(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) announced today its quarterly distribution of $0.31 per share for the quarter ended February 28, 2011, representing an increase of 3.3% from the prior quarter’s distribution of $0.30 per share. The Company also announced today its unaudited net asset value (NAV) of $225 million or $21.88 per share as of February 28, 2011, representing an increase of $1.32 per share (6.4%) from the Company’s NAV as of November 30, 2010.
The distribution will be payable on April 28, 2011 to common stockholders of record on April 15, 2011, with an ex-dividend date of April 13, 2011. It is anticipated that a portion of this distribution will be treated as a return of capital for tax purposes. The final determination of such amount will be made in early 2012 when the Company can determine its earnings and profits. The final tax status of the distribution may differ substantially from this preliminary information.
“We are pleased to increase our distribution this quarter by $0.01 per share to $0.31 per share,” said Kevin McCarthy, Chairman, CEO and President. “This increase was the result of higher distributions received from our portfolio of public MLPs and International Resource Partners LP (“IRP”). While a significant portion of the distributions received from Direct Fuels Partners, L.P. and VantaCore Partners LP were in the form of additional partnership units, we believe that the cash component of these distributions will increase substantially over the next twelve months. Further, we expect that the sale of IRP will close late in the second quarter or early in the third quarter. We expect to receive proceeds at closing, after withholding the escrow amount and appropriate taxes, of approximately $75 million. We hope to redeploy a significant amount of the after-tax proceeds into similarly structured transactions for private midstream companies, but we do not have any specific transactions identified. In the meantime, over the three-month period following the closing of the IRP transaction, we intend to reinvest those proceeds in a combination of public MLPs and quoted debt securities. We expect that such public MLP and quoted debt investments will support a dividend in the $0.33 to $0.34 per quarter range. Actual dividends will be determined once the proceeds are fully invested and must be approved by our board of directors.”