NYSE:SCM Stellus Capital Investment Q3 2024 Earnings Report $12.98 +0.21 (+1.64%) Closing price 03:59 PM EasternExtended Trading$12.98 +0.00 (+0.01%) As of 07:50 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Stellus Capital Investment EPS ResultsActual EPS$0.40Consensus EPS $0.46Beat/MissMissed by -$0.06One Year Ago EPS$0.49Stellus Capital Investment Revenue ResultsActual Revenue$26.50 millionExpected Revenue$27.36 millionBeat/MissMissed by -$860.00 thousandYoY Revenue GrowthN/AStellus Capital Investment Announcement DetailsQuarterQ3 2024Date11/7/2024TimeAfter Market ClosesConference Call DateFriday, November 8, 2024Conference Call Time12:00PM ETUpcoming EarningsStellus Capital Investment's Q1 2025 earnings is scheduled for Thursday, May 8, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptQuarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Stellus Capital Investment Q3 2024 Earnings Call TranscriptProvided by QuartrNovember 8, 2024 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's Conference Call to report financial results for 3rd fiscal quarter ended September 30, 2024. Participants are currently on a listen only mode and we will have a question and answer session following the presentation. This conference is being recorded today, November 8, 2024. It is now my pleasure to turn the call over to Mr. Operator00:00:39Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. Mr. Ladd, you may begin your conference. Speaker 100:00:48Thank you, Ali, and good morning, everyone, and thank you for joining the call. Welcome to our conference call covering the quarter ended September 30 this year. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward looking statements as well as an overview of our financial information. Speaker 200:01:09Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and pen provided in our press release announcing this call. I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward looking information. Speaker 200:01:37Today's conference call may also include forward looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update any forward looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at 713-292-5400. Now I'll cover our operating results for the quarter and would like to start with our life to date activity. Since our IPO in November 2012, we've invested approximately $2,500,000,000 in over 195 companies and received approximately $1,600,000,000 of repayments, while maintaining stable asset quality. Speaker 200:02:26We've paid over $273,000,000 of dividends to our investors, which represents $16.28 per share to an investor in our IPO in November 2012, which was offered at $15 per share. Turning now to operating results. In the Q3, we generated $0.39 per share of GAAP net investment income and core net investment income was $0.40 per share, which excludes estimated excise taxes. Net asset value per share increased $0.19 during the quarter due to unrealized appreciation on our investment portfolio, primarily related to one equity investment. Our ATM program was also active during the quarter. Speaker 200:03:06We issued $14,600,000 in shares at an average gross price of $13.79 All issuances were above net asset value. With respect to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $908,700,000 across 99 portfolio companies, up from $899,700,000 across 100 companies as of June 30, 2024. During the Q3, we invested $9,400,000 in one new portfolio company and had $8,400,000 in other investment activity at par. We also received one full repayment totaling $8,400,000 and received $5,500,000 of other repayments both at par. We also received one equity realization that generated proceeds of $2,600,000 and realized gain of $2,200,000 At September 30, 98 percent of our loans were secured and 95% were priced at floating rates. Speaker 200:04:08The average loan per company is $9,500,000 and the largest overall investment is $19,600,000 both at fair value. All but one of our portfolio companies are backed by a private equity firm. Overall, our asset quality is slightly better than planned. At fair value, 26% of our portfolio is rated A1 or ahead of plan and 18% of the portfolio is marked at an investment category of 3 or below, meaning not meeting plan or expectations. Currently, we have loans to 6 portfolio companies that are non accrual, which comprise 4.7 percent of the fair value of the total loan portfolio. Speaker 100:04:46And with that, Speaker 200:04:46I'll turn it back over to Rob to discuss the overall outlook. Speaker 100:04:49Okay. Thank you, Todd. As we look ahead to the Q4, I'll cover portfolio growth, equity realizations, capital management and dividends. Based on an active pipeline, we expect to end the Q4 with a portfolio between $930,000,000 $950,000,000 We do expect some loan repayments approximately $29,000,000 in the quarter and equity realization proceeds to total about $5,300,000 which will result in realized gains of 4,300,000 dollars 1 which is disclosed in our subsequent events for $1,700,000 of proceeds and a realized gain of over $600,000 As Todd noted earlier, we had a good third quarter for equity issuance under our ATM program. After quarter end, we increased our bank facility by $55,000,000 from $260,000,000 to $315,000,000 and have a meaningful amount of capacity. Speaker 100:05:48Given our current capitalization, we have the ability to grow the portfolio to $1,000,000,000 plus. And finally regarding dividends, we did declare the dividend for the 4th quarter at a rate of $0.40 per quarter payable monthly and of which the record date for November December are forthcoming. And with that, I'll open it up for questions. And Ali, if you'll please begin the question and answer session, please. Operator00:06:15Thank Our first question is coming from Paul Johnson with KBW. Your line is live. Speaker 300:06:58Yes. Good morning Paul. Good afternoon. Good morning. Thanks for taking my question. Speaker 300:07:04With just NII, a little light of our expectations and slightly below the dividend this quarter, activity was fairly light. Was there any kind of I mean was there any sort of temporary drivers there with NII being below the dividend this quarter with the incentive fee waiver and the timing of investments or anything like that? Speaker 100:07:31Yes. I'd say nothing unusual. We certainly one had a lower SOFR rate for the quarter. We did have a little bit of tick up in non accrual, but nothing unusual. And as I recall in last quarter, we had a little bit more in other income. Speaker 100:07:53So this would have driven last quarter to be a little bit higher. But again, I think a reasonable quarter in terms of expectation given the current interest rates. But as you noted, Paul, too that our investment activity was lighter than expected, which again, as I mentioned, we expect to pick up in the Q4. So that would have been impacted a little bit too. We thought we'd end the Q3 at 9:30 and ended it closer to 900. Speaker 300:08:24Got it. So this the kind of range that we're in the 0.39 dollars low 40s. I mean is that if there's nothing unusual in there, is that a pretty good run rate going forward? Speaker 100:08:38So we'll have to see how other income comes in the quarter in the 4th quarter, but just as a reminder that SOFR did drop again, our loans would have repriced, most of them repriced again at 9:30 and that drove the yield you'll see normally from 11.7 in the prior quarter to 11 even for the 4th quarter. Speaker 300:08:59Got it. Okay. So it's mainly the base rates, if that makes sense, are driving the Speaker 100:09:05Correct. Yes, declining sulfur curve. Speaker 300:09:09Okay. And then, can you again just walk through maybe kind of the what drove the write up in the portfolio this quarter, the sort of the unrealized gains? Speaker 100:09:23Yes. So, there are a number of 99 companies, so a number of movements up and down. We did have one portfolio company that had some meaningful appreciation that's tied to a potential transaction, but just increased value in one of our equity co invests. Speaker 300:09:47Got it. So it was just the one company that kind of drove most of the depreciation this quarter then? Speaker 100:09:53That's correct, Paul. Speaker 300:09:55Okay. Okay. That's all the questions for me. Thank you. Speaker 100:10:02Okay. Yes. Thank you, Paul. Operator00:10:07Thank you. Our next question is coming from Christopher Nolan with Ladenburg Thalmann. Your line is live. Speaker 400:10:15Hey, just a follow-up on Paul's questions on the EPS run rate. So given the recent Fed action on lowering rates, that'd be a downward bias on EPS together with the higher non accruals, just want a little Speaker 100:10:31clarification? Yes, that's right. It should have a little bit of impact, again, as we move down in the quarter. The interesting, it looked like the Fed's announcement yesterday hadn't changed the forward curve. But again, we did have a lower SOFR in the Q4 or we will have a lower SOFR in the Q4 versus the 3rd. Speaker 400:10:53Got it. And then the lack of a fee waiver, should we expect the fee waiver to be a recurring item or just a sort of a one timer? Speaker 200:11:04Go ahead, Taki. Yes. So, Chris, thanks for the question. So, it kind of depends on what happens in the quarter, of course, which we can't predict, but with respect to gains and losses. At the moment, we don't expect one this quarter, but we do if nothing else changes, would expect to see a waiver maybe in the Q2 of 2025, so in the future. Speaker 200:11:29But that's and then nothing after that, but that's if nothing changes. So if there's a change up or down that could affect the waiver. Speaker 100:11:37Yes. And as you know, Chris, all just a function of the 12 quarter test. Speaker 200:11:41Right. Exactly. Speaker 400:11:42Absolutely. And then I guess final question, what's the spillover income? Speaker 200:11:47It stands at $42,000,000 right now. Operator00:11:52Okay. Thanks, guys. Speaker 300:11:54Thank you, Speaker 100:11:58Chris. Operator00:12:02Apologies, ladies and gentlemen, I pressed the wrong button by mistake. No worries. Apologies. Our next question is coming from Robert Dodd with Raymond James. Your line is live. Speaker 500:12:16Hi, guys. I think you'd probably prefer to hear the music from me. But on the appreciation, Rob, you mentioned it's tied to a potential transaction. Is that one of the ones that you think might occur in Q4? Or is it a longer term? Speaker 100:12:37No, it would expect yes, it's a good question. It's expected to occur in Q4. Speaker 500:12:44Got it. I just want that spillover income plug. That $42,000,000 does that include the perspective of realized gains that are going to come in Q4? Or is that just as of the end of Q3? Speaker 100:13:06It's as of the end of Q3, but the realized gains expected in Q4 are regular way, if you will, and we'll be able to distribute them. There will not be a tax impact. Speaker 500:13:20Okay, got it. Thank you. Sorry, just scribble on the yield, Rob, I mean, as Speaker 400:13:31you said, right, most of it Speaker 500:13:32is base rates. It does look like there has been versus a little bit of spread compression, which obviously is industry wide thematic. What's your view is that leveled out in terms of where new onboarding spreads are today as it stabilized? Or are we going to continue to see a little bit of that flow through as we go into Q4 to early next year? Speaker 100:14:02Yes. So it's a good question. So we're certainly seeing spreads come down from what were in the 6s to now in the 5s. So the impact of that is rolling through. So you're not seeing if everything repriced that would be a different number. Speaker 100:14:23But so we're seeing that in the Q4. So newer opportunities are coming on in the 5s versus the 6s, whereas the average yield currently is probably in the 6s yes, average spread in the 6s. So it'd just be a question if that continues. We certainly have seen it stabilize, certainly not seeing it go down further. And it's one thing that we've seen historically as when you get lower what used to be LIBOR or so for you can see spreads actually stop compressing because I think people are also solving for an absolute yield. Speaker 100:14:57But in any event, the baked into the quarter would be things that are being booked more in the 5s than the 6s. Speaker 500:15:05Got it. Got it. Thank you. And then on the just the obviously, Q3 came in a little in terms of portfolio overall size came in a little bit below where you were thinking a quarter ago. So how confident would you say you are in that $930,000,000 to $950,000,000 by year end? Speaker 500:15:30I mean, it sounds like some things during the quarter might have slipped, but what's the risk of that happening again? Speaker 100:15:37Yes. No, that's a good question based on last quarter. So if it's helpful, we have 10 to 15 active deals and we would be pretty confident to get to the 9:30 and could be higher. So if it's helpful, our activity has picked up quite meaningfully. Speaker 500:15:57Got it. Thank you. Operator00:16:02Thank you. As we have no further questions in the queue at this time, I would like to hand it back to Mr. Ladd for his closing remarks. Speaker 100:16:10Okay. Thank you, Ali, and thank you everyone for being on and your support of our company. And we look forward to speaking with you in the spring as we report on the whole year. Take care now. Operator00:16:23Thank you. Ladies and gentlemen, this does conclude today's call. And you may disconnect your lines at this time. And we thank you for your participation.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallStellus Capital Investment Q3 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsQuarterly report(10-Q) Stellus Capital Investment Earnings HeadlinesHead-To-Head Contrast: Metalpha Technology (NASDAQ:MATH) vs. Stellus Capital Investment (NYSE:SCM)April 30, 2025 | americanbankingnews.comStellus Capital price target lowered to $13 from $13.50 at Keefe BruyetteApril 9, 2025 | markets.businessinsider.comTrump’s Bitcoin Reserve is No Accident…Bryce Paul believes this is the #1 coin to buy right now The catalyst behind this surge is a massive new blockchain development…May 6, 2025 | Crypto 101 Media (Ad)Stellus Capital Investment declares $0.1333 dividendApril 8, 2025 | seekingalpha.comStellus Capital Investment Corporation Announces $0.40 Second Quarter 2025 Regular Dividend, Payable Monthly in Increments of $0.1333 in May, June, and July 2025April 7, 2025 | investing.comStellus Capital Investment Corporation Announces $0.40 Second Quarter 2025 Regular Dividend, Payable Monthly in Increments of $0.1333 in May, June, and July 2025April 7, 2025 | prnewswire.comSee More Stellus Capital Investment Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Stellus Capital Investment? 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There are 6 speakers on the call. Operator00:00:00gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's Conference Call to report financial results for 3rd fiscal quarter ended September 30, 2024. Participants are currently on a listen only mode and we will have a question and answer session following the presentation. This conference is being recorded today, November 8, 2024. It is now my pleasure to turn the call over to Mr. Operator00:00:39Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. Mr. Ladd, you may begin your conference. Speaker 100:00:48Thank you, Ali, and good morning, everyone, and thank you for joining the call. Welcome to our conference call covering the quarter ended September 30 this year. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward looking statements as well as an overview of our financial information. Speaker 200:01:09Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and pen provided in our press release announcing this call. I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward looking information. Speaker 200:01:37Today's conference call may also include forward looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update any forward looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at 713-292-5400. Now I'll cover our operating results for the quarter and would like to start with our life to date activity. Since our IPO in November 2012, we've invested approximately $2,500,000,000 in over 195 companies and received approximately $1,600,000,000 of repayments, while maintaining stable asset quality. Speaker 200:02:26We've paid over $273,000,000 of dividends to our investors, which represents $16.28 per share to an investor in our IPO in November 2012, which was offered at $15 per share. Turning now to operating results. In the Q3, we generated $0.39 per share of GAAP net investment income and core net investment income was $0.40 per share, which excludes estimated excise taxes. Net asset value per share increased $0.19 during the quarter due to unrealized appreciation on our investment portfolio, primarily related to one equity investment. Our ATM program was also active during the quarter. Speaker 200:03:06We issued $14,600,000 in shares at an average gross price of $13.79 All issuances were above net asset value. With respect to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $908,700,000 across 99 portfolio companies, up from $899,700,000 across 100 companies as of June 30, 2024. During the Q3, we invested $9,400,000 in one new portfolio company and had $8,400,000 in other investment activity at par. We also received one full repayment totaling $8,400,000 and received $5,500,000 of other repayments both at par. We also received one equity realization that generated proceeds of $2,600,000 and realized gain of $2,200,000 At September 30, 98 percent of our loans were secured and 95% were priced at floating rates. Speaker 200:04:08The average loan per company is $9,500,000 and the largest overall investment is $19,600,000 both at fair value. All but one of our portfolio companies are backed by a private equity firm. Overall, our asset quality is slightly better than planned. At fair value, 26% of our portfolio is rated A1 or ahead of plan and 18% of the portfolio is marked at an investment category of 3 or below, meaning not meeting plan or expectations. Currently, we have loans to 6 portfolio companies that are non accrual, which comprise 4.7 percent of the fair value of the total loan portfolio. Speaker 100:04:46And with that, Speaker 200:04:46I'll turn it back over to Rob to discuss the overall outlook. Speaker 100:04:49Okay. Thank you, Todd. As we look ahead to the Q4, I'll cover portfolio growth, equity realizations, capital management and dividends. Based on an active pipeline, we expect to end the Q4 with a portfolio between $930,000,000 $950,000,000 We do expect some loan repayments approximately $29,000,000 in the quarter and equity realization proceeds to total about $5,300,000 which will result in realized gains of 4,300,000 dollars 1 which is disclosed in our subsequent events for $1,700,000 of proceeds and a realized gain of over $600,000 As Todd noted earlier, we had a good third quarter for equity issuance under our ATM program. After quarter end, we increased our bank facility by $55,000,000 from $260,000,000 to $315,000,000 and have a meaningful amount of capacity. Speaker 100:05:48Given our current capitalization, we have the ability to grow the portfolio to $1,000,000,000 plus. And finally regarding dividends, we did declare the dividend for the 4th quarter at a rate of $0.40 per quarter payable monthly and of which the record date for November December are forthcoming. And with that, I'll open it up for questions. And Ali, if you'll please begin the question and answer session, please. Operator00:06:15Thank Our first question is coming from Paul Johnson with KBW. Your line is live. Speaker 300:06:58Yes. Good morning Paul. Good afternoon. Good morning. Thanks for taking my question. Speaker 300:07:04With just NII, a little light of our expectations and slightly below the dividend this quarter, activity was fairly light. Was there any kind of I mean was there any sort of temporary drivers there with NII being below the dividend this quarter with the incentive fee waiver and the timing of investments or anything like that? Speaker 100:07:31Yes. I'd say nothing unusual. We certainly one had a lower SOFR rate for the quarter. We did have a little bit of tick up in non accrual, but nothing unusual. And as I recall in last quarter, we had a little bit more in other income. Speaker 100:07:53So this would have driven last quarter to be a little bit higher. But again, I think a reasonable quarter in terms of expectation given the current interest rates. But as you noted, Paul, too that our investment activity was lighter than expected, which again, as I mentioned, we expect to pick up in the Q4. So that would have been impacted a little bit too. We thought we'd end the Q3 at 9:30 and ended it closer to 900. Speaker 300:08:24Got it. So this the kind of range that we're in the 0.39 dollars low 40s. I mean is that if there's nothing unusual in there, is that a pretty good run rate going forward? Speaker 100:08:38So we'll have to see how other income comes in the quarter in the 4th quarter, but just as a reminder that SOFR did drop again, our loans would have repriced, most of them repriced again at 9:30 and that drove the yield you'll see normally from 11.7 in the prior quarter to 11 even for the 4th quarter. Speaker 300:08:59Got it. Okay. So it's mainly the base rates, if that makes sense, are driving the Speaker 100:09:05Correct. Yes, declining sulfur curve. Speaker 300:09:09Okay. And then, can you again just walk through maybe kind of the what drove the write up in the portfolio this quarter, the sort of the unrealized gains? Speaker 100:09:23Yes. So, there are a number of 99 companies, so a number of movements up and down. We did have one portfolio company that had some meaningful appreciation that's tied to a potential transaction, but just increased value in one of our equity co invests. Speaker 300:09:47Got it. So it was just the one company that kind of drove most of the depreciation this quarter then? Speaker 100:09:53That's correct, Paul. Speaker 300:09:55Okay. Okay. That's all the questions for me. Thank you. Speaker 100:10:02Okay. Yes. Thank you, Paul. Operator00:10:07Thank you. Our next question is coming from Christopher Nolan with Ladenburg Thalmann. Your line is live. Speaker 400:10:15Hey, just a follow-up on Paul's questions on the EPS run rate. So given the recent Fed action on lowering rates, that'd be a downward bias on EPS together with the higher non accruals, just want a little Speaker 100:10:31clarification? Yes, that's right. It should have a little bit of impact, again, as we move down in the quarter. The interesting, it looked like the Fed's announcement yesterday hadn't changed the forward curve. But again, we did have a lower SOFR in the Q4 or we will have a lower SOFR in the Q4 versus the 3rd. Speaker 400:10:53Got it. And then the lack of a fee waiver, should we expect the fee waiver to be a recurring item or just a sort of a one timer? Speaker 200:11:04Go ahead, Taki. Yes. So, Chris, thanks for the question. So, it kind of depends on what happens in the quarter, of course, which we can't predict, but with respect to gains and losses. At the moment, we don't expect one this quarter, but we do if nothing else changes, would expect to see a waiver maybe in the Q2 of 2025, so in the future. Speaker 200:11:29But that's and then nothing after that, but that's if nothing changes. So if there's a change up or down that could affect the waiver. Speaker 100:11:37Yes. And as you know, Chris, all just a function of the 12 quarter test. Speaker 200:11:41Right. Exactly. Speaker 400:11:42Absolutely. And then I guess final question, what's the spillover income? Speaker 200:11:47It stands at $42,000,000 right now. Operator00:11:52Okay. Thanks, guys. Speaker 300:11:54Thank you, Speaker 100:11:58Chris. Operator00:12:02Apologies, ladies and gentlemen, I pressed the wrong button by mistake. No worries. Apologies. Our next question is coming from Robert Dodd with Raymond James. Your line is live. Speaker 500:12:16Hi, guys. I think you'd probably prefer to hear the music from me. But on the appreciation, Rob, you mentioned it's tied to a potential transaction. Is that one of the ones that you think might occur in Q4? Or is it a longer term? Speaker 100:12:37No, it would expect yes, it's a good question. It's expected to occur in Q4. Speaker 500:12:44Got it. I just want that spillover income plug. That $42,000,000 does that include the perspective of realized gains that are going to come in Q4? Or is that just as of the end of Q3? Speaker 100:13:06It's as of the end of Q3, but the realized gains expected in Q4 are regular way, if you will, and we'll be able to distribute them. There will not be a tax impact. Speaker 500:13:20Okay, got it. Thank you. Sorry, just scribble on the yield, Rob, I mean, as Speaker 400:13:31you said, right, most of it Speaker 500:13:32is base rates. It does look like there has been versus a little bit of spread compression, which obviously is industry wide thematic. What's your view is that leveled out in terms of where new onboarding spreads are today as it stabilized? Or are we going to continue to see a little bit of that flow through as we go into Q4 to early next year? Speaker 100:14:02Yes. So it's a good question. So we're certainly seeing spreads come down from what were in the 6s to now in the 5s. So the impact of that is rolling through. So you're not seeing if everything repriced that would be a different number. Speaker 100:14:23But so we're seeing that in the Q4. So newer opportunities are coming on in the 5s versus the 6s, whereas the average yield currently is probably in the 6s yes, average spread in the 6s. So it'd just be a question if that continues. We certainly have seen it stabilize, certainly not seeing it go down further. And it's one thing that we've seen historically as when you get lower what used to be LIBOR or so for you can see spreads actually stop compressing because I think people are also solving for an absolute yield. Speaker 100:14:57But in any event, the baked into the quarter would be things that are being booked more in the 5s than the 6s. Speaker 500:15:05Got it. Got it. Thank you. And then on the just the obviously, Q3 came in a little in terms of portfolio overall size came in a little bit below where you were thinking a quarter ago. So how confident would you say you are in that $930,000,000 to $950,000,000 by year end? Speaker 500:15:30I mean, it sounds like some things during the quarter might have slipped, but what's the risk of that happening again? Speaker 100:15:37Yes. No, that's a good question based on last quarter. So if it's helpful, we have 10 to 15 active deals and we would be pretty confident to get to the 9:30 and could be higher. So if it's helpful, our activity has picked up quite meaningfully. Speaker 500:15:57Got it. Thank you. Operator00:16:02Thank you. As we have no further questions in the queue at this time, I would like to hand it back to Mr. Ladd for his closing remarks. Speaker 100:16:10Okay. Thank you, Ali, and thank you everyone for being on and your support of our company. And we look forward to speaking with you in the spring as we report on the whole year. Take care now. Operator00:16:23Thank you. Ladies and gentlemen, this does conclude today's call. And you may disconnect your lines at this time. And we thank you for your participation.Read morePowered by