Blackstone Secured Lending Fund(BXSL) - 2025 Q2 - Quarterly Results

Company Overview & Q2 2025 Highlights Blackstone Secured Lending Fund (BXSL) is a specialized finance company investing in private US company debt, externally managed by Blackstone Inc. affiliates, reporting strong Q2 2025 results with fully covered dividends and healthy credit performance Company Introduction Blackstone Secured Lending Fund (BXSL) is a specialized finance company primarily investing in US private company debt, regulated as a BDC and externally managed by Blackstone Inc. affiliates - Blackstone Secured Lending Fund (BXSL) is a specialized finance company primarily investing in US private company debt, regulated as a Business Development Company (BDC) under the Investment Company Act of 1940[6] - BXSL is externally managed by Blackstone Private Credit Strategies LLC, an affiliate of Blackstone Inc., which managed $1.2 trillion in assets as of June 30, 2025[6] Investments at Fair Value (as of June 30, 2025) | Metric | Amount | | :----- | :---- | | Investments at Fair Value | ~$13.3 billion | | Blackstone Inc. Total Assets Under Management | $1.2 trillion | Executive Summary of Q2 2025 Results BXSL reported strong Q2 2025 performance with $0.77 Net Investment Income per share fully covering quarterly dividends, maintaining healthy credit performance with a low non-accrual rate - BXSL reported strong quarterly results with Net Investment Income per share of $0.77, fully covering the quarterly dividend[2] - Credit performance remained healthy with a very low non-accrual rate, supported by a 98.2% first lien senior secured debt investment portfolio and a 46.9% loan-to-value ratio[2] - The company continues a prudent strategy, leveraging Blackstone's scale to benefit portfolio companies and shareholders[2] Q3 2025 Dividend Declaration The board declared a Q3 2025 dividend of $0.77 per share, payable around October 24, 2025, to shareholders of record on September 30, 2025 - The board declared a Q3 2025 dividend of $0.77 per share[3] Q3 2025 Dividend Details | Metric | Value | | :----- | :---- | | Dividend Per Share | $0.77 | | Record Date | September 30, 2025 | | Payment Date | Approximately October 24, 2025 | Second Quarter 2025 Key Performance Indicators This section highlights BXSL's Q2 2025 earnings, investment portfolio status, and liquidity position, demonstrating strong financial health and strategic investment activities Earnings Highlights BXSL achieved $176 million in Net Investment Income ($0.77 per share) and $155 million in net income ($0.68 per share) for Q2 2025, with NAV at $27.33 per share - BXSL's efficient balance sheet structure supports consistent regular dividends through strong earnings power[11] Q2 2025 Earnings Summary | Metric | Q2 2025 | Prior Quarter | Q2 2024 | | :-------------------------------- | :------ | :------------ | :------ | | Net Investment Income | $176 million | - | - | | Net Investment Income Per Share | $0.77 | $0.83 per share | $0.89 per share | | Net Income | $155 million | $0.66 per share | $1.01 per share | | Net Income Per Share | $0.68 | $0.66 | $1.01 | | Regular Dividend Per Share | $0.77 | - | - | | Dividend Yield | 11.3% | - | - | | Net Asset Value | ~$6.3 billion | - | - | | Net Asset Value Per Share | $27.33 | - | - | | Total Return This Quarter | 2.3% | - | - | | Annualized Total Return Since Inception | 11.4% | - | - | Portfolio and Investment Activity BXSL's portfolio is well-positioned with 98.9% floating-rate and 98.2% first-lien senior secured debt, a 0.3% non-accrual rate, and $600 million in new commitments this quarter - BXSL's investment portfolio is designed for strong returns and risk mitigation with 98.9% floating-rate debt focused on senior secured debt[12] - The portfolio maintains healthy underlying credit fundamentals with only 0.3% of investments on non-accrual status (at cost)[12] Q2 2025 Investment Activity | Metric | Q2 2025 | | :------------------------------------------ | :------ | | Weighted Average Yield on Performing Debt Investments (at Fair Value) | 10.2% | | New Investment Commitments This Quarter (at Face Value) | $0.6 billion | | New Investments Funded This Quarter | $0.5 billion | | Proceeds from Sales and Repayments This Quarter | $0.2 billion | Liquidity Update As of quarter-end, BXSL had $3 billion in liquidity, a 1.13x leverage ratio, and 39% fixed-rate unsecured debt with a 2.88% weighted average coupon Q2 2025 Liquidity and Leverage | Metric | Q2 2025 | | :------------------------------------------ | :------ | | Total Liquidity (Cash and Undrawn Debt) | $3.0 billion | | Leverage Ratio at Quarter-End | 1.13x | | Average Leverage Ratio | 1.13x | | Fixed-Rate Unsecured Debt as % of Total Debt | 39% | | Weighted Average Coupon on Fixed-Rate Debt | 2.88% | | Weighted Average Interest Rate on Drawn Debt | 5.03% | | Weighted Average Maturity of Debt Instruments | ~3.3 years | Detailed Financial Statements This section provides a comprehensive overview of BXSL's Q2 2025 operating results, financial condition, and Net Asset Value reconciliation, detailing key financial movements Summary of Operating Results BXSL reported $345 million in total investment income and $176 million in Net Investment Income for Q2 2025, with net realized and unrealized losses totaling $21 million Summary of Operating Results (Q2 2025 vs. Q2 2024) | Metric (Millions USD) | 2Q'24 | 2Q'25 | 2Q'24 LTM | 2Q'25 LTM | | :----------------------------------- | :---- | :---- | :-------- | :-------- | | Investment Income | | | | | | Interest Income | $303 | $321 | $1,147 | $1,311 | | Payment-in-Kind Interest Income | $23 | $22 | $80 | $83 | | Fee Income | $1 | $1 | $3 | $4 | | Total Investment Income | $327 | $345 | $1,219 | $1,398 | | Operating Expenses | | | | | | Interest Expense | $79 | $92 | $279 | $366 | | Management Fees | $28 | $35 | $103 | $131 | | Income-Based Incentive Fees | $37 | $35 | $143 | $146 | | Capital Gains-Based Incentive Fees | $3 | - | $6 | $(6) | | Other Operating Expenses | $3 | $4 | $14 | $13 | | Total Expenses | $151 | $166 | $545 | $649 | | Net Investment Income After Taxes | $173 | $176 | $672 | $733 | | Net Realized and Unrealized Gains (Losses) | | | | | | Net Realized Gains (Losses) | $2 | $(10) | $6 | $(13) | | Net Change in Unrealized Appreciation (Depreciation) | $21 | $(11) | $30 | $(102) | | Net Realized and Unrealized Gains (Losses) | $23 | $(21) | $36 | $(114) | | Net Increase (Decrease) in Net Assets Resulting from Operations | $196 | $155 | $708 | $619 | Per Share Data (Q2 2025 vs. Q2 2024) | Metric | 2Q'24 | 2Q'25 | 2Q'24 LTM | 2Q'25 LTM | | :----------------------------------- | :---- | :---- | :-------- | :-------- | | Net Investment Income Per Share (Basic and Diluted) | $0.89 | $0.77 | $3.67 | $3.35 | | Earnings (Loss) Per Share (Basic and Diluted) | $1.01 | $0.68 | $3.86 | $2.84 | | Dividends Declared Per Share (Regular) | $0.77 | $0.77 | $3.08 | $3.08 | | Weighted Average Shares Outstanding (Basic and Diluted) | 193,908,352 | 228,192,335 | N/A | N/A | Summary Statements of Financial Condition As of June 30, 2025, BXSL's investments at fair value reached $13.253 billion, with total assets of $13.711 billion, and Net Asset Value per share at $27.33 Summary Statements of Financial Condition (as of June 30, 2025) | Metric (Millions USD) | June 30, 2024 | March 31, 2025 | June 30, 2025 | | :----------------------------------- | :-------- | :-------- | :-------- | | Assets | | | | | Investments at Fair Value | $11,294 | $12,834 | $13,253 | | Cash and Cash Equivalents | $291 | $245 | $274 | | Total Assets | $11,770 | $13,969 | $13,711 | | Liabilities and Net Assets | | | | | Debt (Net of Unamortized Debt Issuance Costs) | $6,084 | $7,383 | $7,091 | | Total Liabilities | $6,376 | $7,728 | $7,423 | | Total Net Assets | $5,395 | $6,241 | $6,288 | | Total Liabilities and Net Assets | $11,770 | $13,969 | $13,711 | | Net Asset Value Per Share | $27.19 | $27.39 | $27.33 | Net Asset Value (NAV) Reconciliation NAV per share slightly decreased from $27.39 to $27.33 as of June 30, 2025, primarily due to dividends and net realized/unrealized losses, partially offset by NII and equity increases - Net Asset Value per share decreased from $27.39 as of March 31, 2025, to $27.33 as of June 30, 2025[41] Net Asset Value Per Share Reconciliation (Q2 2025) | Item | Impact Per Share | | :-------------------------------- | :--------------- | | NAV as of March 31, 2025 | $27.39 | | Net Investment Income | $0.77 | | Regular Dividends | $(0.77) | | Net Realized and Unrealized Gains (Losses) | $(0.09) | | Net Increase in Equity | $0.03 | | NAV as of June 30, 2025 | $27.33 | Portfolio Analysis This section analyzes BXSL's investment portfolio characteristics, highlighting its composition by debt type, LTV, non-accrual rates, and diversification across industries and companies Portfolio Characteristics BXSL's $13.3 billion portfolio is 98.9% floating-rate and 98.2% first-lien senior secured debt, with an average LTV of 46.9% and only 1.3% non-accrual debt, indicating strong capital protection Portfolio Characteristics (as of June 30, 2025) | Metric | Value | | :------------------------------------------ | :------ | | Investments at Fair Value | $13.3 billion | | Floating-Rate Debt Investments | 98.9% | | First Lien Senior Secured Debt Investments | 98.2% | | Average Loan-to-Value (LTV) | 46.9% | | Non-Accrual Debt Investments (at Cost) | 1.3% | | Number of Portfolio Companies | 295 | - The portfolio is predominantly first lien debt with a low average loan-to-value ratio and minimal non-accrual debt investments, indicating strong capital protection[18] Portfolio Construction (Top Companies & Industries) BXSL's highly diversified portfolio spans 295 companies and 40 industries, with no single issuer exceeding 3% and major exposures in software, healthcare, professional services, and insurance - The portfolio is diversified across 295 portfolio companies and 40 distinct industries, with no single issuer exceeding 3% of the portfolio[23] Top Ten Industries (as of June 30, 2025) | Industry | % of Portfolio | | :-------------------------------- | :------------- | | Software | 20% | | Healthcare Providers & Services | 10% | | Professional Services | 9% | | Insurance | 8% | | Commercial Services & Supplies | 8% | | IT Services | 5% | | Healthcare Technology | 5% | | Aerospace & Defense | 4% | | Diversified Consumer Services | 4% | | Distributors | 3% | - The largest industry exposures are concentrated in software, healthcare providers & services, professional services, and insurance[23] Dividend Performance This section details BXSL's dividend coverage history, showing consistent dividend payments fully covered by Net Investment Income, along with associated dividend yields Dividend Coverage History BXSL's Q2 2025 regular dividend of $0.77 per share was fully covered by Net Investment Income, achieving a 100% coverage ratio and an 11.3% annualized dividend yield - The Q2 2025 regular dividend was $0.77 per share, with an annualized dividend yield of 11.3%[27] - Net Investment Income per share fully covered the dividend, with a dividend coverage ratio of 100% for Q2 2025[27] Historical Dividend Coverage and Yield | Quarter | Regular Dividend ($) | Net Investment Income ($) | Regular Dividend Yield | Regular Dividend Coverage | | :------ | :------------------- | :------------------------ | :--------------------- | :------------------------ | | 2Q'24 | $0.77 | $0.89 | 8.2% | 117% | | 3Q'24 | $0.77 | $0.91 | 9.3% | 133% | | 4Q'24 | $0.77 | $0.84 | 9.3% | 150% | | 1Q'25 | $0.77 | $0.83 | 10.7% | 133% | | 2Q'25 | $0.77 | $0.77 | 11.3% | 100% | Investment Activity Details This section provides a detailed breakdown of BXSL's Q2 2025 investment activities, including originations, fundings, sales, and repayments, along with the weighted average yield of new investments Originations and Fundings BXSL's Q2 2025 net funded investment activity was $300 million, with $600 million in new commitments, $500 million funded, and $200 million recovered from sales and repayments - Net funded investment activity for the quarter was $300 million[33] Q2 2025 Investment Activity Summary | Metric | Q2 2025 | | :------------------------------------------ | :------ | | Investment Commitments (at Face Value) | $631 million | | Investment Fundings | $530 million | | Investments Sold | $(10) million | | Investments Repaid | $(175) million | | Net Funded Investment Activity | $345 million | | Average New Investment Commitment | $23 million | | Number of New Portfolio Companies | 15 | | Weighted Average Yield on New Investments | 9.8% | | Weighted Average Yield on Investments Fully Sold or Repaid | 10.3% | - New investment commitments totaled $600 million (at face value), with $500 million in investment fundings. Proceeds from sales and repayments amounted to $200 million[33] Funding and Capital Structure This section outlines BXSL's well-structured and diversified capital, including liquidity, debt composition, and investment-grade credit ratings, positioning it favorably in the current market Funding Profile Overview BXSL maintains a well-structured, diversified, and efficient capital structure with $3 billion in liquidity, 39% fixed-rate unsecured debt at 2.88% WAC, and limited near-term debt maturities, supported by investment-grade credit ratings - BXSL maintains a well-structured, diversified, and efficient capital structure with $3 billion in available liquidity as of June 30, 2025[38] - The company is well-positioned in the current environment with 39% fixed-rate unsecured debt at a 2.88% weighted average coupon and only $2.9 billion in debt maturing over the next two years[38] - BXSL maintains investment-grade corporate credit ratings from Moody's (Baa2/Stable), S&P (BBB-/Positive), and Fitch (BBB/Stable)[38] Funding Sources Summary BXSL's funding sources comprise various asset-backed facilities, a revolving credit facility, and unsecured notes with diverse maturities and rates, totaling $7.108 billion in outstanding principal at a 5.03% weighted average interest rate Funding Sources Summary (as of June 30, 2025) | Facility/Notes | Interest Rate | Maturity Date | Committed Principal (Millions USD) | Total Outstanding Principal (Millions USD) | | :-------------------------------- | :------------ | :------------ | :----------------------- | :--------------------- | | Jackson Hole Funding | SOFR + 1.95% | May 17, 2027 | $500 | $100 | | Breckenridge Funding | SOFR + 1.90% | June 18, 2029 | $1,175 | $596 | | Big Sky Funding | SOFR + 1.85% | September 30, 2027 | $650 | $343 | | Revolving Credit Facility | SOFR + 1.525%-1.775% | August 12, 2029 | $2,325 | $1,211 | | 2026 Notes | 3.625% | January 15, 2026 | $800 | $800 | | New 2026 Notes | 2.750% | September 16, 2026 | $700 | $700 | | 2027 Notes | 2.125% | February 15, 2027 | $650 | $650 | | 2028 Notes | 2.850% | September 30, 2028 | $650 | $650 | | November 2027 Notes | 5.875% (Swapped) | November 15, 2027 | $400 | $400 | | April 2028 Notes | 5.350% (Swapped) | April 13, 2028 | $700 | $700 | | June 2030 Notes | 5.300% (Swapped) | June 30, 2030 | $500 | $500 | | BXSL 2024-1 CLO | SOFR + 1.51%-1.78% | October 20, 2036 | $458 | $458 | | BXSL 2025-1 Facility | SOFR + 1.65% | December 27, 2028 | $400 | - | | Total | 5.03% (Weighted Average) | | $9,908 | $7,108 | - As of June 30, 2025, total outstanding debt (principal) was $7.108 billion, with a weighted average interest rate of 5.03%[45] Comparative Financial Highlights This section presents a comparative analysis of BXSL's operating results, balance sheet, and portfolio metrics across recent quarters, illustrating trends in profitability, asset growth, and portfolio composition Comparative Operating Results From Q2 2024 to Q2 2025, Net Investment Income per share decreased from $0.89 to $0.77, and earnings per share from $1.01 to $0.68, indicating a decline in profitability despite stable total investment income Comparative Operating Results (Quarterly Trends) | Metric (Millions USD) | 2Q'24 | 3Q'24 | 4Q'24 | 1Q'25 | 2Q'25 | | :----------------------------------- | :---- | :---- | :---- | :---- | :---- | | Total Investment Income | $327 | $343 | $353 | $358 | $345 | | Net Investment Income After Taxes | $173 | $186 | $183 | $189 | $176 | | Net Realized and Unrealized Gains (Losses) | $23 | $(34) | $(20) | $(39) | $(21) | | Net Increase (Decrease) in Net Assets Resulting from Operations | $196 | $152 | $162 | $150 | $155 | | Net Investment Income Per Share (Basic and Diluted) | $0.89 | $0.91 | $0.84 | $0.83 | $0.77 | | Earnings (Loss) Per Share (Basic and Diluted) | $1.01 | $0.75 | $0.75 | $0.66 | $0.68 | | Dividends Declared Per Share (Regular) | $0.77 | $0.77 | $0.77 | $0.77 | $0.77 | | Weighted Average Shares Outstanding (Basic and Diluted) | 193,908,352 | 203,419,337 | 217,362,279 | 226,577,167 | 228,192,335 | - Net Investment Income per share and earnings per share generally showed a downward trend from Q2 2024 to Q2 2025[43] Comparative Balance Sheet and Portfolio Metrics From Q2 2024 to Q2 2025, investments at fair value grew from $11.294 billion to $13.253 billion, while NAV per share remained stable and portfolio companies increased from 231 to 295 Comparative Balance Sheet and Portfolio Metrics (Quarterly Trends) | Metric | 2Q'24 | 3Q'24 | 4Q'24 | 1Q'25 | 2Q'25 | | :------------------------------------------ | :---- | :---- | :---- | :---- | :---- | | Investments at Fair Value (Millions USD) | $11,294 | $11,626 | $13,093 | $12,834 | $13,253 | | Total Outstanding Debt, Principal (Millions USD) | $6,112 | $6,403 | $7,094 | $7,414 | $7,108 | | Net Asset Value (Millions USD) | $5,395 | $5,701 | $6,077 | $6,241 | $6,288 | | Net Asset Value Per Share | $27.19 | $27.27 | $27.39 | $27.39 | $27.33 | | Debt to Equity Ratio at Period End | 1.13x | 1.12x | 1.17x | 1.19x | 1.13x | | First Lien % | 98.6% | 98.7% | 98.0% | 98.2% | 98.2% | | Weighted Average Yield on Performing Debt | 11.6% | 11.2% | 10.4% | 10.2% | 10.2% | | Number of Portfolio Companies | 231 | 252 | 276 | 284 | 295 | - The company significantly expanded its portfolio, increasing the number of portfolio companies from 231 to 295, while maintaining a high percentage of first lien debt[44] Important Disclosures This section includes critical disclaimers regarding forward-looking statements, emphasizing inherent risks and uncertainties, and provides contact information for various inquiries Forward-Looking Statements This section states that the communication contains forward-looking statements subject to risks and uncertainties, which may cause actual results to differ materially, and BXSL disclaims any obligation to update them - The report contains forward-looking statements, identifiable by terms such as 'outlook,' 'expect,' 'potential,' and 'projected'[7][48] - These statements are subject to various risks and uncertainties, and actual results may differ materially from those indicated[7][48] - Except as required by federal securities law, BXSL assumes no obligation to publicly update or revise any forward-looking statements[7][48] Contacts Contact information is provided for investor relations, fund and portfolio inquiries, and media relations - Contact information is provided for investors, fund and portfolio inquiries, and media[8]