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Get filing alertsMSDL reports Q2 NII of $0.45/share, NAV declines to $19.50 on credit deterioration
Filed August 6, 2026 · Period ending August 6, 2026 · ~1 min read
Key Changes
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Net investment income fell to $38.2M ($0.45/share) from $40.5M ($0.47/share) in Q1 2026, driven by seven portfolio companies on non-accrual status representing 2.9% of total investments at cost.
Exhibit 99.1 view on EDGAR → -
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NAV per share declined to $19.50 from $19.81 quarter-over-quarter, reflecting credit deterioration partially offset by Capstone joint venture contributions.
Exhibit 99.1 view on EDGAR → -
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Board declared regular $0.45/share distribution payable October 23, 2026 to shareholders of record September 30, 2026, maintaining the prior quarterly rate.
Item 7.01 verify on EDGAR → -
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Portfolio experienced net runoff of $94.2M as $240.5M in sales and repayments exceeded $146.2M in fundings; Capstone joint venture reached 52.3% of capital commitments called.
Exhibit 99.1 view on EDGAR → -
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Post-quarter, MSDL issued $350M of 6.10% senior unsecured notes due July 2031, adding long-term financing capacity.
Exhibit 99.1 view on EDGAR →
Summary
Morgan Stanley Direct Lending Fund reported Q2 2026 results showing credit pressure in its portfolio. Net investment income declined 5.7% quarter-over-quarter to $38.2 million ($0.45 per share), driven by seven portfolio companies moving to non-accrual status. These troubled credits represent 2.9% of total investments at cost.
NAV per share fell 1.6% to $19.50 from $19.81, reflecting the credit deterioration partially offset by contributions from the Capstone joint venture. The portfolio experienced net runoff of $94.2 million as repayments and sales outpaced new fundings. Despite the credit headwinds, the Board maintained the regular quarterly distribution at $0.45 per share, matching NII for the quarter.
Post-quarter, MSDL issued $350 million of 6.10% notes due 2031, adding long-term financing capacity. The 2.9% non-accrual rate and sequential NAV decline warrant monitoring, though the company's ability to maintain its dividend and access capital markets at reasonable rates suggests the credit issues remain contained.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
MSDL announced Q2 2026 financial results via press release.
Added in current filing · verify on EDGAR →
On August 6, 2026, Morgan Stanley Direct Lending Fund (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2026.
The company disclosed its financial results for the quarter ended June 30, 2026 through a press release. The 8-K body does not contain the actual financial figures; those appear in the attached Exhibit 99.1 press release.
Event · Item 7.01 — Regulation FD Disclosure
Item 7.01 — Regulation FD Disclosure filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On August 4, 2026, the Board of Directors of the Company declared a regular distribution to stockholders in the amount of $0.45 per share. The distribution will be payable on or around October 23, 2026 to stockholders of record as of September 30, 2026.
The Board declared a regular distribution of $0.45 per share to stockholders. The distribution will be paid around October 23, 2026 to shareholders of record as of September 30, 2026. This represents a routine capital return to investors.
Event · Exhibit 99.1
MSDL reported Q2 2026 results with NII of $0.45/share, NAV decline to $19.50, and declared Q3 dividend of $0.45/share.
Added in current filing · view on EDGAR →
Net investment income of $38.2 million, or $0.45 per share, as compared to $40.5 million, or $0.47 per share, for the quarter ended March 31, 2026;
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Net asset value of $19.50 per share, as compared to $19.81 as of March 31, 2026;
MSDL reported net investment income of $38.2 million ($0.45 per share) for Q2 2026, down from $40.5 million ($0.47 per share) in Q1 2026. Net asset value per share declined to $19.50 from $19.81 quarter-over-quarter. The NII decrease was driven by positions placed on non-accrual, partially offset by the Capstone joint venture contribution.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 7, 2026 · How we verify