• Net investment income of $0.95 per share, a 19% increase compared to Q3 2022.

• Net asset value per share rose to $26.54, reflecting a robust total return of 3.8% for the quarter.

• Dividend declared at $0.77 per share, supported by a 123% dividend coverage ratio.

• Portfolio characterized by 98.8% floating rate investments, benefiting from the current higher interest rate environment.

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

On November 8, 2023, Blackstone Secured Lending Fund (NYSE:BXSL) reported its third-quarter results for 2023, showcasing a period of strong performance and financial resilience. Co-CEOs Brad Marshall and Jonathan Bock emphasized the company's solid credit performance, growth in net asset value, and attractive investment income, which has been bolstered by the sustained higher rates impacting BXSL's predominantly floating rate investment portfolio.

Financial Performance Overview

For the third quarter of 2023, BXSL reported net investment income of $161 million, or $0.95 per share, representing a 19% increase from the same period in the previous year. Net income also saw a significant uptick, reaching $171 million, or $1.01 per share, marking a 74% increase compared to Q3 2022. The company's net asset value (NAV) stood at $4.6 billion, or $26.54 per share, as of quarter-end.

Dividend Declaration and Investor Call

The Board of Trustees declared a fourth-quarter 2023 dividend of $0.77 per share, payable on January 26, 2024, to shareholders of record as of December 31, 2023. This dividend represents an 11.6% yield based on the NAV, and is well-covered with a dividend coverage ratio of 123%. BXSL will host a conference call to discuss these results and provide further insights into the company's operations and outlook.

Portfolio and Investment Activity

BXSL's investment portfolio remains robust, with new investment commitments totaling $656 million at par during the quarter. The portfolio is well-diversified across industries, with the largest exposures in software, healthcare, and professional services. Notably, the portfolio's credit quality remains high, with less than 0.1% of investments on non-accrual.

Liquidity and Capital Structure

The company continues to maintain a strong liquidity position, with $1.5 billion available in cash and undrawn debt, subject to borrowing base capacity. BXSL's capital structure is well-positioned for the current environment, with 56% of liabilities unsecured and a weighted average cost of debt at 4.94%.

Looking Forward

While forward-looking statements are inherently uncertain, BXSL's management remains confident in the company's ability to deliver shareholder value, supported by its focus on credit quality, low-cost structure, and modest leverage.

For a detailed presentation of BXSL's third-quarter 2023 results and to access the webcast replay, investors and interested parties are encouraged to visit the company's website at https://ir.bxsl.com.

Value investors and potential GuruFocus.com members seeking to explore the opportunities presented by Blackstone Secured Lending Fund's latest financial results can find comprehensive information and analysis on GuruFocus.com.

Explore the complete 8-K earnings release (here) from Blackstone Secured Lending Fund for further details.

This article first appeared on GuruFocus.