Shares declined 3.3% following the quarter as investors were disappointed by net investment income compression and a modest net asset value decline driven by legacy asset write-downs, signaling caution on earnings power amid ongoing portfolio rotation.

• Net investment income fell to $0.25 per share in Q1 2026 from $0.27 in Q4 2025, reflecting underlying pressure on earnings.
• Net asset value per share declined slightly to $11.02 from $11.09, primarily due to a write-down in a legacy MVC asset.
• Portfolio size and leverage remained stable with net repayments of roughly $17 million as repayments outpaced originations ($109 million originated vs. $126 million repaid).
• Weighted average yield on debt and income-producing securities was 10.1%, supporting the declared quarterly dividend of $0.26 per share (9.4% yield on NAV).
• Continued active rotation out of legacy Sierra and MVC assets remains a drag, despite indications that repositioning benefits will emerge over time.