Eagle Point Income Company Inc.

Greetings. Welcome to Eagle Point Income Company's second quarter 2025 financial results conference call. At this time, all participants will be in listening mode. The question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. Please note this conference is being recorded. I'll now turn the conference over to Darren Daugherty with Proceq Partners. Thank you. You may begin.

Thank you, operator, and good morning. Welcome to Eagle Point Income Company's earnings conference call for the second quarter of 2025. Speaking on the call today are Thomas Majewski, Chairman and Chief Executive Officer of the company, Dan Koh, Senior Principal and Portfolio Manager for the company's advisor, and Lina Umnova, Chief Accounting Officer for the advisor. Before we begin, I would like to remind everyone that 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 such projections. 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 or projection of financial information made during this call is based on the 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. Earlier today, we filed our second quarter 2025 financial statements and investor presentation with the Securities and Exchange Commission. These are also available in the investor relations section of the company's website, eaglepointincome.com. A replay of this call will also be made available later today. I will now turn the call over to Thomas Smijewski, Chairman and Chief Executive Officer of Eagle Point Income Company. Tom?

Thank you, Darren. Good morning, everyone, and thank you for joining us on the call today. Our portfolio delivered solid performance in the second quarter of 2025, generating strong cash flow from investments and investment income amid the rapidly shifting market landscape. The quarter started with heightened concerns related to global trade and its impact on economic growth. However, as market concerns subsided, the stock market led a broad rebound across asset classes. The CLO market, which tends to lag other asset classes, showed a gradual recovery as well, reflecting in increased reset and refinancing activity. During the second quarter, EIC generated net investment income and realized gains of $0.39 per share. This was comprised of $0.37 of net investment income and $0.02 of realized capital gains. The company received recurring cash flows of $18 million, or 67 cents per share, during the quarter. This compares to cash flows of $16 million, or 71 cents per share, in the first quarter. Recurring cash flows were less than our regular common distributions and total expenses as a result of the lower SOFR rates on our CLO debt portfolio, combined with some lower recurring CLO equity cash flows as a result of spread compression. That said, we expect third quarter cash flows to be roughly in line with that quarter's distributions and expenses. Our NAV as of June 30th was $14.08 a share, and this is slightly below March 31st NAV of $14.16 per share. While market volatility in April impacted CLO prices broadly, our portfolio has seen a recovery in our NAV from the April lows. And for the second quarter, the company generated a non-annualized gap return of 3.5%. The volatility we experienced in the latter part of the first quarter continued into April, creating attractive buying opportunities for discounted CLO debt and equity securities. During the quarter, we were able to opportunistically deploy $40 million into attractive investments, taking advantage of market-wide price dislocations. Notably, for double B-rated CLO debt, we are able to buy some securities at prices we hadn't seen since the first half of 2024. When we can purchase CLO debt at a discount, this provides the potential for convexity or pull to par as markets recover and normalize. Our strong liquidity position allowed us to remain on the offensive during the period of volatility in the second quarter. We expect these purchases to help us create realized gains in the future, similar to how our previously discounted purchases from 2023 and 2024 contributed to realized gains that we've generated in more recent quarters. Earlier in the quarter, we strengthened our balance sheet through our at-the-market program, raising about $20 million of common stock at a premium to NAV. This generated NAVA creation of about one penny per share. We also raised about $11 million of preferred capital during the quarter via our ATM program. In late May, however, our stock price dropped, and we quickly announced a $50 million share repurchase program. Our stock was trading at a high single-digit discount to NAV, and we aggressively began buying back our stock. The stock closed on June 6 at an 8.4% discount to the May 31 NAV, and in part due to our buyback program, it ended the quarter at only a 2.9% discount. In total, we repurchased $6.5 million of common stock at an average discount to NAV of 6.4%. This helped generate two cents of NAV accretion during the quarter. Due to regulations, we're limited to the volume we can buy on any given day, and we would have bought more if we could. Today, we declared three monthly distributions of 13 cents per share for the fourth quarter, maintaining the distribution level we established in the previous quarter. We completed two resets of our CLO equity positions in the quarter. These actions lowered debt costs within the CLOs and extended the CLO's reinvestment periods, which continue to enhance our portfolio's weighted average remaining reinvestment period and our long-term's earning power. I'd now like to turn the call over to Senior Principal and Portfolio Manager Dan Coe for a broader market update.