Ares Capital Q2 earnings beat consensus, reflect quarterly record originations

Jul. 28, 2021 7:48 AM ETAres Capital (ARCC)ARCCBy: Liz Kiesche, SA News Editor11 Comments

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  • Ares Capital (NASDAQ:ARCC) posts Q2 results reflecting portfolio growth, record quarterly originations and record net asset value per share, said CEO Kipp deVeer.
  • Based on its favorable outlook, ARCC increased its quarterly dividend by 2.5% to $0.41 per share.
  • Q2 core EPS of $0.53 beats the average analyst estimate of $0.42 and increased from $0.43 in Q1 and $0.39 in the year-ago quarter.
  • Q2 total investment income of $459M exceeds the consensus of $387M; increases from $390M in Q1 and $350M in Q2 2020.
  • ARCC stock rises 0.8% in premarket trading.
  • Q2 net investment income of $171M rises from $144M in Q1 and $165M in Q2 2020.
  • Portfolio investments at fair value were $17.1B at June 30, 2021 vs. $15.4B at March 31.
  • Net assets per share of $18.16 at June 30 increased from $17.45 at March 31.
  • During Q2, ARCC made $4.8B in new investment commitments, of which $3.9B were funded, including 26 new portfolio companies and 44 existing portfolio companies.
  • Exited ~$2.9B of investment commitments during the quarter, including $566M of loans sold to Ivy Hill Asset Management or certain vehicles managed by IHAM.
  • From July 1 to July 22, Ares made new investment commitments of ~$470M, of which $430M were funded.
  • During that same period, the company exited ~$267M of investment commitments, including $21M of loans sold to IHAM or certain vehicles managed by IHAM.
  • As of July 22, Ares Capital had an investment backlog of ~$1.4B and pipeline of ~$110M.
  • Conference call at 12:00 PM ET.
  • Previously: Ares Capital EPS beats by $0.11, beats on total investment income (July 28)

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