Ares Capital (ARCC) investor relations material

Executive summary

• Q3-26 net investment income was $328M and Core EPS was $0.46; GAAP net income was $319M, down from $404M a year earlier.

• Portfolio fair value was $29.213B across 636 companies; non-accruals were 2.4% of investments at amortized cost and 1.4% at fair value.

• Signed a definitive agreement to acquire MidCap Financial Investment Corporation for cash and stock, at an implied value of ~$2.6B; closing is targeted for H1 2027.

• Q3 commitments were $2.109B and exits were $2.473B; management cited stronger activity entering Q4.

Financial highlights

• Q3 investment income was $763M versus $782M YoY; expenses were $429M versus $433M, and net investment income was $328M versus $338M.

• Q3 GAAP net income was $319M ($0.44/share) versus $404M ($0.57/share); Core EPS was $0.46 versus $0.50.

• 9M investment income rose to $2.294B from $2.259B, and NII increased to $1.085B from $1.045B; net income fell to $582M from $1.006B.

• 9M net unrealized losses widened to $552M from $174M; Q3 recorded $50M of realized losses and $43M of unrealized gains.

• NAV was $19.31/share at Sept. 30; the Q4 regular dividend was declared at $0.48/share.

Outlook and guidance

• Investment backlog was $2.5B as of Oct. 22; transactions remain subject to documentation, terms and closing conditions.

• Oct. 1–22 commitments were ~$1.1B, including ~$855M funded; exits were ~$727M.

• Q4-26 regular dividend of $0.48/share is payable Dec. 29 to holders of record Dec. 15.

• MFIC acquisition completion is expected in H1 2027, subject to shareholder, regulatory, listing, registration, third-party consent and other customary conditions.