FS KKR Capital Corp. Reports Third Quarter Results
FS KKR Capital Corp. (NYSE: FSK), a leading business development company, today unveiled its financial and operational results for the quarter concluding on September 30, 2025. Notably, the board of directors announced a fourth quarter 2025 distribution of $0.70 per share.
Financial Performance Overview
The financial highlights for the quarter reveal a net investment income of $0.57 per share, a decrease from $0.62 per share in June. The adjusted net investment income remained consistent at $0.57 per share. The net asset value also performed modestly well, rising to $21.99 per share from $21.93.
- Total net realized and unrealized gains reached $0.19 per share, significantly improving from a loss of $1.36 per share in the prior quarter.
- Adjusted net realized and unrealized gains were reported at $0.21 per share, up from a loss of $1.34.
- The earnings per share reflected a substantial recovery, reported at $0.76 compared to a loss of $(0.75) previously.
- Total investments purchased amounted to $1,142 million, juxtaposed with $1,483 million in combined sales and repayments.
- As of the end of September 2025, the net debt to equity ratio stood at 116%, improving from 120% in June.
- Stockholders received a distribution of $0.70 per share.
Michael C. Forman, Chief Executive Officer and Chairman, expressed satisfaction with the results, stating, "During the third quarter, FSK generated $0.57 per share of Adjusted Net Investment Income, and our Net Asset Value per share increased to $21.99. We aim to provide an attractive distribution moving forward, aligning with industry standards of 9% to 10% yield on our Net Asset Value."
Fourth Quarter Distribution Strategy
On October 8, 2025, FSK's board declared the scheduled fourth quarter distribution, comprising a base distribution of $0.64 and an additional supplemental distribution of $0.06 per share. Payments will occur around December 17, 2025, to shareholders of record by December 3, 2025.
Portfolio Insights
Examining the portfolio as of September 30, 2025, the fair value of investments totaled $13.4 billion, with 63.2% in senior secured securities. The weighted average annual yield on accruing debt investments was noted at 10.6%, slightly down from June's 10.8%. Furthermore, the exposure to the largest portfolio companies by fair value was reported at 20%.
- Investments on non-accrual status were 2.9% of the total portfolio fair value, decreasing from 3.0% in June.
- The weighted average yield for all debt investments assessed at 9.8% compared to 9.9% in the previous quarter.
Leverage and Liquidity Review
As of the end of September 2025, the net debt to equity ratio was recorded at 116%, reflecting $7.4 billion in total debt, $155 million in cash and equivalents, alongside $46 million in receivables. Cash availability from financing arrangements amounted to $3.5 billion.
Upcoming Conference Call
FSK will host a conference call to discuss the third quarter results via a live webcast on November 6, 2025, at 9:00 AM Eastern Time. All interested parties will have access through FSK's investor section on their website.
About FS KKR Capital Corp.
FS KKR Capital Corp. is a prominent publicly traded business development company (BDC) dedicated to offering customized credit solutions to private middle-market U.S. companies. Its investment focus lies in senior secured debt and subordinated debt of these firms. For more details, visit FSK's website.
Frequently Asked Questions
What are the recent quarterly results for FS KKR Capital Corp.?
FS KKR reported a net investment income of $0.57 per share for Q3 2025, with a net asset value of $21.99 per share.
What was the fourth-quarter distribution announced?
The board declared a fourth-quarter distribution of $0.70 per share, made up of a base and supplemental distribution.
How did the company’s net debt to equity ratio change?
The net debt to equity ratio improved from 120% in June to 116% by the end of September 2025.
What was the fair value of investments as of September 30?
The total fair value of investments was recorded at $13.4 billion, predominantly in senior secured securities.
Where can investors find more information?
Investors can access more information and updates through the For Investors section of FSK's website.
