Fourth Quarter 2025 Net Investment Income of $0.28 Per Share
Fourth Quarter 2025 Adjusted Net Investment Income(1) of $0.34 Per Share
Fourth Quarter 2025 Adjusted Net Investment Income Before Taxes(2) of $0.37 Per Share
Net Asset Value of $15.85 Per Share
HOUSTON, Feb. 26, 2026 /PRNewswire/ -- MSC Income Fund, Inc. $(MSIF)$ ("MSC Income" or the "Fund") is pleased to announce its financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Highlights
-- Net investment income ("NII") of $13.1 million, or $0.28 per share,
including the impact of the capital gains incentive fee(3) of $2.8
million, or $0.06 per share, and excise tax and NII related income taxes
of $1.3 million, or $0.03 per share
-- NII excluding the impact of the capital gains incentive fee,(3) or
adjusted net investment income ("ANII"),(1) of $15.9 million, or $0.34
per share
-- ANII excluding the impact of excise tax and NII related income taxes, or
ANII before taxes,(2) of $17.2 million, or $0.37 per share
-- Total investment income of $34.9 million
-- Net increase in net assets resulting from operations of $30.0 million, or
$0.64 per share
-- Return on equity(4) of 16.3% on an annualized basis
-- Net asset value of $15.85 per share as of December 31, 2025, representing
an increase of $0.31 per share, or 2.0%, compared to $15.54 per share as
of September 30, 2025
-- Declared a regular quarterly dividend of $0.35 per share and a
supplemental dividend of $0.01 per share, both payable in the first
quarter of 2026, resulting in total dividends declared in the fourth
quarter of 2025 of $0.36 per share
-- Completed $100.9 million in total private loan portfolio investments,
which after aggregate repayments, return of invested equity capital and a
decrease in cost basis due to realized losses resulted in a net increase
of $57.1 million in the total cost basis of the private loan investment
portfolio
-- Completed $23.0 million in total lower middle market ("LMM") portfolio
follow-on investments, which after aggregate repayments, return of
invested equity capital and a decrease in cost basis due to realized
losses resulted in a net increase of $14.9 million in the total cost
basis of the LMM investment portfolio
Full Year 2025 Highlights
-- NII of $61.8 million, or $1.33 per share, including the impact of the
capital gains incentive fee(3) of $2.8 million, or $0.06 per share, and
excise tax and NII related income taxes of $3.8 million, or $0.08 per
share
-- NII excluding the impact of the capital gains incentive fee,(3) or ANII,
(1) of $64.5 million, or $1.39 per share
-- ANII excluding the impact of excise tax and NII related income taxes, or
ANII before taxes,(2) of $68.3 million, or $1.47 per share
-- Total investment income of $139.2 million
-- Net increase in net assets resulting from operations of $88.7 million, or
$1.91 per share
-- Return on equity(4) of 12.5%
-- Net asset value of $15.85 per share as of December 31, 2025, representing
an increase of $0.32 per share, or 2.1%, compared to $15.53 per share as
of December 31, 2024
-- Declared regular quarterly dividends totaling $1.40 per share and
supplemental dividends totaling $0.04 per share, resulting in total
dividends declared of $1.44 per share
-- Completed $357.1 million in total private loan portfolio investments,
which after aggregate repayments and sales of debt investments, return of
invested equity capital and a decrease in cost basis due to realized
losses resulted in a net increase of $109.6 million in the total cost
basis of the private loan investment portfolio
-- Completed $53.5 million in total LMM portfolio follow-on investments,
which after aggregate repayments, return of invested equity capital and a
decrease in cost basis due to realized losses resulted in a net increase
of $27.1 million in the total cost basis of the LMM investment portfolio
-- Further diversified the Fund's capital structure and enhanced its
liquidity position by (i) amending the Corporate Facility to increase
total commitments to $245.0 million (from $165.0 million), increase the
accordion feature to up to a total of $300.0 million and expand and
diversify the lender group to seven participants and (ii) amending
the SPV Facility to decrease the interest rate to the applicable Secured
Overnight Financing Rate ("SOFR") plus 2.20% (from 3.00%), extend the
revolving period through February 2029 and extend the final maturity date
to February 2030, with the Corporate Facility and SPV Facility each
defined in the Liquidity and Capital Resources section below
-- Entered into an amended advisory agreement effective upon the listing of
the Fund's common stock on the New York Stock Exchange ("NYSE") in
January 2025 (the "MSC Income Listing") to, among other things, (i)
reduce the annual base management fee payable by the Fund to 1.5% of its
average total assets (with additional future contractual reductions based
upon changes to the composition of the Fund's investment portfolio), (ii)
reduce to 17.5% the subordinated incentive fee on income payable by the
Fund, subject to a 50% / 50% catch-up feature, (iii) reduce to 17.5% and
reset the incentive fee on cumulative net realized capital gains payable
by the Fund and (iv) establish a cap on the amount of expenses payable by
the Fund relating to certain internal administrative services, which
varies based on the value of the Fund's total assets
In commenting on the Fund's operating results for the fourth quarter and full year of 2025, Dwayne L. Hyzak, MSC Income's Chief Executive Officer, stated, "We are very pleased with the Fund's performance in the fourth quarter, which resulted in an annualized return on equity of 16.3%, favorable adjusted net investment income per share and a significant net increase in the fair value of the Fund's investments, including the benefits of net realized gains in both the Fund's private loan and lower middle market investments, which resulted in a significant increase in net asset value per share. The Fund also produced favorable investment activity in the fourth quarter which generated meaningful growth of the Fund's investment portfolio."
Mr. Hyzak continued, "After the Fund's positive performance in the first three quarters of 2025, the Fund's strong performance in the fourth quarter resulted in a return on equity of 12.5% for the full year. Based upon the quality of the Fund's existing investment portfolio, combined with the Fund's existing liquidity and expanded regulatory leverage capacity which became effective for the Fund at the end of January 2026, we remain excited about our future expectations for the Fund."
Fourth Quarter 2025 Operating Results
The following table provides a summary of the Fund's operating results for the fourth quarter of 2025:
Three Months Ended December 31,
-------------------------------------------------------------------------
Change
2025 2024 Change ($) (%)
------------------- ------------------- --------------------- --------
(dollars in thousands, except per share amounts)
Interest
income $ 28,860 $ 29,662 $ (802) (3) %
Dividend
income 5,308 2,731 2,577 94 %
Fee income 748 1,062 (314) (30) %
------------------- ------------------- --------------------- --------
Total
investment
income $ 34,916 $ 33,455 $ 1,461 4 %
Net
investment
income
(5) $ 13,122 $ 13,557 $ (435) (3) %
Net
investment
income per
share (5) $ 0.28 $ 0.34 $ (0.06) (18) %
Adjusted
net
investment
income
(1) $ 15,885 $ 13,557 $ 2,328 17 %
Adjusted
net
investment
income per
share (1) $ 0.34 $ 0.34 $ -- -- %
Adjusted
net
investment
income
before
taxes (2) $ 17,162 $ 14,227 $ 2,935 21 %
Adjusted
net
investment
income
before
taxes per
share (2) $ 0.37 $ 0.35 $ 0.02 6 %
Net
increase
in net
assets
resulting
from
operations $ 30,035 $ 20,462 $ 9,573 47 %
Net
increase
in net
assets
resulting
from
operations
per share $ 0.64 $ 0.51 $ 0.13 25 %
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February 26, 2026 16:15 ET (21:15 GMT)
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