Carlyle Credit Income (CCIF) investor relations material

Executive summary

• CLO equity class faced challenges in 2025 and early 2026 due to loan repricings, bearish sentiment, and a more challenging market, but credit fundamentals remained strong and default rates declined.

• Portfolio optimization included accretive refinancings, resets, and defensive positioning with experienced CLO managers, enhancing future cash flow potential.

• Annualized cash-on-cash yield for underlying CLO investments was 22.67% for the quarter, generating $0.48 of recurring cash flows.

• Net investment income per share was $0.09 in Q1 2026, down from $0.15 in the prior quarter due to interest expense from preferred share redemption.

• Adjusted net investment income per share was $0.17, and core net investment income per share was $0.32, fully covering the reduced monthly dividend.

Financial highlights

• Total investment income for Q1 2026 was $7.1 million ($0.34 per share); total expenses were $5.2 million, resulting in net investment income of $2.0 million.

• Net realized and unrealized losses totaled $15.7 million, leading to a net loss of $13.7 million for the quarter.

• Recurring cash flows per share were $0.48, supporting the dividend.

• Total fair value of the investment portfolio was $181.8 million, with 54 CLO holdings.

• Net asset value per share was $5.17 as of December 31, 2025.

Outlook and guidance

• Monthly dividend of $0.06 per share declared through May 2026, representing a 20.00% annualized yield based on share price as of February 23, 2026.

• Dividend guidance maintained, supported by core net investment income and recurring cash flows.

• Expect continued refinancing and reset activity to capitalize on tight CLO liability spreads.

• Loan supply anticipated to remain elevated in H1 2026, supporting wider loan spreads.

• Emphasis on disciplined underwriting, strong CLO managers, and prudent capital management.