Kayne Anderson Energy Infrastructure Fund Announces Distribution of $0.08 Per Share for February 2025
Rhea-AI Summary
Kayne Anderson Energy Infrastructure Fund (NYSE: KYN) has announced its monthly distribution of $0.08 per share for February 2025, payable to common stockholders on February 28, 2025. The company maintains its commitment to monthly distributions, with the next distribution announcement expected in early March.
The distribution comes with an estimated 75% return of capital, though the final tax characterization won't be determined until after fiscal 2025. KYN operates as a non-diversified, closed-end management investment company, focusing on providing high after-tax returns with an emphasis on stockholder distributions. The fund maintains a strategic investment approach, allocating at least 80% of its total assets in Energy Infrastructure Companies securities.
Positive
- Consistent monthly distribution maintained at $0.08 per share
- 75% of distribution estimated as return of capital, which may have tax advantages for investors
Negative
- None.
Insights
The announced
Distribution Analysis:
- The payment represents a consistent monthly income stream, reflecting KYN's strategy as a closed-end fund focused on energy infrastructure
- The high
75% return of capital component is significant - this means most of the distribution isn't coming from earnings or realized gains, but rather from investors' capital - Return of capital distributions can be tax-advantaged in the short term as they reduce cost basis rather than being immediately taxable, but they also indicate the fund may be paying out more than it's earning
Strategic Context:
- Energy infrastructure companies typically generate stable cash flows through long-term contracts, supporting consistent distributions
- The monthly distribution schedule, versus quarterly, can be attractive for income-oriented investors seeking regular cash flow
- The distribution structure aligns with the fund's objective of providing high after-tax returns with an emphasis on cash distributions
While the consistent distribution policy is positive for income-focused investors, the high return of capital component warrants monitoring, as it could impact the fund's long-term sustainability if not supported by underlying portfolio performance.
HOUSTON, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) announced today a monthly distribution of
As previously announced, the Company plans to declare distributions on a monthly basis, with the next distribution expected to be declared in early March. Payment of future distributions is subject to the approval of the Company’s Board of Directors, as well as meeting the covenants on the Company’s debt agreements and the terms of its preferred stock.
| Record Date / Ex-Date | Payment Date | Distribution Amount | Return of Capital Estimate | |
| 2/14/25 | 2/28/25 | |||
(1) This estimate is based on the Company’s anticipated earnings and profits. The final determination of the tax character of distributions will not be determinable until after the end of fiscal 2025 and may differ substantially from this preliminary information.
Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) is a non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended, whose common stock is traded on the NYSE. The Company’s investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. KYN intends to achieve this objective by investing at least
The Company pays cash distributions to common stockholders at a rate that may be adjusted from time to time. Distribution amounts are not guaranteed and may vary depending on a number of factors, including changes in portfolio holdings and market conditions.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer or sale is not permitted. Nothing contained in this press release is intended to recommend any investment policy or investment strategy or consider any investor’s specific objectives or circumstances. Before investing, please consult with your investment, tax, or legal adviser regarding your individual circumstances.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This communication contains statements reflecting assumptions, expectations, projections, intentions, or beliefs about future events. These and other statements not relating strictly to historical or current facts constitute forward-looking statements as defined under the U.S. federal securities laws. Forward-looking statements involve a variety of risks and uncertainties. These risks include but are not limited to changes in economic and political conditions; regulatory and legal changes; energy industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in detail in the Company’s filings with the SEC, available at www.kaynefunds.com or www.sec.gov. Actual events could differ materially from these statements or our present expectations or projections. You should not place undue reliance on these forward-looking statements, which speak only as of the date they are made. Kayne Anderson undertakes no obligation to publicly update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.
Contact investor relations at 877-657-3863 or cef@kayneanderson.com.
FAQ
What is KYN's February 2025 distribution amount and payment date?
What percentage of KYN's February 2025 distribution is estimated as return of capital?
What is KYN's minimum investment allocation in Energy Infrastructure Companies?
When will KYN announce its next distribution?
