MidCap Financial Q2 NAV dips sequentially

Overview

• MidCap Q2 net investment income per share rises to $0.39 from $0.37 in March-end quarter

• Net asset value per share declines 1.2% to $14.75 at Q2 end, compared to $14.93 as of March 31

• Company expects $90 mln repayment from Merx Aviation Finance

Outlook

• Company expects $90 mln repayment from Merx Aviation in September qtr

• Company anticipates further Merx paydowns by end of 2025 or early 2026

• MidCap Financial sees redeployment of capital as accretive to earnings

Result Drivers

• DISCIPLINED UNDERWRITING - Despite competitive environment, disciplined underwriting contributed to net investment income increase

• NAV DECLINE - Challenges faced by certain portfolio companies led to a 1.2% decrease in net asset value per share

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy."

• Wall Street's median 12-month price target for MidCap Financial Investment Corp is $13.50, about 6.7% above its August 8 closing price of $12.59

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX7Y1Kv9