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Kayne Anderson Energy Development Company (the “Company”)(NYSE: KED) today announced its financial results for the quarter ended August 31, 2011.
Net asset value: $22.01 per share
The Company declared a quarterly distribution of $0.38 per share
Net investment income: $0.3 million
Net realized gains: $2.3 million
Net unrealized losses: $7.3 million
RESULTS OF OPERATIONS – QUARTER ENDED AUGUST 31, 2011
Investment income totaled $2.9 million and consisted primarily of net dividends and distributions and interest income on the Company’s debt investments. The Company received $4.5 million of cash dividends and distributions, of which $2.9 million was treated as a return of capital during the period. During the quarter, the Company received $1.3 million of interest income, of which $0.4 million was paid-in-kind interest from ProPetro Services, Inc. (“ProPetro”). The Company also received $0.8 million of paid-in-kind dividends, of which $0.6 million was from VantaCore Partners LP (“VantaCore”). These paid-in-kind dividends are not included in investment income, but are reflected as an unrealized gain.
Operating expenses totaled $2.4 million, including $1.4 million of investment management fees; $0.5 million of interest expense and $0.5 million of other operating expenses. Interest expense included $0.1 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 income totaled $0.3 million and included a current income tax expense of $0.1 million and a deferred income tax expense of $0.1 million.
The Company had net realized gains from investments of $2.3 million, after taking into account a current income tax expense of $1.1 million and a deferred income tax expense of $0.1 million.
The Company had net unrealized losses of $7.3 million. The net unrealized loss consisted of $11.3 million of unrealized losses, primarily from investments in public MLPs and a deferred income tax benefit of $4.0 million.