Financial Performance
Investment and Credit Quality
OTF reported a sharp increase in new investment activity, with $2.3 billion in new commitments during the fourth quarter, compared to $1.0 billion in the third quarter. Net funded investment activity reached $1.2 billion.
The company’s portfolio remains focused on senior secured debt, with 81% in senior secured positions and 77% in first-lien debt investments. Credit quality remained stable, as investments on non-accrual status represented just 0.2% of the total portfolio at fair value.
OTF delivered another strong quarter, marked by NAV growth and steady progress towards our target leverage.
Shareholder Returns and Liquidity
The Board of Directors declared a total dividend of $0.40 per share for the first quarter of 2026, consisting of a $0.35 regular dividend and a $0.05 special dividend. This represents an annualized dividend yield of 9.2% based on year-end NAV.
The company also ramped up its capital return program, repurchasing $64.6 million of its own stock during the fourth quarter. To support future returns, the Board approved a new $300 million share repurchase program to replace the existing $200 million authorization.
OTF ended the year with $2.3 billion in liquidity through cash and undrawn debt capacity. Its net debt-to-equity ratio stood at 0.75x at quarter-end.
Outlook
As AI reshapes the technology landscape, mission-critical solutions with data moats are well-positioned to adopt and benefit from AI. Credit quality remained stable, with investments on non-accrual representing just 0.2% of the portfolio at fair value.