\nEagle Point Income Company Inc. (the \u201cCompany\u201d) (NYSE: EIC) today announced financial results for the quarter and fiscal year ended December 31, 2020, net asset value (\u201cNAV\u201d) as of December 31, 2020 and certain additional activity through February 9, 2021.\n<\/p>\n
FOURTH QUARTER 2020 HIGHLIGHTS<\/b><\/p>\n SUBSEQUENT EVENTS<\/b><\/p>\n \n\u201cOur fourth quarter performance was very strong, further validating the resiliency and attractiveness of the CLO asset class and CLO junior debt in particular,\u201d said Thomas Majewski, Chairman and Chief Executive Officer. \u201cFor the quarter, we generated net investment income and realized gains of $0.29, well above our distribution level. Our portfolio\u2019s value increased by 14% from the prior quarter end and 100% of our investments continue to make their regularly scheduled payments. Owing to the strength of the Company\u2019s recent financial performance, we were pleased to increase our monthly distributions by 6.25% beginning in April.\u201d\n<\/p>\n FOURTH QUARTER 2020 RESULTS<\/b><\/p>\n \nThe Company\u2019s NII and realized gain on investments for the quarter ended December 31, 2020 was $0.29 per weighted average common share. This compared to $0.28 of NII per weighted average common share for the quarter ended September 30, 2020 and $0.31 of NII per weighted average common share for the quarter ended December 31, 2019.\n<\/p>\n \nFor the quarter ended December 31, 2020, the Company recorded GAAP net income of $15.1 million, or $2.48 per weighted average common share. The net gain was comprised of total investment income of $2.5 million, net unrealized appreciation on investments of $13.3 million and net realized gain on investments of $0.1 million, partially offset by total expenses of $0.8 million.\n<\/p>\n \nNAV as of December 31, 2020 was $103.1 million, or $16.89 per common share, which is $2.05 per common share higher than the Company\u2019s NAV as of September 30, 2020, and $2.45 per common share lower than the Company\u2019s NAV as of December 31, 2019.\n<\/p>\n \nDuring the quarter ended December 31, 2020, the Company deployed $2.5 million in net capital.\n<\/p>\n \nAs of December 31, 2020, the weighted average effective yield on the Company\u2019s CLO debt and equity portfolio, based on amortized cost, was 9.03%, compared to 8.84% as of September 30, 2020 and 9.34% as of December 31, 2019.\n<\/p>\n PORTFOLIO STATUS<\/b><\/p>\n \nAs of December 31, 2020, on a look-through basis, and based on the most recent CLO trustee reports received by such date, the Company had indirect exposure to approximately 1,281 unique corporate obligors. The largest look-through obligor represented 1.4% of the Company\u2019s CLO debt and equity portfolio. The top-ten largest look-through obligors together represented 6.4% of the Company\u2019s CLO debt and equity portfolio.\n<\/p>\n \nAs of December 31, 2020, the Company had $14.8 million in outstanding borrowings from the revolving credit facility, representing leverage of 12.6% of total assets (less current liabilities).Over the long term, management expects the Company to operate under normal market conditions generally with leverage of approximately 20% of total assets. Based on applicable market conditions at any given time, or should significant opportunities present themselves, the Company may incur leverage in excess of this amount, subject to applicable regulatory limits.\n<\/p>\n FIRST QUARTER 2021 PORTFOLIO ACTIVITY THROUGH FEBRUARY 9, 2021 AND OTHER UPDATES<\/b><\/p>\n \nFrom January 1, 2021 through February 9, 2021, the Company deployed $6.0 million in net capital.As of February 9, 2021, the Company had approximately $11.0 million of cash and capacity on its revolving credit facility available for investment.\n<\/p>\n \nAs previously published on the Company\u2019s website, management\u2019s estimate of the Company\u2019s range of NAV per common share as of January 31, 2021 was $17.22 to $17.26.\n<\/p>\n DISTRIBUTIONS<\/b><\/p>\n \nThe Company paid a monthly distribution of $0.08 per common share on January 29, 2021 to stockholders of record as of January 12, 2021. Additionally, and as previously announced, the Company declared distributions of $0.08 per share of common stock payable on February 26, 2021 and March 31, 2021 to stockholders of record as of February 12, 2021 and March 12, 2021, respectively; and distributions of $0.085 per share of common stock payable on April 30, 2021, May 28, 2021 and June 30, 2021 to stockholders of record as of April 12, 2021, May 10, 2021 and June 10, 2021, respectively. The ability of the Company to declare and pay distributions is subject to a number of factors, including the Company\u2019s results of operations.\n<\/p>\n \nDistributions 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\u2019s stockholders on Form 1099 after the end of the 2021 calendar year.\n<\/p>\n CONFERENCE CALL<\/b><\/p>\n \nThe Company will host a conference call at 11:30 a.m. (Eastern Time) today to discuss the Company\u2019s financial results for the quarter ended December 31, 2020, as well as a portfolio update.\n<\/p>\n \nAll interested parties may participate in the conference call by dialing (877) 407-0789 (domestic) or (201) 689-8562 (international). Please reference Conference ID 13715044 when calling and you are invited to dial in approximately 10 to 15 minutes prior to the start of the call.\n<\/p>\n \nA live webcast will also be available on the Company\u2019s website (www.eaglepointincome.com<\/a>). Please go to the Investor Relations section at least 15 minutes prior to the call to register, download and install any necessary audio software.\n<\/p>\n \nAn archived replay of the call will be available shortly afterwards until March 23, 2021. To hear the replay, please dial (844) 512-2921 (toll-free) or (412) 317-6671 (international). For the replay, enter Conference ID 13715044.\n<\/p>\n ADDITIONAL INFORMATION<\/b><\/p>\n \nThe Company has made available on the investor relations section of its website, www.eaglepointincome.com<\/a> (in the financial statements and reports section), its 2020 Stockholder Letter and Annual Report, which includes the Company\u2019s audited financial statements as of and for the period ended December 31, 2020. The Company also published on its website (in the presentations and events section) an investor presentation, which contains additional information about the Company and its portfolio as of and for the quarter ended December 31, 2020. The Company has filed these reports with the Securities and Exchange Commission.\n<\/p>\n ABOUT EAGLE POINT INCOME COMPANY<\/b><\/p>\n \nThe Company is a non-diversified, closed-end management investment company. The Company\u2019s 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.\n<\/p>\n \nThe 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<\/a>). This information includes (1) an estimated range of the Company\u2019s net investment income (\u201cNII\u201d) and realized 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\u2019s net asset value (\u201cNAV\u201d) 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\u2019s NII and realized gains or losses per share for the applicable quarter, if available.\n<\/p>\n FORWARD-LOOKING STATEMENTS<\/b><\/p>\n This press release may contain \u201cforward-looking statements\u201d 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\u2019s other filings with the SEC. 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.<\/i><\/p>\n\n
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