Key Highlights

  • The board declared a $0.45 regular Dividend on August 4, 2026, payable on or about October 23, 2026.
  • Net Investment income was $0.45 per share, versus $0.47 previously, and GAAP Net Income per share was $0.09.
  • Net asset value per share was $19.50 at June 30, 2026, compared with $19.81 at March 31, 2026.
  • Total investments were $3.554 billion at fair value, and non-accruals were 2.9% of total investments at amortized cost.

Overview

Morgan Stanley Direct Lending Fund (NYSE:MSDL) declared a third-quarter 2026 regular dividend of $0.45 per share on August 4, 2026, payable on or about October 23. The dividend yields 12.95%. Second-quarter net investment income was $0.45 per share, compared with $0.47 in the first quarter, and net asset value per share was $19.50.

Dividend Program and Shareholder Returns

The board declared a regular dividend of $0.45 per share for the third quarter of 2026 on August 4, 2026. It is payable on or about October 23, 2026.

The dividend was declared with second-quarter results, released August 6, 2026. The fund's second-quarter results also reported net investment income of $0.45 per share, and each dividend remains subject to board approval.

About the Company

Morgan Stanley Direct Lending Fund is a Business Development Company whose shares trade on the New York Stock Exchange. It reports net investment income per share separately from net income per share, the GAAP measure, and it reports investments across 229 portfolio companies and 36 industries.

Second-Quarter Investment Income and Net Asset Value

Total investment income was $88.8 million. Net investment income was $0.45 per share, compared with $0.47 in the first quarter. Net income per share, the GAAP measure, was $0.09, compared with a loss of $0.05 per share in the first quarter.

Net asset value per share was $19.50 at June 30, 2026, down from $19.81 at March 31, 2026. The Debt-to-Equity Ratio was 1.21x.

Non-Accruals, Financing Costs and the Capstone Joint Venture

The company stated that the modest decrease in investment income was primarily driven by positions placed on non-accrual. Seven portfolio companies were on non-accrual status, representing 2.9% of total investments at amortized cost. It stated that total net expenses increased primarily because of higher interest and other financing expenses and a net increase in incentive fees.

New investment fundings were $146.2 million, offset by sales and repayments of $240.5 million, for net funded deployment of negative $94.2 million.

The fund continued to ramp Capstone Lending LLC, and 52.3% of total Capital commitments were called as of June 30, 2026. Liquidity included $1,471.5 million of Credit Facility availability and $71.6 million of unrestricted cash. After quarter-end, the fund issued $350 million of 6.10% Notes due July 2031.

Outlook

Net investment income relative to the $0.45 regular dividend, net asset value per share, non-accruals, financing costs, Capstone Lending LLC contributions, and the board's quarterly declarations are the relevant considerations.