FS KKR Capital Corp. Reports Financial Results for First Quarter 2025
FS KKR Capital Corp. (NYSE: FSK) has announced its financial results for the first quarter of 2025, showcasing a significant start to the fiscal year. The company’s board of directors has declared a second quarter distribution of $0.70 per share, marking an exciting update for shareholders.
Financial and Operational Highlights
The financial highlights for the quarter ended March 31, 2025, are impressive, reflecting the company's robust performance in the current economic climate. The net investment income stood at $0.67 per share, a rise from $0.61 per share reported in the previous quarter.
- Adjusted net investment income reported was $0.65 per share, slightly down from $0.66 per share in the previous quarter.
- The net asset value per share is $23.37, demonstrating a minor decline from $23.64 at the end of the previous quarter.
- FS KKR reported a total net realized and unrealized loss of $0.24 per share, a rise compared to $0.09 per share in the last quarter.
- For the quarter, earnings per share were recorded at $0.43, compared to $0.52 from the prior quarter.
- Total purchases reached $1,998 million against sales of $1,407 million, including notable sales to the joint venture, Credit Opportunities Partners JV, LLC.
- As of the end of March, the net debt to equity ratio was at 114%, a slight increase from 104% in the final quarter of 2024.
CEO Commentary on Performance
Michael C. Forman, the Chief Executive Officer & Chairman, expressed satisfaction with the company’s performance. He noted, "We are pleased to deliver a strong start to the year, generating $0.65 per share of Adjusted Net Investment Income and originating approximately $2.0 billion of new investments. This operational success underscores our commitment to generating value for our shareholders while navigating the current market's volatility."
Distribution Declaration for the Upcoming Quarter
The board of directors declared a distribution of $0.70 per share for the second quarter, with $0.64 designated as base distribution and $0.06 as supplemental distribution. Stockholders can expect payment on or about July 2, 2025.
Portfolio and Investment Insights
As of March 31, 2025, FS KKR's portfolio reflects a total fair value of investments amounting to $14.1 billion, with significant investment in senior secured securities. The weighted average annual yield on accruing debt investments is currently at 11.0%, slightly reduced from 11.3% at the end of last year.
- The company's exposure to its top ten largest portfolio companies by fair value remains stable at 20%, showing strong foundational health.
- Investments on non-accrual status represent 2.1% of the total investment portfolio at its fair value, showing a slight improvement compared to earlier reports.
Leverage and Liquidity Analysis
As of March 31, 2025, FS KKR’s total debt outstanding is $8.0 billion, complemented by cash, equivalents, and liquidity available under financing arrangements of $2.6 billion. Notably, 54% of total debt is unsecured, while the remainder is secured, providing a balanced financial structure.
Upcoming Conference Call
FS KKR will hold a conference call to discuss its financial results on May 8, 2025, at 9:00 a.m. Eastern Time. All interested parties are encouraged to join and engage in the live webcast available on the company’s Investor Relations website.
About FS KKR Capital Corp.
FS KKR Capital Corp. serves as a publicly traded business development company (BDC) focused on providing tailored credit solutions to private middle-market companies. It strategically targets investments in senior secured debt to foster stability and growth.
Contact Information
For investor relations, please contact Anna Kleinhenn for further inquiries. FS KKR provides regular updates through its official channels to keep investors informed.
Frequently Asked Questions
What is the declared distribution per share for the second quarter?
The declared distribution for the second quarter is $0.70 per share, with a base of $0.64 and supplemental of $0.06.
How did FS KKR perform in the first quarter of 2025?
FS KKR reported a net investment income of $0.67 per share, demonstrating growth compared to the previous quarter.
What did the CEO say about the company's strategy?
CEO Michael C. Forman highlighted the successful generation of $0.65 per share of adjusted net investment income, emphasizing their adaptive strategy amid market volatility.
What is the company's weighted average annual yield on debt investments?
The current weighted average annual yield on accruing debt investments is 11.0% as of March 31, 2025.
When is the next conference call scheduled?
The next conference call is scheduled for May 8, 2025, at 9:00 a.m. Eastern Time.
