XAI Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.225 per Share
Rhea-AI Summary
XAI Floating Rate & Alternative Income Trust (NYSE: XFLT) declared a regular monthly distribution of $0.225 per common share, unchanged from the prior month. The distribution is payable on September 1, 2026, to shareholders of record as of and including the ex-dividend date, August 17, 2026.
According to the Trust, common share distributions may consist of net investment income, capital gains and/or return of capital, with final tax character reported on Form 1099 after year-end 2026. As of July 30, 2026, the Trust entered into an interim agreement for Rockford Tower Asset Management, a subsidiary of King Street Capital Management, to begin serving as sub-adviser.
Positive
- Monthly distribution declared at $0.225 per common share, payable September 1, 2026
- Distribution level unchanged from prior month at $0.225 per common share
Negative
- None.
News Explained
The declared payment may include return of capital, reducing tax basis, and future distributions remain subject to solvency, covenant, and board-declaration conditions.
The declared
A return of capital is a partial return of a common shareholder’s invested amount; the release says it generally reduces the shareholder’s tax basis, which can affect the gain or loss recognized on a later sale.
The distribution’s specific tax character will be reported on Form 1099 after the end of
AI-generated analysis. How Rhea-AI works. Not financial advice.
CHICAGO, Aug. 03, 2026 (GLOBE NEWSWIRE) -- XAI Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of
As of July 30, 2026, The Trust entered into an interim agreement for Rockford Tower Asset Management, L.L.C., a wholly owned subsidiary of King Street Capital Management, L.P., to begin serving as the sub-adviser.
The following dates apply to the declaration:
| Ex-Dividend Date | August 17, 2026 |
| Record Date | August 17, 2026 |
| Payable Date | September 1, 2026 |
| Amount | |
| Change from Previous Month | No Change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2026 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payable Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on consideration of a number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. The listed closed-end funds, the XAI Floating Rate & Alternative Income Trust and XAI Madison Equity Premium Income Fund both trade on the New York Stock Exchange and the interval fund, XAI CLO & Income Opportunities Fund is available via direct subscription and through select broker/dealers and wealth management platforms.
In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, and fund management.
XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Rockford Tower Asset Management
Rockford Tower Asset Management, L.L.C. is a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”) and an affiliate of Rockford Tower Capital Management (“Rockford Tower”). Rockford Tower, King Street’s dedicated CLO, CBO and SMA platform, was formed in 2017. Rockford Tower has over
About King Street Capital Management
King Street is a global alternative investment firm founded in 1995 that manages
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
| NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
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Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
