Sixth Street Specialty Lending (TSLX) investor relations material

Executive summary

• Net investment income per share was $0.42, with a net loss per share of $0.27 for Q1 2026 and annualized ROE of 9.9%.

• Net asset value (NAV) per share declined to $16.24 from $16.98 at year-end 2025, mainly due to unrealized losses from wider market spreads and lower market multiples.

• Portfolio is highly diversified, focused on U.S. middle-market companies, with 89.3% first-lien and 96.3% floating rate exposure.

• Base quarterly dividend was reduced to $0.42 per share to align with forward earnings power, with a supplemental dividend policy for excess earnings.

• Portfolio remains healthy with strong balance sheet and robust liquidity.

Financial highlights

• Total investment income for Q1 2026 was $93.4 million, down from $116.3 million in Q1 2025 and $108.2 million in Q4 2025, mainly due to lower reference rates.

• Net investment income was $39.8 million, compared to $58.0 million in Q1 2025.

• Net expenses decreased to $52.4 million from $57.0 million year-over-year, reflecting lower base rates and average interest rate on debt.

• Weighted average yield on debt and income-producing securities at fair value was 11.1% as of March 31, 2026.

• Distributions per share for Q1 2026 were $0.47.

Outlook and guidance

• Anticipates ROE of 10%-10.5% if portfolio turnover remains below 20% for the year; above 10.5% if repayment activity increases.

• Management continues to monitor macroeconomic and geopolitical risks, including inflation, interest rates, and regulatory changes.

• Dividend policy set at a sustainable level, with supplemental dividends to capture upside if activity accelerates.

• Expects activity-based fee income to normalize over several quarters post-volatility.

• The company expects to maintain sufficient liquidity and capital resources for ongoing operations and investment activities.