Nuveen Churchill Direct Lending (NCDL) Q4 2024 earnings summary

Executive summary

• Completed IPO in January 2024 and listed on NYSE, marking a significant milestone.

• Q4 2024 net investment income was $0.56 per share, with a net increase in net assets from operations of $0.54 per share.

• Paid total 2024 distributions of $2.10 per share, fully covered by net investment income, with Q4 regular and special dividends totaling $0.55 per share.

• Achieved a 12.4% ROE on net investment income for 2024.

• Portfolio focused on core U.S. middle market companies, primarily first lien debt, diversified across 26 industries and 210 companies.

Financial highlights

• Q4 net investment income was $0.56 per share, fully covering regular and special dividends totaling $0.55 per share.

• Full-year net investment income reached $2.26 per share.

• Total investment income for 2024 was $224.0 million, up from $161.8 million in 2023.

• Q4 GAAP net income was $0.54 per share, down from $0.67 in Q3, impacted by $0.02 per share in net realized and unrealized losses.

• Net asset value per share rose to $18.18 at year-end from $18.15 at the end of Q3.

Outlook and guidance

• Confident in positioning as a leader in core middle market direct lending for 2025, with a disciplined investment approach.

• Expect to continue deploying capital into traditional middle market transactions and modestly increase leverage.

• Supplemental dividend program to distribute roughly 50% of excess earnings above the base dividend after final special dividend.

• Declared Q1 2025 regular dividend of $0.45 per share and final IPO special dividend of $0.10 per share, both payable in April 2025.

• Optimistic about increased M&A activity and growth opportunities in private credit.