Blackstone Secured Lending Fund(US:BXSL)2025-11-10 11:10Financial Performance - The Company recorded $6.2 million and $20.8 million in non-recurring interest income for the three and nine months ended September 30, 2025, respectively, compared to $1.6 million and $3.8 million for the same periods in 2024[244]. - For the three and nine months ended September 30, 2025, base management fees were $35.0 million and $103.9 million, respectively, compared to $30.2 million and $84.3 million for the same periods in 2024, representing increases of 15.9% and 23.5% year-over-year[266]. - The Company accrued income based incentive fees of $31.3 million and $100.3 million for the three and nine months ended September 30, 2025, compared to $38.2 million and $111.4 million for the same periods in 2024, indicating a decrease of 18.1% and 10.0% year-over-year[280]. - The Company reported a net increase in net assets resulting from operations of $437.288 million for the nine months ended September 30, 2025, compared to $531.605 million for the same period in 2024[396]. - The total return based on NAV for the nine months ended September 30, 2025, was 7.4%, while the total return based on market value was -12.9%[398]. Tax and Regulatory Compliance - For the three and nine months ended September 30, 2025, the Company accrued $4.2 million and $12.2 million of U.S. federal excise tax, respectively, compared to $3.9 million and $10.7 million for the same periods in 2024[255]. - The Company evaluates tax positions to determine if they are "more-likely-than-not" to be sustained, with no material uncertain tax positions identified through September 30, 2025[252]. Investment Portfolio - As of September 30, 2025, the Company's investment portfolio at fair value totaled $13.81 billion, a slight increase from $13.09 billion as of December 31, 2024, representing a growth of approximately 5.5%[290]. - The composition of the investment portfolio as of September 30, 2025, included 97.5% in first lien debt, 1.7% in second lien debt, and 0.7% in equity, indicating a stable focus on secured lending[290]. - The geographic distribution of investments showed that 88.1% were in the United States as of September 30, 2025, compared to 88.6% as of December 31, 2024, indicating a slight decrease in U.S. concentration[292]. - The Company reported that three borrowers were on non-accrual status as of September 30, 2025, compared to four borrowers as of December 31, 2024, indicating an improvement in credit quality[293]. Debt and Financing - The Company issued $650.0 million aggregate principal amount of 2.125% notes due 2027, which will mature on February 15, 2027[347]. - The 2026 Notes, totaling $500.0 million and $300.0 million, bear interest at 3.625% and will mature on January 15, 2026[343][344]. - The outstanding debt obligations totaled $10,007,500,000 as of September 30, 2025, compared to $9,307,500,000 as of December 31, 2024, reflecting an increase of approximately 7.5%[371]. - The average principal debt outstanding for the three months ended September 30, 2025, was $7,345,800,000, up from $6,299,600,000 for the same period in 2024, representing an increase of about 16.6%[377]. Interest Rate Management - The Company uses interest rate swaps to mitigate interest rate risk associated with fixed rate liabilities, with changes in fair value recorded in the Condensed Consolidated Statements of Operations[239]. - The Company may hedge against interest rate fluctuations using instruments such as interest rate swaps, futures, options, and forward contracts[494]. - Interest rate sensitivity indicates that significant changes in market interest rates could adversely affect the Company's net investment income[491]. Shareholder Distributions - The Company intends to make quarterly distributions to shareholders, dependent on earnings and financial condition[257]. - The company declared total distributions of $530.265 million for the nine months ended September 30, 2025, with a per share amount of $2.3100[390]. - The Company declared a distribution of $0.77 per share to shareholders of record as of December 31, 2025, payable on or about January 23, 2026[412]. Administrative Expenses - For the three and nine months ended September 30, 2025, the Company incurred $0.8 million and $2.5 million in expenses under the Administration Agreement, compared to $0.5 million and $2.0 million for the same periods in 2024, reflecting a year-over-year increase of 60% and 25% respectively[285]. - The total expenses incurred under the Administration Agreement for the nine months ended September 30, 2025, represented an increase of 25% compared to the prior year, highlighting rising administrative costs[285]. Advisory Agreements - The Advisory Agreements were renewed on April 30, 2025, for a one-year period ending on May 31, 2026, with provisions for annual renewal thereafter[263]. - The changes in advisory agreements effective January 1, 2025, did not result in any change in the aggregate fees paid by the Company[262]. - The Company may terminate the Advisory Agreements upon 60 days' written notice without penalty[263].