Cion Investment (CION) Q2 2024 earnings summary

Executive summary

• Net investment income for Q2 2024 was $0.43 per share ($22.96 million), with earnings per share at $0.42 and NAV per share rising to $16.08 from $16.05 sequentially, driven by out-earning distributions and share repurchases below NAV.

• Total investments at fair value reached $1.91 billion across 107 portfolio companies in 24 industries, with 85.1% in senior secured loans and 84.3% in first lien investments.

• Q2 saw a net increase of $70 million in funded portfolio, with $137 million in new commitments and $77 million in sales/repayments.

• Non-accrual investments represented 1.36% of portfolio fair value, up from 0.86% in Q1 2024.

• Announced a Q3 2024 base distribution of $0.36 per share, payable September 17, 2024.

Financial highlights

• Total investment income for Q2 2024 was $61.4 million, down from $73.6 million in Q1 2024 but up from $58.50 million in Q2 2023.

• Net investment income was $23.0 million, compared to $32.6 million in the prior quarter.

• Net realized losses on investments for Q2 2024 were $20.28 million, with net change in unrealized appreciation at $19.69 million.

• Net increase in net assets from operations was $22.4 million for Q2 2024.

• Paid total Q2 distributions of $0.41 per share, including a $0.36 base and $0.05 supplemental distribution.

Outlook and guidance

• Management expects to maintain RIC status and continue quarterly distributions, with a Q3 2024 base distribution of $0.36 per share declared.

• Amended and extended senior secured credit facility, reducing cost of capital and increasing flexibility for future growth.

• Liquidity and capital resources are considered adequate for near-term investing and financing activities, with $175 million available under secured financing as of June 30, 2024.