FS KKR Capital Corp. Announces Fourth Quarter and Full Year 2024 Results; Declares First Quarter 2025 Distribution of $0.70 per share

PR Newswire

PHILADELPHIA and NEW YORK, Feb. 26, 2025

PHILADELPHIA and NEW YORK, Feb. 26, 2025 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter and year ended December 31, 2024, and that its board of directors has declared a first quarter 2025 distribution of $0.70 per share.

Financial and Operating Highlights for the Quarter Ended December 31, 2024(1)

   -- Net investment income of $0.61 per share, compared to $0.77 per share for 
      the quarter ended September 30, 2024 
 
          -- Adjusted net investment income(2) of $0.66 per share, compared to 
             $0.74 per share for the quarter ended September 30, 2024 
 
   -- Net asset value of $23.64 per share, compared to $23.82 per share as of 
      September 30, 2024 and $24.46 per share as of December 31, 2023 
 
   -- Total net realized and unrealized loss of $0.09 per share, compared to a 
      total net realized and unrealized loss of $0.20 per share for the quarter 
      ended September 30, 2024 
 
          -- Adjusted net realized and unrealized loss(2) of $0.07 per share, 
             compared to adjusted net realized and unrealized loss of $0.17 per 
             share for the quarter ended September 30, 2024 
 
   -- Earnings per Share of $0.52, compared to Earnings per Share of $0.57 for 
      the quarter ended September 30, 2024 
 
   -- Total purchases of $891 million versus $1,462 million of sales and 
      repayments 
 
   -- Net debt to equity ratio(3) as of December 31, 2024 was 104%, compared to 
      109% as of September 30, 2024 
 
   -- Paid cash distributions to stockholders totaling $0.70 per share(4) 

Financial and Operating Highlights for the Year Ended December 31, 2024(1)

   -- Net investment income of $2.90 per share, compared to $3.18 per share for 
      the year ended December 31, 2023 
 
          -- Adjusted net investment income(2) of $2.88 per share, compared to 
             $3.11 per share for the year ended December 31, 2023 
 
   -- Total net realized and unrealized loss of $0.81 per share, compared to a 
      total net realized and unrealized loss of $0.70 per share for the year 
      ended December 31, 2023 
 
          -- Adjusted net realized and unrealized loss(2) of $0.72 per share, 
             compared to adjusted net realized and unrealized loss of $0.56 per 
             share for the year ended December 31, 2023 
 
   -- Paid cash distributions to stockholders totaling $2.90 per share(4) 

"As we conclude the fourth quarter of 2024, we are pleased with our continued strong performance, highlighted by disciplined capital deployment, portfolio stability, and a well-laddered, diversified capital structure," said Michael C. Forman, Chief Executive Officer & Chairman. "Looking ahead, our $4.8 billion of available liquidity will serve as a significant strength as private market activity continues to build."

Declaration of Distribution for First Quarter 2025

On February 25, 2025, FSK's board of directors declared a distribution for the first quarter of $0.70 per share, consisting of a base distribution of $0.64 per share and a supplemental distribution of $0.06 per share, which will be paid on or about April 2, 2025 to stockholders of record as of the close of business on March 19, 2025.

Portfolio Highlights as of December 31, 2024

   -- Total fair value of investments was $13.5 billion of which 63.8% was 
      invested in senior secured securities. 
 
   -- Weighted average annual yield on accruing debt investments(5) was 11.3%, 
      compared to 11.9% as of September 30, 2024. Excluding the impact of 
      merger accounting, weighted average annual yield on accruing debt 
      investments was 11.0%, compared to 11.5% as of September 30, 2024. 
 
   -- Weighted average annual yield on all debt investments(5) was 10.7%, 
      compared to 11.2% as of September 30, 2024. Excluding the impact of 
      merger accounting, weighted average annual yield on all debt investments 
      was 10.4%, compared to 10.8% as of September 30, 2024. 
 
   -- Exposure to the top ten largest portfolio companies by fair value was 21%, 
      compared to 20% as of September 30, 2024. 
 
   -- As of December 31, 2024, investments on non-accrual status represented 
      2.2% and 3.7% of the total investment portfolio at fair value and 
      amortized cost, respectively, compared to 1.7% and 3.8% as of September 
      30, 2024. 
 
Portfolio Data               As of December 31, 2024  As of September 30, 2024 
---------------------------  -----------------------  ------------------------ 
Total fair value of 
 investments                         $13,490                  $13,943 
Asset Class (based on fair 
value) 
  Senior Secured Loans -- 
   First Lien                        57.8 %                    59.9 % 
  Senior Secured Loans -- 
   Second Lien                        5.1 %                    6.2 % 
  Other Senior Secured Debt           0.9 %                    0.9 % 
  Subordinated Debt                   1.7 %                    1.6 % 
  Asset Based Finance                15.6 %                    14.3 % 
  Credit Opportunities 
   Partners JV, LLC                  10.1 %                    9.9 % 
  Equity/Other                        8.8 %                    7.2 % 
Interest Rate Type (based 
on fair value) 
  % Variable Rate Debt 
   Investments                       65.8 %                    68.6 % 
  % Fixed Rate Debt 
   Investments                        9.5 %                    8.2 % 
  % Other Income Producing 
   Investments                       16.4 %                    15.8 % 
  % Non-Income Producing 
   Investments(7)                     6.1 %                    5.7 % 
  % of Investments on 
   Non-Accrual(6)                     2.2 %                    1.7 % 
 

Leverage and Liquidity as of December 31, 2024

   -- Net debt to equity ratio(3) of 104%, based on $7.4 billion in total debt 
      outstanding, $296 million of cash, cash equivalents and foreign currency 
      and $184 million of net receivable for investments sold and repaid and 
      stockholders' equity of $6.6 billion. FSK's weighted average effective 
      interest rate (including the effect of non-usage fees) was 5.45%. 
 
   -- Cash, cash equivalents and foreign currency of $296 million and 
      availability under the Company's financing arrangements of $4.4 billion, 
      subject to borrowing base and other limitations. 
 
   -- As of December 31, 2024, 75% of the Company's $7.4 billion of total debt 
      outstanding was in unsecured debt and 25% in secured debt. 

Conference Call Information

FSK will host its fourth quarter and full year 2024 results conference call via live webcast on Thursday, February 27, 2025 at 9:00 a.m. (Eastern Time). All interested parties are welcome to participate and can access the live webcast from the Investor Relations section of FSK's website at www.fskkradvisor.com under Events or through the following URL: https://edge.media-server.com/mmc/p/y6c8i927.

Research analysts who wish to participate in the conference call are requested to register a day in advance or at a minimum 15 minutes before the start of the call using the following URL: https://register.vevent.com/register/BI285768b6c23c42fbb6b961100d310f8e. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN number that can be used to access the call.

An investor presentation of financial information will be available by visiting the Investor Relations section of FSK's website, under Presentations after the market close on Wednesday, February 26, 2025.

A replay of the call will be available beginning shortly after the end of the call by visiting the Investor Relations section of FSK's website, under Events.

Supplemental Information

An investor presentation of financial information will be available by visiting the Investor Relations section of FSK's website at www.fskkradvisor.com, under Presentations, after the market close on Wednesday, February 26, 2025.

About FS KKR Capital Corp.

FSK is a leading publicly traded business development company $(BDC)$ focused on providing customized credit solutions to private middle market U.S. companies. FSK seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies. FSK is advised by FS/KKR Advisor, LLC. For more information, please visit www.fskkradvisor.com.

About FS/KKR Advisor, LLC

FS/KKR Advisor, LLC (FS/KKR) is a partnership between FS Investments and KKR Credit that serves as the investment adviser to FSK and other business development companies.

FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over $83 billion in assets for a wide range of clients, including institutional investors, financial professionals and individual investors. FS Investments provides access to a broad suite of alternative asset classes and strategies through its best-in-class investment teams and partners. With its diversified platform and flexible capital solutions, the firm is a valued partner to general partners, asset owners and portfolio companies. FS Investments is grounded in its high-performance culture and guided by its commitment to building value for its clients, investing in its colleagues and giving back to its communities. The firm has more than 500 employees across offices in the U.S., Europe and Asia and is headquartered in Philadelphia.

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