CION Investment Corp. Reports Decrease in Net Investment Income and Net Assets for 2024

CION Investment Corp. (CION) reported its financial performance for the year ended December 31, 2024, in its recent 10-K filing. Total investment income reached $252.4 million, compared to $251.0 million in 2023. Net investment income after taxes decreased to $95.9 million in 2024 from $105.0 million in 2023, primarily due to increased interest expense. The net increase in net assets resulting from operations was $33.9 million in 2024, down from $95.3 million in 2023. This decrease reflects a net realized loss on investments and foreign currency of $28.3 million and a net change in unrealized depreciation on investments of $33.6 million.

Significant changes compared to the previous fiscal year include a decrease in net investment income and a substantial reduction in the net increase in net assets resulting from operations. The company attributed the decrease in net investment income to higher interest expense resulting from higher average borrowings, partially offset by lower SOFR rates. The decrease in net assets resulted from realized losses on investment restructuring and write-offs, and mark-to-market price changes on certain investments. As of December 31, 2024, CION had total outstanding consolidated indebtedness of approximately $1.12 billion, with $425.0 million secured. The company's asset coverage ratio was 174%, down from 181% in 2023.

Strategic developments included the renewal of the administration agreement with CIM on August 6, 2024, for a twelve-month period. Shareholders also approved a proposal authorizing the issuance of common stock at prices below NAV per share, although no such shares had been issued by year-end. On February 13, 2025, a subsidiary, Murray Hill Funding II, terminated a senior secured repurchase facility with UBS and entered into a new Loan and Security Agreement, reducing the floating interest rate payable. A quarterly base distribution of $0.36 per share was declared for the first quarter of 2025.

Operationally, CION's investment portfolio consisted of 105 portfolio companies as of December 31, 2024, with an average annual EBITDA of $53.6 million and a median of $34.2 million. The portfolio's gross annual yield was 10.96%. The company's investment strategy focuses on senior secured debt of private U.S. middle-market companies. CION does not currently employ any staff; all operational and investment activities are managed by CIM. As of March 5, 2025, CION had 1,789 record holders of common stock.

CION's outlook anticipates quarterly base distributions to continue, subject to legal restrictions and board discretion. However, the company cautions that maintaining positive investment performance is necessary to sustain distributions. The company also highlights several risk factors, including those related to its business structure, CIM's management, BDC regulations, investment risks, debt financing, and general economic conditions. These risks could materially and adversely affect the company's financial condition and results of operations.