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• Net Investment Income (NII): $0.91 per share, representing a 13.4% annualized return on equity, up from $0.89 per share in the prior quarter.

• Net Asset Value (NAV) per Share: Increased by $0.08 to $27.27 from $27.19 last quarter.

• Dividend: $0.77 per share, covered at 118%, representing an 11.3% annualized dividend yield.

• Weighted Average Yield on Performing Debt Investments: 11.2%.

• Investments at Fair Value: $12 billion, a 6% increase from $11.3 billion in Q2.

• New Commitments: $1.1 billion in new commitments and $956 million in fundings.

• Leverage: Ending leverage and average leverage both at 1.12 times, within the target range of 1 to 1.25 times.

• Liquidity: $1.1 billion, comprised of cash and available borrowing capacity.

• Nonaccrual Rate: 0.2% at cost.

• Credit Ratings: Upgraded by Moody's from Baa3 to Baa2.

• Total Investment Income: Up 21% year over year, driven by increased interest income.

• Outstanding Debt: $6.4 billion.

• Total Net Assets: $5.7 billion.

• Weighted Average Interest Rate on Borrowings: 5.45%.

• Cost of Financing: Revolver at SOFR plus 152.5 basis points, bonds issued at 5.35% coupon.

• Warning! GuruFocus has detected 5 Warning Sign with BXSL.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive 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.

Negative Points

• 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.