Eagle Point Income Co Inc. Q2 FY2024 earnings call

• The company's strong momentum from Q1 continued into Q2 with quarter-over-quarter increase in gross portfolio cash flows.
• NAV grew from prior quarter end and balance sheet was strengthened. Recurring cash flows were comfortably in excess of regular common distributions and operating expenses.
• In April, issued Series C term preferred with net proceeds of about $33.6 million. Through ATM program, issued ~2.7 million common shares at premium to NAV, generating NAV accretion of $0.07 per share.
• Deployed ~$61 million in net capital into CLO junior debt and CLO equity investments in Q2 with weighted average effective yield of 11.6%.
• New CLO issuance was at a record pace in H1 2024, with $53 billion in Q2 and $102 billion in H1.

The company had recurring cash flows of $12.4 million, or $0.87 per share, during the quarter, compared to $10.7 million, or $0.88 per share in the prior quarter. Net investment income plus realized gains, excluding non-recurring expenses, was $0.54 per share. NAV as of June 30 was $15.24, an increase of about 1% from March 31. The company generated total investment income of $10.9 million, net unrealized appreciation on investments of $2 million, net realized gains on investments of $0.3 million, and had unrealized depreciation on certain liabilities of $0.2 million, with financing costs and operating expenses totaling $4.9 million.

• Declared monthly common distributions of $0.20 per share through the end of 2024.
• As of July 31, had over $41 million of cash and revolver borrowing capacity available for investment.

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