Financial Results Announcement - Blue Owl Capital Corporation will release its financial results for Q1 2025 on May 7, 2025, after market close[3] - The press release regarding the financial results is attached as Exhibit 99.1 to the Form 8-K[5] Earnings Call - The earnings webcast/conference call is scheduled for May 8, 2025, at 10:00 a.m. Eastern Time[3]

Core Insights - Blue Owl Capital Corporation reported a solid start to 2025 with a 10.2% annualized return on equity, supported by a resilient portfolio and the recent merger with OBDE, making it the second largest externally managed publicly traded BDC by total assets, exceeding $18 billion as of March 31, 2025 [3][5][23]. Financial Highlights - The company declared a second quarter 2025 regular dividend of $0.37 per share and a supplemental dividend of $0.01 per share for the first quarter 2025 [4][7]. - For the first quarter ended March 31, 2025, net investment income per share was $0.41, down from $0.47 in the previous quarter, while adjusted net investment income per share was $0.39 [6][27]. - Total investments at fair value increased to $17.7 billion from $13.2 billion in the previous quarter, with total assets reaching $18.4 billion [6][25]. Portfolio Composition - As of March 31, 2025, the company had investments in 236 portfolio companies across 30 industries, with an average investment size of $75 million [9][23]. - The portfolio consisted of 77.5% first-lien senior secured debt investments, 5.0% second-lien senior secured debt investments, and 10.2% common equity investments [10][11]. Investment Activity - New investment commitments for the first quarter totaled $1.2 billion, with $913 million funded, compared to $1.7 billion in new commitments and $1.6 billion funded in the previous quarter [11][12]. - The company experienced a decrease in investments on non-accrual, which represented 0.8% of the portfolio at fair value, up from 0.4% in the previous quarter [7][11]. Results of Operations - Investment income increased to $464.6 million for the first quarter, up from $394.4 million in the previous quarter, primarily due to higher interest income from the merger [17][30]. - Total expenses rose to $259.6 million, driven by increased interest expense and management fees related to the merger [18][30]. Liquidity and Capital Resources - As of March 31, 2025, the company had $514.2 million in cash and restricted cash, with total debt outstanding of $10.2 billion, maintaining a balanced funding mix of 50% secured and 50% unsecured borrowings [19][28].

Investment Overview - As of March 31, 2025, Blue Owl Capital Corporation's Adviser and its affiliates have originated an aggregate principal amount of investments totaling $154.20 billion, with $150.22 billion retained by the company or its advised funds [524]. - The company targets middle-market companies with EBITDA between $10 million and $250 million annually and/or annual revenue of $50 million to $2.5 billion at the time of investment [525]. - The company focuses on investing in non-cyclical industries, particularly in healthcare, business services, financial services, and software [557]. - The portfolio consists of 77.5% first lien senior secured debt investments, with 52% classified as unitranche debt investments [552]. - The company aims to participate in transactions sponsored by high-quality private equity and venture capital firms capable of providing operational and financial resources [524]. Financial Performance - The total investment income was $464.6 million, an increase of 16.3% from $399.6 million in the same period of 2024 [588]. - The net investment income after taxes for the three months ended March 31, 2025, was $201.3 million, compared to $182.8 million in 2024, reflecting a growth of 10.3% [588]. - Investment income increased to $464.6 million for the three months ended March 31, 2025, up from $399.6 million in the same period of 2024, primarily due to increased interest income from debt investments [593]. - Total operating expenses rose to $259.6 million in Q1 2025 from $211.6 million in Q1 2024, driven by higher interest expense, management fees, and incentive fees [595]. - Interest expense increased to $148.5 million in Q1 2025 from $119.1 million in Q1 2024, attributed to an increase in average borrowings from $7.5 billion to $10.2 billion [597]. Investment Strategy - The company expects to generate current income primarily through direct originations of senior secured loans and other debt investments in U.S. middle-market companies [524]. - The average debt investment size in each portfolio company was approximately $70.0 million based on fair value, with portfolio companies representing 93.7% of the total debt portfolio having a weighted average annual revenue of $938 million and a weighted average annual EBITDA of $215 million [529]. - The company focuses on originating loans to middle-market companies and may reduce investment levels through partial sales or syndication to additional lenders [532]. - The average hold size of new investments in Blue Owl's direct lending strategy increased to approximately $350 million in 2025, up from $200 million in 2021 [559]. Debt and Leverage - The current target leverage ratio is 0.90x-1.25x, with net leverage reported at 1.26x debt-to-equity [555]. - The total debt as of March 31, 2025, was $13,014.6 million, with an outstanding principal of $10,285.5 million [637]. - The average interest rate for the three months ended March 31, 2025, was 5.6%, with total interest expense amounting to $148.5 million [640]. - The company has a requirement to invest at least 70% of its assets in "qualifying assets" as defined in the Investment Company Act of 1940 [523]. Market Conditions - The lending environment is challenging, with merger and acquisition activity below historical levels and refinance activity slowed [556]. - The middle-market lending environment is viewed as providing opportunities for attractive risk-adjusted returns [543]. - The company expects earnings to benefit from a prolonged higher interest rate environment due to its floating rate loan portfolio [535]. Investment Commitments - Total new investment commitments for the three months ended March 31, 2025, were $1,158,874,000, compared to $1,202,698,000 in 2024 [563]. - The principal amount of new investments funded in the first quarter of 2025 was $912,859,000, slightly down from $920,370,000 in the same period of 2024 [563]. - The weighted average interest rate of new debt investment commitments was 9.5% for the three months ended March 31, 2025, down from 11.1% in 2024 [563]. Shareholder Returns - For the three months ended March 31, 2025, the company declared a distribution of $0.37 per share and a supplemental dividend of $0.05 per share [628]. - The company generated undistributed taxable earnings "spillover" of approximately $0.34 per share as of March 31, 2025 [598]. - Dividend income increased to $56.5 million in Q1 2025 from $50.1 million in Q1 2024, mainly due to higher dividends from equity investments acquired from OBDE [593]. Asset Management - The company has been granted an order for exemptive relief by the SEC to co-invest with other funds managed by its Adviser or certain affiliates, subject to various approvals [519]. - The company is regulated as a Business Development Company (BDC) under the Investment Company Act of 1940 and as a regulated investment company (RIC) for tax purposes [522]. - The weighted average total yield of the portfolio was 10.2% at fair value and 10.3% at amortized cost [554]. - The weighted average spread of total debt investments was 6.1% as of March 31, 2025 [554]. Portfolio Quality - The portfolio composition as of March 31, 2025, included 85.2% rated 2, 7.7% rated 3, and 0.1% rated 5, indicating a stable risk profile [579]. - The amortized cost of performing debt investments was $14,821.5 million, representing 98.4% of total debt investments as of March 31, 2025 [579]. - The company had only four portfolio companies on non-accrual status as of March 31, 2025, with a non-accrual ratio of 1.6% [578]. - The net change in unrealized gain for the three months ended March 31, 2025, was $194.9 million, a significant increase from $6.6 million in 2024 [588]. Mergers and Acquisitions - The company completed a merger on January 13, 2025, resulting in a purchase discount that will amortize over the life of the acquired loans [589]. - The company acquired investments totaling $4.15 billion from OBDE on January 13, 2025, which included 189 portfolio companies [565].

Blue Owl Capital Corporation (NYSE: OBDC ) is a much more interesting pick to me than many investors claim. It's a relatively large player with an interesting portfolio structure, a focus on middle-market businesses which tend to be more resilient, and manageable non-accruals.Welcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-solid pillar in my financial foundation through d ...

Core Insights - Wall Street analysts forecast Blue Owl Capital Corporation (OBDC) will report quarterly earnings of $0.43 per share, reflecting a year-over-year decline of 8.5%, while revenues are expected to reach $452.85 million, indicating a 13.3% increase compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 0.4% in the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3] Key Metrics Projections - Analysts project 'Investment income from non-controlled, non-affiliated investments - Interest income' to be $303.80 million, reflecting a year-over-year increase of 3.2% [5] - The estimated 'Investment income from non-controlled, non-affiliated investments - Other income' is $6.06 million, indicating a year-over-year change of 14.1% [5] - The average prediction for 'Investment income from controlled, affiliated investments - Dividend income' is $29.21 million, showing a change of 1.5% from the prior year [6] - Analysts expect 'Investment income from non-controlled, non-affiliated investments - Dividend income' to reach $22.44 million, reflecting a 5.2% increase from the previous year [6] - 'Investment income from controlled, affiliated investments - Interest income' is expected to be $7.82 million, indicating a year-over-year decline of 2.2% [7] - The consensus for 'Investment income from non-controlled, non-affiliated investments - Payment-in-kind interest income' is $47.70 million, reflecting a year-over-year increase of 15.7% [7] Stock Performance - Shares of Blue Owl Capital Corporation have increased by 7.9% in the past month, compared to a 11.5% increase in the Zacks S&P 500 composite [7] - With a Zacks Rank 4 (Sell), OBDC is expected to underperform the overall market in the near future [7]

Core Viewpoint - Blue Owl Capital Corporation is expected to report its first-quarter 2025 results on May 7, 2025, with earnings estimated at 43 cents per share and revenues at $452.9 million, indicating a year-over-year earnings decline of 8.5% but a revenue growth of 13.3% [1] Financial Performance Estimates - The Zacks Consensus Estimate for Blue Owl Capital's revenues for 2025 is $1.9 billion, reflecting a year-over-year increase of 17.1% [2] - The consensus estimate for the current year's EPS is $1.70, suggesting a decline of approximately 10.5% year-over-year [2] - The company has beaten the consensus estimate in one of the last four quarters, met once, and missed twice, with an average surprise of negative 0.5% [2] Earnings Prediction - The model predicts a likely earnings beat for Blue Owl Capital, supported by a positive Earnings ESP of +2.33% and a Zacks Rank of 3 (Hold) [3] Q1 Results Influencers - The estimated net investment income for Q1 indicates a 9.5% year-over-year decline, with expected elevated net operating expenses around $250 million due to higher interest expenses and management fees [5] - Dividend income is anticipated to increase, with the Zacks Consensus Estimate for controlled affiliated dividend income showing a 1.5% year-over-year rise, while the model predicts a 2.9% growth [6][7] - Non-controlled non-affiliated interest income is expected to grow by 4.9% year-over-year according to the Zacks Consensus Estimate, with the model estimating a 3.8% increase [7] Investment Portfolio Insights - Blue Owl Capital's investment portfolio is projected to grow, driven by strong demand for financing solutions, with both the Zacks Consensus Estimate and model estimates indicating a 1.8% increase in controlled affiliated interest income compared to the same quarter last year [8] - The Zacks Consensus Estimate for payment-in-kind interest income from non-controlled, non-affiliated investments suggests a significant year-over-year growth of 15.7%, which may help offset some negatives [9] - The expected supplemental dividend per share is projected to be 3 cents [9]

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].

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Group 1 - The primary goal of the Cash Flow Kingdom Income Portfolio is to achieve an overall yield in the range of 7% to 10% by combining various income streams to create a steady portfolio payout [1] - Blue Owl Capital Corporation (OBDC) is identified as a solid Business Development Company that has experienced a decline in its share price due to a broader market downturn, resulting in an increased dividend yield [1] - The Cash Flow Club, which includes contributions from analysts focusing on company cash flows and capital access, offers features such as a personal income portfolio targeting over 6% yield and coverage of various sectors including energy midstream and commercial mREITs [1]

Core Viewpoint - Blue Owl Capital Corporation (OBDC) will release its financial results for the first quarter ended March 31, 2025, on May 7, 2025, after market close, followed by a conference call on May 8, 2025, at 10:00 a.m. Eastern Time to discuss these results [1]. Company Information - Blue Owl Capital Corporation is a specialty finance company focused on lending to U.S. middle-market companies and is regulated as a business development company under the Investment Company Act of 1940 [3]. - OBDC is externally managed by Blue Owl Credit Advisors LLC, which is an SEC-registered investment adviser and an indirect affiliate of Blue Owl Capital Inc. [3].