Barings Participation Investors Reports Preliminary First Quarter 2024 Results and Announces Increased Quarterly Cash Dividend Of $0.36 Per Share
In This Article:
CHARLOTTE, N.C.CHARLOTTE, N.C., May 16, 2024--(BUSINESS WIRE)--The Board of Trustees of Barings Participation Investors (NYSE: MPV) (the "Trust") met on May 16, 2024 and would like to report its preliminary financial results for the first quarter of 2024.
| Financial Highlights(1) | Three Months Ended | Three Months Ended | ||||||
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| Total Amount | Per Share(5) | Total Amount | Per | ||||
| Net investment income(2) | $ | 3,803,027 | $ | 0.36 | $ | 3,529,750 | $ | 0.33 |
| Net realized (losses) / gains(3) | $ | 1,215,599 | $ | .11 | $ | 198,004 | $ | 0.02 |
| Net unrealized appreciation | $ | 369,810 | $ | 0.03 | $ | 631,658 | $ | 0.06 |
| Net increase in net assets resulting from operations | $ | 5,018,627 | $ | 0.47 | $ | 4,449,487 | $ | 0.42 |
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| Total net assets (equity) | $ | 168,705,696 | $ | 15.88 | $ | 163,366,715 | $ | 15.41 |
| (1) All figures for 2024 are unaudited |
| (2) December 31, 2023 figures net of approximately $0.04 per share of excise tax. |
| (3) December 31, 2023 figures net of approximately $0.01 per share of capital gains tax |
| (4) Based on shares outstanding at the end of the period of 10,601,700 |
| (5) Based on shares outstanding at the end of the period of 10,622,421 |
Key Highlights:
Commenting on the quarter, Christina Emery, President, stated, "The Trust earned $0.36 per share of net investment income, net of taxes, for the first quarter of 2024, compared to $0.33 per share in the previous quarter. The increase in net investment income was predominantly due to higher base rates. During the 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 Board of Trustees declared a quarterly dividend of $0.36 per share, payable on June 14, 2024, to shareholders of record on May 31, 2024. This represents an increase of $0.01 per share or 2.9% over the previous dividend of $0.35 per share and the seventh consecutive quarterly increase.
During the three months ended March 31, 2024, the Trust reported total investment income of $4.9 million, net investment income of $3.8 million, or $0.36 per share, and a net increase in net assets resulting from operations of $5.3 million, or $0.50 per share.
Net asset value ("NAV") per share as of March 31, 2024, was $15.88, as compared to $15.41 as of December 31, 2023. The increase in NAV per share was primarily attributable to net investment income, net of taxes, of $0.36 per share, net unrealized appreciation on the Trust’s investment portfolio of approximately $0.03 per share and net realized gain on investments, net of taxes, of $.08 per share.