Great Elm Capital (NASDAQ:GECC) advanced actions 2.6% in trading Thursday morning after the business development firm saw its net investment income more than double from the prior quarter, helped by a rotation into higher-yielding float investments. investment rate and lower expenses.
Fourth quarter net investment income of $0.30 per share, beating analysts’ median estimate of $0.24, was up from $0.14 in the third quarter and down from $1.58 in the prior year period.
“With a growing and diversified portfolio of cash-generating investments, we believe we are well positioned to cover our quarterly dividend over the course of the year,” CEO Matt Kaplan said.
Net asset value per share was $11.16 compared to $12.56 in the third quarter and $16.63 in the fourth quarter of 2021.
As of December 31, 2022, GECC had total investments of $225.0 million at fair value. The weighted average current return on its debt portfolio was 12.4%
The company’s board of directors approved a quarterly dividend of $0.35 per share, which equates to an annualized return of 12.5% as of December 31, 2022, NAV per share.
Previously Great Elm Capital GAAP NII of $0.30 outperforms by $0.06, total investment income of $7.3M outperforms by $1.01M.