Eagle Point Income Company Inc. Q2 FY2025 earnings call

• Portfolio delivered solid performance in Q2 2025 with strong cash flow from investments amid market shifts.
• Market concerns subsided, stock market led rebound, and CLO market showed gradual recovery with increased reset and refinancing activity.
• Generated net investment income and realized gains of $0.39 per share, with recurring cash flows of $18 million or $0.67 per share in Q2.
• Deployed $40 million into attractive investments during Q2, taking advantage of market price dislocation.
• Strengthened balance sheet via at-the-market programs, raising ~$20M common stock and ~$11M preferred capital.
• Announced $50M share repurchase program, repurchased $6.5M common stock at an average discount to NAV of 6.4%, contributing to NAV accretion.
• Completed 2 resets of CLO equity positions, lowering debt costs and extending reinvestment period.

Eagle Point Income Company's portfolio delivered solid performance in the second quarter of 2025. It generated net investment income and realized gains of $0.39 per share, consisting of $0.37 net investment income and $0.02 realized capital gains. Recurring cash flows during the quarter were $18 million or $0.67 per share, compared to $16 million or $0.71 per share in the first quarter. The NAV as of June 30 was $14.08 per share, slightly below the March 31 NAV of $14.16 per share. The company generated a non-annualized GAAP return of 3.5% for the second quarter. The CLO portfolio saw deployment of $40 million into attractive investments, and the company strengthened its balance sheet via at-the-market programs and a stock repurchase program.

• Expect third quarter cash flows to be roughly in line with that quarter's distributions and expenses.
• NAV estimate as of July month end was between $14.34 per share and $14.44 per share, an increase from June and above March 31 NAV.
• Plan to continue buying back stock as market opportunities present themselves.

• Market volatility can impact CLO prices and portfolio performance.
• SOFR rate movements can affect earnings from CLO debt portfolio.
• Uncertainty in CLO equity taxable income makes predicting special distributions challenging.
• Potential default risks, such as the Altice default, can impact portfolio exposure.

Q: Shalabh Mehrish asked about the stock trading at a substantial discount to NAV and attractiveness for repurchase.

A: Thomas Majewski stated the stock is considered cheap and attractive for repurchase as it's trading at a significant discount to NAV