Garrison Capital stockholder Clear Harbor Asset Management, owning approximately 1.25% of the company's outstanding common stock, has delivered a letter to the Board of Directors expressing its concerns with the company's "persistent underperformance". Clear Harbor states that "despite considerable effort to work constructively with the company to address the concerns facing Garrison Capital, the Board has failed to take substantive steps to improve company performance and refuses to hold management accountable for its repeated failures". The letter states, among other things: "(...) Since 2015, book value per share has fallen from $13.98 to $10.30.(...) This abysmal performance is occurring in what is by nearly all measures a historically benign credit environment. (...) Furthermore, Garrison has not covered its dividend payments from operating income. (...) In the last 12 months, Garrison stock is down 4% on a total return basis while the index of US Investment Companies is up 11%. (...) the logical path for Garrison at this point is an orderly liquidation. We believe stockholders have suffered enough and deserve to at least recover the difference between the market price of the stock and liquidation value. We recommend that a new, highly qualified independent investment advisor with liquidation expertise be appointed to oversee this process. (...) we are highly skeptical that a strategic transaction for Garrison can provide greater stockholder value than an orderly liquidation. (...) We believe the Board's inaction and unwillingness to hold management and its external manager accountable for the Company's continued poor performance is a clear breach of the Board's fiduciary duties. Based on the Company's frustrating lack of response and meaningful action to date, we are evaluating all options to protect the interests of stockholders.(...)"
Garrison Capital announced its financial results for the second quarter and three months ended June 30, 2019. Net investment income for the second quarter was $3.5 million, or $0.22 per share, and the net increase in net assets resulting from operations was $1.4 million, or $0.09 per share. The third quarter dividend of $0.23 per share is payable on September 20, 2019 to stockholders of record as of September 6, 2019.