Jun 30, 2024

Blue Owl Q2 2024 Earnings Report

Blue Owl's Q2 2024 performance was marked by strong earnings, a high return on equity, and strategic portfolio growth.

Key Takeaways

Blue Owl Capital Corporation reported a strong second quarter with net investment income per share of $0.48, exceeding the regular dividend by approximately 30%. The company's NAV per share increased to $15.36. Additionally, OBDC announced a merger agreement with Blue Owl Capital Corporation III (OBDE).

Net investment income per share was $0.48, surpassing the regular dividend by about 30%.

A second quarter supplemental dividend of $0.06 per share was declared.

Total dividends for the second quarter amounted to $0.43 per share, representing an 11.2% annualized dividend yield.

Net asset value per share reached $15.36, a $0.10 increase compared to June 30, 2023.

Total Revenue
$397M
Previous year: $394M
+0.7%
EPS
$0.48
Previous year: $0.48
+0.0%
NAV per Share
$15.4
Previous year: $15.3
+0.7%
Cash and Equivalents
$380M
Previous year: $368M
+3.3%
Free Cash Flow
$198M
Total Assets
$13.9B
Previous year: $13.4B
+3.5%

Blue Owl

Blue Owl

Forward Guidance

Blue Owl Capital Corporation (OBDC) and Blue Owl Capital Corporation III (OBDE) have entered into a definitive merger agreement, with OBDC as the surviving company, subject to shareholder approvals and customary closing conditions. The boards of directors of both OBDC and OBDE have unanimously approved the transaction.

Positive Outlook

  • The merger is expected to grow the portfolio in a logical and low-risk way.
  • The increased scale of the combined company will be beneficial to shareholders.
  • The merger is subject to certain shareholder approvals.
  • The merger is subject to other customary closing conditions.
  • The boards of directors of both OBDC and OBDE have unanimously approved the transaction.

Challenges Ahead

  • The timing or likelihood of the Mergers closing is uncertain.
  • The expected synergies and savings associated with the Mergers are uncertain.
  • The ability to realize the anticipated benefits of the Mergers is uncertain.
  • The percentage of OBDC and OBDE shareholders voting in favor of the proposals is uncertain.
  • The possibility of competing offers or acquisition proposals exists.