(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the quarter ended August 31, 2010.
RESULTS OF OPERATIONS – QUARTER ENDED AUGUST 31, 2010
- The Company announced a quarterly distribution of $0.30 per share
- Net asset value: $19.14 per share
- Net investment loss: $0.2 million
- Net realized gains: $0.04 million
- Net unrealized gains: $26.4 million
Investment income totaled $1.5 million and consisted primarily of interest income on the Company’s energy debt investments and net dividends and distributions. The Company received $2.7 million of cash dividends and distributions during the period, of which $2.1 million was treated as a return of capital. During the quarter, Direct Fuels Partners, L.P. (“Direct Fuels”) paid the Company $1.3 million of preferred unit distributions (in lieu of a cash distribution), which is not included in investment income but is reflected as an unrealized gain.
Operating expenses totaled $1.9 million, including $1.0 million of base investment management fees, $0.5 million for interest expense, of which $0.1 million relates to the amortization of debt issuance costs and $0.4 million for other operating expenses. Management fees were equal to an annual rate of 1.75% of average total assets.
The Company’s net investment loss totaled $0.2 million and included a deferred income tax benefit of $0.1 million.
The Company had net realized gains from its investments of $0.04 million.
The Company had net unrealized gains of $26.4 million, which consisted of $41.6 million of unrealized gains from investments and $15.2 million of deferred income tax expense. The majority of these gains are attributable to our investment in International Resource Partners LP (“IRP”), which increased by $35.3 million (90% increase) during the quarter.
The Company had an increase in net assets resulting from operations of $26.2 million. This increase is composed of a net investment loss of $0.2 million, net realized gains of $0.04 million, and net unrealized gains of $26.4 million as noted above.