Blue Owl Capital Corporation (NYSE:OBDC) Q1 2024 Results Conference Call May 9, 2024 10:00 AM ET

Company Participants

Craig Packer - CEO
Jonathan Lamm - CFO

Conference Call Participants

Brian McKenna - Citizens JMP
Mark Hughes - Truist Securities
Robert Dodd - Raymond James

Operator

Good morning, everyone. And welcome to Blue Owl Capital Corporation's First Quarter 2024 Earnings Call.

I'd like to remind listeners that remarks made during today's call may contain forward-looking statements, which are not a guarantee of future performance or results and involve a number of risks and uncertainties that are outside the company's control. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described in OBDC's filings with the SEC. The company assumes no obligation to update any forward-looking statements. Certain information discussed on this call and in the company's earnings materials, including information related to portfolio companies, was derived from third party sources and has not been independently verified. The company makes no such representations or warranties with respect to this information. Yesterday, Blue Owl Capital Corporation issued its earnings release and posted an earnings presentation for the first quarter ended March 31, 2024. These should be reviewed in conjunction with the company's 10-Q filed yesterday with the SEC. The earnings press release, earnings presentation and 10-Q are available on the Investors section of the company's Web site at blueowlcapitalcorporation.com.

With that, I'll turn the call over to Craig Packer, Chief Executive Officer of OBDC.

Craig Packer

Good morning, everyone. And thank you all for joining us today. We are pleased to report another quarter of strong earnings, delivering attractive returns to our shareholders while maintaining our consistently high credit quality across the portfolio. Net investment income was $0.47 per share for the quarter, equating to a 12.1% return on equity. The strength of our earnings and continued credit performance drove another quarter of record net asset value per share at $15.47 for the first quarter. We once again delivered a compelling ROE, while also growing the book value of our portfolio. Since we spoke to you last quarter, the interest rate outlook has shifted considerably. The market is now expecting rates to continue to stay elevated with limited to no Fed cuts over the course of the year. At the same time, the US economy has remained solid. We believe, overall, this presents a good environment for direct lenders, particularly those like Blue Owl with a long term track record of credit selection. Given our focus on floating rate investments, our earnings benefit from a prolonged higher rate environment, at the same time, the performance of our portfolio reflects both the strength of the economy and our high underwriting standards, and therefore, our credit performance has been resilient.