Barings BDC (BBDC) investor relations material

Executive summary

• Net asset value (NAV) per share decreased to $11.02 as of March 31, 2026, from $11.09 at year-end 2025, primarily due to net realized losses and dividend under-earning, partially offset by unrealized appreciation.

• Net investment income for Q1 2026 was $25.9 million ($0.25 per share), with a net increase in net assets from operations of $20.0 million ($0.19 per share).

• The Board declared a Q2 2026 dividend of $0.26 per share, maintaining 12 consecutive quarters of stable regular dividends.

• Investment portfolio at fair value stood at $2.37 billion, with a weighted average yield on performing debt investments of 9.4% as of March 31, 2026.

• Portfolio remains highly diversified, defensively positioned, and focused on senior secured, core middle-market investments.

Financial highlights

• Total investment income for Q1 2026 was $60.6 million, down from $68.0 million in Q4 2025.

• Net realized losses for the quarter were $10.8 million, partially offset by $4.9 million in net unrealized appreciation.

• Net income for Q1 2026 was $20.0 million, or $0.19 per share.

• Total assets were $2.60 billion, with total net assets of $1.15 billion.

• Portfolio yield stood at 10.1% as of March 31, 2026.

Outlook and guidance

• Management expects continued manager dispersion in the BDC sector, with disciplined lenders better positioned.

• Portfolio yields remain supportive of current dividend levels; cautious outlook for M&A activity in the next 12 months.

• Management expects current cash, borrowing capacity, and operating cash flows to be adequate for at least the next twelve months.

• Ongoing focus on defensive, non-cyclical sectors and maintaining strong credit quality amid market volatility.

• Forward-looking statements caution about risks and uncertainties affecting future results, including market and economic conditions.