Blue Owl Capital Corporation Reports Q1 2025 Financial Performance with Increased Assets and Investment Income

Blue Owl Capital Corporation (OBDC) reported its financial performance for the first quarter of 2025 in its recent 10-Q filing. Total assets increased to $18.375 billion as of March 31, 2025, from $13.865 billion at the end of 2024. This increase reflects a rise in investments at fair value, from $13.195 billion to $17.692 billion, and an increase in cash, from $505.7 million to $511.5 million. Total liabilities also increased, rising from $7.913 billion to $10.636 billion, primarily due to an increase in debt.

The company's net investment income after taxes for the first quarter of 2025 was $201.3 million, compared to $182.8 million for the same period in 2024. This increase was driven by a rise in total investment income, which reached $464.6 million in Q1 2025, up from $399.6 million in Q1 2024. The increase in investment income was primarily due to higher interest income resulting from the acquisition of Blue Owl Capital Corporation III (OBDE) on January 13, 2025, partially offset by a decrease in the yield on the debt investment portfolio. Operating expenses also increased, rising from $211.6 million to $259.6 million, primarily due to higher interest expense, management fees, and incentive fees.

A significant development during the quarter was the completion of the merger with OBDE. The merger resulted in the issuance of approximately 120.6 million shares of OBDC common stock and the acquisition of $4.15 billion in investments from OBDE. The purchase discount resulting from the merger was immediately recognized as unrealized appreciation on the income statement. The filing also notes that the company had $1.868 billion in unfunded commitments as of March 31, 2025, and that management believed it had adequate financial resources to meet these obligations.

Key operational developments included a portfolio turnover rate of 6.0% for the quarter, compared to 8.0% in the same period of 2024. As of March 31, 2025, OBDC held investments in 236 portfolio companies, with a total fair value of $17.69 billion. The company's weighted average total yield on its portfolio was 10.2% at fair value and 10.3% at amortized cost. The filing also details the company's various debt obligations, including revolving credit facilities, SPV asset facilities, and CLO transactions, along with their respective terms and conditions.

The company's outlook statement includes a cautionary note regarding forward-looking statements, highlighting risks associated with economic downturns, interest rate volatility, and geopolitical uncertainty. The filing also mentions the company's intention to continue qualifying as a regulated investment company (RIC) for tax purposes and its ongoing evaluation of new accounting pronouncements. As of March 31, 2025, the company had a net asset value per share of $15.14.