Morgan Stanley Direct Lending Fund (MSDL) investor relations material

Executive summary

• Q3 net investment income was $40.261 million, or $0.48 per share, versus $38.2 million, or $0.45 per share, in Q2; NAV per share fell to $18.76 from $19.50.

• Q3 operations produced a $27.304 million net loss, or $(0.32) per share, as realized losses and unrealized depreciation totaled $67.565 million.

• Effective Jan. 1, 2027, base management fees decline from 1.00% to 0.75% and incentive fees from 17.5% to 15.0%; the Q4 distribution includes $0.45 regular and $0.015 supplemental per share.

Financial highlights

• Total investment income was $86.140 million, down from $88.8 million in Q2; lower non-recurring revenue and non-accrual positions contributed to the decline.

• Net investment income was $40.261 million, versus $38.2 million in Q2; net expenses fell to $45.1 million from $49.8 million.

• Net realized losses were $38.2 million and net unrealized depreciation was $29.4 million; net assets from operations decreased by $27.304 million.

• Q3 distributions were $0.45 per share; nine-month distributions totaled $1.35 per share, versus $1.50 in 9M 2025.

Outlook and guidance

• Pro forma on trailing 12-month results through Sept. 30, 2026, fee changes imply a 64-bps increase in NII return on equity and $0.13 additional NII per share; management also cited an estimated ~$0.03 quarterly NII per share benefit.

• Quarterly supplemental distributions are expected to equal 50% of excess NII per share above the regular distribution, if applicable; distributions remain Board-discretionary.

• Management expressed confidence in the $0.45 regular distribution, citing gradual JV ramp benefits, the September rate increase and 2027 fee reductions; full JV ramp could add ~$0.04 per share versus the current level.