Ares Capital Corporation Announces December 31, 2024 Financial Results and Declares First Quarter 2025 Dividend of $0.48 Per Share

DIVIDEND DECLARATIONS

NEW YORK--(BUSINESS WIRE)--February 05, 2025-- 

Ares Capital Corporation ("Ares Capital") $(ARCC)$ announced that its Board of Directors has declared a first quarter 2025 dividend of $0.48 per share. The first quarter 2025 dividend is payable on March 31, 2025 to stockholders of record as of March 14, 2025.

DECEMBER 31, 2024 FINANCIAL RESULTS

Ares Capital also announced financial results for its fourth quarter and year ended December 31, 2024.

 
OPERATING RESULTS 
 
                       Q4-24(4)          Q4-23(4)           FY-24              FY-23 
                   -----------------  ---------------  ----------------  ------------------ 
(dollar amounts 
in millions, 
except per share    Total      Per     Total     Per    Total     Per     Total 
data)               Amount    Share    Amount   Share  Amount    Share   Amount   Per Share 
----------------   --------  -------  --------  -----  -------  -------  -------  --------- 
GAAP net income 
 per share(1)(2)             $ 0.55             $0.72           $ 2.44            $ 2.75 
Core EPS(3)                  $ 0.55             $0.63           $ 2.33            $ 2.37 
Dividends 
 declared and 
 payable                     $ 0.48             $0.48           $ 1.92            $ 1.92 
Net investment 
 income(1)         $359      $ 0.55    $   345  $0.60  $1,403   $ 2.25   $1,266   $ 2.28 
Net realized 
 (losses) 
 gains(1)          $(25)     $(0.03)   $    28  $0.05  $  (69)  $(0.11)  $ (179)  $(0.32) 
Net unrealized 
 gains(1)          $ 23      $ 0.03    $    40  $0.07  $  188   $ 0.30   $  435   $ 0.79 
GAAP net 
 income(1)(2)      $357      $ 0.55    $   413  $0.72  $1,522   $ 2.44   $1,522   $ 2.75 
 
 
                                                   As of 
                                  ---------------------------------------- 
(dollar amounts in millions, 
except per share data)             December 31, 2024    December 31, 2023 
-------------------------------   -------------------  ------------------- 
Portfolio investments at fair 
 value                              $          26,720    $          22,874 
Total assets                        $          28,254    $          23,800 
Stockholders' equity                $          13,355    $          11,201 
Net assets per share                $           19.89    $           19.24 
Debt/equity ratio                               1.03x                1.07x 
Debt/equity ratio, net of                       0.99x                1.02x 
 available cash(5) 
 
 
____________________________ 
(1)    All per share amounts and weighted average shares outstanding are 
       basic. The basic weighted average shares outstanding for the three 
       months and year ended December 31, 2024 were approximately 655 million 
       and 624 million, respectively, and approximately 572 million and 554 
       million, respectively, for the comparable periods in 2023. 
 
(2)    The basic and diluted weighted average shares outstanding for the three 
       months and year ended December 31, 2024 was approximately 655 million 
       and 624 million shares, respectively. Ares Capital's diluted GAAP net 
       income per share for the three months and year ended December 31, 2023 
       was $0.70 and $2.68, respectively. The weighted average shares 
       outstanding for the purpose of calculating the diluted GAAP net income 
       per share for the three months and year ended December 31, 2023 were 
       approximately 593 million shares and 575 million shares, respectively, 
       which includes approximately 21 million shares for each period related 
       to the assumed conversion of Ares Capital's then outstanding $403 
       million in aggregate principal amount of unsecured convertible notes 
       (the "2024 Convertible Notes"). 
 
(3)    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 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. 
 
(4)    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. 
 
(5)    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. 
 
 

"With our fourth quarter's results, we concluded another successful year for the company where stable credit performance and a record year of investing supported strong earnings and further growth in book value per share," said Kipp deVeer, Chief Executive Officer of Ares Capital. "As we enter 2025, we believe we are well positioned for what we expect will be an increasingly active investing market for acquisition finance and growth capital opportunities."

"Through year-end 2024, we have now paid over 15 consecutive years of stable or growing regular dividends while continuing to increase our book value for shareholders," said Scott Lem, Chief Financial Officer of Ares Capital. "Our ability to deliver this attractive level of long-term performance is supported by the strength of our balance sheet, which we believe is a key point of differentiation for ARCC."

 
PORTFOLIO AND INVESTMENT ACTIVITY 
 
(dollar amounts in 
millions)               Q4-24   Q4-23      FY-24        FY-23 
---------------------   ------  ------  -----------  ----------- 
Portfolio Activity 
During the Period: 
    Gross commitments   $3,751  $2,384  $15,081      $ 5,966 
    Exits of 
     commitments        $2,715  $1,427  $10,103      $ 5,729 
 
Portfolio 
Information: 
                                           As of December 31, 
                                        ------------------------ 
                                           2024         2023 
                                        -----------  ----------- 
    Portfolio 
     investments at 
     fair value                         $26,720      $22,874 
    Fair value of 
     accruing debt and 
     other income 
     producing 
     securities(6)                      $23,643      $20,375 
    Number of 
     portfolio company 
     investments                            550          505 
    Percentage of 
     floating rate 
     securities at 
     fair value(7)                           69%          69% 
    Weighted average 
    yields on debt 
    and other income 
    producing 
    securities(8): 
        At amortized 
         cost                              11.1%        12.5% 
        At fair value                      11.2%        12.5% 
    Weighted average 
    yields on total 
    investments(9): 
        At amortized 
         cost                              10.0%        11.3% 
        At fair value                       9.9%        11.2% 
 
    Asset class 
    percentage at 
    fair value: 
        First lien 
         senior 
         secured 
         loans                               57%          44% 
        Second lien 
         senior 
         secured 
         loans                                7%          16% 
        Subordinated 
         certificates 
         of the SDLP                          5%           6% 
        Senior 
         subordinated 
         loans                                5%           5% 
        Preferred 
         equity                              10%          11% 
        Ivy Hill Asset 
         Management, 
         L.P.(10)                             7%           9% 
        Other equity                          9%           9% 
 
 
____________________________ 
(6)     Includes the fair value of Ares Capital's equity investment in Ivy 
        Hill Asset Management, L.P. ("IHAM"). 
 
(7)     Includes Ares Capital's investment in the subordinated certificates of 
        the SDLP (as defined below). 
 
(8)     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. 
 
(9)     Weighted average yields on total investments are computed as (a) the 

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