FS KKR Capital reports $0.42 quarterly distribution amid NAV decline

FS KKR Capital Corp. (NYSE: FSK) reported first quarter 2026 results showing net investment income of $0.42 per share, down from $0.48 per share in the previous quarter. The business development company also declared a second quarter 2026 distribution of $0.42 per share.

Net asset value declined to $18.83 per share as of March 31, 2026, compared to $20.89 per share at December 31, 2025. The company recorded total net realized and unrealized losses of $2.00 per share during the quarter, compared to losses of $0.89 per share in the prior quarter.

Total investment purchases reached $499 million during the quarter, while sales and repayments totaled $710 million. The company's net debt to equity ratio increased to 131% from 122% in the previous quarter.

As part of strategic value enhancement actions, a KKR subsidiary agreed to invest $150 million in cumulative convertible perpetual preferred stock with a 5.00% annual cash dividend rate. Additionally, KKR announced a $150 million tender offer for FSK common stock at $11.00 per share.

The company's board authorized a $300 million stock repurchase program, scheduled to expire June 1, 2027. KKR also agreed to waive 100% of its portion of subordinated income incentive fees for four consecutive quarters beginning in the second quarter of 2026.

FSK's portfolio had a total fair value of $12.3 billion as of March 31, 2026, with 63.7% invested in senior secured securities. The weighted average annual yield on accruing debt investments was 9.9%, down from 10.1% in the previous quarter.

The second quarter 2026 distribution will be paid July 2, 2026, to stockholders of record as of June 17, 2026.

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