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 declared quarterly dividend of $0.26 per share, maintaining 12 consecutive quarters of stable dividends.

• Portfolio at fair value stood at $2.37 billion, highly diversified, defensively positioned, and performed as designed despite sector volatility.

• Leadership transition completed with new CEO focused on execution and credit discipline.

• Continued rotation out of legacy MVC and Sierra assets, nearly fully repositioned portfolio.

Financial highlights

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

• Net realized losses were $10.8 million, mainly from portfolio exits and restructuring, offset by $4.9 million net unrealized appreciation.

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

• Dividend of $0.26 per share declared for Q2 2026, representing a 9.4% yield on NAV.

• Spillover income of $0.79 per share provides cushion for dividend coverage.

Outlook and guidance

• Management expects increased dispersion in BDC performance, with disciplined lenders better positioned.

• Cautious outlook for M&A activity; low transaction conversion rates expected to persist.

• Portfolio yields expected to support current dividend levels; potential for earnings compression if base rates decline.

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

• Subsequent to quarter-end, $128.2 million in new commitments were made, with $91.9 million funded at an average yield of 8.6%.