Ares Capital Reports Q2 Earnings with Stable Core Earnings and Strong Portfolio Performance
Ares Capital Corporation (NASDAQ:ARCC) reported second-quarter core earnings of $0.47 per share, consistent with the prior quarter, while GAAP net income increased to $0.24 from $0.13 in Q1. The company's portfolio showed healthy EBITDA growth at 8%, and non-accruals remained below historical averages for both Ares Capital and the broader BDC industry. Ares originated $2.6 billion in new commitments across diverse industries, with improved deal activity and favorable pricing terms despite uneven credit quality. The company maintained its quarterly dividend of $0.48 per share while reporting 1.12x net leverage and approximately $6 billion in available liquidity. A proposed commercial paper program is expected to reduce funding costs by an estimated 50-100 basis points. Portfolio investments totaled $29.7 billion at cost, with a fair value of $29.3 billion as of quarter-end. Non-accruals represented 2.4% of the portfolio at cost and 1.4% at fair value, below historical averages for both Ares Capital and industry benchmarks.
Tickers: $ARCC
Topics: dividend policy financial performance portfolio activity