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MSC Income Fund Announces First Quarter 2026 Results

On May 7, 2026, MSC Income Fund, Inc. (NYSE: MSIF) proudly reported its financial results for the first quarter ending March 31, 2026. The Fund demonstrated its resilience and adaptability in a complex economic landscape, achieving notable growth in net investment income and expanding its investment portfolio.

Financial Highlights

Overview

The first quarter of 2026 yielded a net investment income (NII) of approximately $16.2 million, translating to $0.35 per share. This reflects a stable performance, consistent with the same period in the previous year. After adjusting for various factors, the adjusted net investment income (ANII) stood at $15.6 million, or $0.34 per share.

Investment Income Breakdown

Total investment income for the quarter reached $34.1 million, signifying a year-on-year increase of 3%. The boost was driven primarily by a $2 million hike in interest income attributed to heightened levels of income-producing debt investments. However, dividend income saw a dip, decreasing by $1.6 million as the Fund navigated challenges within its lower middle market (LMM) portfolio companies.

Investment and Management Performance

MSC Income Fund's total investment expenses, after waivers, increased by 2.5% year-on-year, amounting to $16.8 million. Notably, this uptick was linked to an increase in interest expenses alongside management fees. Despite these expenses, the Fund honed its operational efficiency, reducing the operating expenses to assets ratio to 1.8%.

Dwayne L. Hyzak, CEO of MSC Income, commented on the Fund's operational results: “We are pleased with our performance in this challenging environment, bolstered by an improved lending landscape and strategic opportunities within our private loan investments. Our diversified portfolio and liquidity position provide a solid foundation toward achieving significant returns.”

Capital Structure and Investments

The MSC Income Fund's total assets as of March 31, 2026, were valued at approximately $1.41 billion, positioned against liabilities of about $690.4 million. With a net asset value of $719.5 million, the Fund reported a debt-to-equity ratio of 0.90x, indicating a healthy leverage position.

The Fund has also expanded its capital structure through the issuance of $150 million in unsecured notes, slated to mature in May 2029. This addition strengthens the Fund’s investment capabilities, allowing for greater flexibility in its operational strategies.

MSC Income has completed $54.8 million in private loan portfolio investments and $19.4 million in LMM follow-on investments. Given these figures, the total cost basis of the private loan portfolio increased by $17.4 million, underlining MSC’s active engagement in fostering growth in its investment landscapes.

Dividends

In terms of returns to shareholders, the Fund declared a quarterly dividend of $0.35 per share, complemented by a supplemental dividend of $0.01 per share for Q1 2026. This amounts to a total of $0.36 per share, reflecting MSC's commitment to providing shareholder value despite broader economic uncertainties.

Conclusion

In summary, MSC Income Fund has demonstrated robust financial results for Q1 2026, with increases in net income and strategic expansions in its investment portfolio. The management remains optimistic about the future, aiming to leverage both existing assets and new opportunities for growth in a complex economic environment.

Investors and stakeholders are encouraged to stay updated by participating in the upcoming conference call scheduled for May 8, 2026, where further insights and discussions surrounding these results will be provided.