Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC)
today announced financial results for the quarter ended June 30,
2021, net asset value (“NAV”) as of June 30, 2021 and certain
additional activity through July 31, 2021.
SECOND QUARTER 2021 HIGHLIGHTS
- Net investment income (“NII”) and realized capital gains of
$0.28 per weighted average share.1
- NAV per share of $17.38 as of June 30, 2021, an increase of 3%
from March 31.
- Second quarter 2021 GAAP net income (inclusive of unrealized
mark-to-market gains) of $4.5 million, or $0.73 per weighted
average share.
- Weighted average effective yield of the Company’s
collateralized loan obligation (“CLO”) debt and equity portfolio,
based on amortized cost, was 9.56% as of June 30, 2021. Weighted
average expected yield of the Company’s CLO portfolio, based on
fair market value, was 9.95% as of June 30, 20212.
- Deployed $11.4 million in gross capital in the second quarter
of 2021.
SUBSEQUENT EVENTS
- NAV per share estimated to be between $17.44 and $17.48 as of
July 31, 2021.
- As of July 31, 2021, the Company had approximately $3.8 million
of cash and capacity on its revolving credit facility available for
investment.
- Declared 33% increase in monthly distributions to $0.12 per
share beginning in October 2021.
“We had another excellent quarter, generating net investment
income and realized capital gains of $0.28 per share, comfortably
above our distribution level during the quarter,” said Thomas
Majewski, Chairman and Chief Executive Officer. “We have been
slowly increasing the portfolio’s exposure to CLO equity as we see
an attractive opportunity to further increase NII on a sustainable
basis. Given our recent financial performance and our continued
confidence in the Company’s future outlook, we were pleased to
further increase our monthly distributions by 33%, to $0.12 per
share, beginning in October.”
SECOND QUARTER 2021 RESULTS
The Company’s NII and realized capital gains for the quarter
ended June 30, 2021 was $0.28 per weighted average share. This
compared to $0.32 of NII and realized capital gains per weighted
average share for the quarter ended March 31, 2021 and $0.34 of NII
and realized capital gains per weighted average share for the
quarter ended June 30, 2020.
For the quarter ended June 30, 2021, the Company recorded GAAP
net income of $4.5 million, or $0.73 per weighted average share.
The net gain was comprised of total investment income of $2.6
million, unrealized appreciation on investments of $2.7 million and
de minimis net realized gain on investments, partially offset by
total expenses of $0.8 million.
NAV as of June 30, 2021 was $106.1 million, or $17.38 per share,
which is $0.48 higher than the Company’s NAV per share as of March
31, 2021, and $3.24 higher than the Company’s NAV per share as of
June 30, 2020.
During the quarter ended June 30, 2021, the Company deployed
$11.4 million in gross capital.
As of June 30, 2021, the weighted average effective yield on the
Company’s CLO debt and equity portfolio, based on amortized cost,
was 9.56%, compared to 9.53% as of March 31, 2021 and 8.94% as of
June 30, 2020.
PORTFOLIO STATUS
As of June 30, 2021, on a look-through basis, and based on the
most recent CLO trustee reports received by such date, the Company
had indirect exposure to approximately 1,327 unique corporate
obligors. The largest look-through obligor represented 0.9% of the
Company’s CLO debt and equity portfolio. The top-ten largest
look-through obligors together represented 6.3% of the Company’s
CLO debt and equity portfolio.
As of June 30, 2021, the Company had $28.4 million in
outstanding borrowings from the revolving credit facility,
representing leverage of 21.1% of total assets (less current
liabilities). Over the long term, management expects the Company to
operate under normal market conditions generally with leverage
between 25% and 35% of total assets (less current liabilities).
Based on applicable market conditions at any given time, or should
significant opportunities present themselves, the Company may incur
leverage in excess of this amount, subject to applicable regulatory
and contractual limits.
THIRD QUARTER 2021 PORTFOLIO ACTIVITY THROUGH JULY 31, 2021
AND OTHER UPDATES
As of July 31, 2021, the Company had approximately $3.8 million
of cash and capacity on its revolving credit facility available for
investment.
As previously published on the Company’s website, management’s
estimate of the Company’s range of NAV per share as of July 31,
2021 was $17.44 to $17.48.
DISTRIBUTIONS
The Company paid a monthly distribution of $0.09 per share on
July 30, 2021 to stockholders of record as of July 12, 2021.
Additionally, and as previously announced, the Company declared
distributions of $0.09 per share of stock payable on August 31,
2021 and September 30, 2021 to stockholders of record as of August
11, 2021 and September 10, 2021, respectively; and distributions of
$0.12 per share of stock payable on October 29, 2021, November 30,
2021 and December 31, 2021 to stockholders of record as of October
12, 2021, November 10, 2021 and December 13, 2021, respectively.
The ability of the Company to declare and pay distributions is
subject to a number of factors, including the Company’s results of
operations.
Distributions on stock are generally paid from net investment
income (regular interest and dividends) and may also include
capital gains and/or a return of capital. The specific tax
characteristics of the distributions will be reported to the
Company’s stockholders on Form 1099 after the end of the 2021
calendar year.
ADDITIONAL INFORMATION
The Company has made available on the investor relations section
of its website, www.eaglepointincome.com (in the financial
statements and reports section), its semiannual stockholder report
for the period ended June 30, 2021 (which includes the Company’s
unaudited consolidated financial statements as of and for the
period ended June 30, 2021). The Company has also filed this report
with the Securities and Exchange Commission (“SEC”). The Company
also published on its website (in the presentations and events
section) an investor presentation, which contains additional
information about the Company and its portfolio as of and for the
quarter ended June 30, 2021.
ABOUT EAGLE POINT INCOME COMPANY
The Company is a non-diversified, closed-end management
investment company. The Company’s primary investment objective is
to generate high current income, with a secondary objective to
generate capital appreciation, by investing primarily in junior
debt tranches of CLOs. In addition, the Company may invest up to
35% of its total assets (at the time of investment) in CLO equity
securities. The Company is externally managed and advised by Eagle
Point Income Management LLC.
The Company makes certain unaudited portfolio information
available each month on its website in addition to making certain
other unaudited financial information available on its website
(www.eaglepointincome.com). This information includes (1) an
estimated range of the Company’s net investment income (“NII”) and
realized capital gains or losses per share of common stock for each
calendar quarter end, generally made available within the first
fifteen days after the applicable calendar month end, (2) an
estimated range of the Company’s net asset value (“NAV”) per share
of common stock for the prior month end and certain additional
portfolio-level information, generally made available within the
first fifteen days after the applicable calendar month end, and (3)
during the latter part of each month, an updated estimate of NAV,
if applicable, and, with respect to each calendar quarter end, an
updated estimate of the Company’s NII and realized capital gains or
losses per share for the applicable quarter, if available.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described in the
prospectus and the Company’s other filings with the SEC. The
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the
date of this press release.
1 “Per weighted average share” data are on a weighted average
basis based on the average daily number of shares of common stock
outstanding for the period and “per share” refers to per share of
the Company’s common stock. 2 Weighted average effective yield is
based on an investment’s amortized cost whereas weighted average
expected yield is based on an investment’s fair market value as of
the applicable period end as disclosed in the Company’s financial
statements, which is subject to change from period to period.
Please refer to the Company’s quarterly unaudited financial
statements for additional disclosures.
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version on businesswire.com: https://www.businesswire.com/news/home/20210817005240/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
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