PFLT · PennantPark Floating Rate Capital Ltd.

PennantPark Floating Rate Capital Ltd. reported Q2 2026 results showing net investment income of $25.7 million or $0.26 per share on a GAAP basis, slightly below core NII of $0.27 per share after excluding $1.1 million debt issuance costs and $0.2 million incentive fee offset. Investment income rose to $66.0 million from $61.9 million year-over-year, driven by a larger debt portfolio primarily from first lien secured debt at $58.6 million. Expenses increased to $40.2 million, mainly from higher debt interest and expenses at $24.1 million due to increased borrowings supporting portfolio growth. The portfolio reached $2,580.3 million, with 99% variable-rate investments yielding 9.8% at quarter-end, down from 10.2% prior quarter amid lower rates. CEO Art Penn highlighted portfolio quality with low non-accruals at 0.8% cost basis, flat NAV, and PSSL II growth providing NII upside. However, NAV dipped 0.2% to $10.47 per share amid $66.1 million net unrealized depreciation. Distributions of $0.31 per share exceeded NII, prompting a dividend policy adjustment starting July for better alignment. Net realized losses were $8.9 million, offset by $12.2 million unrealized gains, yielding $0.29 per share net asset increase from operations. Portfolio activity included $294.8 million purchases and $328.0 million sales/repayments, with significant flows to JVs PSSL and PSSL II.