Key Highlights

  • Total Investment income was USD 315.18 million against an estimate of USD 317.81 million and USD 358.56 million last year.
  • Net investment income was USD 0.68 per share against an estimate of USD 0.66; Earnings Per Share were USD 0.50.
  • Net asset value per share was USD 25.25, compared with USD 25.53 at the end of the prior quarter.
  • The board declared USD 0.77 per share for the fourth quarter and USD 0.60 for the first quarter of 2027.

Blackstone Secured Lending Fund (NYSE:BXSL) paired its third quarter report with a change to its payout schedule. The board declared a Dividend of USD 0.77 per share for the fourth quarter, then set USD 0.60 per share for the first quarter of 2027, which management said completes a transition toward a level aligned with portfolio earnings power. Net investment income was USD 0.68 per share, against an estimate of USD 0.66, and total investment income was USD 315.18 million against an estimate of USD 317.81 million.

Dividend Reset and Capital Structure Plans

The chief executive said the USD 0.60 rate represents an annualized distribution Yield of approximately 9.5% on third quarter net asset value. The chief financial officer put undistributed earnings at about USD 1.68 per share at quarter end, against USD 1.80 at the start of the year. The company is midway through refinancing about USD 3.2 billion of fixed rate notes issued in 2020 and 2021 at an average coupon of 2.97%.

Gross and net Leverage were 1.22 and 1.2 times Debt to equity, against 1.28 and 1.25 a quarter earlier, within a target range of 1 to 1.25 times. No shares were repurchased under the discretionary plan of up to USD 250 million.

The Quarter in Detail

Net investment income after tax was USD 158.14 million, compared with USD 189.47 million in the third quarter of 2025. Interest expense was USD 98.94 million and management fees were USD 33.79 million. Income-based incentive fees were USD 16.84 million, against USD 31.25 million a year earlier, which the chief financial officer linked to a smaller benefit from the three-year incentive fee look back.

Net realized losses were USD 231.35 million, while net unrealized appreciation was USD 190.06 million. Net increase in net Assets from operations was USD 116.84 million, or USD 0.50 per share, against USD 132.44 million, or USD 0.57, a year earlier. Realized losses of USD 0.10 per share mainly reflected the completed Medallia restructuring.

Portfolio and Balance Sheet Detail

The portfolio stood at USD 12.9 billion of investments at fair value, with USD 7.2 billion of debt outstanding, USD 5.9 billion of net assets and USD 2.6 billion of liquidity. Management described the portfolio as nearly 96% first Lien senior secured. Non-accruals were 2.1% at Fair Value and 2.8% at cost, against 1.8% and 3.6% in the prior quarter. Three names left non-accrual status, including Medallia, and three were added.

Repayments and sales were over USD 650 million, and about USD 250 million was funded in new deals at all-in spreads above 500 basis points. Committed debt capacity was USD 9.7 billion, with 62% of Funded Debt unsecured. The revolving Credit Facility was extended to August 2031 with commitments of approximately USD 2.5 billion, and the all-in cost of debt was 5.14%.

Signposts for the Next Quarter

Net investment income of USD 0.68 per share sits alongside a USD 0.77 dividend, net asset value of USD 25.25 per share and leverage of 1.22 times. Management named the fourth quarter dividend of USD 0.77 and the first quarter 2027 dividend of USD 0.60 as the next payout markers.

It also pointed to USD 650 million of maturities in the first quarter of 2027, the refinancing of the 2020 and 2021 fixed rate notes, and a leverage target of 1 to 1.25 times. The chief executive named the pending sale of Genuine Cable Group, subject to customary closing conditions, as the seventh realized or substantially realized Equity position in the fund.