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]

Back in August 2025, when Nuveen Churchill Direct Lending Corp. ( NCDL ) issued its Q2 2025 earnings report, I quickly went through it to understand whether to remain invested, sell, or add more to take advantageRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital ...

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]

Group 1 - The focus on closed-end funds is emphasized for identifying directional and arbitrage opportunities due to market price deviations [1] - The superiority of BDC bonds over BDC equity is highlighted, with multiple articles available on the subject [2] - The service offered includes frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities and IPO previews [2] Group 2 - The importance of timing in trades related to closed-end funds is noted, suggesting a need for early access to discussions [1] - An actively managed portfolio and hedging strategies are part of the investment service features [2]

Group 1 - ADS Analytics is a team of analysts with experience in research and trading departments at leading global investment banks [1] - The focus of ADS Analytics is on generating income ideas from various security types including CEFs, ETFs, mutual funds, BDCs, individual preferred stocks, and baby bonds [1]

Financial Performance - Nuveen Churchill Direct Lending Corp. reported quarterly earnings of $0.46 per share, matching the Zacks Consensus Estimate, but down from $0.57 per share a year ago [1] - The company posted revenues of $53.13 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.33% and down from $55.09 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2][3] Market Performance - Nuveen Churchill Direct Lending Corp. shares have declined approximately 5% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The company's current Zacks Rank is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $54.9 million, and for the current fiscal year, it is $1.90 on revenues of $218.2 million [7] - The estimate revisions trend for the company was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Nuveen Churchill Direct Lending Corp. belongs, is currently in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]