Core Insights - The company is offering a limited-time discount of $100 for new members to join High Yield Investor, which focuses on high-yield investment strategies [1][2] - The company invests significant resources, including thousands of hours and over $100,000 annually, to research profitable investment opportunities [1] - The approach has garnered nearly 200 five-star reviews from members who are reportedly seeing positive results [1]

Core Viewpoint - The article emphasizes the author's bullish stance on Business Development Companies (BDCs) and highlights the focus on income generation through dividend investing [1]. Group 1: Investment Strategy - The author identifies as an income-focused investor, particularly interested in BDCs, blue-chip stocks, and REITs [1][2]. - The investment approach is characterized by a buy-and-hold strategy, prioritizing quality investments over quantity [2]. Group 2: Target Audience - The author aims to assist lower and middle-class workers in building investment portfolios that consist of high-quality, dividend-paying companies [2]. - There is a focus on helping individuals achieve financial independence through strategic dividend investing [2].

Core Insights - Blackstone Secured Lending Fund (BXSL) is recognized for its defensive portfolio and strong industry metrics, making it a preferred choice among Business Development Companies (BDCs) [1] Company Overview - BXSL has been subject to varying ratings of "buy" and "hold" based on its stock price fluctuations [1] - The fund is part of a broader strategy focused on dividend investing, which is viewed as a pathway to financial freedom [1] Analyst Background - The analyst has extensive experience in mergers and acquisitions (M&A) and business valuation, having evaluated numerous businesses and participated in both sell-side and buy-side transactions [1] - The analyst's expertise spans multiple sectors, including technology, real estate, software, finance, and consumer staples, which are also reflected in their personal investment portfolio [1] Investment Philosophy - The article emphasizes the importance of dividend investing as a straightforward method for building long-term wealth and achieving financial independence [1]

Core Insights - The business development sector is currently facing challenges, highlighting both strengths and weaknesses within the industry [1] - Some Business Development Companies (BDCs) are struggling to achieve positive earnings growth and maintain payouts, while others demonstrate resilience [1] - The Blackstone Secured Lending Fund is identified as a more resilient player in the sector [1] Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with Business Development Companies, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds [1] - This approach aims to balance growth and income, providing a robust framework for long-term investment success [1]

Group 1 - The focus of Cash Flow Club is on businesses with strong cash generation, ideally possessing a wide moat and significant durability [1] - The investment strategy emphasizes buying companies at the right time to maximize rewards [1] - The community offers access to a leader's personal income portfolio targeting yields of 6% or more, along with features like community chat and a "Best Opportunities" List [1] Group 2 - Jonathan Weber, an analyst with an engineering background, has been active in the stock market and freelance analysis since 2014, primarily focusing on value and income stocks [1] - The Cash Flow Club covers various sectors including energy midstream, commercial mREITs, BDCs, and shipping [1] - Transparency on performance is a core feature of the Cash Flow Club [1]

Financial Data and Key Metrics Changes - BXSL reported net investment income (NII) of $0.82 per share, representing a 12% annualized return on equity, primarily from interest income [11][27] - NAV per share decreased by $0.18 quarter over quarter to $27.15 due to markdowns [12][28] - The distribution of $0.77 per share was 106% covered by NII, yielding an annualized distribution yield of 11.3% [12][27] Business Line Data and Key Metrics Changes - BXSL ended the quarter with $13.8 billion of investments at fair value, a 15% increase year-over-year [15] - The weighted average yield on performing debt investments at fair value was 10%, down from 10.2% in the previous quarter [15][30] - Nearly 98% of investments are in first-lien, senior secured loans, with an average loan-to-value (LTV) of 49.7% [16][18] Market Data and Key Metrics Changes - M&A activity increased by 63% year-over-year, contributing to BXSL's growth [8] - Defaults in the leveraged loan and high-yield market declined by 37% year-to-date [10] - BXSL's portfolio companies experienced an average EBITDA growth of nearly 9% year-over-year [17][28] Company Strategy and Development Direction - The company is focusing on first-lien senior secured loans with large sponsor-backed companies, particularly in sectors with long-term tailwinds [10][12] - BXSL is integrating AI considerations into its investment process, targeting larger businesses and mission-critical products [13][21] - The company aims to maintain a disciplined approach to investing while capitalizing on heightened deal activity [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing deal activity and stable credit quality, despite external narratives of market bubbles [6][10] - The company anticipates continued growth in M&A activity and asset turnover, with spreads remaining attractive compared to traditional fixed incomes [11][14] - Management noted that the economic backdrop is generally positive, with strong corporate balance sheets and earnings growth [88] Other Important Information - BXSL's total liquidity was reported at $2.5 billion, with ending leverage at 1.22 times, within the target range [33] - The company has maintained a strong focus on document protections and control in its credit agreements [20] Q&A Session Summary Question: Why retain exposure to Squarespace? - Management indicated that retaining exposure to high-quality companies can be beneficial, and spreads on new deals have remained stable [36][41] Question: Update on Medallia's performance? - Management stated there was no significant update on Medallia, and the acquisition by Qualtrics would not change the competitive dynamics significantly [46][47] Question: Outlook for dividends with falling base rates? - Management plans to maintain a competitive and sustainable dividend while monitoring the impact of base rates on earnings [53] Question: Quality of deals in the current market? - Management noted that the quality of deals has been good, with higher quality assets leading the M&A activity [62] Question: How much of the funding activity was from incumbent versus new borrowers? - Over 80% of funding activity was to incumbent borrowers, with a consistent trend observed in previous quarters [66] Question: Concerns about loan-to-value ratios? - Management clarified that the increase in LTV is marginal and reflects adjustments in enterprise values rather than a significant risk [72][73] Question: Will the premium of private credit over syndicated loans be maintained? - Management expressed confidence that the premium will be maintained due to the value private credit brings to the market [76]

Financial Performance - Net investment income (NII) per share was $0.82, exceeding the $0.77 quarterly dividend[2] - The company declared a fourth quarter 2025 dividend of $0.77 per share[3] - The annualized net investment income return was 12.0%[11] - The dividend yield was 11.3% based on NAV[11] - Dividend coverage was 106%[11] Portfolio Composition and Investment Activity - 97.5% of the portfolio is first lien, senior secured debt[11] - Non-accrual debt investments represent 0.1% of total investments[11] - New investment commitments totaled $1.3 billion at par, with $1.0 billion funded[15] - The fair value of investments was approximately $13.8 billion as of September 30, 2025[6] Liquidity and Capital Structure - The company has $2.5 billion of liquidity in unrestricted cash and undrawn debt[15] - The total all-in cost of debt was 5.04% in 3Q 2025[15]

Core Insights - Blackstone Secured Lending Fund (BXSL) reported quarterly earnings of $0.82 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, but down from $0.91 per share a year ago, resulting in an earnings surprise of +2.50% [1] - The company achieved revenues of $358.56 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.07% and up from $343 million year-over-year [2] - The stock has underperformed, losing about 18% since the beginning of the year compared to the S&P 500's gain of 14.4% [3] Earnings Outlook - The future performance of Blackstone Secured Lending Fund will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $354.51 million, and for the current fiscal year, it is $3.19 on revenues of $1.41 billion [7] Industry Context - The Financial - SBIC & Commercial Industry, to which Blackstone Secured Lending Fund belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Blackstone Secured Lending Fund may also be influenced by the overall outlook for the industry [8]

Financial Performance - Blackstone Secured Lending Fund reported net investment income of $189 million, or $0.82 per share, for Q3 2025, exceeding the $0.77 quarterly dividend[14]. - Total investment income for the quarter was $350 million, up from $343 million in the previous quarter, with interest income contributing $328 million[26]. - Net investment income after tax expense was $189 million for the quarter, compared to $186 million in the previous quarter[26]. - Net income for Q3'24 was $152 million, compared to $162 million in Q2'24[42]. - Net investment income for Q3'24 was $186 million, a slight decrease from $189 million in Q2'24[42]. - Net investment income per share for Q3'24 was $0.91, up from $0.84 in Q2'24[42]. - The annualized net investment income return for Q3'24 was 13.4%, compared to 12.3% in Q2'24[42]. Investment Activity - The fund's total investment income and net investment income reached record levels, with new investment activity exceeding $1 billion, the highest since Q4 2024[2]. - New investment commitments in Q3 2025 totaled $1.3 billion, with $1.0 billion funded during the quarter[14]. - Investment commitments for the quarter were $1.289 billion, with investment fundings of $1.007 billion[30]. - New investment commitments for Q3'24 reached $1,106 million, an increase from $756 million in Q2'24[42]. Portfolio and Assets - The net asset value (NAV) was approximately $6.3 billion, or $27.15 per share, at the end of Q3 2025[14]. - As of September 30, 2025, the fair value of investments was approximately $13.8 billion, with 97.5% in first lien senior secured debt[6][17]. - The company maintained a diversified portfolio with 311 portfolio companies across 40 individual industries, with no single issuer accounting for more than 3% of the portfolio[21]. - Investments at fair value as of September 30, 2024, were $11,979 million, compared to $13,093 million at the end of Q4'24[42]. - Total assets as of September 30, 2025, were $14.256 billion, an increase from $13.711 billion as of June 30, 2025[27]. Dividends - The fund declared a fourth quarter 2025 dividend of $0.77 per share, representing a dividend yield of 11.3%[3][14]. - The company reported a regular dividend of $0.77 per share, representing an annualized dividend yield of 11.3%[25]. Liquidity and Leverage - The fund had $2.5 billion in liquidity, consisting of unrestricted cash and undrawn debt[14]. - The company has significant available liquidity, with $2.3 billion of undrawn borrowing capacity[34]. - The leverage ratio at quarter-end was 1.22x, with an average leverage of 1.15x[14]. - Total liabilities increased to $7.987 billion as of September 30, 2025, from $7.423 billion as of June 30, 2025[27]. Yield and Performance Metrics - The weighted average yield on performing debt investments at fair value was 10.0% at quarter-end, down from 10.2% in the prior quarter[14]. - The weighted average yield of new investments was 9.3%, while the yield on investments fully sold or paid down was 9.9%[30].

Financial Performance - The Company recorded $6.2 million and $20.8 million in non-recurring interest income for the three and nine months ended September 30, 2025, respectively, compared to $1.6 million and $3.8 million for the same periods in 2024[244]. - For the three and nine months ended September 30, 2025, base management fees were $35.0 million and $103.9 million, respectively, compared to $30.2 million and $84.3 million for the same periods in 2024, representing increases of 15.9% and 23.5% year-over-year[266]. - The Company accrued income based incentive fees of $31.3 million and $100.3 million for the three and nine months ended September 30, 2025, compared to $38.2 million and $111.4 million for the same periods in 2024, indicating a decrease of 18.1% and 10.0% year-over-year[280]. - The Company reported a net increase in net assets resulting from operations of $437.288 million for the nine months ended September 30, 2025, compared to $531.605 million for the same period in 2024[396]. - The total return based on NAV for the nine months ended September 30, 2025, was 7.4%, while the total return based on market value was -12.9%[398]. Tax and Regulatory Compliance - For the three and nine months ended September 30, 2025, the Company accrued $4.2 million and $12.2 million of U.S. federal excise tax, respectively, compared to $3.9 million and $10.7 million for the same periods in 2024[255]. - The Company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained, with no material uncertain tax positions identified through September 30, 2025[252]. Investment Portfolio - As of September 30, 2025, the Company's investment portfolio at fair value totaled $13.81 billion, a slight increase from $13.09 billion as of December 31, 2024, representing a growth of approximately 5.5%[290]. - The composition of the investment portfolio as of September 30, 2025, included 97.5% in first lien debt, 1.7% in second lien debt, and 0.7% in equity, indicating a stable focus on secured lending[290]. - The geographic distribution of investments showed that 88.1% were in the United States as of September 30, 2025, compared to 88.6% as of December 31, 2024, indicating a slight decrease in U.S. concentration[292]. - The Company reported that three borrowers were on non-accrual status as of September 30, 2025, compared to four borrowers as of December 31, 2024, indicating an improvement in credit quality[293]. Debt and Financing - The Company issued $650.0 million aggregate principal amount of 2.125% notes due 2027, which will mature on February 15, 2027[347]. - The 2026 Notes, totaling $500.0 million and $300.0 million, bear interest at 3.625% and will mature on January 15, 2026[343][344]. - The outstanding debt obligations totaled $10,007,500,000 as of September 30, 2025, compared to $9,307,500,000 as of December 31, 2024, reflecting an increase of approximately 7.5%[371]. - The average principal debt outstanding for the three months ended September 30, 2025, was $7,345,800,000, up from $6,299,600,000 for the same period in 2024, representing an increase of about 16.6%[377]. Interest Rate Management - The Company uses interest rate swaps to mitigate interest rate risk associated with fixed rate liabilities, with changes in fair value recorded in the Condensed Consolidated Statements of Operations[239]. - The Company may hedge against interest rate fluctuations using instruments such as interest rate swaps, futures, options, and forward contracts[494]. - Interest rate sensitivity indicates that significant changes in market interest rates could adversely affect the Company's net investment income[491]. Shareholder Distributions - The Company intends to make quarterly distributions to shareholders, dependent on earnings and financial condition[257]. - The company declared total distributions of $530.265 million for the nine months ended September 30, 2025, with a per share amount of $2.3100[390]. - The Company declared a distribution of $0.77 per share to shareholders of record as of December 31, 2025, payable on or about January 23, 2026[412]. Administrative Expenses - For the three and nine months ended September 30, 2025, the Company incurred $0.8 million and $2.5 million in expenses under the Administration Agreement, compared to $0.5 million and $2.0 million for the same periods in 2024, reflecting a year-over-year increase of 60% and 25% respectively[285]. - The total expenses incurred under the Administration Agreement for the nine months ended September 30, 2025, represented an increase of 25% compared to the prior year, highlighting rising administrative costs[285]. Advisory Agreements - The Advisory Agreements were renewed on April 30, 2025, for a one-year period ending on May 31, 2026, with provisions for annual renewal thereafter[263]. - The changes in advisory agreements effective January 1, 2025, did not result in any change in the aggregate fees paid by the Company[262]. - The Company may terminate the Advisory Agreements upon 60 days' written notice without penalty[263].