Blackstone Secured Lending Fund (BXSL) investor relations material

Executive summary

• Net investment income for Q2 2026 was $174 million ($0.75 per share), slightly below the $0.77 per share dividend, with the shortfall covered by undistributed earnings.

• Net assets at June 30, 2026 were $5.94 billion, with NAV per share at $25.53, down from $26.26 in the prior quarter, primarily due to unrealized net losses from spread widening and select underperforming assets.

• Portfolio remains predominantly first-lien senior secured debt (96.8%-97%), with 1.8% of investments on non-accrual at fair value and proactive management of underperforming borrowers.

• New investment activity exceeded $300 million, while repayments surpassed $700 million, representing a 21% annualized repayment rate.

• Net income was $9 million ($0.04 per share), compared to $0.11 per share in the prior quarter.

Financial highlights

• Total portfolio investments at fair value were $13.4 billion, with $7.6 billion in outstanding debt and $5.9 billion in net assets.

• Net investment income per share was $0.75 for Q2 2026, with a 12.1% annualized distribution yield.

• Weighted average yield on performing debt investments at fair value was 9.4%.

• NAV per share decreased to $25.53 from $26.26, impacted by $0.59 of unrealized net losses and $0.12 of realized net losses tied to two restructurings.

• Payment-in-kind (PIK) income was flat quarter-over-quarter at 6.6% of total investment income, down 20% since Q4 2025.

Outlook and guidance

• Management remains constructive on deal activity, with improving M&A and sponsor activity, especially in sectors like AI, digital infrastructure, and life sciences.

• Portfolio is positioned for steady earnings with a focus on risk mitigation and stable EBITDA growth across borrowers.

• Repayment activity is expected to continue, creating additional balance sheet capacity and flexibility for potential share repurchases or new deployments.

• Dividend expected to transition to a lower level aligned with long-term earnings, reflecting lower base rates and maturing lower-cost bonds.

• Forward-looking statements caution that actual results may differ due to various risks and uncertainties.