Q3 2025 Carlyle Secured Lending Inc Earnings Call Transcript
Key Points
- Carlyle Secured Lending Inc (CGBD) reported strong originations across the platform, contributing to a net investment income of $0.37 per share on a GAAP basis and $0.38 after adjustments.
- The company declared a fourth quarter dividend of $0.40 per share, representing an attractive yield of over 12% based on the recent share price.
- CGBD's portfolio remains resilient with no direct or indirect exposure to recent bankruptcies like First Brands or Tricolor.
- The company maintains a strong track record of NAV preservation and below-average nonaccruals, with nonaccruals decreasing by 140 basis points at cost between June 30 and September 30.
- CGBD's portfolio is well-diversified, with 95% of investments in senior secured loans and an average exposure to any single portfolio company of less than 1% of total investments.
- CGBD's net asset value decreased slightly from $16.43 per share as of June 30 to $16.36 per share as of September 30.
- Total expenses increased slightly due to higher interest expenses, partly from the 2030 senior notes transitioning from fixed to floating rate swap.
- The company experienced a total aggregate realized and unrealized net loss of about $3 million or $0.04 per share, partly due to unrealized markdowns on select underperforming investments.
- There is ongoing pressure on spreads, with new originations showing a weighted average spread of just over 500 basis points, indicating tighter market conditions.
- CGBD anticipates earnings will trough in the next couple of quarters due to expected rate cuts, with longer-term growth dependent on ramping up joint ventures.
Good day, and thank you for standing by. Welcome to Carlyle Secured Lending, Inc.'s third quarter 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nishil Mehta, Head of Shareholder Relations. Please go ahead.
Good morning, and welcome to Carlyle Secured Lending's conference call to discuss the earnings results for the third quarter of 2025. I'm joined by Justin Plouffe, our Chief Executive Officer; and Tom Hennigan, our Chief Financial Officer.
Last night, we filed our Form 10-Q and issued a press release with a presentation of our results, which are available on the Investor Relations section of our website. Following our remarks today, we will hold a question-and-answer session for the analysts and institutional investors. This call is being webcast, and a replay will be available on our website.
Any forward-looking statements made
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