FSK - FS KKR Capital stock jumps after Q1 beat special distributions declared

2023-05-05 11:29:09 ET

FS KKR Capital ( NYSE: FSK ) rose 8.5% in Friday morning trading after the business development company turned in better-than-expected Q1 earnings and declared a Q2 distribution of $0.70 per share, the same as in Q1, and special distributions totaling $0.15.

Q1 adjusted net investment income per share of $0.78, topping the $0.75 consensus, declined from $0.81 in Q4 2022 and rose from $0.72 in the year-ago quarter.

Net asset value of $24.93 per share vs. $24.89 per share at the end of 2022. Net debt-to-equity ratio was 118% at March 31, 2023, unchanged from Dec. 31, 2022.

During the quarter, FS KKR ( FSK ) executed total purchases of $270M and sales and repayments of $386M, including $122M of sales to its joint venture Credit Opportunities Partners JV, LLC.

Total fair value of investments was $15.3B at March 31, 2023, of which 69% was invested in senior secured securities, vs. $15.4B at Dec. 31, 2022, with 69% invested in senior secured securities.

Weighted average annual yield on all debt investments increased to 11.4% as of March 31, 2023 vs. 11.2% at Dec. 31.

Earlier, FS KKR Capital ( FSK ) NII of $0.78 beats by $0.03, total investment income of $456M beats by $11.56M

SA contributor Damon Judd calls FSK a discounted BDC with a 16% yield on sale

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