Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC,
EICA, EICB, EICC) today announced financial results for the quarter
and full year ended December 31, 2024 and certain additional
activity through January 31, 2025.
“Our fourth quarter performance capped off another excellent
year for the Company. We continue to generate strong cash flows and
generated a return on equity of 21.0% for 2024,” said Thomas P.
Majewski, Chairman and Chief Executive Officer. “For the second
consecutive quarter, we generated $0.08 per share in realized
gains, harvesting gains from securities we purchased at a
discount.”
“Through prudent use of our ATM program, we captured $0.05 of
NAV accretion during the quarter and saw our common stock’s
quarterly average daily trading volume nearly tripled versus the
fourth quarter of 2023,” added Mr. Majewski. “While interest rates
have fallen since their peak last summer, we believe the Company is
well positioned to continue generating compelling risk-adjusted
returns over the longer term for our shareholders.”
FOURTH QUARTER 2024 RESULTS
- Net asset value (“NAV”) per common share of $14.99 as of
December 31, 2024, compared to $14.90 as of September 30,
2024.
- Net investment income (“NII”) and realized gains of $0.54 per
weighted average common share.1 This compares to $0.57 of NII and
realized gains per weighted average common share for the quarter
ended September 30, 2024, and $0.54 of NII less realized losses per
weighted average common share for the quarter ended December 31,
2023.
- GAAP net income (inclusive of unrealized mark-to-market
appreciation) of $15.0 million, or $0.76 per weighted average
common share.
- Received $16.1 million in recurring cash distributions2 from
the Company’s investment portfolio or $0.82 per weighted average
common share, modestly below the Company’s aggregate distributions
on its common stock and operating costs for the quarter.
- Deployed $90.5 million in gross capital into collateralized
loan obligation (“CLO”) debt and equity and other investments.
- As of December 31, 2024:
- The weighted average effective yield of the Company’s CLO debt
and equity portfolio, based on amortized cost, was 12.13%. This
compares to 11.86% as of September 30, 2024 and 13.29% as of
December 31, 2023.3
- Weighted average expected yield of the Company’s portfolio,
based on fair market value, was 12.95%. This compares to 12.87% as
of September 30, 2024 and 17.21% as of December 31, 2023.3
- Issued approximately 2.5 million shares of common stock,
161,972 shares of the Company’s 7.75% Series B Term Preferred Stock
due 2028 (the “Series B Term Preferred Stock”) and 325,136 shares
of the Company’s 8.00% Series C Term Preferred Stock due 2029 (the
“Series C Term Preferred Stock”) pursuant to the Company’s
“at-the-market” offering and committed equity finance programs for
total net proceeds to the Company of approximately $50.5 million.
The common stock issuance resulted in $0.05 per share of NAV
accretion for the quarter ended December 31, 2024.
- As of December 31, 2024, the Company had outstanding borrowings
from the Company’s revolving credit facility and preferred equity
securities which totaled approximately 29.8% of total assets (less
current liabilities).4
- As of December 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 1,451 unique corporate obligors.
- The largest look-through obligor represented 0.6% of the loans
underlying the Company’s CLO debt and equity portfolio.
- The top-ten largest look-through obligors together represented
5.3% of the loans underlying the Company’s CLO debt and equity
portfolio.
- GAAP net income was comprised of total investment income of
$13.6 million, net realized gain on investments of $1.6 million,
net unrealized appreciation on investments of $2.0 million and net
unrealized depreciation on certain liabilities recorded at fair
value of $2.5 million, partially offset by financing costs and
operating expenses of $4.7 million.
- Recorded other comprehensive loss of $2.4 million.
FULL YEAR 2024 HIGHLIGHTS
- For the fiscal year ended December 31, 2024, the Company
recorded GAAP net income of $41.6 million. Fiscal year GAAP net
income was comprised of total investment income of $46.3 million,
net realized gains on investments of $3.5 million and net
unrealized appreciation on investments of $8.2 million, partially
offset by financing costs and operating expenses of $16.2 million
and net unrealized appreciation on certain liabilities recorded at
fair value of $0.2 million.
- Recorded other comprehensive loss of $0.8 million.
- For the fiscal year ended December 31, 2024, the Company
received $52.3 million of recurring cash distributions from its
investment portfolio, or $3.30 per weighted average common
share.
FIRST QUARTER 2025 PORTFOLIO ACTIVITY THROUGH JANUARY 31,
2025 AND OTHER UPDATES
- As previously published on the Company’s website, management’s
estimate of the Company’s NAV per common share is between $14.96
and $15.06 as of January 31, 2025.
- Received $15.1 million of recurring cash distributions from the
Company’s investment portfolio. As of January 31, 2025, some of the
Company’s investments had not yet reached their payment date for
the quarter.
- Deployed $33.4 million of gross capital into CLO debt and
equity and other investments.
- As of January 31, 2025, the Company had $30.3 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, 5.00% Series A Term
Preferred Stock due 2026 (“Series A Term Preferred Stock”), Series
B Term Preferred Stock and Series C Term Preferred Stock.5
Security
Amount per
Share
Record Dates
Payable Dates
Common Stock
$0.20
February 10, 2025,
March 11, 2025
April 10, 2025,
May 12, 2025,
June 10, 2025
February 28, 2025,
March 31, 2025
April 30, 2025,
May 30, 2025
June 30, 2025
Series A Term Preferred Stock
$0.104167
Series B Term Preferred Stock
$0.161459
Series C Term Preferred Stock
$0.166667
The Company evaluates its ongoing common stock distributions
based on a number of factors, including cash flow generated from
the Company’s investment portfolio, GAAP earnings and the Company’s
requirement to distribute substantially all of its taxable income.
Each of these factors may vary based on changes in short-term
interest rates or other reasons.
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 and full year ended December 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 13750807 when
calling, and the Company recommends dialing in approximately 10 to
15 minutes prior to 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 March 21, 2025. To hear the replay, please dial
(844) 512-2921 (toll-free) or (412) 317-6671 (international). For
the replay, enter Conference ID 13750807.
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 2024 Annual Report, which
includes the Company’s audited consolidated financial statements
for the period ended December 31, 2024. 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 for the quarter and year ended
December 31, 2024. The Company has filed these reports with the
Securities and Exchange Commission (“SEC”).
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.
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 “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. 2 “Recurring cash
distributions” refers to the quarterly distributions received by
the Company from its CLO debt, CLO equity and other investments. 3
“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 2024 Annual Report for additional disclosures. 4 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. 5 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
US 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/20250220475126/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
Eagle Point Income (NYSE:EIC)
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