Blackstone Secured Lending: NAV, Valuation, Dividend Versus 11 BDC Peers

Core Insights - The article focuses on analyzing Blackstone Secured Lending Fund's (BXSL) recent performance and comparing it with 11 business development company (BDC) peers, highlighting key metrics such as net asset value (NAV), economic return, and net investment income (NII) [1][2][3] Group 1: Performance Metrics - BXSL's NAV per share decreased from $27.15 at the end of Q3 2025 to $26.92 at the end of Q4 2025, reflecting a quarterly decrease of 0.85% due to net unrealized losses in portfolio companies [10] - The economic return for BXSL in Q4 2025 was $0.54 per share or 1.99%, with a trailing 24-month economic return of 24.08%, slightly above the average of its 12 BDC peers [10][11] - BXSL's adjusted NII for Q4 2025 was $0.803 per share, with a stock price to annualized NII ratio of 7.41x, which is below the peer average of 8.97x, indicating a favorable valuation [21][26] Group 2: Investment Portfolio Analysis - As of 12/31/2025, BXSL's investment portfolio consisted of 97% in senior secured first-lien loans and 2% in second-lien loans, with less than 1% in subordinated debt and equity, showing a conservative investment strategy [14][15] - BXSL's fair market value (FMV) versus cost ratio was 0.9874x, slightly below the peer average of 1.0187x, indicating a minor negative trend [16] - The non-accrual percentage for BXSL was 0.6% based on amortized cost and 0.5% based on FMV, both below the peer averages of 2.9% and 1.4%, respectively, suggesting better credit quality [17] Group 3: Market Valuation - BXSL's stock price as of 3/6/2026 was $23.82, trading at a discount of 10.62% to the estimated current NAV of $26.65, which is more attractive than the average discount of 7.42% among peers [26] - The article concludes that BXSL is undervalued based on its current stock price relative to NAV, with a price target set at approximately $32.65 per share [35][39] Group 4: Comparative Analysis - BXSL outperformed many of its BDC peers in terms of adjusted NII per share, non-accrual status, and cumulative realized gains, indicating a strong operational performance [28] - The article highlights BXSL's low management fees of 1.00% of total assets, which positively impacts shareholder returns compared to other externally-managed BDCs [28]