At the conclusion of the first quarter, BXSL reported a Net Asset Value of $6.2 billion, equating to $27.39 per share. The company achieved a net investment income of 83 cents per share, which comfortably covered its dividend by 108%. Credit quality remained robust, with negligible non-accruals, supported by a formidable 98.2% allocation in first lien senior secured debt. This portfolio boasts a loan-to-value ratio of 47.4%. During times of market unpredictability, BXSL leverages the substantial resources and strategic advantages of Blackstone to bolster its portfolio companies and deliver value to shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Blackstone Secured Lending Fund (BXSL, Financial) is $32.79 with a high estimate of $35.00 and a low estimate of $29.00. The average target implies an upside of 11.33% from the current price of $29.45. More detailed estimate data can be found on the Blackstone Secured Lending Fund (BXSL) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, Blackstone Secured Lending Fund's (BXSL, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Blackstone Secured Lending Fund (BXSL, Financial) in one year is $58.77, suggesting a upside of 99.56% from the current price of $29.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Blackstone Secured Lending Fund (BXSL) Summary page.
BXSL Key Business Developments
Release Date: February 26, 2025
- Net Investment Income (NII): $0.84 per share, representing a 12.3% annualized return on equity.
- Net Asset Value (NAV) per Share: Increased by $0.12 to $27.39.
- New Debt Issuance: Nearly $1.2 billion issued through CLOs at a weighted average spread of 154 basis points over SOFR.
- Management Fee and G&A Costs: Among the lowest as a percentage of NAV across traded BDC peers.
- Non-Accrual Investments: 0.3% at cost and 0.2% at fair market value.
- Total Investments at Fair Value: $13.1 billion, a 9% increase from Q3.
- Liquidity Position: Increased to $2.4 billion.
- Weighted Average Yield on Performing Debt Investments: 10.4% this quarter.
- Dividend Distribution: Maintained at $0.77 per share.
- Total Investment Income: Record for the fund, up $49 million or 16% year over year.
- Outstanding Debt: Nearly $7.1 billion.
- Repayment Rate: 6% of the portfolio at fair value for 2024.
- Weighted Average Interest Rate on Borrowings: 5.17%, down from 5.45% last quarter.
- Leverage: Ending leverage at 1.1 times, slightly up from 1.12 times in Q3.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Blackstone Secured Lending Fund (BXSL, Financial) reported a record total investment income for the fourth quarter.
- Net asset value per share increased for the ninth consecutive quarter, reaching $27.39.
- BXSL issued nearly $1.2 billion of new debt at market-tight spreads, showcasing strong financial management.
- The fund maintains a low non-accrual rate of 0.3% at cost, significantly below the industry average.
- BXSL's portfolio is predominantly composed of first lien secured loans, providing a strong defensive position.
Negative Points
- The start of the year is off to the slowest start since 2003 in terms of new M&A activity.
- The weighted average yield on performing debt investments decreased from 11.2% to 10.4% quarter-over-quarter.
- There is market uncertainty around tariffs and policy changes, potentially impacting future M&A activity.
- BXSL's new investments have lower average EBITDA compared to the rest of the portfolio, indicating a shift towards smaller companies.
- Spreads on new investments have tightened, which could impact future returns if not managed carefully.
