Shares of Sixth Street Specialty Lending dropped 8.7% following earnings as investors reacted negatively to margin pressure and a cautious outlook amid market-driven volatility and credit spread widening that depressed net asset value.

• Reported net investment income was $0.42 per share, reflecting an annualized return on equity of 9.9%.
• Net loss per share of $0.27 included significant unrealized losses driven by wider credit spreads and lower market multiples.
• Net asset value per share declined 4.3% sequentially to $16.24, with approximately 80% of the drop due to unrealized mark-to-market losses.
• Activity-based fees fell to $0.05 per share in Q1, below the three-year average of $0.09, reflecting reduced transaction volumes amid market volatility.
• The company lowered its base dividend from $0.46 to $0.42 per share, citing the need to align dividends with forward earnings power given the uncertain near-term environment.