Blue Owl Technology Finance (OTF) investor relations material

Executive summary

• Adjusted net investment income per share was $0.29 for Q1 2026, with GAAP NII per share at $0.37; NAV per share declined to $16.49 from $17.33, mainly due to unrealized losses from credit spread widening and market-driven mark-to-market adjustments.

• Net investment income rose to $171.3 million, driven by higher interest and dividend income post-merger with OTF II.

• Portfolio remains concentrated in technology, especially software (up to 77.7% first lien senior secured), with minimal non-accruals and strong credit performance.

• Market volatility and wider spreads pressured valuations, but underlying asset quality remains robust; over 80% of write-downs were market-driven.

• The company maintains a cautious but opportunistic approach, with ample liquidity and dry powder to deploy as market conditions evolve.

Financial highlights

• Total investment income for Q1 2026 was $325.9 million, with adjusted net investment income of $132.5 million and GAAP net investment income of $171.3 million.

• NAV per share declined to $16.49 from $17.33, primarily due to unrealized losses, partially offset by realized gains and share repurchases.

• Regular dividend of $0.35 per share and special dividend of $0.05 per share declared, totaling $0.40 for the quarter.

• $1.1 billion in repayments and $1.3 billion in new fundings during the quarter; net leverage increased to 0.85x.

• Net realized and unrealized losses for Q1 2026 were $(391.2) million, leading to a net loss of $(219.9) million.

Outlook and guidance

• Management expects software deal activity to remain tempered as the market recalibrates, but sees attractive entry points for disciplined lenders.

• Confident in long-term support for the base dividend, though it may take longer for earnings to fully cover it.

• Portfolio is well-positioned to capitalize on opportunities in digital infrastructure and life sciences as market matures.

• Management targets a debt-to-equity range of 0.9x–1.25x and expects continued volatility but ample capital for selective deployment.

• Annualized dividend yield stands at 9.7% based on Q1 2026 NAV.