Nuveen Churchill Direct Lending (NCDL) Q4 2025 earnings summary

Executive summary

• Achieved nearly 11% ROE on net investment income for 2025, with total distributions of $1.90 per share and a 10.7% yield on year-end NAV; Q4 2025 net investment income was $0.44 per share.

• Portfolio remained healthy and resilient, with only 0.5% of investments on non-accrual at year-end (four companies).

• Board authorized a $50 million share repurchase program to capitalize on NAV discounts.

• Maintained focus on core U.S. middle market lending, emphasizing conservative underwriting, diversification, and proactive monitoring.

• Portfolio at year-end: $2.0 billion fair value across 227 companies in 26 industries, with 89.5% in first-lien debt.

Financial highlights

• Net investment income per share was $0.44 in Q4, up from $0.43 in Q3; total investment income for 2025 was $207.9 million, down from $224.0 million in 2024.

• Net asset value per share was $17.72 at year-end, down from $17.85 at September 30, 2025, and $18.18 at December 31, 2024.

• Q4 regular distribution paid: $0.45 per share, with a 10.1% annualized yield on NAV; Q1 2026 distribution declared at $0.40 per share (regular $0.36, supplemental $0.04).

• Gross originations in Q4 were $59.4 million, with $80.4 million in fundings and $84.3 million in repayments.

• Full year net expenses before excise taxes: $114.3 million, up from $101.1 million in 2024.

Outlook and guidance

• Expect continued strong deal flow and investment opportunities in 2026, supported by interest rate cuts and increased M&A activity.

• Projected further Fed rate cuts in 2026, with markets pricing in two more 25 bps reductions.

• Regular quarterly distribution set at $0.36 per share, with supplemental dividends as excess earnings allow.

• Management remains focused on generating attractive risk-adjusted returns and confident in portfolio strength.