Eagle Point Income Company Inc.

Ladies and gentlemen, greetings and welcome to the Eagle Point Income Company 3rd Quarter 2024 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 and zero on a telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Garrett Edson of ICR. Thank you. Please go ahead.

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.EaglePointIncome.com. Earlier today, we filed our third quarter 2024 financial statements and our third quarter investor presentation with the Securities and Exchange Commission. The financial statements and our third 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 will now turn the call over to Tom Majewski, Chairman and Chief Executive Officer of Eagle Point Income Company.

Thank you, Garrett, and welcome everyone to Eagle Point Income Company's third 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. This presentation contains detailed information about the company and our investment portfolio. It has been a solid year so far for EIC. We've generated strong net investment income and realized gains and continue to strengthen our balance sheet. CLO junior debt remains in robust demand, and we're actively managing our portfolio towards maximizing shareholder returns. Among our highlights for the quarter, the company received recurring cash flows of $13.1 million, or 76 cents per share. This compares to cash flows from the prior quarter of $12.4 million, or 87 cents per share. The decrease in cash flows per share during the quarter was a result of a significant number of new investments made after their third quarter payment dates. We are now seeing our first payments from those investments in the fourth quarter. The company generated net investment income and realized gains of 57 cents per share during the quarter. Realized gains of 8 cents per share were generated from a number of sales and repayments at par on positions in our portfolio during the third quarter, as we were able to realize the convexity of our discounted purchases over the past quarters sooner than expected. In line with the previous two quarters, we paid three monthly common distributions of $0.20 per share during the third quarter and have declared the same monthly distributions through March 2025. Our NAV as of September 30th was $14.90 per share, a 2% decrease from the level at June 30th. we continue to strengthen our balance sheet as well. Through our at-the-market program, or ATM, and committed equity finance programs, we issued approximately 2.8 million common shares of stock at a premium to NAV. This generated NAV accretion of $0.05 per share during the quarter. We also realized proceeds of $7.1 million from additional issuances of Series B and Series C term preferred stock via the ATM. Daily average trading volume for our common stock continues to increase, with volumes in the third quarter 29% higher than the second quarter, and more than tripling the average trading volume on a year-over-year basis. All of our CLO coupons remain in the double digits, and some CLOs have the potential for higher returns if those CLOs are called early. Further, the portfolio's CLO equity exposure continues to enhance our portfolio's earnings ability. As investors focused on the long term, we remain consistent in our approach to construct a portfolio to weather any economic and rate cycle. We believe the portfolio is strongly positioned for continued future performance. For additional commentary on the overall market and our recent portfolio activity, I'd like to turn the call over to Senior Principal and Portfolio Manager, Dan Coe.