PennantPark Floating Rate Capital Q1 NAV Falls 3.1% as Portfolio Grows to $2.61B
PennantPark Floating Rate Capital reported Q1 with investment portfolio of $2.61B, NAV per share of $10.49 down 3.1%, and net investment income per share of $0.27. Distributions of $0.31 per share were declared as joint venture PSSL II invested $196.5M and upsized its credit facility.
1. Q1 Financial Results
PennantPark Floating Rate Capital ended Q1 (Dec. 31, 2025) with an investment portfolio of $2,605.3 million and net assets of $1,040.4 million. NAV per share declined 3.1% to $10.49. Net investment income was $26.6 million ($0.27 per share) and distributions declared were $0.31 per share. Debt-to-equity ratio stood at 1.57x, with weighted average yield on debt investments at 9.9%.
2. Portfolio Composition and Performance
As of quarter-end, the portfolio comprised 99% variable-rate debt across 160 companies, averaging $16.3 million per investment. Four companies on non-accrual represented 0.1% of fair value, and net unrealized depreciation reached $78.4 million. Purchases totaled $301.0 million and sales and repayments $441.4 million during the quarter.
3. PSSL II Joint Venture Expansion
PSSL II commenced operations, investing $196.5 million in new assets and holding $193.2 million at quarter-end. After quarter close, it added $130 million of investments, bringing total assets to approximately $325 million. The joint venture also upsized its credit facility to support further growth of net investment income and dividend coverage.