Announces Federal Tax Treatment of 2025 Dividends
Announces Fourth Quarter and Full Year 2025 Earnings Release and Conference Call Schedule
HOUSTON, Jan. 20, 2026 /PRNewswire/ — MSC Income Fund, Inc. (NYSE:MSIF) (“MSC Income” or the “Fund”) is pleased to announce its preliminary operating results for the fourth quarter of 2025, the federal tax treatment of its 2025 dividends and its fourth quarter and full year 2025 earnings release and conference call schedule.
In commenting on the Fund’s preliminary operating results for the fourth quarter 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. The Fund’s preliminary operating results highlight that the fourth quarter performance resulted in strong operating results, including favorable adjusted net investment income per share and a significant net increase in the fair value of the Fund’s investments, including the benefit of material net realized gains in both the Fund’s private loan and lower middle market investment portfolios, which resulted in a significant increase in net asset value per share. The Fund’s fourth quarter resulted in an estimated return on equity of over 16% for the quarter, reflecting the overall strength of the quarter. And lastly, the favorable investment activity in the quarter generated meaningful growth of the Fund’s investment portfolio. We are pleased with the Fund’s fourth quarter and full year 2025 results and look forward to sharing the full details of the results in late February.”
Preliminary Estimates of Fourth Quarter 2025 Results
MSC Income’s preliminary estimate of fourth quarter 2025 net investment income (“NII”) is $0.26 to $0.30 per share, including an estimated capital gains incentive fee of $0.06 per share(1). MSC Income’s preliminary estimate of adjusted net investment income (“ANII”)(2), which is NII excluding the impact of the capital gains incentive fee, is $0.32 to $0.36 per share and ANII before taxes(3), which is NII before taxes excluding the impact of the capital gains incentive fee, is $0.35 to $0.39 per share.
MSC Income’s preliminary estimate of net asset value (“NAV”) per share as of December 31, 2025 is $15.81 to $15.89, representing an increase of $0.27 to $0.35 per share, or 1.8% to 2.3%, from the NAV per share of $15.54 as of September 30, 2025. The estimated NAV per share increase is primarily due to the net fair value increase of the Fund’s investments and the accretive impact of common stock repurchases, partially offset by the net tax provision for the quarter and the dividends declared in excess of NII in the quarter. The net fair value increase of the Fund’s investments is primarily the result of net fair value increases of the investments in the lower middle market (“LMM”) and private loan investment portfolios, partially offset by the fair value decrease of the residual middle market investment portfolio.
As a result of MSC Income’s preliminary estimates of NII, the net changes in the fair value of its investment portfolio and the net tax provision as noted above, MSC Income estimates that it generated a return on equity of over 16% for the fourth quarter of 2025 on an annualized basis and a return on equity of over 12% for the full year of 2025.(4)
MSC Income preliminarily estimates that investments on non-accrual status comprised 1.0% of the total investment portfolio at fair value and 3.9% at cost as of December 31, 2025.
Investment Portfolio Activity
The Fund’s fourth quarter 2025 operating activities include the following investment activity in the private loan investment strategy and LMM investment portfolio:
- $100.9 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital associated with the exit of three private loan portfolio investments and a decrease in cost basis due to realized losses on two private loan portfolio investments resulted in a net increase of $57.1 million in the total cost basis of the private loan investment portfolio; and
- $23.0 million in total LMM portfolio follow-on investments, which after aggregate repayments and return of invested equity capital, including a decrease in cost basis associated with the exit of a LMM portfolio investment, resulted in a net increase of $14.9 million in the total cost basis of the LMM investment portfolio.
Federal Tax Treatment of 2025 Dividends
MSC Income has posted information regarding the U.S. federal income tax characteristics of its 2025 dividends on its website under “2025 Form 1099 Information” (https://www.mscincomefund.com/investors/listed-securities-information/tax-information).(5) MSC Income’s total dividends for 2025 were $1.44 per share, with approximately 81% of such dividends taxed as ordinary income, approximately 18% taxed as qualified dividends and approximately 1% taxed as long-term capital gains. Long-term capital gains and qualified dividends paid to non-corporate taxpayers (including individuals) qualify for favorable tax treatment under the Internal Revenue Code (“IRC”) and, for 2025, will …