Nuveen Churchill Direct Lending Corp. Reports Q1 2025 Financial Results with Increased Investment Income

Nuveen Churchill Direct Lending Corp. reported its financial results for the first quarter of 2025, revealing a total investment income of $53.6 million, an increase from $51.6 million in the same period last year. The growth in revenue was primarily driven by higher interest income from debt investments, which rose to $50.8 million from $49.1 million year-over-year. However, the company experienced a decline in net investment income, which fell to $27.5 million, or $0.53 per share, compared to $29.7 million, or $0.56 per share, in the prior year. The decrease in net investment income was attributed to increased interest and debt financing expenses, which rose to $20.6 million from $16.9 million.

The company's total assets as of March 31, 2025, were reported at $2.17 billion, a slight increase from $2.14 billion at the end of 2024. Notably, the fair value of investments decreased to $2.08 billion from $2.08 billion, reflecting a net change in unrealized losses of $13.6 million during the quarter. The company’s net assets also declined to $920 million from $970 million, resulting in a net asset value per share of $17.96, down from $18.18 at the end of the previous quarter.

In terms of strategic developments, Nuveen Churchill Direct Lending Corp. completed a refinancing of its 2022 Debt Securitization on March 20, 2025, raising $457.9 million through the issuance of new notes. This refinancing is expected to enhance the company's liquidity and financial flexibility. Additionally, the company has established an at-the-market offering program, allowing it to sell up to $200 million in shares to support its investment activities and repay debt.

Operationally, the company reported a portfolio consisting of 210 companies, with a weighted average annual EBITDA of $76.3 million. The weighted average yield on debt and income-producing investments at cost decreased to 10.10% from 10.33% in the previous quarter, primarily due to tightening spreads in new investments. The company also noted that approximately 94.55% of its debt investments bear interest at a floating rate, which exposes it to interest rate risk, particularly in a volatile economic environment.

Looking ahead, Nuveen Churchill Direct Lending Corp. remains cautious about the economic landscape, particularly regarding the impact of changing trade policies and interest rates on its portfolio companies. The company plans to continue focusing on investments in defensive businesses with strong cash flow generation capabilities. The management expressed confidence in its liquidity position, supported by cash flows from investments and available credit facilities, which are expected to meet its near-term capital requirements.