Carlyle Credit Income (CCIF) Q3 2024 earnings summary

Executive summary

• Maintained a $0.105 per share monthly dividend, annualized at 14.81%–16.49% based on August 20, 2024 share price and NAV, supported by $0.81 of recurring cash flows.

• Rotated portfolio into diverse CLO equity positions, achieving a 20.26% GAAP yield and no CLOs below a 3% overcollateralization cushion.

• Sourced $12.2 million in new CLO equity investments with a 19.49% yield during the quarter.

• Issued $52 million in preferred stock and sold 680,000 common shares via ATM program, raising $5.5 million.

• Net assets as of June 30, 2024, were $100,170,208, with total assets of $152,365,845 and total liabilities of $52,195,637.

Financial highlights

• Net investment income for Q3 2024 was $0.32 per share, with total investment income of $7.4 million ($0.58/share).

• Net asset value per share was $7.68 as of June 30, 2024, down from $7.88 in the prior quarter.

• Total fair value of investments reached $138.0 million as of June 30, 2024.

• Monthly total returns for the last three months were 1.68%, 7.29%, and -0.83%.

• Cash and cash equivalents at period end were $8,013,669.

Outlook and guidance

• Management expects CLO equity to remain attractive due to stable credit and manageable defaults, and remains optimistic about market opportunities for the remainder of 2024.

• Anticipates continued activity in CLO resets and refinancings, with ongoing dialogue with managers.

• Expects to increase use of loan accumulation facilities as primary market activity rises.

• Maintained monthly dividend of $0.1050 per share through November 2024.