In This Article:
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Return on Equity (ROE): 10.2% for the first quarter.
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Adjusted Net Investment Income (NII): $0.39 per share.
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Net Asset Value (NAV) per Share: $15.14, down slightly from the prior quarter.
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New Investment Commitments: $1.2 billion in the first quarter.
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First Lien Investments: Increased from 73% to 77% of the portfolio.
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Portfolio Company EBITDA: Median EBITDA of $120 million; weighted average EBITDA of $215 million.
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Nonaccrual Rate: 0.8% at fair value and 1.4% at cost.
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Interest Coverage Ratio: 1.8 times.
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PIK Income: Declined to 10.7% of total investment income.
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Total Portfolio Investments: Nearly $18 billion.
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Total Net Assets: Nearly $8 billion.
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Total Outstanding Debt: Approximately $10 billion.
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Supplemental Dividend: $0.01 based on first quarter results.
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Base Dividend: $0.37 declared for the second quarter.
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Net Leverage: 1.26 times, slightly above the target range.
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Total Liquidity: Over $3 billion in cash and capacity on facilities.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Blue Owl Capital Corp (NYSE:OBDC) reported a solid first quarter with an ROE of 10.2%, marking the 11th consecutive quarter of double-digit ROE.
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The company's portfolio performance remains strong with a nonaccrual rate well below the industry average, indicating solid credit quality.
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Approximately 94% of the portfolio companies are based in the United States, reducing exposure to international trade disruptions.
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The company has a diversified portfolio with a focus on defensive sectors such as healthcare, business services, and software, which are less reliant on manufactured goods or commodities.
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OBDC has significant liquidity with over $3 billion in cash and capacity, providing ample funding for future investments and operations.
Negative Points
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The net asset value per share decreased slightly to $15.14 from the prior quarter, reflecting changes in credit spreads and write-downs on a few investments.
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There was a decline in adjusted net investment income to $0.39 per share, down from the previous quarter, due to a reduction in onetime income and interest rate cuts.
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The economic outlook remains uncertain with potential negative impacts from tariff policies and broader recessionary pressures.
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The merger with OBDE resulted in a onetime unrealized gain due to purchase discount accounting, which will be amortized over time, affecting future earnings.
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Leverage is slightly above the target range at 1.26 times, partly due to the merger, though expected to normalize in the next quarter.