Blue Owl Capital Q1 Earnings Call Highlights

Blue Owl Capital (NYSE:OBDC) reported first-quarter 2026 adjusted nett concern income of $0.31 per stock and nett plus worth per stock of $14.41, arsenic absorption said little basal rates, tighter spreads and reduced interest income weighed connected earnings.

Chief Executive Officer Craig Packer said the 4th was “more challenging” from an net perspective, with headwinds that had been gathering implicit the past twelvemonth becoming afloat reflected successful results. He cited little rates, tighter marketplace spreads, slower woody enactment and little leverage arsenic cardinal factors.

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At the aforesaid time, Packer emphasized that the company’s underlying recognition show remained strong. He said determination were nary caller non-accruals during the quarter, borrower show was unchangeable and recognition prime remained accordant with caller periods.

Dividend Reset to $0.31 Per Share

Blue Owl’s committee declared a second-quarter basal dividend of $0.31 per share, down from the anterior level. Packer said the institution believes the caller dividend level is due fixed the portfolio’s guardant net power, peculiarly arsenic spreads widen and the complaint situation appears much stable.

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The dividend volition beryllium paid July 15, 2026, to shareholders of grounds arsenic of June 30, 2026. Chief Financial Officer Jonathan Lamm said spillover income stood astatine astir $0.28 per share, which helium described arsenic a “meaningful cushion” supporting the basal dividend.

Packer noted that the institution is maintaining its supplemental dividend framework, nether which it pays retired 50% of nett concern income supra the basal dividend. In effect to an expert question, Packer said helium hopes and expects the caller dividend level to enactment arsenic a floor, but cautioned that quarterly results tin vary.

NAV Declines connected Spread Widening

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Net plus worth per stock declined to $14.41 from $14.81 successful the anterior quarter. Management attributed the diminution chiefly to mark-to-market adjustments tied to broader recognition dispersed widening alternatively than deterioration successful underlying plus quality.

Packer said astir 75% of the write-down was attributable to dispersed widening crossed the indebtedness portfolio. Lamm added that realized losses successful the 4th were tied to investments already connected non-accrual that had been written down implicit respective years and did not lend to the NAV decline.

During the question-and-answer session, Lamm said the institution uses an outer valuation cause each 4th for each portfolio institution and takes the resulting constituent valuations. Packer added that, arsenic a lender, the institution expects astir performing loans to beryllium repaid astatine par, and said the mean indebtedness successful the portfolio was marked astatine 95.4.