Fri, May 9, 2:34 PM (7 days ago)
### Summary of Hancock Park Corporate Income, Inc. (HPCI) Q1 2025 Financial Performance **Financial Health and Performance Metrics:** - **Revenue:** Total investment income for Q1 2025 was $1,224,180, down from $1,638,673 in Q1 2024, primarily due to lower SOFR rates driven by U.S. Federal Reserve rate cuts. - **Profit Margins:** Net investment income decreased to $298,616 in Q1 2025 from $479,221 in Q1 2024. The company reported a net loss on investments of $618,834, primarily due to net unrealized depreciation of $645,883. - **Cash Flow:** Net cash provided by operating activities was $819,488 in Q1 2025, down from $2,051,132 in Q1 2024. The company had cash and cash equivalents of $364,456 and an unused commitment of $10,735,000 under the Banc of California Credit Facility. - **Earnings Changes:** Net asset value (NAV) per share decreased from $10.21 at the end of 2024 to $9.83 at the end of Q1 2025, primarily due to a net loss on investments. **Quarterly Performance Discussion:** - **Investment Portfolio:** As of March 31, 2025, the company had loans to 25 portfolio companies, with 63% being first lien loans and 37% second lien loans. The portfolio included investments in six structured finance securities. - **Debt and Equity Investments:** The company's investments consisted of $30,818,369 in debt and equity investments and $9,111,435 in structured finance securities. - **Industry Composition:** The top three industries by fair value were Health Care and Social Assistance (23.0%), Manufacturing (19.0%), and Administrative and Support Services (14.4%). **Trends and Uncertainties:** - **Interest Rate Impact:** The weighted-average performing income yield on interest-bearing investments decreased to 12.3% in Q1 2025 from 13.2% in the prior quarter due to U.S. Federal Reserve rate cuts. - **Liquidity and Capital Resources:** The company had an unused commitment of $10,735,000 under the Banc of California Credit Facility and unfunded commitments of $1,091,623 to fund various undrawn revolvers and other portfolio investments. - **Future Operations Impact:** The company declared a distribution of $0.06 per common share for Q2 2025 and approved a tender offer to purchase 2.5% of the weighted average number of shares of the outstanding common stock for the trailing 12-month period ending March 31, 2025. **Ticker:** HPCI