FS KKR Capital (FSK) investor relations material

Executive summary

• Net investment income for Q2 2026 was $122 million ($0.44 per share), up from $117 million ($0.42 per share) in Q1; adjusted net investment income was $120 million ($0.43 per share), up from $116 million ($0.41 per share) sequentially.

• Net asset value per share declined to $18.30 from $18.83 at the end of Q1 2026.

• A third-quarter distribution of $0.44 per share was declared, consistent with the policy of paying out 100% of prior quarter's GAAP net investment income.

• Strategic actions included a $150 million tender offer by KKR, $150 million issuance of convertible preferred stock, and commencement of a $300 million stock repurchase program, with 3.7 million shares repurchased at an average price of $10.73 per share through August 5, 2026.

• Portfolio consisted of 232 companies across 23 industries, with the top 10 holdings representing 21% of fair value.

Financial highlights

• Total investment income for Q2 2026 was $290 million, with net expenses of $168 million.

• Net realized and unrealized losses per share were ($0.56) in Q2 2026, compared to ($2.00) in Q1 2026.

• Net decrease in net assets from operations was ($0.13) per share in Q2 2026.

• Weighted average yield on accruing debt investments was 9.8% as of June 30, 2026.

• Total fair value of investments was $11.4 billion, with 63% in senior secured securities.

Outlook and guidance

• Net investment income is expected to be in the range of 8%-9% of NAV on an annualized basis for the remainder of 2026.

• Management remains focused on portfolio quality, leverage reduction, and executing strategic initiatives, including defensive credit selection and portfolio monitoring.

• Distribution levels will fluctuate in line with net investment income.

• Sufficient liquidity is maintained to fund unfunded commitments and ongoing operations.

• Strategic actions, including share repurchases and portfolio rotation, are expected to strengthen the financial profile.