On August 7, 2024, Blackstone Secured Lending Fund (BXSL, Financial) released its 8-K filing reporting its second quarter 2024 results. Blackstone Secured Lending Fund is a non-diversified, closed-end management investment company with the primary objective of generating current income and, to a lesser extent, long-term capital appreciation through originated loans and other securities of private U.S. companies.
Performance Highlights
Blackstone Secured Lending Fund (BXSL, Financial) reported net investment income of $173 million, or $0.89 per share, slightly below the analyst estimate of $0.90 per share. However, the company achieved a net income of $196 million, or $1.01 per share, surpassing the previous quarter's $0.96 per share and the analyst estimate of $0.98 per share. The company's revenue for the quarter was $327 million, exceeding the estimated $316.87 million.
Brad Marshall and Jonathan Bock, Co-Chief Executive Officers of Blackstone Secured Lending Fund, commented,
“BXSL reported the best quarterly earnings on a dollar basis, the highest net asset value per share, and the most active quarter for originations since our IPO in 2021. Credit performance remains strong, underpinned by what we believe is a defensive portfolio that is 98.6% first lien, senior secured debt, reflecting a loan-to-value ratio of approximately 47%.”
Financial Achievements
BXSL's net asset value (NAV) increased to approximately $5.4 billion, or $27.19 per share, up from $26.87 per share in the prior quarter. The company declared a third-quarter dividend of $0.77 per share, representing a dividend yield of 11.3%. The dividend coverage ratio stood at 116%, indicating strong earnings support for the dividend.
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Net Investment Income | $171 million | $173 million |
| Net Income | $145 million | $196 million |
| Net Investment Income per Share | $1.06 | $0.89 |
| Net Income per Share | $0.90 | $1.01 |
| Regular Dividends per Share | $0.70 | $0.77 |
Portfolio and Investment Activity
The fair value of BXSL's investments reached approximately $11.3 billion as of June 30, 2024. The company reported new investment commitments of $1.3 billion at par, with $0.9 billion funded. Proceeds from sales and repayments amounted to $89 million, generating net realized gains of $0.2 million. The portfolio remains well-positioned with investments in companies with healthy fundamentals and only two issuers on non-accrual.
Analysis and Outlook
BXSL's performance in Q2 2024 demonstrates its robust earnings capacity, driven by a defensive portfolio and a favorable interest rate environment. The company's focus on first lien, senior secured debt, and a low loan-to-value ratio provides a strong foundation for continued stability and growth. The increase in NAV and the consistent dividend payout further underscore the company's financial health and commitment to delivering value to shareholders.
For more detailed information, readers can access the full earnings report through the 8-K filing.
Explore the complete 8-K earnings release (here) from Blackstone Secured Lending Fund for further details.
