CHARLOTTE, N.C.--(BUSINESS WIRE)--The Board of Trustees of Barings Corporate Investors (NYSE: MCI) (the "Trust") met on August 17, 2023 and would like to report its preliminary financial results for the second quarter of 2023.
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Three Months Ended |
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Three Months Ended |
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Financial Highlights(1) |
June 30, 2023 |
|
March 31, 2023 |
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|
|
Per |
|
|
|
Per |
|||||||
Total Amount |
|
Share(4) |
|
Total Amount |
|
Share(4) |
||||||||
Net investment income(2) |
$ |
7,698,158 |
$ |
0.38 |
$ |
8,649,221 |
|
$ |
0.43 |
|
||||
Net realized gains / (losses)(3) |
$ |
282,766 |
$ |
0.01 |
$ |
(240,037 |
) |
$ |
(0.01 |
) |
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Net unrealized appreciation / (depreciation) |
$ |
56,258 |
$ |
0.00 |
$ |
1,431,251 |
|
$ |
0.07 |
|
||||
Net increase in net assets resulting from operations |
$ |
8,114,718 |
$ |
0.40 |
$ |
9,777,874 |
|
$ |
0.48 |
|
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|
|
|
|
|
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Total net assets (equity) |
$ |
343,047,700 |
$ |
16.93 |
$ |
341,416,574 |
|
$ |
16.85 |
|
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(1) All figures for 2023 are unaudited
(2) Figures include less than $0.01 per share of excise tax benefit
(3) June 30, 2023 figures net of less than $0.01 per share of capital gains tax
(4) Based on shares outstanding at the end of the period of 20,261,719
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated, "The Trust earned $0.38 per share of net investment income, net of taxes, for the second quarter of 2023, compared to $0.43 per share in the previous quarter. The decrease in net investment income was predominantly related to $0.06 per share of non-recurring income (repayment of past due income) received in the first quarter, while core earnings increased $0.02 per share due to higher base rates. During the quarter, Barings continued to invest in 1st lien senior secured and mezzanine debt in middle-market companies. When constructing portfolios, we focus on investing in high-quality businesses that are leaders in their space and offer defensive characteristics that will allow them to perform through economic cycles.”
The Board of Trustees declared a quarterly dividend of $0.35 per share, payable on September 8, 2023, to shareholders of record on August 28, 2023. This represents an increase of $0.03 per share or 9.4% over the previous dividend of $0.32 per share and the fourth consecutive quarterly increase.
During the three months ended June 30, 2023, the Trust reported total investment income of $9.6 million, net investment income of $7.7 million, or $0.38 per share, and a net increase in net assets resulting from operations of $8.1 million, or $0.40 per share.
Net asset value ("NAV") per share as of June 30, 2023, was $16.93, as compared to $16.85 as of March 31, 2023. The increase in NAV per share was primarily attributable to net investment income, net of taxes, of $0.38 per share and net realized gains on the Trust’s investment portfolio of approximately $0.01 per share.
Recent Portfolio Activity
During the three months ended June 30, 2023, the Trust made two new investments totaling $4.6 million and 16 add-on investments in existing portfolio companies totaling $2.2 million. During the three months ended June 30, 2023, the Trust had two loans repaid at par totaling $7.2 million and realized one equity investment totaling $1.0 million that generated realized gains of $0.6 million.
Liquidity and Capitalization
As of June 30, 2023, the Trust had cash of $17.2 million and $40.0 million of borrowings outstanding. The Trust had unfunded commitments of $16.7 million as of June 30, 2023.
Net Capital Gains
The Trust realized net capital gains of $282,766 or $0.01 per share during the quarter ended June 30, 2023. By comparison, for the quarter ended March 31, 2023, the Trust realized net capital losses of $240,037 or $0.01 per share.
About Barings Corporate Investors
Barings Corporate Investors is a closed-end management investment company advised by Barings LLC. Its shares are traded on the New York Stock Exchange under the trading symbol ("MCI").
About Barings LLC
Barings is a $351+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities, and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.
*Assets under management as of June 30, 2023
Per share amounts are rounded to the nearest cent.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
Cautionary Notice: Certain statements contained in this press release may be "forward looking" statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made and which reflect management’s current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. These statements are subject to change at any time based upon economic, market or other conditions and may not be relied upon as investment advice or an indication of the fund's trading intent. References to specific securities are not recommendations of such securities, and may not be representative of the fund's current or future investments. We undertake no obligation to publicly update forward looking statements, whether as a result of new information, future events, or otherwise.
