FS KKR Capital Earnings Call Transcripts
Fiscal Year 2026
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NAV declined 9.9% per share in Q1 2026, with net investment income of $0.42 per share. Strategic actions include a $150M KKR tender offer, $150M convertible preferred investment, $300M share repurchase, and a four-quarter fee waiver to support stability and shareholder value.
Fiscal Year 2025
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Q4 2025 saw a 5% NAV decline due to portfolio markdowns and higher nonaccruals, with net investment income at $0.48 per share and a 9.2% yield. Management is focused on addressing underperforming assets and maintaining liquidity, with 2026 dividend yield guidance lowered to 9% of NAV.
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Net investment income met guidance, with net asset value rising to $21.99 per share. The 2026 distribution strategy targets a 10% yield on NAV, and M&A activity is increasing. Non-accruals declined, liquidity remains strong, and new investments are focused on first lien and ABF opportunities.
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Q2 2025 saw net investment income of $0.62 per share and a 6.2% NAV decline, mainly due to four new non-accruals. New investments remained strong, liquidity was robust, and 2025 distribution guidance was reaffirmed. Non-accruals rose to 5.3% of the portfolio.
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Q1 2025 net investment income exceeded guidance, with stable distributions and strong liquidity. Portfolio quality remains high, though yield compression and macro risks persist. Management expects continued stability and proactive risk management amid ongoing market volatility.
Fiscal Year 2024
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Net investment income and distributions remained strong in Q4 2024, with a robust balance sheet and significant liquidity positioning for increased M&A activity in 2025. Non-accruals declined, and proactive liability management continues, while guidance for 2025 distributions is set at $2.80 per share.
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Q3 2024 results exceeded guidance with net investment income of $0.77 per share and strong portfolio quality. Yield compression and lower rates are expected to impact Q4 earnings, but management remains optimistic about increased M&A activity and new investments in 2025.
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Q2 2024 net investment income and adjusted NII exceeded guidance, with strong origination activity and improved portfolio quality. Nonaccruals declined, liquidity remains robust, and full-year distributions are expected to total at least $2.90 per share.