Eagle Point Income Company Inc.

Greetings and welcome to the Eagle Point Income Company second quarter 2023 financial results call. At this time, all participants are in a listen-only mode. A brief 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. It is now my pleasure to introduce your host, Peter Skusa at ICR. Thank you, Peter. You may begin.

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 or factors that could impact the company and 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 law. A replay of this call can be accessed for 30 days via the company's website, www.egopointincome.com. Earlier today, we filed our Form NCSR Half-Year 2023 Financial Statements and our Second Quarter Investor Presentation with the Securities and Exchange Commission. The financial statements in our second 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, and the investor presentation can be found by following the presentations and events link. I would now like to introduce Tom Wojcicki, Chairman and Chief Executive Officer of Eagle Point Income Company.

Thank you, Peter, and welcome everyone to Eagle Point Income Company's second 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'll refer to in a portion of my remarks. The company continued to perform very well during the second quarter, doing exactly what its investment portfolio was designed to do, generate increased cash flows in a high-rate environment due to the floating-rate nature of our CLO junior debt investments. Given our confidence and our outlook for our portfolio, we were very pleased last week to again increase our regular common distribution, this time by 13%, moving to 18 cents per share beginning in October. We believe our portfolio remains very well positioned to generate significant income and cash flow going forward. I'll share a few specific highlights from the quarter. Net investment income was 49 cents per share, once again exceeding our regular common distributions. Our recurring cash flows were $6.9 million, or 81 cents per share, well in excess of our regular common distributions and expenses. Our NAV as of June 30th was $13 per share, a modest decline from March 31st, and our NAV midpoint as of July 31st was $13.44, an increase of 3.4% from our June 30 NAV. We paid three monthly common distributions of 16 cents per share during the quarter. And as I just noted, we've declared an increase in our monthly common distributions to 18 cents per share beginning in October. We also opportunistically raised capital through our at-the-market and committed equity finance programs, issuing nearly 545,000 common shares at a premium to NAV, generating NAV accretion of about 3 cents per share during the quarter. These sales generated net proceeds of approximately $7.3 million during the second quarter. We continue to selectively raise capital during the third quarter. Last month, in July, we further strengthened our capital position with our 7.75% Series B term preferred stock offering. The new preferred stock is due in 2028, and we received net proceeds from the offering of $31.2 million which includes the full exercise and closing of the underwriter's over allotment or green shoe option. As of July 31st, we have over $48 million of cash and revolving capacity available to us, which is ample dry powder to invest and further expand our investment portfolio. As is clearly evident, our portfolio continues to benefit from the floating rate nature of CLO BBs, and given that 100% of CLO debt investments we hold are floating rate. Many CLO BB coupons are in the double digits, and some CLOs have the potential to yield north of 20% in some early call scenarios. As long-term focused investors, we seek to construct our portfolio to manage through periods of dislocation, and our consistently strong performance with respect to cash flow and income is validation that we're executing on that playbook. We continue to seek to lengthen the weighted average remaining reinvestment periods of our CLO debt and equity portfolios through vintage diversification. We are excited for our portfolio's potential for the second half of 2023 and beyond. For additional commentary on the overall market and some more detail on our recent portfolio activity, I'd like to turn the call over to Senior Principal and Portfolio Manager, Dan Koh.