TSLX: 10% Yielding BDC Suitable For Watch List
Despite solid 2024 NII growth, Sixth Street Specialty Lending, Inc.'s realized and unrealized gains fell, but dividends and NII coverage remain strong. TSLX's portfolio is 94% secured loans, with 98.8% at floating rates, and has diversified industry exposure and internal ratings. TSLX trades at a premium to NAV; advised to add to your watch list and watch for market pullbacks for better entry points.
Sixth Street Specialty Lending: Underwhelming Performance And Rising Non-Accruals (Rating Downgrade)
I am downgrading Sixth Street Specialty Lending stock to a hold due to its continued underperformance against peers and unjustified premium valuation. Despite a high 10.3% dividend yield and consistent dividend history, TSLX's total return is lackluster, only achieving a 1% YTD return. The non-accrual rate has increased to 1.9%, indicating rising vulnerability in the current high-interest rate environment.
Sixth Street Specialty Lending, Inc. (TSLX) Q3 2024 Earnings Call Transcript
Sixth Street Specialty Lending, Inc. (NYSE:TSLX ) Q3 2024 Earnings Conference Call November 6, 2024 8:30 AM ET Company Participants Cami VanHorn - Head of IR Joshua Easterly - CEO & Chairman Robert Stanley - President Ian Simmonds - CFO Conference Call Participants Brian Mckenna - Citizens' JMP Mark Hughes - Truist Securities Robert Dodd - Raymond James & Associates Bryce Rowe - B. Riley Operator Good morning and welcome to Sixth Street Specialty Lending, Inc.'s Third Quarter Ended September 30th, 2024 Earnings Conference Call.
Here's What Key Metrics Tell Us About Sixth St (TSLX) Q3 Earnings
While the top- and bottom-line numbers for Sixth St (TSLX) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Sixth Street (TSLX) Q3 Earnings and Revenues Miss Estimates
Sixth Street (TSLX) came out with quarterly earnings of $0.57 per share, missing the Zacks Consensus Estimate of $0.58 per share. This compares to earnings of $0.60 per share a year ago.
Sixth Street Specialty Lending: How's Dividend After Interest Rate Cut
Sixth Street Specialty Lending is a defensive BDC with strong base dividend coverage, even amid potential interest rate cuts. TSLX's portfolio is well-diversified, focusing on first-lien debt, with low non-accruals and reasonable industry exposure. Despite interest rate cuts, TSLX's dividend coverage remains robust, with room for special dividends.
Sixth Street Specialty Lending, Inc. (TSLX) Q2 2024 Earnings Call Transcript
Sixth Street Specialty Lending, Inc. (NYSE:TSLX ) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET Company Participants Cami VanHorn - Head of Investor Relations Joshua Easterly - Chief Executive Officer & Chairman Robert Stanley - President Ian Simmonds - Chief Financial Officer Conference Call Participants Finian O'Shea - Wells Fargo Securities Brian Mckenna - Citizens' JMP Mark Hughes - Truist Securities Mickey Schleien - Ladenburg Kenneth Lee - RBC Paul Johnson - KBW Melissa Wedel - JPMorgan Bryce Rowe - B. Riley Robert Dodd - Raymond James & Associates Operator Good morning, and welcome to Sixth Street Specialty Lending, Inc.'s Second Quarter ended June 30, 2024, Earnings Conference Call.
Sixth St (TSLX) Reports Q2 Earnings: What Key Metrics Have to Say
The headline numbers for Sixth St (TSLX) give insight into how the company performed in the quarter ended June 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Sixth Street (TSLX) Surpasses Q2 Earnings and Revenue Estimates
Sixth Street (TSLX) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.58 per share a year ago.
Sixth Street Specialty Lending: An 8.7% Dividend Worth Considering
Given the prospect of falling interest rates, investors may turn to high yield investments like BDCs, with dividend yields in the 8-10% range. Sixth Street Specialty Lending Inc. is analyzed in 6 key areas for investment potential in the BDC sector. There is fee structure alignment with shareholders, almost all investments are first lien, and TSLX has proven to preserve net asset value over time.
Sixth Street Specialty Lending: Consistent Performance Justifies Premium
TSLX is a BDC focusing on lending to middle market US companies. The portfolio is well-constructed, diverse, and focused on risk mitigation through first lien debt investments and a majority of investments on a floating rate basis. TSLX's high distribution rate of 8.8% is well-supported by net investment income, with a history of solid dividend growth and coverage, making it an attractive option for income-focused investors.
Sixth Street Lending: You Can Get A 9% Yield, But The Stock Is No Bargain
Sixth Street Lending Inc. is a well-managed BDC with a First Lien-centric, floating-rate investment portfolio and a 9% dividend yield. The central bank's guidance for a higher-for-longer rate environment may aid short-term growth, but long-term net investment income growth is uncertain. TSLX's 24% premium to NAV may not offer compelling risk/reward, especially in an environment of falling interest rates.
