(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the fiscal year ended November 30, 2010.
- Net asset value: $20.56 per share; up $3.98 per share during fiscal 2010 (24% increase)
- The Company declared a quarterly distribution of $0.30 per share
- Net investment loss for fiscal 2010: $1.8 million
- Net realized gains for fiscal 2010: $7.6 million
- Net unrealized gains for fiscal 2010: $47.4 million
RESULTS OF OPERATIONS – FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2010
Investment income totaled $4.7 million and consisted primarily of interest income on the Company’s debt investments and net dividends and distributions. The Company received $10.6 million of cash dividends and distributions, of which $9.5 million was treated as a return of capital during the period. For fiscal 2010, the Company estimated the return of capital portion of cash dividends and distributions received to be $8.5 million, or 80%. This amount was increased by $1.0 million attributable to 2009 tax reporting information for the Company’s portfolio investments that was received during fiscal 2010. The Company received $5.4 million of paid-in-kind dividends during the fiscal year, of which $5.1 million was from Direct Fuels Partners, L.P. (“Direct Fuels”). These payment-in-kind dividends are not included in investment income but are reflected as an unrealized gain.Operating expenses totaled $7.5 million, including $4.0 million of investment management fees; $1.7 million of interest expense and $1.8 million of other operating expenses. Interest expense included $0.5 million of amortization of debt issuance costs. Investment management fees were equal to an annual rate of 1.75% of average total assets. The Company’s net investment loss totaled $1.8 million and included a deferred income tax benefit of $1.0 million.