ARES CAPITAL CORP 8-K

Summary

Q3 2026 results and a fourth-quarter dividend declaration. Ares Capital reported $0.44 of GAAP EPS and $0.46 of Core EPS, and declared a $0.48-per-share dividend payable 12/29/2026 to holders of record 12/15/2026. The company cited stable credit quality and low non-accrual levels, alongside slower originations during the quarter and a larger investment backlog entering Q4. It also disclosed that it entered a definitive agreement on 10/26/2026 to acquire MidCap Financial Investment Corporation in a cash-and-stock transaction.

Key Figures

• Net income reflected $50M of net realized losses and $43M of net unrealized gains in Q3 2026, versus $162M of net realized gains and $96M of net unrealized losses in Q3 2025. Core EPS excludes realized and unrealized gains and losses and related items.
• Q3 commitments were $2.1B, of which approximately $1.6B was funded; exits were $2.5B. The investment backlog was approximately $2.5B as of 10/22/2026. Non-accrual loans rose to 2.4% of investments at amortized cost (1.4% at fair value), from 1.8% (1.2% at fair value) at 12/31/2025; the portfolio’s weighted average grade remained 3.1.
• At 9/30/2026, portfolio investments were $29.2B at fair value, debt was $15.5B in principal amount ($15.1B carrying value), and cash was $722M. Debt/equity was 1.11x. The company issued $750M of unsecured notes at 6.25%, due 9/15/2033, and said available liquidity was approximately $7B.

Guidance

No guidance in this filing.

Investor Takeaways

• Watch whether the approximately $2.5B investment backlog converts into funded investments as transaction activity strengthens in Q4; conversion would support the company’s stated outlook for investment activity.
• Track Core EPS against the $0.48 quarterly dividend, together with non-accrual levels, to assess earnings coverage and portfolio credit performance.
• Watch for progress toward closing the announced MidCap Financial Investment Corporation acquisition.