Sixth Street Specialty Lending(TSLX) - 2025 Q4 - Annual Results

Financial Performance - For the year ended December 31, 2025, net investment income per share was $2.23, and net income per share was $1.81[2] - The return on equity (ROE) for the full year 2025 was 13.1% on a net investment income basis and 10.6% on a net income basis[2] - Total investment income for the year ended December 31, 2025, was $449.1 million, down from $482.5 million in 2024[18] - Net investment income for the year ended December 31, 2025, was $210.0 million, compared to $220.0 million in 2024[41] - Net income for the year ended December 31, 2025, was $170.5 million, down from $186.6 million in 2024[41] Asset and Liability Overview - The reported net asset value (NAV) per share decreased to $16.98 at December 31, 2025, from $17.14 at September 30, 2025[4] - Net asset value per share as of December 31, 2025, was $16.98, slightly down from $17.16 in 2024[39] - Total assets as of December 31, 2025, were $3.42 billion, compared to $3.58 billion in 2024[39] - Total liabilities as of December 31, 2025, were $1.81 billion, down from $1.97 billion in 2024[39] Investment Commitments - New investment commitments for the year totaled $1,082.2 million, a decrease from $1,242.9 million in 2024[7] - For Q4 2025, new investment commitments were $242.4 million, down from $387.7 million in Q3 2025[9] - The principal amount of investments funded reached $894.0 million, up from $838.9 million in 2024, representing a 6.5% increase[43] - The number of new investment commitments in new portfolio companies increased to 65, compared to 34 in 2024, indicating a significant growth in activity[43] - The total principal amount of investments sold or repaid was $1,196.1 million, a substantial increase of 51% from $793.7 million in 2024[43] Yield and Interest Rates - The weighted average total yield of debt and income-producing securities at fair value was 11.1% as of December 31, 2025[12] - The average interest rate on debt outstanding decreased from 7.5% in 2024 to 6.2% in 2025[19] - The weighted average yield of debt and income-producing securities at fair value was 11.1% for the year ended December 31, 2025[36] - The weighted average interest rate of new investment commitments was 10.8%, slightly down from 10.9% in 2024[43] Debt Investment Characteristics - As of December 31, 2025, 96.3% of debt investments based on fair value bore interest at floating rates[12] - Percentage of debt investment commitments at floating rates was 96.3% as of December 31, 2025[36] - The percentage of new debt investment commitments at floating rates rose to 97.8%, up from 87.6% in 2024[43] Dividends - The Company declared a first quarter 2026 base dividend of $0.46 per share and a fourth quarter supplemental dividend of $0.01 per share[4] - Supplemental dividend per share for the three months ended September 30, 2025, was $0.01, down from $0.03 in the previous quarter[36] Management and Structure - Sixth Street Specialty Lending is externally managed by Sixth Street Specialty Lending Advisers, LLC, leveraging over $125 billion in assets under management[45]