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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