Kayne Anderson BDC (KBDC) investor relations material

Executive summary

• Net investment income per share was $0.42 ($27.5–$27.6 million), covering the $0.40 per share dividend, with annualized ROE on net investment income at 10.5%.

• Net asset value per share declined to $16.00 from $16.23 sequentially, mainly due to realized and unrealized losses.

• Portfolio fair value was $2.3 billion across 104 companies, with 92.8–93% in first lien senior secured loans.

• Dividend coverage ratio was 105%, and regular dividends of $0.40 per share were declared for Q2 and Q3 2026.

• Share repurchases totaled 1.78 million shares for $25.2 million in H1 2026, with $95.8 million remaining authorized.

Financial highlights

• Total investment income for Q2 2026 was $55.7 million, down from $57.3 million in Q1, mainly due to lower PIK interest and non-accruals.

• Net income per share was $0.16, with net realized losses of $12.2 million and net unrealized losses of $4.6 million.

• Total expenses for the six months were $56.6 million, with interest expense at $38.5 million.

• Net asset value per share declined from $16.32 at year-end 2025 to $16.00 at June 30, 2026.

• Portfolio turnover was 6.7% for the first half of 2026.

Outlook and guidance

• Confident in sustaining the current dividend through 2026, with management expecting sufficient liquidity for investment activities.

• Target debt-to-equity ratio remains 1.00x–1.25x, with actual at 1.17x.

• Prepayment activity expected to be around 5% of the portfolio in H2 2026.

• Management noted increased deal flow and favorable pricing for new floating rate originations entering Q3 2026.