Sixth Street Specialty Lending (NYSE:TSLX) posted in-line Q3 earnings and total investment income on Tuesday as Q3 commitments and fundings increased and expenses declined. TSLX stock edged up 0.1% in after-hours trading.

The company's board also declared a Q4 2024 base dividend of $0.46 per share and a Q3 supplemental dividend of $0.05.

Q3 adjusted net investment income per share of $0.57, matching the Visible Alpha consensus, slipped from $0.58 in Q2 and $0.60 in last year's Q3, reflecting the impact of a higher interest rate environment combined with a small increase in activity-based fees.

Adjusted annualized return on equity, using net investment income, was 13.2% in Q3 2024, down from 13.5% in Q2 and 14.4% in Q3 2023.

Q3 adjusted EPS of $0.41 declined from $0.50 in the previous quarter and $0.77 a year ago.

Investments at fair value rose to $3.44B at Sept. 30, 2024, from $3.32B at June 30 and $3.28B at Dec. 31, 2023.

Total investment income of $119.2M, vs. the $118.6M Visible Alpha consensus, dropped from. $121.8M in Q2 and increased from $114.4M in Q3 2023.

Adjusted net asset value per share of $17.07 at Sept. 30, 2024, shrank from $17.13 at June 30.

Q3 commitments were $269.3M vs. $231.0M in the prior quarter and $205.8M a year ago. Fundings were $189.0M vs. $163.6M in Q2. Net fundings were $98.9M, compared with net payoffs of $126.7M in Q2.

Total expenses of $63.9M declined from $65.7M in the prior quarter and $64.2M a year ago.

Conference call on Nov. 6 at 8:30 AM ET.

Earlier, Sixth Street Specialty Lending reports Q3 results