FS KKR Capital Corp. reported its financial results for the third quarter and the nine months ended September 30, 2025, revealing a net investment income of $159 million, or $0.57 per share, for the quarter, down from $215 million, or $0.77 per share, in the same period last year. For the nine months, net investment income totaled $519 million, or $1.86 per share, compared to $642 million, or $2.29 per share, in 2024. The decline in income is attributed to lower investment income, particularly from interest and paid-in-kind (PIK) income, as well as the placement of certain assets on non-accrual status.
Total investment income for the third quarter was $373 million, a decrease from $441 million in the prior year, primarily due to a drop in interest income, which fell to $231 million from $290 million. The company also experienced a net increase in net assets resulting from operations of $214 million for the quarter, compared to $160 million in the same quarter of 2024. The net asset value per share decreased to $21.99 from $23.64 at the end of the previous fiscal year.
In terms of operational developments, FS KKR Capital Corp. maintained a consistent number of shares outstanding, with 280,066,433 shares as of September 30, 2025. The company’s investment portfolio as of that date was valued at $13.415 billion, with a significant portion in senior secured loans, which accounted for 58% of the total portfolio. The company also reported a weighted average annual yield on accruing debt investments of 10.6%, down from 11.3% in the previous year.
Strategically, the company has continued to focus on its investment objectives of generating current income and long-term capital appreciation, primarily through investments in senior secured loans and second lien secured loans of private middle-market U.S. companies. As of September 30, 2025, FS KKR Capital Corp. had unfunded commitments totaling approximately $1.733 billion, indicating a robust pipeline for future investments. The company’s asset coverage ratio stood at 184%, reflecting compliance with regulatory requirements and a solid capital structure.
Looking ahead, FS KKR Capital Corp. plans to maintain its distribution strategy, having declared a quarterly distribution of $0.70 per share, which includes a base distribution of $0.64 and a supplemental distribution of $0.06. The company’s management remains optimistic about its ability to navigate market conditions and generate returns for its shareholders, although it acknowledges the potential impact of economic fluctuations and interest rate changes on its operations.
About FS KKR Capital Corp
FSK Capital Corp. is a non-diversified, closed-end management investment company regulated as a business development company (BDC). It primarily invests in senior secured and second lien loans of private U.S. middle-market companies, focusing on generating current income and long-term capital appreciation. Managed by FS/KKR Advisor, it leverages extensive industry relationships, disciplined credit analysis, and tailored debt and equity investments to serve institutional and private investors.
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