Eagle Point Income Company Inc. Announces Fourth Quarter and Full Year 2023 Financial Results

Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC, EICA, EICB) today announced financial results for the quarter and full year ended December 31, 2023 and certain additional activity through February 15, 2024.

“Eagle Point Income Company capped off an outstanding 2023 with another quarter of strong cash flows and growing net assets,” said Thomas P. Majewski, Chairman and Chief Executive Officer. “During the quarter, we generated net income comfortably in excess of our common distributions. We grew our net asset value per share by over 2% for the quarter and 11% for the full year. We also recently increased our monthly common distribution beginning in January 2024 by an additional 11% to $0.20 per share. This is the highest monthly common distribution amount in our history. With many investors focused on ‘higher for longer’ rate scenarios, we believe the Company is very well positioned for a strong 2024.”

FOURTH QUARTER 2023 RESULTS

• Net asset value (“NAV”) per common share of $14.39 as of December 31, 2023, a 2.2% increase compared to $14.08 as of September 30, 2023.
• Net investment income (“NII”) less realized losses of $0.54 per weighted average common share,¹ net of $0.02 per weighted average common share of non-recurring expenses.² This is an increase from $0.38 of NII per weighted average common share for the quarter ended September 30, 2023, and $0.49 of NII per weighted average common share for the quarter ended December 31, 2022.
• GAAP net income (inclusive of unrealized mark-to-market gains) of $7.5 million, or $0.74 per weighted average common share.
• Received $9.3 million in recurring cash distributions³ from the Company’s investment portfolio or $0.91 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 $26.0 million in net capital into collateralized loan obligation (“CLO”) debt and equity and other investments.
• As of December 31, 2023:
  • The weighted average effective yield of the Company’s CLO debt and equity portfolio, based on amortized cost, was 13.29%. This compares to 13.27% as of September 30, 2023 and 12.82% as of December 31, 2022.⁴
  • Weighted average expected yield of the Company’s portfolio, based on fair market value, was 17.21%. This compares to 17.91% as of September 30, 2023 and 19.39% as of December 31, 2022.⁴
• Issued approximately 1 million shares of common stock and approximately 57,000 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 for total net proceeds of approximately $15.6 million. The common stock issuance resulted in $0.03 per share of NAV accretion for the quarter ended December 31, 2023.
• As of December 31, 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 35.9% of total assets (less current liabilities).⁵
• As of December 31, 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 1,419 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 $8.5 million and net unrealized appreciation on investments of $3.9 million, partially offset by financing costs and operating expenses of $3.0 million, net unrealized appreciation on certain liabilities recorded at fair value of $1.9 million and de minimis net realized capital losses on investments.
• Recorded other comprehensive income of $1.3 million.

FULL YEAR 2023 HIGHLIGHTS