MSC Income Fund (MSIF) Q1 2026 earnings summary

Executive summary

• Delivered solid first quarter results amid economic and geopolitical uncertainties, with a sole focus on private loan strategy for new investments and improved lending environment.

• Net investment income for Q1 2026 was $16.2 million ($0.35 per share), with adjusted net investment income of $15.6 million ($0.34 per share).

• NAV per share stood at $15.87 at March 31, 2026, with $719.5 million in net assets.

• Announced shift to monthly dividend payments starting July 2026, with total Q1 2026 dividends of $0.36 per share and a current dividend yield of 11%.

• Portfolio diversified across 143 companies, with 60% in Private Loans, 37% in LMM, and 2% in Middle Market investments.

Financial highlights

• Total investment income for Q1 2026 was $34.1 million, up 3% year-over-year, driven by higher interest and fee income.

• Net investment income was $16.2 million ($0.35/share), up from $15.7 million ($0.35/share) in Q1 2025.

• Net increase in net assets from operations was $13.2 million ($0.29/share), a 17% decrease year-over-year.

• Return on equity was 7.3% annualized, down from 9.5% in Q1 2025.

• Portfolio investments at fair value were 106% of cost; non-accrual investments comprised 1.1% of portfolio at fair value.

Outlook and guidance

• Confident in ability to generate attractive new private loan opportunities and grow the portfolio, with a focus on private loan investments.

• Board approved a change to monthly dividend payments starting July 2026, with $0.33/share regular and $0.03/share supplemental dividends declared for Q3 2026.

• LMM and Middle Market portfolios expected to decrease as repayments and sales continue.

• Dividend policy to maintain total quarterly dividends consistent with ANII before taxes per share.