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Eagle Point Income Company Inc. Announces Second Quarter 2024 Common and Preferred Distributions

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Eagle Point Income Company Inc. (EIC) announces distributions on common stock and preferred stock. The company declared three distributions of $0.20 per share on common stock payable in April, May, and June 2024. Additionally, distributions were announced for the 5.00% Series A Term Preferred Stock due 2026 and the 7.75% Series B Term Preferred Stock due 2028.
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The declaration of distributions by Eagle Point Income Company Inc. is a tangible signal of the company's financial health and its ability to generate cash flow. The consistency of the payouts, with three separate distributions of $0.20 per share on common stock, suggests a stable income stream for investors. Furthermore, the distributions on the Series A and Series B Term Preferred Stock, with annual rates of 5.00% and 7.75% respectively, are in line with market expectations for such instruments.

From a financial analysis standpoint, the distribution rates can be compared to the current yield on cost for investors and benchmarked against sector averages and alternative investment opportunities. The preferred stock rates, in particular, are noteworthy as they often serve as a barometer for the company's creditworthiness and the perceived risk associated with its debt. The 7.75% rate on the Series B Term Preferred Stock is especially significant, as it may indicate a higher risk-reward profile compared to the Series A.

For stockholders, the tax implications of these distributions are an important consideration. The classification of the distributions—whether as net investment income, capital gains, or return of capital—will affect the tax treatment. For instance, a return of capital is not taxed immediately but reduces the cost basis of the investment, potentially increasing capital gains when the stock is sold. Stockholders should anticipate the Form 1099 after the end of the 2024 calendar year for precise tax reporting. The announcement indicates that the company is adhering to standard tax reporting procedures, which aids investors in their tax planning.

The announcement of these distributions may influence the company's stock performance in the short term, as distributions can be a factor in an investor's decision-making process. The market typically reacts positively to such news as it reflects a company's commitment to shareholder returns. However, it's also critical to assess the sustainability of these distributions. If they are funded by debt or by eroding capital, rather than from earnings, it could be a red flag for long-term financial stability.

Investors should also consider the broader economic context, including interest rate trends and market conditions, which could affect the attractiveness of these distributions. In a low-interest-rate environment, for example, the yields on these preferred stocks might be seen as particularly attractive, potentially increasing demand for the shares.

GREENWICH, Conn.--(BUSINESS WIRE)-- Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC, EICA, EICB) today is pleased to announce the declaration of distributions on shares of the Company’s common stock.

The Company has declared three separate distributions of $0.20 per share on its common stock payable on each of April 30, 2024, May 31, 2024 and June 28, 2024 to stockholders of record as of April 10, 2024, May 13, 2024 and June 10, 2024, respectively.

The following schedule applies to the distributions:

Record Date

Payable Date

Amount per common share

April 10, 2024

April 30, 2024

$0.20

May 13, 2024

May 31, 2024

$0.20

June 10, 2024

June 28, 2024

$0.20

Distributions on common stock are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Company’s stockholders on Form 1099 after the end of the 2024 calendar year.

The Company is also pleased to announce the declaration of distributions on shares of the Company’s 5.00% Series A Term Preferred Stock due 2026 (the “Series A Term Preferred Stock”) and the Company’s 7.75% Series B Term Preferred Stock due 2028 (the “Series B Term Preferred Stock”) as follows:

Preferred Stock Type

Amount per Share

of Preferred Stock

Record Dates

Payable Dates

5.00% Series A Term

Preferred Stock due 2026

$0.104167

April 10, 2024,

May 13, 2024,

June 10, 2024

April 30, 2024,

May 31, 2024,

June 28, 2024

7.75% Series B Term

Preferred Stock due 2028

$0.161459

April 10, 2024,

May 13, 2024,

June 10, 2024

April 30, 2024,

May 31, 2024,

June 28, 2024

The distributions on the Series A Term Preferred Stock reflect an annual distribution rate of 5.00% of the $25 liquidation preference per share of the Series A Term Preferred Stock. The distributions on the Series B Term Preferred Stock reflect an annual distribution rate of 7.75% of the $25 liquidation preference per share of the Series B Term Preferred Stock.

ABOUT EAGLE POINT INCOME COMPANY

The Company is a diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in junior debt tranches of CLOs. In addition, the Company may invest up to 35% of its total assets (at the time of investment) in CLO equity securities. The Company is externally managed and advised by Eagle Point Income Management LLC.

The Company makes certain unaudited portfolio information available each month on its website in addition to making certain other unaudited financial information available on its website (www.eaglepointincome.com). This information includes (1) an estimated range of the Company’s net investment income (“NII”) and realized capital gains or losses per share of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s net asset value (“NAV”) per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses per share for the applicable quarter, if available.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company’s other filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Investor and Media Relations:

ICR

203-340-8510

IR@EaglePointIncome.com

www.eaglepointincome.com

Source: Eagle Point Income Company Inc.

FAQ

What is the ticker symbol for Eagle Point Income Company Inc.?

The ticker symbol for Eagle Point Income Company Inc. is EIC.

When are the distributions on common stock payable?

The distributions on common stock are payable on April 30, 2024, May 31, 2024, and June 28, 2024.

What is the amount per share for the 5.00% Series A Term Preferred Stock?

The amount per share for the 5.00% Series A Term Preferred Stock is $0.104167.

What is the annual distribution rate for the Series B Term Preferred Stock?

The annual distribution rate for the Series B Term Preferred Stock is 7.75% of the $25 liquidation preference per share.

Eagle Point Income Company Inc.

NYSE:EIC

EIC Rankings

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EIC Stock Data

202.28M
12.96M
32.18%
3.95%
0.12%
Securities and Commodity Exchanges
Finance and Insurance
United States of America
Greenwich

About EIC

About Eagle Point Income Company is a non-diversified,closed-end management investment company. The Company's primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in junior debt tranches of CLOs. In addition, the Company may invest up to 20% of its total assets (at the time of investment) in CLO equity securities and related securities and instruments. The Company is externally managed and advised by Eagle Point Income Management LLC.