Kkr Credit Income Fund (KKC) H2 2024 earnings summary

Executive summary

• Net assets attributable to unitholders rose 4.4% year-over-year to $795.3 million as of 30 June 2024.

• Operating profit increased 13.2% year-over-year to $98.0 million, with total investment income up 17.1% to $113.6 million.

• The Fund maintained monthly distributions, increasing from 1.0938 to 1.6700 cents per unit, totaling $64.6 million for the year.

• The Fund's portfolio is diversified across more than 190 issuers, with a 40% allocation to European Direct Lending and a floating rate bias to hedge inflation.

Financial highlights

• Total assets reached $819.9 million, up from $788.4 million the previous year.

• Net tangible assets per unit increased to $2.4657 from $2.3621 year-over-year.

• Earnings per unit rose to 30.39 cents from 26.53 cents year-over-year.

• Management and performance fees totaled $12.6 million, up from $7.7 million last year.

• Cash and cash equivalents at year-end were $47.2 million, up from $6.8 million.

Outlook and guidance

• Targeted distribution for FY2025 is 1.67 cents per month (20.0 cents per annum), translating to an 8.7% yield based on the 30 June 2024 price.

• The Fund expects to maintain a 40–50% allocation to European Direct Lending and continue its floating rate strategy.

• Management anticipates continued positive performance, supported by a current yield of 9.9% and yield-to-maturity of 11.3%.