Nuveen Churchill Direct Lending (NCDL) Q1 2026 earnings summary

Executive summary

• Net investment income for Q1 2026 was $0.41 per share, down from $0.44 in Q4 2025, with a net increase in net assets from operations of $0.18 per share; NAV per share declined to $17.50 from $17.72 at year-end 2025.

• Portfolio consisted of $2.0 billion in fair value across 236 companies in 26 industries, with 89.7% in first-lien debt and top 10 holdings representing 13.2% of fair value.

• Paid a regular distribution of $0.36 and a supplemental distribution of $0.04 per share for Q1 2026; declared a Q2 distribution of $0.38 per share (regular $0.36, supplemental $0.02).

• Portfolio focused on U.S. middle market companies, primarily in defensive sectors such as healthcare and business services.

• Five portfolio companies were on non-accrual status, representing 0.6% of investments at fair value.

Financial highlights

• Total investment income for Q1 2026 was $46.3 million, down from $50 million in Q4 2025 and $53.6 million in Q1 2025, mainly due to lower base rates and tighter spreads.

• Net realized and unrealized losses totaled $(0.23) per share, contributing to a lower net increase in net assets.

• Gross originations were $82.9 million, with $85.4 million in gross investment fundings and $65 million in sales and repayments.

• Weighted average yield on debt and income-producing investments at cost declined to 9.31% from 9.48% at year-end 2025.

• Debt-to-equity ratio was 1.32x (net 1.26x) at quarter-end, up from 1.27x (net 1.2x) at year-end 2025.

Outlook and guidance

• Management expects stable earnings, supported by wider spreads on new originations and a "higher for longer" interest rate environment.

• Pipeline for new deals is strong, with increased M&A activity and opportunities to deploy capital into higher quality companies.

• Equity allocation may modestly increase to drive capital appreciation, but senior loans will remain the core focus.

• Management remains confident in the portfolio's strength and sees attractive opportunities amid market volatility.

• Focus continues on selectively investing in high-quality companies and maintaining an attractive dividend yield.