Blue Owl Capital Corporation Reports Full Year Results and Fourth Quarter Net Investment Income Per Share of $0.47 and Net Asset Value Per Share of $15.26
PR Newswire
NEW YORK, Feb. 19, 2025
NEW YORK, Feb. 19, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC, or the "Company") today announced financial results for its full year and fourth quarter ended December 31, 2024.
FOURTH QUARTER 2024 HIGHLIGHTS
-- Fourth quarter net investment income ("NII") per share of $0.47, in-line
with the prior quarter and exceeding the regular dividend by 27%
-- Based on OBDC's supplemental dividend framework, the Board of Directors
(the "Board") declared a fourth quarter supplemental dividend of $0.05
per share
-- Total dividends for the fourth quarter were $0.42 per share, representing
an annualized dividend yield of 11.0% based on fourth quarter net asset
value ("NAV") per share
-- NAV per share of $15.26, as compared with $15.28 as of September 30,
2024, driven by unrealized losses from credit marks in the portfolio,
partially offset by over-earning of the base dividend
-- New investment commitments for the fourth quarter totaled $1.7 billion,
offset by $1.6 billion of sales and repayments, as compared with $1.2
billion of new investment commitments and $1.1 billion of sales and
repayments for the three months ended September 30, 2024. The weighted
average total yield of debt and income producing investments was 11.1% at
fair value
-- Investments on non-accrual decreased to 0.4% of the portfolio at fair
value, as compared with 0.6% as of September 30, 2024
"Our fourth quarter results concluded another strong year for OBDC, delivering a 12.4% annualized return on equity, supported by continued strong portfolio performance and robust origination activity," commented Craig W. Packer, Chief Executive Officer. "Our portfolio has demonstrated resilience and stable credit quality over the past year, and we expect to build on our momentum in 2025 by leveraging the benefits of enhanced scale resulting from our completed merger with OBDE."
Merger Close
Subsequent to quarter-end, on January 13, 2025, OBDC closed the previously announced merger with Blue Owl Capital Corporation III ("OBDE"), with OBDC as the surviving company. This merger now makes OBDC the second largest externally-managed, publicly traded BDC by total assets with over $18 billion of total assets at fair value, on a pro forma combined basis as of December 31, 2024.
At-the-Market Program
The Company will enter into an at-the-market ("ATM") program under which it may issue up to $750 million of its common stock. The ATM program was approved by the Board and will be filed in the coming days.
Dividend Declarations
The Company's Board declared a first quarter 2025 regular dividend of $0.37 per share for stockholders of record as of March 31, 2025, payable on or before April 15, 2025.
The Board also declared a fourth quarter 2024 supplemental dividend of $0.05 per share for stockholders of record as of February 28, 2025, payable on or before March 17, 2025.
SELECT FINANCIAL HIGHLIGHTS
As of and for the three months ended
($ in thousands,
except per share December 31, September 30, December 31,
amounts) 2024 2024 2023
----------------------- ---------------- ----------------
Net investment
income per
share $ 0.47 $ 0.47 $ 0.51
Net realized and
unrealized gains
(and losses) per
share $ (0.08) $ (0.13) $ (0.03)
Net income per
share $ 0.40 $ 0.35 $ 0.48
Base dividend
declared from
net investment
income per
share $ 0.37 $ 0.37 $ 0.35
Supplemental
dividend
declared from
net investment
income per
share $ 0.05 $ 0.05 $ 0.08
Total investments
at fair value $ 13,194,545 $ 13,447,536 $ 12,713,348
Total debt
outstanding $ 7,457,702 $ 7,741,075 $ 7,077,088
Net assets $ 5,952,841 $ 5,961,849 $ 6,021,393
Net asset value
per share $ 15.26 $ 15.28 $ 15.45
Net 1.19x 1.23x 1.09x
debt-to-equity
PORTFOLIO COMPOSITION
As of December 31, 2024, the Company had investments in 227 portfolio companies across 30 industries, with an aggregate portfolio size of $13.2 billion at fair value and an average investment size of $58.1 million at fair value.
December 31, 2024 September 30, 2024
--------------------------- --------------------------
($ in thousands) Fair Value % of Total Fair Value % of Total
--------------- ---------- -------------- ----------
Portfolio
composition:
First-lien senior
secured debt
investments $ 9,974,880 75.6 % $ 10,200,136 75.9 %
Second-lien senior
secured debt
investments 706,800 5.4 % 731,204 5.4 %
Unsecured debt
investments 301,956 2.3 % 307,164 2.3 %
Preferred equity
investments 371,744 2.8 % 389,920 2.9 %
Common equity
investments 1,543,689 11.7 % 1,422,765 10.6 %
Joint ventures 295,476 2.2 % 396,347 2.9 %
--------------- ---------- -------------- ----------
Total investments $ 13,194,545 $ 13,447,536
=============== ========== ============== ==========
December 31, 2024 September 30, 2024
----------------- ------------------
Number of portfolio companies 227 219
Percentage of debt investments at
floating rates 96.4 % 96.3 %
Percentage of senior secured debt
investments 81.0 % 81.3 %
Weighted average spread over base rate
of all floating rate debt investments 6.0 % 6.2 %
Weighted average total yield of
accruing debt and income-producing
securities at fair value 11.1 % 11.5 %
Weighted average total yield of
accruing debt and income-producing
securities at cost 11.2 % 11.6 %
Percentage of investments on
non-accrual of the portfolio at fair
value 0.4 % 0.6 %
PORTFOLIO AND INVESTMENT ACTIVITY
Full Year
For the full year ended December 31, 2024, new investment commitments totaled $7.3 billion across 93 new portfolio companies and 68 existing portfolio companies. This compares to $2.2 billion for the full year ended December 31, 2023 across 32 new portfolio companies and 34 existing portfolio companies.
For the full year ended December 31, 2024, the principal amount of new investments funded was $5.9 billion. For this period, the Company had $5.1 billion aggregate principal amount in sales and repayments. For the full year ended December 31, 2023, the principal amount of new investments funded was $1.7 billion. For this period, the Company had $2.2 billion aggregate principal amount in sales and repayments.
Fourth Quarter
For the three months ended December 31, 2024, new investment commitments totaled $1.7 billion across 27 new portfolio companies and 17 existing portfolio companies. This compares to $1.2 billion for the three months ended September 30, 2024 across 23 new portfolio companies and 14 existing portfolio companies.
For the three months ended December 31, 2024, the principal amount of new investments funded was $1.6 billion. For this period, the Company had $1.6 billion aggregate principal amount in sales and repayments. For the three months ended September 30, 2024, the principal amount of new investments funded was $1.1 billion. For this period, the Company had $1.1 billion aggregate principal amount in sales and repayments.
For the Years Ended December 31,
--------------------------------------------------
($ in thousands) 2024 2023 2022
---------------- ---------------- --------------
New investment
commitments
Gross originations $ 7,384,171 $ 2,165,911 $ 1,997,087
Less: Sell downs (53,334) (10,803) (224,665)
---------------- ---------------- --------------
Total new
investment
commitments $ 7,330,837 $ 2,155,108 $ 1,772,422
---------------- ---------------- --------------
Principal amount of
investments
funded:
First-lien senior
secured debt
investments $ 5,102,264 $ 1,523,503 $ 788,718
Second-lien senior
secured debt
investments 30,000 -- 6,883
Unsecured debt
investments 132,135 -- 90,451
Preferred equity
investments 3,079 36,377 90,110
Common equity
investments 324,269 86,457 131,777
Joint ventures(1) 337,596 34,125 69,125
---------------- ---------------- --------------
Total principal
amount of
investments
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