MidCap Financial Investment Corporation (NASDAQ: MFIC) is a closed-end investment company that focuses on providing financing primarily to U.S. middle-market companies. As of March 31, 2025, the company is experiencing a stable condition with a slight decline in net asset value per share but healthy investment activity.

For the first quarter of 2025, net investment income (NII) per share was reported at $0.37, compared to $0.40 for the previous quarter. Total investment income for the quarter amounted to approximately $78.7 million, a decrease of $3.5 million, or 4.2%, from the prior quarter. The decrease was driven by lower fee and prepayment income, as well as a decline in asset yield attributed to lower base rates, partially offset by increases in the portfolio size.

Net assets stood at $1.39 billion, with a net asset value (NAV) per share of $14.93 as of March 31, 2025, down from $14.98 at the end of December 2024. The total investments made during the quarter reached $391.9 million, while gross fundings were $357 million, resulting in net fundings of $170 million after accounting for repayments. The weighted average net leverage ratio increased to 1.31x from 1.16x in the prior quarter.

During this period, the company repurchased approximately 477,000 shares at an average price of $12.75 per share, totaling $6.1 million. This buyback contributed approximately $0.01 to the NAV per share. The weighted average yield for the company’s direct origination portfolio was 10.7%, down from 11.0% in the previous quarter.

The investment portfolio, valued at $3.19 billion, included a composition where 99% of the direct origination was first lien. MFIC made $376 million in new commitments during the first quarter, with a weighted average spread of 513 basis points across 33 companies.

Looking at credit metrics, there was a decline in nonaccrual investments, which accounted for 0.9% of the portfolio at fair value, down from 1.3% in the previous quarter. The weighted average net leverage of borrowers improved to 5.25x from 5.5x, indicating a marginally stronger financial position among the portfolio companies.

As for the declared dividend, the Board of Directors approved a quarterly dividend of $0.38 per share, payable on June 26, 2025, for shareholders of record as of June 10, 2025. This reflects a continued commitment to return capital to shareholders amid the operational performance reported.

Overall, while certain key financial metrics reflect slight declines, the company is maintaining activity levels indicative of stability through continued investment and buyback strategies.