Pearl Diver Credit Company Inc. reported a 6.4% sequential rebound in its net asset value per share to $11.15 as of June 30, 2026, following a sharp first-quarter decline driven by market spread widening rather than underlying loan deterioration.
Total net assets increased to $77.3 million from $72.0 million in the prior quarter, while total assets stood at $116.9 million. Investment income fell 12.5% to $4.2 million ($0.60 per share) from $4.8 million ($0.70 per share) in Q1, contributing to a net investment income of $1.9 million ($0.28 per share). Total expenses rose to $2.2 million ($0.32 per share) from $0.31 per share previously.
The quarter’s recovery was largely driven by net unrealized gains of $6.7 million ($0.97 per share), which reversed a $25.1 million unrealized loss ($3.67 per share) in Q1. Net realized losses totaled $107,000, while the net increase in net assets from operations reached $8.5 million ($1.26 per share), compared with a net loss of $22.5 million ($3.28 per share) in the prior period.
Pearl Diver maintained its monthly dividend at $0.13 per share for September, October, and November, following distributions of $0.22 per share in April and May and $0.13 in June. The company’s dividend yield was evaluated at 17.67% based on its $8.83 stock price, near the lower end of its 52-week range of $8.45 to $17.74. Average daily volume remained light at approximately 10,000 shares, with a market capitalization of about $60 million.
Leverage stood at $38.4 million, or 32.9% of total assets, down from 35% at the end of March. The company completed five resets and refinancings during the quarter, reducing its weighted average cost of debt by 33 basis points and AAA spreads by 27 basis points. Liability spreads tightened across ratings, with AAA spreads narrowing to 121 basis points from 125 basis points in March, BBB spreads to 250 basis points from 310 basis points, and BB spreads to 510 basis points from 650 basis points.
Chief Executive Officer Indranil Basu cautioned that the recovery reflected non-cash market movements, noting that the portfolio remains managed conservatively. "We are not declaring that the cycle has turned," Basu said. Chief Financial Officer Chandrajit Chakraborty emphasized the company’s dividend strategy, stating that aligning distributions with portfolio earnings protects net asset value over a full cycle.
