Blackstone Secured Lending (BXSL) expects to cut its dividend following financial declines in the second quarter. The business development company reported a drop in net investment income.
Dividend coverage fell below 100% for the first time in 28 consecutive quarters. This shortfall indicates the firm did not earn enough to cover its shareholder payout.
Management signaled the cut to align payouts with lower earnings and decreasing base rates. The firm faced credit deterioration through an increase in non-accrual loans.
BXSL recorded both realized and unrealized investment losses during the quarter. These results suggest potential headwinds for the broader private credit sector.