Profile
Sector:
Financial ServicesIndustry:
Asset ManagementCountry:
United StatesIPO:
21 March 2014Next earnings report:
14 February 2025Last dividends:
16 September 2024Next dividends:
16 December 2024Price
after hours | Thu, 21 Nov 2024 00:22:26 GMTAnalysts recommendations
Institutional Ownership
TSLX Latest News
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.
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.
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) 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 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.
NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX) (“TSLX” or “the Company") announced today that it will release its financial results for the third quarter ended September 30, 2024 on Tuesday, November 5, 2024, after the market closes. TSLX invites all interested persons to its webcast / conference call on Wednesday, November 6, 2024 at 8:30 a.m. Eastern Time to discuss its third quarter ended September 30, 2024 financial results. Conference Call Information: The con.
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.
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 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.
Sixth Street Specialty Lending offers a solid 8.7% yield and has consistently outperformed its peers through strategic first lien loans and robust portfolio management. Imperial Brands has undergone significant transformation and achieved solid progress in next-generation products, offering an appealing dividend yield of 7.3%. Both TSLX and IMBBY provide investors with reliable cash flow and potential for long-term value creation, making them appealing additions to a dividend-focused portfolio.
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What type of business is Sixth Street Specialty Lending?
Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, and refinancing. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. It seeks to finance and lending to middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1 billion or more and EBITDA between $10 million and $250 million. The transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits.
What sector is Sixth Street Specialty Lending in?
Sixth Street Specialty Lending is in the Financial Services sector
What industry is Sixth Street Specialty Lending in?
Sixth Street Specialty Lending is in the Asset Management industry
What country is Sixth Street Specialty Lending from?
Sixth Street Specialty Lending is headquartered in United States
When did Sixth Street Specialty Lending go public?
Sixth Street Specialty Lending initial public offering (IPO) was on 21 March 2014
What is Sixth Street Specialty Lending website?
https://www.sixthstreetspecialtylending.com
Is Sixth Street Specialty Lending in the S&P 500?
No, Sixth Street Specialty Lending is not included in the S&P 500 index
Is Sixth Street Specialty Lending in the NASDAQ 100?
No, Sixth Street Specialty Lending is not included in the NASDAQ 100 index
Is Sixth Street Specialty Lending in the Dow Jones?
No, Sixth Street Specialty Lending is not included in the Dow Jones index
When was Sixth Street Specialty Lending the previous earnings report?
No data
When does Sixth Street Specialty Lending earnings report?
The next expected earnings date for Sixth Street Specialty Lending is 14 February 2025