Main Street Capital Corporation (NYSE: MAIN) has announced its preliminary operating results for the fourth quarter of 2024. The company reported a preliminary estimate of net investment income (NII) of $1.01 to $1.03 per share and distributable net investment income (DNII) of $1.07 to $1.09 per share for the fourth quarter.
The preliminary estimate of net asset value (NAV) per share as of December 31, 2024, is $31.62 to $31.68, showing an increase of $1.05 to $1.11 per share, or 3.4% to 3.6%, from the NAV per share of $30.57 as of September 30, 2024. This increase is attributed to the net fair value increase on the investment portfolio resulting from net unrealized appreciation and net realized gains on portfolio investments, among other factors.
Main Street estimates that it generated a quarterly annualized return on equity of over 25% for the fourth quarter of 2024, with an actual return on equity of over 19% for the full year. The company also preliminarily estimates that investments on non-accrual status comprised 0.9% of the total investment portfolio at fair value and 3.5% at cost as of December 31, 2024.
In terms of investment portfolio activity, Main Street reported the following for the fourth quarter of 2024: $167.6 million in total lower middle market (LMM) portfolio investments $108.0 million in total private loan portfolio investments * A net decrease of $25.2 million in the total cost basis of the middle market investment portfolio
Regarding the federal tax treatment of 2024 dividends, Main Street paid dividends totaling $4.11 per share in 2024, with approximately 31% of such dividends taxed as qualified dividends and approximately 69% taxed as ordinary income. The company also provided information for non-U.S. shareholders regarding the tax treatment of 2024 dividends on its website.
Main Street's fourth quarter and full year 2024 results will be released on Thursday, February 27, 2025, after the financial markets close, with a conference call scheduled for the following day at 10:00 a.m. Eastern Time.
Main Street Capital Corporation is a principal investment firm that provides customized long-term debt and equity capital solutions to lower middle market companies. The company's portfolio investments are typically made to support various business activities in diverse industry sectors. Main Street also maintains an asset management business through its wholly owned portfolio company, MSC Adviser I, LLC.
Investors are encouraged to look out for the full details of Main Street's operating results in the upcoming earnings release and conference call. The market has reacted to these announcements by moving the company's shares 2.1% to a price of $60.48. For more information, read the company's full 8-K submission here.
