Ares Capital (ARCC) investor relations material

Executive summary

• Core EPS for Q1 2026 was $0.47 per share, with net investment income of $398 million and GAAP net income of $92 million ($0.13 per share), reflecting lower realized and unrealized gains compared to prior quarters.

• Portfolio at fair value was $29.5 billion across 607 companies, with strong diversification and healthy fundamentals.

• Net asset value per share was $19.59 at quarter-end, down from $19.94 at December 31, 2025.

• Dividend declared and paid was $0.48 per share, reflecting stable distributions.

• Portfolio quality remains strong with low non-accruals and a focus on first lien senior secured loans and floating rate debt.

Financial highlights

• Total investment income for Q1 2026 was $763 million, with total expenses of $359 million.

• Net realized gains were $106 million, while net unrealized losses totaled $412 million.

• Net realized and unrealized losses for Q1 2026 totaled $(306) million, a sharp decline from $(77) million in Q4 2025.

• Net asset value ended at $14.1 billion, with total assets of $30.7 billion as of March 31, 2026.

• Weighted average yield on debt and income-producing securities at amortized cost was 10.3%.

Outlook and guidance

• Management expects to capitalize on new investment opportunities due to scale, diversification, and strong financial position.

• Investment backlog was approximately $1.8 billion as of April 23, 2026, with $198 million in new commitments post-quarter.

• Market activity is picking up after a slow start, but management remains cautious due to ongoing geopolitical and economic uncertainties.

• Stable or growing dividends are expected, supported by spillover income and modest leverage.