Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC,
EICA) today announced financial results for the quarter ended March
31, 2022, net asset value (“NAV”) as of March 31, 2022 and certain
additional activity through April 30, 2022.
FIRST QUARTER 2022 HIGHLIGHTS
- Net investment income (“NII”) and realized capital gains of
$0.33 per weighted average common share.1
- NAV per common share of $16.52 as of March 31, 2022.
- First quarter 2022 GAAP net loss (inclusive of unrealized
mark-to-market losses) of $0.8 million, or $0.12 per weighted
average common share.
- Weighted average effective yield of the Company’s
collateralized loan obligation (“CLO”) debt and equity portfolio,
based on amortized cost, was 11.34% as of March 31, 2022. Weighted
average expected yield of the Company’s CLO portfolio, based on
fair market value, was 12.45% as of March 31, 2022.2
- Deployed $5.1 million in net capital in the first quarter of
2022.
- Issued 111,622 shares of common stock and 121,649 shares of
Series A Term Preferred Stock pursuant to the Company’s
“at-the-market” offering program for total net proceeds of
approximately $4.8 million.
- Paid a special distribution to common stockholders of $0.20 per
share on January 24, 2022 to stockholders of record as of December
23, 2021.
- On February 14, 2022, declared a 4% increase in common stock
monthly distributions to $0.125 per share beginning with the
distribution paid on April 29, 2022.
SUBSEQUENT EVENTS
- NAV per common share estimated to be between $16.19 and $16.23
as of April 30, 2022.
- As of April 30, 2022, the Company had approximately $8.5
million of cash and capacity on its revolving credit facility
available for investment.
“We had a solid start to 2022, as we continued to generate
strong cash flows and opportunistically added to our portfolio,”
said Thomas Majewski, Chairman and Chief Executive Officer. “For
the quarter, we generated NII and realized capital gains of $0.33
per common share. Importantly, we expect that the approximate 100
basis point increase in LIBOR between January and April will be
materially positive for our portfolio’s CLO debt in the second
quarter and beyond as coupons increase. We remain confident in the
Company’s positioning and its continued ability to generate
attractive risk-adjusted returns.”
FIRST QUARTER 2022 RESULTS
The Company’s NII and realized capital gains for the quarter
ended March 31, 2022 was $0.33 per weighted average common share.
This compared to $0.14 of NII and realized capital gains per
weighted average common share for the quarter ended December 31,
2021 and $0.32 of NII and realized capital gains per weighted
average common share for the quarter ended March 31, 2021.
For the quarter ended March 31, 2022, the Company recorded GAAP
net loss of $0.8 million, or $0.12 per weighted average common
share. The net loss was comprised of total investment income of
$4.1 million and de minimis net realized gain on investments,
offset by unrealized depreciation (or unrealized mark-to-market
losses in the value of the Company’s investments and certain
liabilities at fair value) of $3.2 million and total expenses of
$1.7 million.
NAV as of March 31, 2022 was $115.6 million, or $16.52 per
common share, which is $0.24 lower than the Company’s NAV per
common share as of December 31, 2021, and $0.38 lower than the
Company’s NAV per common share as of March 31, 2021.
During the quarter ended March 31, 2022, the Company deployed
$5.1 million in net capital.
As of March 31, 2022, the weighted average effective yield on
the Company’s CLO debt and equity portfolio, based on amortized
cost, was 11.34%, compared to 10.77% as of December 31, 2021 and
9.53% as of March 31, 2021.
PORTFOLIO STATUS
As of March 31, 2022, on a look-through basis, and based on the
most recent CLO trustee reports received by such date, the Company
had indirect exposure to approximately 1,458 unique corporate
obligors. The largest look-through obligor represented 0.9% of the
Company’s CLO debt and equity portfolio. The top-ten largest
look-through obligors together represented 5.7% of the Company’s
CLO debt and equity portfolio.
As of March 31, 2022, the Company had outstanding borrowings
from the revolving credit facility and Series A Term Preferred
Stock which totaled approximately 34% of total assets (less current
liabilities). 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.
SECOND QUARTER 2022 PORTFOLIO ACTIVITY THROUGH APRIL 30, 2022
AND OTHER UPDATES
As of April 30, 2022, the Company had approximately $8.5 million
of cash and capacity on its revolving credit facility available for
investment.
As previously published on the Company’s website, management’s
estimate of the Company’s range of NAV per common share as of April
30, 2022 was $16.19 to $16.23.
DISTRIBUTIONS
The Company paid a monthly distribution of $0.125 per common
share on April 29, 2022 to stockholders of record as of April 11,
2022. Additionally, and as previously announced, the Company
declared distributions of $0.125 per share of common stock payable
on May 31, 2022, June 30, 2022, July 29, 2022, August 31, 2022 and
September 30, 2022 to stockholders of record as of May 11, 2022,
June 10, 2022, July 11, 2022, August 11, 2022 and September 12,
2022, respectively. The ability of the Company to declare and pay
distributions is subject to a number of factors, including the
Company’s results of operations.
The Company paid a monthly distribution of $0.104167 per share
of the Company’s Series A Term Preferred Stock on April 29, 2022 to
stockholders of record on April 11, 2022. The distribution
represented a 5.00% annualized rate, based on the $25 liquidation
preference per share for the Series A Term Preferred Stock.
Additionally, and as previously announced, the Company declared
distributions of $0.104167 per share on its Series A Term Preferred
Stock, payable on May 31, 2022, June 30, 2022, July 29, 2022,
August 31, 2022 and September 30, 2022 to stockholders of record as
of May 11, 2022, June 10, 2022, July 11, 2022, August 11, 2022 and
September 12, 2022, respectively.
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 specific tax
characteristics of the distributions will be reported to the
Company’s stockholders on Form 1099 after the end of the calendar
year.
SPECIAL DISTRIBUTION
For the Company’s tax year ended December 31, 2021, the Company
estimates taxable income will exceed the aggregate amount
distributed to common stockholders for the same time period. As a
result, the Company paid a special distribution of $0.20 per common
share on January 24, 2022 to stockholders of record as of December
23, 2021. The Company’s final taxable income and the actual amount
required to be distributed in respect of the tax year ended
December 31, 2021 will be finally determined when the Company files
its final tax returns.
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, 2022, as well as a portfolio update.
All interested parties may participate in the conference call by
dialing (877) 407-0789 (domestic) or (201) 689-8562
(international). Please reference Conference ID 13728805 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 24, 2022. To hear the replay, please dial
(844) 512-2921 (toll-free) or (412) 317-6671 (international). For
the replay, enter Conference ID 13728805.
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 financial statements
as of and for the period ended March 31, 2022. The Company has also
filed this report with the 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, 2022.
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 net investment income (“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 net asset value (“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 “Per weighted average common share” data are on a weighted
average basis 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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220524005521/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
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