Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Q4 2023 Earnings Presentation
22 slides from Blackstone Secured Lending Fund's earnings presentation, Feb 28, 2024
Slide 1: Blackstone Secured Lending Fund Reports Fourth Quarter and Full Year 2023 Results
Blackstone Secured Lending Fund Reports Fourth Quarter and Full Year 2023 Results NEW YORK — February 28, 2024 — Blackstone Secured Lending Fund (NYSE: BXSL, or the “Company”) today reported its fourth quarter and full year 2023 results. Brad Marshall and Jonathan Bock, Co-Chief Executive Officers o
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
Slide 3: Fourth Quarter and Full Year 2023 Results
Blackstone Secured Lending Fund Fourth Quarter and Full Year 2023 Results FEBRUARY 28, 2024 This presentation should be read in conjunction with BXSL’s latest annual report filed on Form 10-K for the period ended December 31, 2023. Numbers are approximate and may not add up due to rounding.
Slide 4: Highlights
HIGHLIGHTS ▪ Powerful earnings capacity as the portfolio of 98.9%(1) floating rate debt continued to benefit from an elevated interest rate environment. Net investment income of $0.96 per share in the quarter. ▪ Portfolio is well positioned with investments in companies with solid fundamentals and o
Slide 5: Fourth Quarter Results
FOURTH QUARTER RESULTS ▪ Net investment income of $172 million, or $0.96 per share in the quarter, up 1% from $0.95 in the prior quarter, and up 7% compared to 4Q 2022 ▪ Net income of $157 million, or $0.88 per share in the quarter, down 13% from $1.01 in the prior quarter, and up 16% compared to 4Q
Slide 6: Fourth Quarter 2023 Selected Financial Highlights
FOURTH QUARTER 2023 SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) 4Q'22 4Q'23 FY'22 FY'23 Operating results Net investment income $ 144 $ 172 $ 484 $ 654 Net income 122 157 405 612 Net investment income per share 0.90 0.96 2.91 3.90 Net income per share 0.76 0.88 2.44 3.65 Re
Slide 7: Portfolio Characteristics
PORTFOLIO CHARACTERISTICS 98.5% 98.9% $9.9B of investments are first of investments are floating rate investments at fair value lien, senior secured debt(1) debt(1) 48.2% 196 <0.1% average loan-to-value portfolio companies non-accrual debt (LTV)(2)(3) investments(4) Portfolio Predominantly Portfolio
Slide 8: Private Credit Market Trends by Size
PRIVATE CREDIT MARKET TRENDS BY SIZE ▪ BXSL invests in larger companies because we believe they provide the opportunity for better risk-adjusted returns ▪ Private credit market data from Lincoln International shows larger borrowers experienced greater growth over the last year and fewer defaults his
Slide 9: Portfolio Construction
PORTFOLIO CONSTRUCTION ▪ Broad industry representation with largest exposures in software, health care providers & services, professional services and commercial services & supplies ▪ Diversified portfolio across issuers with no single issuer accounting for more than 4% of the portfolio Top Ten Port
Slide 10: Portfolio Company Fundamentals
PORTFOLIO COMPANY FUNDAMENTALS ▪ BXSL portfolio companies are generally growing faster and are more profitable than the average private credit borrower ~2x the Growth 15% More Profitable LTM EBITDA Growth LTM EBITDA Margin (Year-over-Year %) (%) 9% 27% 23% 5% Private Credit Market(1) BXSL Private Cr
Slide 11: Dividend Coverage History
DIVIDEND COVERAGE HISTORY ▪ Regular dividend of $0.77 per share, representing an annualized dividend yield of 11.6% (1) ▪ Our dividend is exceeded by net investment income, with a dividend coverage ratio of 125% (2) Quarterly Dividends Per Share $1.06 $0.95 $0.96 $0.93 $0.90 $0.78 $0.80 $0.67 $0.63
Slide 12: Summary of Operating Results
SUMMARY OF OPERATING RESULTS ($ in millions, except share and per share data) 4Q'22 4Q'23 FY'22 FY'23 Investment Income Interest Income $ 237 $ 288 $ 796 $ 1,089 Payment-in-kind interest income 10 15 40 47 Dividend income 3 0 9 0 Fee Income 0 1 4 7 Total investment income $ 251 $ 304 $ 850 $ 1,144 O
Slide 13: Summary Statements of Financial Condition
SUMMARY STATEMENTS OF FINANCIAL CONDITION ($ in millions, except per share data) 12/31/2022 9/30/2023 12/31/2023 Assets Investments at fair value $ 9,617 $ 9,500 $ 9,868 Cash and cash equivalents 131 146 155 Interest receivable 98 81 94 Deferred financing costs 13 15 16 Receivable for investments 49
Slide 14: Funding Profile
FUNDING PROFILE ▪ Well-structured, diversified capital structure with significant available liquidity ▪ Well positioned for the current environment with 57% of liabilities unsecured, at a 2.88% fixed coupon and no debt maturities within the next two years, as of December 31, 2023 ▪ BXSL maintains it
Slide 15: Supplemental Details
Supplemental Details 15
Slide 16: Investment Activity
INVESTMENT ACTIVITY ▪ Net funded investment activity of $348 million in the quarter: – New investment commitments of $1.0 billion at par, and investment fundings of $874 million – Proceeds from sales and repayments of $526 million Originations and Fundings Investment Activity Summary ($ in millions)
Slide 17: Fourth Quarter 2023 Net Asset Value Bridge
FOURTH QUARTER 2023 NET ASSET VALUE BRIDGE $0.96 $0.01 $26.66 $(0.77) $26.54 $(0.08) 9/30/23 NAV Net investment Regular dividends Net realized and unrealized Net increase (decrease) 12/31/23 NAV income (1) declared (2) gain (loss) (1) from capital share transactions (1) The per share data was derive
Slide 18: Summary of Operating Results – Comparative
SUMMARY OF OPERATING RESULTS – COMPARATIVE ($ in millions, except share and per share data) 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Investment Income Interest Income $ 237 $ 254 $ 274 $ 272 $ 288 Payment-in-kind interest income 10 10 11 11 15 Dividend income 3 - 0 0 0 Fee Income 0 1 5 1 1 Total investment inc
Slide 19: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS ($ in millions, except share and per share data) 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Operating results Net investment income $ 144 $ 149 $ 171 $ 161 $ 172 Net income 122 139 145 171 157 Net investment income per share 0.90 0.93 1.06 0.95 0.96 Net income per share 0.76 0.86 0.
Slide 20: Funding Sources Summary
FUNDING SOURCES SUMMARY ▪ $1.8B of liquidity in cash and undrawn debt (subject to borrowing base availability) as of December 31, 2023 (1) ($ in millions) Counterparty and Principal Total Outstanding Interest Rate Maturity Date Initial Date Entered Committed (Par) Jackson Hole Funding JPM – 11/16/18
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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