Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC,
EICA, EICB, EICC) today announced financial results for the quarter
ended March 31, 2024 and certain additional activity through April
30, 2024.
“It was another excellent quarter for Eagle Point Income
Company, as the portfolio continued to generate strong cash flows
and income for our shareholders,” said Thomas P. Majewski, Chairman
and Chief Executive Officer. “For the quarter, we generated net
investment income and realized gains of $0.56 per share, while also
growing our net asset value per share by over 5% from year-end
2023. We also significantly strengthened our balance sheet,
utilizing our ‘at-the-market’ program to accretively issue shares
of common stock at a premium to net asset value. In addition, we
successfully issued our new 8.00% Series C Term Preferred Stock due
2029, providing us with net proceeds of $34 million.”
“We were also honored to be named last week by Creditflux as
their Best Public Closed-End CLO Fund for 2023,1 a testament to our
entire team’s relentless efforts. Moving ahead, we remain well
positioned in this elevated rate environment to deploy capital
opportunistically into new CLO debt and equity investments in order
to generate additional, sustainable net investment income,”
concluded Mr. Majewski.
FIRST QUARTER 2024 RESULTS
- Net asset value (“NAV”) per common share of $15.12 as of March
31, 2024, a 5.1% increase compared to $14.39 as of December 31,
2023.
- Net investment income (“NII”) and realized gains of $0.56 per
weighted average common share.2 This is an increase from $0.54 of
NII less realized losses per weighted average common share for the
quarter ended December 31, 2023, and $0.49 of NII per weighted
average common share for the quarter ended March 31, 2023.
- GAAP net income (inclusive of unrealized mark-to-market gains)
of $17.0 million, or $1.40 per weighted average common share.
- Received $10.7 million in recurring cash distributions3 from
the Company’s investment portfolio or $0.88 per weighted average
common share, which was in excess of the Company’s aggregate
distributions on its common stock and operating costs for the
quarter.
- Deployed $45.1 million in net capital into collateralized loan
obligation (“CLO”) debt and equity and other investments.
- As of March 31, 2024:
- The weighted average effective yield of the Company’s CLO debt
and equity portfolio, based on amortized cost, was 13.28%. This
compares to 13.29% as of December 31, 2023 and 12.28% as of March
31, 2023.4
- Weighted average expected yield of the Company’s portfolio,
based on fair market value, was 15.35%. This compares to 17.21% as
of December 31, 2023 and 18.80% as of March 31, 2023.4
- Issued approximately 1.9 million shares of common stock and
approximately 113,600 shares of the Company’s 7.75% Series B Term
Preferred Stock due 2028 (the “Series B Term Preferred Stock”)
pursuant to the Company’s “at-the-market” offering program. The
common stock issuance resulted in $0.05 per share of NAV accretion
for the quarter ended March 31, 2024.
- As of March 31, 2024, the Company’s aggregate indebtedness and
preferred equity securities (including outstanding borrowings from
the revolving credit facility, the Company’s 5.00% Series A Term
Preferred Stock due 2026 (the “Series A Term Preferred Stock”) and
Series B Term Preferred Stock) totaled approximately 32.7% of total
assets (less current liabilities).5
- As of March 31, 2024, on a look-through basis, and based on the
most recent CLO trustee reports received by such date:
- The Company, through its CLO investments, had indirect exposure
to approximately 1,414 unique corporate obligors.
- The largest look-through obligor represented 0.7% of the loans
underlying the Company’s CLO debt and equity portfolio.
- The top-ten largest look-through obligors together represented
5.4% of the loans underlying the Company’s CLO debt and equity
portfolio.
- GAAP net income was comprised of total investment income of
$9.1 million, net unrealized appreciation on investments of $9.5
million, net realized gain on investments of $0.2 million and net
unrealized depreciation on certain liabilities recorded at fair
value of $0.7 million, partially offset by financing costs and
operating expenses of $2.5 million.
- Recorded other comprehensive loss of $1.4 million.
SECOND QUARTER 2024 PORTFOLIO ACTIVITY THROUGH APRIL 30, 2024
AND OTHER UPDATES
- In April 2024, the Company completed an underwritten public
offering of $35.0 million in aggregate principal amount of its
8.00% Series C Term Preferred Stock due April 2029 (the “Series C
Term Preferred Stock”), resulting in net proceeds to the Company of
approximately $33.6 million.
- As previously published on the Company’s website, management’s
estimate of the range of the Company’s NAV per common share is
estimated to be between $15.16 and $15.26 as of April 30, 2024. At
the midpoint of the range, this represents a modest increase from
March 31, 2024.
- Received $11.7 million of recurring cash distributions from the
Company’s investment portfolio. As of April 30, 2024, some of the
Company’s investments had not yet reached their payment date for
the quarter.
- Issued approximately 850,000 shares of common stock and
approximately 30,000 shares of the Company’s Series B Term
Preferred Stock pursuant to the Company’s “at-the-market” offering
program for total net proceeds of $14.0 million.
- Deployed $23.6 million of net capital into CLO debt and CLO
equity investments.
- As of April 30, 2024, the Company had $38.1 million of cash and
capacity on its revolving credit facility available for
investment.
DISTRIBUTIONS
As previously announced, the Company has declared the following
monthly distributions on its common stock, Series A Term Preferred
Stock, Series B Term Preferred Stock and Series C Term Preferred
Stock.6
Security
Amount per Share
Record Dates
Payable Dates
Common Stock
$0.20
May 13, 2024,
June 10, 2024,
July 11, 2024,
August 12, 2024,
September 10, 2024
May 31, 2024,
June 28, 2024,
July 31, 2024,
August 30, 2024,
September 30, 2024
Series A Term Preferred Stock
$0.104167
May 13, 2024,
June 10, 2024,
July 11, 2024,
August 12, 2024,
September 10, 2024
May 31, 2024,
June 28, 2024,
July 31, 2024,
August 30, 2024,
September 30, 2024
Series B Term Preferred Stock
$0.161459
May 13, 2024,
June 10, 2024,
July 11, 2024,
August 12, 2024,
September 10, 2024
May 31, 2024,
June 28, 2024,
July 31, 2024,
August 30, 2024,
September 30, 2024
Series C Term Preferred Stock
$0.166667
May 13, 2024,
June 10, 2024,
July 11, 2024,
August 12, 2024,
September 10, 2024
May 31, 2024,
June 28, 2024,
July 31, 2024,
August 30, 2024,
September 30, 2024
CONFERENCE CALL
The Company will host a conference call at 11:30 a.m. (Eastern
Time) today to discuss the Company’s financial results for the
quarter ended March 31, 2024, as well as a portfolio update.
All interested parties may participate in the conference call by
dialing (877) 704-4453 (domestic) or (201) 389-0920
(international). Please reference Conference ID 13745704 when
calling and you are invited to dial in approximately 10 to 15
minutes prior to the start of the call.
A live webcast will also be available on the Company’s website
(www.eaglepointincome.com). Please go to the Investor Relations
section at least 15 minutes prior to the call to register, download
and install any necessary audio software.
An archived replay of the call will be available shortly
afterwards until June 21, 2024. To hear the replay, please dial
(844) 512-2921 (toll-free) or (412) 317-6671 (international). For
the replay, enter Conference ID 13745704.
ADDITIONAL INFORMATION
The Company has made available on the investor relations section
of its website, www.eaglepointincome.com (in the financial
statements and reports section), its unaudited consolidated
financial statements as of and for the period ended March 31, 2024.
The Company has also filed this report with the U.S. Securities and
Exchange Commission (“SEC”). The Company also published on its
website (in the presentations and events section) an investor
presentation, which contains additional information about the
Company and its portfolio as of and for the quarter ended March 31,
2024.
ABOUT EAGLE POINT INCOME COMPANY
The Company is a diversified, closed-end management investment
company. The Company’s primary investment objective is to generate
high current income, with a secondary objective to generate capital
appreciation, by investing primarily in junior debt tranches of
CLOs. In addition, the Company may invest up to 35% of its total
assets (at the time of investment) in CLO equity securities. The
Company is externally managed and advised by Eagle Point Income
Management LLC.
The Company makes certain unaudited portfolio information
available each month on its website in addition to making certain
other unaudited financial information available on its website
(www.eaglepointincome.com). This information includes (1) an
estimated range of the Company’s NII and realized capital gains or
losses per share of common stock for each calendar quarter end,
generally made available within the first fifteen days after the
applicable calendar month end, (2) an estimated range of the
Company’s NAV per share of common stock for the prior month end and
certain additional portfolio-level information, generally made
available within the first fifteen days after the applicable
calendar month end and (3) during the latter part of each month, an
updated estimate of NAV, if applicable, and, with respect to each
calendar quarter end, an updated estimate of the Company’s NII and
realized capital gains or losses per share for the applicable
quarter, if available.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described in the
prospectus and the Company’s other filings with the SEC. The
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the
date of this press release.
1 The award was won by the Company on May 15, 2024 as part of
Creditflux’s CLO Manager Awards. Public closed-end funds were
judged using the change in value of the fund over the year
accounting for share issuance and distributions. The Company’s
Adviser submitted the Company’s nomination for this award.
2 “Per weighted average common share” is based on the average
daily number of shares of common stock outstanding for the period
and “per share” refers to per share of the Company’s common
stock.
3 “Recurring cash distributions” refers to the quarterly
distributions received by the Company from its CLO debt, CLO equity
and other investments.
4 “Weighted average effective yield” is based on an investment’s
amortized cost whereas “weighted average expected yield” is based
on an investment’s fair market value as of the applicable period
end as disclosed in the Company’s financial statements, which is
subject to change from period to period. Please refer to the
Company’s quarterly unaudited financial statements for additional
disclosures.
5 Over the long-term, management expects the Company to operate
under normal market conditions generally with leverage between 25%
and 35% of total assets (less current liabilities). Based on
applicable market conditions at any given time, or should
significant opportunities present themselves, the Company may incur
leverage in excess of this amount, subject to applicable regulatory
and contractual limits.
6 The ability of the Company to declare and pay distributions on
stock is subject to a number of factors, including the Company’s
results of operations. Distributions on stock are generally paid
from net investment income (regular interest and dividends) and may
also include capital gains and/or a return of capital. The actual
components of the Company’s distributions for U.S. tax reporting
purposes can only be finally determined as of the end of each
fiscal year of the Company and are thereafter reported on Form
1099-DIV.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240521681112/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
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