Alaris Equity Partners Income Trust (AD-UN) Q4 2025 earnings summary

Executive summary

• Achieved strong operating performance in 2025 with 15.9% Q4 and 14% annual growth in total revenue and operating income, record capital deployment of $387.4 million, and a payout ratio below target range.

• Net Book Value Per Unit increased $0.64 for the year to $24.79, despite unrealized FX losses and distributions.

• Portfolio expanded to 23 platform partners, with a weighted average Earnings Coverage Ratio of 1.5x and low leverage.

• Quarterly dividend increased by 9% to $0.37 per unit, supported by strong capital deployment and payout ratio below target.

• Positive momentum expected to continue into 2026, with anticipated common equity crystallizations and dividend growth.

Financial highlights

• Total revenue and operating income rose 15.9% in Q4 and 14% for the year, driven by fair value gains on partner investments.

• Net realized and unrealized gain on partner investments was $73.2 million in 2025, up from $47.3 million in 2024.

• Earnings from operations increased 34.8% in Q4 and 17.3% for the year.

• Net book value per unit increased to $24.79 in 2025, up $0.64 year-over-year, but down $0.38 from Q3 due to FX movements and distributions.

• Full-year earnings and comprehensive income decreased 61% to $90.8 million, mainly due to FX losses and absence of a non-recurring gain from 2024.

Outlook and guidance

• Q1 2026 total partner revenue expected at $46.9 million; run rate revenue for next 12 months projected at $200 million.

• Run rate G&A estimated at $20.5 million; payout ratio for 2026 expected in the 60%-65% range.

• Guidance does not include potential gains from anticipated partner monetizations.

• Every $50 million deployed at 14% adds $2.79 million to run rate revenue; a 1% interest rate increase reduces cash flow by $3.1 million.