US business development company's fiscal Q2 net investment income per share declined from the prior quarter.
Net asset value per share rose sequentially, helped by a net gain on investments.
Company kept quarterly distribution at $0.17 per share, above net investment income.
OFS Capital declared a Q3 distribution of $0.17 per share, payable October 5, 2026.
Result drivers and key details
Lower investment income - Net investment income fell due to a $2.1 million decrease in total investment income, mainly from lower interest and non-recurring dividend income.
Yield compression - Portfolio's weighted-average performing income yield declined to 12.1% from 12.5%, mainly due to lower yields on debt investments and structured finance securities.
Non-accrual loans - Loans to one portfolio company were placed on non-accrual status, increasing total non-accrual loans to 7.2% of investments at fair value.
The one available analyst rating on the shares is hold. The average consensus recommendation for the closed-end funds peer group is buy. Wall Street's median 12-month price target for OFS Capital Corp is $5.00, about 44.9% above its July 29 closing price of $3.45.
OFS•
