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Sixth Street Specialty Lending(TSLX) - 2024 Q4 - Annual Results
TSLXSixth Street Specialty Lending(TSLX)2025-02-13 21:05

Financial Performance - For the year ended December 31, 2024, net investment income per share was 2.39andnetincomepersharewas2.39 and net income per share was 2.03, with Q4 figures at 0.62and0.62 and 0.55 respectively [2]. - The company's adjusted net investment income for the year was 2.33pershareandadjustednetincomewas2.33 per share and adjusted net income was 1.97 per share, with Q4 adjusted figures at 0.61and0.61 and 0.54 respectively [3]. - Net investment income for the year ended December 31, 2024, was 220.0million,upfrom220.0 million, up from 196.4 million in 2023, marking a growth of 12.0% [38]. - Net income for the same period was 186.6million,adecreasefrom186.6 million, a decrease from 222.0 million in 2023, indicating a decline of 16.0% [38]. - Total investment income for the year was 482.5million,upfrom482.5 million, up from 438.1 million in 2023, with Q4 investment income at 123.7millioncomparedto123.7 million compared to 119.5 million in Q4 2023 [16][18]. - Total investment income for the year was 482.5million,comparedto482.5 million, compared to 438.1 million in 2023, reflecting an increase of 10.1% [38]. Asset and Investment Growth - The reported net asset value (NAV) per share increased to 17.16atDecember31,2024,upfrom17.16 at December 31, 2024, up from 17.12 at September 30, 2024, driven by over-earning of the base dividend and realized gains on investments [4]. - Investments at fair value increased to 3,518.4millionasofDecember31,2024,upfrom3,518.4 million as of December 31, 2024, up from 3,283.1 million a year earlier, representing a growth of 7.1% [33]. - Total assets rose to 3,582.2million,comparedto3,582.2 million, compared to 3,343.8 million in the previous year, reflecting an increase of 7.1% [33]. - The annualized return on equity based on net investment income was 14.4%, up from 13.7% in the previous quarter [33]. Debt and Financing - The company had total principal debt outstanding of 1,954.1millionasofDecember31,2024,withadebt−to−equityratioof1.22x[20][21].−Theweightedaverageyieldofdebtandincome−producingsecuritiesatfairvaluewas12.31,954.1 million as of December 31, 2024, with a debt-to-equity ratio of 1.22x [20][21]. - The weighted average yield of debt and income-producing securities at fair value was 12.3% as of December 31, 2024, down from 13.1% at September 30, 2024 [11][14]. - As of December 31, 2024, 97.2% of debt investments based on fair value bore interest at floating rates, with 100% subject to reference rate floors [11]. - The percentage of debt investment commitments at floating rates was 97.2%, slightly down from 99.7% a year earlier [33]. Investment Commitments - New investment commitments for the year totaled 1,242.9 million, a significant increase from 958.6millionin2023,withQ4commitmentsat958.6 million in 2023, with Q4 commitments at 479.0 million compared to 269.3millioninQ32024[7][9].−Totalnewinvestmentcommitmentsfor2024reached269.3 million in Q3 2024 [7][9]. - Total new investment commitments for 2024 reached 1,242.9 million, a 29.6% increase from 958.6millionin2023[40].−Grossoriginationsfor2024were958.6 million in 2023 [40]. - Gross originations for 2024 were 15,354.7 million, significantly higher than 6,516.6millionin2023[40].−Theprincipalamountofinvestmentsfundedin2024was6,516.6 million in 2023 [40]. - The principal amount of investments funded in 2024 was 838.9 million, compared to 808.4millionin2023,reflectinga3.1808.4 million in 2023, reflecting a 3.1% increase [40]. - The number of new investment commitments in new portfolio companies increased to 34 in 2024 from 30 in 2023 [40]. - The weighted average interest rate of new investment commitments decreased to 10.9% in 2024 from 12.9% in 2023 [40]. - The percentage of new debt investment commitments at floating rates was 87.6% in 2024, down from 99.5% in 2023 [40]. - The average new investment commitment amount in new portfolio companies rose to 30.4 million in 2024 from 29.2millionin2023[40].−Theweightedaveragetermfornewinvestmentcommitmentsinnewportfoliocompanieswas6.2yearsin2024,slightlyupfrom6.0yearsin2023[40].−Theprincipalamountofinvestmentssoldorrepaidin2024totaled29.2 million in 2023 [40]. - The weighted average term for new investment commitments in new portfolio companies was 6.2 years in 2024, slightly up from 6.0 years in 2023 [40]. - The principal amount of investments sold or repaid in 2024 totaled 793.7 million, a significant increase from 469.1millionin2023[40].DividendsandNon−AccrualInvestments−Thecompanydeclaredafirstquarter2025basedividendof469.1 million in 2023 [40]. Dividends and Non-Accrual Investments - The company declared a first quarter 2025 base dividend of 0.46 per share and a fourth quarter supplemental dividend of 0.07pershare[4].−Non−accrualinvestmentsrepresented1.40.07 per share [4]. - Non-accrual investments represented 1.4% of the portfolio at fair value as of December 31, 2024, with no new investments added to non-accrual status during the quarter [12]. Management - The company is externally managed by Sixth Street Specialty Lending Advisers, LLC, leveraging over 100 billion in assets under management [41].