Ares Capital Posts $0.46 Core EPS as Q3 Investment Income Falls

Ares Capital Corporation posted $0.46 in third-quarter Core EPS as total investment income declined to $763 million from $782 million a year earlier, while net investment income per share came in below the newly declared dividend.

Net investment income totaled $328 million, or $0.46 per share, for the quarter ended Sept. 30. A year earlier, it was $338 million, or $0.48 per share. GAAP net income was $0.44 per share, compared with $0.57 a year earlier; Core EPS was $0.50 in the year-earlier quarter.

The company set its fourth-quarter dividend at $0.48 per share, with Dec. 15 as the record date and Dec. 29 as the payment date.

The results add a new figure to the question raised in an Oct. 26 dividend coverage preview. Third-quarter net investment income was two cents per share below the newly declared dividend.

For Core EPS, Ares excludes realized and unrealized gains and losses, associated capital-gains incentive fees and related taxes. Chief Executive Kort Schnabel said the company’s investment backlog was “up meaningfully from last quarter.” He also described transaction activity as stronger entering the fourth quarter.