The following is a summary of the Blackstone Secured Lending Fund (BXSL) Q2 2024 Earnings Call Transcript:
Financial Performance:
BXSL reported a record quarter in Q2 2024, with net investment income per share at $0.89, a 13.2% annualized return on equity, up from $0.87 in the previous quarter.
The company's net income per share increased to $1.01 from $0.96 quarter-over-quarter.
Net asset value per share rose by 1.2% to $27.19 from $26.87 since last quarter.
The dividend was declared at $0.70 per share, representing an 11.3% annualized dividend yield.
Business Progress:
Q2 2024 saw BXSL's most active quarter since 2021 for originations, totaling $1.3 billion in commitments and $891 million in fundings, nearly all in first lien senior secured debt.
The company successfully integrated strategic repositioning in sectors with historically lower default rates and maintained strong liquidity position at $1.2 billion.
Opportunities:
Increased focus on middle-market companies providing exposure to compelling risk-adjusted opportunities, particularly in software, healthcare, and business services sectors.
Growth opportunities acknowledged through the acquisition of new clients due to Blackstone's value creation programs.
Risks:
The gradual growth from AI services as Azure AI scales and general availability dates approach could pose a risk if growth expectations do not meet market predictions.
With an active quarter for originations, any potential economic downturn or increased competition could impact liquidity and the default rate among newly acquired high credit companies.
More details: BLACKSTONE SECD LENDING FD IR
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