Blackstone Secured Lending Fund (NYSE: BXSL) focuses on producing revenue via a senior secured, first-lien mortgage portfolio, backed by Blackstone Credit score’s sourcing and underwriting platform.
The corporate’s inventory efficiency has lagged behind its friends, underperforming by about 10% year-to-date, regardless of its NAV and ROE metrics exceeding these of the Purchase-rated enterprise growth corporations (BDC) group.
B Riley Securities analyst Sean-Paul Adams initiated protection on Blackstone Secured Lending Fund with a Purchase score and a 12-month value forecast of $32 per share.
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The analyst said that the corporate is buying and selling at ~1.0x price-to-NAV, whereas providing a dividend yield of round 11%. This valuation hole doesn’t align with the fund’s materially stronger credit score metrics in comparison with the broader BDC group.
Managed externally by Blackstone Credit score, BXSL advantages from the platform’s sourcing depth and disciplined underwriting. Its best-in-class payment construction, comprising a 1.0% base payment and a 17.5% incentive payment with a total-return hurdle, helps ROE era above 11%.
The fund’s credit score profile stands out, with ~98% of its portfolio in first lien loans, nonaccruals accounting for under ~0.3% of value, among the many lowest of BDC friends.
The brokerage said that NAV stability and prudent leverage additionally assist the Purchase thesis. BXSL’s second quarter 2025 NAV/share rose ~1% year-over-year to $27.33, marking the eighth consecutive quarter of flat-to-rising NAV, which analysts view as proof of conservative buildings and proactive credit score administration.
Leverage at ~1.13x debt/fairness leaves a adequate cushion beneath the regulatory protection restrict. The 77 cents quarterly dividend was absolutely coated within the second quarter 2025 by web funding revenue of 77 cents per share, and analysts anticipate continued protection supported by the portfolio’s floating-rate combine and manageable funding prices, the analyst mentioned.
Valuation stays a key half at ~1.0x NAV, BXSL trades beneath the place its credit score high quality and payment construction counsel it ought to. The $32 value forecast equates to ~1.15 occasions the fiscal yr 2026 estimate NAV of $27.74, resulting in a complete return outlook that exceeds the BDC sector common.
B. Riley’s estimates mirror a normalisation of EPS following outsized 2024 outcomes. GAAP EPS is anticipated to say no from $3.44 in fiscal yr 2024 to $2.92 in fiscal yr 2025, with a gradual profile into fiscal yr 2026 at $2.91, implying quarterly earnings within the 72 cents-74 cents vary.
Value Motion: BXSL shares have been buying and selling increased by 0.72% to $27.27 ultimately test Thursday.
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