Pennantpark Floating Rate Capital (PFLT) investor relations material

Executive summary

• Net investment income for Q2/Q3 2026 was $25.9M ($0.26/share), exceeding the base dividend, with a supplemental dividend policy introduced.

• Portfolio totaled $2.5B at June 30, 2026, with 89% in first lien senior secured debt and 99% variable-rate loans.

• NAV per share was $10.26, down 2% from the prior quarter, with net assets at $1.02B.

• Portfolio remains diversified, focused on resilient sectors like government services and defense, and conservatively positioned.

• PSSL II joint venture expanded to $390M–$320M, with plans to grow beyond $1B in assets.

Financial highlights

• Total investment income for the quarter was $66.1M, with core net investment income at $25.9M ($0.26/share).

• Expenses for the quarter were $40.2M, including $25M in interest and debt expenses, $12.9M in management/incentive fees, and $2.3M in G&A.

• Net realized gains for the quarter were $37.3M; net change in unrealized depreciation was $(56.6)M.

• Distributions declared for the quarter were $0.2883/share ($28.6M total).

• Debt-to-equity ratio at quarter end was 1.56x.

Outlook and guidance

• Management expects to grow PSSL II JV to over $1B in assets within 12–18 months.

• Focus remains on core middle market lending, maintaining disciplined underwriting and strong origination.

• Base monthly dividend set at $0.08/share starting July 2026, with a supplemental dividend tied to excess NII.

• Optimism for increased M&A activity and robust deal flow in the second half of the year.

• Liquidity and capital resources are sufficient to capitalize on market opportunities.