Nuveen Churchill Direct Lending Corp. (NCDL) reported net investment income (NII) of $0.53 per share for the first quarter ended March 31, 2025. The company's Board of Directors declared a second-quarter 2025 regular distribution of $0.45 per share, payable on July 28, 2025, to shareholders of record as of June 30, 2025. The portfolio's fair value remained stable at $2.08 billion, with approximately 90.5% invested in first-lien debt.
Investment income for the quarter increased to $53.6 million from $51.6 million in the prior year's quarter, primarily due to increased investment activity. However, the weighted average yield of debt and income-producing investments decreased to 10.10% from 11.55% as of March 31, 2024, reflecting market spread tightening and declining base interest rates. Net expenses increased to $26.1 million, driven by higher interest and debt financing expenses, and management fees.
NCDL recorded a net change in unrealized loss of $(13.6) million, primarily due to the underperformance of certain portfolio companies, and non-accruals increased to two portfolio companies, representing 0.4% of total investments at fair value. During the quarter, NCDL issued $300 million of unsecured notes and refinanced a CLO, which is expected to reduce borrowing costs. The adviser's waiver of incentive fees on income and capital gains concluded with this quarter, impacting future expense structures.
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