Carlyle Secured Lending(CGBD) - 2025 Q3 - Quarterly Results

Financial Performance - The company generated $0.37 per common share of net investment income and $0.38 per share after adjusting for asset acquisition accounting[13] - Total investment income for Q3 2024 was $55,965,000, a slight decrease from $56,354,000 in Q4 2024[17] - Net Investment Income for Q3 2024 was $24,009,000, compared to $24,171,000 in Q4 2024, reflecting a decrease of 0.67%[17] - Adjusted Net Investment Income per Common Share for Q3 2024 was $0.49, consistent with $0.47 in Q4 2024[18] - Net Investment Income for Q3 2025 was reported at $26,839, a decrease from $28,250 in Q2 2025, reflecting a decline of about 5%[77] - Interest income for Q3 2025 was $59,794, up from $60,830 in Q2 2025, showing a slight decrease of around 1.7%[77] Asset and Investment Growth - Total assets increased to $2,533,808,000 in Q1 2025 from $1,925,993,000 in Q4 2024, representing a growth of 31.5%[19] - Total investments at fair value reached $2,422,630,000 in Q3 2025, up from $1,709,537,000 in Q3 2024, indicating a growth of 41.6%[19] - Total Investments at Fair Value increased from $1,709,537 in Q3 2024 to $2,422,630 in Q3 2025, representing a growth of approximately 42%[75] Portfolio and Yield - The total fair value of the portfolio increased to $2.4 billion across 158 portfolio companies with a weighted average yield of 10.6%[13] - First lien debt constituted 85.7% of the total investment portfolio in Q3 2025, up from 72.2% in Q3 2024[19] - The weighted average yield at amortized cost for new investment fundings was 10.7% in Q3 2024[22] - As of September 30, 2025, total investments at fair value amounted to $2,423 million, with a weighted average yield on income-producing investments at amortized cost of 10.6%[27] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.40 for Q4 2025, equating to an annualized yield of 12.8% based on the stock price as of September 30, 2025[13] - The annualized dividend yield is 9.8%[51] - The company has repurchased $158 million worth of shares to date[51] - The historical dividend data shows a consistent payout, with recent dividends declared at $0.08 per share[51] Debt and Liquidity - Total liquidity was $594.6 million based on cash and undrawn debt capacity as of September 30, 2025[13] - The company upsized total commitments at its senior secured Credit Facility by $25.0 million, bringing total commitments to $960.0 million[13] - The weighted average maturity of the company's financing facilities is 6.1 years, with a total commitment of $1,975 million and outstanding debt of $1,316 million[39] - Debt and secured borrowings rose from $848,508 in Q3 2024 to $1,306,757 in Q3 2025, an increase of approximately 54%[75] Non-Accrual Investments - Non-accrual investments decreased to 1.6% and 1.0% of the total portfolio based on amortized cost and fair value, respectively[13] - Non-accrual investments represented 1.0% of total investments at fair value, a decrease from 2.1% in the prior period[46] - As of September 30, 2025, five borrowers were on non-accrual status, representing 1.0% of total investments at fair value[46] Non-GAAP Financial Measures - The company disclosed non-GAAP measures to provide additional insights into financial performance, including Adjusted Net Investment Income[79] - The company is disclosing Adjusted Net Investment Income and Adjusted Net Income Per Common Share, which are calculated on a non-GAAP basis[82] - The adjustments reflect management's view of the economic yield on the acquired assets and are consistent with the internal evaluation of performance[82] - The company believes these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends[82] Market Position and Strategy - The company has a market capitalization of $920 million with 73 million shares outstanding[51] - CGBD's NAV per share has remained relatively flat over the past 5 years, while BDC peers experienced an average decline of 8.8%[53] - The Carlyle Global Credit Platform has an AUM of $208 billion, with $49.4 billion in liquid credit and $33.2 billion in private credit[70] - Carlyle Direct Lending targets companies with EBITDA of $25 million or greater, primarily backed by high-quality financial sponsors[72] - The company employs a disciplined underwriting approach to deliver sustainable current cash income from predominantly first lien, secured, floating rate instruments[72] Operational Insights - The company reported a net increase in net assets resulting from operations of $18,736,000 in Q3 2024, compared to $20,482,000 in Q4 2024[17] - The company reported a net increase in net assets resulting from operations of $23,903 in Q3 2025, compared to $14,630 in Q2 2025, indicating a growth of about 63.5%[77] - The company anticipates potential substantial losses on loans that are operating below expectations and are out of compliance with debt covenants[50]