This press release contains historical information and "forward-looking statements†with respect to the business and investments of NCDL, including, but not limited to, statements about NCDL's future performance and financial performance and financial condition, which involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather ...

Core Insights - Business Development Companies (BDCs) were previously a strong sector for high dividend yields but are currently facing challenges in portfolio growth due to elevated interest rates [1] Group 1: Business Development Companies (BDCs) - BDCs have struggled to grow their portfolios in the current high interest rate environment [1] - The investment strategy of combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds [1]

Core Insights - The article discusses the Q2 2025 earnings report of Nuveen Churchill Direct Lending Corp. (NCDL) and the considerations for investment decisions based on its performance [1] Group 1: Company Overview - Nuveen Churchill Direct Lending Corp. (NCDL) is evaluated for its investment potential following its Q2 2025 earnings report [1] Group 2: Analyst Background - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [1] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [1]

Core Viewpoint - Nuveen Churchill Direct Lending Corp. reported quarterly earnings of $0.43 per share, missing the Zacks Consensus Estimate of $0.46 per share, and showing a decline from $0.58 per share a year ago, indicating a negative earnings surprise of -6.52% [1] Financial Performance - The company posted revenues of $51.11 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.39%, and down from $60.28 million year-over-year [2] - Over the last four quarters, the company has consistently failed to surpass consensus EPS and revenue estimates [2] Stock Performance - Nuveen Churchill Direct Lending Corp. shares have declined approximately 13.1% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of the mixed trend in estimate revisions prior to the earnings release [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $52.2 million, and for the current fiscal year, it is $1.89 on revenues of $211.8 million [7] Industry Context - The Financial - SBIC & Commercial Industry, to which Nuveen Churchill Direct Lending Corp. belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Performance - Net investment income for Q3 2025 was $0.43 per share, with a net increase in net assets resulting from operations of $0.38 per share[8]. - Total investment income for the three months ended September 30, 2025, was $51,106,000, a decrease of 15.5% from $60,280,000 in the same period of 2024[22]. - Net investment income for the nine months ended September 30, 2025, was $71,694,000, down 22.2% from $92,230,000 in 2024[22]. - The net increase in net assets resulting from operations for the three months ended September 30, 2025, was $18,658,000, compared to $36,643,000 in 2024[22]. Distribution and NAV - The company declared a fourth quarter regular distribution of $0.45 per share, payable on January 27, 2026[4]. - The net asset value (NAV) per share decreased to $17.85 from $17.92 as of June 30, 2025[8]. Investment Portfolio - As of September 30, 2025, the fair value of the company's portfolio investments was $2.0 billion across 213 portfolio companies, unchanged from June 30, 2025[5]. - The portfolio consisted of approximately 89.8% first-lien debt investments, 8.1% subordinated debt investments, and 2.1% equity investments as of September 30, 2025[6]. - New gross commitments at par for the nine months ended September 30, 2025, totaled $243,173,000, a significant decrease from $792,645,000 in 2024[27]. - The number of new portfolio companies for the nine months ended September 30, 2025, was 36, compared to 52 in the same period of 2024[27]. Investment Activity - The company funded $36.3 million of portfolio investments and received $61.3 million from principal repayments and sales during Q3 2025[9]. - Net funded investment activity for the three months ended September 30, 2025, was $(25,047,000), compared to $47,543,000 in the same period of 2024[24]. Expenses and Fees - Net expenses increased to $29.7 million for Q3 2025, primarily due to higher management fees and income-based incentive fees[11]. - The total expenses before incentive fees waived for the three months ended September 30, 2025, were $29,720,000, a decrease from $34,287,000 in 2024[22]. Debt and Yield - The weighted average yield of debt and income-producing investments decreased to 9.92% from 10.86% as of September 30, 2024[10]. - As of September 30, 2025, the company's debt to equity ratio was 1.25x, slightly down from 1.26x as of June 30, 2025[13]. - The weighted average annual interest rate on new debt investments at par for the three months ended September 30, 2025, was 9.17%, down from 9.63% in 2024[24]. - The weighted average annual coupon on new fixed rate debt investments at par for the nine months ended September 30, 2025, was 12.65%, down from 13.79% in 2024[27]. Realized Gains and Losses - The company recorded a net realized gain on investments of $1.5 million for Q3 2025, compared to $1.1 million for the same period in 2024[12]. - Total net realized and unrealized gain (loss) on investments for the three months ended September 30, 2025, was $(2,728,000), compared to $5,154,000 in 2024[22].

Core Viewpoint - Nuveen Churchill Direct Lending Corp. reported its financial results for the quarter ended September 30, 2025, highlighting a net investment income of $0.43 per share [1]. Financial Performance - The company achieved a net investment income of $0.43 per share for the quarter [1]. - The report includes details on net realized and unrealized gains, although specific figures were not provided in the excerpt [1].

Investment Activity - The company reported net funded investment activity of $(25,047) thousand for the three months ended September 30, 2025, compared to $47,543 thousand for the same period in 2024[355]. - New gross commitments at par for the three months ended September 30, 2025, were $29,236 thousand, significantly lower than $225,612 thousand in 2024[355]. - Net funded investment activity for the nine months ended September 30, 2025, was $(101,519) thousand, compared to $401,975 thousand for the same period in 2024[357]. - The number of portfolio companies increased to 213 at the end of September 2025, up from 202 in September 2024[355]. - The company had 499 total investments as of September 30, 2025, compared to 457 in the same period of 2024[355]. Financial Performance - Total investment income for the three months ended September 30, 2025 was $51,106,000, a decrease of 15.2% from $60,280,000 for the same period in 2024[371]. - Net investment income for the three months ended September 30, 2025 was $21,386,000, down from $31,489,000 in the same period of 2024, representing a decline of 32.1%[371]. - For the nine months ended September 30, 2025, net investment income was $71,694,000, a decrease of 22.2% from $92,230,000 for the same period in 2024[373]. - Net expenses increased to $29,720,000 for the three months ended September 30, 2025, compared to $28,791,000 for the same period in 2024[375]. Debt and Financing - The weighted average annual interest rate on new debt investments at par decreased to 9.17% in 2025 from 9.63% in 2024[355]. - The weighted average annual interest rate on new debt investments at par decreased to 9.30% in 2025 from 10.16% in 2024[357]. - The company recorded a net realized loss on investments of $(8,078,000) for the nine months ended September 30, 2025, compared to a net realized loss of $(1,522,000) for the same period in 2024[373]. - As of September 30, 2025, total debt obligations amount to $1,104.314 million, with $355.5 million due in 3 to 5 years and $748.814 million due in more than 5 years[446]. - The company issued $300 million in 6.650% Notes due 2030, with interest payable semi-annually starting September 15, 2025[443]. Investment Strategy - The company focuses on investing in U.S. middle market companies with annual EBITDA between $10 million and $250 million[344]. - The company is required to invest at least 70% of total assets in qualifying assets to maintain its status as a Business Development Company (BDC)[350]. - The company has entered into an investment advisory agreement with Churchill DLC Advisor LLC for portfolio management[345]. - The company has invested primarily in illiquid debt and equity securities of private companies, which are valued at fair value as determined by the Adviser[475]. Market Conditions and Risks - The company is closely monitoring macro-economic risks, including potential impacts from changes to trade policies[366]. - The company may face restrictions on financing access due to potential economic downturns, impacting future investments[388]. - The company is subject to interest rate risk, which could materially affect net investment income due to fluctuations in market interest rates[476]. - Interest income is projected to change significantly with interest rate fluctuations, with a potential decrease of $41,342,000 in net income if rates drop by 300 basis points[481]. Shareholder Returns - The company intends to make quarterly distributions to common shareholders based on taxable earnings and available cash[396]. - For the nine months ended September 30, 2025, the company declared dividends of $0.45 per share for three quarters and a special dividend of $0.10[399]. - The Board declared a regular dividend of $0.45 per share payable on or around January 27, 2026, to shareholders of record as of December 31, 2025[473]. Regulatory and Compliance - The company has no uncertain tax positions as of September 30, 2025, that met the recognition or measurement criteria[470]. - The company intends to maintain its qualification as a RIC to avoid U.S. federal income taxes on ordinary income or capital gains[469]. - The company has received SEC exemptive relief for co-investment transactions, allowing participation with affiliated entities under certain conditions[451]. Asset Valuation - The valuation of portfolio investments is critical, with assets valued quarterly or more frequently, impacting the reported amounts in financial statements[454][455]. - As of September 30, 2025, the total fair value of investments was $1,967,882 thousand, down from $2,081,379 thousand as of December 31, 2024[359]. - The weighted average yield on debt and income producing investments at fair value decreased from 10.40% as of December 31, 2024, to 9.97% as of September 30, 2025[362].

Core Insights - The article emphasizes the importance of identifying "sleepers" or hidden gem companies that can yield strong long-term returns, suggesting that overlooked investments are effective for wealth building [1] Group 1: Investment Strategy - The focus is on finding companies that are not currently in the spotlight, which can lead to significant investment opportunities [1] - The article advocates for a buy-and-hold investment strategy, particularly in quality blue-chip stocks, Business Development Companies (BDCs), and Real Estate Investment Trusts (REITs) [2] Group 2: Target Audience - The content aims to assist hard-working lower and middle-class individuals in building high-quality, dividend-paying investment portfolios [2] - The goal is to provide a new perspective to help investors achieve financial independence [2]

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