Main Street Capital Reports Strong Q2 2024 Results

By Tamara Parker • Tuesday, July 16 15:15 • Permanent Link

Main Street Capital Corporation (NYSE: MAIN) has released its preliminary operating results for the second quarter of 2024. The company's net asset value (NAV) per share as of June 30, 2024, is estimated to be in the range of $29.77 to $29.83, representing an increase of $0.23 to $0.29 per share, or 0.8% to 1.0%, from the NAV per share of $29.54 as of March 31, 2024. This increase is after the impact of the supplemental dividend paid in June 2024 of $0.30 per share.

Main Street's preliminary estimate of second quarter 2024 net investment income (NII) is $1.00 to $1.02 per share, and distributable net investment income (DNII) is $1.06 to $1.08 per share. The company estimates that it generated a quarterly annualized return on equity of 15% to 17% for the second quarter of 2024.

The total dividends paid to shareholders in the second quarter of 2024 increased by 13% compared to the second quarter of 2023, continuing the trend of increasing dividends paid to shareholders over the past few years. The estimated distributable net investment income for the second quarter of 2024 exceeded the monthly dividends paid to shareholders by over 48.5% and the total dividends paid to shareholders by over 4.5%.

Main Street's preliminary estimates also indicate that non-accrual investments comprised 1.2% of the total investment portfolio at fair value and 3.6% at cost as of June 30, 2024.

In terms of investment portfolio activity, the company made $154.5 million in total lower middle market (LMM) portfolio investments, resulting in a net increase of $69.0 million in the total cost basis of the LMM investment portfolio. Additionally, Main Street made $323.8 million in total private loan investments, resulting in a net increase of $224.9 million in the total cost basis of the private loan investment portfolio. However, there was a net decrease of $66.1 million in the total cost basis of the middle market investment portfolio.

Main Street's second quarter 2024 results are scheduled to be released on Thursday, August 8, 2024, after the financial markets close. The company has also scheduled a conference call on Friday, August 9, 2024, at 10:00 a.m. Eastern Time to discuss these results. As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $50.96. For more information, read the company's full 8-K submission here.

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