Business development companies, or BDCs, benefited greatly from the rising rate era. However, with the Fed having begun lowering rates in September '24, the market has been taking a more cautious approach to the BDC industry. The main worry is that BDCs' earnings will decline inWith Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at ...

When I previously covered Sixth Street Specialty Lending (NYSE: TSLX ), I issued a buy rating because of the consistent earnings and price range. However, my outlook has changed, and I am downgrading my rating to a hold becauseFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 10 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles - seeking ...

Sixth Street (TSLX) reported $119.22 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.2%. EPS of $0.57 for the same period compares to $0.60 a year ago.The reported revenue represents a surprise of -0.52% over the Zacks Consensus Estimate of $119.85 million. With the consensus EPS estimate being $0.58, the EPS surprise was -1.72%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Sixth Street (TSLX) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.72%. A quarter ago, it was expected that this business development company would post earnings of $0.57 per share when it actually produced earnings of $0.58, delivering a surprise of 1.75%.Over the last four quart ...

Our investment activity for the three months ended September 30, 2024 and 2023 is presented below (information presented herein is at par value unless otherwise indicated). As of September 30, 2024 and December 31, 2023, our investments consisted of the following: The weighted average yields and interest rates of our performing debt investments at fair value as of September 30, 2024 and December 31, 2023 were as follows: 55 Results of Operations | --- | --- | --- | --- | --- | --- | --- | --- | --- | |----- ...

Sixth Street Specialty Lending (NYSE: TSLX ) positions itself as one of the safest business development companies regarding portfolio structure and regular dividend safety. As we will later review the numbers, that's not an unreasonable stance given its regular (base) dividend coverage, which ensures its resilience 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 pil ...

S I X T H S T R E E T S P E C I A L T Y L E N D I N G Quarter Ended June 30, 2024 EARNINGS PRESENTATION DISCLAIMER AND FORWARD-LOOKING STATEMENT References in this presentation ("Presentation") to "TSLX," "we," "us," "our" and "the Company" refer to Sixth Street Specialty Lending, Inc. This Presentation includes forward-looking statements about TSLX that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estim ...

Sixth Street (TSLX) reported $121.82 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 13.2%. EPS of $0.58 for the same period compares to $0.58 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $120.33 million, representing a surprise of +1.23%. The company delivered an EPS surprise of +1.75%, with the consensus EPS estimate being $0.57. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- a ...

Financial Performance - Sixth Street Specialty Lending, Inc. reported net investment income of $0.59 per share and net income of $0.51 per share for Q2 2024, reflecting annualized ROE of 13.9% and 11.9% respectively[1][2] - Adjusted net investment income and adjusted net income for Q2 2024 were $53.8 million ($0.58 per share) and $46.1 million ($0.50 per share), with annualized ROE of 13.5% and 11.6% respectively[2] - Total investment income for Q2 2024 was $121.8 million, up from $107.6 million in Q2 2023, primarily due to net funding activity and increased reference rates[18] - Net investment income for the three months ended June 30, 2024, was $55.1 million, compared to $48.8 million for the same period in 2023, reflecting a year-over-year increase of 12.8%[28] - Earnings per common share for the three months ended June 30, 2024, were $0.51, down from $0.63 in the same quarter of 2023[28] Dividends - The company declared a third quarter 2024 base dividend of $0.46 per share and a supplemental dividend of $0.06 per share[3][9] Investment Activity - New investment commitments for Q2 2024 amounted to $231.0 million, with $163.6 million funded across eight new portfolio companies[10][15] - New investment commitments for the quarter ended June 30, 2024, totaled $231.0 million, a decrease of 11.3% from $260.4 million in the same quarter of 2023[30] - The principal amount of investments funded during the quarter was $163.6 million, a decrease from $240.0 million in the same quarter of 2023[30] - The gross originations for the quarter were $1,858.8 million, compared to $1,522.9 million in the previous year, indicating a significant increase in investment activity[30] Assets and Liabilities - Total assets reached $3,387.0 million, an increase from $3,343.8 million, reflecting a growth of 1.30%[24] - Total liabilities decreased to $1,787.9 million from $1,847.4 million, a reduction of 3.22%[26] - As of June 30, 2024, the company had total principal debt outstanding of $1,785.0 million and a debt-to-equity ratio of 1.12x[16][20] Portfolio Composition - The company's portfolio consisted of 92.8% first-lien debt investments, with 99.6% of debt investments bearing interest at floating rates[11][12] - Total investments at fair value increased to $3,317.1 million as of June 30, 2024, compared to $3,283.1 million as of December 31, 2023, reflecting a growth of 1.04%[24] Expenses - Net expenses for Q2 2024 totaled $65.4 million, an increase from $57.9 million in Q2 2023, mainly due to rising reference rates affecting the weighted average interest rate on debt[18] - Total expenses for the three months ended June 30, 2024, were $65.7 million, an increase of 12.5% from $58.2 million in the same quarter of 2023[28] Net Asset Value - The reported net asset value (NAV) per share increased to $17.19 as of June 30, 2024, compared to $17.17 at March 31, 2024, driven by overearning of the base quarterly dividend[3][5] - Net asset value per share rose to $17.19 from $17.04, indicating an increase of 0.88%[26] Yield and Interest Rates - The weighted average total yield of debt and income-producing securities at fair value was 13.8% as of June 30, 2024[12][14] - Weighted average yield of debt and income-producing securities at fair value was 13.8%, down from 14.1%[24] - The weighted average interest rate of new investment commitments was 11.6%, down from 12.6% in the same quarter of 2023[30] Unrealized Gains and Losses - The company reported a net change in unrealized gains (losses) of $(9.5) million for the quarter, compared to a gain of $2.8 million in the same period of 2023[28]

Darrin Hughes/iStock via Getty Images Business development companies often invest in middle-market business debt. These are companies that are too small to make offerings on the bond markets but too large for a typical business loan. The typical loan that a BDC makes yields about prime plus 2 - 3%. On the liabilities side, BDCs use leverage to earn more, and the debt that BDCs incur is typically in the form of a bond, note, or baby bond. By law, BDCs are required to stay below a debt-to-equity ratio of 2. H ...