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Mar 31
Blue Owl Q1 2025 Earnings Report
Blue Owl Capital Corporation reported solid Q1 2025 results, marked by stable net investment income, strong portfolio growth from the OBDE merger, and robust liquidity.
Key Takeaways
Blue Owl Capital Corporation posted Q1 2025 net investment income of $201.3 million and adjusted NII per share of $0.39. The company closed a major merger with OBDE, expanding total assets to over $18 billion. Portfolio yields remained strong amid continued floating rate exposure.
Adjusted net investment income per share was $0.39, down from $0.47 in Q4 2024.
Net asset value (NAV) per share declined slightly to $15.14 from $15.26.
Total investment income reached $464.6 million, driven by the OBDE merger.
Portfolio yield on fair value remained solid at 10.7% with 96.5% of debt at floating rates.
Blue Owl
Blue Owl
Forward Guidance
OBDC remains well-positioned post-merger with strong liquidity, portfolio quality, and a stable dividend outlook despite slight yield compression.
Positive Outlook
- Strong liquidity with $514 million in cash and $2.5 billion in credit capacity.
- Diversified $17.7 billion portfolio across 30 industries and 236 companies.
- NAV supported by over-earning the base dividend despite market pressure.
- High floating rate exposure (96.5%) sustains income amid elevated rates.
- Second-largest public BDC by total assets post-OBDE merger.
Challenges Ahead
- NAV per share declined quarter-over-quarter due to spread changes and write-downs.
- Adjusted NII per share declined from previous quarter.
- Non-accruals increased to 0.8% from 0.4% of the portfolio.
- Yields declined slightly due to lower spreads and market dynamics.
- Merger-related amortization affects comparability and adjusted performance metrics.