ARCC · ARES CAPITAL COR Q2 FY2026 earnings call record财报电话会记录

“We are also seeing attractive opportunities emerge, particularly in the upper middle market, where the scale of our capital is driving enhanced economics, stronger terms, and more compelling risk-adjusted returns than we saw a year ago, particularly relative to segments such as the lower middle market.”

“While industry transaction volumes remain below what many had expected, we believe some lenders are facing increased pressure to deploy capital, leading them to compromise on quality.”

“As we discussed in detail last quarter, we believe the potential impact of AI varies meaningfully across different businesses and risk profiles.”

“Consistent with the last quarter, we continue to believe AI risk across our software-oriented portfolio remains limited overall, with less than 50 basis points of ARCC's total portfolio at fair value attributable to higher AI risk software investments, and less than 4% attributable to medium or higher AI risk software investments.”

“Turning to our dividend outlook, we continue to believe ARCC's current regular dividend appropriately reflects our long-run underlying earnings power.”

“In addition, over the last 12 months, core earnings have exceeded our regular dividend, while an additional $0.15 per share of net realized gains has provided further support for our overall dividend-paying capacity.”

“Taken together, these factors support our outlook for relative stability and earnings and our decision to maintain a stable quarterly dividend, building on our track record of stable or growing regular quarterly dividends for 17 consecutive years.”

“While NAV declined modestly during the second quarter, this should be viewed in the context of ARCC's long track record of generating NAV growth while paying stable and attractive dividends to shareholders.”

“Importantly, our leverage of 1.12x debt to equity, net of available cash, was effectively stable quarter-over-quarter, and we ended the quarter with approximately $6 billion of available liquidity after giving effect to the repayment of $1 billion of unsecured notes earlier this month.”

“After quarter end, we also took advantage of favorable market dynamics to reset our inaugural $476 million debt securitization, reducing its weighted average spread by 35 basis points while extending its reinvestment period by three years and its final maturity by two years.”

“We expanded the number of borrowers in SDLP from 28 to 72 in the last quarter alone, and we're expecting and hoping that that continues to diversify going forward.”

“I think volatility of rates is a greater impact and a hampering impact on transaction volume than the absolute level of rates.”