Sound Point Meridian (SPMC) Q3 24/25 earnings summary

Executive summary

• Achieved net investment income of $12.5 million ($0.62 per share) and GAAP net income of $32.2 million ($1.59 per share) for the quarter ended December 31, 2024.

• Declared dividends totaling $0.66 per common share during the quarter, with NAV per share at $20.52 as of December 31, 2024.

• Portfolio comprised 74 CLOs managed by 23 managers, diversified across 1,483 unique senior secured loans and 30+ industries.

• 97% of net investment income was recurring GAAP income from CLO equity and warehouse income.

• Issued 2.3 million Series A Preferred Shares, raising $55.8 million in net proceeds.

Financial highlights

• Total investment income for the quarter was $20.0 million; total expenses were $7.5 million, resulting in net investment income of $12.5 million.

• Net income for the quarter was $32.2 million, or $1.59 per share, including realized and unrealized gains.

• Realized gain on investments was $2.0 million ($0.10 per share); unrealized gain was $17.7 million ($0.87 per share).

• Total investments at fair value stood at $503.7 million; net assets were $415.9 million.

• Issued 2.3 million shares of 8.0% Series A Preferred, raising $55.8 million in net proceeds.

Outlook and guidance

• Declared a monthly distribution of $0.25 per common share for April, May, and June 2025, a 4.2% increase from the prior distribution, representing a 14.4% annualized yield based on December 31, 2024 share price.

• Declared dividends of $0.16667 per preferred share for April, May, and June 2025.