PFLT Stock: Monthly Dividend Cut to $0.0833, NII, NAV and JV Marks

What PFLT is, and what its filings show that a quote page does not

PFLT is a listed business development company, a BDC, that lends mostly first-lien floating-rate loans to US middle-market companies. At June 30, 2026 it held 159 portfolio companies with an average size of $15.8 million, about 99% of the debt at variable rates, and net assets of $1,017.6 million on 99,217,896 shares. It is externally managed by PennantPark Investment Advisers, LLC, and its fiscal year ends on September 30, so the “third quarter” in its releases is the quarter ended June 30.

Quote pages and dividend-history pages show the amount and the yield. The filings add what they leave out: how much net investment income was behind each monthly payment, what the balance sheet looked like when the payment was set, how much of the income comes from two joint ventures the company co-manages, and where the unrealized losses are. PFLT is one of the 25 listed BDCs in our census of 36 BDCs’ non-accruals and PIK and our list of BDC stocks; if the structure is new to you, start with what a BDC is.

The monthly dividend: 33 payments of $0.1025, then $0.0833

Every month PFLT files an 8-K with a press release that declares that month’s distribution. We read all 38 from September 2023 to October 2026. The first 33 are each $0.1025 per share. The June 2, 2026 release declared $0.0833 “comprised of an $0.08 per share base dividend and $0.0033 per share supplemental dividend,” and the four after it repeat that split.

Neither the monthly releases nor the 10-Q say why the amount changed, and none of them uses the word “cut”; the arithmetic is simple. $0.0833 is 18.7% below $0.1025, the $0.08 base is 22.0% below it, and the declared rate at 12 payments is $0.9996 a share a year against $1.23 (our arithmetic). The October 2026 record date, October 15, has passed as of this page; the payment date is November 2, 2026. The 10-K for the year ended September 30, 2025 says the $1.23 per share declared in both fiscal 2025 and fiscal 2024 was from ordinary income (including short-term gains), with no distributions from long-term capital gains; the final character of each year’s distributions is reported on Form 1099-DIV (see our 1099-DIV timeline).

Eleven quarters of NII against what was declared

The table puts each quarter’s NII per share next to the sum of the three monthly declarations for the same quarter. GAAP NII is the reported figure; core NII is the company’s non-GAAP measure, which strips one-time items such as amendment costs or a loan prepayment. Both are divided by the amount declared (our arithmetic, on the rounded per-share figures the releases print).

Three readings. First, core NII covered the dividend in each of the first five quarters, at 101% to 107%, and has not since. The September 2024 quarter shows GAAP NII of $0.24, but the release says core NII excluded $8.6 million of debt amendment and issuance costs and included $2.8 million of incentive fee expense; the December 2024 quarter shows $0.37 against core of $0.33, mostly because of $3.8 million of accelerated amortization income from an early loan repayment. Since the March 2025 quarter even core NII has been 91% or less of what was declared. Second, fiscal-year totals show the same drift. NII per share was $1.33 in fiscal 2023 (core $1.27), $1.18 in fiscal 2024 (core $1.27) and $1.16 in fiscal 2025 (core $1.18) against $1.23 declared in each of the last two, 96% and 94% on GAAP (our arithmetic). Third, the new rate is covered. In the quarter ended June 30, 2026 NII was $0.26 per share against $0.2883 declared. At three months of $0.0833 the declared amount is $0.2499, and $0.26 of core NII is 104% of it (our arithmetic); one quarter at a time, this is all that can be said until the November 23 release.

The nine-month figures to June 30, 2026 are NII of $78.3 million, or $0.79 per share, against distributions declared of $0.9033 per share ($89.6 million), 87% (our arithmetic). The company’s own language on the tax side is “We monitor available net investment income to determine if a return of capital for tax purposes may occur for the fiscal year.”

A portfolio that grew 2.3 times while NII per share fell

PFLT did not shrink into a lower payment; it grew into one. Between September 30, 2023 and June 30, 2026 the portfolio rose 134.7%, the share count 68.9% and the debt-to-equity ratio doubled, and NII per share still fell 18.8% (our arithmetic).

Two things drove the share count. PFLT sold 18,845,194 shares through its at-the-market program (ATM) in fiscal 2024 at an average $11.35 and 21,638,000 in fiscal 2025 at an average $11.34, raising $213.3 million and $244.8 million, and it has issued none in the nine months to June 30, 2026, a period in which the price was below NAV at each quarter-end (88.4%, 76.8% and 72.9%; our arithmetic). The 10-Q says the adviser may pay commissions or make “additional supplemental payments” so that ATM sales net of commissions are not below NAV per share.

What did not scale was income per share. In the June quarter the 10-Q shows $25.0 million of interest and expenses on debt, 37.9% of the $66.1 million of investment income (our arithmetic), and a ratio of debt-related expenses to average net assets of 9.87% annualized, against 9.23% a year earlier. On September 2, 2025 PFLT announced it had acquired about $250 million of assets distributed from the wind-down of PennantPark-TSO Senior Loan Fund, which the adviser said it believed would be “accretive to net investment income by approximately two cents per share per quarter.” NII per share in the four quarters after the announcement was $0.28, $0.27, $0.26 and $0.26; the filings do not isolate that portfolio’s effect.

NAV and the price: from 102% of NAV to 73%

NAV per share has fallen in seven of the last eight quarters, by 1.2%, 3.1%, 0.2% and 2.0% in the last four. The price fell faster. The 10-K and 10-Q financial highlights give the market price on each period-end date, which is the only price series in the filings.

The price was down 23.2% in fiscal 2025 (from $11.57 to $8.89) before the dividend changed, and another 15.9% from September 30, 2025 to June 30, 2026, while NAV fell 5.3% (our arithmetic). The 10-K puts the fiscal 2025 total return, on market price with distributions reinvested, at (13.64)%; the nine months to June 30, 2026 are (6.71)% against (2.77)% a year earlier. At the June 30 price the $0.9996 annual rate is 13.4% of price and 9.7% of NAV (our arithmetic). That is a statement about a past price, not a quote: the filings carry no later one, so check today’s price before using either number.

The nine-month NAV bridge in the 10-Q’s financial highlights explains where the dollars went. From $10.83 at September 30, 2025, NII added $0.79, net realized and unrealized losses took $0.46 and distributions took $0.90, which gives $10.26. For the same nine months a year earlier the lines were $11.31, plus $0.88, minus $0.34, minus $0.92, plus $0.03 from share issuance, giving $10.96. In the June quarter alone the company booked a $37.3 million realized gain and a $55.7 million net unrealized loss.

PSSL and PSSL II: the two joint ventures behind a fifth of the income

The part of PFLT that a ticker page cannot show is how much of it is not a portfolio of loans it holds directly. PFLT co-manages two unconsolidated joint ventures that buy loans it originates or holds, and it lends to them and owns their equity.

Three numbers matter for a PFLT shareholder. Income. In the June quarter PFLT earned $8.9 million of interest and $6.1 million of dividends from its controlled, affiliated investments, which are these two ventures and nothing else: $15.0 million, 22.7% of the $66.1 million of total investment income, against 17.8% a year earlier; over nine months it is 21.1% (our arithmetic). Size. The two ventures are $383.7 million at fair value, 15.3% of the portfolio and 37.7% of net assets. Where the loans come from. PFLT sold or saw repaid $1,041.2 million of investments in the nine months to June 30, 2026, and the earnings release says $226.5 million of that was sales to PSSL and $354.3 million sales to PSSL II: 55.8% (our arithmetic). The 10-Q describes the contributions to PSSL II as assets “at their most recent fair market value as of the date of the transaction.” The CEO’s comment in the August 10 release is that “The ramp of PSSL II continues on plan.”

The reason the equity is marked at 32.3% of cost is leverage. PSSL’s members’ equity was $60.2 million at June 30, 2026, and 87.5% of it is $52.7 million, which is exactly the fair value PFLT carries (our arithmetic). Against that equity PSSL has $843.5 million of third-party debt (the three CLO tranches at carrying value plus the credit facility), 2.54 times its $331.8 million of member notes plus equity (our arithmetic). Its loans are carried at $1,139.9 million against $1,177.8 million of cost, 96.8%, and in the nine months it recorded a $16.5 million realized loss and $18.8 million of net unrealized depreciation. The $37.9 million between cost and fair value on those loans is 63.0% of the $60.2 million of members’ equity that is left (our arithmetic). PSSL II is at an earlier stage: $226.0 million drawn on its facility against $124.5 million of member notes and equity, 1.82 times (our arithmetic), and equity marked at 98.8% of cost.

Where the $122.8 million of unrealized depreciation sits

The company reports net unrealized depreciation on investments of $122.8 million at June 30, 2026, against $46.1 million at September 30, 2025. The balance sheet splits it by control status.

The two joint ventures are 18.8% of cost and 90.2% of the gap (our arithmetic). The directly held book, which is where the non-accruals are, is carried at 99.4% of cost, and PFLT’s direct equity positions are above cost, $173.8 million of fair value against $145.0 million. That does not make the credits safe, and the gap is not the whole story of the last nine months. The 10-Q’s income statement shows net unrealized depreciation of $45.4 million on non-controlled, non-affiliated investments and $31.4 million on the line it labels “Non-controlled and controlled, affiliated investments,” which at both balance-sheet dates holds the two ventures only, in the nine months to June 30, 2026. So 59% of that change was in the loans PFLT holds directly and 41% in the affiliated line (our arithmetic). The ventures’ share of the gap is mostly older: at September 30, 2025 they were already $79.4 million below cost, while the directly held book was $33.3 million above it (our arithmetic). What the November 10-K shows for PSSL’s members’ equity is the number to watch.

Four non-accruals, and one loan marked at 31.5 cents

At June 30, 2026 four portfolio companies were on non-accrual, at 1.0% of the portfolio at cost and 0.4% at fair value (three companies, 0.4% and 0.2%, at September 30, 2025). The 10-Q schedule flags them with a footnote; the table lists every flagged line.

The six lines add to $26.9 million of cost, 1.0% of $2,627.4 million, and $12.0 million of fair value, or $11.0 million after the two unfunded-revolver marks, 0.4% of $2,504.7 million (our arithmetic). Kinetic alone is $19.9 million of cost and $6.3 million of fair value, 74% of the non-accrual cost. Non-accruals have moved between 0.1% and 2.2% of cost over the twelve quarters; the peak was March 31, 2025, with four companies at 2.2% of cost and 1.2% of fair value. PIK interest, which accrues income not yet paid in cash, is not a feature of this portfolio: $4.5 million in nine months, 2.2% of investment income (our arithmetic), among the lowest of the 36 BDCs in our census.

Debt: a facility, two notes and three CLOs

At June 30, 2026 PFLT had $1,586.9 million of debt principal (our sum) against $1,017.6 million of net assets. The company reports debt to equity of 1.56x and an asset coverage ratio of 164% (160% at September 30, 2025) against the 150% minimum that applies to BDCs.

Nothing is due before 2029. What changed in the fixed-rate layer is the price: the $185 million of 4.25% notes (4.15% effective) were repaid at maturity on April 1, 2026, and $305 million of notes at 6.75% and 7.375% now make up 19.2% of the debt principal (our arithmetic). The annualized weighted average cost of debt for the nine months to June 30, 2026 was 6.1% against 6.9% a year earlier; the 10-Q gives no quarter-only figure and no reason for the change. The facility was amended in April 2025 (pricing from SOFR + 225 to SOFR + 200, maturity extended to August 2030) and its commitments were raised from $718.0 million to $768.0 million in November 2025. PFLT also gave Goldman Sachs a non-recourse carve-out guaranty on the PSSL II facility: it covers events such as misconduct, fraud, improper asset transfers and, if a sponsor entity starts or colludes in an insolvency, the full amount of the obligations, up to the facility size, which was $150 million at signing (8-K, accession 0001193125-25-300797).

What the adviser is paid

PennantPark Investment Advisers receives a base fee of 1.00% a year of average adjusted gross assets, so it grows with borrowed assets, and an income incentive fee of 20% of pre-incentive NII with a hurdle of 1.75% a quarter of net assets (7.00% annualized) and a catch-up that runs to 2.9167% a quarter. The income counted includes accrued PIK, though PIK is small here.

On these figures the adviser received a fifth of all pre-incentive NII in a quarter in which NII per share was 90% of the amount declared. That is the formula working as written; it is a number to have in mind when reading “core NII”. The fee lines of the ventures are separate: neither PSSL nor PSSL II pays a management or incentive fee, only 0.25% a year to the Administrator. PFLT, its sister fund PNNT and two other PennantPark funds applied to the SEC on December 17, 2025 for an order to supersede the October 28, 2022 order that lets the group make joint investments.

What changed in fiscal Q3 2026 and what is next

In the quarter ended June 30, 2026: the $185 million of 4.25% notes were repaid (April 1); $105 million of 7.375% notes were issued (June 1), after $200 million of 6.75% notes in March; the monthly payment was lowered (June 2); NAV fell 2.0% to $10.26; no shares were issued; and a $37.3 million net realized gain (the CEO’s comment in the release points to a “meaningful realization” from an equity co-investment in a defense technology company) was more than offset by a $55.7 million net unrealized loss. Credit Facility borrowings fell from $683.9 million at September 30, 2025 to $318.3 million, and cash and equivalents were $100.8 million.

The next filing is the one for the fiscal year ended September 30, 2026. The October 6, 2026 release schedules it for Monday, November 23, 2026 after the close, with a conference call the next morning. In the last three years the 10-K came the day of the release (November 24, 2025), the day after (November 26, 2024) or three weeks after it (December 8, 2023). Monthly payments are declared in the first days of each month; the last three November declarations were on November 2, 2023, November 4, 2024 and November 4, 2025. The year-end 10-K is where PSSL’s members’ equity and the controlled-affiliate marks will next be visible.

What a holder or reader can do with this

This is a checklist built from the filings, not a recommendation.

• Check coverage against the new rate, not the old one. At $0.0833 a month the declared amount is $0.2499 a quarter; June-quarter NII of $0.26 covers it 104%. A move of two or three cents either way changes that, and the November 23 release will show it.
• Read the PSSL line next to the dividend line. The ventures are 22.7% of income and 90.2% of the gap between cost and fair value. Their dividends and the marks on the equity are the part of PFLT’s earnings that depends on someone else’s balance sheet.
• Do your own price-to-NAV check. The 10-Q has $7.48 against $10.26 at June 30. Today’s quote is not in any filing; compare it with the NAV the company reports on November 23.
• Know what the leverage does. Debt to equity is 1.56x and asset coverage 164%, against a 150% floor; interest and expenses on debt take 37.9% of investment income, and fees another 19.5%.
• Mind the tax paperwork. The 10-K reports the $1.23 declared in fiscal 2025 as ordinary income (including short-term gains); your Form 1099-DIV, not the monthly release, is what counts for your return.

If a large part of your savings or income sits in one BDC, a conversation with a qualified adviser about how it fits the rest of your holdings may be worth having.

FAQ

All figures are from PennantPark Floating Rate Capital Ltd.’s SEC filings (CIK 1504619) read on EDGAR on October 16, 2026: the earnings releases (Exhibit 99.1 to the 8-Ks) for the quarters ended September 30, 2023 to June 30, 2026 (accessions 0000950170-23-064197, 0001171843-24-000668, 0001171843-24-002668, 0001171843-24-004519, 0001171843-24-006559, 0001171843-25-000718, 0001171843-25-003083, 0001171843-25-005284, 0001171843-25-007542, 0001171843-26-000703, 0001171843-26-003158 and 0001171843-26-005387); the 38 monthly distribution releases of September 2023 to October 2026; the Forms 10-Q for December 2025, March 2026 and June 2026 (accessions 0001193125-26-042778, 0001193125-26-211880 and 0001193125-26-342352); the Forms 10-K for fiscal 2023, 2024 and 2025 (accessions 0000950170-23-068908, 0000950170-24-130666 and 0001193125-25-293672); the 8-Ks of April 22, August 13, September 2, November 26, 2025 (accession 0001193125-25-089204 for the first) and February 27, March 4, May 27 and June 1, 2026 (accessions 0000950170-25-108014, 0001171843-25-005676, 0001193125-25-300797, 0001193125-26-082897, 0001193125-26-091555, 0001193125-26-242195 and 0001193125-26-251718); the 8-K of October 6, 2026 (0001171843-26-006460); and the Form 40-APP of December 17, 2025 (0001193125-25-322955). Ratios, percentage changes, sums across lines and quarters, and shares of totals are our arithmetic. Core NII is the company’s non-GAAP measure. Prices are the period-end market prices in the 10-K and 10-Q financial highlights, not current quotes. This is analysis of public documents, not investment, legal or tax advice.