Wed, May 14, 6:15 PM (40 days ago)
**KKR FS Income Trust Select (KFS) - Q1 2025 Financial Summary** **Ticker:** KFS **Quarterly Financial Health & Performance:** - **Revenue:** $14.882 million (primarily from interest income) - **Profit Margins:** Net investment income of $11.409 million, with a net increase in net assets of $13.961 million. - **Cash Flow:** Positive cash flow from operating activities, with significant investments and repayments. - **Earnings Changes:** Significant increase in net investment income and total return based on NAV (3.18% for Q1 2025). **Quarterly Performance Discussion:** - **Trends:** Strong performance in investment income, driven by interest and fee income. Significant increase in net assets due to investment activities. - **Uncertainties:** Market conditions and economic factors may impact future performance. Dependence on the general economy and its effect on the industries in which KFS invests. **Future Operations Impact:** - **Strategies:** Continued focus on defensive investment approach, long-term credit performance, and preservation of principal. Utilization of leverage to finance investments. - **Risks:** Exposure to interest rate and foreign currency risks. Dependence on the Adviser's ability to locate suitable investments and monitor portfolio companies. **Key Metrics:** - **Net Asset Value (NAV) per Share:** $25.52 (end of Q1 2025) - **Total Return Based on NAV:** 3.18% for Q1 2025 - **Asset Coverage:** 337% as of March 31, 2025 **Investment Portfolio:** - **Composition:** Primarily senior secured loans (80.5%) and asset-based finance (19.5%). - **Industry Classification:** Diversified across various sectors, including healthcare, software, and financial services. **Financial Condition & Liquidity:** - **Cash and Cash Equivalents:** $16.808 million as of March 31, 2025. - **Borrowings:** $204.752 million outstanding, with $195.248 million available under financing arrangements. **Distributions:** - **Cash Distributions:** $0.68 per share declared during Q1 2025, with plans for monthly distributions. **Risk Factors:** - **Market Risks:** Interest rate and foreign currency risks. Dependence on economic conditions and the Adviser's performance. - **Operational Risks:** Dependence on the Adviser's ability to manage investments and monitor portfolio companies. **Conclusion:** KKR FS Income Trust Select demonstrated strong financial performance in Q1 2025, with significant increases in investment income and net assets. The company's defensive investment strategy and focus on long-term credit performance position it well for future growth. However, market conditions and economic factors remain key uncertainties.