Morgan Stanley Direct Lending Fund (MSDL) Q2 2024 earnings summary

Executive summary

• Net investment income per share was $0.63 in Q2 2024, unchanged from Q1 2024, with total net investment income rising to $56.1 million.

• Earnings per share rose to $0.66 from $0.59 sequentially.

• Net asset value per share increased to $20.83 from $20.67 sequentially.

• The Board declared a regular dividend of $0.50 per share for Q3 2024 and a $0.10 special dividend.

• Portfolio comprised 192 companies across 34 industries, with a fair value of $3.5 billion as of June 30, 2024.

Financial highlights

• Total investment income for Q2 2024 was $104.2 million, up from $99.1 million in Q1 2024.

• Net investment income for Q2 2024 was $56.1 million, up from $54.7 million in Q1 2024.

• Net increase in net assets from operations was $59.0 million in Q2 2024.

• Net asset value per share rose to $20.83 at Q2 2024 end.

• Portfolio at fair value grew to $3.51 billion from $3.19 billion at year-end 2023.

Outlook and guidance

• Board declared a $0.50 per share distribution for Q3 2024, payable October 25, 2024, and two $0.10 special distributions for later in 2024 and early 2025.

• Management continues to focus on capital preservation, risk mitigation, and long-term credit performance.

• Management expects current liquidity and borrowing capacity to be sufficient for near-term investing activities and operations.