Kayne Anderson BDC (KBDC) investor relations material

Executive summary

• Q3 NII was $0.46/share, the highest in five years, covering the $0.40 dividend by 115%; annualized NII ROE was 11.7%.

• NAV ended at $15.71/share, down $0.29 QoQ, primarily due to realized and unrealized credit losses.

• Portfolio fair value was $2.2bn across 100 borrowers; 93% of debt investments were first-lien, and 95.1% were floating rate.

• Debt-to-equity was 1.17x, within the 1.00x–1.25x target range; liquidity totaled $508.7m.

Financial highlights

• Total investment income was $59.0m versus $55.7m QoQ; NII was $30.2m, or $0.46/share, versus $27.6m and $0.42/share.

• Net realized losses were $14.9m and net unrealized losses were $8.5m; net increase in assets from operations was $6.6m, or $0.10/share.

• NAV declined from $16.00 to $15.71/share; $0.36/share of realized and unrealized losses was partly offset by $0.06/share of NII above distributions and $0.01/share from accretive repurchases.

• Total expenses were $28.8m versus $28.2m QoQ; higher interest expense was partly offset by lower incentive fees, including the 12-quarter look-back fee cap.

• Excluding $1.7m of non-recurring prepayment premiums and accelerated fee accretion, NII still exceeded the dividend.

Outlook and guidance

• A $0.40/share Q4 regular dividend was declared, payable January 19, 2027, to December 31, 2026 record holders; management expects to maintain the base dividend.

• Management expects Centerline’s restructuring to close in Q4, with a sizable portion of the position expected to return to accrual and non-accrual levels to move toward Q2 levels, all else equal.

• Q4 realizations are expected to be similar to Q3; leverage is expected to remain broadly unchanged, with new investment deployment sized to portfolio runoff.

• Management cited higher reference rates and portfolio health as dividend support; income-producing investments averaged 587 bps over SOFR.