Blackstone Secured Lending Fund(US:BXSL) Seeking Alpha·2025-09-17 15:45Core Insights - The article provides a detailed analysis comparing Blackstone Secured Lending (BXSL) to 11 of its business development company (BDC) peers, focusing on dividend sustainability and financial metrics [1][2][3] Group 1: Dividend Analysis - BXSL declared a base dividend of $0.77 per share for Q2 2025, with a stock price of $31.63, resulting in a trailing 12-month (TTM) dividend yield of 9.74% [10] - For Q3 2025, BXSL maintained the same base dividend of $0.77 per share, with a stock price of $28.59, leading to a TTM dividend yield of 10.77% [27][28] - The cumulative undistributable taxable income (UTI) coverage ratio for BXSL was 1.86 as of 6/30/2025, significantly higher than the average of its peers [16] Group 2: Financial Metrics Comparison - BXSL's weighted average annualized yield on debt investments was 10.20% as of 6/30/2025, which is below the peer average of 11.61% [20] - The weighted average interest rate on BXSL's outstanding borrowings was 4.69%, lower than the previous year's rate of 5.19% [24] - BXSL had 99.80% of its debt investments with floating interest rates, which was advantageous during the rising interest rate environment [22] Group 3: Future Projections - The probability of BXSL maintaining a stable base dividend of $0.77 per share for Q4 2025 is estimated at 80% [33] - A broader dividend range of $0.70 to $0.77 per share is projected for Q1 2026, with a 90% probability [34] - BXSL's current stock price is considered undervalued, with a price target of approximately $33.50 per share [39]