KYN Kayne Anderson Energy Infrastructure Fund Inc

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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FORM N-CSR

CERTIFIED SHAREHOLDER REPORT
OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21593

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KAYNE ANDERSON ENERGY
INFRASTRUCTURE FUND, INC.

(Exact name of registrant as specified in charter)

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Michael J. O’Neil
KA Fund Advisors, LLC, 717 Texas Avenue, Suite 2200, Houston, Texas 77002
(Name and address of agent for service)

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Registrant’s telephone number, including area code: (713) 493-2020

Date of fiscal year end: November 30, 2024

Date of reporting period: May 31, 2024

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1.       Reports to Stockholders.

The report of Kayne Anderson Energy Infrastructure Fund, Inc. (the “Registrant”) to stockholders for the semi-annual period ended May 31, 2024 is attached below.

CONTENTS

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:    This report of Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company”) contains “forward-looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from the Company’s historical experience and its present expectations or projections indicated in any forward-looking statements. These risks include, but are not limited to, changes in economic and political conditions; regulatory and legal changes; energy infrastructure company industry risk; leverage risk; valuation risk; interest rate risk; tax risk; and other risks discussed in the Company’s filings with the Securities and Exchange Commission (“SEC”). You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements made herein. There is no assurance that the Company’s investment objectives will be attained.

All investments in securities involve risks, including the possible loss of principal. The value of an investment in the Company could be volatile, and you could suffer losses of some or a substantial portion of the amount invested. The Company’s concentration of investments in energy infrastructure companies subjects it to the risks of midstream, renewable infrastructure and utility entities and the energy sector, including the risks of declines in energy and commodity prices, decreases in energy demand, adverse weather conditions, natural or other disasters, changes in government regulation, and changes in tax laws. Leverage creates risks that may adversely affect return, including the likelihood of greater volatility of net asset value and market price of common shares and fluctuations in distribution rates, which increases a stockholder’s risk of loss.

Performance data quoted in this report represent past performance and are for the stated time period only. Past performance is not a guarantee of future results. Current performance may be lower or higher than that shown based on market fluctuations from the end of the reported period.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
LETTER TO STOCKHOLDERS

June 25, 2024

Dear Fellow Stockholders,

This quarterly update discusses the Company’s year-to-date performance, the energy infrastructure markets, and KYN’s portfolio. We remain excited about the prospects for the Company’s investments and are very pleased with KYN’s performance during the first six months of fiscal 2024. As we will discuss in this letter, the midstream industry’s outlook for the next five years is very constructive.

As it relates to fiscal Q2:

•   KYN’s Net Asset Return was 11.1%;1

•   KYN outpaced the Alerian Midstream Energy Index (AMNA) by 200 basis points (11.1% vs. 9.1%);2

•   KYN’s performance exceeded the broad energy sector (as measured by the XLE) by 200 basis points (11.1% vs. 9.1%);3 and

•   KYN maintained conservative leverage levels with ample downside cushion.4

Performance

KYN’s midstream investments generated strong returns during the quarter. It was a reasonably quiet quarter from an operational standpoint — midstream companies are performing in-line with expectations and investors are embracing a “boring is good” mantra for the sector. In addition, the market continues to reward companies that are executing on investor-focused return of capital strategies (i.e., increasing dividends and share buybacks). Western Midstream (WES) and Targa Resources (TRGP) each took tangible steps to refine their strategies during the quarter, and both were top performers in fiscal Q2. It is also worth noting that there has been growing interest in how the midstream sector benefits from an improving natural gas backdrop, with expected increases in natural gas demand from reshoring industrial activities and data center development (fueled by AI). KYN’s gas-weighted midstream holdings, including Williams Companies (WMB) and Kinder Morgan (KMI), are well positioned for this theme and were also among the top performers. As discussed in prior communications, we expect that the vast majority of KYN’s portfolio will be allocated to midstream companies, with the remainder allocated to other energy companies, utilities, and renewable infrastructure companies.

KYN’s Net Asset Return1 has been very strong on a fiscal year-to-date basis (up 15.8%) with the vast majority of the Company’s investments performing well. KYN’s Market Return, which is based on stock price performance rather than net asset value, is up 21.1% on a fiscal year-to-date basis.5 This is better than our Net Asset Return as our stock price traded at a 14.7% discount to NAV at fiscal quarter-end compared to a 18.5% discount at the beginning of the fiscal year. We are encouraged with the progress made thus far in fiscal 2024, but do not believe this “mid-teens” discount is appropriate given KYN’s favorable attributes. We continue to believe that consistent performance, a substantial return of cash to stockholders (through attractive quarterly distributions), and strategic actions that are accretive to our stockholders will be rewarded over time in the form of a narrowing discount.

Market Review

The broader financial markets had a strong quarter, with the S&P 500 and the NASDAQ both up 4%. AI continues to capture the market’s attention, and there has been an increasing focus on what this trend means for power and natural gas demand. Forecasts for incremental electricity needs for AI and data center load imply significant increases in gas demand, as renewable energy solutions alone are not sufficient to meet this incremental demand as well as the “24 hours a day, 7 days a week” needs of these facilities.

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Note: Footnotes can be found on page 5.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
LETTER TO STOCKHOLDERS

Separately, there has been persistent volatility in interest rates as the market reacts to real-time economic data and inflation trends, while trying to assess the Federal Reserve’s next steps. Inflation has moderated but is still trending above the Fed’s target levels. The outlook for the economy, meanwhile, remains unclear and recent data paints a mixed picture. There is growing concern around consumer optimism and middle-to-lower income spending patterns, but that is in contrast with continued strong employment and improving PMIs. The Fed has remained in a “holding pattern” against this backdrop while waiting on more convincing data points before any potential rate cuts.

Midstream has been the best performing energy subsector over the last twelve months and has outperformed the major equity market indices over this time period. This performance is particularly notable given commodity price and interest rate volatility since last summer. Operating results have been consistent, and investors are reacting positively to midstream companies’ return of capital strategies as increased dividends and share buybacks drive equity prices higher.

In addition, the sector has de-risked its investment profile. Balance sheets are in a very strong position as companies have continued to reduce leverage ratios — benefitting from the combination of modest growth and excess free cash flow (i.e., free cash flow after dividends). Importantly, domestic production volumes and global demand growth — not commodity prices — are what drive cash flows for KYN’s midstream investments. Steady cash flow growth coupled with strong credit metrics and minimal (if any) external financing needs results in a very attractive investment profile for midstream equities.

The wave of M&A activity in the midstream sector continued during Q2 and we would highlight a few noteworthy transactions. First, Kinetik Holdings (KNTK) announced the sale of its interest in the Gulf Coast Express natural gas pipeline and the acquisition of Durango Midstream. In addition, Phillips 66 (PSX) announced the acquisition of Pinnacle Midstream and Energy Transfer (ET) announced the acquisition of WTG Midstream. These deals are consistent with the M&A trends we have seen over the last couple of years — monetizing non-core assets (with the proceeds used to reduce leverage or reinvest in assets more strategic to the business) while executing on “bolt on” acquisitions that strengthen core operating areas. Overall, we expect an increasingly active M&A market (particularly for asset deals) through the second half of the year.

In early June, OPEC+ extended group cuts through 2025 and announced plans to gradually phase out the latest voluntary cuts starting in October. This announcement was relatively in-line with expectations, but it does highlight the potential for those supply additions to weigh on 2025 balances. Slight weakness in oil prices followed this announcement, but the overall backdrop remains constructive as long as OPEC+ remains coordinated and incentivized to support prices (a reasonable assumption in our view). U.S. oil and gas production continues to trend as expected, with more modest growth in 2024 relative to 2023. Despite weakness in refining margins during the quarter, global oil demand has also trended in-line with expectations, and global oil demand was up 1.4 million b/d in Q2 on a year-over-year basis.

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Note: Footnotes can be found on page 5.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
LETTER TO STOCKHOLDERS

Domestic natural gas prices remain challenged, but with prices back above $2.00/mmbtu, we appear to be through the trough. Natural gas prices have recently recovered as a result of stronger power and liquefied natural gas (“LNG”) demand, combined with the impact of producer curtailments and activity reductions (which has resulted in a year-to-date reduction in production levels). Meanwhile, the setup for 2025 continues to look constructive as the market works off excess supply in the short-term. The domestic gas market is also positioned to benefit from incremental LNG demand as new facilities come online in the next two to three years, as well as incremental domestic demand to power data centers.

Portfolio

KYN’s portfolio is comprised of 27 investments (94% in publicly traded securities and 6% in privately held investments). Approximately 95% of the portfolio is invested in common equity with the remainder invested in convertible preferred equity. The overwhelming majority of KYN’s portfolio is invested in publicly traded midstream companies. The remainder is a mix of investments in other energy subsectors and privately held midstream companies. We remain overweight large-cap midstream companies with integrated suites of assets that we believe are well positioned to benefit from growing domestic production and increased exports. We are also well positioned to benefit from growing natural gas demand driven by the reshoring of industrial activities and buildout of additional data centers.

Distribution & Outlook

We announced a quarterly distribution of 22 cents per share in June, flat quarter-over-quarter and up 5% vs. fiscal Q2 2023.12 This represents an 8.9% distribution rate based on KYN’s stock price as of May 31st.13 We understand how important distributions are to our investors, and our goal is to steadily increase KYN’s distribution over time as supported by the Company’s operating results.

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Note: Footnotes can be found on page 5.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
LETTER TO STOCKHOLDERS

The strong performance seen in the second quarter for KYN’s portfolio investments was supported more by growing cash flows at these companies than by trading multiples trending higher (i.e., higher valuation levels). We still have conviction in mid-teens returns for the midstream sector without the benefit of multiple expansion. This expectation is, in our opinion, well supported by mid-single digit dividend growth and mid-single digit cash flow growth for our midstream investments. These metrics appear to be durable and underpin our bullish outlook for the next five years.

Notwithstanding this optimism, there are plenty of reasons to exercise caution — most notably an unsettled geopolitical backdrop stemming from factors including but not limited to (i) potential escalation to a more regional conflict in the Middle East, (ii) political turmoil in Europe, (iii) the ongoing Russia/Ukraine conflict, (iv) rising tensions in the South China Sea and (v) potential for volatility in the financial markets this fall as a result of the presidential election. However, we have conviction that the energy sector is well positioned to navigate this markedly uncertain backdrop, and our near-term conservative bias with respect to portfolio positioning and leverage takes these factors into account.

We believe KYN — with its flexible investment mandate, permanent capital base, and expertise providing capital solutions to both public and private companies — provides very attractive exposure to the North American energy infrastructure sector in an income-producing vehicle. The Company provides this exposure in an easy-to-own structure — daily liquidity via its NYSE listing, an attractive quarterly distribution, and the tax simplicity of a single Form 1099. Lastly, conservative leverage and active portfolio and risk management from an experienced portfolio management team set the stage for a successful 2024 and beyond.

We encourage investors to visit our website at kaynefunds.com for more information about the Company, including the commentary posted on the “Insights” page that discusses key industry trends and other noteworthy topics.

We appreciate your investment in KYN and look forward to executing on our investment objective of achieving high after-tax total returns. Please do not hesitate to contact us with any questions or comments.

Sincerely,

James C. Baker, Jr.
Chairman of the Board
President and Chief Executive Officer

For more information:
cef@kaynecapital.com // 877.657.3863

www.kaynefunds.com

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Note: Footnotes can be found on page 5.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
LETTER TO STOCKHOLDERS

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
PORTFOLIO SUMMARY
(UNAUDITED)

Portfolio of Long-Term Investments by Category

(1)   Includes ownership of common and preferred units.

(2)   Includes ownership of Plains All American Pipeline, L.P. (“PAA”), Plains AAP L.P. (“PAGP-AAP”) and Plains GP Holdings, L.P. (“PAGP”).

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

Company Overview

Kayne Anderson Energy Infrastructure Fund, Inc. (the “Company” or “KYN”) is a non-diversified, closed-end fund that commenced operations in September 2004. Our investment objective is to provide a high after-tax total return with an emphasis on making cash distributions to stockholders. We intend to achieve our investment objective by investing at least 80% of our total assets in the securities of Energy Infrastructure Companies. Please refer to the Glossary of Key Terms for the meaning of capitalized terms not otherwise defined herein.

As of May 31, 2024, we had total assets of $2.7 billion, net assets applicable to our common stockholders of $2.0 billion (net asset value of $11.61 per share), and 169.1 million shares of common stock outstanding.

Results of Operations — For the Three Months Ended May 31, 2024

Investment Income.    Investment income totaled $22.8 million for the quarter. We received $40.0 million of dividends and distributions. We estimated that $17.2 million of the dividends and distributions received were return of capital distributions and/or distribution in excess of cost basis.

Operating Expenses.    Operating expenses totaled $16.4 million, including $8.7 million of investment management fees (net of fee waivers), $5.0 million of interest expense, $1.7 million of preferred stock distributions and $1.0 million of other operating expenses.

Net Investment Income.    Our net investment income was $5.7 million and included a current tax expense of $0.3 million and a deferred tax expense of $0.4 million.

Net Realized Gains.    We had net realized gains of $116.4 million, consisting of realized gains from long term investments of $148.3 million, a current tax expense of $3.4 million and a deferred tax expense of $28.5 million.

Net Change in Unrealized Gains.    We had a net increase in our unrealized gains of $70.2 million. The net change consisted of an $89.9 million increase in unrealized gains on investments and a deferred tax expense of $19.7 million.

Net Increase in Net Assets Resulting from Operations.    As a result of the above, we had a net increase in net assets resulting from operations of $192.3 million.

Distributions to Common Stockholders

On June 18, 2024, KYN declared a quarterly distribution of $0.22 per common share for the second quarter, which was paid on July 8, 2024. Payment of future distributions is subject to the approval of KYN’s Board of Directors, as well as meeting the covenants of our debt agreements and terms of our preferred stock.

The Board of Directors considers several items in setting our distributions to common stockholders including net distributable income (as defined below), realized and unrealized gains and expected returns for portfolio investments.

Net distributable income (“NDI”) is the amount of income received by us from our portfolio investments less operating expenses, subject to certain adjustments as described below. NDI is not a financial measure under the accounting principles generally accepted in the United States of America (“GAAP”). Refer to the Reconciliation of NDI to GAAP section for a reconciliation of this measure to our results reported under GAAP.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

For the purposes of calculating NDI, income from portfolio investments includes (a) cash dividends and distributions, (b) paid-in-kind dividends received (i.e., stock dividends), (c) interest income from debt securities and (d) net premiums received from the sale of covered calls.

For the purposes of calculating NDI, operating expenses include (a) investment management fees paid to our investment adviser, (b) other expenses (mostly comprised of fees paid to other service providers), (c) interest expense and preferred stock distributions and (d) current and deferred income tax expense/benefit on net investment income/loss.

Net Distributable Income (NDI)
(amounts in millions, except for per share amounts)

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(1)      Adjusted NDI excludes distributions received from Atlantica Sustainable Infrastructure plc attributable to the first quarter of 2024 with an ex-dividend date of March 11, 2024 ($0.5 million) and includes dividends received from NextEra Energy, Inc. attributable to the second quarter of 2024 with an ex-dividend date of June 3, 2024 ($0.2 million).

Reconciliation of NDI to GAAP

The difference between distributions and other income from investments in the NDI calculation and total investment income as reported in our Statement of Operations is reconciled as follows:

•   A significant portion of the cash distributions received from our investments is characterized as return of capital. For GAAP purposes, return of capital distributions are excluded from investment income, whereas the NDI calculation includes the return of capital portion of such distributions.

•   GAAP recognizes distributions received from our investments that exceed the cost basis of our securities to be realized gains and are therefore excluded from investment income, whereas the NDI calculation includes these distributions.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
MANAGEMENT DISCUSSION
(UNAUDITED)

•   We may sell covered call option contracts to generate income or to reduce our ownership of certain securities that we hold. In some cases, we are able to repurchase these call option contracts at a price less than the call premium that we received, thereby generating a profit. The premium we receive from selling call options, less (i) the premium that we pay to repurchase such call option contracts and (ii) the amount by which the market price of an underlying security is above the strike price at the time a new call option is written (if any), is included in NDI. For GAAP purposes, premiums received from call option contracts sold are not included in investment income. See Note 2 — Significant Accounting Policies for the GAAP treatment of option contracts.

Liquidity and Capital Resources

At May 31, 2024, we had total leverage outstanding of $565 million, which represented 21% of total assets. Currently, we intend to utilize leverage in an amount that represents approximately 20% of our total assets. Total leverage was comprised of $25 million of borrowings under our unsecured term loan (the “Term Loan”), $387 million of senior unsecured notes (“Notes”) and $153 million of mandatory redeemable preferred stock (“MRP Shares”). As of May 31, 2024, we did not have any borrowings outstanding under our unsecured revolving credit facility (the “Credit Facility”) and we had $35 million of cash and cash equivalents. As of July 19, 2024, we had $21 million of borrowings outstanding under our Credit Facility, $25 million outstanding under our Term Loan and $1 million of cash and cash equivalents.

Our Credit Facility has a total commitment of $135 million and matures on February 20, 2025. The interest rate on borrowings under the Credit Facility may vary between the secured overnight financing rate (“SOFR”) plus 1.40% and SOFR plus 2.25%, depending on our asset coverage ratios. We pay a fee of 0.20% per annum on any unused amounts of the Credit Facility.

On May 22, 2024, we repaid $25 million of our $50 million Term Loan, which represented the floating rate portion of the Term Loan (interest rate of SOFR plus 1.40%). The remaining $25 million Term Loan matures on August 6, 2024, and the interest rate is fixed at a rate of 1.735%. We plan to utilize available commitments under our Credit Facility to refinance the Term Loan upon its maturity.

As of May 31, 2024, we had $387 million of Notes outstanding that mature between 2024 and 2034 and we had $153 million of MRP Shares outstanding that are subject to mandatory redemption between 2024 and 2032. On May 20, 2024, we issued $75 million of new Notes which were comprised of: (1) $35 million Series WW Notes (5.65% fixed interest rate; May 2031 maturity) and (2) $40 million Series XX Notes (5.79% fixed interest rate; May 2034 maturity). We expect to refinance upcoming 2024 Notes and MRP Shares maturities with borrowings under our Credit Facility.

At May 31, 2024, our asset coverage ratios under the Investment Company Act of 1940, as amended (“1940 Act”), were 614% for debt and 448% for total leverage (debt plus preferred stock). We target asset coverage ratios that give us the ability to withstand declines in the market value of the securities we hold before breaching the financial covenants in our leverage (we often refer to this as our “downside cushion”). At this time, we target asset coverage ratios that provide approximately 50% of downside cushion relative to our financial covenants. Our leverage targets are dependent on market conditions as well as certain other factors and may vary from time to time.

As of May 31, 2024, our total leverage consisted of 88% of fixed rate obligations and 12% of floating rate obligations. At such date, the weighted average interest/dividend rate on our total leverage was 4.62%.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
MAY 31, 2024
(amounts in 000’s)
(UNAUDITED)

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
MAY 31, 2024
(amounts in 000’s)
(UNAUDITED)

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(1)     Unless otherwise noted, equity investments are common units/common shares.

(2)     Refer to Glossary of Key Terms for definitions of Energy Company, Midstream Energy Company and Utility Company.

(3)     Foreign security.

(4)     Fair valued on a recurring basis using significant unobservable inputs (Level 3). See Notes 2 and 3 in Notes to Financial Statements.

(5)     The Company’s ability to sell this security is subject to certain legal or contractual restrictions. As of May 31, 2024, the aggregate value of restricted securities held by the Company was $159,124 (5.8% of total assets). See Note 7 — Restricted Securities.

(6)     MPLX LP (“MPLX”) Series A Convertible Preferred Units (“MPLX Convertible Preferred Units”) are convertible on a one-for-one basis into common units of MPLX and are senior to the common units in terms of liquidation preference and priority of distributions. See Note 3 — Fair Value.

(7)     Sentinel Midstream Highline JV Holdings LLC (“Sentinel Midstream”) is a privately-held company that operates energy infrastructure assets near the Texas and Louisiana Gulf Coast which are referred to as Enercoast Energy Infrastructure (“EEI”). The Company is the owner of Series A-2 units which represent a membership interest in Sentinel Midstream (“Sentinel-EEI Series A-2 Units”). The Sentinel-EEI Series A-2 Units are pari passu with Series A-1 Units, and are senior to other classes of common equity in terms of liquidation preference and priority of distributions. See Note 3 — Fair Value.

(8)     The Company believes that it is an affiliate of Sentinel Midstream and Streamline Innovations Holdings, Inc. (“Streamline”). See Note 5 — Agreements and Affiliations.

(9)     Security is non-income producing.

(10)   Streamline is a privately-held company. Streamline Series C Preferred Shares are convertible into common equity at any time at the Company’s option and are senior to common equity and Series A and Series B preferred shares in terms of liquidation preference and priority of distributions. Streamline Series C Preferred Shares are entitled to receive a quarterly dividend beginning on March 31, 2025, at an annual rate of 12.0%, which rate shall increase 2.0% each year thereafter to a maximum rate of 18.0%. Streamline Series C Preferred Shares are redeemable by Streamline at any time after March 31, 2025, at a price sufficient for the Company to achieve a 20.0% internal rate of return on its investment.

(11)   ADR — American Depositary Receipt.

(12)   The rate indicated is the yield as of May 31, 2024.

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
SCHEDULE OF INVESTMENTS
MAY 31, 2024
(amounts in 000’s)
(UNAUDITED)

At May 31, 2024, the Company’s geographic allocation was as follows:

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2024
(amounts in 000’s, except share and per share amounts)
(UNAUDITED)

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
STATEMENT OF OPERATIONS
(amounts in 000’s)
(UNAUDITED)

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS APPLICABLE TO COMMON STOCKHOLDERS
(amounts in 000’s, except share amounts)

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(1)     Distributions on the Company’s mandatory redeemable preferred stock (“MRP Shares”) are treated as an operating expense under GAAP and are included in the calculation of net investment income (loss). See Note 2 — Significant Accounting Policies.

(2)     The characterization of the distributions paid to common stockholders for the six months ended May 31, 2024, as either dividends (eligible to be treated as qualified dividend income) or distributions (return of capital) is based solely on the Company’s operating results during the period and does not reflect the expected results during the remainder of the fiscal year. The actual characterization of the common stock distributions made during the period will not be determinable until after the end of the fiscal year when the Company can determine its earnings and profits and may differ from this preliminary estimate.

(3)     Represents offering costs incurred in connection with the merger of Kayne Anderson NextGen Energy & Infrastructure, Inc.

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED MAY 31, 2024
(amounts in 000’s)
(UNAUDITED)

____________

Supplemental disclosure of cash flow information:

During the six months ended May 31, 2024, interest paid related to debt obligations were $8,567 and income tax paid was $396 (net of refunds received).

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
FINANCIAL HIGHLIGHTS
(amounts in 000’s, except share and per share amounts)

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
FINANCIAL HIGHLIGHTS
(amounts in 000’s, except share and per share amounts)

See accompanying notes to financial statements.

KAYNE ANDERSON ENERGY INFRASTRUCTURE FUND, INC.
FINANCIAL HIGHLIGHTS
(amounts in 000’s, except share and per share amounts)