Financial Data and Key Metrics Changes - In 2025, the company generated a GAAP return on equity of -0.7% and a total return on common stock of -15.2%, with cash distributions of $1.98 per share, representing 15% of the average stock price during the year [5][8] - The fourth quarter net investment income was $0.35 per share, down from $0.39 per share in the prior quarter, primarily due to declining SOFR and tightening loan spreads [7][8] - The company's NAV decreased to $13.31 per share as of December 31, down from $14.21 per share at the end of September [8][20] Business Line Data and Key Metrics Changes - The company experienced $147 million in paydowns within its CLO Debt portfolio during 2025, with realized capital gains of $0.12 per share from early repayments [5][6] - The fourth quarter net investment income, less realized losses, was $0.03 per share, compared to $0.26 per share in the prior quarter [18] - The company deployed approximately $45 million into new investments during the fourth quarter, with $26 million allocated to other credit asset classes [9] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for 2025, with the trailing 12-month default rate decreasing from 1.5% to 1.2% [14][15] - CLO new issuance rose to $55 billion in the fourth quarter, totaling $209 billion for 2025, surpassing the previous year's record [15] - The company's portfolio's default exposure was 32 basis points as of December 31 [14] Company Strategy and Development Direction - The company aims to actively manage its portfolio and seek opportunities across CLO Debt, CLO Equity, and other asset classes beyond CLOs [4][12] - The management believes that the current market environment presents a compelling opportunity for well-capitalized investors, with a focus on relative value and disciplined capital allocation [22] - The company plans to continue its share repurchase program, viewing its stock as undervalued [11][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the CLO market faced challenging conditions in 2025, with factors such as reduced SOFR levels and loan spread compression impacting performance [4][5] - Looking ahead, management expressed confidence in healthy underlying borrower fundamentals and a disciplined approach to position the company well for future opportunities [5][22] - The company anticipates that increased new issue loan activity may help rebalance supply and demand in the loan market, potentially supporting CLO Equity [22] Other Important Information - The company completed the full redemption of its 7.75% Series B Term Preferred Stock and announced plans to redeem the 8% Series C Term Preferred Stock [10] - As of January month-end, the company had $85 million of cash and revolver capacity available for investment [20] Q&A Session Summary Question: Follow-up on realized losses due to underperforming managers - Management indicated that underperforming collateral managers faced credit issues and loan spread compression, leading to a rotation into better-performing CLOs and other asset classes [25][26] Question: Source of funds for redeeming Series C Term Preferred Stock - Management confirmed that the redemption would be funded through a combination of the new revolver and cash on hand, along with proceeds from CLO Debt repayments [27][28] Question: Expected changes in the balance sheet investment portfolio - Management stated that while redeeming EICCs may lower leverage, they expect the investment portfolio to remain stable in the near term [34] Question: Focus on alternative credit assets - Management clarified that investments in alternative credit assets are made across the Eagle Point platform, with dedicated teams managing these investments [36][37]

Financial Data and Key Metrics Changes - In 2025, the company generated a GAAP return on equity of negative 0.7% and a total return on common stock of negative 15.2%, with cash distributions of $1.98 per share, representing 15% of the average stock price during the year [5][9] - The fourth quarter net investment income was $0.03 per share, down from $0.39 per share in the prior quarter, primarily due to a decline in SOFR and continued tightening in loan spreads [8][19] - The company's NAV decreased to $13.31 per share as of December 31, down from $14.21 per share at the end of September [9][21] Business Line Data and Key Metrics Changes - Paydowns within the CLO debt portfolio totaled $147 million during 2025, with early repayments contributing to realized capital gains of $0.12 per share [6][7] - The company participated in 10 resets and 6 refinancings across its CLO equity portfolio, resulting in average CLO debt cost savings of 46 basis points [7] - Recurring cash flows for the fourth quarter totaled $19 million, or $0.79 per share, representing an 18% increase quarter-over-quarter [9] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for the entirety of 2025, with the trailing twelve-month default rate decreasing from 1.5% to 1.2% [15][16] - CLO new issuance rose to $55 billion in the fourth quarter, totaling $209 billion for 2025, surpassing the previous year's record [16] - The company's portfolio's default exposure was 32 basis points as of December 31 [15] Company Strategy and Development Direction - The company actively managed its portfolio to seek opportunities across CLO debt and equity, as well as other asset classes beyond CLOs, reflecting a flexible investment strategy [4][10] - The company plans to continue repurchasing shares when trading at material discounts to NAV, viewing this as an attractive use of capital [12][23] - The management believes the current market environment presents compelling opportunities for patient, well-capitalized investors [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the CLO market faced challenging conditions in 2025, with factors such as reduced SOFR levels and loan spread compression impacting performance [4] - Looking ahead, management expressed confidence in healthy underlying borrower fundamentals and a disciplined approach to capital allocation [5][23] - The company anticipates a robust pipeline of refinancings and resets, which could help lower liability costs in the CLO equity portfolio [23] Other Important Information - The company completed the full redemption of its 7.75% Series B Term Preferred Stock and announced plans to redeem the 8% Series C Term Preferred Stock [11] - As of January month-end, the company had $85 million of cash and revolver capacity available for investment [22] Q&A Session Summary Question: Follow-up on realized losses due to underperforming managers - Management indicated that underperforming managers had credit issues and loan spread compression, leading to a rotation into better-performing CLOs and other asset classes [26][27] Question: Source of funds for redeeming Series C Term Preferred Stock - Management confirmed that the redemption would be funded through a combination of the new revolver and cash on hand, along with proceeds from CLO debt repayments [29] Question: Expectation of balance sheet investment portfolio shrinkage - Management clarified that while redeeming preferred stock, they would continue to opportunistically buy back stock and maintain a leverage ratio within the target range [35] Question: Focus on alternative credit assets - Management stated that investments in non-CLO asset classes are being made across the Eagle Point platform, with dedicated teams focusing on these opportunities [37]

Financial Data and Key Metrics Changes - In 2025, the company generated a GAAP return on equity of negative 0.7% and a total return on common stock of negative 15.2%, assuming reinvestment of distributions [5] - The company paid $1.98 per share in cash distributions, representing 15% of the average stock price during the year [5] - The net investment income for the fourth quarter was $0.35 per share, down from $0.39 per share in the prior quarter [7] - The GAAP net loss for the fourth quarter was $15 million or $0.60 per share, compared to a GAAP net income of $0.43 per share in the third quarter [18] Business Line Data and Key Metrics Changes - Paydowns within the CLO debt portfolio totaled $147 million during 2025, contributing to early repayments [5] - The company participated in 10 resets and 6 refinancings across its CLO equity portfolio, resulting in average CLO debt cost savings of 46 basis points [6] - Recurring cash flows for the fourth quarter totaled $19 million or $0.79 per share, an 18% increase quarter-over-quarter [8] Market Data and Key Metrics Changes - The trailing twelve-month default rate decreased from 1.5% at the end of September to 1.2% as of December 31st, below the long-term average of 2.6% [14] - CLO new issuance rose to $55 billion in the fourth quarter, totaling $209 billion for 2025, surpassing the previous year's record [15] - The S&P UBS Leveraged Loan Index posted a 1.2% return for the fourth quarter and a 5.9% return for the entirety of 2025 [13] Company Strategy and Development Direction - The company actively managed its portfolio, seeking opportunities across CLO debt and equity, as well as other asset classes beyond CLOs [4] - The company plans to continue its share repurchase program, viewing its stock as undervalued and an attractive use of capital [11] - The management believes the current market environment represents a compelling opportunity for patient, well-capitalized investors [24] Management's Comments on Operating Environment and Future Outlook - Management noted that the CLO market faced challenging conditions, with reduced SOFR levels impacting CLO debt investment income and ongoing loan spread compression affecting CLO equity [4] - The company remains constructive on CLO market fundamentals, with a robust pipeline of refinancings and resets expected to lower liability costs [24] - Management emphasized the importance of active portfolio management amid dynamic market conditions, focusing on relative value and disciplined capital allocation [22] Other Important Information - The company's NAV decreased to $13.31 per share as of December 31st, down from $14.21 per share at the end of September [8] - The company completed the full redemption of its 7.75% Series B Term Preferred Stock and announced plans to redeem the 8% Series C Term Preferred Stock [10] Q&A Session Summary Question: Follow-up on realized losses due to underperforming managers - Management indicated that underperforming collateral managers faced credit issues and loan spread compression, leading to a rotation into better-performing CLOs and other asset classes [26][28] Question: Source of funds for redeeming Series C Term Preferred Stock - Management confirmed that the redemption would be funded through a combination of cash on hand and the new revolving credit facility [29] Question: Non-recurring items in earnings - Management stated there were no non-recurring items in the earnings for the quarter [35] Question: Expectation of balance sheet investment portfolio shrinkage - Management clarified that while redeeming preferred stock, they have been opportunistically buying back stock and do not expect a significant shrinkage in the investment portfolio [36] Question: Focus on alternative credit assets - Management explained that investments in alternative credit assets are made across the Eagle Point platform, with dedicated teams focusing on these opportunities [37][39]

Eagle Point Income Company QUARTERLY UPDATE – Q4 2025 February 26, 2026 1 Important Information This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with Eagle Point Income Company Inc. ("EIC" or the "Company") or any of its affiliates. This presentation is provided for informational purposes only, does not constitute an offer to sell securities of the Company or a solicitation of an offer to purcha ...

Core Viewpoint - The article highlights the expertise of Michael Del Monte as a buy-side equity analyst specializing in technology, energy, industrials, and materials sectors, emphasizing his extensive background in professional services across various industries [1]. Group 1 - Michael Del Monte has over a decade of experience in professional services, which includes sectors such as Oil & Gas (O&G), Oilfield Services (OFS), Midstream, Industrials, Information Technology, Engineering, Procurement, and Construction (EPC) Services, and consumer discretionary [1].

分组1 - The article discusses the lack of coverage on the Series C Preferred Shares from Eagle Point Income Company Inc. (EIC) since 2024, highlighting that the previous article was the first on the platform following the issuance [1] 分组2 - Binary Tree Analytics (BTA) has a background in investment banking cash and derivatives trading, focusing on providing transparency and analytics for capital markets instruments and trades [2] - BTA specializes in Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations, aiming to deliver high annualized returns with a low volatility profile [2] - The firm has over 20 years of investment experience, having obtained a Finance major from a top university [2]

Group 1 - The article discusses the author's investment strategy focused on acquiring preferred equity, which is highlighted as a distinct investment type [1] - The service "High Dividend Opportunities" aims to provide sustainable income through high-yield investments, targeting a safe yield of over 9% [1] - The service includes features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [1] Group 2 - The author has a beneficial long position in specific preferred shares, indicating a personal investment interest in the discussed securities [2] - The article emphasizes that recommendations are closely monitored, with buy and sell alerts provided exclusively to members [3]

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with a notable increase in volatility observed in the tech sector [2]. - Analysts are focusing on the performance of companies that have demonstrated resilience during economic downturns, particularly those with strong balance sheets and consistent cash flow [2]. Group 2: Investment Opportunities - There is a growing interest in renewable energy companies, driven by government incentives and a shift towards sustainable practices [2]. - The healthcare sector is also highlighted as a potential area for investment, especially companies involved in innovative treatments and technologies [2]. Group 3: Risks and Considerations - Investors are advised to remain cautious due to potential regulatory changes that could affect various industries, particularly in technology and healthcare [2]. - The importance of diversification in investment portfolios is emphasized to mitigate risks associated with market volatility [2].

Group 1 - Many income investors are surprised by the pressure on distributions from BDCs and CLO-focused vehicles, which is attributed to the majority of their investments being in floating rate assets [1] - The Investment Doctor emphasizes a portfolio should include a mix of dividend and growth stocks, focusing on high-quality small-cap ideas in Europe [1] - The investment group European Small Cap Ideas provides exclusive access to actionable research on appealing Europe-focused investment opportunities, highlighting capital gains and dividend income for continuous cash flow [1] Group 2 - The European Small Cap Ideas portfolio and the European REIT Portfolio are featured as model portfolios, along with weekly updates and educational content on European investing opportunities [1] - An active chat room is available for discussions on the latest developments of the portfolio holdings [1]

Financial Data and Key Metrics Changes - The company reported a net investment income (NII) of $0.26 per share, consisting of $0.39 per share of net investment income offset by $0.13 of realized capital losses [4] - Recurring cash flows totaled $17 million or $0.67 per share, consistent with the prior quarter [4] - NAV increased to $14.21 per share as of September 30, up from $14.08 per share at the end of June [5] - GAAP return on equity for the third quarter was 3% [5] - The company recorded GAAP net income of $11.43 per share for the third quarter, with investment income of $16 million and unrealized gains of $5 million [16][17] Business Line Data and Key Metrics Changes - The company deployed $60 million into new investments during the quarter, with a weighted average effective yield of 16.6% on new CLO equity purchased [5] - Three resets and four refinancings of CLO equity positions were completed, lowering debt costs and extending reinvestment periods [6] - The company repurchased $21 million of common stock at an average discount to NAV of 8.3%, resulting in NAV accretion of $0.07 per share [7][8] Market Data and Key Metrics Changes - The S&P UBS Leveraged Loan Index returned 1.6% for the quarter, with a trailing 12-month default rate of 1.5%, up from 1.1% as of June 30 [11] - CLO new issuance volume was $53 billion during the quarter, slightly up from $51 billion in the second quarter [13] - The company had $52 million of cash and undrawn revolver capacity available for investment as of September 30 [14] Company Strategy and Development Direction - The company aims to capitalize on opportunities in the CLO investing market, leveraging its scale and experience [4] - The board increased the common share repurchase authorization to $60 million, reflecting a commitment to enhancing shareholder value [8] - The company plans to continue aggressive share buybacks when shares are trading at a discount to NAV [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the Fed's rate cuts have impacted earnings power, leading to a reduction in monthly distributions to $0.11 per share for the first quarter of 2026 [9] - The company believes junior CLO debt continues to offer compelling risk-adjusted returns compared to comparably rated corporates [9] - Management expressed optimism about credit quality, citing positive revenue and EBITDA trends among below investment-grade companies [24][26] Other Important Information - The company announced the scheduled redemption of 100% of its 7.75% Series B Term Preferred Stock to optimize capital structure [6] - As of October month-end, the company's NAV was estimated to be between $13.94 and $14.04 per share [18] Q&A Session Summary Question: Future expectations for credit quality given recent revenue and EBITDA trends - Management indicated that positive revenue and EBITDA trends among below investment-grade companies are credit positives, and defaults are not expected to increase materially [24][26] Question: Drivers behind the increase in annual trading volume - Increased recognition of premium yields and low credit expenses in CLOs has driven trading volume, along with the advent of ETFs [28][29] Question: Impact of dividend reduction on earnings power - Management acknowledged that the reduction in dividends is primarily due to Fed rate cuts affecting earnings power, but they are making rotations within the CLO equity portfolio to offset some of that [31] Question: Activity regarding asset rotation and cash holdings - The company has seen paydowns in investments due to refinancings and resets, leading to a build-up in cash, which will be used for both paying down preferred stock and buying back common shares [35][40] Question: Industry concentration in software and technology - Most of the concentration is in enterprise software, which is considered stickier and has performed well historically [43] Question: Investment focus in CLOs - The company generally follows market trends in industry concentrations, with technology and healthcare being the highest [44]