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Stellus Capital Investment Corporation Reports Strong Q1 2025 Results

Stellus Capital Investment Corporation (NYSE: SCM) has disclosed its financial outcomes for the first fiscal quarter ending March 31, 2025, demonstrating resilience in its operations despite market fluctuations. CEO Robert T. Ladd presented a report indicating a net investment income of $0.35 per share and a core net investment income of $0.37 per share, marking a strong showing for the quarter.

Key Financial Highlights

During the period, Stellus successfully funded $55 million worth of new investments while receiving $15 million in repayments. This brought the total portfolio value to an impressive $991 million, assessed at market value. Reflecting continued investor confidence, the company raised over $9 million in equity through its at-the-market equity program. This brings the total distributions to shareholders to $295 million since the company commenced operations, equivalent to $16.95 per share.

Detailed Financial Breakdown

The financial report outlines several critical metrics for both Q1 2025 and Q1 2024:

• - Net investment income: $9.79 million ($0.35 per share) compared to $10.24 million ($0.42 per share) in the previous year.
• - Core net investment income: $10.29 million ($0.37 per share) down from $10.61 million ($0.44 per share) in Q1 2024.
• - Net realized loss on investments: $5.97 million ($0.21 per share), a significant reduction from the $20.38 million ($0.85 per share) realized in the prior year.
• - Total realized income: $3.79 million ($0.14 per share) compared to a loss of $10.17 million ($0.43 per share) in 2024.
• - Distributions: $11.09 million ($0.40 per share), slightly above the $9.65 million ($0.40 per share) declared in the previous year.
• - Net unrealized change in appreciation: This figure had an increase of $1.19 million compared to a much higher increase of $23.52 million caused by market dynamics in Q1 2024.

Portfolio Activity

Stellus reported an expanded investment landscape, rising to $991.1 million in fair value by the end of March 2025, up from $953.5 million in December 2024. The transactions included both new investments and repayments, showcasing a net activity of $40.4 million for the quarter. The company continues to diversify its portfolio with a total of 110 portfolio company investments.

Outlook and Market Position

Stellus Capital reiterates its commitment to maximizing returns for shareholders through disciplined investment strategies focused primarily on private middle-market companies. The recent quarterly performance highlights the company's resilience and adaptability in a rapidly changing investment landscape, significantly contributing to its solid standing in the market.

Upcoming Events

To further elaborate on these results, Stellus Capital plans to host a conference call on May 13, 2025. This session will be led by CEO Robert T. Ladd alongside CFO W. Todd Huskinson. Investors and interested parties are encouraged to listen in for deeper insights into the company's financial health and strategic outlook moving forward.

Conclusion

Stellus Capital Investment Corporation has navigated the complexities of the investment environment effectively in Q1 2025. With solid financial outcomes, robust portfolio management, and a dedication to shareholder returns, Stellus is well-positioned to continue its growth trajectory