Key Highlights

  • The forward Dividend Yield is 12.83%, with a regular distribution of USD 0.45 per share declared on November 3.
  • The Board declared a supplemental distribution of USD 0.0150 per share, payable December 15 to holders of record November 30.
  • Third-quarter net Investment income after taxes was USD 40.3 million, compared with USD 43.7 million a year earlier.
  • Net asset value per share was USD 18.76 at September 30, compared with USD 20.26 at December 31, 2025.

Morgan Stanley Direct Lending Fund (NYSE:MSDL) carries a forward dividend yield of 12.83%. On November 3, 2026, the Board declared a regular distribution of USD 0.45 per share, payable January 22, 2027 to shareholders of record as of December 31, 2026. Management said net investment income was USD 0.48 per share for the third quarter.

Dividend Program and Shareholder Returns

On November 3, 2026, the Board declared a regular distribution of USD 0.45 per share, payable on January 22, 2027 to shareholders of record as of December 31, 2026. The Board also declared a supplemental distribution of USD 0.0150 per share, payable on December 15, 2026 to shareholders of record as of November 30, 2026.

Management said the supplemental dividend is equivalent to 50% of excess net investment income per share above the regular dividend. Distributions per share were USD 0.45 for the third quarter, compared with USD 0.50, and USD 1.35 for the nine months, compared with USD 1.50. The trailing twelve month dividend yield is 12.83%, shown for information.

Management said net investment income was USD 0.48 per share, compared with USD 0.45 per share in the prior quarter.

About the Company

Morgan Stanley Direct Lending Fund is a Business Development Company listed on the New York Stock Exchange. Total Assets were USD 3,588.0 million at September 30, 2026, compared with USD 3,920.1 million at December 31, 2025. Total net assets were USD 1,570.1 million, compared with USD 1,748.1 million.

Investment Income and Net Investment Income Lines

Total investment income was USD 86.1 million for the third quarter, compared with USD 99.7 million a year earlier, and USD 264.0 million for the nine months, compared with USD 300.7 million. Interest and other financing expenses were USD 33.2 million, compared with USD 33.9 million.

Net investment income after taxes was USD 40.3 million, compared with USD 43.7 million, and USD 118.9 million for the nine months, compared with USD 133.6 million. Excise tax expense was USD 0.8 million, compared with USD 0.4 million.

Net Realized Losses and the Per-Share Result

Net realized loss on non-controlled and non-affiliated investments was USD 38.2 million for the quarter. Net decrease in net assets per share was USD 0.32, compared with an increase of USD 0.32 a year earlier.

For the nine months, the per-share result was a decrease of USD 0.28, compared with an increase of USD 1.07. Weighted average shares outstanding were 84.0 million, compared with 86.8 million.

Nonaccruals, Capstone JV and the Advisory Agreement

Management said it placed BrightPet on nonaccrual, along with 3 additional investments representing USD 17.2 million at cost. Management said it contributed USD 25 million of Equity to the Capstone JV late in September.

On November 5, 2026, the company and the Adviser entered into the Second Amended and Restated Investment Advisory Agreement. Management said the reduced advisory fees raise NII return on NAV by 64 basis points on a pro forma basis.

Outlook

Morgan Stanley Direct Lending's 12.83% forward dividend yield and the USD 0.45 per share regular distribution are the dividend facts on record. Net investment income per share, net asset value per share, nonaccrual levels, and the amended advisory agreement are the relevant considerations.