MarketBeat
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Key Points
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Adjusted net investment income was $0.33 per share, above the $0.31 base dividend. Net asset value rose to $14.32 per share, and the board declared a $0.31 fourth-quarter base dividend plus a $0.01 supplemental dividend.
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Management expects earnings to improve, citing wider spreads on new investments and higher base rates; 95% of debt investments have floating rates. New floating-rate investments carried a weighted average spread of 5.2%, up from 4.8% in the fourth quarter of 2025.
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Credit metrics remained broadly stable: non-accruals were 0.8% of portfolio fair value, with no new issuers added during the quarter. Blue Owl repurchased $35 million of stock, adding $0.02 per share to NAV, and ended the quarter with net leverage of 1.13 times.
Blue Owl Capital (NYSE:OBDC) reported third-quarter 2026 adjusted net investment income of $0.33 per share, exceeding its $0.31 base dividend, as improved portfolio valuations and share repurchases lifted net asset value.
Net asset value per share rose to $14.32 as of September 30 from $14.26 at the end of the prior quarter. Chief Executive Officer Craig Packer said tighter spreads and higher portfolio marks contributed to the increase, while no new borrowers were added to non-accrual status during the quarter.
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The board declared a fourth-quarter base dividend of $0.31 per share, payable January 15 to shareholders of record on December 31. It also declared a $0.01 supplemental dividend, payable December 15 to shareholders of record on November 30.
Earnings outlook and investment activity
Packer said wider spreads on new investments and higher base rates should support earnings in coming quarters. Responding to an analyst’s question about whether earnings were at or near a trough, he said the characterization was a good one and that the company expected results to improve.
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Chief Financial Officer Jonathan Lamm said 95% of Blue Owl’s debt investments carry floating rates. A 100-basis-point increase in base rates would raise quarterly earnings by approximately $0.02 per share, all else being equal, he said. The benefit from the Federal Reserve’s September rate increase is expected to begin flowing through in the fourth quarter as loans reset.
Third-quarter earnings benefited primarily from elevated dividend income, Lamm said. President Logan Nicholson said most dividend income was recurring, but a transaction involving Loparex contributed a temporary increase of approximately $0.01 to $0.02 per share during the quarter.
