Morgan Stanley Direct Lending Fund Announces June 30, 2024 Financial Results and Declares Third Quarter 2024 Dividend of $0.50 per Share
Morgan Stanley Direct Lending Fund (NYSE: MSDL) reported strong Q2 2024 results, its first full quarter as a public company. Key highlights include:
- Net investment income of $56.1 million, or $0.63 per share
- Net asset value increased to $20.83 per share from $20.67 in Q1
- New investment commitments of $673.9 million
- Net funded deployment of $210.4 million
- Declared Q3 dividend of $0.50 per share
The investment portfolio had a fair value of $3.5 billion across 192 companies. Total debt outstanding was $1.67 billion with a debt-to-equity ratio of 0.90x. The Board also declared a special dividend of $0.10 per share.
Il Morgan Stanley Direct Lending Fund (NYSE: MSDL) ha riportato risultati solidi per il secondo trimestre del 2024, il suo primo trimestre intero come società quotata. I punti salienti includono:
- Reddito da investimenti netto di 56,1 milioni di dollari, pari a 0,63 dollari per azione
- Valore netto degli attivi aumentato a 20,83 dollari per azione rispetto a 20,67 dollari nel primo trimestre
- Nuovi impegni di investimento di 673,9 milioni di dollari
- Distribuzione netta finanziata di 210,4 milioni di dollari
- Dividendo dichiarato per il terzo trimestre di 0,50 dollari per azione
Il portafoglio di investimenti aveva un valore equo di 3,5 miliardi di dollari distribuiti su 192 aziende. Il debito totale in circolazione era di 1,67 miliardi di dollari, con un rapporto debito/capitale di 0,90x. Il Consiglio ha anche dichiarato un dividendo speciale di 0,10 dollari per azione.
El Morgan Stanley Direct Lending Fund (NYSE: MSDL) reportó sólidos resultados en el segundo trimestre de 2024, su primer trimestre completo como empresa pública. Los aspectos destacados incluyen:
- Ingreso neto por inversiones de 56,1 millones de dólares, o 0,63 dólares por acción
- El valor neto de los activos aumentó a 20,83 dólares por acción desde 20,67 dólares en el primer trimestre
- Nuevos compromisos de inversión por 673,9 millones de dólares
- Despliegue neto financiado de 210,4 millones de dólares
- Dividendo declarado para el tercer trimestre de 0,50 dólares por acción
La cartera de inversiones tenía un valor justo de 3,5 mil millones de dólares a través de 192 empresas. La deuda total pendiente era de 1,67 mil millones de dólares con una relación deuda-capital de 0,90x. La Junta también declaró un dividendo especial de 0,10 dólares por acción.
모건 스탠리 다이렉트 렌딩 펀드(NYSE: MSDL)는 2024년 2분기 실적을 발표했으며, 이는 상장 회사로서의 첫 번째 전체 분기입니다. 주요 내용은 다음과 같습니다:
- 순 투자 수익이 5,610만 달러로, 주당 0.63 달러
- 순 자산 가치는 1분기 20.67 달러에서 20.83 달러로 증가
- 신규 투자 약정은 6억 7390만 달러
- 순 자금 배치 2억 1040만 달러
- 3분기 배당금으로 주당 0.50 달러를 선언
투자 포트폴리오는 192개 회사에 걸쳐 공정 가치가 35억 달러에 이릅니다. 총 부채는 16억 7천만 달러였으며, 부채-자기 자본 비율은 0.90배입니다. 이사회는 또한 주당 0.10 달러의 특별 배당금을 선언했습니다.
Le Morgan Stanley Direct Lending Fund (NYSE: MSDL) a rapporté de solides résultats pour le deuxième trimestre 2024, son premier trimestre complet en tant qu'entreprise cotée. Les points clés incluent :
- Revenu net d'investissement de 56,1 millions de dollars, soit 0,63 dollar par action
- Valeur nette des actifs passée de 20,67 dollars au 1er trimestre à 20,83 dollars par action
- Nouveaux engagements d'investissement de 673,9 millions de dollars
- Déploiement net financé de 210,4 millions de dollars
- Dividende déclaré pour le 3ème trimestre de 0,50 dollar par action
Le portefeuille d'investissement avait une valeur équitable de 3,5 milliards de dollars répartis sur 192 entreprises. La dette totale en circulation s'élevait à 1,67 milliard de dollars avec un ratio dette/capitaux propres de 0,90x. Le Conseil a également déclaré un dividende spécial de 0,10 dollar par action.
Der Morgan Stanley Direct Lending Fund (NYSE: MSDL) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet, das erste vollständige Quartal als börsennotiertes Unternehmen. Zu den wichtigsten Highlights gehören:
- Nettoertrag aus Investitionen von 56,1 Millionen Dollar, oder 0,63 Dollar pro Aktie
- Nettovermögen stieg auf 20,83 Dollar pro Aktie von 20,67 Dollar im 1. Quartal
- Neue Investitionszusagen in Höhe von 673,9 Millionen Dollar
- Nettomittelverwendung von 210,4 Millionen Dollar
- Für das 3. Quartal erklärte Dividende von 0,50 Dollar pro Aktie
Das Investitionsportfolio hatte einen fairen Wert von 3,5 Milliarden Dollar über 192 Unternehmen. Die insgesamt ausstehende Schulden beliefen sich auf 1,67 Milliarden Dollar, mit einem Verhältnis von Fremdkapital zu Eigenkapital von 0,90x. Der Vorstand erklärte auch eine Sonderdividende von 0,10 Dollar pro Aktie.
- Net investment income of $56.1 million, or $0.63 per share
- Net asset value increased to $20.83 per share from $20.67 in Q1
- New investment commitments of $673.9 million
- Net funded deployment of $210.4 million
- Declared regular Q3 dividend of $0.50 per share and special dividend of $0.10 per share
- Investment portfolio fair value increased to $3.5 billion from $3.3 billion in Q1
- Total investment income increased to $104.2 million from $99.1 million in Q1
- Debt-to-equity ratio increased to 0.90x from 0.81x in Q1
- Two portfolio companies on non-accrual status, representing 0.3% of total investments at amortized cost
Insights
MSDL's Q2 2024 results demonstrate solid performance in its first full quarter as a public company. Key highlights include:
- Net investment income of
$56.1 million ($0.63 per share), consistent with Q1 - NAV increase to
$20.83 per share from$20.67 in Q1 - Debt-to-equity ratio of 0.90x, up from 0.81x in Q1
- Net funded deployment of
$210.4 million
The increased debt-to-equity ratio and net funded deployment suggest aggressive growth strategies. However, the stable NII per share indicates effective management of the expanded portfolio. The
MSDL's portfolio quality appears strong, with only
MSDL's performance reflects the robust demand for private credit in the middle market. The significant increase in new investment commitments (
“In the second quarter of 2024, our first full quarter operating as a public company, MSDL generated strong operating results,” said Jeffrey Levin, President and Chief Executive Officer of Morgan Stanley Direct Lending Fund. “This performance was supported by continued credit stability in our portfolio of senior, sponsor-backed middle market loans.”
QUARTERLY HIGHLIGHTS
-
Net investment income of
, or$56.1 million per share;$0.63 -
Net asset value of
per share, as compared to$20.83 as of March 31, 2024;$20.67 - Debt-to-equity was 0.90x as of June 30, 2024, as compared to 0.81x as of March 31, 2024;
-
New investment commitments of
, fundings of$673.9 million and sales and repayments of$499.7 million , resulting in net funded deployment of$289.3 million ; and$210.4 million -
The Company’s Board of Directors (the “Board”) declared a regular dividend of
per share, paid on July 25, 2024 to stockholders of record as of June 28, 2024.$0.50
SELECTED FINANCIAL HIGHLIGHTS
For the Quarter Ended |
||||
|
June 30, 2024 |
March 31, 2024 |
||
Net investment income per share |
|
|
||
Net realized and unrealized gains (losses) per share1 |
|
( |
||
Earnings per share |
|
|
||
Regular dividend per share |
|
|
||
|
||||
As of |
||||
($ in thousands, except per share information) |
June 30, 2024 |
March 31, 2024 |
||
Investments, at fair value |
|
|
||
Total debt outstanding, at principal |
|
|
||
Net assets |
|
|
||
Net asset value per share |
|
|
||
Debt to equity |
0.90x |
0.81x |
||
Net debt to equity |
0.85x |
0.77x |
||
1 Amount shown may not correspond for the period as it includes the effect of the timing of the distribution and the issuance of common stock. |
RESULTS OF OPERATIONS
Total investment income for the second quarter ended June 30, 2024 was
Total expenses for the quarter ended June 30, 2024 were
Net investment income for the quarter ended June 30, 2024 was
For the quarter ended June 30, 2024, net change in unrealized appreciation on investments was
PORTFOLIO AND INVESTMENT ACTIVITY
As of June 30, 2024, the Company’s investment portfolio had a fair value of approximately
|
|
June 30, 2024 |
March 31, 2024 |
|||||||||
($ in thousands) |
|
Cost |
|
Fair Value |
|
% of Total Investments at Fair Value |
|
Cost |
|
Fair Value |
|
% of Total Investments at Fair Value |
First Lien Debt |
|
|
|
|
|
|
|
|
|
|
|
|
Second Lien Debt |
|
122,416 |
|
103,144 |
|
2.9 |
|
136,708 |
|
118,107 |
|
3.6 |
Other Debt Investments |
|
9,289 |
|
8,467 |
|
0.2 |
|
3,430 |
|
2,163 |
|
0.1 |
Equity |
|
53,735 |
|
56,932 |
|
1.6 |
|
52,500 |
|
57,531 |
|
1.7 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Investment activity for the three months ended June 30, 2024 and March 31, 2024, was as follows:
Investment Activity: |
June 30, 2024 |
March 31, 2024 |
|||
New investment commitments, at par |
|
|
|||
Investment fundings |
|
|
|||
Number of new Investment commitments in portfolio companies |
22 |
9 |
|||
Number of portfolio companies exited or fully repaid |
8 |
3 |
Total weighted average yield of investments in debt securities at amortized cost and fair value was
CAPITAL AND LIQUIDITY
As of June 30, 2024, the Company had total principal debt outstanding of
OTHER DEVELOPMENTS
-
On August 6, 2024, the Board declared a distribution of
per share, which is payable on October 25, 2024 to shareholders of record as of September 30, 2024.$0.50 -
The Board previously declared a
per share special dividend to shareholders of record as of August 5, 2024.$0.10 - In July, Moody’s affirmed MSDL’s Baa3 (stable) rating.
CONFERENCE CALL INFORMATION
Morgan Stanley Direct Lending Fund will host a conference call on Friday, August 9, 2024 at 10:00 am ET to review its financial results and conduct a question-and-answer session. All interested parties are invited to participate in the live earnings conference call by using the following dial-in numbers or audio webcast link available on the MSDL Investor Relations website:
- Audio Webcast
- Conference Call
- Domestic: 323-994-2093
- International: 888-394-8218
- Passcode: 5963189
To avoid potential delays, please join at least 10 minutes prior to the start of the earnings call. An archived replay will also be available on the MSDL Investor Relations website.
About Morgan Stanley Direct Lending Fund
Morgan Stanley Direct Lending Fund (NYSE: MSDL) is a non-diversified, externally managed specialty finance company focused on lending to middle-market companies. MSDL has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. MSDL is externally managed by MS Capital Partners Adviser Inc., an indirect, wholly owned subsidiary of Morgan Stanley. MSDL is not a subsidiary of or consolidated with Morgan Stanley. For more information about Morgan Stanley Direct Lending Fund, please visit www.msdl.com.
Forward-Looking Statements
Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or MSDL’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in MSDL’s filings with the
Consolidated Statements of Assets and Liabilities (In thousands, except share and per share amounts) |
||||||
|
|
As of |
||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||
|
|
(Unaudited) |
|
(Audited) |
||
Assets |
|
|
|
|
||
Non-controlled/non-affiliated investments, at fair value (amortized cost of |
|
$ |
3,514,286 |
|
$ |
3,193,561 |
Cash and cash equivalents (restricted cash of |
|
|
94,966 |
|
|
69,705 |
Deferred financing costs |
|
|
17,000 |
|
|
14,317 |
Interest and dividend receivable from non-controlled/non-affiliated investments |
|
|
27,594 |
|
|
28,884 |
Subscription receivable |
|
|
— |
|
|
41 |
Receivable for investments sold/repaid |
|
|
136 |
|
|
173 |
Prepaid expenses and other assets |
|
|
1,917 |
|
|
53 |
Total assets |
|
|
3,655,899 |
|
|
3,306,734 |
|
|
|
|
|
||
Liabilities |
|
|
|
|
||
Debt (net of unamortized debt issuance costs of |
|
|
1,664,423 |
|
|
1,496,032 |
Payable for investment purchased |
|
|
31,469 |
|
|
8 |
Payable to affiliates (Note 3) |
|
|
1,508 |
|
|
2,870 |
Dividends payable |
|
|
44,704 |
|
|
49,968 |
Management fees payable |
|
|
6,479 |
|
|
2,012 |
Income based incentive fees payable |
|
|
9,903 |
|
|
11,766 |
Interest payable |
|
|
20,664 |
|
|
18,823 |
Accrued expenses and other liabilities |
|
|
14,788 |
|
|
4,104 |
Total liabilities |
|
|
1,793,938 |
|
|
1,585,583 |
|
|
|
|
|
||
Commitments and Contingencies (Note 7) |
|
|
|
|
||
|
|
|
|
|
||
Net assets |
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
— |
Common stock, par value |
|
|
89 |
|
|
83 |
Paid-in capital in excess of par value |
|
|
1,831,835 |
|
|
1,712,609 |
Total distributable earnings (loss) |
|
|
30,037 |
|
|
8,459 |
Total net assets |
|
$ |
1,861,961 |
|
$ |
1,721,151 |
Total liabilities and net assets |
|
$ |
3,655,899 |
|
$ |
3,306,734 |
Net asset value per share |
|
$ |
20.83 |
|
$ |
20.67 |
Consolidated Statements of Operations (unaudited) (In thousands, except share amounts) |
||||||||||||||||
|
|
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||
|
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||
Investment Income: |
|
|
|
|
|
|
|
|
||||||||
From non-controlled/non-affiliated investments: |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
$ |
99,072 |
|
|
$ |
86,573 |
|
|
$ |
193,703 |
|
|
$ |
168,290 |
|
Payment-in-kind |
|
|
2,850 |
|
|
|
622 |
|
|
|
5,494 |
|
|
|
1,063 |
|
Dividend income |
|
|
646 |
|
|
|
504 |
|
|
|
1,211 |
|
|
|
1,000 |
|
Other income |
|
|
1,620 |
|
|
|
1,195 |
|
|
|
2,881 |
|
|
|
2,180 |
|
Total investment income |
|
|
104,188 |
|
|
|
88,894 |
|
|
|
203,289 |
|
|
|
172,533 |
|
|
|
|
|
|
|
|
|
|
||||||||
Expenses: |
|
|
|
|
|
|
|
|
||||||||
Interest and other financing expenses |
|
|
29,302 |
|
|
|
27,907 |
|
|
|
56,562 |
|
|
|
54,574 |
|
Management fees |
|
|
8,639 |
|
|
|
7,446 |
|
|
|
16,869 |
|
|
|
14,750 |
|
Income based incentive fees |
|
|
11,554 |
|
|
|
10,138 |
|
|
|
22,890 |
|
|
|
19,519 |
|
Professional fees |
|
|
1,687 |
|
|
|
847 |
|
|
|
2,904 |
|
|
|
2,088 |
|
Directors’ fees |
|
|
128 |
|
|
|
88 |
|
|
|
274 |
|
|
|
168 |
|
Administrative service fees |
|
|
17 |
|
|
|
60 |
|
|
|
42 |
|
|
|
114 |
|
General and other expenses |
|
|
51 |
|
|
|
197 |
|
|
|
159 |
|
|
|
365 |
|
Total expenses |
|
|
51,378 |
|
|
|
46,683 |
|
|
|
99,700 |
|
|
|
91,578 |
|
Management fees waiver (Note 3) |
|
|
(2,160 |
) |
|
|
(5,584 |
) |
|
|
(5,257 |
) |
|
|
(11,062 |
) |
Incentive fees waiver (Note 3) |
|
|
(1,651 |
) |
|
|
— |
|
|
|
(2,862 |
) |
|
|
— |
|
Net expenses |
|
|
47,567 |
|
|
|
41,099 |
|
|
|
91,581 |
|
|
|
80,516 |
|
Net investment income (loss) before taxes |
|
|
56,621 |
|
|
|
47,795 |
|
|
|
111,708 |
|
|
|
92,017 |
|
Excise tax expense |
|
|
500 |
|
|
|
— |
|
|
|
936 |
|
|
|
— |
|
Net investment income (loss) after taxes |
|
|
56,121 |
|
|
|
47,795 |
|
|
|
110,772 |
|
|
|
92,017 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gain (loss): |
|
|
|
|
|
|
|
|
||||||||
Net realized gain (loss) on non-controlled/non-affiliated investments |
|
|
108 |
|
|
|
— |
|
|
|
(5,517 |
) |
|
|
122 |
|
Net change in unrealized appreciation (depreciation) on non-controlled/non-affiliated investments |
|
|
2,816 |
|
|
|
8,647 |
|
|
|
5,474 |
|
|
|
8,080 |
|
Net realized and unrealized gain (loss) |
|
|
2,924 |
|
|
|
8,647 |
|
|
|
(43 |
) |
|
|
8,202 |
|
Net increase (decrease) in net assets resulting from operations |
|
$ |
59,045 |
|
|
$ |
56,442 |
|
|
$ |
110,729 |
|
|
$ |
100,219 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net investment income (loss) per share (basic and diluted) |
|
$ |
0.63 |
|
|
$ |
0.67 |
|
|
$ |
1.25 |
|
|
$ |
1.29 |
|
Earnings per share (basic and diluted) |
|
$ |
0.66 |
|
|
$ |
0.79 |
|
|
$ |
1.25 |
|
|
$ |
1.41 |
|
Weighted average shares outstanding |
|
|
89,271,839 |
|
|
|
71,337,323 |
|
|
|
88,315,183 |
|
|
|
71,101,563 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808695411/en/
Investors
Michael Occi
msdl@morganstanley.com
Media
Alyson Barnes
212-762-0514
alyson.barnes@morganstanley.com
Source: Morgan Stanley Direct Lending Fund
FAQ
What was MSDL's net investment income per share for Q2 2024?
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What dividend did MSDL declare for Q3 2024?
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