Nuveen Churchill Direct Lending (NCDL) Q2 2025 earnings summary

Executive summary

• Net investment income for Q2 2025 was $0.46 per share, down from $0.53 in Q1, exceeding the regular quarterly distribution of $0.45 per share.

• Net asset value (NAV) per share was $17.92 at June 30, 2025, slightly down from $17.96 at March 31, 2025.

• Portfolio remains focused on core U.S. middle market companies, primarily first lien debt, diversified across 207 companies and 26 industries.

• Completed a $100 million share repurchase program, buying back 5.9 million shares at a discount to NAV.

• Portfolio quality remained strong with a low non-accrual rate of 0.2% at fair value and no new non-accruals during the quarter.

Financial highlights

• Total investment income for Q2 2025 was $53.1 million, slightly down from $55.1 million in Q2 2024 and $53.6 million in Q1.

• Net increase in net assets from operations was $0.32 per share for Q2 2025, up from $0.29 in Q1.

• Net realized and unrealized losses were $0.14 per share, partially offset by a $0.09 per share benefit from share repurchases.

• Net expenses rose to $30.3 million from $24.1 million year-over-year, mainly due to higher interest, management, and incentive fees.

• Gross investment fundings were $81 million, with repayments totaling $52.6 million (full) and $12.5 million (partial).

Outlook and guidance

• Management expects to redeploy capital from repayments into traditional middle market transactions and remains focused on disciplined underwriting.

• The investment pipeline is robust, with deal flow rebounding in June and optimism for H2 2025.

• Earnings are expected to remain stable, supported by spillover income and a robust pipeline.

• Board declared a regular dividend of $0.45 per share payable in October 2025.