Carlyle Credit Income (CCIF) Q2 2025 earnings summary

Executive summary

• Maintained monthly dividend at $0.105 per share (18.75%–18.8% annualized), supported by $0.49 of recurring cash flows for the quarter.

• Portfolio comprised 61 unique CLO investments managed by 30 different managers, with exposure to 1,428 companies as of March 31, 2025.

• Completed 13 CLO refinancings and resets, reducing liability costs, extending reinvestment periods, and optimizing portfolio.

• Completed private placement of five-year 7.5% convertible preferred shares for $18.6 million and sold 1.61 million common shares via ATM for $12.2 million.

• Net assets as of March 31, 2025, were $131,969,284.34, with total assets of $211,982,811.42.

Financial highlights

• Q2 2025 net investment income was $4.0 million ($0.23 per share); adjusted NII was $4.6 million ($0.26 per share); core NII was $0.27 per share.

• Total investment income for Q2 was $8.6 million; total expenses were $4.5 million.

• Net asset value per share was $6.98 at March 31, 2025; total investments at fair value were $197.9 million.

• Net realized and unrealized losses totaled $(7.1) million, resulting in a net loss of $(3.1) million for the quarter.

• Leverage ratio increased to 0.38x, with preferred equity principal balance at $80.5 million.

Outlook and guidance

• Dividend guidance maintained at $0.105 per share monthly through August 2025, annualized at 18.75%.

• Recurring cash flows rebounded in Q3 2025 to approximately $0.62 per share.

• CLO equity outlook remains positive, with volatility seen as beneficial for long-term returns.

• Anticipate slowdown in CLO resets and refinancings until spreads tighten further.

• Expect impact from loan repricing to be lower in the current quarter due to recent market volatility halting repricings.