Alaris Releases 2025 Third Quarter Financial Results

Executive Summary

• Alaris Equity Partners reported record net book value of $25.10 per unit (up 10% YoY) driven by quarterly earnings of $1.90 per unit and a $0.34 per unit distribution.
• Total revenue and operating income rose ~8% YoY to C$74.9 M, supported by a C$47.9 M net unrealized gain on partner investments.
• Net distributable cash flow fell 26% YoY to C$37.4 M (‑$0.82 per unit) due to higher common distribution volatility and transaction costs, but underlying partner cash flows remained stable.

Key Details

• Net Book Value: $25.10 per unit (record high), +10.1% vs Q3 2024.
• Earnings per Unit: $1.90 (includes $0.41 FX recovery, offset by $0.34 distribution).
• Revenue & Operating Income: C$74.9 M (+7.8%) and C$? (operating income increase embedded in the 8% rise).
• Unrealized Gains: C$47.9 M net unrealized gain on partner investments (+45% YoY).
• Partner Revenue: C$58.1 M total, 2% above guidance; $57.4 M from distributions, $0.7 M third‑party fees.
• Net Distributable Cash Flow: C$37.4 M (‑25.9% YoY) → $0.82 per unit (‑26.1%).
• Payout Ratio: 41.4% for the quarter (up from 30.7%); 54.4% YTD (up from 46.5%).
• Distribution Yield (Preferred): ~12% annualized, unchanged materially YoY.
• Capital Deployment: $73.8 M deployed since Q2 2025; total YTD investments $228 M across new and existing partners.
• Unit Repurchases: 112,500 units repurchased in quarter (average $18.87), cumulative 465,000 units YTD, adding ~$0.06 per unit to NAV.
• Partner Coverage Ratio: Weighted average 1.5×; 14 of 21 partners >1.5×; 14 partners with ≤1.0× senior debt/EBITDA.
• Free Cash Flow After Distributions: $21.9 M (quarter), $38.9 M YTD.
• Outlook – Q4 2025: Expected partner revenue ≈ C$43.5 M; Run‑Rate Revenue $184 M, Run‑Rate Payout Ratio 65–70%, Run‑Rate Cash Flow $32 M.

Notable Quotes

“Our third‑quarter results highlight the continued strength and stability of our portfolio,” said Steve King, President & CEO.
“We remain focused on generating sustainable value through continued execution of our differentiated investment model…” – Steve King.