Blue Owl Capital Corporation (OBDC) Q1 2025 earnings summary

Executive summary

• Completed the merger with Blue Owl Capital Corporation III (OBDE), issuing 120.6 million shares and acquiring $4.4 billion in assets, expanding the portfolio to 236 companies and over $18 billion in total assets, making OBDC the second largest externally managed, publicly traded BDC.

• Net asset value (NAV) per share decreased to $15.14 from $15.26 at year-end 2024, mainly due to credit spread changes and select write-downs.

• Reported GAAP net investment income per share of $0.41 and adjusted NII per share of $0.39 for Q1 2025, both down from Q4 2024.

• Annualized return on equity for Q1 2025 was 10.2%.

Financial highlights

• Total portfolio investments at fair value reached $17.7 billion, up from $13.2 billion at year-end 2024.

• Total investment income for Q1 2025 was $464.6 million, up from $399.6 million year-over-year, driven by higher interest and dividend income from the expanded portfolio.

• Net investment income after taxes was $201.3 million, compared to $182.8 million in Q1 2024.

• Net leverage ratio was 1.26x debt-to-equity as of March 31, 2025, up from 1.19x at year-end 2024.

• Q1 2025 total dividends per share were $0.38, with a regular dividend of $0.37 and a supplemental dividend of $0.01; annualized dividend yield was 10.0% based on NAV.

Outlook and guidance

• Board declared a Q2 2025 regular dividend of $0.37 per share and a Q1 2025 supplemental dividend of $0.01 per share, maintaining consistency with prior quarters.

• Management expects investment income to vary with origination and repayment activity, with a continued focus on first lien originations to large borrowers and defensive, non-cyclical sectors.

• Portfolio company performance and risk ratings remain stable.