Blackstone Secured Lending Fund · NYSE:BXSL
Blackstone Secured Lending Fund — Q3 2023 Earnings Presentation
22 slides from Blackstone Secured Lending Fund's earnings presentation, Nov 8, 2023
Slide 1: Blackstone Secured Lending Fund Reports Third Quarter 2023 Results
Blackstone Secured Lending Fund Reports Third Quarter 2023 Results NEW YORK — November 8, 2023 — Blackstone Secured Lending Fund (NYSE: BXSL, or the “Company”) today reported its third quarter 2023 results. Brad Marshall and Jonathan Bock, Co-Chief Executive Officers of Blackstone Secured Lending Fu
Slide 2: About BXSL 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 Third Quarter 2023 Results
Blackstone Secured Lending Fund Third Quarter 2023 Results NOVEMBER 8, 2023 This presentation should be read in conjunction with BXSL’s latest quarterly report filed on Form 10-Q for the period ended September 30, 2023. Numbers are approximate and may not add up due to rounding.
Slide 4: Highlights
BXSL HIGHLIGHTS ▪ Powerful earnings capacity as 98.8%(1) floating rate debt continues to benefit from the higher interest rate environment. Net investment income of $0.95 per share in the quarter. ▪ Portfolio is well positioned with investments in companies with solid fundamentals and only 1 issuer
Slide 5: Third Quarter Results
THIRD QUARTER RESULTS ▪ Net investment income of $161 million, or $0.95 per share in the quarter, down 10% from $1.06 in the prior quarter, and up 19% compared to 3Q 2022 ▪ Net income of $171 million, or $1.01 per share in the quarter, up 12% from $0.90 in the prior quarter, and up 74% compared to 3
Slide 6: Third Quarter 2023 Selected Financial Highlights
BXSL THIRD QUARTER 2023 SELECTED FINANCIAL HIGHLIGHTS ($ in millions, unless otherwise noted) 3Q'22 3Q'23 3Q'22 LTM 3Q'23 LTM Operating results Net investment income $ 132 $ 161 $ 451 $ 625 Net income 96 171 405 576 Net investment income per share 0.80 0.95 2.69 3.84 Net income per share 0.58 1.01 2
Slide 7: Portfolio Characteristics
BXSL PORTFOLIO CHARACTERISTICS 98.4% 98.8% $9.5B of investments in first lien, of investments are floating rate investments at fair value senior secured debt(1) debt(1) 46.9% 188 <0.1% Average loan to value portfolio companies non-accrual debt (LTV)(2)(3) investments(4) Portfolio Predominantly Portf
Slide 8: Portfolio Construction
BXSL PORTFOLIO CONSTRUCTION ▪ Broad industry representation with largest exposures in software, health care providers & services, commercial services & supplies, and professional services ▪ Diversified portfolio across issuers with no single issuer accounting for more than 4% of the portfolio Top Te
Slide 9: Private Credit Market Trends by Size
PRIVATE CREDIT MARKET TRENDS BY SIZE ▪ BXSL invests in larger companies because we believe they provide the best risk-adjusted returns ▪ Private credit market data from Lincoln International shows similar pricing trends for larger borrowers, yet greater growth and fewer defaults than those for small
Slide 10: Portfolio Company Fundamentals
PORTFOLIO COMPANY FUNDAMENTALS ▪ BXSL portfolio companies are generally larger, growing faster, and more profitable than the average private credit borrower 2x the Scale 2x the Growth 20% More Profitable LTM EBITDA LTM EBITDA Growth LTM EBITDA Margin ($ in millions) (Year-over-Year %) (%) $185M 28%
Slide 11: Dividend Coverage History
BXSL DIVIDEND COVERAGE HISTORY ▪ Regular dividend (1) of $0.77 per share, an increase of 10% quarter over quarter, representing an annualized dividend yield of 11.6% ▪ Our dividend is exceeded by net investment income, with a dividend coverage ratio of 123%(2) $1.06 Quarterly Dividends Per Share $0.
Slide 12: Summary of Operating Results
BXSL SUMMARY OF OPERATING RESULTS ($ in millions, except share and per share data) 3Q'22 3Q'23 3Q'22 LTM 3Q'23 LTM Investment Income Interest Income $ 213 $ 272 $ 745 $ 1,038 Payment-in-kind interest income 11 11 36 42 Dividend income - 0 6 4 Fee Income 3 1 5 7 Total investment income $ 227 $ 284 $
Slide 13: Summary Statements of Financial Condition
BXSL SUMMARY STATEMENTS OF FINANCIAL CONDITION ($ in millions, except per share data) 9/30/2022 12/31/2022 6/30/2023 9/30/2023 Assets Investments at fair value $ 9,672 $ 9,617 $ 9,289 $ 9,500 Cash and cash equivalents 131 131 147 146 Interest receivable 68 98 75 81 Deferred financing costs 14 13 16
Slide 14: Funding Profile
BXSL FUNDING PROFILE ▪ Well structured, diversified capital structure with significant available liquidity ▪ Well positioned for current environment with 56% of liabilities unsecured, at a 2.88%(5) fixed rate and a low level of debt maturities with only 6% maturing within the next 2 years, as of Sep
Slide 15: Supplemental Details
Supplemental Details 15
Slide 16: Investment Activity
BXSL INVESTMENT ACTIVITY ▪ Net funded investment activity of $185 million in the quarter: – New investment commitments of $656 million at par, and investment fundings of $390 million – Proceeds from sales and repayments of $205 million Originations and Fundings Investment Activity Summary ($ in mill
Slide 17: Third Quarter 2023 Net Asset Value Bridge
THIRD QUARTER 2023 NET ASSET VALUE BRIDGE $0.95 $0.06 $26.54 $26.30 $(0.77) (1) (2) 6/30/23 NAV Net investment Regular dividends Net realized 9/30/23 NAV (1) income declared and unrealized gain (loss) (1) The per share data was derived by using the weighted average shares outstanding during the peri
Slide 18: Summary of Operating Results – Comparative
BXSL SUMMARY OF OPERATING RESULTS – COMPARATIVE ($ in millions, except share and per share data) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Investment Income Interest Income $ 213 $ 237 $ 254 $ 274 $ 272 Payment-in-kind interest income 11 10 10 11 11 Dividend income - 3 - 0 0 Fee Income 3 0 1 5 1 Total investmen
Slide 19: Selected Financial Highlights
SELECTED FINANCIAL HIGHLIGHTS ($ in millions, except share and per share data) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Operating results Net investment income $ 132 $ 144 $ 149 $ 171 $ 161 Net income 96 122 139 145 171 Net investment income per share 0.80 0.90 0.93 1.06 0.95 Net income per share 0.58 0.76 0.8
Slide 20: Funding Sources Summary
BXSL FUNDING SOURCES SUMMARY ▪ $1.5B of liquidity in cash and undrawn debt (subject to borrowing base availability) as of September 30, 2023 ($ in millions) Counterparty and Principal Total Outstanding Interest Rate Maturity Date Initial Date Entered Committed (Par) Jackson Hole Funding JPM – 11/16/
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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