Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Q2 2024 Earnings Presentation
20 slides from Blackstone Secured Lending Fund's earnings presentation, Aug 7, 2024
Slide 1: Blackstone Secured Lending Fund Reports Second Quarter 2024 Results
Blackstone Secured Lending Fund Reports Second Quarter 2024 Results NEW YORK — August 7, 2024 — Blackstone Secured Lending Fund (NYSE: BXSL, or the “Company”) today reported its second quarter 2024 results. Brad Marshall and Jonathan Bock, Co-Chief Executive Officers of Blackstone Secured Lending Fu
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: Second Quarter 2024 Results
Blackstone Secured Lending Fund Second Quarter 2024 Results AUGUST 7, 2024 This presentation should be read in conjunction with BXSL’s latest quarterly report filed on Form 10-Q for the period ended June 30, 2024. Numbers are approximate and may not add up due to rounding.
Slide 4: Highlights
HIGHLIGHTS BXSL is designed with the aim to protect capital with a senior secured debt focus Powerful earnings capacity as the portfolio of 98.8%(1) floating rate debt continued to benefit from an elevated interest rate environment Portfolio is well positioned with investments in companies wit
Slide 5: Second Quarter Results
SECOND QUARTER RESULTS Net investment income of $173 million, or $0.89 per share in the quarter, compared to $0.87 per share in the prior quarter and $1.06 per share in 2Q 2023 Net income of $196 million, or $1.01 per share in the quarter, compared to $0.96 per share in the prior quarter and $0.
Slide 6: Second Quarter 2024 Selected Financial Highlights
SECOND QUARTER 2024 SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) 2Q'23 2Q'24 2Q'23 LTM 2Q'24 LTM Operating results Net investment income $ 171 $ 173 $ 597 $ 672 Net income 145 196 502 708 Net investment income per share 1.06 0.89 3.69 3.67 Net income per share 0.90 1.01 3.10
Slide 7: Portfolio Characteristics
PORTFOLIO CHARACTERISTICS 98.6% 98.8% $11.3B of investments are first lien, of investments are floating rate debt(1) investments at fair value senior secured debt(1) 47.4% 231 0.3% average loan-to-value portfolio companies non-accrual debt investments(4) (LTV)(2)(3) Portfolio Predominantly Portfolio
Slide 8: 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 9: Dividend Coverage History
DIVIDEND COVERAGE HISTORY Regular dividend of $0.77 per share, representing an annualized dividend yield of 11.3%(1) Our dividend is exceeded by net investment income, with a dividend coverage ratio of 116%(2) Historical Quarterly Dividends Per Share ($)(3) (1 ) Regular Dividend Yield 7.7% 7.6%
Slide 10: Summary of Operating Results
SUMMARY OF OPERATING RESULTS ($ in millions, except share and per share data) 2Q'23 2Q'24 2Q'23 LTM 2Q'24 LTM I nv e s tm ent I ncom e Interest Income $ 274 $ 303 $ 979 $ 1,147 Payment-in-kind interest income 11 23 42 69 Dividend income 0 0 4 0 Fee Income 5 1 9 3 Total inv e s tm e nt incom e $ 29 0
Slide 11: Summary Statements of Financial Condition
SUMMARY STATEMENTS OF FINANCIAL CONDITION ($ in millions, except per share data) 6 /30/2023 3/ 31 / 2024 6 /30/2024 As s ets Investments at fair value $ 9,289 $ 10,439 $ 11,294 Cash and cash equivalents 147 148 291 Interest receivable 75 103 114 Receivable from broker - - 2 Deferred financing costs
Slide 12: Investment Activity
INVESTMENT ACTIVITY Net funded investment activity of $0.8 billion in the quarter: – New investment commitments of approximately $1.3 billion at par, and investment fundings of $0.9 billion – Proceeds from sales and repayments of $89 million Originations and Fundings Investment Activity Summary ($
Slide 13: Funding Profile
FUNDING PROFILE Well-structured, diversified, efficient capital structure with significant available liquidity Well positioned for the current environment with 46% of fixed rate unsecured liabilities, at a weighted average coupon of 2.88%(1) and only $800 million of debt maturities within the ne
Slide 14: Supplemental Details
Supplemental Details 14
Slide 15: Second Quarter 2024 Net Asset Value Bridge
SECOND QUARTER 2024 NET ASSET VALUE BRIDGE $0.89 $0.08 $27.19 $0.12 $(0.77) $26.87 3/31/24 NAV Net investment Regular dividend Net realized and unrealized Net increase from capital share 6/30/24 NAV income (1) declared (2) gain (loss) (1) transactions (1) The per share data was derived by using the
Slide 16: Summary of Operating Results – Comparative
SUMMARY OF OPERATING RESULTS – COMPARATIVE ($ in millions, except share and per share data) 2Q'23 3Q'23 4 Q'23 1 Q'24 2Q'24 I nv e s tm e nt I ncom e Interest Income $ 274 $ 272 $ 288 $ 283 $ 303 Payment-in-kind interest income 11 11 15 20 23 Dividend income 0 0 0 - 0 Fee Income 5 1 1 0 1 Total inv
Slide 17: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS ($ in millions, except share and per share data) 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Operating results Net investment income $ 171 $ 161 $ 172 $ 166 $ 173 Net income 145 171 157 184 196 Net investment income per share 1.06 0.95 0.96 0.87 0.89 Net income per share 0.90 1.01 0.
Slide 18: Funding Sources Summary
FUNDING SOURCES SUMMARY $1.2B of liquidity in cash and undrawn debt (subject to borrowing base availability) as of June 30, 2024(1) Subsequent Event: BXSL upsized its Revolving Credit Facility by $300M, and simultaneously dropped the drawn spread by 0.225% to SOFR + 1.525% and unused fee by 0.05
Slide 19: Important Disclosure Information
Important Disclosure Information 19
Slide 20: Forward Looking Statements
FORWARD LOOKING STATEMENTS Certain information contained in this communication constitutes “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “be
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