Blackstone Lending Earnings Fall as Repayments Shrink Portfolio
Net investment income fell to $174 million as portfolio outflows reached $442 million.
Blackstone Secured Lending Fund (BXSL), the business development company, reported second-quarter net income of $9 million, or $0.04 a share, as earnings declined for a fourth consecutive quarter.
The results extended a slide that began after net income reached $132 million in the third quarter of 2023. Quarterly total return based on net asset value slowed to 0.4% from 0.7% in the first quarter and 2.3% a year earlier.
Net investment income fell to $0.75 a share from $0.77 in both the preceding quarter and the year-earlier period. Total investment income declined to $320 million from $345 million a year earlier, primarily as interest income fell to $299 million from $321 million.
Portfolio activity shifted toward repayments. Sales and repayments rose to $754 million from $185 million a year earlier and exceeded $312 million of fundings, producing $442 million of net outflows. New commitments dropped to $154 million from $303 million in the first quarter and $631 million a year earlier.
Investments at fair value consequently contracted $578 million from the end of March to $13.364 billion. Net asset value fell to $25.53 a share from $26.26, while total net assets declined to $5.939 billion from $6.100 billion.
The weighted-average yield on performing debt investments edged up sequentially to 9.4%, though it remained below 10.2% a year earlier. Average portfolio-company loan-to-value rose to 51.9% from 46.9%, while the portfolio expanded to 313 companies from 295.
Blackstone Secured Lending kept its regular dividend at $0.77 a share, leaving net investment income coverage at 97% after earnings slipped below the payout. Non-accrual investments stood at 1.8% of investments at fair value, and the company placed no new assets on non-accrual during the quarter.