NCDL has announced a notable start to 2025, reporting a net asset value (NAV) per share of $17.96 for the first quarter. The firm attributes this success to the robust performance of its investment portfolio. According to company leadership, NCDL's portfolio is well-diversified, with an average position size of 0.5%, and only 0.4% of the portfolio is currently in non-accrual status based on fair value at the quarter's end.
Amidst market uncertainties, NCDL is committed to maintaining stringent underwriting standards, focusing on selective investments in high-quality enterprises, and actively managing its existing assets to ensure continued strong performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Nuveen Churchill Direct Lending Corp (NCDL, Financial) is $17.33 with a high estimate of $19.00 and a low estimate of $15.00. The average target implies an upside of 11.40% from the current price of $15.56. More detailed estimate data can be found on the Nuveen Churchill Direct Lending Corp (NCDL) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Nuveen Churchill Direct Lending Corp's (NCDL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
NCDL Key Business Developments
Release Date: February 27, 2025
- Return on Equity (ROE): 12.4% on net investment income for the full year 2024.
- Total Distributions: $2.10 per share for the year, yielding 11.6% based on year-end 2024 net asset value.
- New Investments: Over $950 million deployed, a 40% increase year-over-year.
- Unsecured Notes Issuance: $300 million issued in January 2025.
- Net Investment Income (Q4): $0.56 per share.
- Net Investment Income (Full Year): $2.26 per share.
- Net Asset Value (NAV) per Share: Increased to $18.18 at December 31, 2024, from $18.15 at the end of Q3.
- New Originations (Q4): $163 million.
- Portfolio Nonaccrual Status: Only one company on nonaccrual, representing 0.1% of the total portfolio at fair value.
- Total Investment Income (Q4): Increased by $8.1 million, nearly 17% year-over-year.
- Debt-to-Equity Ratio: 1.15 times at the end of Q4.
- Investment Portfolio Fair Value: $2.08 billion as of December 31, 2024.
- Weighted Average Yield on Debt and Income-Producing Investments: 10.3% at the end of Q4.
- Available Liquidity: $250 million at the end of Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nuveen Churchill Direct Lending Corp (NCDL, Financial) completed its initial public offering in January 2024 and listed on the New York Stock Exchange.
- The company generated a return on equity (ROE) of 12.4% on net investment income for the full year 2024.
- NCDL paid total distributions of $2.10 per share for the year, resulting in an attractive 11.6% yield based on year-end 2024 net asset value.
- The investment team deployed over $950 million in new investments, marking a 40% increase year-over-year.
- The investment portfolio remained resilient with only one portfolio company on nonaccrual status, representing 0.1% of the total portfolio at fair value.
Negative Points
- Net investment income in the fourth quarter was negatively impacted by approximately $0.01 per share of excise taxes and nonrecurring interest and debt financing expenses.
- The company's total GAAP net income decreased to $0.54 per share in the fourth quarter from $0.67 per share in the third quarter.
- The weighted average yield on debt and income-producing investments at cost declined to 10.3% at the end of the fourth quarter from 10.9% at the end of the third quarter.
- The debt-to-equity ratio increased to 1.15 times as of December 31, indicating higher leverage utilization.
- The company's net investment income per share decreased from $0.58 in the third quarter to $0.56 in the fourth quarter.
