TSLX - Sixth Street Specialty Lending Inc. (TSLX) Q1 2024 Earnings Call Transcript
2024-05-02 12:44:07 ET
Sixth Street Specialty Lending, Inc. (TSLX)
Q1 2024 Earnings Conference Call
May 02, 2024, 08:30 ET
Company Participants
Cami VanHorn - Head, IR
Joshua Easterly - CEO & Chairman
Robert Stanley - President
Ian Simmonds - CFO
Conference Call Participants
Brian Mckenna - JMP Securities
Maxwell Fritscher - Truist Securities
Finian O'Shea - Wells Fargo Securities
Erik Zwick - Hovde Group
Melissa Wedel - JPMorgan Chase & Co.
Bryce Rowe - B. Riley Securities
Robert Dodd - Raymond James & Associates
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Sixth Street Specialty Lending, Inc. Q1 2024 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Cami VanHorn, Head of Investor Relations. Please go ahead.
Cami VanHorn
Thank you. Before we begin today's call, I would like to remind our listeners that remarks made during the call may contain forward-looking statements. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Sixth Street Specialty Lending, Inc. filings with the Securities and Exchange Commission.
The company assumes no obligation to update any such forward-looking statements. Yesterday, after the market closed, we issued our earnings press release for the first quarter ended March 31, 2024, and posted a presentation to the Investor Resources section of our website, www.sixthstreetspecialtylending.com. The presentation should be reviewed in conjunction with our Form 10-Q filed yesterday with the SEC. Sixth Street Specialty Lending, Inc.'s earnings release is also available on our website under the Investor Resources section. Unless noted otherwise, all performance figures mentioned in today's prepared remarks are as of and for the first quarter ended March 31, 2024.
As a reminder, this call is being recorded for replay purposes. I will now turn the call over to Joshua Easterly, Chief Executive Officer of Sixth Street Specialty Lending, Inc.
Joshua Easterly
Good morning, everyone, and thank you for joining us. With us today are our President, Bo Stanley; and our CFO, Ian Simmonds. For our call today, I will review our first quarter highlights and pass it over to Bo to discuss activity in the portfolio. Ian will review our financial performance in more detail, and I will conclude with final remarks before opening the call to Q&A.
After market closed yesterday, we reported first quarter adjusted net investment income of $0.58 per share or an annualized return on equity of 13.6% and adjusted net income of $0.52 per share or an annualized return on equity of 12.3%. As presented in our financial statements, our Q1 net investment income and net income per share, inclusive of the unwind of the noncash accrued capital gains incentive fee expense or $0.01 per share higher. The difference between this quarter's net investment income and net income was driven by $0.09 per share of net unrealized gains from the impact of tighter credit spreads on the valuation of our investments, $0.14 per share on net unrealized losses from portfolio company-specific events and $0.03 per share of unrealized losses from the reversal of prior period unrealized gains related to investment realizations and $0.03 per share of realized gains from investment sales....
Sixth Street Specialty Lending, Inc. (TSLX) Q1 2024 Earnings Call Transcript