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
Rhea-AI Summary
Blue Owl Capital (OBDC) reported its Q4 and full-year 2024 results, achieving a Q4 net investment income of $0.47 per share and NAV of $15.26. The company declared total Q4 dividends of $0.42 per share, representing an 11.0% annualized dividend yield. New investment commitments for Q4 totaled $1.7 billion, with $1.6 billion in sales and repayments.
OBDC completed its merger with OBDE on January 13, 2025, becoming the second-largest externally-managed, publicly traded BDC with over $18 billion in total assets. The company plans to implement a $750 million ATM program. As of December 31, 2024, OBDC had investments in 227 portfolio companies across 30 industries, with a total portfolio value of $13.2 billion.
For the full year 2024, investment income increased to $1.60 billion from $1.58 billion in 2023, while total expenses rose to $844.1 million from $815.7 million. The company maintained strong liquidity with $505.7 million in cash and restricted cash, and $7.6 billion in total principal value of debt outstanding.
Positive
- Q4 NII of $0.47 per share exceeded regular dividend by 27%
- Strong 12.4% annualized return on equity
- Decreased non-accrual investments to 0.4% of portfolio at fair value
- Completed merger with OBDE, becoming second-largest externally-managed BDC
- Investment income increased to $1.60 billion in 2024 from $1.58 billion in 2023
Negative
- NAV per share slightly decreased to $15.26 from $15.28 in Q3 2024
- Q4 investment income decreased to $394.4M from $411.2M year-over-year
- Total expenses increased to $844.1M in 2024 from $815.7M in 2023
News Market Reaction – OBDC
In the trading session that priced this news, OBDC declined 0.70%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FOURTH QUARTER 2024 HIGHLIGHTS
- Fourth quarter net investment income ("NII") per share of
$0.47 27% - Based on OBDC's supplemental dividend framework, the Board of Directors (the "Board") declared a fourth quarter supplemental dividend of
$0.05 - Total dividends for the fourth quarter were
$0.42 11.0% based on fourth quarter net asset value ("NAV") per share - NAV per share of
$15.26 $15.28 - New investment commitments for the fourth quarter totaled
$1.7 billion $1.6 billion $1.2 billion $1.1 billion 11.1% at fair value - Investments on non-accrual decreased to
0.4% of the portfolio at fair value, as compared with0.6% as of September 30, 2024
"Our fourth quarter results concluded another strong year for OBDC, delivering a
Merger Close
Subsequent to quarter-end, on January 13, 2025, OBDC closed the previously announced merger with Blue Owl Capital Corporation III ("OBDE"), with OBDC as the surviving company. This merger now makes OBDC the second largest externally-managed, publicly traded BDC by total assets with over
At-the-Market Program
The Company will enter into an at-the-market ("ATM") program under which it may issue up to
Dividend Declarations
The Company's Board declared a first quarter 2025 regular dividend of
The Board also declared a fourth quarter 2024 supplemental dividend of
SELECT FINANCIAL HIGHLIGHTS
As of and for the three months ended | |||
($ in thousands, except per share amounts) | December 31, | September 30, | December 31, |
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 debt-to-equity | 1.19x | 1.23x | 1.09x |
PORTFOLIO COMPOSITION
As of December 31, 2024, the Company had investments in 227 portfolio companies across 30 industries, with an aggregate portfolio size of
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
For the full year ended December 31, 2024, the principal amount of new investments funded was
Fourth Quarter
For the three months ended December 31, 2024, new investment commitments totaled
For the three months ended December 31, 2024, the principal amount of new investments funded was
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 funded | $ 5,929,343 | $ 1,680,462 | $ 1,177,064 | |||
Principal amount of investments sold or repaid: | ||||||
First-lien senior secured debt investments | $ (3,577,170) | $ (2,069,540) | $ (1,116,583) | |||
Second-lien senior secured debt investments | (1,026,330) | (97,713) | (29,800) | |||
Unsecured debt investments | (152,427) | (193) | (31,427) | |||
Preferred equity investments | (61,575) | (6,952) | (22,843) | |||
Common equity investments | (73,268) | (195) | (7,350) | |||
Joint ventures(1) | (191,151) | — | — | |||
Total principal amount of investments sold or repaid | $ (5,081,921) | $ (2,174,593) | $ (1,208,003) | |||
Number of new investment commitments in new portfolio companies(2) | 93 | 32 | 52 | |||
Average new investment commitment amount in new portfolio companies | $ 56,012 | $ 53,397 | $ 22,757 | |||
Weighted average term for new debt investment commitments (in years) | 5.4 | 5.6 | 5.6 | |||
Percentage of new debt investment commitments at floating rates | 98.1 % | 96.2 % | 95.1 % | |||
Percentage of new debt investment commitments at fixed rates | 1.9 % | 3.8 % | 4.9 % | |||
Weighted average interest rate of new debt investment commitments(3) | 9.7 % | 11.7 % | 10.4 % | |||
Weighted average spread over applicable base rate of new floating rate debt investment commitments | 5.3 % | 6.3 % | 6.9 % | |||
________________ | |
(1) | This was disclosed as "Investment funds and vehicles" as of December 31, 2022. |
(2) | Number of new investment commitments represents commitments to a particular portfolio company. |
(3) | For the years ended December 31, 2024, 2023 and 2022, assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was |
For the Three Months Ended | ||
($ in thousands) | December 31, 2024 | September 30, 2024 |
New investment commitments | ||
Gross originations | $ 1,695,507 | $ 1,151,668 |
Less: Sell downs | (15,834) | — |
Total new investment commitments | $ 1,679,673 | $ 1,151,668 |
Principal amount of investments funded: | ||
First-lien senior secured debt investments | $ 1,114,927 | $ 1,044,951 |
Second-lien senior secured debt investments | 20,000 | — |
Unsecured debt investments | — | — |
Preferred equity investments | 366 | 1,097 |
Common equity investments | 215,476 | 13,318 |
Joint ventures | 271,970 | 21,437 |
Total principal amount of investments funded | $ 1,622,739 | $ 1,080,803 |
Principal amount of investments sold or repaid: | ||
First-lien senior secured debt investments | $ (1,265,281) | $ (1,027,432) |
Second-lien senior secured debt investments | (34,500) | (65,812) |
Unsecured debt investments | (5,450) | — |
Preferred equity investments | (9,521) | (21,360) |
Common equity investments | (73,253) | (15) |
Joint ventures | (191,151) | — |
Total principal amount of investments sold or repaid | $ (1,579,156) | $ (1,114,619) |
Number of new investment commitments in new portfolio companies(1) | 27 | 23 |
Average new investment commitment amount in new portfolio companies | $ 44,561 | $ 42,251 |
Weighted average term for new debt investment commitments (in years) | 5.3 | 4.4 |
Percentage of new debt investment commitments at floating rates | 99.4 % | 98.8 % |
Percentage of new debt investment commitments at fixed rates | 0.6 % | 1.2 % |
Weighted average interest rate of new debt investment commitments(2) | 9.5 % | 9.7 % |
Weighted average spread over applicable base rate of new floating rate debt investment commitments | 5.2 % | 5.1 % |
________________ | |
(1) | Number of new investment commitments represents commitments to a particular portfolio company. |
(2) | For the three months ended December 31, 2024 and September 30, 2024 assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was |
RESULTS OF OPERATIONS FOR THE FULL YEAR AND QUARTER ENDED DECEMBER 31, 2024
Investment Income
Investment income increased to
Investment income decreased to
Expenses
Total expenses increased to
Total expenses increased to
Liquidity and Capital Resources
As of December 31, 2024, the Company had
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference call will be broadcast live on February 20, 2025 at 10:00 a.m. Eastern Time on the Events section of OBDC's website at www.blueowlcapitalcorporation.com. Please visit the website to test your connection before the webcast.
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: (877) 737-7048
- International: +1 (201) 689-8523
All callers will need to reference "Blue Owl Capital Corporation" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.
Replay Information:
An archived replay will be available for 14 days via a webcast link located on the Events section of OBDC's website, and via the dial-in numbers listed below:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Conference ID: 13750520
ABOUT BLUE OWL CAPITAL CORPORATION
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to
Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond OBDC's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in OBDC's filings with the SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which OBDC makes them. OBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
INVESTOR CONTACTS
Investor Contact:
BDC Investor Relations
Michael Mosticchio
credit-ir@blueowl.com
Media Contact:
Prosek Partners
Josh
pro-blueowl@prosek.com
FINANCIAL HIGHLIGHTS | |||
For the Three Months Ended | |||
($ in thousands, except per share amounts) | December 31, | September 30, | December 31, |
Investments at Fair Value | $ 13,194,545 | $ 13,447,536 | $ 12,713,348 |
Total Assets | $ 13,865,564 | $ 14,090,780 | $ 13,511,396 |
Net Asset Value Per Share | $ 15.26 | $ 15.28 | $ 15.45 |
Investment Income | $ 394,392 | $ 406,029 | $ 411,227 |
Net Investment Income | $ 184,246 | $ 184,912 | $ 199,023 |
Net Income | $ 154,885 | $ 135,358 | $ 188,970 |
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 |
Distributions Declared from Net Investment Income Per Share | $ 0.37 | $ 0.37 | $ 0.35 |
Supplemental Distributions Declared from Net Investment Income Per Share | $ 0.05 | $ 0.05 | $ 0.08 |
Weighted Average Yield of Accruing Debt and Income Producing Securities at Fair Value | 11.1 % | 11.5 % | 12.4 % |
Weighted Average Yield of Accruing Debt and Income Producing Securities at Amortized Cost | 11.2 % | 11.6 % | 12.5 % |
Percentage of Debt Investments at Floating Rates | 96.4 % | 96.3 % | 97.4 % |
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Amounts in thousands, except share and per share amounts) | ||||
December 31, 2024 | December 31, 2023 | |||
Assets | ||||
Investments at fair value | ||||
Non-controlled, non-affiliated investments (amortized cost of | $ 11,451,457 | $ 11,264,956 | ||
Non-controlled, affiliated investments (amortized cost of | 235,060 | 19,988 | ||
Controlled, affiliated investments (amortized cost of | 1,508,028 | 1,428,404 | ||
Total investments at fair value (amortized cost of | 13,194,545 | 12,713,348 | ||
Cash (restricted cash of | 505,692 | 658,702 | ||
Foreign cash (cost of | 8,464 | 956 | ||
Interest receivable | 105,881 | 112,260 | ||
Receivable from a controlled affiliate | 16,970 | 22,978 | ||
Prepaid expenses and other assets | 34,012 | 3,152 | ||
Total Assets | $ 13,865,564 | $ 13,511,396 | ||
Liabilities | ||||
Debt (net of unamortized debt issuance costs of | $ 7,457,702 | $ 7,077,088 | ||
Distribution payable | 144,381 | 136,407 | ||
Management fee payable | 49,058 | 47,711 | ||
Incentive fee payable | 39,082 | 42,217 | ||
Payables to affiliates | 6,083 | 3,835 | ||
Accrued expenses and other liabilities | 216,417 | 182,745 | ||
Total Liabilities | 7,912,723 | 7,490,003 | ||
Commitments and contingencies (Note 7) | ||||
Net Assets | ||||
Common shares issued and outstanding, respectively | 3,902 | 3,897 | ||
Additional paid-in-capital | 5,919,539 | 5,924,002 | ||
Accumulated undistributed (overdistributed) earnings | 29,400 | 93,494 | ||
Total Net Assets | 5,952,841 | 6,021,393 | ||
Total Liabilities and Net Assets | $ 13,865,564 | $ 13,511,396 | ||
Net Asset Value Per Share | $ 15.26 | $ 15.45 | ||
CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) | |||||
For the Years Ended December 31, | |||||
2024 | 2023 | 2022 | |||
Investment Income | |||||
Investment income from non-controlled, non-affiliated investments: | |||||
Interest income | $ 1,168,652 | $ 1,209,536 | $ 931,870 | ||
Payment-in-kind ("PIK") interest income | 172,852 | 169,763 | 113,256 | ||
Dividend income | 78,482 | 72,936 | 52,422 | ||
Other income | 22,451 | 14,755 | 18,514 | ||
Total investment income from non-controlled, non-affiliated investments | 1,442,437 | 1,466,990 | 1,116,062 | ||
Investment income from non-controlled, affiliated investments: | |||||
Interest income | 1,038 | — | — | ||
Payment-in-kind ("PIK") interest income | 1,128 | — | — | ||
Dividend income | 932 | 252 | — | ||
Other income | 40 | — | — | ||
Total investment income from non-controlled, affiliated investments: | 3,138 | 252 | — | ||
Investment income from controlled, affiliated investments: | |||||
Interest income | 30,308 | 20,174 | 8,206 | ||
Payment-in-kind ("PIK") interest income | 1,666 | 1,934 | — | ||
Dividend income | 118,538 | 91,802 | 77,047 | ||
Other Income | 671 | 942 | 689 | ||
Total investment income from controlled, affiliated investments | 151,183 | 114,852 | 85,942 | ||
Total Investment Income | 1,596,758 | 1,582,094 | 1,202,004 | ||
Expenses | |||||
Interest expense | 464,915 | 436,306 | 307,539 | ||
Management fees | 193,570 | 191,622 | 188,755 | ||
Performance based incentive fees | 157,193 | 159,857 | 118,091 | ||
Professional fees | 13,602 | 15,532 | 14,709 | ||
Directors' fees | 1,280 | 1,280 | 1,092 | ||
Other general and administrative | 13,495 | 11,127 | 9,290 | ||
Total Operating Expenses | 844,055 | 815,724 | 639,476 | ||
Net Investment Income (Loss) Before Taxes | 752,703 | 766,370 | 562,528 | ||
Income tax expense (benefit) | 11,646 | 12,759 | 5,810 | ||
Net Investment Income (Loss) After Taxes | $ 741,057 | $ 753,611 | $ 556,718 | ||
Net Realized and Change in Unrealized Gain (Loss) | |||||
Net change in unrealized gain (loss): | |||||
Non-controlled, non-affiliated investments | $ (45,932) | $ 90,497 | $ (133,980) | ||
Non-controlled, affiliated investments | 951 | 1,033 | (49) | ||
Controlled, affiliated investments | (3,438) | 213 | 45,602 | ||
Translation of assets and liabilities in foreign currencies | (1,041) | 5,808 | (2,118) | ||
Income tax (provision) benefit | (709) | (4,605) | (3,964) | ||
Total Net Change in Unrealized Gain (Loss) | (50,169) | 92,946 | (94,509) | ||
Net realized gain (loss): | |||||
Non-controlled, non-affiliated investments | $ (62,453) | $ (52,003) | $ 5,171 | ||
Non-controlled, affiliated investments | 1,827 | — | — | ||
Controlled affiliated investments | (25,771) | — | — | ||
Foreign currency transactions | (9,511) | (1,242) | (1,025) | ||
Total Net Realized Gain (Loss) | (95,908) | (53,245) | 4,146 | ||
Total Net Realized and Change in Unrealized Gain (Loss) | (146,077) | 39,701 | (90,363) | ||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ 594,980 | $ 793,312 | $ 466,355 | ||
Earnings Per Share - Basic and Diluted | $ 1.53 | $ 2.03 | $ 1.18 | ||
Weighted Average Shares Outstanding - Basic and Diluted | 390,068,596 | 390,104,585 | 394,006,852 | ||
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