FS KKR Capital Corp.: Q4 and Full Year 2024 Financial Results and Distribution Announcement
FS KKR Capital Corp. (FSK), a leading publicly traded business development company (BDC), recently announced its financial and operating results for the quarter and year ended December 31, 2024. The company reported a net investment income of $0.61 per share for the quarter, a decrease from $0.77 per share in the previous quarter. Adjusted net investment income stood at $0.66 per share, down from $0.74 per share in Q3 2024.
Quarterly Financial Highlights
Net asset value (NAV) was reported at $23.64 per share, a decline from $23.82 per share as of September 30, 2024, and lower than $24.46 per share as of December 31, 2023. Total net realized and unrealized loss for the quarter was $0.09 per share, compared to a loss of $0.20 per share in Q3 2024. Adjusted net realized and unrealized loss amounted to $0.07 per share, down from $0.17 per share in the previous quarter. Earnings per share (EPS) for the quarter came in at $0.52, lower than $0.57 in Q3 2024.
Quarterly Operational Metrics
Total purchases for the quarter were $891 million, versus $1,462 million of sales and repayments. The net debt to equity ratio as of December 31, 2024, was 104%, compared to 109% as of September 30, 2024.
Full Year Financial Highlights
For the year ended December 31, 2024, net investment income was reported at $2.90 per share, a decrease from $3.18 per share in the previous year. Adjusted net investment income stood at $2.88 per share, down from $3.11 per share in 2023. Total net realized and unrealized loss for the year was $0.81 per share, compared to a loss of $0.70 per share in 2023. Adjusted net realized and unrealized loss amounted to $0.72 per share, up from $0.56 per share in 2023. Paid cash distributions to stockholders totaled $2.90 per share for the year.
CEO Statement
“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. Lutnick, chairman, CEO, and president of FS KKR Capital Corp.
Impact on Individual Investors
The Q4 and full-year 2024 financial results of FS KKR Capital Corp. could have a direct impact on individual investors holding FSK shares. The declining net investment income, lower net asset value, and increased net realized and unrealized losses may lead to decreased confidence in the company’s ability to generate consistent returns for investors. Additionally, the lower net asset value may result in a decrease in the market price of FSK shares, potentially negatively impacting investors’ portfolios.
Impact on the World
The financial results of FS KKR Capital Corp. may have indirect effects on the broader financial markets and the economy. A decline in the performance of BDCs like FSK could signal investor uncertainty in the asset class, potentially leading to a decrease in demand for BDC securities and a negative impact on the overall BDC market. Additionally, a decrease in the returns generated by FSK could have ripple effects on other sectors of the economy, as the company’s investments are spread across various industries.
Conclusion
FS KKR Capital Corp.’s Q4 and full-year 2024 financial results demonstrate a decrease in net investment income, net asset value, and increased net realized and unrealized losses compared to the previous year. These trends may negatively impact individual investors holding FSK shares and could have indirect effects on the broader financial markets and the economy. It is essential for investors to closely monitor the performance of their investments and stay informed about the latest developments within the BDC sector.
- Net investment income for Q4 2024 was $0.61 per share, down from $0.77 per share in Q3 2024.
- Net asset value was $23.64 per share as of December 31, 2024, a decrease from $23.82 per share as of September 30, 2024.
- Total net realized and unrealized loss for Q4 2024 was $0.09 per share, down from $0.20 per share in Q3 2024.
- Full-year 2024 net investment income was $2.90 per share, a decrease from $3.18 per share in 2023.
- Paid cash distributions to stockholders totaled $2.90 per share for the year.
