Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC,
EICA) today announced financial results for the quarter ended June
30, 2022, net asset value (“NAV”) as of June 30, 2022 and certain
additional activity through July 31, 2022.
SECOND QUARTER 2022 HIGHLIGHTS
- Net investment income (“NII”) and realized capital gains of
$0.41 per weighted average common share.1
- NAV per common share of $13.66 as of June 30, 2022.
- GAAP net loss (inclusive of unrealized mark-to-market losses)
of $17.9 million, or $2.56 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 12.08% as of June 30, 2022. Weighted
average expected yield of the Company’s CLO portfolio, based on
fair market value, was 16.22% as of June 30, 2022.2
- Deployed $5.9 million in gross capital and received $5.7
million in recurring cash distributions3 from the Company’s
investment portfolio.
SUBSEQUENT EVENTS
- NAV per common share estimated to be between $14.18 and $14.22
as of July 31, 2022.
- As of July 31, 2022, the Company had approximately $7.0 million
of cash and capacity on its revolving credit facility available for
investment.
- On August 11, 2022, declared a 12% increase in common stock
monthly distributions to $0.14 per share beginning with the
distribution paid on October 31, 2022.
“The rising rate environment had a materially positive impact on
our cash flows in the quarter,” said Thomas Majewski, Chairman and
Chief Executive Officer. “For the quarter, we generated NII and
realized capital gains of $0.41 per common share, comfortably
exceeding our common distributions. The 184 basis point increase in
LIBOR between April and July will increase the anticipated cash
flows from our CLO debt securities as coupons increase. Given our
confidence in the Company’s future outlook, we were pleased last
week to increase our monthly common distributions by 12% to $0.14
per share. We remain well positioned to generate attractive
risk-adjusted returns over the long term.”
SECOND QUARTER 2022 RESULTS
The Company’s NII and realized capital gains for the quarter
ended June 30, 2022 was $0.41 per weighted average common share.
This compared to $0.33 of NII and realized capital gains per
weighted average common share for the quarter ended March 31, 2022
and $0.28 of NII and realized capital gains per weighted average
common share for the quarter ended June 30, 2021.
For the quarter ended June 30, 2022, the Company recorded a GAAP
net loss of $17.9 million, or $2.56 per weighted average common
share. The net loss was comprised of total investment income of
$4.4 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 $20.8 million and total expenses of
$1.5 million.
NAV as of June 30, 2022 was $95.6 million, or $13.66 per common
share, which is $2.86 lower than the Company’s NAV per common share
as of March 31, 2022, and $3.72 lower than the Company’s NAV per
common share as of June 30, 2021.
During the quarter ended June 30, 2022, the Company deployed
$5.9 million in gross capital.
During the quarter ended June 30, 2022, the Company received
$5.7 million of recurring cash distributions from its investment
portfolio, or $0.81 per weighted average common share, which was
well in excess of the Company’s aggregate distributions on its
common stock and operating costs for the quarter.
As of June 30, 2022, the weighted average effective yield on the
Company’s CLO debt and equity portfolio, based on amortized cost,
was 12.08%, compared to 11.34% as of March 31, 2022 and 9.56% as of
June 30, 2021.
PORTFOLIO STATUS
As of June 30, 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 1,465 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 5.9% of the Company’s
CLO debt and equity portfolio.
As of June 30, 2022, the Company had outstanding borrowings from
the revolving credit facility and Series A Term Preferred Stock
which totaled approximately 39% 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.
THIRD QUARTER 2022 PORTFOLIO ACTIVITY THROUGH JULY 31, 2022
AND OTHER UPDATES
As of July 31, 2022, the Company had approximately $7.0 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 July
31, 2022 was $14.18 to $14.22.
DISTRIBUTIONS
The Company paid a monthly distribution of $0.125 per common
share on July 29, 2022 to stockholders of record as of July 11,
2022. Additionally, and as previously announced, the Company
declared distributions of $0.125 per share of common stock payable
on August 31, 2022 and September 30, 2022 to stockholders of record
as of August 11, 2022 and September 12, 2022, respectively; and
distributions of $0.14 per share of common stock payable on October
31, 2022, November 30, 2022 and December 30, 2022 to stockholders
of record as of October 11, 2022, November 10, 2022 and December
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 July 29, 2022 to
stockholders of record on July 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 August 31, 2022, September 30, 2022, October 31,
2022, November 30, 2022 and December 30, 2022 to stockholders of
record as of August 11, 2022, September 12, 2022, October 11, 2022,
November 10, 2022 and December 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.
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 June 30, 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 13730770 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 September 16, 2022. To hear the replay, please
dial (844) 512-2921 (toll-free) or (412) 317-6671 (international).
For the replay, enter Conference ID 13730770.
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 semiannual stockholder report
for the period ended June 30, 2022 (which includes the Company’s
unaudited consolidated financial statements as of and for the
period ended June 30, 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 June 30, 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.
Source: Eagle Point Income Company Inc.
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. 3 “Recurring cash
distributions” refers to the quarterly distributions received by
the Company from its CLO debt and equity investments.
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version on businesswire.com: https://www.businesswire.com/news/home/20220816005408/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
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