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Jun 30, 2022

FS KKR Q2 2022 Earnings Report

FS KKR reported financial results for the second quarter of 2022, declared a third quarter distribution of $0.67 per share, and increased the base distribution to $0.61 per share.

Key Takeaways

FS KKR Capital Corp. announced strong second-quarter results with an adjusted net investment income per share of $0.67, exceeding public guidance. The company declared a total third-quarter distribution of $0.67 per share, including an increased base distribution of $0.61 per share. The Federal Reserve's recent interest rate increases are expected to positively impact net investment income.

Net investment income was $0.71 per share.

Adjusted net investment income was $0.67 per share.

Net asset value was $26.41 per share.

The company declared a total third quarter distribution of $0.67 per share.

Total Revenue
$379M
Previous year: $206M
+84.0%
EPS
$0.67
Previous year: $0.74
-9.5%
Cash and Equivalents
$269M
Previous year: $485M
-44.5%
Total Assets
$17.2B
Previous year: $15.7B
+9.3%

FS KKR

FS KKR

Forward Guidance

FSK expects the Federal Reserve’s recent interest rate increases will have a positive effect on our net investment income as approximately 87% of our debt investments are floating rate structures.

Positive Outlook

  • Expected positive impact on net investment income from Federal Reserve's interest rate increases.
  • Approximately 87% of debt investments are floating rate structures.
  • Increased quarterly base distribution of $0.61 per share.
  • Total quarterly distribution of $0.67 per share.
  • FSK delivered another strong quarter of results.

Challenges Ahead

  • Changes in the economy.
  • Risks associated with possible disruption in FSK’s operations or the economy generally due to terrorism, geo-political risks, natural disasters or pandemics such as COVID-19.
  • Future changes in laws or regulations and conditions in FSK’s operating area and the price at which shares of FSK’s common stock trade on the New York Stock Exchange.
  • The inherent uncertainties in predicting future results and conditions.
  • Total net realized and unrealized loss of $0.96 per share