FS KKR Capital Corp. Reports Q2 Net Investment Income of $0.44 Per Share

The Philadelphia-based business development company saw its net asset value reach $18.30 per share as of June 30, 2026, down from $18.83 at the end of March. Total net realized and unrealized losses narrowed significantly to $0.56 per share, a notable improvement compared to the $2.00 loss seen in the first quarter of the year. Management successfully reduced the debt-to-equity ratio to 127%, bringing leverage within the company's target range.

CEO Michael C. Forman noted that the firm is prioritizing portfolio performance and the reduction of non-accrual assets. Strategic maneuvers executed in May continue to shape the balance sheet, including a $150 million tender offer, a new convertible preferred stock issuance, and an active share repurchase program. Between late June and early August, the firm repurchased over 3.7 million shares of common stock at an average price of $10.73 per share. These actions, combined with a 50% waiver on subordinated income incentive fees, are intended to stabilize the company's financial profile as it navigates ongoing portfolio rotation.