$BXSL (+1,22%)
Blackstone Secured Lending Fund (NYSE:BXSL) released its fourth quarter 2025 results on February 25, 2026, with net investment income of $0.80 per share, beating analyst expectations but representing a quarter-over-quarter decline. The business development company announced a new share buyback program of USD 250 million and maintained the quarterly dividend at USD 0.77 per share. This is 104% covered by the profit.
Quarterly performance highlights
The company's fourth quarter financial results presentation showed an annualized return on net investment income of 11.8%. However, absolute net investment income per share was down from $0.82 in the third quarter and $0.84 in the prior year quarter. Net income totaled USD 126 million, or USD 0.55 per share, compared to USD 0.57 per share in the previous quarter and USD 0.75 per share in the fourth quarter of 2024.
Portfolio quality and composition
BXSL's investment portfolio had robust credit fundamentals, with the company emphasizing its defensive positioning through senior secured loans. The portfolio's fair value investments of $14.2 billion were spread across 316 portfolio companies, with 97.6% in senior secured debt.
Non-performing loans accounted for only 0.6% of the portfolio at cost, indicating careful loan selection and monitoring. The weighted average loan-to-value ratio increased from 46.0% in the previous year to 50.5%, while the average EBITDA of the portfolio companies grew from USD 198 million to USD 219 million in the fourth quarter of 2024.
The fund added 13 new portfolio companies in the quarter with an average investment volume of USD 38 million. The new investments generated a weighted average return of 8.9%, which was below the 9.9% return of fully sold or redeemed investments and thus contributed to the overall return of the portfolio.
Strategic focus and future outlook:
Management highlighted strategic investments in artificial intelligence and infrastructure during the results conference call, noting access to over $40 billion in available funding through the broader Blackstone platform. The company's focus on these growth sectors positions the portfolio for potential value growth, although the presentation acknowledged ongoing market volatility and macroeconomic pressures.
Market positioning and valuation:
With a share price of approximately $24 and a net asset value (NAV) of $26.92, BXSL compares favorably to historical price trends and similar valuations in the business development company space at an 11% discount to book value. The newly authorized share buyback program of USD 250 million - equivalent to approximately 4% of current market capitalization - signals management's confidence in the intrinsic value of the portfolio.
Source at investing.com
