Core Viewpoint - Blackstone Secured Lending Fund (BXSL) is underperforming compared to its peers despite strong NAV and ROE metrics, presenting a potential investment opportunity due to its attractive valuation and credit quality [1][3]. Group 1: Company Overview - BXSL focuses on generating income through a senior secured, first-lien loan portfolio, leveraging Blackstone Credit's sourcing and underwriting platform [1]. - The fund is managed externally by Blackstone Credit, benefiting from a robust sourcing depth and disciplined underwriting practices [4]. Group 2: Financial Performance - BXSL's NAV/share increased approximately 1% year-over-year to $27.33, marking the eighth consecutive quarter of stable or rising NAV [5]. - The fund's leverage stands at approximately 1.13x debt/equity, providing a cushion under regulatory coverage limits [6]. - The quarterly dividend of 77 cents was fully covered by net investment income of 77 cents per share in Q2 2025, with expectations for continued coverage due to the portfolio's floating-rate mix [6]. Group 3: Valuation and Market Position - BXSL is trading at around 1.0x price-to-NAV, with a dividend yield of approximately 11%, indicating a valuation gap compared to its stronger credit metrics [3][7]. - The price forecast of $32 per share suggests a valuation of about 1.15 times the estimated NAV of $27.74 for fiscal year 2026, indicating a total return outlook that exceeds the BDC sector average [7]. - GAAP EPS is projected to decline from $3.44 in fiscal year 2024 to $2.92 in fiscal year 2025, stabilizing at $2.91 in fiscal year 2026, implying quarterly earnings in the range of 72 cents to 74 cents [8].