Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Q4 2022 Earnings Presentation
22 slides from Blackstone Secured Lending Fund's earnings presentation, Feb 27, 2023
Slide 1: Blackstone Secured Lending Fund Reports Fourth Quarter and Full Year 2022 Results
Blackstone Secured Lending Fund Reports Fourth Quarter and Full Year 2022 Results NEW YORK — February 27, 2023 — Blackstone Secured Lending Fund (NYSE: BXSL, or the “Company”) today reported its fourth quarter and full year 2022 results. Brad Marshall, Co-Chief Executive Officer of Blackstone Secure
Slide 2: About Blackstone Secured Lending Fund and Forward-Looking Statements
For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of BXSL’s website at https://ir.bxsl.com. About Blackstone Secured Lending Fund Blackstone Secured Lending Fund (NYSE:BXSL) is a specialty finance company that invests primarily in the debt o
Slide 3: Blackstone Secured Lending Fund Fourth Quarter 2022 Results
Blackstone Secured Lending Fund Fourth Quarter 2022 Results FEBRUARY 27, 2023 This presentation should be read in conjunction with BXSL’s latest annual report filed on Form 10-K for the period ended December 31, 2022. Numbers are approximate and may not add up due to rounding.
Slide 4: Highlights
BXSL HIGHLIGHTS Powerful earnings expansion as ~98% of portfolio benefits from higher interest rates. Net investment income of $0.90 per share in the quarter, up 13% from the prior quarter Portfolio is well-positioned with investments in companies with solid fundamentals and no loans on non-accr
Slide 5: Fourth Quarter Results
FOURTH QUARTER RESULTS Net investment income of $144 million, or $0.90 per share in the quarter, up 13% from $0.80 in the prior quarter, and up 34% year-over-year Net income of $122 million, or $0.76 per share in the quarter, up 31% from $0.58 in the prior quarter Earnings Summary Net asset va
Slide 6: Fourth Quarter 2022 Selected Financial Highlights
BXSL FOURTH QUARTER 2022 SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) 4Q'21 4Q'22 FY'21 FY'22 Operating results Net investment income $ 111 $ 144 $ 352 $ 484 Net income 122 122 460 405 Net investment income per share 0.67 0.90 2.43 2.91 Net income per share 0.73 0.76 3.19 2.
Slide 7: Material Growth in Net Investment Income
MATERIAL GROWTH IN NET INVESTMENT INCOME Net investment income growth driven by higher base rates benefitting portfolio yields; debt investments yielded 10.7% on average in the quarter(1), up from 9.1% in the prior quarter Net investment income increased to $0.90 from $0.80 in the prior quarter
Slide 8: Portfolio Characteristics
BXSL PORTFOLIO CHARACTERISTICS 97.9% 99.9% $9.6B of investments in first lien, of total debt investments investments at fair value senior secured debt(1) are floating rate(1) 47.5% 176 0% average loan to value portfolio companies non-accrual debt (LTV)(2)(3) investments(1) Portfolio Predominantly Po
Slide 9: Portfolio Construction
BXSL PORTFOLIO CONSTRUCTION Portfolio is well-diversified across industries with no issuer accounting for more than 4% of the portfolio Broad industry representation with largest exposures in software, health care providers & services, and professional services Top Ten Portfolio Companies(1,2) T
Slide 10: Portfolio Company Fundamentals
PORTFOLIO COMPANY FUNDAMENTALS BXSL portfolio companies are generally larger, growing faster, and more profitable than the typical private credit borrower ~2x the Scale ~2x the Growth ~35% More Profitable LTM EBITDA LTM EBITDA Growth Year-over-Year LTM EBITDA Margin $167M 28% 17% 21% $78M 9% Priva
Slide 11: Dividend Coverage History
BXSL DIVIDEND COVERAGE HISTORY Regular dividend well covered by net investment income with 4Q’22 dividend coverage ratio of 150%(1) $0.60 regular quarterly dividend raised to $0.70 as of 1Q’23, which represents the third dividend increase and 40% regular dividend growth since 3Q’21 Quarterly Div
Slide 12: Summary of Operating Results
BXSL SUMMARY OF OPERATING RESULTS ($ in millions, except share and per share data) 4Q'21 4Q'22 FY'21 FY'22 Investment Income Interest income $ 186 $ 237 $ 611 $ 796 Payment-in-kind interest income 5 10 8 40 Dividend income 0 3 0 9 Fee income 1 0 6 4 Total investment income $ 192 $ 251 $ 625 $ 850 Op
Slide 13: Statements of Financial Condition
BXSL STATEMENTS OF FINANCIAL CONDITION ($ in millions, except per share data) 12/31/2021 9/30/2022 12/31/2022 Assets Investments at fair value $ 9,855 $ 9,672 $ 9,617 Cash and cash equivalents 103 131 131 Interest receivable 63 68 98 Deferred financing costs 14 14 13 Receivable for investments 143 4
Slide 14: Funding Profile
BXSL FUNDING PROFILE Well structured, diversified capital structure with significant available liquidity Well positioned for current environment with 58% of liabilities unsecured, fixed rate at 2.97% and a low level of debt maturities over the next few years with only 6% of commitments maturing
Slide 15: Supplemental Details
Supplemental Details 15
Slide 16: Investment Activity
BXSL INVESTMENT ACTIVITY Net funded investment activity of $(44) million in the quarter: – New investment commitments of $177 million at par, and investment fundings of $175 million – Proceeds from sales and repayments of $219 million Originations and Fundings Investment Activity Summary ($ in mil
Slide 17: Fourth Quarter 2022 Net Asset Value Bridge
NET ASSET VALUE BRIDGE Fourth Quarter 2022 Net Asset Value Bridge ($ per share) $0.90 $(0.60) $0.01 $25.93 $(0.14) $25.76 (1) (2) 9/30/22 NAV Net investment Regular dividends Net realized and unrealized Net increase (decrease) 12/31/22 NAV income declared gain (loss) from capital share transactions
Slide 18: Summary of Operating Results – Comparative
BXSL SUMMARY OF OPERATING RESULTS – COMPARATIVE ($ in millions, except share and per share data) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Investment Income Interest income $ 186 $ 171 $ 175 $ 213 $ 237 Payment-in-kind interest income 5 9 11 11 10 Dividend income 0 6 - - 3 Fee income 1 0 1 3 0 Total investment
Slide 19: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS ($ in millions, except share and per share data) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Operating results Net investment income $ 111 $ 103 $ 105 $ 132 $ 144 Net income 122 107 80 96 122 Net investment income per share 0.67 0.61 0.62 0.80 0.90 Net income per share 0.73 0.63 0.47
Slide 20: Funding Sources Summary
BXSL FUNDING SOURCES SUMMARY ($ in millions) Counterparty and Principal Total Outstanding Interest Rate Maturity Date Initial Date Entered Committed (Par) Jackson Hole Funding JPM – 11/16/18 SOFR + 2.525% 5/16/2025 $ 400 $ 360 SOFR + 1.70% - Breckenridge Funding BNP – 12/21/18 (1) 12/21/2026 825 825
Slide 21: Important Disclosure Information
Important Disclosure Information 21
Slide 22: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward
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