31, 2025, were six, representing 2.6% of the investment portfolio at fair value[8] Financial Position and Liabilities - As of March 31, 2025, total assets amounted to$ 438,780,000, a decrease from $453,634,000 as of December 31, 2024[33] - Total liabilities as of March 31, 2025, were$ 265,269,000, down from $275,141,000 at the end of 2024[33] - The company has a total distributable loss of$ (540,979,000) as of March 31, 2025, compared to $(535,930,000) at the end of the previous quarter[33] - The company had$ 255.4 million in outstanding borrowings with a current weighted average interest rate of 5.9%[12] Interest Rate Sensitivity - The company expects that a 1% increase in interest rates would result in an increase of $1,619,000 in net investment income[17] - Conversely, a 1% decrease in interest rates would lead to a decrease of$ 1,613,000 in net investment income[17] Corporate Actions and Management - The company encourages shareholders to vote for the proposed merger with Logan Ridge Finance Corporation, which is expected to enhance long-term shareholder value[7] - Portman Ridge Finance Corporation is pursuing a merger with Logan Ridge Finance Corporation, pending stockholder approval[27] - The company continues to focus on disciplined credit selection and prudent risk management amid macroeconomic uncertainties[6] - The company’s investment activities are managed by Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors L.P.[21] Upcoming Events - The company plans to hold a conference call on May 9, 2025, to discuss Q1 2025 financial results[18]