Triplepoint Venture Growth’s Q4 2023 Updates By Scott Kennedy
Read our latest research at The REIT Forum. Michael Vanloon and Scott Kennedy offer insights into today's key investment trends.
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Summary
This 24th earnings assessment article reviews TPVG’s NAV and NII performance during Q4 2023.
TPVG’s NAV was a notable underperformance while its NII was a minor-modest underperformance. 4 previous non-accrual loans were basically totally written-off during the quarter (a negative).
TPVG also had 2 new non-accrual portfolio companies (a negative; the larger portfolio company being a surprise).
TPVG's leverage continues to be very high (regulatory cap. needs to be considered). In addition, TPVG's PIK rate has now moved above 10% (a negative).
As such, TPVG received a 7.5% recommendation range “downgrade”. This resulted in a risk/performance rating downgrade to 4. TPVG is currently deemed notably overvalued (STRONG SELL).
Introduction:
Hi subscribers. For new members, my name is Scott Kennedy and currently I fully cover 20 mortgage real estate investment trust (mREIT) and 15 business development company (“BDC”) common stocks within this Investing Group regarding research/data, subscriber questions, weekly projected book values/net asset values (BV/NAV), and common stock recommendation ranges. Colorado (“CO”) Wealth Management handles the mREIT preferred stocks and he and his team handles all other applicable REIT sectors outside the mREIT sector. CO also provides some mREIT common stock and BDC articles from time-to-time which are more of an “overview/introduction” discussion; typically based either on my or our combined research/data. This also includes some macroeconomic trends and data. My name is always attached to all Investing Group articles I personally wrote so there is no confusion for subscribers.
This REIT Forum article is part of a series of articles over a span of 6-7 weeks which will analyze my previously projected BV/NAV and core earnings (or core earnings equivalent)/net investment income (“NII”) figures and compare these metrics to each mREIT’s and BDC’s actual reported results, respectively. For readers who are familiar with my public mREIT and/or BDC articles, these types of articles are beneficial to readers who desire to pursue a more active investing strategy and/or want more “real time” thoughts/analysis.
I hope my services/contributions ultimately help enhance a subscriber’s total investment returns or minimize their total investment losses within the mREIT and BDC sectors. At the very least, I hope subscribers will gain more insight into the mREIT and BDC sectors by reading my/our exclusive REIT Forum articles.
1) TPVG’s NAV and NII Q4 2023 Performance (Projected Versus Actual Results):
On 3/6/2024, Triplepoint Venture Growth BDC Corp. TPVG 0.00%↑ reported the company’s earnings results for the fourth quarter of 2023. Table 1 below provides TPVG’s NAV and earnings summary.
Table 1 – TPVG Q4 2023 NAV and Earnings Summary
Source: Taken Directly from the REIT Forum’s © Analytical Spreadsheets/Data
I provided the following commentary in regards to TPVG’s results for the fourth quarter of 2023: