Trinity Capital reports strong Q4, shares rise

Published 26/02/2025, 15:31
Updated 26/02/2025, 15:45
Trinity Capital reports strong Q4, shares rise

Investing.com -- Trinity Capital Inc . (NASDAQ:TRIN), a leading alternative asset manager, reported fourth quarter earnings that beat analyst expectations, driving shares up 5% in response. The company’s strong performance was primarily driven by higher net investment income.

Trinity Capital reported fourth quarter net investment income of $34.6 million, or $0.58 per share, versus the analyst consensus estimate of $0.53 per share. Total (EPA:TTEF) investment income for the quarter came in at $70.83 million, a 48.1% increase from $47.83 million in the same quarter last year.

The company’s net asset value (NAV) per share increased to $13.35 at the end of the fourth quarter, up from $13.13 at the end of the third quarter. Total net assets grew 8.7% to $823.0 million compared to $756.8 million at the end of the previous quarter.

Trinity Capital’s investment portfolio had an aggregate fair value of approximately $1.73 billion as of December 31, 2024, comprised of $1.29 billion in secured loans, $315.5 million in equipment financings, and $123.4 million in equity and warrants across 151 portfolio companies.

"We saw strong demand for capital from high-growth companies across diverse sectors in 2024 and continue to see robust market activity driving originations across our business verticals," Kyle Brown, Chief Executive Officer of Trinity Capital, commented. “2024 was a milestone year, and as we move into 2025, we believe our disciplined approach to credit and portfolio management positions us to create sustained long-term value for our shareholders.” Brown added, “Our unique capitalization structure—including our public company and our RIA that enables us to manage third-party private capital— has allowed us to continue to drive earnings."

The company declared a regular dividend of $0.51 per share for the fourth quarter, marking its 20th consecutive quarter of a consistent or increased regular dividend.

Trinity Capital’s leverage, or debt-to-equity ratio, improved to approximately 108% as of December 31, 2024, compared to 122% at the end of the third quarter.

Commenting on the results, Jefferies analysts said, "Compared to the previous quarter, TRIN’s 4Q24 results showed higher earnings, an expanded portfolio, and a stronger balance sheet. TRIN shares are attractive at 1.17x NAV, compared with an average of ~1.6x for internally managed BDC peers, particularly considering TRIN’s ROE in the mid-teens (17.4% in 4Q24).”

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