Carlyle Credit Income (CCIF) Q4 2024 earnings summary

Executive summary

• Maintained monthly dividend at $0.105 per share (15.16%–15.2% annualized) through February 2025, supported by core net investment income of $0.45 per share and $0.70 of recurring cash flows in Q4 2024.

• Net investment income per share was $0.30 and core net investment income per share was $0.45 for Q4 2024, with net asset value per share at $7.64 and total portfolio fair value at $173.5 million.

• Portfolio comprised 49 unique CLO investments managed by 27 different managers, diversified across 1,367 unique loan obligors, with a weighted average GAAP yield of 18.63%.

• Completed private placement of five-year, 7.125% convertible preferred shares and issued 1.4 million common shares above NAV, raising $22.2 million in net proceeds.

• Achieved strong Q4 and FY 2024 results, executing on strategic objectives since July 2023 transition to Carlyle as investment advisor.

Financial highlights

• Total investment income for Q4 2024 was $7.9 million ($0.55 per share), with net investment income of $4.2 million and net realized/unrealized losses of $0.8 million.

• Net income for the quarter was $3.5 million, and net assets stood at $117.6 million.

• Total fair value of investments reached $173.5 million as of September 30, 2024.

• Leverage (preferred shares to total assets) was 0.35x at quarter end, with no debt outstanding and preferred equity principal balance of $63.5 million.

• Cash-on-cash yield on CLO investments was 27.91%, with $0.70 of recurring cash flow.

Outlook and guidance

• Maintaining monthly dividend of $0.105 per share through February 2025, with recurring cash flows for Q1 2025 expected to be $0.72 per share.

• Remain constructive on the outlook for broadly syndicated loan and CLO asset classes, supported by a resilient U.S. economy, moderating inflation, and normalization of monetary policy.

• Expect continued strong CLO issuance and refinancing activity into the next quarter.

• Focus remains on identifying attractive CLO equity opportunities for shareholders as the Fund enters 2025.