Carlyle Credit Income (CCIF) Q2 2026 earnings summary

Executive summary

• CLO equity market faced volatility from repricing, AI-related loan concerns, and geopolitical events, but underlying credit fundamentals remained resilient and the portfolio was highly diversified, with over 1,850 underlying loans and less than 1% exposure to any single issuer; over 97% in first lien senior secured loans.

• Portfolio optimization included selective refinancings, resets, defensive positioning, and focus on experienced CLO managers, with 44 CLO holdings managed by 24 managers and a total fair value of $122.9 million.

• Maintained monthly dividend of $0.06 per share, supported by core net investment income, with an annualized yield of 21.49% based on May 12, 2026 share price, declared through August 2026.

• NAV per share declined to $3.34 as of March 31, 2026, reflecting a decrease from prior quarters.

• Focused on long-term value creation and continued resetting of CLOs to extend reinvestment periods and lower financing costs.

Financial highlights

• Total investment income for Q2 2026 was $5.54 million ($0.26 per share); total expenses were $3.62 million.

• Net investment income was $1.9 million ($0.09 per share); adjusted net investment income was $2.4 million ($0.11 per share); core net investment income was $0.29 per share, providing strong dividend coverage.

• Net realized and unrealized losses were $(34.89) million, resulting in a net loss of $(32.97) million for the quarter.

• Total assets at quarter-end were $130.0 million, with net assets of $70.8 million.

• Recurring cash flows per share were $0.44.

Outlook and guidance

• Dividend guidance maintained at $0.06 per month through August 2026, supported by core net investment income and recurring cash flows.

• CLO equity expected to benefit from attractive liability costs; normalization in loan spreads or increased loan supply could improve excess spread generation.

• Anticipated heightened refinancing activity with 17% of the loan market maturing by end of 2028, potentially leading to spread widening.

• Continued focus on conservative positioning, disciplined underwriting, manager selection, and active credit management.