SOURCE CAPITAL /DE/ (SOR) Company Report

Source Capital's Discount Management Program for 2025 will not result in a tender offer because the Fund traded at an average discount to Net Asset Value (NAV) of less than 10% during the measurement period, and even traded at a premium during the fourth quarter, peaking at 1.20% premium to NAV on November 28, 2025.
The Board of Trustees extended the Discount Management Program through December 31, 2027, which includes a contingent tender offer for 10% of outstanding shares at 98% of NAV per share if the average discount exceeds 10% during the 2027 measurement period.
As of December 31, 2025, 21.7% of NAV was invested in private credit, with the combined invested and committed capital to private credit totaling approximately 25.9% of NAV.
The Fund will host an investor call on February 26, 2026, at 1pm PST.

8 days ago

Source Capital Announces 2025 Dividend Tax Treatment and Deemed Distribution

SOR

Dividends

Accounting Changes

New Projects/Investments

Source Capital announced the U.S. federal income tax treatment for its 2025 dividends and a $2.50739554 deemed distribution per share for shareholders of record as of December 31, 2025.
The total 2025 dividends paid per share amounted to $2.499600, comprising $1.798464 in Ordinary Income Dividends and $0.701136 in Long-Term Capital Gain Distributions.
The deemed distribution allows the Fund to retain capital for future investment opportunities and growth, with shareholders receiving a tax credit for the 21% U.S. federal income tax paid by the Fund on the undistributed gains.
Shareholders will increase their adjusted tax basis in their stock by $1.98084248 per share as a result of the deemed distribution.

Jan 28, 2026, 11:32 PM

Source Capital Announces 2025 Dividend Tax Treatment and Deemed Distribution

SOR

Dividends

Accounting Changes

New Projects/Investments

Source Capital announced the U.S. federal income tax treatment for its 2025 dividends and a $2.50739554 deemed distribution to shareholders of record as of December 31, 2025.
For 2025, the total dividends paid per share amounted to $2.499600, comprising $1.798464 in ordinary income dividends and $0.701136 in long-term capital gain distributions.
The deemed distribution signifies that the Fund retained net capital gains, paying a 21% corporate-level U.S. federal income tax on these gains.
Shareholders are deemed to have received a capital gain dividend, will receive a tax credit, and will increase their adjusted tax basis in their shares by $1.98084248 per share.
This strategy was adopted by the Board of Trustees to retain capital for future investment opportunities and to support the Fund's net asset value growth.

Jan 28, 2026, 10:00 PM

Source Capital Updates Discount Management Program and Private Credit Allocations

SOR

Share Buyback

New Projects/Investments

The 2025 tender offer under Source Capital's Discount Management Program will not occur as the Fund traded at an average discount to net asset value (NAV) of less than 10% during the measurement period, peaking at a 1.20% premium to NAV on November 28, 2025.
The Board has extended the Discount Management Program through December 31, 2027, including contingent tender offers for both calendar year 2026 and 2027. For 2027, a tender offer for 10% of outstanding shares at 98% of NAV will be conducted if the average discount to NAV exceeds 10%.
As of December 31, 2025, Source Capital had 21.7% of its NAV invested in private credit, with combined invested and committed capital totaling 25.9% of NAV.
The Fund will also continue to implement its Stock Repurchase Program to repurchase shares at prices accretive to shareholders.