Ares Capital Q1 2025 – Net Income Drops, Core EPS Up

By Bobby Samwell • Tuesday, April 29 10:29 • Permanent Link

Ares Capital Corporation has announced its financial results for the first quarter ended March 31, 2025. The company's GAAP net income per share for the quarter was $0.36, a decrease from $0.76 in the same period last year. However, the core EPS increased to $0.50 from $0.59.

The company's net investment income also saw an increase, rising to $365 million from $325 million in Q1 of 2024. However, Ares Capital reported a decrease in net realized losses, which amounted to $(61) million, compared to $(32) million in Q1 of 2024. The net unrealized losses for the quarter were $(63) million, down from a net gain of $156 million in Q1 of 2024.

As of March 31, 2025, Ares Capital's portfolio investments at fair value stood at $27,130 million, up from $26,720 million as of December 31, 2024. The total assets also saw a slight increase, reaching $28,317 million compared to $28,254 million at the end of the previous period.

The stockholders' equity of Ares Capital increased to $13,672 million from $13,355 million as of December 31, 2024. However, the net assets per share decreased slightly to $19.82 from $19.89.

Ares Capital's debt/equity ratio decreased to 1.02x from 1.03x, and the net debt/equity ratio, excluding available cash, was also down to 0.98x from 0.99x.

In terms of portfolio and investment activity, Ares Capital made new investment commitments of approximately $3.5 billion in the first quarter of 2025, with 92% of the commitments in first lien senior secured loans. The company also funded approximately $576 million related to previously existing unfunded revolving and delayed draw loan commitments during the same period.

On the other hand, Ares Capital exited approximately $2.9 billion of investment commitments in the first quarter of 2025, including approximately $794 million of loans sold to Ivy Hill Asset Management, L.P. (IHAM) or certain vehicles managed by IHAM.

As a result of these announcements, the company's shares have moved -3.0% on the market, and are now trading at a price of $20.62. Check out the company's full 8-K submission here.

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