Carlyle Credit Income (CCIF) Q1 2025 earnings summary

Executive summary

• Maintained monthly dividend at $0.105 per share (16.4%–16.45% annualized) through May 2025, supported by core net investment income and recurring cash flows.

• Net investment income for Q1 2025 was $0.26 per share, with core net investment income at $0.44 per share and recurring cash flows of $0.70 per share.

• Net asset value per share was $7.44 at quarter end, with total investments at fair value of $177.9 million.

• Sold 1.37 million common shares via ATM program at a premium to NAV, generating $11 million in net proceeds and $0.03 per share NAV accretion.

• Completed private placement of $20 million convertible preferred shares in January 2025 to support investment activity.

Financial highlights

• Total investment income for Q1 2025 was $8.3 million ($0.52/share); total expenses were $4.2 million.

• Net income for the quarter was $1.1 million, after $3.0 million in net realized and unrealized losses.

• Portfolio weighted average GAAP yield was 17.2% as of December 31, 2024.

• Cash yield on CLO investments was 25.15% for the quarter.

• No debt outstanding at quarter end; preferred equity principal balance was $63.5 million.

Outlook and guidance

• Positive outlook for loan market and CLO equity through 2025, expecting resilience from borrowers despite recalibrated rate cut expectations.

• Dividend guidance maintained at $0.105 per share monthly through May 2025, supported by strong recurring cash flows.

• Estimated recurring cash flows per share for Q2 2025 expected to decrease to $0.49 due to refinancing activity.

• Continued focus on optimizing CLO investments through resets and refinancings to offset spread compression.