Q1 2026 Carlyle Secured Lending Inc Earnings Call Transcript
Key Points
- Carlyle Secured Lending Inc (CGBD) funded $217 million of investments and closed over $1.2 billion of new and incremental commitments, reflecting strong origination activity.
- The company reported a net investment income of $0.36 per share on both a GAAP and adjusted basis for the first quarter.
- CGBD's portfolio is diversified across 171 companies in more than 25 industries, with 94% of investments in senior secured loans.
- The Middle Market Credit Fund (MMCF) joint venture increased its total investments to over $1 billion, generating a 15% dividend yield.
- CGBD repurchased $19 million of shares at a 26% discount, resulting in $0.09 of accretion to NAV per share, and continued repurchases in the second quarter.
- Total investment income for the first quarter was $64 million, below the prior quarter due to a decrease in average portfolio size and lower portfolio yields.
- The net asset value decreased from $16.26 per share as of December 31 to $15.89 per share as of March 31, primarily due to market-related valuation factors.
- The base dividend was reset to $0.35 per share from $0.40, reflecting a dividend yield on NAV of 8.8%, to support a stable NAV and increase financial flexibility.
- Total aggregate realized and unrealized net loss for the quarter was about $29 million or $0.42 per share, driven by market volatility and credit-related impacts.
- The fair value of loans utilizing PIK provisions increased, although the majority were underwritten at origination or for performing borrowers.
Good day, and thank you for standing by. Welcome to Carlyle Secured Lending's first quarter 2026 earnings call. (Operator Instructions) Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nishil Mehta. Please go ahead.
Good morning, and welcome to Carlyle Secured Lending's first quarter 2026 earnings call. I'm joined by Alex Chi, CGBD's Chief Executive Officer; and Tom Hennigan, our President and Chief Financial Officer. This morning, 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 analysts and institutional investors. This call is being webcast, and a replay will be available on our website.
Any forward-looking statements made today do not guarantee future performance, and any undue reliance should not be placed
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