Carlyle Credit Income (CCIF) Q3 2024 earnings summary

Executive summary

• Maintained a $0.105 per share monthly dividend, annualized at 14.81% based on August 20, 2024 share price, supported by $0.81 of recurring cash flows.

• Rotated portfolio into diverse CLO equity positions, focusing on equity and junior debt tranches, managed by Carlyle since July 2023.

• Portfolio diversified across 41 CLO investments managed by 24 different managers, with no single investment exceeding 7.35% of net assets.

• Net assets as of June 30, 2024, were $100,170,208, with total assets of $152,365,845 and total liabilities of $52,195,637.

• Increased dividend from 8% to 16.49% based on NAV as of July 31, 2024.

Financial highlights

• Net investment income for Q3 2024 was $0.32 per share, with NAV at $7.68 as of June 30, 2024.

• Total investment income for Q3 was $7.4 million ($0.58/share), up from $7.3 million ($0.61/share) in the prior quarter.

• Total fair value of investments reached $138.0 million as of June 30, 2024.

• Dividends paid totaled $0.315 per share for the quarter.

• Recurring cash flows per share increased to $0.81 in Q3 2024 from $0.64 in Q2 2024.

Outlook and guidance

• Maintained monthly dividend of $0.105 per share through November 2024, annualized yield of 14.81% based on August 20, 2024 share price.

• Management expects CLO equity to remain attractive due to stable credit and manageable defaults, with optimism for market opportunities through 2024.

• Anticipates continued activity in CLO resets and refinancings, with ongoing dialogue with managers.

• Expects to increase use of loan accumulation facilities as primary market activity rises.

• Dividend supported by recurring cash flows of approximately $0.77 per share in Q4 2024.