OBDC · Blue Owl Capital Corporation

Blue Owl Capital Corporation reported first quarter 2026 results reflecting a challenging earnings environment driven by lower base rates and tighter spreads, as noted by CEO Craig W. Packer. GAAP net investment income per share declined to $0.32 from $0.38 in the prior quarter and $0.41 year-ago, with adjusted NII at $0.31 versus $0.36 prior quarter. Investment income fell to $397 million from $448 million, primarily due to lower base rates on floating-rate assets and a $1 billion net portfolio reduction from repayments outpacing originations ($676 million commitments vs. $1.5 billion sales/repayments). Expenses decreased to $235 million from $253 million, aided by lower interest expense on reduced borrowings (daily average $9.3 billion vs. $9.8 billion) and a drop in average interest rate to 5.2% from 5.6%. NAV per share declined to $14.41 from $14.81, attributed to credit spread widening, though partially offset by $35 million in accretive stock repurchases under a new $300 million program replacing a $200 million prior authorization. Portfolio quality held steady with non-accruals at 1.0% fair value (from 1.1%), 230 companies, and 96.1% floating-rate debt. Liquidity remains robust at approximately $4 billion including $455 million cash/restricted cash and $3.6 billion undrawn credit capacity, supporting deployment amid wider spreads. The Board adjusted the Q2 base dividend to $0.31 per share from $0.37 to align with earnings power amid declining rates, while maintaining the supplemental framework. Moody's Baa2 upgrade underscores strong credit performance and liability management.