Key Highlights

  • Net Investment income of USD 18.8 million, or USD 0.38 per share, fell short of the USD 0.39 consensus estimate.
  • Non-controlled income of USD 42.4 million missed the consensus estimate of USD 43.72 million, down from USD 51.1 million.
  • Net asset value per share fell to USD 17.13 from USD 17.72 at the end of 2025.
  • Nine portfolio companies were on non-accrual at USD 49.2 million of cost, or 2.57% of total investments.

Nuveen Churchill Direct Lending Corp. (NYSE:NCDL) reported third quarter 2026 net investment income of USD 18.8 million, or USD 0.38 per share, compared with USD 21.4 million a year earlier and a consensus estimate of USD 0.39 per share. Investment income from non-controlled and non-affiliate investments was USD 42.4 million against USD 51.1 million, below a consensus estimate of USD 43.72 million. Total investment income, including USD 1.3 million from controlled and affiliate investments, was USD 43.7 million.

The net increase in net Assets from operations was USD 16.0 million, or USD 0.32 per share, compared with USD 18.7 million, or USD 0.38, a year earlier. Net realized losses of USD 4.0 million and a net unrealized gain of USD 1.2 million left total net realized and unrealized losses at USD 2.8 million.

Expenses, Yield and Credit Quality

Total expenses fell to USD 24.9 million from USD 29.7 million, as interest and Debt Financing expenses dropped to USD 15.6 million from USD 19.2 million. The average annual Interest Rate on borrowings was 5.65% against 6.64%, and average daily borrowings were USD 1.0 billion against USD 1.1 billion. The weighted average yield on debt and income producing investments was 9.65% at cost, versus 9.48% at year end 2025 and 9.92% a year earlier, with 93.90% of debt investments at floating rates.

The nine month net realized loss of USD 18.0 million stemmed from six underperforming debt positions, three restructured and three amended. Non-accrual investments covered nine companies at USD 49.2 million of cost against four companies and USD 24.4 million at the end of 2025. The company formed Senior Loan Fund I on July 7, 2026, which held 95 portfolio companies and USD 147.5 million of investments at Fair Value at September 30.

Distributions, Liquidity and Capital Position

On October 28, 2026 the board declared a regular distribution of USD 0.36 per share and a supplemental distribution of USD 0.02 per share, payable on or around January 28, 2027 to holders of record on December 31, 2026. Distributions declared in the quarter totaled USD 18.8 million. From October 1 through October 30, an agent repurchased 278,294 shares for about USD 3.0 million under the 10b5-1 plan.

The company held USD 216.0 million of availability under its revolving credit facility, and its asset coverage ratio was 181.16% against a 150% minimum. It cautioned that deteriorating economic conditions or market Volatility could restrict future financing access. During the period it redeemed CLO-III and added to its 2030 Notes, recording USD 1.5 million of non-recurring financing expense for the nine months.

Net Asset Value, Debt and Payout Against Prior Levels

Net asset value per share of USD 17.13 compares with USD 17.72 at December 31, 2025, with total net assets of USD 846.2 million against USD 875.2 million. Nine month net investment income of USD 1.20 per share compares with distributions of USD 1.16 per share, while the quarterly regular and supplemental declaration of USD 0.38 per share sits against net investment income of USD 0.38.

Total debt obligations were USD 1,042.6 million against USD 1,114.1 million, with the 2030 Notes rising to USD 400 million from USD 300 million. The share price closed the period at USD 11.24 against USD 17.13 of net asset value, and non-accruals stood at 2.57% of cost against 1.22%.