Blackstone Secured Lending Fund.
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did BXSL Beat Earnings? Q1 2026 Results
Blackstone Secured Lending Fund posted a narrow but meaningful beat in Q1 2026, with net investment income of $0.77 per share edging past the $0.76 consensus estimate by 1.25%, even as mounting unrealized losses weighed heavily on the quarter's overall picture. Total investment income reached $325.00 million, up 29.3% year over year, yet the headline result masked significant stress beneath the surface: net unrealized depreciation totaled $155.00 million, a sharp deterioration from $44.00 million in Q1 2025, collapsing net income to just $25.00 million, or $0.11 per share, compared to $150.00 million a year ago. Yield compression added further pressure, with the weighted average yield on performing debt falling to 9.3% from 10.2%, while new originations yielded only 7.7% against 9.1% on exiting investments. NAV per share slipped to $26.26, down from $27.39 a year ago. Management pointed to 97.6% first lien exposure and stable borrower interest coverage of 2.0x as evidence of defensive positioning, though rising non-accruals and tightening dividend coverage signal a more cautious road ahead.
- Net investment income of $0.77 per share fully covered the regular dividend
- 97.6% first lien, senior secured portfolio with 95.8% floating rate exposure
- Weighted average yield on performing debt compressed to 9.3% from 9.6% in prior quarter and 10.2% a year ago
- Interest income declined to $302 million from $336 million year-over-year
- Income-based incentive fees dropped to $2 million from $34 million year-over-year due to lower total returns
- Net unrealized depreciation of $155 million weighed heavily on net income
- Non-accrual debt investments increased to 3.1% of fair value (4.7% at amortized cost)
- High single-digit percent LTM EBITDA growth across borrowers with 2.0x interest coverage ratios
“BXSL reported another strong quarter despite recent market volatility, with net investment income per share fully covering our dividend per share of $0.77, representing an 11.7% annualized dividend yield on NAV of $26.26 per share. New investment activity was nearly $325 million while repayments grew to nearly $450 million. While non - accruals increased during the quarter from historically low levels, our portfolio of primarily first - lien senior secured debt remains well positioned, underpinned by high single - digit percent LTM EBITDA growth across our borrowers and stable interest coverage ratios of 2.0x. Overall, we believe performance continues to be supported by high current income, senior positioning with strong documentation protection, and proactive portfolio management.”
Blackstone Secured Lending Fund CEO, on the earnings call
Forward Guidance & Outlook
Management expressed confidence in BXSL's portfolio positioning despite market volatility, citing high single-digit percent LTM EBITDA growth across borrowers, stable interest coverage ratios of 2.0x, and strong documentation protection. The portfolio remains defensively positioned with 97.6% first lien senior secured exposure and 51.7% average loan-to-value. However, non-accruals increased from historically low levels to 3.1% at fair value, and new investment yields of 7.7% are compressing relative to exiting investment yields of 9.1%.
BXSL YoY Financials
Figures from SEC filings and company reports. Not investment advice.