Carlyle Secured Lending (CGBD) Q4 2024 earnings summary

Executive summary

• Net investment income per share was $0.47 in Q4 2024, unchanged from the prior quarter, with net asset value (NAV) per share at $16.80, slightly down from $16.85 as of September 30, 2024.

• Declared a total Q4 dividend of $0.45 per share, including a $0.05 supplemental dividend, and a Q1 2025 base dividend of $0.40 plus $0.05 supplemental.

• Portfolio fair value reached $1.8 billion across 135 companies, with a weighted average yield of 11.7%.

• Non-accrual investments represented 1.0% of the portfolio at amortized cost and 0.6% at fair value, reflecting stable credit quality.

• Progress continues on the strategic merger with Carlyle Secured Lending III, expected to close after the March 26, 2025 stockholder meeting.

Financial highlights

• Total investment income for Q4 2024 was $56.4 million, with net investment income of $24.2 million, or $0.47 per share.

• Net income for Q4 2024 was $20.5 million, up from $18.7 million in Q3 2024.

• Aggregate realized and unrealized net loss was about $4 million for the quarter.

• Incremental dividend from JV2 contributed $1.2 million, or $0.02 per share, to NII in Q4.

• Full-year 2024 net investment income was $2.00 per share; adjusted net investment income was $2.02 per share, excluding one-time items.

Outlook and guidance

• Merger with Carlyle Secured Lending III is on track, with anticipated synergies and cost savings post-closing.

• Management anticipates building on 2024 performance throughout 2025, focusing on origination activity and portfolio diversification.

• Dividend policy remains robust, with continued focus on high coverage and supplemental distributions.

• Anticipates ramping up JV1 with a new credit facility and expects a near-term return of capital from both JVs.