113 0 Kommentare Eagle Point Income Company Inc. Announces Third Quarter 2023 Financial Results

Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC, EICA, EICB) today announced financial results for the quarter ended September 30, 2023 and certain additional activity through October 31, 2023.

“We had an excellent third quarter across the board, as our net asset value increased significantly, our portfolio generated another quarter-over-quarter increase in cash flows and we further strengthened our balance sheet through a new fixed-rate preferred stock offering,” said Thomas P. Majewski, Chairman and Chief Executive Officer. “In the third quarter, we produced NII, excluding non-recurring expenses, of $0.51 per common share, once again in excess of common distributions paid, while growing our net asset value per share by over 8%. Given our continued confidence in the Company’s portfolio, last week we were pleased to announce an increase to our monthly common distribution by an additional 11%, the highest monthly common distribution amount in our history.”

THIRD QUARTER 2023 RESULTS

Net asset value (“NAV”) per common share of $14.08 as of September 30, 2023, an 8.3% increase compared to $13.00 as of June 30, 2023.
Net investment income (“NII”) of $0.38 per weighted average common share,¹ net of $0.13 per weighted average common share of non-recurring expenses.² This compared to $0.49 of NII per weighted average common share for the quarter ended June 30, 2023, and $0.40 of NII per weighted average common share for the quarter ended September 30, 2022.
GAAP net income (inclusive of unrealized mark-to-market gains) of $14.1 million, or $1.51 per weighted average common share.
Received $7.1 million in recurring cash distributions³ from the Company’s investment portfolio or $0.76 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 when excluding non-recurring expenses.
Deployed $50.8 million in net capital into collateralized loan obligation (“CLO”) and other investments.
As of September 30, 2023:
- The weighted average effective yield of the Company’s CLO debt and equity portfolio, based on amortized cost, was 13.27%. This compares to 12.31% as of June 30, 2023 and 12.77% as of September 30, 2022.⁴
- Weighted average expected yield of the Company’s portfolio, based on fair market value, was 17.91%. The compares to 19.98% as of June 30, 2023 and 19.15% as of September 30, 2022.⁴
Completed an underwritten public offering, including full exercise of the underwriters’ overallotment option, of $32.5 million in aggregate principal amount of 7.75% Series B Term Preferred Stock due 2028 (the “Series B Term Preferred Stock”), resulting in net proceeds to the Company of approximately $31.2 million.
Issued 983,412 shares of common stock and 15,556 shares of Series B Term Preferred Stock pursuant to the Company’s “at-the-market” offering program for total net proceeds of approximately $13.9 million. The common stock issuance resulted in $0.02 per share of NAV accretion for the quarter ended September 30, 2023.
As of September 30, 2023, 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 35.4% of total assets (less current liabilities).⁵
As of September 30, 2023, 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 1,404 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 5.6% of the loans underlying the Company’s CLO debt and equity portfolio.
GAAP net income was comprised of total investment income of $7.0 million, net unrealized appreciation on investments of $9.8 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 $3.4 million.
Recorded other comprehensive income of $0.4 million.