NYSE$TSLX

Sixth Street Specialty Lending Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported net investment income and net income for Q4 2020.

Sixth Street Specialty Lending, Inc. reported a net investment income of $32.8 million, or $0.48 per share, and a net income of $53.5 million, or $0.79 per share for the quarter ended December 31, 2020. The Board declared a special cash dividend per share of $1.25, a first quarter 2021 base dividend of $0.41 per share, and a Q4 2020 supplemental dividend of $0.05 per share.

  • Net investment income for Q4 2020 was $32.8 million, or $0.48 per share.
  • Net income for Q4 2020 was $53.5 million, or $0.79 per share.
  • Reported net asset value (NAV) per share was $17.16 at December 31, 2020.
  • The Board declared a special cash dividend of $1.25 per share, a first quarter 2021 base dividend of $0.41 per share, and a Q4 2020 supplemental dividend of $0.05 per share.

Headline financials

Total Revenue

$62.2M

No prior period
EPS (adj)

$0.50

No prior period
Net Asset Value Per Share

$17.16

No prior period
Yield at Fair Value

10.0%

No prior period
Yield at Amortized Cost

10.2%

No prior period
Annualized ROE (NII)

11.5%

No prior period
Annualized ROE (NI)

18.7%

No prior period
First Lien Debt Investments (% FV)

95.6%

No prior period
Floating Rate Debt Investments (% FV)

99.1%

No prior period
Debt-to-Equity Ratio

0.95

No prior period
Net Income

$53.5M

No prior period
Operating Income

$153M

No prior period
Cash & Equivalents

$13.3M

No prior period
Total Assets

$2.34B

No prior period

Revenue & EPS history

Sixth Street · Revenue · Quarterly

$62.2M

Q4 2020
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

The company is focused on lending to middle-market companies, generating current income through direct originations of senior secured loans, mezzanine loans, and investments in corporate bonds and equity securities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.9%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.5%

Avg return

30 days after

68%

13 / 19 earnings

Positive

+4.6%

Q3 2023

Best reaction

-4.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.8%-11.3%-11.8%
Q4 2025-4.4%-4.3%-11.5%
Q3 2025-1.4%-6.4%-1.6%
Q1 2025-0.6%-0.9%+11.5%
Q4 2024+2.2%+2.9%-3.0%
Q3 2024+1.0%+1.3%+7.2%
Q2 2024-0.8%-5.0%+1.1%
Q1 2024-3.7%-3.0%+1.5%
Q4 2023+1.9%+1.6%-2.8%
Q3 2023+4.6%+2.9%+6.3%
Q2 2023+4.5%+2.5%+1.4%
Q1 2023+0.4%-2.6%+4.3%
Q4 2022+3.2%+0.3%-9.4%
Q3 2022+0.2%+1.2%+3.2%
Q2 2022-0.5%-0.6%-2.8%
Q1 2022+1.7%-0.2%-3.7%
Q4 2021+1.7%+0.0%-4.0%
Q3 2021+0.3%+1.5%+0.4%
Q4 2020+3.1%-0.1%+3.6%

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