Nuveen Churchill Direct Lending (NCDL) investor relations material

Executive summary

• Net investment income per share was $0.41 for Q2 2026, fully covering the $0.36 per share base distribution and exceeding the regular quarterly payout; a total third quarter distribution of $0.38 per share was declared, including a $0.02 supplemental.

• Net asset value per share declined to $17.19 as of June 30, 2026, from $17.50 at March 31, primarily due to realized and unrealized losses.

• Portfolio remains diversified with 244 companies across 26 industries, with 89.6% first-lien debt and top 10 holdings representing about 13% of fair value.

• Four new non-accruals were added, totaling $33.3 million at cost (2.7% of portfolio), with nine companies on non-accrual status representing up to 2.66% of investments at cost and 1.5% of fair value.

• A joint venture with an institutional partner was launched post-quarter-end, seeded with $148.9 million in first-lien loans and targeting $300 million in assets.

Financial highlights

• Total investment income for Q2 2026 was $44.3 million, down from $46.3 million in Q1 and $53.1 million year-over-year, mainly due to a smaller portfolio and lower yields.

• GAAP net income was $0.07 per share, down from $0.18 in Q1, reflecting $0.34 per share in net realized and unrealized losses.

• Gross originations were $12.1 million, and investment fundings $24.8 million, both down sharply from Q1.

• Sales and repayments totaled $67.5 million, with three full repayments totaling $59 million.

• Weighted average yield on debt and income-producing investments at cost was 9.3% as of June 30, 2026.

Outlook and guidance

• Management remains optimistic about the long-term outlook for private credit, citing strong credit metrics and structural advantages in the core middle market.

• Transaction activity picked up late in Q2 and into July, with expectations for a return to normalized deal flow.

• The joint venture is expected to ramp to $300 million in assets within 12 months, focusing on senior secured first-lien loans and accretive returns.

• Focus remains on reinvesting repayments into high-quality investments and maintaining a diversified portfolio.

• Management expects the joint venture and increased unsecured debt to be accretive to long-term earnings.