Blackstone Secured Lending Fund (BXSL) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly earnings and the highest net asset value per share since IPO, with the most active quarter for originations and strong capital deployment.

• Portfolio remains highly defensive, with 98.6% in first lien senior secured debt and a loan-to-value ratio of 47%.

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

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

• Distributions of $1.54 per share were declared for the first half of 2024, with a Q3 2024 dividend of $0.77 per share payable in October.

Financial highlights

• Net investment income was $173 million ($0.89/share), up from $0.87/share prior quarter; net income was $196 million ($1.01/share), up from $0.96/share.

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

• Total investment income rose 13% year-over-year to $327.1 million, driven by higher interest income.

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

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

Outlook and guidance

• Management expects continued steady dividends and NAV growth, with confidence in portfolio positioning and ability to deploy capital in a dynamic market.

• Portfolio expected to remain defensive with high first lien, senior secured exposure and focus on floating rate debt.

• Elevated interest rates have benefited net income, but further increases could pressure borrower credit quality.