Key Highlights

  • Net asset value per share was USD 14.32 at September 30, 2026, down from USD 14.81 at December 31, 2025, as nine-month realized and unrealized losses and distributions outweighed income.
  • Third-quarter net Investment income after taxes was USD 166.9 million versus USD 190.1 million, and about USD 0.34 per share (calculated from weighted average shares).
  • Total investment income fell to USD 392.1 million from USD 453.1 million, while net increase in net Assets from operations rose to USD 180.1 million, or USD 0.37 per share.
  • The board declared a regular third-quarter Dividend of USD 0.31 per share, plus a USD 0.02 supplemental payout, compared with USD 0.37 and USD 0.02 a year earlier.

Lower Yields and Smaller Book Weigh on Blue Owl Capital (NYSE:OBDC)

Blue Owl Capital (NYSE:OBDC), a Business Development Company that lends mainly to upper middle-market US companies, filed its Quarterly Report on November 4, 2026 for the period ended September 30. Total investment income declined by USD 61.0 million as interest income fell USD 72.7 million, reflecting net repayments of roughly USD 1.88 billion and a weighted average portfolio Yield of 9.7% versus 9.8%. Net investment income after taxes dropped about 12.2% (calculated). Adjusted net investment income, which excludes purchase discount amortization from the 2025 merger, was USD 162.2 million versus USD 183.3 million.

NAV Erosion: Unrealized Losses Offset Lower Costs

Expenses fell to USD 221.9 million from USD 259.9 million as average borrowings dropped from USD 9.6 billion to USD 8.3 billion and the average rate eased from 5.8% to 5.4%. The quarter itself showed a net gain, with unrealized gains of USD 12.8 million against a USD 65.6 million loss a year earlier. Over nine months, however, net unrealized losses of USD 183.5 million and realized losses of USD 97.4 million cut per-share NAV, with the filing showing net investment income of USD 1.01 per share against distributions of USD 1.01. The company's reported share Market Value at period end was USD 10.49, below NAV.

Dividends, Buybacks and Leverage After the NAV Decline

Distributions declared in the quarter were USD 161.8 million, slightly below net investment income of USD 166.9 million. Under the 2026 repurchase program, the company bought 9.4 million shares for USD 105.5 million over nine months, leaving about USD 194.5 million of its USD 300.0 million authorization. Net leverage was 1.13 times Debt to Equity against a target range of 0.90 to 1.25 times, and asset coverage was 184%. The portfolio held 233 companies with a Fair Value of USD 15.10 billion. Risks include falling base rates, lower paydown fees, and further valuation marks.

Where Things Stand

NAV slipped mainly because losses on investments and the payout of Earnings outweighed income. Blue Owl Capital (NYSE:OBDC) earned USD 1.01 per share over nine months and distributed the same amount, while net realized and unrealized losses of USD 0.56 per share and buybacks netted to a NAV of USD 14.32. Income is trending lower with smaller Loan balances and yields, and the quarterly dividend is below last year's level. Next markers are the Credit marks on the portfolio, leverage within its 0.90 to 1.25 times range, and how fast paydowns and repurchases continue.