Morgan Stanley Direct Lending Fund Announces Financial Results and Regular Dividend

Strategic Insights -

Morgan Stanley Direct Lending Fund (MSDL) recently announced its financial results for the quarter ended March 31, 2025. Despite a slight decline in net investment income, the fund's net asset value (NAV) remained steady at $20.65 per share. The Company's Board of Directors declared a regular dividend of $0.50 per share to shareholders of record as of March 31, 2025. Additionally, MSDL established an at-the-market offering (ATM) through which the Company may sell shares of its common stock, having an aggregate offering price of up to $300.0 million.

Key Takeaways:

  • Net investment income for the quarter ended March 31, 2025 was $46.2 million, or $0.52 per share, a decrease from $50.7 million, or $0.57 per share, for the quarter ended December 31, 2024.
  • Net asset value (NAV) was $20.65 per share, a decrease from $20.81 per share as of December 31, 2024.
  • Debt-to-equity was 1.11x as of March 31, 2025, a slight increase from 1.08x as of December 31, 2024.
  • New investment commitments were $233.4 million, with fundings of $205.6 million and sales and repayments of $201.8 million, resulting in a net funded deployment of $3.8 million.
  • MSDL's Board of Directors declared a regular dividend of $0.50 per share to shareholders of record as of March 31, 2025.
  • The Company established an ATM offering with an aggregate offering price of up to $300.0 million.
  • As of March 31, 2025, MSDL had total principal debt outstanding of $2,013.6 million, including $316.0 million outstanding in the Company's BNP funding facility.
  • MSDL's combined weighted average interest rate on debt outstanding was 6.11% for the quarter ended March 31, 2025.
  • MSDL had $1,084.1 million of availability under its credit facilities and $65.6 million in unrestricted cash as of March 31, 2025.
  • MSDL repurchased 491,332 shares at an average price of $20.38 per share in the three months ended March 31, 2025.

Statistics:

  • Net investment income: $46.2 million, or $0.52 per share (Q1 2025), down from $50.7 million, or $0.57 per share (Q4 2024)
  • Net asset value (NAV): $20.65 per share (Q1 2025), down from $20.81 per share (Q4 2024)
  • Debt-to-equity ratio: 1.11x (Q1 2025), up from 1.08x (Q4 2024)
  • New investment commitments: $233.4 million
  • Fundings: $205.6 million
  • Sales and repayments: $201.8 million
  • Net funded deployment: $3.8 million
  • Total principal debt outstanding: $2,013.6 million (Q1 2025)
  • Combined weighted average interest rate on debt: 6.11% (Q1 2025)
  • Availability under credit facilities: $1,084.1 million
  • Unrestricted cash: $65.6 million

Sources:

  • ENPublishing: "Morgan Stanley Direct Lending Fund Announces March 31, 2025 Financial Results and Declares Second Quarter 2025 Regular Dividend of $0.50 per Share"
  • MSDL Investor Relations website: http://www.msdl.com
  • M2 Communications: http://www.m2.co.uk