GAIN Quick Update: Mostly As Expected
This update discusses Gladstone Investment (GAIN 0.00%↑ ) which recently announced calendar Q4 2023 results. Please see the previous GAIN Deep Dive Projections along with the side-by-side comparison reports and individual company updates at the following link:
GAIN Quick Quarterly Update (December 31, 2023)
Pricing & Recommendations: See details and chart below.
Earnings: Reported between its base and best-case projections due to success fee income of $1.4 million related to the exit of Counsel Press and ‘adviser fee credits’ driving lower ‘Other G & A’ partially offset another quarter of no dividend income. There are still no loans with a PIK interest component.
Realized Gains: Around $43.5 million or $1.27 per share during Q4 2023 due to the exit of Counsel Press, as discussed in previous reports/updates.
Leverage: Remains among the lowest in the sector with a debt-to-equity of 0.91 (net of cash) partially due to shares sold through its ATM program.
Dividends: Recently reaffirmed its monthly dividend of $0.08 per share.
Shares Issued: 1,456,279 shares under its ATM program at a weighted average price of $14.51 per share (compared to the previous NAV per share of $14.03).
NAV Per Share: Decreased by $1.02 or 7.3% (from $14.03 to $13.01) due to supplemental dividends of $1.00 per share and changes in the value of equity/debt positions that will be discussed in the updated GAIN Deep Dive Projection report. Please note that NAV per share has increased by over 17% over the last 12 quarters.
Credit Quality: No new non-accruals which remain 3.4% of the portfolio at fair value. However, its watch list investments in B+T Group and PSI Molded Plastics were marked lower again (shown below) and could be added to non-accrual status.
SEFG, Nocturne Luxury Villas, Old World Christmas, Dema/Mai Holdings, and Brunswick Bowling Products account for 42% of the total portfolio at fair value.
Subsequent Events: Issued another 538,206 shares at a weighted average price of $14.53 per share raising $7.7 million in net proceeds and increased the size of its credit facility from $135 million to $200 million.
‘Core NII’ takes into account incentive fees related to capital gains:
GAIN recently announced that it is maintaining its regular monthly dividend of $0.08 per share for Q1 2024: