Eagle Point Income Company Inc.

Greetings. Welcome to the Eagle Point Income Company first quarter 2024 financial results call. At this time, all participants are on 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. I will now turn the conference over to your host, Peter Cesar. You may begin.

Thank you, and good morning. As a reminder, before we begin our formal remarks, the matters discussed on 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 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 first quarter 2024 financial statements on our first quarter investor presentation with the Securities and Exchange Commission. Financial statements in our first quarter investor presentation are also available within the investor relations section of the company's website. 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 will now turn it over to 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 first quarter earnings call. We appreciate your interest in Eagle Point Income Company and or EIC. If you haven't done so already, we invite you to download our investor presentation from our website at eaglepointincome.com. The presentation contains detailed information about the company and our investment portfolio. The first quarter of 2024 picked up right where 2023 left off for the company. We had another quarter-over-quarter increase in portfolio cash flows, a solid increase in NAV from year-end, and a significant strengthening of our balance sheet. Our portfolio is doing exactly what it was designed to do in an elevated rate environment, simply generate more cash. Among our highlights for the first quarter, the company generated net investment income and realized capital gains of $0.56 per share. We received recurring cash flows of $10.7 million, or $0.88 per share, comfortably in excess of our regular common distributions and operating expenses. We increased our monthly common distribution by 11% at the beginning of the year, given our confidence in our portfolio. Indeed, we paid three monthly common distributions of 20 cents per share during the first quarter. Our NAV as of March 31st was $15.12 per share, which is an increase of 5% from year end. At the end of the quarter, we raised additional capital for the company by pricing an offering of 8% Series C term preferred stock, which will be due in 2029, and subsequently received proceeds of $33.6 million. We also opportunistically raised capital through our at-the-market program, issuing approximately 1.9 million common shares at a premium to NAV. This generated NAV accretion of 5 cents per share during the quarter. We also issued some Series B term preferred stock via the ATM during the quarter. Importantly, we believe our usage of the ATM program is helping drive additional liquidity of our common shares, And indeed, our average trading volume in the first quarter of 2024 was approximately 70% higher than the fourth quarter of 2023. Additionally, the company had a number of meaningful subsequent events after quarter end that I'd like to highlight. We declared monthly common distributions of 20 cents per share now through September of 2024. We estimate our NAV at April month end to be between $15.16 and and $15.26 per share. And this is up modestly at the midpoint from the March 31 NAV. As of April 30th, we have over $38 million of cash and revolver borrowing capacity available to us. This is ample dry powder with which to invest and further expand our portfolio. Lastly, I'm honored to share that last week, EIC won the Credit Flux Industry Award for Best Public Closed-End CLO Fund for 2023. This award is a true testament to our entire team's relentless efforts on behalf of the company, and we're very proud to have won it. Our portfolio continues to benefit from the floating rate nature of CLO BBs. The higher for longer rate environment, when considering that all of our CLOs are floating rate, definitely is a benefit to the company. All of our CLO BB coupons are in the double digits at this point, with some CLO BBs having the potential to yield even more if they're called early. As long-term focused investors, we seek to construct our portfolio to weather multiple economic cycles, and our strong cash flows and income generation are validation that we're executing exactly on that playbook. We remain excited for our portfolio's potential moving forward. For additional commentary on the overall market and our recent portfolio activity, I'd like to turn the call over to Dan Coe, who's a senior principal and portfolio manager here at Eagle Point.