Oxford Square Capital ( (OXSQ) ) has released its Q3 earnings. Here is a breakdown of the information Oxford Square Capital presented to its investors.
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Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans and collateralized loan obligation (CLO) vehicles, including debt and equity tranches. The company recently reported its financial results for the third quarter ending September 30, 2024, along with future distribution announcements.
In the latest earnings report, Oxford Square Capital Corp. declared distributions on common stock for the first quarter of 2025, with a consistent payout of $0.035 per share for each month. The company’s net asset value per share decreased to $2.35 from $2.43 in the previous quarter. Net investment income was reported at $6.2 million, or $0.10 per share, showing a decline from $7.7 million in the prior quarter. Total investment income also decreased to $10.3 million from $11.4 million.
Key financial metrics included an increase in the weighted average yield of debt investments to 14.5% and a slight decrease in the cash distribution yield of CLO equity investments to 15.3%. Despite these yields, the company experienced a net decrease in net assets due to a combination of net realized losses and net unrealized appreciation. Notably, the company invested $47.7 million during the quarter but also faced challenges with non-accrual status investments in its portfolio.
Looking ahead, Oxford Square Capital Corp. remains focused on managing its investment portfolio and navigating market conditions. The company continues to monitor its investment income and expenses closely, aiming to sustain distribution levels while adapting to financial and market changes.
