Overview

• US specialty lender's Q1 net investment income per share was $0.36, NAV per share fell 2.3%

• Company reset base dividend to $0.35 per share to match portfolio earnings

• Stable earnings attributed to consistent credit performance amid market volatility

Outlook

• Company says investment environment is increasingly attractive with expanding spreads on new originations

• Carlyle Secured Lending has reset base dividend to align with current portfolio earnings

• Company remains focused on leveraging platform and scaling joint ventures to take market share

Result Drivers

• CREDIT PERFORMANCE - Co said stable earnings were supported by consistent credit performance amid market volatility

• SPREAD EXPANSION - Co said spreads on new originations are expanding, positioning the portfolio for improved yields and stronger earnings power over time

• ORIGINATION AND JV SCALE - Co said it is focused on enhancing origination engine and scaling joint ventures, both of which ended the quarter with over $1 bln in assets

Company press release: ID:nGNX9wCgZP

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Dividend		$0.35
Q1 Net Asset Value Per Share		$15.89

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy."

• Wall Street's median 12-month price target for Carlyle Secured Lending Inc is $13.00, about 12.8% above its May 8 closing price of $11.52

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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