Ares Capital ( (ARCC) ) has released its Q4 earnings. Here is a breakdown of the information Ares Capital presented to its investors.
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Ares Capital Corporation is a prominent specialty finance company focused on providing direct loans and other investments to private middle-market companies in the United States. It operates as a business development company (BDC) and is the largest publicly traded BDC by market capitalization.
Recently, Ares Capital reported its financial results for the fourth quarter and full year ending December 31, 2024. The company announced a dividend of $0.48 per share for the first quarter of 2025, maintaining its tradition of consistent dividend payouts.
For the fourth quarter of 2024, Ares Capital posted a GAAP net income of $357 million, or $0.55 per share, which was a decrease from $413 million, or $0.72 per share, in the same quarter of the previous year. The company achieved net investment income of $359 million, reflecting a year-over-year increase from $345 million. The portfolio saw growth, with investments at fair value rising to $26.7 billion from $22.9 billion at the end of 2023.
The company remains optimistic about the investment market for 2025, with expectations for increased activity in acquisition finance and growth capital opportunities. Ares Capital’s management emphasizes the strength of its balance sheet as a differentiating factor, supporting its ability to offer stable or growing dividends and increase book value for shareholders.
Looking ahead, Ares Capital is poised to leverage its extensive origination capabilities and strong financial position to continue supporting middle-market companies while delivering value to its investors.
