Barings Participation Investors Reports Preliminary Q4 2022 Results; Net Asset Value Per Share As Of December 31, 2022, Was $14.99, As Compared To $15.15 As Of September 30, 2022
The Board of Trustees of Barings Participation Investors (NYSE:MPV) (the "Trust") met on February 27, 2023 and would like to report its preliminary financial results for the fourth quarter of 2022.
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Financial Highlights(1) |
Three Months Ended |
Three Months Ended |
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Total Amount |
Per Share(4) |
Total Amount |
Per |
|
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Net investment income(2) |
$ 2,886,244 |
$ 0.27 |
$ 2,883,428 |
$ 0.27 |
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Net realized gains / (losses)(3) |
$ 336,781 |
$ 0.03 |
$ (1,135,749) |
$ (0.11) |
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Net unrealized appreciation |
$ 76,791 |
$ 0.01 |
$ 1,705,739 |
$ 0.16 |
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Net increase in net assets resulting from operations |
$ 3,299,816 |
$ 0.31 |
$ 3,453,418 |
$ 0.33 |
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Total net assets (equity) |
$ 158,923,575 |
$ 14.99 |
$ 160,500,541 |
$ 15.14 |
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(1) All figures for 2022 are unaudited |
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(2) December 31, 2022 figures net of approximately $0.03 per share of excise tax |
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(3) December 31, 2022 figures net of approximately $0.01 per share of capital gains tax |
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(4) Based on shares outstanding at the end of the period of 10,601,700 |
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated, "During the fourth quarter, Barings continued to drive origination flow into quality, 1st lien senior secured middle-market investments. When constructing portfolios, we focus on investing in high-quality businesses that are leaders in their space and offer defensive characteristics that will allow them to perform through economic cycles. The increase in net investment income is a function of both the sound credit quality of the portfolio and rising base rates."
During the three months ended December 31, 2022, the Trust reported total investment income of $4.1 million, net investment income of $2.9 million, or $0.27 per share, and a net increase in net assets resulting from operations of $3.3 million, or $0.31 per share.
Net asset value ("NAV") per share as of December 31, 2022, was $14.99, as compared to $15.15 as of September 30, 2022. The decrease in NAV per share was primarily attributable to the payment of a $0.22 per share dividend on November 18, 2022, and the declaration of a $0.24 per share dividend which was paid on January 20, 2023, partially offset by net realized gains of approximately $0.03 per share and net unrealized appreciation of $0.01 per share.
Recent Portfolio Activity
During the three months ended December 31, 2022, the Trust made six new investments totaling $2.1 million and 17 add-on investments in existing portfolio companies totaling $1.2 million. During the three months ended December 31, 2022, the Trust had one loan repaid at par totaling $1.1 million, one mezzanine debt investment repaid at par totaling $1.3 million and realized one equity investment totaling $0.5 million for a realized gain of $0.3 million, or approximately $0.03 per share.
Liquidity and Capitalization
As of December 31, 2022, the Trust had cash of $4.9 million and $23.5 million of borrowings outstanding. The Trust had unfunded commitments of $9.1 million as of December 31, 2022.
Net Capital Gains
The Trust realized net capital gains of $336,781 or $0.03 per share during the quarter ended December 31, 2022, which resulted in realized net capital losses for the year ended December 31, 2022, of $437,446 or $0.04 per share. By comparison, for the year ended December 31, 2021, the Trust realized net capital gains of $4,972,890 or $0.47 per share. During the quarter ended September 30, 2022, the Trust realized net capital losses of $1,135,749 or $0.11 per share.
Annual Meeting
The Trust's annual shareholders' meeting will be held on Thursday, May 18, 2023. Shareholders of record at the close of business on March 21, 2023, will be entitled to vote at the meeting.
About Barings Participation Investors
Barings Participation Investors is a closed-end management investment company advised by Barings LLC. Its shares are traded on the New York Stock Exchange under the trading symbol ("MPV").