Eagle Point Income Company Inc.

Ladies and gentlemen, thank you for standing by. Eagle Point Income Company's call will begin momentarily. We ask that you please continue to hold. Our program will begin in two minutes. Thank you. Thank you. Greetings and welcome to the Eagle Point Income Company fourth quarter 2022 financial results call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Peter Skuser with ICR. Please go ahead.

Thank you and good morning. Before we begin our formal remarks, we need to remind everyone that the matters discussed in this call include forward-looking statements or projected financial information that involve risks and uncertainties that may cause the company's actual results. to differ materially from those projected in such forward-looking statements and projected financial information. For further information on factors that could impact the company in the statements and projections contained herein, please refer to the company's filings with the Securities and Exchange Commission. Each forward-looking statement and projection of financial information made during this call is based on information available to us as of the date of this call. We disclaim any obligation to update our forward-looking statements unless required by VAW. A reply of this call can be accessed for 30 days via the company's website at www.egopointincome.com. Earlier today, we filed our form NCSR, our full year 2022 audited financial statements, and our fourth quarter investor presentation with the Securities and Exchange Commission. The financial statements in our fourth quarter investor presentation are also available within the investor relations section of the company's website. The financial statements can be found by following the financial statements and reports link. The investor presentation can be found by following the presentations and events link. I would now like to introduce Tom Majewski, Chairman and Chief Executive Officer of Eagle Point Income Company.

Great. Thank you, Peter, and welcome everyone to Eagle Point Income Company's fourth quarter earnings call. We appreciate your interest in Eagle Point Income Company, or EIC. If you haven't done so already, we invite you to download our investor presentation from our website at eaglepointincome.com, which I will refer to during a portion of my remarks. The fourth quarter of 2022 capped off a very strong year for EIC. Throughout the year, our portfolio performed as we intended it to in a rising rate environment. Thanks to significant increases on the floating coupons of many of our investments, we were able to increase our common distributions multiple times during 2022. In the fourth quarter, net investment income, excluding non-recurring expenses, was once again well above our monthly distribution level. Given the continued rising interest rate environment, we believe our portfolio remains very well positioned to generate significant additional income through our investments in CLO junior debt. To share a few specific highlights from the quarter, net investment income was 52 cents per common share before non-recurring expenses. Our recurring cash flows were $5 million, comfortably in excess of our regular common distribution and expenses. Our NAV as of December 31st was $12.91 per common share. This came down a bit from Q3 due to a bit of spread widening in the market going into the end of the year. However, our NAV rallied nicely in January, up about 6.3% from year end, based on the midpoint of the range that we published earlier this month. With the continued confidence in our portfolio, we raised our monthly common distribution in January by 14% to 16 cents. month per share. We also opportunistically raised capital through our at-the-market program, issuing nearly 900,000 common shares at a premium to NAV, generating NAV accretion of about 11 cents per common share during the quarter. These sales generated net proceeds of approximately $12.4 million for us during the quarter, and we have selectively continued to raise capital during the first quarter. Short-term interest rates continue to gradually rise during the fourth quarter, which should factor favorably into our April cash flows. Our portfolio continues to clearly benefit from the floating rate nature of CLO BBs. To put it into further context, we're seeing some CLO BBs with double-digit or even mid-teens yields today, and this is a marked difference from where the market stood one year ago. As we've consistently noted, our portfolio has been positioned for some time to positioned for some time for this type of rising rate environment, given that 100% of our CLO debt investments we hold are floating rate. And as a result of our portfolio's strong performance, our common distribution is now double what it was during the first quarter of 2021. As long-term focused investors, we seek to construct our portfolio that's well positioned through periods of dislocation. As evidenced by our excellent continued performance in the challenging economic environment that we're in today, We're clearly executing on that playbook. We're also continuing to seek to lengthen the weighted average remaining reinvestment period of our CLO debt and equity portfolios, which we believe will continue to position the company well should markets remain choppy. We're excited for our portfolio's potential in 2023 and beyond. For additional commentary on the overall market and our recent portfolio activity, I'd like to introduce and turn the call over to one of Eagle Point's principals and portfolio manager, Dan Coe.