Saratoga Investment Corp.
Fiscal First Quarter 2022 Shareholder Presentation
July 8, 2021
Continued Growth and Outperformance in Q1
Fiscal First Quarter 2022 Highlights:
- Continued high quality portfolio and strong performance
- Investment quality remains strong
- 92.9% of loan investments with highest internal rating
- Return on equity of 19.4% for LTM and 27.0% for Q4, beating BDC industry mean of 17.6%
- Unrealized appreciation of $16.8 million in Q1, reduction in Q1 last year value now more than recovered
- Gross Unlevered IRR of 13.0% on total unrealized portfolio as of May 31, 2021
- Fair value of $677.8 million is 3.2% above total cost of portfolio
- Gross Unlevered IRR of 16.5% on $573.3 million of total realizations
- Consistent strong long-term originations contribute to growing assets under management
- AUM up 22% since last quarter and up 40% since last year with originations of $119.2 million in Q1
- Base of liquidity and capital remains strong
- Quarter-endliquidity allows growth of AUM by 23% and is mostly long-term
- $50 million 4.375% 5-year unsecured bond issued on March 10, 2021
- Increased dividend by $0.01 to $0.44 per share for the quarter ended May 31, 2021, paid on June 29, 2021
- Key performance indicators of Q1 continue to grow from Q4
- Adjusted NII of $6.3 million is up 8.2%, Adjusted NII per share of 56c is up 4c, LTM ROE of 19.4% is up from 5.0% and NAV per share of $28.70 is up 5.3%, or $1.45, to highest level yet
- NAV per share has increased 13 of the past 15 quarters
2
Continued Asset Growth and Strong Credit Quality
Asset Base Expansion Trend | Overall Credit Quality Remains Strong |
$800 | |||||||
$700 | 100% | ||||||
$600 | $678 | 98.6% 99.0% 93.3% | 92.9% | ||||
80% | |||||||
96.8% | |||||||
$500 | $554 | ||||||
94.1% | |||||||
$400 | $486 | 60% | 98.3% | ||||
$402 | 94.2% | ||||||
$300 | $343 | 40% | 82.4% | 90.5% | |||
$200 | $284 | $293 | 64.3% | ||||
$241 | |||||||
$206 | |||||||
$100 | $155 | 20% | |||||
$95 | |||||||
$80 | |||||||
$0 | |||||||
0% |
Investments at Fair Value ($ million) | Performing | Underperforming Expected Loss of Principal | ||
Fair value of AUM | 93% of our SAR loan | |||
increased 22% year- | investments hold our highest | |||
over-year | internal rating; one on non- |
accrual at quarter-end*
Fair value of $678m at | |
Q1 FY22 is 3% above | * Excludes our investment in our CLO and our equity positions |
cost | |
3 |
Q1 FY22: Strong Financial Foundation and Momentum
Key Performance Metrics for the Fiscal Quarter
For the quarter ended | May 31, 2020 | Feb 28, 2021 | May 31, 2021 |
and as of | |||
($ in millions except per share) | |||
Net investment income | $9,018 | $4,289 | $2,556 |
Adjusted net investment income* | $5,768 | $5,780 | $6,254 |
Net investment income per share | $0.80 | $0.38 | $0.23 |
Adjusted net investment income per share* | $0.51 | $0.52 | $0.56 |
Net investment income yield | 12.3% | 5.7% | 3.3% |
Adjusted net investment income yield* | 7.9% | 7.7% | 8.0% |
Return on Equity - Last Twelve Months | 9.9% | 5.0% | 19.4% |
Fair value of investment portfolio | $482.9 | $554.3 | $677.8 |
Total net assets | $281.6 | $304.2 | $320.3 |
Investments in new/existing portfolio | $39.0 | $80.2 | $119.2 |
companies | |||
Loan Investments held in "Performing" credit | 90.4% | 93.3% | 92.9% |
ratings | |||
$10,000
$0
$7,000 $6,000 $5,000
$0.70
$0.00
$0.70
$0.00
13%
0%
13%
0%
50%
0%
$1,000
$0
$400 $300 $200
$200
$0
95%
90%
85%
*Adjusted for accrued capital gains incentive fee expense, reconciliation to GAAP net | |
investment income, net investment income per share and net investment income yield | |
included in our fiscal first quarter 2022 earnings release. | 4 |
Long-Term Accretive NAV Growth
Net Asset Value | |||||||
(FY11 to Q1 FY22) | |||||||
in millions | 5% increase this quarter and from | ||||||
pre-Covid levels | |||||||
$350 | |||||||
272% increase since Saratoga took | |||||||
over management | |||||||
$300 | |||||||
$304.3 | |||||||
$282.2 | |||||||
$250 | .3 | ||||||
$200 | $180.9 $186.8 | ||||||
$150 | $143.7 | ||||||
$122.6 | $125.1 | $127.3 | |||||
$100 | |||||||
$113.0 | |||||||
$86.0 | $97.0 | ||||||
$50
$320.3
$299.9 $304.2
5
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Saratoga Investment Corporation published this content on 07 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2021 16:24:26 UTC.