second quarter 2026
Filed Aug 6, 2026Blackstone Secured Lending Fund reported second quarter 2026 net investment income of $174 million, or $0.75 per share, and declared a third quarter 2026 dividend of $0.77 per share.
Net investment income remained close to the prior-year level and covered the regular dividend, while net income, NAV per share, investment balances and new investment activity declined and realized and unrealized losses increased.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Interest incomeother | $299 million | – | – |
| Payment-in-kind interest incomeother | $21 million | – | – |
| Dividend incomeother | $1 million | – | – |
| Other incomeother | $0 million | – | – |
| Total investment incomeother | $320 million | – | – |
| Interest expenseother | $101 million | – | – |
| Management feesother | $35 million | – | – |
| Income based incentive feesother | $2 million | – | – |
| Capital gains based incentive feesother | - | – | – |
| Other operating expensesother | $4 million | – | – |
| Total expenses before tax expenseother | $142 million | – | – |
| Net investment income before tax expenseother | $178 million | – | – |
| Excise and other tax expenseother | $4 million | – | – |
| Net investment incomeother | $174 million | – | – |
| Net investment income per share (basic and diluted)other | $0.75 | – | – |
| Net realized gain (loss)other | $(10) million | – | – |
| Net change in unrealized appreciation (depreciation)other | $(137) million | – | – |
| Net realized and unrealized gains (losses)other | $(164) million | – | – |
| Net incomeother | $9 million | – | – |
| Earnings (loss) per share (basic and diluted)other | $0.04 | – | – |
| Weighted average shares outstanding (basic and diluted)other | 232,557,932 | – | – |
| Annualized net investment income returnother | 11.4% | – | – |
| Quarterly total return based on NAVother | 0.4% | – | – |
| Investments at fair valueother | $13,364 million | – | – |
| Cash and cash equivalentsother | $267 million | – | – |
| Total debt outstanding, carrying valueother | $7,536 million | – | – |
| Total debt outstanding, principalother | $7,614 million | – | – |
| Net asset valueother | $5,939 million | – | – |
| Net asset value per shareother | $25.53 | – | – |
| Ending debt-to-equityother | 1.28x | – | – |
| Average debt-to-equityother | 1.30x | – | – |
| % First lienother | 96.8% | – | – |
| Weighted average yield on performing debt and income producing investments, at fair valueother | 9.4% | – | – |
| Number of portfolio companiesother | 313 | – | – |
| New investment commitments, at parother | $154 million | – | – |
| New investment fundingsother | $312 million | – | – |
| Investments sold and repaidother | $(754) million | – | – |
Capital returns
- Regular dividends declared per share: $0.77, compared to $0.77 in 2Q'25 and $0.77 in 1Q'26.
- The Board of Trustees declared a third quarter 2026 dividend of $0.77 per share to shareholders of record as of September 30, 2026, payable on or about October 23, 2026.
- 2Q'26 dividend coverage: 97%.
- Regular dividend yield: 12.1%.
What drove it
- New investment commitments were $154 million at par, with $312 million of investment fundings.
- Investments sold were $(40) million and investments repaid were $(714) million.
- Weighted average yield on performing debt investments at fair value was 9.4% at quarter-end, compared to 9.3% at prior quarter-end.
- The portfolio was 96.8% first lien, senior secured debt and 96.3% floating rate debt.
- Average loan-to-value was 51.9%.
- Non-accrual debt investments were 1.8% of total investments at fair value.
Concerns
- Net income was $9 million, compared to $25 million in the prior quarter and $155 million in 2Q'25.
- Net realized and unrealized gains (losses) were $(164) million, including $(137) million of net change in unrealized appreciation (depreciation).
- Net asset value per share was $25.53, compared to $26.26 at March 31, 2026 and $27.33 at June 30, 2025.
- Net investment income per share was $0.75, below the $0.77 regular dividend per share.
- New investment commitments of $154 million were below $303 million in the prior quarter and $631 million in 2Q'25.
- Ending debt-to-equity was 1.28x, compared to 1.13x at June 30, 2025.
What to watch
- Whether net investment income per share returns to or exceeds the $0.77 regular dividend per share.
- Further movement in net asset value per share after the $(137) million net change in unrealized appreciation (depreciation).
- Portfolio non-accruals, which were 1.8% of investments at fair value and 3.6% of total investments at amortized cost.
- Deployment activity following $154 million of new investment commitments and $(442) million of net funded investment activity.
- The weighted average yield on performing debt investments, which was 9.4% at June 30, 2026.
Balance sheet and cash flow
- Net asset value was approximately $5.9 billion, or $25.53 per share at quarter-end.
- $2.8 billion of liquidity in unrestricted cash and undrawn debt, subject to borrowing base capacity.
- $2.8 billion of capacity was undrawn and $2.6 billion was available to borrow as of June 30, 2026.
- Total all-in cost of debt was 5.05% in 2Q 2026; weighted average maturity on debt facilities was approximately 3.3 years.
- Net funded investment activity was $(0.4) billion in the quarter.
- No operating cash flow or free cash flow was reported.
Analysis
BXSL generated net investment income of $174 million, or $0.75 per share, in the second quarter of 2026. This was below $179 million, or $0.77 per share, in the prior quarter and $176 million, or $0.77 per share, in 2Q'25. Total investment income was $320 million, compared with $325 million in the prior quarter and $345 million in 2Q'25, while total expenses before tax expense were $142 million, compared with $146 million in the prior quarter and $165 million in 2Q'25. The $0.75 of net investment income per share covered 97% of the $0.77 regular dividend.
Net income was $9 million, or $0.04 per share, versus $25 million, or $0.11 per share, in the prior quarter and $155 million, or $0.68 per share, in 2Q'25. The period included $(164) million of net realized and unrealized gains (losses), comprising a $(10) million net realized loss and a $(137) million net change in unrealized appreciation (depreciation). NAV per share declined to $25.53 from $26.26 at March 31, 2026 and $27.33 at June 30, 2025. Quarterly total return based on NAV was 0.4%.
Portfolio activity was net negative. BXSL recorded $154 million of new investment commitments at par and $312 million of fundings, against $(754) million of investments sold and repaid, producing $(442) million of net funded investment activity. Investments at fair value were $13,364 million at June 30, 2026, compared with $13,942 million at March 31, 2026. The performing-debt and income-producing-investment yield rose to 9.4% from 9.3% at the prior quarter-end, but remained below 10.2% at June 30, 2025.
Credit positioning remained centered on senior secured lending. First-lien investments represented 96.8% of the portfolio, and 96.3% of investments were floating rate debt. Average loan-to-value was 51.9%, while non-accrual debt investments were 1.8% of total investments at fair value. Management stated that no new assets were placed on non-accrual during the quarter. The portfolio had 313 companies, down from 316 in the prior quarter.
The balance sheet retained $2.8 billion of liquidity in unrestricted cash and undrawn debt, subject to borrowing base capacity. Total debt outstanding was $7,536 million carrying value and $7,614 million principal. Ending debt-to-equity was 1.28x and net-of-cash debt-to-equity was 1.25x. BXSL declared a third quarter 2026 dividend of $0.77 per share, payable on or about October 23, 2026, but did not provide broader financial guidance.
Management, verbatim
BXSL reported healthy second - quarter earnings with no new assets placed on non - accrual. During the quarter, new investment activity exceeded $300 million, while repayments increased to over $700 million. Our portfolio, which is primarily composed of first - lien senior secured debt, remains well positioned, underpinned by stable EBITDA growth across our borrowers. We maintained a disciplined approach to deployment, leveraging the advantages of Blackstone’s scale, sourcing capabilities, and asset management expertise for the benefit of our shareholders.
Brad Marshall, Chief Executive Officer of Blackstone Secured Lending Fund
Not in the filing
stated, not guessed- GAAP versus non-GAAP designation for reported operating metrics was not stated.
- Total revenue was not reported as a line item; total investment income was reported.
- Gross profit and gross margin were not reported.
- Operating income, operating margin and operating expenses as an income-statement line item were not reported.
- Operating cash flow and free cash flow were not reported.
- Share repurchases were not reported.
- Forward financial guidance beyond the declared third quarter 2026 dividend was not reported.
- Prior outlook was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.