Blackstone Secured Lending Fund (NYSE:BXSL) Announces Earnings Results, Misses Expectations By $0.16 EPS

Key Points

• BXSL missed quarterly earnings expectations: It reported $0.50 per share versus analysts’ $0.66 estimate, while revenue of $315.18 million also came in slightly below expectations.
• The dividend is set to decline: BXSL plans to keep its $0.77-per-share dividend for the fourth quarter, then cut it to $0.60 in the first quarter of 2027. Third-quarter net investment income was $0.68 per share, and NAV fell to $25.25.
• The portfolio is nearly 96% first-lien senior secured, but non-accruals rose to 2.1% of fair value from 1.8% the prior quarter. Analysts’ consensus rating remains “Hold,” with an average price target of $24.89.

Blackstone Secured Lending Fund (NYSE:BXSL - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.50 earnings per share for the quarter, missing the consensus estimate of $0.66 by ($0.16), FiscalAI reports. The business had revenue of $315.18 million during the quarter, compared to analysts' expectations of $317.81 million. Blackstone Secured Lending Fund had a return on equity of 11.86% and a net margin of 21.51%.

Here are the key takeaways from Blackstone Secured Lending Fund's conference call:

• Dividend reset announced: BXSL will maintain its $0.77-per-share dividend for the fourth quarter, then reduce it to $0.60 in the first quarter of 2027, a roughly 9.5% annualized yield on quarter-end NAV. Third-quarter NII was $0.68 per share, and NAV fell $0.28 to $25.25.
• The portfolio remains nearly 96% first-lien senior secured, with average borrower EBITDA growth of about 10% and interest coverage of 2.1x. Non-accruals increased to 2.1% of fair value from 1.8% last quarter, though the rate at cost declined to 2.8% from 3.6%.
• Management highlighted active restructuring and recovery efforts, reporting 0.87x principal recovery, excluding coupons, on fully or substantially realized restructured positions. BXSL also recorded about $10.5 million in unrealized equity gains tied to the announced sale of Genuine Cable Group.
• New investments and add-ons carried spreads above 500 basis points, and new investment yields were around 9% versus mid-to-high 8% yields on repayments. Management expects deal activity to pick up in the first half of 2027, while noting that refinancing roughly $3.2 billion of older, low-coupon notes may offset some benefit from higher base rates.

Blackstone Secured Lending Fund Stock Up 2.7%

Shares of NYSE:BXSL traded up $0.64 during midday trading on Wednesday, reaching $23.86. 2,961,803 shares of the company traded hands, compared to its average volume of 2,029,740. The firm's fifty day moving average price is $24.16 and its two-hundred day moving average price is $24.14. The firm has a market capitalization of $5.56 billion, a price-to-earnings ratio of 18.78 and a beta of 0.39. Blackstone Secured Lending Fund has a 12 month low of $22.47 and a 12 month high of $28.59.

Blackstone Secured Lending Fund Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 23rd. Investors of record on Wednesday, September 30th were paid a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a dividend yield of 12.9%. The ex-dividend date was Wednesday, September 30th. Blackstone Secured Lending Fund's payout ratio is presently 242.52%.

Analysts Set New Price Targets

BXSL has been the subject of several research analyst reports. Wall Street Zen raised Blackstone Secured Lending Fund from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Zacks Research raised shares of Blackstone Secured Lending Fund from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 5th. Citigroup initiated coverage on shares of Blackstone Secured Lending Fund in a research report on Monday, October 26th. They set a "market perform" rating for the company. Oppenheimer started coverage on shares of Blackstone Secured Lending Fund in a research report on Thursday, July 23rd. They set a "market perform" rating and a $25.00 price target for the company. Finally, Citizens Jmp began coverage on shares of Blackstone Secured Lending Fund in a report on Monday, October 26th. They set a "market perform" rating for the company. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Blackstone Secured Lending Fund presently has a consensus rating of "Hold" and an average target price of $24.89.

Blackstone Secured Lending Fund Company Profile

Blackstone Secured Lending Fund NYSE: BXSL is a business development company that invests in privately owned middle-market companies. The fund seeks to generate current income and long-term capital appreciation primarily through investments in senior secured, floating-rate loans.

BXSL's portfolio may also include second-lien loans, unsecured debt and equity investments. Its investments are generally made in companies across a range of industries, with an emphasis on businesses that have established operations and cash flows.

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