Goldman Sachs BDC (GSBD) Q2 2024 earnings summary

Executive summary

• Net investment income per share rose 7.3% sequentially to $0.59, with adjusted net investment income per share at $0.57 and annualized yield on book value of 16.7%.

• Net asset value per share declined 6% to $13.67, and earnings per share for the quarter were $(0.47), reflecting realized and unrealized losses.

• Portfolio consisted of 155 companies, with 98% in senior secured debt and 99.5% of performing debt investments bearing floating rates.

• Board declared a $0.45 per share dividend for Q3 2024, payable October 28, 2024.

• Originations reached $440 million, the highest since platform integration, with 25 new and existing portfolio companies.

Financial highlights

• Total investment income was $108.6 million, down from $111.5 million sequentially, mainly due to new non-accruals.

• Net investment income after taxes was $67 million; adjusted net investment income after taxes was $65.2 million.

• Net realized and unrealized losses were $(121.4) million, driven by markdowns in software investments and underperformance.

• Net assets at June 30, 2024 were $1.6 billion, with total investments at fair value of $3.5 billion.

• Weighted average shares outstanding increased to 114.4 million from 110.1 million sequentially.

Outlook and guidance

• Management remains focused on recycling capital into high-quality opportunities and leveraging platform origination and recovery expertise.

• Target leverage remains at 1.25x, with current leverage at 1.19x, providing capacity for further investments.

• The company expects to continue focusing on direct originations of secured debt to middle-market companies, emphasizing floating rate loans.

• Equity distribution agreement allows up to $200 million in at-the-market offerings; $69.2 million raised in Q2 2024.

• Regular quarterly dividend of $0.45 per share maintained, with no special distribution announced.