Morgan Stanley Direct Lending Fund (MSDL) investor relations material

Executive summary

• Net investment income for Q2 2026 was $38.2 million ($0.45 per share), down from $0.47 in the prior quarter, but covered the $0.45 per share dividend, with earnings per share improving to $0.09 from ($0.05) sequentially.

• Portfolio at fair value totaled $3.6 billion across 229 companies in 36 industries, with 93.1% in first lien investments.

• Share repurchases added $0.05 to NAV per share in the quarter, with 831,486 shares repurchased at an average price of $15.06 per share.

• Origination momentum continued, with $85 million in new commitments and three new platform investments.

• Capstone JV ramped up, with $324.4 million in assets at fair value and 52.3% of capital commitments called by June 30, 2026.

Financial highlights

• Total investment income for Q2 2026 was $88.8 million, with net investment income after taxes of $38.2 million.

• NAV per share ended at $19.50, down from $19.81 in the prior period.

• Debt outstanding was $2.0 billion, with a debt-to-equity ratio of 1.21x and net debt-to-equity of 1.17x.

• Weighted average yield at cost for debt investments was 9.1%; 99.6% of debt investments were floating rate.

• Total liquidity was $1.54 billion, including $71.6 million in cash and $1.47 billion in undrawn debt capacity.

Outlook and guidance

• Board declared a regular distribution of $0.45 per share, payable in October 2026.

• Management expects sufficient liquidity for near-term investing activities and a defensive portfolio approach focused on first lien, floating rate, senior secured loans.

• Dividend level is expected to be supported by NII and JV ramping, despite some quarter-to-quarter noise from non-accruals.

• Portfolio is well-positioned to navigate ongoing market headwinds, including elevated rates and geopolitical uncertainty.