FS KKR Capital Corp. Reports Q3 2024 Earnings

Fs Kkr Capital ( (FSK) ) has released its Q3 earnings. Here is a breakdown of the information Fs Kkr Capital presented to its investors.

FS KKR Capital Corp. is a publicly traded business development company that specializes in providing customized credit solutions to private middle-market U.S. companies, primarily through investments in senior secured debt. In its latest earnings report, FS KKR Capital Corp. announced a distribution of $0.70 per share for the fourth quarter of 2024, while reporting financial results for the third quarter that highlight stable investment income and a strategic focus on reducing non-accrual investments.

For the third quarter of 2024, FS KKR Capital reported a net investment income of $0.77 per share, consistent with the previous quarter, and adjusted net investment income slightly reduced to $0.74 per share. The company realized an earnings per share increase to $0.57 from $0.37 in the previous quarter, attributed to a reduction in net realized and unrealized losses. Notably, FS KKR Capital made $1.1 billion in new investments and maintained a net debt to equity ratio of 109%.

The company’s portfolio remained robust with a total fair value of $13.9 billion, of which 67% is invested in senior secured securities. The weighted average annual yield on accruing debt investments slightly decreased to 11.9%, indicating a stable income generation capability. Furthermore, the company’s focus on reducing non-accrual investments is reflected in a slight decrease in these investments, representing 1.7% of the total portfolio at fair value.

Looking forward, FS KKR Capital remains optimistic about the economic landscape, with expectations of an increase in mergers and acquisitions activity as the company continues to leverage its strong investment portfolio. The company’s management is focused on maintaining its strategic investment approach while navigating the evolving financial environment.