Eagle Point Income (NYSE:EIC) reported third-quarter 2026 net investment income less realized losses of $0.67 per share, more than twice its quarterly distributions, as an early repayment of a private infrastructure credit investment boosted earnings.
The repayment contributed $0.30 per share, Chairman and Chief Executive Officer Thomas Majewski said on the company’s earnings call. Excluding that contribution, normalized net investment income and realized gains were $0.37 per share, compared with total quarterly distributions of $0.33 per share.
Net asset value was $12.39 per share at Sept. 30, down 1% from June 30. The company estimated that NAV fell further in October, to a range of $11.92 to $12.02 per share. The midpoint represented a 3% decline from September.
Quarterly Results and Distributions
Net investment income was $0.73 per share for the third quarter, said Lena Umnova, chief accounting officer for the company’s advisor. After realized investment losses, the $0.67-per-share result compared with negative $0.29 in the second quarter of 2026 and positive $0.26 in the third quarter of 2025.
Including unrealized losses, GAAP net income attributable to common shareholders was $4.6 million, or $0.20 per share. That compared with $0.84 per share in the preceding quarter and $0.43 per share a year earlier.
Investment portfolio cash flows totaled $9 million, or $0.40 per share, during the quarter, compared with aggregate equity distributions and total expenses of $0.44 per share, Umnova said.
Eagle Point paid three monthly distributions of $0.11 per share during the quarter and declared monthly distributions at the same rate through the first quarter of 2027.
Portfolio Activity and Financing
The company deployed $31 million across 16 new investments during the quarter at a weighted average effective yield of 15.6%. Majewski said the investments included infrastructure credit, portfolio debt securities, regulatory capital relief transactions, asset-backed securities, specialty financings and equipment leasing.
Infrastructure investments represented just under 10% of the portfolio, Majewski said in response to an analyst’s question. He said that share could rise as opportunities emerge, although the company does not have a specific target for the asset class.
At Sept. 30, 53% of the portfolio consisted of floating-rate collateralized loan obligation, or CLO, debt investments. Management said a predominantly floating-rate portfolio could benefit from higher benchmark rates. Majewski noted that CLO BB securities typically reset quarterly, so the effect of a rate increase would not be immediate.
Eagle Point issued about $1 million of its 6% Series AA convertible perpetual preferred shares during the quarter and expects to issue more in coming quarters, Majewski said. The company’s leverage ratio was 17.3% at September month-end, below its 25% to 35% target range under normal market conditions. Umnova said the company expects leverage to rise over time as it continues its convertible perpetual preferred stock program.
On Oct. 30, the company repaid $38 million of Series A term preferred stock at its scheduled maturity. At October month-end, it had more than $9 million of available cash and revolver capacity for investments and other purposes, Umnova said.
Loan Market and NAV Outlook
Dan Ko, senior principal and portfolio manager for Eagle Point’s advisor, said the S&P UBS Leveraged Loan Index returned 2.0% in the third quarter. Loan prices improved modestly and underlying spreads were relatively stable, he said, while CLO equity valuations remained under pressure from weaker investor sentiment and broader market conditions.
The trailing 12-month leveraged loan default rate fell to 0.6% at Sept. 30 from 1.0% at June 30, Ko said. Eagle Point’s look-through exposure to defaulted loans was 22 basis points at quarter-end.
During the question-and-answer session, Ko said CLO equity holdings had driven the recent NAV decline, while CLO BB securities and the company’s other private credit investments had remained relatively stable. He said a recovery in loan prices could support valuations and that the company was involved in refinancing and reset efforts intended to reduce CLO debt costs and improve equity cash flows over time.
Ko also said Eagle Point’s broader BB strategy favors higher-quality, more tradeable securities over some less-liquid alternatives. He clarified that data discussed in the company’s updated investor presentation covered the broader BB strategy, not just Eagle Point Income’s portfolio.
About Eagle Point Income (NYSE:EIC)
Eagle Point Income Company, Inc. (NYSE: EIC) is a closed-end management investment company focused primarily on generating current income and, to a lesser extent, capital appreciation. The company invests mainly in collateralized loan obligations (CLOs), which are securities backed by portfolios of senior secured loans made to corporate borrowers. EIC typically invests across different levels of the CLO capital structure, including debt tranches and equity interests. Its portfolio may also include other investments related to corporate credit and structured finance.
