May. 11 at 4:31 PM
$CION Q1 earnings fell as net investment income dropped to
$12.9 million, or
$0.25 per share, from
$18.3 million in the prior quarter, with management citing lower transaction activity, weaker dividend income and higher interest expense. CION said the shortfall versus its
$0.30 per share monthly base distributions was largely temporary and not a reflection of the portfolio’s long-term earnings power.
NAV declined 4.7% to
$13.11 per share, mainly due to unrealized mark-to-market losses and the company under-earning distributions. Management said most of the mark declines were driven by market factors such as public comp valuations and wider credit spreads, not fundamental credit deterioration.
Credit quality remained stable, with weighted average interest coverage at 2.08x and non-accruals improving to 1.53% of fair value. CION said its portfolio stayed heavily defensive, with about 81% in first-lien investments and roughly 98% risk-graded three or better.
