Blue Owl Credit Income NAV rises 1% in third quarter

Blue Owl Credit Income Corp.'s Class I net asset value rose about 1% in the third quarter, to $9.17 at Sept. 30 from $9.08 at June 30, AltsWire reported. Class D rose to $9.15 from $9.06, and Class S rose to $9.14 from $9.05. All three remain below their year-end 2025 marks of $9.34, $9.33 and $9.32.

The fund filled 29.8% of the roughly 341.4 million shares tendered in the third quarter, leaving investors with less than a third of their tendered shares repurchased. It paid about $931.1 million through promissory notes and returned the rest. The fund prorates quarterly requests against a cap equal to 5% of shares outstanding, as Interval Fund Daily previously reported. Net assets fell to $17.98 billion from $18.43 billion at June 30. Blue Owl's two nontraded BDCs paid a combined $1.07 billion in third-quarter tenders.

Net investment income was $429.5 million, up from $425.6 million in the second quarter. Total investment income rose to $856.9 million from $841.5 million. Payment-in-kind income was 6.3% of total investment income, down from 6.6% in the second quarter but up from 5.7% a year earlier. Class I's year-to-date total return through September was 5.2%, excluding upfront sales loads. The Class I annualized distribution rate was 9.2% at Sept. 30.

The portfolio held 328 companies at a fair value of $35.11 billion at Sept. 30, down from $35.69 billion three months earlier. First-lien debt was 86.7% of fair value, and debt investments were carried at 97.6% of principal. Two portfolio companies were on non-accrual, 0.2% of the portfolio at fair value and 0.4% at amortized cost, down from 0.3% and 0.6% at the end of 2025. Net leverage was 0.91 times debt to equity, the bottom of the fund's 0.90-to-1.25-times target range, with $11.9 billion of available liquidity.

On Nov. 3 the board approved monthly gross distributions of $0.0701 a share for each class through February 2027, or $0.8412 annualized. Class D's annualized distribution rate was about 8.9% and Class S's about 8.3% at Sept. 30, net of shareholder servicing fees, AltsWire calculated. Through Nov. 2 the fund had raised about $28.2 million from new share sales and accepted another $27.8 million of subscriptions pending its next NAV determination.