Dividend Declarations
NEW YORK--(BUSINESS WIRE)--April 28, 2026--
Ares Capital Corporation ("Ares Capital") $(ARCC)$ announced that its Board of Directors has declared a second quarter 2026 dividend of $0.48 per share. The second quarter 2026 dividend is payable on June 30, 2026 to stockholders of record as of June 15, 2026.
MARCH 31, 2026 FINANCIAL RESULTS
Ares Capital also announced financial results for its first quarter ended March 31, 2026.
OPERATING RESULTS
Q1-26(3) Q1-25(3)
--------------------- ----------------------
(dollar amounts
in millions,
except per share Total Total
data) Amount Per Share Amount Per Share
---------------- --------- ---------- -------- ------------
GAAP net income
per share(1) $ 0.13 $ 0.36
Core EPS(2) $ 0.47 $ 0.50
Dividends
declared and
payable $ 0.48 $ 0.48
Net investment
income(1) $ 398 $ 0.55 $ 365 $ 0.54
Net realized
gains
(losses)(1) $ 106 $ 0.15 $ (61) $ (0.09)
Net unrealized
losses(1) $ (412) $ (0.57) $ (63) $ (0.09)
GAAP net
income(1) $ 92 $ 0.13 $ 241 $ 0.36
As of
---------------------------------------
(dollar amounts in
millions, except per share
data) March 31, 2026 December 31, 2025
--------------------------- ---------------- ---------------------
Portfolio investments at fair
value $ 29,499 $ 29,485
Total assets $ 30,679 $ 31,235
Stockholders' equity $ 14,065 $ 14,318
Net asset value per share $ 19.59 $ 19.94
Debt/equity ratio 1.13x 1.12x
Debt/equity ratio, net of 1.10x 1.08x
available cash(4)
(1) All per share amounts and weighted average shares outstanding are basic
and diluted. The basic and diluted weighted average shares outstanding
for the three months ended March 31, 2026 and 2025 were approximately
718 million and 676 million, respectively.
(2) Core EPS is a non-GAAP financial measure. Core EPS is the net increase
(decrease) in stockholders' equity resulting from operations, and
excludes net realized and unrealized gains and losses, any capital
gains incentive fee attributable to such net realized and unrealized
gains and losses and any income taxes (including excise taxes) related
to such net realized gains and losses, divided by the basic weighted
average shares outstanding for the relevant period. GAAP net income
(loss) per share is the most directly comparable GAAP financial
measure. Ares Capital believes that Core EPS provides useful
information to investors regarding financial performance because it is
one method Ares Capital uses to measure its financial condition and
results of operations. The presentation of this additional information
is not meant to be considered in isolation or as a substitute for
financial results prepared in accordance with GAAP. Reconciliations of
GAAP net income, the most directly comparable GAAP financial measure,
to Core EPS are set forth in Schedule 1 hereto.
(3) Net income can vary substantially from period to period due to various
factors, including the level of new investment commitments, the
recognition of realized gains and losses and unrealized appreciation
and depreciation. As a result, quarterly comparisons of net income may
not be meaningful.
(4) Computed as total principal debt outstanding less available cash
divided by stockholders' equity. Available cash excludes restricted
cash as well as cash held for uses specifically designated for paying
interest and expenses on certain debt.
"We are off to a strong start to 2026 with solid core earnings, continued healthy portfolio performance and borrower fundamentals, and low levels of non-accruing investments," said Kort Schnabel, Chief Executive Officer of Ares Capital. "In an environment characterized by heightened volatility and reduced transaction activity, we are seeing improving lending conditions, including enhanced spreads and fees, lower leverage and more attractive terms and documentation. With our scale, diversified portfolio and strong financial position, we believe we are well positioned to capitalize on new investment opportunities and to continue to generate attractive long-term shareholder returns."
"During the first quarter, we maintained a strong and flexible balance sheet while further enhancing our capital structure, including raising over $1.25 billion of new debt financing at attractive terms," said Scott Lem, Chief Financial Officer of Ares Capital. "With approximately $6.0 billion of available liquidity, modest leverage and a well-laddered liability profile with limited near-term maturities, we believe we are well positioned to continue supporting our portfolio companies and opportunistically investing in new companies. Underpinned by our significant level of taxable spillover income and our consistently strong performance, our stable quarterly dividend reflects our view of the earnings power of our company in the current market environment."
PORTFOLIO AND INVESTMENT ACTIVITY
(dollar amounts in millions) Q1-26 Q1-25
------------------------------ ------------------ ---------------------
Portfolio Activity During the
Period:
Gross commitments $ 3,246 $ 3,453
Exits of commitments $ 3,176 $ 2,857
Portfolio Information:
As of
-----------------------------------------
March 31, 2026 December 31, 2025
------------------ ---------------------
Portfolio investments at
fair value $ 29,499 $ 29,485
Fair value of accruing debt
and other income producing
securities(5) $ 26,500 $ 26,510
Number of portfolio company
investments 607 603
Percentage of floating rate
securities at fair
value(6) 71% 72%
Weighted average yields on
debt and other income
producing securities(7):
At amortized cost 10.3% 10.3%
At fair value 10.4% 10.3%
Weighted average yields on
total investments(8):
At amortized cost 9.3% 9.4%
At fair value 9.3% 9.3%
Asset class percentage at
fair value:
First lien senior secured
loans 60% 61%
Second lien senior
secured loans 5% 5%
Subordinated certificates
of the SDLP 4% 4%
Senior subordinated loans 6% 5%
Preferred equity 8% 9%
Ivy Hill Asset
Management, L.P.(9) 9% 8%
Other equity 8% 8%
(5) Includes the fair value of Ares Capital's equity investment in Ivy Hill
Asset Management, L.P. ("IHAM").
(6) Includes Ares Capital's investment in the subordinated certificates of
the SDLP (as defined below).
(7) Weighted average yields on debt and other income producing securities
are computed as (a) the annual stated interest rate or yield earned
plus the net annual amortization of original issue discount and market
discount or premium earned on accruing debt and other income producing
securities (including the annualized amount of the regular dividend
received by Ares Capital related to its equity investment in IHAM
during the most recent quarter end), divided by (b) the total accruing
debt and other income producing securities at amortized cost or at fair
value (including the amortized cost or fair value of Ares Capital's
equity investment in IHAM as applicable), as applicable.
(8) Weighted average yields on total investments are computed as (a) the
annual stated interest rate or yield earned plus the net annual
amortization of original issue discount and market discount or premium
earned on accruing debt and other income producing securities
(including the annualized amount of the regular dividend received by
Ares Capital related to its equity investment in IHAM during the most
recent quarter end), divided by (b) total investments at amortized cost
or at fair value, as applicable.
(9) Includes Ares Capital's subordinated loan and equity investments in
IHAM, as applicable.
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