KKR Financial Q2 Profit Rises, Revenue Slides - Update

(RTTNews) - KKR Financial Holdings LLC (KFN) Tuesday reported higher profit for the second quarter, helped by an increase in realized and unrealized gains on investments.

Net income available to common shareholders rose to $79.24 million from $71.21 million in the prior year quarter. Earnings per share remained flat with last year at $0.39.

Total revenues fell to $137.24 million from $140.55 million in the prior year. Loan and securities interest income comprised 77 percent of total revenue and oil and gas revenue comprised 20 percent.

Loan and securities interest income declined for the just concluded quarter as a result of a decline in scheduled and prepayment-related discount amortization from the company's loan portfolio. A reduction in high-yield bond holdings from a par value of $743.7 million to $408.1 million over the year also contributed to the drop.

Total other income was $37.2 million in the quarter compared to $16.5 million last year, due to a higher level of realized and unrealized gains on investments as well as favorable moves in derivatives and foreign exchange exposures.

Further, the company's board of directors declared a cash distribution of $0.21 per common share for the second quarter.

KFN closed down 1.1 percent at $11 on Tuesday but added 1.8 percent in the extended trade.