FS KKR Capital (FSK) investor relations material

Executive summary

• Net investment income for Q1 2026 was $117 million ($0.42 per share), down from $135 million ($0.48 per share) in Q4 2025, with adjusted net investment income at $0.41 per share.

• Net asset value per share declined to $18.83 from $20.89 at year-end 2025.

• Total net realized and unrealized loss was $2.00 per share, compared to $0.89 per share last quarter.

• Board declared a Q2 2026 distribution of $0.42 per share, consistent with policy to pay 100% of GAAP net investment income.

• Portfolio remains diversified across 236 companies in 23 industries, with top 10 holdings at 20% of fair value.

Financial highlights

• Total investment income for Q1 2026 was $304 million, down from $348 million in Q4 2025.

• Investment portfolio fair value was $12.3 billion across 236 companies as of March 31, 2026.

• Weighted average annual yield on accruing debt investments was 9.7%, down from 10% in Q4.

• Investments on non-accrual status increased to 4.2% of fair value, up from 3.4% last quarter.

• Net debt to equity ratio rose to 131% from 122% sequentially.

Outlook and guidance

• Net investment income expected to be 8%-9% of NAV annualized over coming quarters, subject to portfolio rotation, buybacks, and macro factors.

• Management expects the incentive fee waiver to support net investment income and quarterly distributions for the next four quarters.

• Portfolio expected to shrink as share buybacks and deleveraging proceed; new investment originations to be reduced.

• Focus on supporting existing portfolio companies, reducing leverage, and maintaining liquidity.

• The company’s ability to access a large, flexible credit facility supports ongoing investment and operational needs.