Company: PRIF-PJ
Filing Date: 2025-08-28
Form Type: N-CSR
Source: 0001554625-25-000057
Chunk: 2

Company: Priority Income Fund, Inc.
Filing Date: 2025-08-28
Form: N-CSR
Chunk 2
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 common shareholders for the 59th time since inception. Priority recently paid shareholders an annualized dividend yield of 21.83% , based on the June 30, 2025 net asset value per share of $6.14, covering 135% of the Company’s last twelve months’ net investment income exclusive of paid-in-kind interest and CLO equity adjustments. Priority has returned $489 million aggregate distributions since inception, representing $16.39 per share and a multiple of 2.67x of the June 30, 2025 net asset value.

– Priority has no financing maturities prior to December 2028. Priority has focused on deleveraging the Company by announcing four preferred stock series redemptions, including the 6.125% Series I Term Preferred Stock, 6.000% Series H Term Preferred Stock, 6.250% Series G Term Preferred Stock, and 6.625% Series F Term Preferred Stock, aggregating $138 million.

– During the year ended June 30, 2025, Priority purchased 15 CLO equity and seven CLO debt investments totaling $116.7 million in cost basis, and sold 12 CLO equity and 65 CLO debt investments totaling $196.1 million in cost basis. At year end, the Fund held 149 CLO Equity and 30 CLO B- and BB-rated debt investments secured by more than 2,000 senior-secured loans to nearly 1,500 issuers. As of June 30, 2025, the Fund has exited and realized 151 CLO transactions totaling $435M of net investments, with an average 10.7% realized internal rate of return and 1.27x multiple on invested capital.

– Priority ended fiscal year 2025 with $597M of total assets.

#### CLO Market Commentary
We believe the long-term fundamentals for the investments pursued by Priority remain compelling against a backdrop of recent market volatility and uncertainty. CLO market issuance set a full year record in 2024 with $202 billion in CLO issuance, and the first half of 2025 has continued to see strong market activity with $122.8 billion in CLO issuance, outpacing issuances seen during the first half of 2024 by 7%. [2] Third party research analysts project 2025 CLO market issuance volumes of $200-$210 billion. [3]

Throughout the first half of 2025, we observed CLO debt