Kayne Anderson Energy Infrastructure Fund Announces Distribution of $0.24 Per Share for Q3 2024

Rhea-AI Summary

Kayne Anderson Energy Infrastructure Fund, Inc. (NYSE: KYN) has announced a quarterly distribution of $0.24 per share for the fiscal quarter ended August 31, 2024. This represents a $0.02 increase (9%) over the previous quarter's distribution. The distribution is payable to common stockholders on October 7, 2024.

Jim Baker, KYN's Chairman, President and CEO, expressed satisfaction with the company's fiscal 2024 performance and emphasized the importance of distributions to investors. The company aims to steadily increase KYN's distribution over time, supported by its operating results.

KYN is a non-diversified, closed-end management investment company that invests at least 80% of its total assets in securities of Energy Infrastructure Companies. The company's objective is to provide a high after-tax total return with an emphasis on cash distributions to stockholders.

Positive

• Quarterly distribution increased by 9% to $0.24 per share
• Management expresses satisfaction with fiscal 2024 performance
• Company aims to steadily increase distributions over time

Negative

• None.

Insights

Financial Analyst

The 9% increase in Kayne Anderson Energy Infrastructure Fund's quarterly distribution to $0.24 per share is a positive signal for investors. This bump from $0.22 to $0.24 reflects the fund's strong performance in fiscal 2024 and management's confidence in sustaining higher payouts. For income-focused investors, this boost is particularly appealing in the current market environment.

However, it's important to note that the distribution's tax character isn't finalized, with a 0% return of capital estimate. This could change, potentially affecting the tax efficiency of the distribution. Investors should monitor this aspect closely as it impacts the after-tax returns, especially given KYN's emphasis on high after-tax total returns.

Energy Sector Analyst

KYN's distribution increase suggests a positive outlook for the energy infrastructure sector. With the fund investing at least 80% of its assets in Energy Infrastructure Companies, this raise implies strength in underlying assets such as pipelines, storage facilities and processing plants. The energy transition and ongoing global energy security concerns are likely contributing to robust cash flows in this sector.

However, investors should be cautious. Energy markets can be volatile and while the distribution increase is encouraging, it's essential to assess the sustainability of these payouts in light of potential market shifts or regulatory changes affecting the energy infrastructure landscape.

HOUSTON, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) announced today a quarterly distribution of $0.24 per share for the fiscal quarter ended August 31, 2024. This distribution, which is an increase of $0.02 per share over the prior quarter’s distribution, is payable to common stockholders on October 7, 2024 (as outlined in the table below).

“We are pleased with KYN’s performance thus far in fiscal 2024 and we are excited to announce this 9% increase to the Company’s distribution,” stated Jim Baker, KYN’s Chairman, President and CEO. “We understand how important distributions are to the Company’s investors, and our goal is to steadily increase KYN’s distribution over time as supported by the Company’s operating results,” continued Mr. Baker.

Record Date / Ex-Date	Payment Date	Distribution Amount	Return of Capital Estimate(1)
9/30/24	10/7/24	$0.24	0%

(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 2024 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 80% of its total assets in securities of Energy Infrastructure Companies. See Glossary of Key Terms in the Company’s most recent quarterly report for a description of these investment categories and the meaning of capitalized terms.

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 the new quarterly distribution amount for Kayne Anderson Energy Infrastructure Fund (KYN)?

Kayne Anderson Energy Infrastructure Fund (KYN) announced a quarterly distribution of $0.24 per share for the fiscal quarter ended August 31, 2024.

When is the payment date for KYN's latest quarterly distribution?

The payment date for KYN's latest quarterly distribution is October 7, 2024.

How much did KYN increase its quarterly distribution?

KYN increased its quarterly distribution by $0.02 per share, which represents a 9% increase over the previous quarter's distribution.

What is the investment objective of Kayne Anderson Energy Infrastructure Fund (KYN)?

KYN's investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders.