Blackstone Secured Lending Fund (BXSL) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly earnings and highest net asset value per share since IPO, with the most active quarter for originations and strong portfolio growth; portfolio remains 98.6% first lien, senior secured debt with a loan-to-value ratio of 47%.

• Net investment income for Q2 2024 was $173.1 million ($0.89 per share), up from $0.87 per share prior quarter, driven by higher average investments at fair value.

• Declared a third quarter 2024 dividend of $0.77 per share, payable in October 2024.

• Portfolio grew to $11.3 billion at fair value, diversified across 231 companies and 36 industries.

• Credit performance remains strong with only two issuers on non-accrual and 0.3% of debt investments on non-accrual.

Financial highlights

• Net income was $196 million ($1.01 per share), up from $0.96 per share prior quarter; total investment income rose 13% year-over-year to $327.1 million.

• Net asset value per share increased 1.2% to $27.19, marking the seventh consecutive quarter of NAV growth.

• Weighted average yield on debt investments at fair value was 11.6% at quarter-end.

• Dividend yield based on NAV was 11.3%, with a coverage ratio of 116%.

• Portfolio investments at fair value reached $11.3 billion, up over 8% from Q1.

Outlook and guidance

• Management expresses confidence in portfolio positioning and ability to deploy capital in a dynamic market, expecting continued strong credit performance and adaptability.

• Positioned to operate effectively as interest rates may begin to fall, with significant balance sheet capacity and focus on high first lien, senior secured exposure.