Saratoga Investment Corp (NYSE:SAR) reported upbeat earnings for its second quarter.
Wednesday, the New York-based Saratoga announced it had increased its assets under management ("AUM") to $486.9 million, an increase of 18.9% from $409.5 million as of May 31, 2019, and an increase of 23.9% from $392.9 million as of August 31, 2018. The increase this quarter consists of originations of $93.2 million, partially offset by repayments and amortizations of $19.0 million.
SAR also says total investment income of $13.9 million increased by $2.5 million, or 21.8%, compared to $11.4 million for the three months ended August 31, 2018, and by 8.9% on a quarter-on-quarter basis from $12.8 million for the three months ended May 31, 2019. This increased investment income was generated from an investment base that has grown by 23.9% since last year and by 18.9% from last quarter.
Net Asset Value was $224.3 million as of August 31, 2019, an increase of $43.3 million from $180.9 million as of February 28, 2019, and an increase of $51.7 million from $172.7 million as of August 31, 2018.
Said President Michael J. Grisius, "This fiscal quarter has again demonstrated our ability to build AUM without sacrificing quality, as our investments grew by 19% from last quarter, while those rated in our highest category remained at 99%.
"We always emphasize that quarterly portfolio growth can be lumpy and is dependent on various factors, including a robust pipeline, credit quality of deal pipeline, and the level of repayments – this past quarter we benefited from all three."
Shares climbed 40 cents, or 1.6%, to $24.88
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