Eagle Point Income Co Inc. Q4 FY2023 earnings call

• Fourth quarter capped a great 2023 with quarter-over-quarter increase in portfolio cash flows, NAV increase, and net investment income exceeding monthly distributions. • GAAP return on equity for 2023 was 25.93% and total return on common stock with reinvestment was 21.37% for the year. • Increased regular monthly common distribution by 11% to $0.20 per share per month, the highest in history, eighth increase since 2021. • Net investment income less de minimis realized capital losses was $0.56 per share, excluding $0.02 per share nonrecurring expenses. • Received recurring cash flows of $9.3 million or $0.91 per share. • Paid three monthly common distributions of $0.18 per share in Q4 and increased to $0.20 starting Jan 2024, with distributions declared through June 2024. • Raised capital through at-the-market program, issuing over 1 million common shares and nearly 57,000 Series B preferred shares. • NAV as of Dec 31 was $14.39 per share, up 2% from Sep and 11% for the year. • Portfolio benefits from floating rate CLOs, with CLO BBs having double-digit coupons. • Selectively deployed over $26 million in net capital into CLO junior debt, equity, etc. during Q4 with weighted average effective yield of 17.3%.

For the fourth quarter, Eagle Point Income Company (EIC) had net investment income (NII) less realized losses of $5.5 million or $0.54 per share. Recurring cash flows were $9.3 million or $0.91 per share. NAV as of December 31 was $14.39 per share, an increase of 2% from September and 11% for the year. They issued just over 1 million common shares at a premium to NAV, generating NAV accretion of $0.03 per share during the quarter, and nearly 57,000 shares of Series B term preferred stock. The portfolio benefits from the floating rate nature of CLOs, with 100% of CLO debt investments being floating rate, and CLO BBs having double-digit coupons, some potentially yielding north of 20% in early call scenarios. Revenue contribution isn't broken down by traditional product segments but focuses on CLO-related investments.

• Declared common distributions of $0.20 per share now through the end of June 2024. • Estimated NAV at January month end to be between $14.94 and $15.04 per share, a further 4.2% increase at midpoint from year-end. • As of Feb 15, over $26 million of cash and revolver borrowing capacity available. • Expect to be active in refinancing and resets for CLO equity positions to lower financing costs and enhance weighted average remaining reinvestment period. • Refinancings, resets, and calls may lead to some discounted CLO BB purchases being paid off at par sooner than anticipated.