Carlyle Secured Lending(CGBD) - 2025 Q2 - Quarterly Results

Financial Performance - Net investment income per common share was $0.39 for Q2 2025, consistent with GAAP and adjusted for asset acquisition accounting[13] - Adjusted Net Income per Common Share for Q2 2024 was $0.35, compared to $0.39 in Q3 2024 and $0.40 in Q4 2024[18] - Adjusted net investment income (NII) for Q2 2025 is reported at $0.39 per share, compared to $0.79 per share for the year-to-date[37] - Net Investment Income for Q2 2025 was $28,250 thousand, a rise from $25,998 thousand in Q2 2024, reflecting an increase of approximately 4.8%[74] - Interest income in Q2 2025 was $60,830 thousand, up from $48,710 thousand in Q2 2024, indicating a growth of around 24.8%[74] Asset and Portfolio Valuation - NAV per share decreased to $16.43 as of June 30, 2025, down from $16.63 as of March 31, 2025[13] - Total investments at fair value increased to $2,335 million by Q2 2025, up from $1,726 million in Q2 2024[19] - The fair value of the portfolio increased to $2.088 billion as of June 30, 2025, up from $2.002 billion at the end of the previous quarter[39] - The net asset value (NAV) per share as of June 30, 2025, is $16.63, reflecting an increase from $16.43 at the end of the previous quarter[38] - Non-accrual investments represented 3.0% of the total portfolio based on amortized cost as of June 30, 2025[13] Investment Activity - Record originations resulted in $375.7 million of fundings at CGBD, with a weighted average yield of 10.0%[13] - Total repayments and sales during the quarter were $138.0 million, with a weighted average yield of 10.9%[13] - New investment fundings in first lien debt totaled $372,335 thousand in Q2 2025, a significant increase from $77,431 thousand in Q2 2024[22] - First lien debt represented 85.6% of the total investment portfolio by Q2 2025, up from 70.9% in Q2 2024[19] Liquidity and Debt - Total liquidity as of June 30, 2025, was $613.1 million in cash and undrawn debt capacity[13] - Statutory leverage increased to 1.10x as of June 30, 2025, compared to 1.04x as of March 31, 2025[13] - The company upsized total commitments at its senior secured Credit Facility by $25.0 million, bringing total commitments to $960.0 million[14] - As of June 30, 2025, total commitments for balance sheet financing facilities amounted to $1.950 billion, with outstanding debt of $1.319 billion[34] - The weighted average maturity of the outstanding debt is 6.4 years, with a weighted average pricing of 6.34%[35] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.40 for Q3 2025, equating to an annualized dividend yield of 9.7%[13] - The company has an estimated $0.89 per share of spillover income available to support its quarterly dividend[45] - The company’s market capitalization is approximately $999 million, with a dividend yield of 9.7%[45] Management and Strategy - Carlyle Direct Lending targets middle market companies with EBITDA of $25 million or greater, focusing on non-cyclical firms backed by high-quality financial sponsors[64] - The company employs a disciplined underwriting process to deliver sustainable current cash income from predominantly first lien, secured, floating rate instruments[64] - Carlyle's investment strategy includes opportunistic credit solutions for non-sponsored companies, focusing on CLO tranches and structured equity[62] - The company emphasizes a defensive approach to lending, aiming to mitigate risks associated with market volatility[64] Non-GAAP Measures - Carlyle's non-GAAP measures, including Adjusted Net Investment Income, are used to evaluate financial results and performance, excluding one-time or non-recurring events[67] - The management emphasized the usefulness of non-GAAP financial measures for analyzing and evaluating financial results and performance[70] - The company uses non-GAAP financial measures to compare its financial results with those of other business development companies that do not have similar one-time or non-recurring events[70] - The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP[70] - The company believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends[70]