Alaris Releases 2025 Fourth Quarter Financial Results

Executive Summary

• Alaris Equity Partners Income Trust reported Q4 and full‑year 2025 results, showing total revenue and operating income up 15.9% YoY in Q4 and 14.0% for the year, driven by a $73.2 M net unrealized gain on Partner investments.
• Net book value per unit rose to $24.79 (+2.7% YoY), while the Trust declared a ~9% increase to the quarterly dividend to $0.37 per unit (annualized $1.48).
• The Trust issued $207 M of convertible debentures, extended its senior credit facility to September 2029, and repurchased 465,000 units for $8.8 M.

Key Details

• Revenue & Operating Income – Q4: $30,911 K (+15.9% YoY); FY 2025: $176,701 K (+14.0%).
• Net Book Value (NBV) per Unit – End‑2025: $24.79 (up $0.64 vs. 2024).
• Earnings from Operations – Q4 up 34.8% YoY; FY up 17.3% YoY, offset by a $20 M foreign‑exchange loss and the absence of a 2024 accounting transition gain.
• Net Distributable Cash Flow – Q4: $24,016 K (‑24.6% YoY); FY: $109,430 K (‑16.1%).
• Payout Ratio – Q4 64.2%; FY 56.6% (below the target range of 65–70%).
• Dividend Increase – Quarterly dividend raised ~9% to $0.37 per unit (annualized $1.48).
• Partner Revenue – Q4 total Partner revenue $45.8 M, exceeding guidance by 5%; FY Partner revenue $187.2 M (‑2.5%).
• Capital Deployment – Record $387.4 M invested in 2025 (incl. $115.5 M in Optimus; US$50.5 M across Renew & Cresa).
• Convertible Debentures – $207.0 M issued during the year to support investment activity and balance‑sheet flexibility.
• Unit Repurchase – 465,000 units repurchased at an average price of $18.87 per unit for total consideration of $8.8 M.
• Run‑Rate Outlook (next 12 months) – Revenue $200.1 M; Distributable cash flow $105.3 K; Run‑rate payout ratio expected 60–65%; Run‑rate cash flow $38.2 K.
• Conference Call – Management to discuss results on March 10, 2026 at 9:00 am MT (11:00 am ET).

Notable Quotes

“We closed the year with 23 private company partners after deploying $385 M of capital – both all‑time records… Our book value per share reached an all‑time high of $25.10 during the year.” – President, Alaris Equity Partners Income Trust

Materiality Assessment: Material – Positive (significant financial performance metrics and material corporate actions disclosed).