FS KKR Capital Corp：预计2026年NII为NAV的8%至9%；管理层优先退出非应计头寸

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

19 August 2026

FS KKR Capital Corp

NII Guided to 8% to 9% of NAV Through 2026; Mgmt.

Prioritizes Exiting Non-Accrual Positions

Neutral

FSK, FSK US

Price (18 Aug 26):$11.91

▲Price Target (Dec-27):$11.00

Prior (Dec-27):$9.50

FSK reported 2Q26 adj. NII/sh of $0.43, above consensus of $0.41 and JPMe of $0.40,

respectively. NAV decreased to $18.30 (-2.8% sequentially) vs. $18.83 in 1Q26,

driven by net realized and unrealized losses of $154M. FSK declared a 3Q26

distribution of $0.44/sh, up sequentially from the $0.42/sh paid in 2Q26, supported in

part by a 50% subordinated income incentive fee waiver. FSK also noted the strategic

actions announced in May are progressing as planned, including the completed

$150M KKR tender offer, the $150M convertible preferred stock issuance to a KKR

subsidiary, and the commencement of the $300M share repurchase program.

Mgmt. outlined its key priorities for the balance of 2026 and into 2027. First,

mgmt. said it is focused on working through underperforming and non-incomeproducing assets via restructurings and exits to reduce non-accruals, acknowledging

heavy lifting remains. Second, mgmt. said it intends to rotate the portfolio toward

higher-quality, first lien senior secured investments to improve quality and

diversification, including lifting the first lien percentage over time. Third, mgmt. said

it would manage leverage and liquidity while maintaining flexibility to support the

share repurchase program, targeting net leverage toward the middle of the 1.0x to

1.25x range over time. Mgmt. added that completing the $300M buyback and the

broader strategic actions announced in May, along with regaining market confidence,

remain central objectives.

We are raising our Dec-2027 price target to $11.00 from $9.50 and reiterate our

Neutral rating. Our price target is based on a 0.60x (from 0.50x) applied to our

YE2027 NAV estimate of $18.39 (from $18.70). Our target multiple reflects investor

concerns about stability of credit within the portfolio and NAV volatility, as well as

uncertain earnings power and a lower dividend. Our price target implies an annualized

7% total return.

Model Impact:

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