Kayne Anderson NextGen Energy & Infrastructure Announces Distribution of $0.16 per Share for Q1 2022

Rhea-AI Summary

Kayne Anderson NextGen Energy & Infrastructure announced a quarterly distribution of $0.16 per share, up $0.02 from the previous distribution, payable on April 19, 2022. This equates to an annualized distribution rate of 7.7%. Chairman Jim Baker emphasized the importance of distributions for investors, despite the stock trading at a 20.8% discount to NAV. The management remains optimistic about the sustainability of the distribution levels, which are based on net distributable income and portfolio performance.

Positive

• Quarterly distribution increased by $0.02 per share.
• Annualized distribution rate stands at 7.7%.
• Portfolio investments showed strong performance over the past year.

Negative

• Stock is trading at a 20.8% discount to NAV.
• Management expressed disappointment in the stock's performance relative to NAV.

HOUSTON, March 30, 2022 (GLOBE NEWSWIRE) -- Kayne Anderson NextGen Energy & Infrastructure, Inc. (the “Fund”) (NYSE: KMF) announced today a quarterly distribution of $0.16 per share for the fiscal quarter ended February 28, 2022. This distribution, which is an increase of $0.02 per share over the prior distribution, is payable to common stockholders on April 19, 2022 (as outlined in the table below).

The Fund’s management and its Board of Directors recognize that distributions are a significant part of the value proposition KMF provides its investors. Based on its closing price as of March 29, 2022, and quarterly distribution of $0.16 per share, KMF’s annualized distribution rate is 7.7%.

“One of management’s most important long-term goals is to provide KMF’s investors an attractive distribution, and I am very pleased to announce a 14% increase to the Fund’s distribution. KMF’s portfolio investments have performed well over the last year, and we believe the outlook for energy infrastructure companies over the next year is very robust,” said Jim Baker, the Fund’s Chairman, President and CEO.

“Based on our current outlook, we believe this distribution level is sustainable and consistent with our distribution policy, which considers net distributable income (NDI) as well as realized and unrealized gains from KMF’s portfolio investments when determining KMF’s distribution,” continued Mr. Baker.

“While we are pleased with KMF’s performance over the last 12 months, we are disappointed with how the Fund’s stock price has traded relative to NAV over this time period. At current prices, KMF is trading at a 20.8% discount to NAV. While we continue to consider various alternatives to enhance stockholder value, we believe the most effective way to have a sustainable impact on this discount is to pay an attractive distribution and generate consistent returns. Further, we believe distribution increases are the most efficient way to reward our long-term investors,” concluded Mr. Baker.

Ex-Date	Record Date	Payment Date	Distribution Amount		Return of Capital Estimate(1)
4/8/22	4/11/22	4/19/22	$0.16		95%

(1)	The return of capital estimate is based on the Funds anticipated earnings and profits. The final determination of the tax character of distributions may differ substantially from this preliminary information.

The Fund expects the next distribution to be declared in June 2022. Payment of future distributions is subject to the Board of Directors’ approval, as well as meeting the covenants of the Fund’s debt agreements and terms of its preferred stock.

Kayne Anderson NextGen Energy & Infrastructure, Inc. (NYSE: KMF) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Fund’s investment objective is to provide a high level of total return with an emphasis on making cash distributions to its stockholders. The Fund seeks to achieve its investment objective by investing at least 80% of its total assets in securities of Energy Companies and Infrastructure Companies. The Fund anticipates that the majority of its investments will consist of investments in “NextGen” companies, which we define as Energy Companies and Infrastructure Companies that are meaningfully participating in, or benefitting from, the Energy Transition. See Glossary of Key Terms in the Fund’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

The Fund pays cash distributions to common stockholders at a rate that may be adjusted from time to time. Distribution amounts are not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions. 

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Fund’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Fund’s investment objectives will be attained.

Contact: Investor Relations at 877-657-3863 or cef@kaynecapital.com

FAQ

What is the dividend distribution for KMF for the quarter ended February 28, 2022?

KMF announced a quarterly distribution of $0.16 per share.

When will KMF's distribution be paid?

The distribution will be paid on April 19, 2022.

What is KMF's annualized distribution rate?

The annualized distribution rate for KMF is 7.7%.

How much has KMF's distribution increased?

The distribution increased by $0.02 per share compared to the previous quarter.

What discount is KMF currently trading at relative to NAV?

KMF is trading at a 20.8% discount to NAV.