Carlyle Credit Income Fund Cuts Dividend to $0.06 and Posts 13.56% GAAP Yield
CCIF reported core net investment income of $0.32 per share, NAV of $5.17 and GAAP yield of 13.56% after funding $13.1 million of CLO investments in Q1 ending December 31, 2025. The fund cut its dividend to $0.06 per share (20% annualized) and refinanced $52 million of 8.75% preferred shares into 7.33% shares.
1. First Quarter Financial Results
CCIF reported net investment income of $0.09 per common share, adjusted net investment income of $0.17 and core net investment income of $0.32 for the quarter ended December 31, 2025. Net asset value per share was $5.17 and the total fair value of investments reached $181.8 million, with a portfolio GAAP yield of 13.56%.
2. Dividend Reduction
The fund declared a monthly dividend of $0.06 per share for March through May 2026, representing a 20% annualized yield based on February 23 share price. Management emphasized that the reduced dividend remains fully covered by core net investment income despite challenging market conditions.
3. CLO Investment and Portfolio Management
During the quarter, the fund funded $13.1 million in new CLO investments at a weighted average GAAP yield of 13.55% and completed three resets in the underlying CLO equity portfolio, extending reinvestment runway and enhancing future cash flow potential.
4. Capital Management
CCIF refinanced $52 million of 8.75% Series A preferred shares with new preferred shares carrying a weighted average coupon of 7.33%, issued $30 million of 7.375% Series D preferred stock and completed a private placement of 7.25% Series E convertible preferred shares for net proceeds of approximately $16.3 million.