Carlyle Secured Lending (CGBD) Q4 2024 earnings summary

Executive summary

• Net investment income per share was $0.47 in Q4 2024, unchanged from the prior quarter, with an annualized yield over 11% based on year-end NAV.

• Net asset value per share as of December 31, 2024, was $16.80, slightly down from $16.85 at September 30.

• Portfolio fair value reached $1.8 billion across 135 companies, with record deployment and a weighted average yield of 11.7%.

• A strategic merger with Carlyle Secured Lending III is expected to close after the March 26, 2025 stockholder meeting, aiming to increase scale, liquidity, and reduce costs.

• Declared a base dividend of $0.40 and a $0.05 supplemental dividend for Q1 2025, resulting in a 10.7% annualized yield on NAV.

Financial highlights

• Total investment income for Q4 2024 was $56.4 million, with net investment income of $24.2 million, or $0.47 per share.

• Net income for Q4 2024 was $20.5 million, up from $18.7 million in Q3 2024.

• Aggregate realized and unrealized net loss was about $4 million for the quarter.

• Annualized dividend coverage exceeded 100% for the past five years, with $1.43 per share in spillover income.

• Dividend for Q1 2025 set at $0.45 per share, with a base of $0.40 and a $0.05 supplemental dividend.

Outlook and guidance

• Focus remains on increasing origination activity, maintaining a diversified, high-quality portfolio, and leveraging the Carlyle network for recoveries.

• Management anticipates building on 2024 performance throughout 2025, with leverage within the target range and capacity for new investments.

• Dividend policy remains robust, with continued focus on high coverage and supplemental distributions.