Carlyle Secured Lending, Inc. Announces Financial Results For Fourth Quarter and Full Year Ended December 31, 2024, Declares First Quarter 2025 Dividends of $0.45 Per Common Share Inclusive of the Supplemental Dividend
Rhea-AI Summary
Carlyle Secured Lending (NASDAQ: CGBD) reported strong Q4 and full-year 2024 financial results. The company achieved net investment income of $0.47 per share in Q4 and $2.00 per share for full-year 2024. The total fair value of investments increased to $1.8 billion as of December 31, 2024.
Net asset value (NAV) per common share slightly decreased by 0.3% to $16.80 from $16.85 in Q4. The Board declared a Q1 2025 dividend of $0.45 per share, consisting of a $0.40 base quarterly dividend plus a $0.05 supplemental dividend, payable on April 17, 2025.
The company's performance remained strong despite tightening market spreads and continued repricing activity. Since its inception in May 2013, CGBD has invested approximately $8.7 billion in aggregate principal amount of debt and equity investments.
Positive
- Net investment income of $0.47 per share exceeds base dividend
- Portfolio growth in Q4 2024
- Total investment fair value reached $1.8 billion
- Maintained consistent quarterly performance despite market challenges
- Strong full-year 2024 net investment income of $2.00 per share
Negative
- NAV per share declined 0.3% in Q4
- Market spread tightening affecting returns
- Continued repricing activity impacting portfolio
Insights
CGBD's Q4 results demonstrate resilience amid challenging market conditions, with NII of $0.47 per share comfortably exceeding the base dividend of $0.40. The full-year 2024 NII of $2.00 per share (adjusted $2.02) reflects a dividend coverage ratio of approximately 1.18x, providing a solid cushion for the company's distribution policy.
The slight NAV decline of 0.3% to $16.80 is minimal and likely reflects normal portfolio mark-to-market fluctuations rather than credit deterioration. More significantly, the growth in portfolio fair value to $1.8 billion indicates continued deployment opportunities despite competitive market conditions.
The declared Q1 2025 dividend of $0.45 per share (including a $0.05 supplemental) represents an annualized yield of approximately 10.3% at current prices, positioning CGBD in the mid-to-upper tier of BDC yields. The continuation of the supplemental dividend signals management confidence in sustained earnings power despite spread compression in the middle market lending space.
The refinancing of the 2015-1R CLO was strategically timed and should improve CGBD's cost of capital structure, potentially offsetting some of the margin pressure from tightening spreads and repricing activity. As a Carlyle-managed BDC, CGBD benefits from the broader platform's deal flow and credit expertise, providing competitive advantages in origination and underwriting.
Looking ahead, investors should monitor how CGBD navigates the competing pressures of spread compression versus potential benefits from stabilizing interest rates. The company's ability to grow its investment portfolio while maintaining credit quality will be important to sustaining current dividend levels throughout 2025.
NEW YORK, Feb. 25, 2025 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “CGBD” or the “Company”) (NASDAQ: CGBD) today announced its financial results for its fourth quarter and full year ended December 31, 2024. Justin Plouffe, CGBD’s Chief Executive Officer said, “CGBD produced a strong finish to 2024 with portfolio growth driven by fourth quarter net investment activity. Net investment income remained comfortably above our base dividend and consistent with the prior quarter, despite tightening market spreads and continued repricing activity. We are very pleased with our performance throughout the fourth quarter and 2024 broadly, and we look forward to building on this performance throughout 2025.”
Net investment income for the fourth quarter of 2024 was
Net investment income for 2024 was
Dividends
On February 18, 2025, the Board of Directors declared a base quarterly common dividend of
On December 11, 2024, the Company declared a cash dividend on the Preferred Stock for the period from October 1, 2024 to December 31, 2024 in the amount of
Conference Call
The Company will host a conference call at 11:00 a.m. Eastern Time on Wednesday, February 26, 2025 to discuss these quarterly financial results. The conference call will be available via public webcast via a link on Carlyle Secured Lending’s website and will also be available on our website soon after the call’s completion.
Non-GAAP Financial Measures
On a supplemental basis, the Company is disclosing Adjusted Net Investment Income Per Common Share, which is calculated and presented on a basis other than in accordance with GAAP (“non-GAAP”). The Company’s management uses this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company and to review the Company’s performance without giving effect to one-time or non-recurring investment income and expense events, including the effect on incentive fees. The presentation of this non-GAAP measure is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.
The Company’s management uses the non-GAAP financial measure described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not had similar one-time or non-recurring events. The Company’s management believes “Adjusted Net Investment Income Per Common Share” is useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to one-time or non-recurring events and are used by management to evaluate the economic earnings of the Company.
The following details the one-time or non-recurring events considered as part of the non-GAAP measure. The non-GAAP measure is reflected net of any incentive fee impacts, as applicable.
- On July 2, 2024, Carlyle Direct Lending CLO 2015-1R LLC, a wholly-owned and consolidated subsidiary of the Company, completed the refinancing of its outstanding notes by redeeming the notes in full and issuing new notes and loans (the “2015-1R CLO Reset”). Refer to Note 8, Borrowings, in the Company’s Form 10-K for the Annual Period ended December 31, 2024 for more information on the refinancing. In connection with the refinancing, the debt issuance costs were accelerated in accordance with GAAP.
Carlyle Secured Lending, Inc.
CGBD is an externally managed specialty finance company focused on lending to middle-market companies. CGBD is managed by Carlyle Global Credit Investment Management L.L.C., an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. Since it commenced investment operations in May 2013 through December 31, 2024, CGBD has invested approximately
Web: carlylesecuredlending.com
About Carlyle
Carlyle (“Carlyle,” or the “Adviser”) (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With
Contacts:
| Investors: | Media: |
| Nishil Mehta | Kristen Greco Ashton |
| +1-212-813-4928 | +1-212-813-4763 |
| publicinvestor@carlylesecuredlending.com | kristen.ashton@carlyle.com |
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