Eagle Point Income Co Inc. Q1 FY2024 earnings call

Key Points - First quarter 2024 picked up from 2023, with quarter-over-quarter increase in portfolio cash flows, solid NAV increase from year-end, and balance sheet strengthening. - Generated net investment income and realized capital gains of $0.56 per share. - Increased monthly common distribution by 11% at the beginning of the year, paying 3 monthly common distributions of $0.20 per share during the first quarter. - NAV as of March 31 was $15.12 per share, a 5% increase from year-end. - Raised $33.6 million via 8% Series C term preferred stock and issued ~1.9 million common shares via at-the-market program, generating NAV accretion. - Issued some Series B term preferred stock via the ATM, with average trading volume in first quarter 2024 ~70% higher than fourth quarter 2023. - Declared monthly common distributions of $0.20 per share now through September 2024. - Estimated NAV at April month end between $15.16 and $15.26 per share, modestly up from March 31 NAV. - Over $38 million of cash and revolver borrowing capacity available as of April 30. - Won Credit Flux Industry Award for Best Public Closed-End CLO Fund for 2023. - Portfolio benefits from floating rate nature of CLO BBs, with CLO BB coupons in double digits. - Deployed over $45 million in net capital into attractive CLO junior debt, CLO equity and other related investments in first quarter, with weighted average effective yield of CLO purchases at 12.7%. - 2024 first quarter CLO new issuance was $49 billion, fastest pace ever. - Completed 2 refinancings and 1 reset of CLO equity positions, lowering debt cost by average 36 basis points and extending reinvestment period. - 6 syndicated loan defaults in first quarter, but trailing 12-month default rate fell to 1.1%, EIC's default exposure at 0.7% well below market rate.

In the first quarter of 2024, the company generated net investment income and realized capital gains of $0.56 per share. Recurring cash flows of $10.7 million or $0.88 per share were received, comfortably exceeding regular common distributions and operating expenses. NAV as of March 31 was $15.12 per share, an increase of 5% from year-end. The company raised $33.6 million through the pricing and offering of 8% Series C term preferred stock and issued approximately 1.9 million common shares via the at-the-market program, generating NAV accretion of $0.05 per share. Revenue contribution details: Net investment income and realized capital gains contributed to the overall financial performance, with recurring cash flows from the investment portfolio being a significant part.

Guidance - Expect some modest drag on NII per share during the second quarter as capital deployed using proceeds from EICC offering and recent ATM activity will not earn full quarter's income, but expect normalization by third quarter. - Declared monthly common distributions of $0.20 per share now through September 2024. - Estimated NAV at April month end between $15.16 and $15.26 per share.

Risks - Matters discussed involve forward-looking statements with risks and uncertainties that may cause actual results to differ materially from projections. - Potential rise in loan defaults, but portfolio is well positioned to handle. - Other comprehensive loss of $1.4 million recorded, representing change in fair value on financial liabilities attributed to instrument-specific credit risk.

Q: Are there any questions?

A: Since there are no questions, the call moves to closing remarks.