WhiteHorse Finance Reports 15% Drop in Q1 NII, Maintains $0.25 Dividend
WhiteHorse Finance reported first-quarter net investment income of $5.6 million, or $0.253 per share, down 15.2% year-over-year, and declared a $0.25 regular distribution and $0.01 supplemental dividend. Net asset value fell 1.8% to $11.47 and portfolio fair value declined 6.2% to $543 million, while incentive fees were cut to 17.5%.
1. First Quarter Financial Results
For the quarter ended March 31, 2026, WhiteHorse Finance recorded total investment income of $15.9 million and net investment income of $5.6 million, compared with $17.3 million and $6.6 million in the prior quarter. Net investment income per share declined 12.0% to $0.253, while net realized losses totaled $4.7 million and net unrealized depreciation reached $1.6 million.
2. Portfolio Composition and NAV
As of March 31, the investment portfolio’s fair value stood at $543.0 million, down 6.2% from $578.6 million at year-end, comprising 128 positions across 65 companies with a weighted average yield of 10.8%. Net asset value per share decreased 1.8% to $11.47 from $11.68, with 72.7% in first-lien secured loans and 19.5% in a strategic joint venture.
3. Distributions and Fee Waiver
The board declared a $0.25 per share regular distribution and a $0.01 supplemental distribution payable July 6 to shareholders of record May 21. Additionally, the adviser voluntarily reduced its incentive fee on net investment income from 20.0% to 17.5% for the fiscal quarter ending June 30, 2026.