Eagle Point Income Company Inc. Announces Fourth Quarter and Full Year 2024 Financial Results

Eagle Point Income Company Inc. (the "Company") (NYSE:EIC, EICA, EICB, EICC)) today announced financial results for the quarter and full year ended December 31, 2024 and certain additional activity through January 31, 2025.

"Our fourth quarter performance capped off another excellent year for the Company. We continue to generate strong cash flows and generated a return on equity of 21.0% for 2024," said Thomas P. Majewski, Chairman and Chief Executive Officer. "For the second consecutive quarter, we generated $0.08 per share in realized gains, harvesting gains from securities we purchased at a discount."

"Through prudent use of our ATM program, we captured $0.05 of NAV accretion during the quarter and saw our common stock's quarterly average daily trading volume nearly tripled versus the fourth quarter of 2023," added Mr. Majewski. "While interest rates have fallen since their peak last summer, we believe the Company is well positioned to continue generating compelling risk-adjusted returns over the longer term for our shareholders."

FOURTH QUARTER 2024 RESULTS

• Net asset value ("NAV") per common share of $14.99 as of December 31, 2024, compared to $14.90 as of September 30, 2024.
• Net investment income ("NII") and realized gains of $0.54 per weighted average common share.¹ This compares to $0.57 of NII and realized gains per weighted average common share for the quarter ended September 30, 2024, and $0.54 of NII less realized losses per weighted average common share for the quarter ended December 31, 2023.
• GAAP net income (inclusive of unrealized mark-to-market appreciation) of $15.0 million, or $0.76 per weighted average common share.
• Received $16.1 million in recurring cash distributions² from the Company's investment portfolio or $0.82 per weighted average common share, modestly below the Company's aggregate distributions on its common stock and operating costs for the quarter.
• Deployed $90.5 million in gross capital into collateralized loan obligation ("CLO") debt and equity and other investments.
• As of December 31, 2024:
  • The weighted average effective yield of the Company's CLO debt and equity portfolio, based on amortized cost, was 12.13%. This compares to 11.86% as of September 30, 2024 and 13.29% as of December 31, 2023.³
  • Weighted average expected yield of the Company's portfolio, based on fair market value, was 12.95%. This compares to 12.87% as of September 30, 2024 and 17.21% as of December 31, 2023.³
• Issued approximately 2.5 million shares of common stock, 161,972 shares of the Company's 7.75% Series B Term Preferred Stock due 2028 (the "Series B Term Preferred Stock") and 325,136 shares of the Company's 8.00% Series C Term Preferred Stock due 2029 (the "Series C Term Preferred Stock") pursuant to the Company's "at-the-market" offering and committed equity finance programs for total net proceeds to the Company of approximately $50.5 million. The common stock issuance resulted in $0.05 per share of NAV accretion for the quarter ended December 31, 2024.
• As of December 31, 2024, the Company had outstanding borrowings from the Company's revolving credit facility and preferred equity securities which totaled approximately 29.8% of total assets (less current liabilities).⁴
• As of December 31, 2024, on a look-through basis, and based on the most recent CLO trustee reports received by such date:
  • The Company, through its CLO investments, had indirect exposure to approximately 1,451 unique corporate obligors.
  • The largest look-through obligor represented 0.6% of the loans underlying the Company's CLO debt and equity portfolio.
  • The top-ten largest look-through obligors together represented 5.3% of the loans underlying the Company's CLO debt and equity portfolio.
• GAAP net income was comprised of total investment income of $13.6 million, net realized gain on investments of $1.6 million, net unrealized appreciation on investments of $2.0 million and net unrealized depreciation on certain liabilities recorded at fair value of $2.5 million, partially offset by financing costs and operating expenses of $4.7 million.
• Recorded other comprehensive loss of $2.4 million.

FULL YEAR 2024 HIGHLIGHTS

• For the fiscal year ended December 31, 2024, the Company recorded GAAP net income of $41.6 million. Fiscal year GAAP net income was comprised of total investment income of $46.3 million, net realized gains on investments of $3.5 million and net unrealized appreciation on investments of $8.2 million, partially offset by financing costs and operating expenses of $16.2 million and net unrealized appreciation on certain liabilities recorded at fair value of $0.2 million.
• Recorded other comprehensive loss of $0.8 million.
• For the fiscal year ended December 31, 2024, the Company received $52.3 million of recurring cash distributions from its investment portfolio, or $3.30 per weighted average common share.

FIRST QUARTER 2025 PORTFOLIO ACTIVITY THROUGH JANUARY 31, 2025 AND OTHER UPDATES

• As previously published on the Company's website, management's estimate of the Company's NAV per common share is between $14.96 and $15.06 as of January 31, 2025.
• Received $15.1 million of recurring cash distributions from the Company's investment portfolio. As of January 31, 2025, some of the Company's investments had not yet reached their payment date for the quarter.
• Deployed $33.4 million of gross capital into CLO debt and equity and other investments.
• As of January 31, 2025, the Company had $30.3 million of cash and capacity on its revolving credit facility available for investment.

DISTRIBUTIONS

As previously announced, the Company has declared the following monthly distributions on its common stock, 5.00% Series A Term Preferred Stock due 2026 ("Series A Term Preferred Stock"), Series B Term Preferred Stock and Series C Term Preferred Stock.⁵

The Company evaluates its ongoing common stock distributions based on a number of factors, including cash flow generated from the Company's investment portfolio, GAAP earnings and the Company's requirement to distribute substantially all of its taxable income. Each of these factors may vary based on changes in short-term interest rates or other reasons.

CONFERENCE CALL

The Company will host a conference call at 11:30 a.m. (Eastern Time) today to discuss the Company's financial results for the quarter and full year ended December 31, 2024, as well as a portfolio update.

All interested parties may participate in the conference call by dialing (877) 704-4453 (domestic) or (201) 389-0920 (international). Please reference Conference ID 13750807 when calling, and the Company recommends dialing in approximately 10 to 15 minutes prior to the call.

A live webcast will also be available on the Company's website (www.eaglepointincome.com). Please go to the Investor Relations section at least 15 minutes prior to the call to register, download and install any necessary audio software.

An archived replay of the call will be available shortly afterwards until March 21, 2025. To hear the replay, please dial (844) 512-2921 (toll-free) or (412) 317-6671 (international). For the replay, enter Conference ID 13750807.

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 2024 Annual Report, which includes the Company's audited consolidated financial statements for the period ended December 31, 2024. 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 for the quarter and year ended December 31, 2024. The Company has filed these reports with the Securities and Exchange Commission ("SEC").

ABOUT EAGLE POINT INCOME COMPANY

The Company is a 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 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 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.

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.

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¹ "Per weighted average common share" is 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 "Recurring cash distributions" refers to the quarterly distributions received by the Company from its CLO debt, CLO equity and other investments.

³ "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 2024 Annual Report for additional disclosures.

⁴ 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.

⁵ The ability of the Company to declare and pay distributions on stock 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 actual components of the Company's distributions for US tax reporting purposes can only be finally determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099-DIV.

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Investor and Media Relations:

ICR

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www.eaglepointincome.com