Allied Capital 3Q net investment income rises

But results missed analyst estimates, and shares of the company lost 50 cents, or 6.8 percent, to $6.80 in premarket activity.

For the period ended Sept. 30, the company recorded net investment income, or income excluding net realized and unrealized gains and losses, of $45.6 million, or 26 cents per share. That compares with $18.3 million, or 12 cents per share, in the year-ago period.

Analysts polled by Thomson Reuters, on average, expected net income of 35 cents per share in the quarter. Analyst estimates typically exclude special items.

Including net realized gains and unrealized depreciation, Allied Capital lost $318.3 million, or $1.78 per share, compared with a loss of $96.5 million, or 63 cents per share, in the same quarter a year earlier.

The bulk of growth in net interest income came from increases in interest and dividend payments. Allied Capital generated $112.2 million in interest and dividends from its investments during the third quarter, compared with $105.7 million during the same quarter last year.

A decrease in operating expenses also helped boost net investment income. Total operating expenses decreased 18 percent to $73 million from $88.9 million in the third quarter of 2007.