Monroe Capital Corporation Reports Impressive Annual Financials

Author: Dylan Bailey Updated: 03-03-2025 07:57 AM

Monroe Capital Corporation's Financial Highlights for 2024

Monroe Capital Corporation (NASDAQ: MRCC) has disclosed its financial performance for the fourth quarter and full year, reflecting steady progress in its investment activities. The Company announced that it achieved a net investment income (NII) of $24.5 million for the year, equating to $1.13 per share. This shows a notable increase from $23.2 million, or $1.07 per share, from the previous year.

Fourth Quarter 2024 Performance Overview

In the fourth quarter, the Company reported net investment income at $6.0 million, representing $0.28 per share. However, this is a decrease compared to $6.5 million or $0.30 per share in the prior quarter. Adjusted net investment income for this quarter reached $6.2 million or $0.29 per share, down slightly from $6.6 million or $0.31 per share in the third quarter.

Maintaining a Strong Asset Value

As of December 31, 2024, Monroe Capital's net asset value (NAV) stood at $191.8 million or $8.85 per share. This reflects a decrease from $198.9 million or $9.18 per share at the end of the previous quarter. The reduction in NAV mainly resulted from unrealized losses in a specific portfolio company, although it was partially offset by NII exceeding dividends paid for the quarter.

Dividend Announcements

The Board of Directors has announced the first quarter distribution of $0.25 per share, which will be paid to shareholders of record shortly. This decision showcases the Company’s commitment to providing attractive returns for its shareholders.

Investment Portfolio Insights

Monroe Capital maintains a primarily first lien loan portfolio, which continues to yield competitive risk-adjusted returns. The Company remains strategically focused on preserving the quality of its investments even as it navigates changing economic conditions.

Managing Leverage Effectively

The Company’s debt-to-equity leverage measured at 1.53 times, reflecting a slight increase from 1.50 times in the previous quarter. This is in line with the timing of repayments from portfolio companies and subsequent utilization to reduce outstanding credit lines.

Future Outlook and Strategy

Looking ahead, Monroe Capital is committed to prudent portfolio management and believes its focus on asset quality will enable it to adapt successfully to fluctuations in the market. CEO Theodore L. Koenig emphasizes ongoing efforts to manage and redeploy capital effectively within the investment portfolio.

Recent Strategic Initiatives

The joint venture with Life Insurance Company of the Southwest, known as MRCC Senior Loan Fund I, LLC, remains pivotal for Monroe Capital. This partnership focuses on investing in senior secured loans to middle-market firms, experiencing steady performance and dividends consistent with previous quarters.

Frequently Asked Questions

What are Monroe Capital Corporation's recent NII figures?

For the year ended December 31, 2024, Monroe Capital reported a net investment income of $24.5 million, or $1.13 per share.

How does the Company's NAV compare to last quarter?

The Company’s net asset value as of December 31, 2024 is $191.8 million, down from $198.9 million the previous quarter.

What is the planned dividend for the upcoming quarter?

Monroe Capital Corporation has announced a dividend of $0.25 per share for the first quarter of 2025.

How does Monroe Capital manage its portfolio?

The Company employs a strategy focused on first lien loans while maintaining a strong emphasis on quality and risk management.

What leverage ratio does Monroe Capital hold?

As of December 31, 2024, the Company's debt-to-equity leverage ratio was 1.53 times.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

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