Financial Data and Key Metrics Changes - The net investment income (NII) for Q1 2025 was $189 million or $0.83 per share, representing a year-over-year increase of over 14% and the highest dollar amount since inception [25] - Total investment income for the quarter reached a record $354 million, up $54 million or 18% year-over-year, driven by increased interest income [25] - The net asset value (NAV) per share remained flat at $27.39 quarter over quarter, supported by $0.06 per share of excess earnings and $1.01 from share issuance at a premium to NAV [26][27] Business Line Data and Key Metrics Changes - BXSL ended the quarter with $12.8 billion of investments at fair value, a 20% increase from $10.4 billion year-over-year [14] - The weighted average yield on performing debt investments at fair value was 10.2%, down from 10.4% in the previous quarter [15] - 98% of BXSL investments are in first lien senior secured loans, with an average loan-to-value (LTV) of 47.4% [15][18] Market Data and Key Metrics Changes - The company issued $500 million of new debt at a coupon of 5.3%, the tightest spread compared to traded BDC peers in 2025 [12] - The total weighted average interest rate on drawn debt decreased to 5.01% in Q1, down from 5.17% in the previous quarter [28] - The repayment rate for the portfolio was 28% at fair value, significantly up from 6% in the prior quarter [28] Company Strategy and Development Direction - The company continues to focus on investing in sectors that are more resilient during periods of volatility, emphasizing first lien senior secured lending to larger companies [16][56] - The value creation program is actively helping portfolio companies manage tariff impacts and enhance revenue while lowering costs [22][63] - The management team remains cautious in deploying capital, preferring to maintain quality over taking on additional risk in uncertain economic conditions [56][78] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty around tariffs has impacted investor sentiment, but the company believes it is in a fundamentally strong position [7] - The management team is optimistic about the potential for increased deal activity in the latter half of 2025, despite current market volatility [11][12] - The company is focused on maintaining a senior secured portfolio and has identified a small group of companies that may be impacted by tariffs [16][60] Other Important Information - The company reported a realization on an equity position, contributing positively to NAV, with a gain of over $7 million from a $2.9 million investment [20] - The company has a diverse liability profile, with 38% of drawn debt in unsecured bonds, contributing to a competitive overall cost of debt [28][30] Q&A Session Summary Question: Dividend coverage and spillover policy - Management acknowledged the potential impact of falling rates on earnings and discussed strategies to manage this, including maintaining low expenses and focusing on quality assets [34][36] Question: Refinance of a large deal - Management indicated that the deal was refinanced through securitization, limiting their ability to retain the asset, but they aim to hold onto good assets while allowing weaker ones to be repaid [42] Question: Leverage and capital deployment - Management confirmed that they had excess cash at the end of the quarter and are well-capitalized to take advantage of market opportunities as they arise [46][48] Question: Shift in investment strategy - Management emphasized a focus on higher quality assets during periods of volatility, avoiding riskier investments [56][78] Question: Impact of tariffs on portfolio companies - Management stated that 90% of the portfolio is in less impacted sectors, and they are actively monitoring potential tariff impacts on a small group of companies [58][60] Question: NAV decline and credit specifics - Management explained that the NAV remained flat, with unrealized losses primarily driven by repayments and one specific company, Medallia, being marked down due to competitive pricing [70][72]

Financial Data and Key Metrics Changes - The net investment income (NII) for Q1 2025 was $189 million or $0.83 per share, representing a year-over-year increase of over 14% and the highest dollar amount since inception [23] - Total investment income for the quarter reached a record $354 million, up $54 million or 18% year-over-year, driven by increased interest income [23] - The net asset value (NAV) per share remained flat at $27.39 quarter over quarter, supported by $0.06 per share of excess earnings and $1.01 from share issuance at a premium to NAV [24][25] Business Line Data and Key Metrics Changes - BXSL ended the quarter with $12.8 billion of investments at fair value, a 20% increase from $10.4 billion year-over-year [13] - The weighted average yield on performing debt investments at fair value was 10.2%, down from 10.4% in the previous quarter [14] - 98% of BXSL's investments are in first lien senior secured loans, with an average loan-to-value (LTV) of 47.4% [14][16] Market Data and Key Metrics Changes - The company issued $500 million of new debt at a coupon of 5.3%, the tightest spread compared to traded BDC peers in 2025 [11] - The total weighted average interest rate on drawn debt decreased to 5.01% in Q1, down from 5.17% in the previous quarter [27] - The repayment rate for the portfolio was 28% annualized, up from 6% in the prior quarter, indicating increased repayments during the quarter [27] Company Strategy and Development Direction - The company continues to focus on investing in sectors that are more resilient during periods of volatility, emphasizing first lien senior secured lending to larger companies [15][59] - The management highlighted the importance of maintaining high-quality assets and avoiding riskier investments during uncertain economic conditions [59] - The value creation program is utilized to support portfolio companies, helping them manage tariff impacts and enhance revenue [20][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong fundamentals despite market volatility and uncertainty surrounding tariffs [6][8] - The company is positioned well for potential future opportunities amidst market volatility, with a focus on maintaining a defensive approach [16][64] - Management noted that while there is uncertainty in the market, they are seeing a steady pipeline of deals and are prepared to capitalize on opportunities as they arise [51][54] Other Important Information - The company maintained its dividend distribution of $0.77 per share, representing an 11.2% annualized distribution yield [18] - The company realized a gain of over $7 million from an equity investment in Frontline, contributing positively to NAV [19] - The company has a diverse liability profile, with 38% of drawn debt in unsecured bonds that have a weighted average fixed coupon of less than 3% [27] Q&A Session Summary Question: Dividend coverage and spillover policy - Management discussed the potential impact of falling rates on earnings and the strategies to manage dividend coverage, including turnover in the portfolio and lowering expenses [36][39] Question: Refinance of a large asset - Management indicated that a large asset was refinanced through a securitization, limiting their ability to retain it, but they aim to hold onto good assets [43][45] Question: Leverage in the portfolio - Management acknowledged the presence of excess cash and indicated a cautious approach to deploying capital in the current environment, focusing on high-quality assets [48][50] Question: Strategy on credit evaluation - Management confirmed that their underwriting standards remain unchanged, focusing on sectors less impacted by economic weakness, such as software and healthcare [80][81] Question: Commonality among larger repayments - Management noted that repayments were from a small number of companies, with some being refinanced in the securitization markets, and they expect muted repayment volumes in the current quarter [84][86] Question: Growth outlook and ATM program - Management indicated that ATM issuance would be tied to originations and would be emphasized as market activity picks up [89][91]

Core Viewpoint - Blackstone Secured Lending Fund (BXSL) reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.82, but down from $0.87 per share a year ago, indicating a mixed performance in earnings [1][2]. Financial Performance - The company achieved revenues of $357.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.94% and showing an increase from $303.96 million year-over-year [2]. - Over the last four quarters, Blackstone Secured Lending Fund has exceeded consensus EPS estimates two times and topped revenue estimates four times [2]. Stock Performance - Since the beginning of the year, Blackstone Secured Lending Fund shares have declined approximately 8.9%, compared to a 4.7% decline in the S&P 500 [3]. - The current consensus EPS estimate for the upcoming quarter is $0.82, with expected revenues of $357.8 million, and for the current fiscal year, the EPS estimate is $3.26 on revenues of $1.44 billion [7]. Industry Outlook - The Financial - SBIC & Commercial Industry, to which Blackstone Secured Lending Fund belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - The performance of Blackstone Secured Lending Fund may be influenced by the overall outlook of the industry, as historical data indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8].

Financial Performance - Blackstone Secured Lending Fund reported a strong quarter with net investment income per share of $083[2] - The company's dividend is well-covered, with a coverage ratio of 108%[2,11] - The annualized net investment income return is 121%[11] - The company declared a second quarter 2025 dividend of $077 per share[3] Portfolio Composition and Risk Management - The portfolio is primarily composed of first lien senior secured debt, representing 982% of the investments[2,11,25] - The average loan-to-value ratio is 474%[2,11,25] - Non-accrual debt investments are minimal, accounting for only 03% of the portfolio[2,11,13] - Floating rate debt investments represent 988% of the portfolio[13,26] Funding and Liquidity - The company has approximately $128 billion in investments at fair value[6,26] - Available liquidity is $34 billion, providing material capacity[52]

[Registrant Information](index=1&type=section&id=Registrant%20Information) Blackstone Secured Lending Fund, a Delaware corporation, is the registrant, with common shares trading on NYSE under BXSL Common Shares Listing Details | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Shares of Beneficial Interest, $0.001 par value per share | BXSL | New York Stock Exchange | - The registrant is **Blackstone Secured Lending Fund**, located in New York, NY[1](index=1&type=chunk)[2](index=2&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Blackstone Secured Lending Fund announced its Q1 2025 financial results on May 7, 2025, through a press release and presentation - The company issued a press release and detailed presentation on **May 7, 2025**, to announce its financial results for the first quarter ended **March 31, 2025**[5](index=5&type=chunk) - The press release (Exhibit 99.1) is furnished with this report but is not considered "filed" under the Securities Exchange Act of 1934, limiting its legal liability under Section 18 of the Act[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists exhibits included with the Form 8-K filing, with Exhibit 99.1, the press release, as key List of Exhibits | Exhibit Number | Description of Exhibits | | :--- | :--- | | 99.1 | Press release dated May 7, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=3&type=section&id=SIGNATURE) The report was signed and authorized on May 7, 2025, by Teddy Desloge, Chief Financial Officer - The report was signed on **May 7, 2025**, by **Teddy Desloge**, Chief Financial Officer[11](index=11&type=chunk)

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Total net assets increased to $6.24 billion with a stable NAV per share of $27.39 as of March 31, 2025 [Condensed Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets reached $13.97 billion, driven by increased cash, while net assets grew to $6.24 billion Key Balance Sheet Items (As of March 31, 2025 vs December 31, 2024) | Item (in millions of U.S. dollars) | March 31, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Investments (at fair value)** | 12,834.2 | 13,092.5 | ▼ | | **Cash and Cash Equivalents** | 965.0 | 229.6 | ▲ | | **Total Assets** | 13,968.8 | 13,472.2 | ▲ | | **Total Debt** | 7,383.1 | 7,056.1 | ▲ | | **Total Liabilities** | 7,727.9 | 7,395.7 | ▲ | | **Total Net Assets** | 6,240.9 | 6,076.5 | ▲ | | **Net Asset Value (NAV) per Share** | $27.39 | $27.39 | - | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total investment income rose 18% to $358 million, driving net investment income to $189 million Summary of Operations (For the three months ended March 31, 2025 vs 2024) | Item (in millions of U.S. dollars) | Q1 2025 | Q1 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Total Investment Income** | 357.8 | 304.0 | +17.7% | | Interest Income | 335.7 | 283.3 | +18.5% | | **Total Expenses** | 164.8 | 134.8 | +22.3% | | Interest Expense | 93.0 | 66.7 | +39.4% | | **Net Investment Income** | 188.8 | 165.8 | +13.9% | | **Net Realized and Unrealized Gain (Loss)** | (39.0) | 17.9 | N/A | | **Net Increase in Net Assets from Operations** | 149.8 | 183.8 | -18.5% | | **Earnings Per Share (EPS)** | $0.66 | $0.96 | -31.3% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $425 million, and financing activities provided $310 million in Q1 2025 Cash Flow Summary (For the three months ended March 31, 2025 vs 2024) | Item (in millions of U.S. dollars) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | 424.7 | (395.5) | | **Net Cash Provided by Financing Activities** | 310.1 | 388.3 | | **Net Increase in Cash and Cash Equivalents** | 734.8 | (7.2) | | **Cash and Cash Equivalents at End of Period** | 965.0 | 147.7 | [Condensed Consolidated Schedules of Investments](index=10&type=section&id=Condensed%20Consolidated%20Schedules%20of%20Investments) The $12.83 billion portfolio is dominated by first lien debt (98.2%) and is diversified across industries Portfolio by Investment Type (As of March 31, 2025) | Investment Type | Fair Value (in millions of U.S. dollars) | % of Total Portfolio | | :--- | :--- | :--- | | First Lien Debt | 12,602.9 | 98.2% | | Second Lien Debt | 118.5 | 0.9% | | Unsecured Debt | 13.7 | 0.1% | | Equity | 99.2 | 0.8% | | **Total** | **12,834.2** | **100.0%** | Portfolio by Industry (Top 5) | Industry | % of Total Portfolio (March 31, 2025) | | :--- | :--- | | Software | 20.8% | | Healthcare Providers & Services | 9.5% | | Professional Services | 8.7% | | Insurance | 8.3% | | Commercial Services & Supplies | 8.2% | - As of March 31, 2025, four borrowers were on **non-accrual status**, representing **0.3% of the total investment portfolio** at amortized cost[272](index=272&type=chunk)[401](index=401&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=83&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, related-party transactions, debt, fair value, and equity changes - The company pays its Advisor a management fee at an annual rate of **1.0% of average gross assets** and an incentive fee subject to a **1.5% quarterly hurdle rate**[244](index=244&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk) - As of March 31, 2025, total debt was **$7.41 billion**, and the asset coverage ratio was **184.2%**, compliant with the 150% regulatory requirement[294](index=294&type=chunk)[344](index=344&type=chunk) - The company declared a dividend of **$0.77 per share** and issued **5.76 million shares** for net proceeds of **$184.8 million** through its "at-the-market" (ATM) program in Q1 2025[359](index=359&type=chunk)[361](index=361&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=125&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, highlighting investment income growth and strong liquidity [Portfolio and Investment Activity](index=127&type=section&id=Portfolio%20and%20Investment%20Activity) Q1 2025 saw $756 million in new investment commitments, primarily in first lien debt Q1 2025 Investment Activity Summary (in millions of U.S. dollars) | Item | Amount | | :--- | :--- | | Beginning Total Investments | 13,193.2 | | New Investment Purchases | 689.2 | | Investment Sales or Repayments | (978.0) | | **Ending Total Investments** | **12,952.0** | - The weighted average yield on performing debt investments was **10.1% at amortized cost** and **10.2% at fair value** as of March 31, 2025[394](index=394&type=chunk) - The weighted average annual revenue and EBITDA of portfolio companies were **$818 million** and **$210 million**, respectively, as of March 31, 2025[397](index=397&type=chunk) [Results of Operations](index=128&type=section&id=Results%20of%20Operations) Total investment income grew 18% to $358 million, while expenses rose 30% due to higher interest costs - Total investment income grew by **18%**, driven by an increase in average investments from **$10.15 billion to $12.96 billion** year-over-year[399](index=399&type=chunk) - Interest expense increased by **39%** year-over-year, primarily due to a rise in average debt principal from **$5.05 billion to $7.31 billion**[405](index=405&type=chunk) - The income-based incentive fee decreased to **$34.3 million** from $35.8 million due to the Incentive Fee Cap[407](index=407&type=chunk) - No capital gains incentive fee was accrued this quarter, compared to **$3.1 million** in the prior-year period[409](index=409&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=132&type=section&id=Financial%20Condition,%20Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $965 million in cash and $2.4 billion in undrawn credit - As of March 31, 2025, the company had **$965 million in cash** and cash equivalents and **$2.4 billion in undrawn credit capacity**[424](index=424&type=chunk)[426](index=426&type=chunk) - The company's asset coverage ratio was **184.2%**, compliant with the **150% regulatory requirement**[294](index=294&type=chunk)[423](index=423&type=chunk) - A shelf registration statement, effective until July 2025, allows for the issuance of various securities[422](index=422&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=137&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed through floating-rate assets and derivatives Hypothetical Impact of Interest Rate Changes on Annual Net Income (in millions of U.S. dollars) | Basis Point Change in Rates | Impact on Interest Income | Impact on Interest Expense | Impact on Net Income | | :--- | :--- | :--- | :--- | | +300 bps | 387.9 | (88.7) | 299.2 | | +200 bps | 258.6 | (59.1) | 199.5 | | +100 bps | 129.3 | (29.6) | 99.7 | | -100 bps | (129.3) | 29.6 | (99.7) | | -200 bps | (258.1) | 59.1 | (199.0) | | -300 bps | (384.0) | 88.7 | (295.3) | - As of March 31, 2025, **99.8% of the company's debt investments** at fair value bore floating interest rates[447](index=447&type=chunk) [Item 4. Controls and Procedures](index=137&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The company's co-CEOs and CFO concluded that disclosure controls and procedures are **effective at a reasonable assurance level**[450](index=450&type=chunk) - There were **no changes to internal control over financial reporting** during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, such controls[451](index=451&type=chunk) [PART II OTHER INFORMATION](index=139&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=139&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is **not currently a party to any material legal proceedings**[454](index=454&type=chunk) [Item 1A. Risk Factors](index=139&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the risk factors since the last annual report on Form 10-K - There have been **no material changes** from the risk factors discussed in the Annual Report for fiscal year 2024[455](index=455&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=139&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the reporting period - None[456](index=456&type=chunk) [Item 3. Defaults Upon Senior Securities](index=139&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[457](index=457&type=chunk) [Item 6. Exhibits](index=140&type=section&id=Item%206.%20Exhibits) Filed exhibits include supplemental indentures and CEO/CFO certifications required by the Sarbanes-Oxley Act - An Eighth Supplemental Indenture related to the **5.300% Notes due 2030** was filed[461](index=461&type=chunk) - Certifications by the CEO and CFO pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act** were filed[461](index=461&type=chunk)

Core Insights - The article emphasizes the importance of a diversified investment strategy that combines classic dividend growth stocks with other asset classes such as Business Development Companies, REITs, and Closed End Funds to enhance income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The author advocates for a hybrid investment approach that balances growth and income, suggesting that this method can effectively boost investment income while maintaining a total return aligned with the S&P 500 [1]. Personal Experience - The author shares personal investment experiences, highlighting a journey from traditional index fund investing to a more nuanced strategy that includes high-quality dividend stocks and other income-generating assets [1].

Core Insights - Blackstone Secured Lending Fund (BXSL) is highlighted as a strong investment in the business development company (BDC) sector, focusing on defensive, first-lien lending strategies [1] - Since its inception, BXSL has generated approximately $17.65 per share, indicating a solid performance in the market [1] Company Overview - BXSL operates as a business development company, providing first-lien loans, which are considered less risky compared to other types of lending [1] - The fund is part of a broader strategy that emphasizes dividend investing as a means to achieve financial freedom [1] Investment Strategy - The article emphasizes the importance of dividend investing, portraying it as an accessible path for individuals seeking to build long-term wealth [1] - The author shares insights from extensive experience in mergers and acquisitions (M&A) and business valuation, which informs the investment approach [1]

Blackstone Secured Lending Fund (BXSL) shares ended the last trading session 7.9% higher at $28.99. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.6% loss over the past four weeks.Blackstone Secured Lending Fund stock rallied, driven by a massive jump in the broad markets. The jump was attributable to President Donald Trump’s announcement of a 90-day tariff pause for the non-retaliating nations. This cheered th ...

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