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Jun 30, 2024
Oaktree Q3 2024 Earnings Report
Reported financial results for the fiscal quarter ended June 30, 2024.
Key Takeaways
Oaktree Specialty Lending Corporation announced its financial results for the third fiscal quarter ended June 30, 2024, with total investment income of $95.0 million and GAAP net investment income of $44.6 million. The company originated $338.7 million of new investment commitments and declared a quarterly distribution of $0.55 per share.
Total investment income was $95.0 million ($1.16 per share) for the third fiscal quarter of 2024.
GAAP net investment income was $44.6 million ($0.54 per share) for the third fiscal quarter of 2024.
Originated $338.7 million of new investment commitments and received $185.5 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended June 30, 2024.
A quarterly cash distribution was declared of $0.55 per share.
Oaktree
Oaktree
Forward Guidance
The company remains focused on shifting investment composition to first lien loans and on improving portfolio quality and performance. Management fee reduction went into effect on July 1, 2024, and an incentive fee waiver was announced as part of the third quarter results.
Positive Outlook
- Focus on shifting investment composition to first lien loans.
- Commitment to improving portfolio quality and performance.
- Permanent management fee reduction went into effect on July 1, 2024.
- Incentive fee waiver announced as part of third quarter results.
- Confidence in the strategy and the ability of the portfolio to deliver sustainable and attractive returns.
Challenges Ahead
- Experienced challenges at certain portfolio investments.
- Decline in NAV due to challenges at certain portfolio investments.
- Increase in non-accruals due to challenges at certain portfolio investments.
- Unrealized losses on certain debt and equity investments.
- Investments in SLF JV I and Glick JV decreased due to leverage and unrealized depreciation.