Portfolio Rebalancing Masks Structural Earnings and Liquidity Stress
FSK is undergoing a significant portfolio rebalancing, evidenced by a 21% contraction in total assets from $15.2B to $12.0B, which appears to be masking underlying credit deterioration and earnings instability.
FS KKR Capital NYSE: FSK reported third-quarter 2026 net investment income of $0.46 per share, aided by a one-time dividend from portfolio company Belk and a temporary incentive fee waiver. The company said it is prioritizing share repurchases and lower leverage as it works through challenged investments.
International Assets Investment Management LLC reduced its position in shares of FS KKR Capital Corp. (NYSE: FSK) by 80.5% in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 30,005 shares of the company's stock after selling 123,642 shares during the quarter. International Assets
FS KKR Capital (FSK) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.4 per share. This compares to earnings of $0.57 per share a year ago.
PHILADELPHIA and NEW YORK, Nov. 5, 2026 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended September 30, 2026, and that its board of directors previously, on October 7, 2026, declared a fourth quarter 2026 distribution of $0.44 per share to common stockholders and a special distribution of $0.20 per share to common stockholders. Financial and Operating Highlights for the Quarter Ended September 30, 2026 (1) Net investment income of $0.46 per share, compared to $0.44 per share for the quarter ended June 30, 2026 Adjusted net investment income(2) of $0.46 per share, compared to $0.43 per share for the quarter ended June 30, 2026 Net asset value of $18.28 per share as of September 30, 2026, compared to $18.30 per share as of June 30, 2026 Total net realized and unrealized loss of $0.19 per share, compared to a total net realized and unrealized loss of $0.56 per share for the quarter ended June 30, 2026 Adjusted net realized and unrealized loss(2) of $0.18 per share, compared to adjusted net realized and unrealized loss of $0.55 per share for the quarter ended June 30, 2026 Earnings (Loss) per share of $0.26, compared to Earnings (Loss) per share of ($0.13) for the quarter ended June 30, 2026 Total purchases of $335 million versus $442 million of sales and repayments Debt to equity ratio as of September 30, 2026 was 127%, compared to 127% as of June 30, 2026 Net debt to equity ratio(3) as of September 30, 2026 was 125%, compared to 122% as of June 30, 2026 Paid a third quarter 2026 distribution of $0.44 per share to common stockholders(4) "During the third quarter, FSK continued making progress toward our previously stated strategic goals," said Michael C.
FS KKR Capital Corp. (FSK) grew revenue by 32.0% over the trailing twelve months, compared with the twelve months before.
Is FSK profitable?
No. FS KKR Capital Corp. (FSK) reported a net loss of $516.0M over the trailing twelve months.
Dividend & Returns
Does FSK pay dividends?
Yes. FS KKR Capital Corp. (FSK) pays a dividend that yields 23.93% at the current price, a high yield.
What is FSK's return on equity?
FS KKR Capital Corp. (FSK) had a return on equity (ROE) of -9.6% over the trailing twelve months. A negative ROE means the company lost money over the period.
Industry Metrics
What is FS KKR Capital Corp.'s net interest margin?
FS KKR Capital Corp. (FSK) has a net interest margin (NIM) of 7.4%. This indicates healthy earnings from lending activities.
What is FS KKR Capital Corp.'s efficiency ratio?
FS KKR Capital Corp. (FSK) has an efficiency ratio of 33.2%. This is excellent, indicating strong cost control.