Logan Ridge Finance Corporation Announces Fourth Quarter and Full Year 2024 Financial Results
Logan Ridge Finance Corporation, a business development company investing primarily in first lien loans and, to a lesser extent, second lien loans and equity securities issued by lower middle-market companies, has released its financial results for the fourth quarter and full year ended December 31, 2024. The company reported strong financial performance and significant corporate developments.
Financial Highlights
For the fourth quarter of 2024, Logan Ridge reported total investment income of $5.4 million, an increase from $5.1 million in the previous quarter and $4.4 million in the same quarter of the previous year. Net investment income (NII) rose to $1.5 million, or $0.56 per share, compared to $1.0 million, or $0.37 per share, in the prior quarter and $0.6 million, or $0.22 per share, in the fourth quarter of 2023. The net asset value (NAV) per share was $32.04 as of December 31, 2024, down slightly from $32.31 as of September 30, 2024, and $33.34 as of December 31, 2023.
For the full year 2024, total investment income was $20.9 million, up from $20.2 million in 2023. Net investment income for the year was $4.2 million, or $1.56 per share, compared to $3.8 million, or $1.43 per share, in the previous year. The company made approximately $38.3 million in investments and had $55.0 million in repayments and sales of investments, resulting in net repayments and sales of approximately $16.7 million. Total shares repurchased in open market transactions during the year were 41,162 at an aggregate cost of approximately $1.0 million.
Business and Operational Highlights
During the fourth quarter, Logan Ridge made approximately $26.1 million of investments and had approximately $29.5 million in repayments and sales of investments, resulting in net repayments and sales of approximately $3.4 million. The company also repurchased 16,598 shares of its outstanding common stock in open market transactions at an aggregate cost of approximately $0.4 million, resulting in $0.04 per share of NAV accretion.
Strategic Initiatives and Corporate Developments
Logan Ridge announced a merger agreement with Portman Ridge Finance Corporation, aiming to create meaningful shareholder value through greater scale, enhanced liquidity, and improved operational efficiencies. The merger is subject to certain closing conditions, including requisite approvals from both companies' stockholders. Additionally, the company declared a distribution of $0.36 per share for the first quarter of 2025, payable on March 31, 2025, to stockholders of record as of March 24, 2025.
Management's Perspective
Ted Goldthorpe, Chief Executive Officer and President of Logan Ridge, commented, "2024 was a profoundly transformative year for Logan Ridge, as we continued to build upon the record results seen in full year 2023 and made significant strides in the rotation out of the legacy equity portfolio. This was highlighted by record levels of total investment income, standing at $20.9 million, net investment income of $4.2 million, or $1.56 per share, and the sale of our largest equity position, Nth Degree, above its prior quarter fair value. The culmination of these successes has paved the way for the combination with Portman Ridge Finance Corporation, which we announced in January. We believe this combination has the potential to provide greater scale, enhanced liquidity, and improved operational efficiencies, thus enhancing our ability to further drive shareholder value."
Future Outlook
Logan Ridge's management has expressed optimism about the future of the combined company with Portman Ridge Finance Corporation. The company aims to continue executing its business plan to provide meaningful returns to its stakeholders. The approved dividend of $0.36 per share for the first quarter of 2025 represents a 13% increase compared to the $0.32 per share distributed in the first quarter of 2024.
SEC Filing: Logan Ridge Finance Corp. [ LRFC ] - 8-K - Mar. 13, 2025