On November 6, 2023, FS KKR Capital Corp (FSK, Financial) announced its financial and operating results for the quarter ended September 30, 2023. The company reported a 9% year-over-year growth in adjusted net investment income. The net asset value grew approximately 1% compared to the prior quarter.
Financial Highlights
FSK's board of directors declared a fourth quarter 2023 distribution of $0.70 per share, combined with a previously declared $0.05 per share special distribution, resulting in a total fourth quarter distribution of $0.75 per share. Additionally, the board declared special distributions totaling $0.10 per share to be paid in two equal installments of $0.05 per share during February and May 2024.
“During the third quarter, we generated 9% year-over-year growth in our adjusted net investment income and our net asset value grew approximately 1% compared to the prior quarter,” said Michael C. Forman, Chief Executive Officer & Chairman. “Our continued strong performance enables us to reward stockholders with an attractive $0.75 per share total distribution in the fourth quarter as well as to provide stockholders with a continuation of our special distributions during the first half of 2024."
Portfolio Highlights
As of September 30, 2023, the total fair value of investments stood at $14.66 billion, with 59.8% in Senior Secured Loans First Lien, 7.5% in Senior Secured Loans Second Lien, 0.9% in Other Senior Secured Debt, 2.0% in Subordinated Debt, 11.8% in Asset Based Finance, 9.6% in Credit Opportunities Partners JV, LLC, and 8.4% in Equity/Other.
Financial Statements Summary
For the three months ended September 30, 2023, FSK reported total investment income of $465 million, up from $411 million in the same period in 2022. Net investment income before taxes stood at $234 million, while net increase in net assets resulting from operations was $265 million, or $0.95 per share.
As of September 30, 2023, total assets were $15.38 billion, with total liabilities at $8.41 billion. The net asset value per share of common stock at period end was $24.89.
FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. The company is advised by FS/KKR Advisor, LLC.
Explore the complete 8-K earnings release (here) from FS KKR Capital Corp for further details.
