Owl Rock(OBDC) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter GAAP net investment income ("NII") per share was $0.37, down from $0.42 in the previous quarter[9] - Total investment income for the three months ended September 30, 2025, was $453.1 million, compared to $485.8 million in the previous quarter and $406.0 million in the same quarter last year[34] - Net investment income for the same period was $190.1 million, down from $216.7 million in the previous quarter but up from $184.9 million year-over-year[34] - Total investment income for Q3 2025 was $453 million, down 6.8% from $486 million in Q2 2025, but up 10.5% from $406 million in Q3 2024[43] - Adjusted net investment income for Q3 2025 was $183 million, a decrease of 11.2% from $206 million in Q2 2025, and unchanged from $185 million in Q3 2024[43] - The net increase in net assets resulting from operations for Q3 2025 was $128 million, a decrease from $138 million in Q2 2025 and down from $135 million in Q3 2024[43] Investment Commitments and Portfolio - New investment commitments for the third quarter totaled $1.3 billion, an increase from $1.1 billion in the prior quarter[15] - The weighted average interest rate of new investment commitments was 9.0% for the third quarter[17] - Total investments at fair value reached $17.1 billion, compared to $16.9 billion as of June 30, 2025[11] - The fair value of investments increased to $17.1 billion as of September 30, 2025, up from $16.9 billion in the previous quarter and $13.4 billion year-over-year[34] - Investments on non-accrual represented 1.3% of the portfolio at fair value, up from 0.7% in the previous quarter[9] Dividends and Shareholder Returns - The company declared a fourth quarter 2025 regular dividend of $0.37 per share, representing an annualized dividend yield of 9.9%[9] - The company declared a base dividend of $0.37 per share, consistent with the previous quarters, while supplemental dividends were $0.00, $0.02, and $0.05 for the last three quarters respectively[34] Expenses and Liabilities - Total expenses decreased to $260.0 million for the third quarter, down from $266.8 million in the previous quarter[21] - The company incurred total operating expenses of $259.89 million for the three months ended September 30, 2025, compared to $217.56 million in 2024, reflecting an increase of approximately 19.5%[38] - Total liabilities rose to $9.99 billion as of September 30, 2025, from $7.91 billion as of December 31, 2024, indicating an increase of around 26%[36] Asset and Debt Management - As of September 30, 2025, the company had $321.3 million in cash and restricted cash, with total debt outstanding of $9.6 billion, including $2.9 billion of undrawn capacity on credit facilities[22] - The company’s debt increased to $9.53 billion as of September 30, 2025, from $7.46 billion as of December 31, 2024, marking a rise of about 28%[36] - The company is in compliance with all financial covenants under its credit facilities as of September 30, 2025, indicating strong liquidity and capital resources[22] Mergers and Corporate Actions - The company announced a definitive merger agreement with OBDC II, expected to enhance long-term shareholder value[4] - OBDC's board approved a new repurchase program allowing for the repurchase of up to $200 million of common stock[6] - The company plans to file a proxy statement and registration statement with the SEC in connection with the upcoming mergers, which will include important information about the companies involved[30] Shareholder Metrics - The net asset value ("NAV") per share decreased to $14.89 from $15.03 in the previous quarter[9] - The net asset value per share decreased to $14.89 as of September 30, 2025, from $15.26 as of December 31, 2024[36] - The company’s weighted average shares outstanding increased to 511,048,237 for the three months ended September 30, 2025, compared to 390,217,304 in the same period of 2024[38]