MSDL

Morgan Stanley Direct Lending Fund ( MSDL ) Q3 2026 Earnings Call November 6, 2026 10:00 AM EST Company Participants Sanna Johnson - Head of Investor Relations Michael Occi - CEO & Interested Director Jeffrey Day - Co-President David Pessah - Chief Financial Officer Rebecca Shaoul - Managing Director Conference Call Participants Finian O'Shea - Wells Fargo Securities, LLC, Research Division Heli Sheth - Raymond James & Associates, Inc., Research Division Paul Johnson - Keefe, Bruyette, & Woods, Inc., Research Division Melissa Wedel - UBS Investment Bank, Research Division Kenneth Lee - RBC Capital Markets, Research Division Presentation Operator Good day, and welcome to the Morgan Stanley Direct Lending Third Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference call is being recorded.

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Direct Lending Fund (NYSE: MSDL) (“MSDL” or the “Company”), a business development company externally managed by MS Capital Partners Adviser Inc. (the “Adviser”), today announced its financial results for the third quarter ended September 30, 2026. QUARTERLY HIGHLIGHTS Net investment income of $40.3 million, or $0.48 per share, as compared to $38.2 million, or $0.45 per share, for the quarter ended June 30, 2026; Net asset value of $18.76 per share, as.

Five major BDCs—Blue Owl Technology Finance Corp., FS KKR Capital Corp, Morgan Stanley Direct Lending Fund, Blue Owl Capital Corporation, and Oaktree Specialty Lending Corporation—trade at steep discounts to NAV, implying extreme loan losses not reflected in credit performance. Current market prices require annualized loan losses far exceeding historical peaks, despite portfolios of senior secured, diversified loans and low non-accruals. Buybacks at deep discounts signal management confidence in loan valuations, with OTF and FSK notably active in repurchasing shares.

We take a look at this income market sell-off and review some of the key strategies investors can use to take the most advantage of it. Relying on static buy-under targets is ineffective and potentially dangerous during both systemic and idiosyncratic drawdowns. Effective risk management requires scenario analysis, diversification, and an 'All Weather' allocation approach rather than single-outcome bets.

Morgan Stanley Direct Lending trades at a 32% discount to NAV, reflecting sector-wide pressures and a deteriorating credit book. I maintain a Hold rating: non-accruals have risen to 2.9% of cost, NII per share and NAV have declined, and dividend coverage is now just 1.00×. MSDL's liquidity is strong, leverage is moderate at 1.21×, and the Capstone JV offers incremental NII, but credit stability remains unproven.

NEW YORK--(BUSINESS WIRE)--Morgan Stanley Direct Lending Fund (NYSE: MSDL) ("MSDL”), a business development company externally managed by MS Capital Partners Adviser Inc., today announced it will release its financial results for the third quarter ended September 30, 2026, on Thursday, November 5, 2026, after the market closes. MSDL will host a conference call at 10:00 am ET on Friday, November 6, 2026, to review its financial results and conduct a question-and-answer session. Conference Call I.

Morgan Stanley Direct Lending (MSDL) trades at a 0.75x P/NAV and yields more than 12%. But the BDC faces persistent portfolio and earnings headwinds. A recent joint venture failed to drive investment income growth, with Q2 net investment income declining to $0.45 and portfolio value shrinking. Rising non-accruals (2.9%), declining NAV, and tight dividend coverage signal deteriorating credit quality and heightened risk of another dividend cut.

Morgan Stanley Direct Lending Fund (MSDL) Q2 2026 Earnings Call Transcript

Investors need to pay close attention to MSDL stock based on the movements in the options market lately.

Morgan Stanley Direct Lending Fund (MSDL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.