Q3 2024 Blackstone Secured Lending Fund Earnings Call Transcript
Key Points
- BXSL reported strong quarterly results with growth in net investment income and net asset value, reflecting the power and scale of the Blackstone platform.
- The fund's net investment income of $0.91 per share represents a 13.4% annualized return on equity, up from $0.89 per share in the prior quarter.
- BXSL's dividend of $0.77 per share is well covered at 118% and represents an 11.3% annualized dividend yield, one of the highest among traded BDC peers.
- Moody's upgraded BXSL's credit rating from Baa3 to Baa2, making Blackstone the only manager with two BDCs with this distinction.
- BXSL ended the quarter with $1.1 billion in new commitments and $956 million in fundings, marking the highest quarter of fundings since 2021.
- The weighted average yield on performing debt investments decreased to 11.2% this quarter from 11.6% last quarter.
- BXSL's leverage was relatively flat compared to the prior quarter, which may limit potential for increased returns through leverage.
- The market environment remains competitive, with tight spreads and rising numbers of new credit funds.
- BXSL's portfolio turnover rate is currently low, with year-to-date repayment rate at 6%, compared to 10% for all of 2023.
- Despite optimism for increased deal activity, the timing and extent of this activity remain uncertain, which could impact future earnings.
Good day, and welcome to the Blackstone Secured Lending Third Quarter 2024 Investor Call. Today's conference is being recorded. (Operator Instructions) At this time, all participants are in a listen-only mode. (Operator Instructions)
At this time, I'd like to turn the conference over to Stacy Wang, Head of Stakeholder Relations. Please go ahead.
Thank you, Katie. Good morning, and welcome to Blackstone Secured Lending Fund third quarter conference call. Joining me today are Brad Marshall, Co-Chief Executive Officer; Jonathan Bock, Co-Chief Executive Officer; Carlos Whitaker, President; and Teddy Desloge, Chief Financial Officer; and other members of the management team.
Earlier this morning, we issued a press release and slide presentation of our results and filed our 10-Q, both of which are available on the Shareholders section of our website www.bxsl.com. We will be referring to that presentation
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