Galeanu Mihai As we went into 2024, I issued an article with a title - "The Battle Of Two Goliaths: Ares Capital Vs. FS KKR, Which One Will Win In 2024?" As the title implies, I compared side by side FS KKR Capital (NYSE:FSK) with Ares Capital (ARCC), which are the two largest BDCs out there, and concluded that while both are solid picks, FSK exhibits better prospects to register alpha this year. The overarching thesis on why FSK, in my opinion, is so enticing is its deep discount to NAV despite structu ...

8vFanI/iStock via Getty Images I think that now is a good time to buy more preferred shares of REITs. There are two simple reasons for this. For one, a lot of them remain heavily discounted relative to their par value and offer up to 10% dividend yields and upside potential as interest rates are cut in the coming quarters. For two, as we pointed out in our most recent market update, inflation ex-shelter is now below 2%, and this greatly increases the likelihood of interest rate cuts in the near term. Ac ...

Declares Third Quarter 2024 Distribution of $0.70 per sharePHILADELPHIA and NEW YORK, Aug. 6, 2024 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended June 30, 2024, and that its board of directors has declared a third quarter 2024 distribution of $0.70 per share.Financial and Operating Highlights for the Quarter Ended June 30, 2024(1)Net investment income of $0.77 per share, compared to $0.76 per share for the quarter e ...

KKR & Co. Inc. (NYSE:KKR) Q2 2024 Earnings Conference Call July 31, 2024 10:00 AM ET Company Participants Craig Larson - Partner and Head of IR Scott Nuttall - Co-Chief Executive Officer Rob Lewin - Chief Financial Officer Conference Call Participants Craig Siegenthaler - Bank of America Bill Katz - TD Cowen Alexander Blostein - Goldman Sachs Patrick Davitt - Autonomous Research Daniel Fannon - Jefferies Brian Bedell - Deutsche Bank Brian McKenna - Citizens JMP Benjamin Budish - Barclays Steven Chubak - Wol ...

Financial Performance - KKR reported a GAAP net income of $0.7 billion for Q2 2024, compared to $1.4 billion year-to-date[15]. - Total revenues for Q2 2024 were $4.17 billion, up 15% from $3.63 billion in Q2 2023[16]. - Fee Related Earnings (FRE) reached $755 million in Q2 2024, an increase of 25% year-over-year[17]. - Total Operating Earnings (TOE) for Q2 2024 were $1.0 billion, reflecting a 36% increase compared to Q2 2023[17]. - Adjusted Net Income (ANI) was $972 million in Q2 2024, up 49% year-over-year[17]. - The company reported a Net Income of $667.93 million for Q2 2024, down from $844.46 million in Q2 2023[83]. - Adjusted net income for Q4'23 was $971,869 thousand, compared to $652,604 thousand in Q2'23[91]. - Total GAAP revenues for Q4'23 were $4,171,910 thousand, an increase from $3,626,518 thousand in Q2'23[92]. - Total operating earnings for Q4'23 were $1,049,462 thousand, up from $772,533 thousand in Q2'23[91]. Assets Under Management (AUM) - Assets Under Management (AUM) increased to $601 billion, a 16% rise from the previous year[17]. - KKR's Fee Paying Assets Under Management (FPAUM) grew to $487 billion, up 18% year-over-year[17]. - Global Atlantic's Assets Under Management (AUM) reached $183 billion, with $139 billion in Credit AUM[51]. - Total Assets Under Management amounted to $493.63 billion, with $328.54 billion eligible to receive carried interest[73]. Capital Raising and Investments - KKR raised $32 billion in new capital during the quarter, marking the second highest quarterly capital raised[17]. - Capital invested in Q2 2024 was $23 billion, which is 90% larger than the same period in the previous year[17]. - New capital raised in the Asset Management Segment totaled $12.8 billion in the quarter, with $32.4 billion raised in the LTM[23]. - KKR's portion of Uncalled Commitments to its investment funds includes $4.6 billion for Private Equity, $2.9 billion for Real Assets, and $1.2 billion for Credit and Liquid Strategies[100]. Dividends and Shareholder Returns - The company declared a regular dividend of $0.175 per share of common stock[17]. - The company declared a dividend of $0.175 per share for Q2 2024, payable on August 15, 2024[79]. Performance Metrics - Fee Related Earnings per Adjusted Share rose by 18% year-over-year, reflecting growth in management and transaction fees[26]. - Total Asset Management Segment Revenues consist of Management Fees, Transaction and Monitoring Fees, Fee Related Performance Revenues, Realized Performance Income, and Realized Investment Income, excluding unrealized gains[127]. - Total Segment Earnings excludes equity-based compensation charges and transaction-related items, providing a clearer view of operational performance[120]. Risks and Challenges - KKR faces risks related to future business growth and the ability to capitalize on growth opportunities, including assumptions about New Capital Raised and Assets Under Management[142]. - The company reported high variability in earnings and cash flow, with potential impacts from geopolitical developments and difficult market conditions[142]. - KKR's investment activities are subject to risks such as dependence on significant leverage and investments in relatively illiquid assets[142]. - Global Atlantic's growth strategies may face challenges, including differences between policyholder behavior estimates and actual claims experience[143]. Strategic Outlook - Future outlook includes continued focus on strategic holdings and potential market expansions, although specific guidance was not detailed in the call[89]. - The company anticipates future growth in its Strategic Holdings segment, which is expected to generate compounding earnings over time[137]. - KKR is focused on expanding into new investment strategies and geographic markets, which may involve additional risks[142]. Organizational and Regulatory Considerations - KKR's organizational structure poses risks, including the potential decline in common stock price and obligations under a tax receivable agreement[144]. - The company must navigate extensive regulations, including compliance with the Investment Company Act of 1940[144].

Wall Street analysts expect KKR & Co. Inc. (KKR) to post quarterly earnings of $1.05 per share in its upcoming report, which indicates a year-over-year increase of 43.8%. Revenues are expected to be $1.07 billion, up 10.1% from the year-ago quarter. Over the last 30 days, there has been a downward revision of 1.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this tim ...

Moussa81Co-produced by Austin Rogers About a year ago, we performed a broad analysis of commercial mortgage REITs to see if we could find any compelling value. While the spread-based business model of residential mREITs is unappealing to us and has resulted in poor long-term returns, commercial property mREITs have better records, to varying degrees. On a total return basis, only one commercial mREIT has underperformed the VanEck Mortgage REIT Income ETF (MORT), which is heavily weighted toward resident ...

Small business owners will compete for $175,000 in prize money and national exposureWASHINGTON, June 19, 2024 /PRNewswire/ -- Small business owners across America will compete this summer for $175,000 in prize money and national exposure in a pitch competition hosted by SCORE, the nation's largest network of volunteer, expert business mentors, in honor of the organization's 60th anniversary. Founded in 1964, SCORE has helped more than 17 million entrepreneurs start, grow or successfully exit a business. ...

Henrik Sorensen FS KKR Capital Corp. (NYSE:FSK) reported a higher-than-anticipated increase in the non-accrual ratio in the December quarter, leading me to modify my stock classification from Buy to Hold. In the quarter ending March 31, 2024, FS KKR Capital benefited from a QoQ improvement in the non-accrual ratio, meaning its credit quality improved, but the BDC continues to have a narrow margin of dividend safety. FS KKR Capital, however, profited from growing demand for loans in 1Q24 and the stock is ...

The popular S&P Dow Jones Indices are set to get the customary new look this month. Every year, on the third Friday of June, the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices undergo a rebalance. The shake-up leads to strong gains for the stocks joining the indices.Thus, ETFs targeting the S&P Dow Jones Indices are currently in focus. These include SPDR S&P 500 ETF Trust (SPY) , iShares Core S&P 500 ETF (IVV) , Vanguard S&P 500 ETF (VOO) , iShares Core S&P Mid-Cap ETF (IJH) and iShares Core S&P Small ...