FS KKR Capital Corp. (FSK) Q3 2026 Earnings Report, Transcript and Summary

Good morning, ladies and gentlemen. Welcome to FS KKR Capital Corp's Third Quarter 26 Earnings Conference Call. Your lines will be in a listen-only mode during our remarks by FSK's management. At the conclusion of the company's remarks, we will begin the question and answer session. At which time, I will give you instructions on entering the queue. Please note that this conference call is being recorded. At this time, Anna Kleinhenn, Head of Investor will proceed with the introduction. Ms. Kleinhenn, you may begin.

Thank you. Good morning, and welcome to FS KKR Capital Corp's Third Quarter 26 Earnings Conference Call. Please note that FSKKR Capital Corp. will be referred to as FSK, the fund, or the company throughout the call. Today's conference call is being recorded. And an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued this morning. In addition, FSK has posted on its website presentation containing supplemental financial information with respect to its portfolio and financial performance. For the quarter ended 09/30/2026. A link to today's webcast and the presentation is available on the For Investors section of the company's website under Events and Presentations. Please note that this call is the property of FSK. Any unauthorized rebroadcast of this call in any form is strictly prohibited. Today's conference call includes forward-looking statements that are not historical facts including, without limitation, statements with regard to future events, or future performance or financial condition. Statements regarding share repurchase activity, distribution levels and frequency, expectations for net investment income levels in future quarters, and the financial position, business strategy, and plans and objectives of management for FSK's future operations. Words such as anticipate, believe, expect, intend, project, and future, or similar expressions, indicate a forward-looking statement. Although not all forward-looking include these words. These forward looking statements are not guarantees of performance or events and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. And could cause our actual results or future events to differ materially from those expressed or forecasted in these forward-looking statements for any reason. We ask that you refer to FSK's most recent filings with the SEC for important factors and risks that could cause actual results or future events to differ materially from these statements. The forward-looking statements included on this call are based on information available to FSK today, and current expectations. Forecasts and assumptions and involve a number of judgments, risks, and uncertainties. Except as required by the federal securities laws, FSK undertakes no obligation to update or revise any forward-looking statement. Whether as a result of new information, future events, or otherwise. In addition, this call will include certain non GAAP financial measures that have not been prepared in accordance with U. S. Generally Accepted Accounting Principles. These non GAAP financial measures are not in accordance with, or an alternative to measures prepared in accordance with GAAP and may be different from non GAAP financial measures used by other companies. In addition, these non GAAP financial measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate FSK's results of operations, in conjunction with their corresponding GAAP measures. For such non GAAP measures, reconciliations to the most directly comparable GAAP measures can be found, in FSK's third quarter earnings release that was furnished with the SEC on 11/05/2026. And in the presentation posted on our website. To obtain copies of the company's latest SEC filings, please visit FSK's website. Speaking on today's call will be Michael Foreman, chief executive officer and chairman. Daniel Ryan Pietrzak, chief investment officer and president and Steven C. Lilly, chief financial officer. Also joining us on the call today are co chief operating officers Drew O'Toole and Ryan Wilson. I will now turn the call over to Michael.

Thank you, Anna, and good morning, everyone. Thank you for joining FSK's Third Quarter 26 Earnings Conference Call. During the third quarter, FSK generated net investment income totaling $0.46 per share and adjusted net investment income totaling $0.46 per share. As of September 30, our net asset value per share was $18.28. On October 8, we announced that our board declared a fourth quarter 20 distribution. Of $0.44 per share to common stockholders and a special distribution of $0.20 per share to common stockholders. Both distributions will be paid in December of this year. As we have indicated on prior earnings calls, we expect our quarterly distribution level will fluctuate as our net investment income varies on a quarter to quarter basis. The special distribution amount represents a portion of FSK's estimated accumulated spillback income and is intended to distribute additional taxable income to shareholders in connection with the company's maintenance of its treatment as a regulated investment company under the internal revenue code. Our third quarter net investment income was positively impacted by a 1-time portfolio company dividend, which Daniel will discuss during his portion of the call. In terms of FSK's strategic objectives, while we recognize there is more work to be done, we are pleased with the progress we are making. Since the stock buyback plan's inception on June 29, through October 30, we have purchased $90 million worth of common stock representing 30% of our $300 million program. The activity has resulted in the company's repurchasing approximately 8 million shares of common stock. We are continuing to achieve our goal of delivering a per share annualized dividend rate of 8% to 9%, of net asset value per share to our common shareholders. We are continuing to work through certain non income producing assets and investments facing challenges within our portfolio. And we are continuing our longer term focus of transitioning our investment portfolio to more first lien senior secured positions. As we move into the fourth quarter of 26 and begin contemplating the year ahead, we remain focused on achieving our strategic objectives. And with that, I will turn the call over to Daniel Ryan Pietrzak.

Thanks, Michael. The market environment continues to be shaped by uncertainty surrounding geopolitical tensions, monetary policy, and the evolution and capital requirements of AI. Against this backdrop, we believe economic and corporate fundamentals continue to demonstrate resilience. We believe private credit portfolios offer attractive characteristics in the current environment, including directly negotiated transactions, predominantly floating rate structures, and diversified exposure across issuers and industries. During the third quarter, we continued making progress on the strategic actions the FS/KKR Advisor announced earlier this year, to help enhance the financial profile of FSK. During the third quarter, we repurchased 6.2 million shares of common stock or approximately $69 million at an average price of $11.24 per share. Our third quarter share repurchases were accretive to our net asset value per share by $0.06 Since the beginning of the fourth quarter through October 30, we have repurchased 1.5 million shares or approximately $17 million bringing the cumulative value of share repurchases to $90 million since the $300 million common stock repurchase program commenced on June 29. And as a reminder, beginning in the second quarter of 2 thousand 26, KKR agreed to waive its portion of the subordinated income incentive fee for 4 consecutive quarters. This waiver had a positive $12 million impact on our third quarter net investment income. As Michael mentioned, during the third quarter, FSK's net investment income was positively impacted by a $25 million nonrecurring dividend from our portfolio company, Belk. This dividend increased our third quarter net investment income per share by $0.08 Turning to our investment activity. During the third quarter, we originated approximately $335 million of new investments. Our new investments combined with $442 million of sales and repayments equates to a net portfolio decrease of $107 million during the third quarter. We continue to focus on upper middle market companies with EBITDA in the $50 million to $150 million range. Across a diverse set of industries and sectors. As of September 30, the weighted average EBITDA of our portfolio was $235 million and the median EBITDA was $131 million Our portfolio companies reported a weighted average year over year EBITDA growth rate of approximately 4% across companies in which we have invested in since April 2018. Interest coverage levels remain healthy with median third quarter coverage of 2x. In August, Velocity Financial publicly announced its intention to acquire Toorak, a business purpose real estate lending platform. KKR originally invested in Toorak in 2016 and since that time has worked closely with Toorak's management team to scale the platform considerably. As of September 30, Romanu, the Toorak Holding Company, was FSK's eighth largest investment. The acquisition is currently expected to close in the fourth quarter of 2026. Subject to satisfactory closing conditions. As of September 30, nonaccruals represented 6.4% of our portfolio on a cost basis and 3.4% of our portfolio on a fair value basis. As compared to 7.1% of our portfolio on a cost basis and 3.8% of our portfolio on a fair value basis as of June 30. During the third quarter, 2 investments, Medallia Global and New Era Technology were added to nonaccrual status. These new nonaccruals total approximately $142 million of cost and $102 million of fair value across our investment portfolio. Medallia was restructured during the third quarter into a new $66 million first lien loan. A new $42 million preferred equity investment and a new $14 million common equity investment. Following the restructuring, Medallia was removed from nonaccrual status during the third quarter. We would like to remind investors that as with any restructuring, risk and uncertainties remain with respect to future performance. And with that, I will turn the call over to Steven to go through our financial results.

Thanks, Daniel Ryan Pietrzak. As of 09/30/2026, FSK's investment portfolio had a fair value of $11.3 billion consisting of 234 portfolio companies. At the end of the third quarter, our 10 largest portfolio companies represented approximately 21% of the fair value of our portfolio. Which is in line with prior quarters. We remain focused on senior secured investments, as our portfolio consisted of approximately 59% first lien loans and 63% senior secured debt as of September 30. In addition, our joint venture represented approximately 14% of the fair value of our portfolio, as of the end of the third quarter. As a result, when looking through to the investments in our joint venture, first lien loans total approximately 69% of our total portfolio, and senior secured investments total approximately 73% of our total portfolio as of September 30. The weighted average yield on accruing debt investments was 10.0% as of September 30, as compared to 9.8% during the second quarter. Turning to our quarterly operating results. Our total investment income was $294 million for the third quarter. An increase of $4 million compared to the second quarter. The primary components of our total quarterly investment income were as follows: Total interest income was $206 million representing a decrease of $11 million quarter over quarter. The decline in interest income primarily was due to a reduction in the size of our investment portfolio and assets placed on nonaccrual during the second and third quarters. Dividend and fee income totaled $88 million an increase of $15 million quarter over quarter. Our total dividend and fee income is summarized as follows. $44 million of dividend income from our joint venture other dividends from various portfolio companies totaling approximately $40 million during the quarter. Which includes a $25 million 1-time dividend from Belk and fee income totaling approximately $4 million during the quarter. Our net expenses were $167 million during the third which is a decrease of $1 million compared to the second quarter. The primary components of our net expenses were as follows: Our interest expense totaled $99 million, a decrease of $2 million quarter over quarter. Our weighted average stated interest rate on borrowings was 5.6% as of September 30. Management fees totaled $42 million a decrease of $2 million quarter over quarter. As Dan mentioned, for the second of 4 consecutive quarters, KKR waived 100% of its portion of the subordinated income incentive fee. This waiver applies to 50% of the subordinated income incentive fee that otherwise would be paid. Net of this waiver, income incentive fees totaled $11 million a decrease of $1 million compared to the second quarter. Other expenses totaled $13 million increase of $2 million quarter over quarter. Primarily due to an increase in certain deal costs and professional expenses. Lastly, we incurred $2 million of excise tax during the third quarter, in conjunction with the finalization of 2025 tax items related to certain international and asset-backed finance investments. The detailed bridge in our net asset value per share on a quarter over quarter basis is as follows. Our ending 2Q 26 net asset value per share of $18.30 was increased by GAAP net investment income of $0.46 per share and was decreased by $0.19 per share due to a decrease in the overall value of our investment portfolio. Our net asset value per share was reduced by our $0.44 per share quarterly common stock distribution and our $0.10 per share quarterly preferred stock distribution on a common stock equivalent basis paid during the quarter. Our net asset value per share was increased by $0.16 per share due to share repurchases. The sum of these activities results in our 09/30/2026 net asset value per share of $18.28. From a forward-looking perspective, for the fourth quarter of 26, we currently expect our GAAP net investment income per share to be in the range of 8% to 9% of net asset value per share on an annualized basis. We encourage investors to consider that the third quarter Belk dividend was nonrecurring and that the fourth quarter is when FSK typically recognizes its annual excise tax provision. In addition to these items, we expect the fourth quarter will be positively impacted by a dividend from portfolio company JW Aluminum, approximating $17 million. We remind investors that the portfolio activity Daniel described as well as market based future risks and uncertainties could cause our anticipated fourth quarter 26 results to differ from this guidance. As of September 30, our debt to equity and net debt to equity levels were 127%, 125%, respectively, compared to 127%, 122% as of June 30. At the end of the third quarter, our available liquidity was $3.4 billion and approximately 73% of our drawn balance sheet and 49% of our committed balance sheet was comprised of unsecured debt. And with that, I will turn the call back to Michael for a few closing remarks. Before we open the call for questions.

Thanks, Steven. We believe the third quarter represents another step forward in the goals we outlined earlier this year. We are encouraged by our progress, but we recognize there is still more work to do. Looking ahead, we remain focused on advancing our portfolio rotation efforts. Repurchasing shares, and delivering long term value for shareholders. As always, we appreciate your participation in the call today. And for your interest in FSK. Operator, we would now like to open the line for questions.

Thank you. At this time, we will conduct a question and answer session. For your name to be announced. To withdraw your question, please press 1-1 again. Our first question comes from the line of Finian O'Shea of Jefferies. Your line is now open.

Good morning, guys, and thanks for taking my questions. And Steven C. Lilly, thanks for the detail about Q4. First question is, within your portfolio, what is the what is the maturity cadence over the next 2 years? And is there any industry specific composition you can call out? I guess software would be of interest predominantly, but anything else in terms of the industry composition during that period of time?

Hey, good morning, John. Thanks for the question. Ballpark, 25% of the portfolio would be sort of between now and 2028. You know, you probably expect considering when if you kind of tie that back to origination dates. Yeah. I think from a conceptual perspective, you know, I am probably a little bit less worried about you know, the maturity wall concept in general, but I think we are focused on that on the software space. Obviously, there is been a seismic shift there in terms of you valuations where the debt market is going to take of new deals or refis of existing deals. So you know, I think outside of software, probably not that worried. Inside of software, I think it is clearly on our mind. And I suspect it is on the mind of many others. And then you know, I guess, thinking about your pipeline and outlook for deployment activity, anything moving with you know, bid ask spreads or terms, you know, I guess, particularly in light of you know, interest rate uncertainty and geopolitical uncertainty? Yeah. I will take that in a couple different pieces. Right? I think the market is definitely, I would say, wider than it was at the start of the year. And I would attribute that mainly to the activity or the redemption activity in the non traded BDC space. I think at least in our opinion, I think spreads probably have gone 100 basis points wider including OID, the sort of up-front fees. And it is since given sort of some of that back, but probably 50 basis points wider versus the start of the year. And I would say yeah, overall tone or you know, a little bit more lender friendly than sort of borrower-friendly. And, obviously, you know, not just the redemptions, but the rest of the stuff going on kind of macro. Geopolitical helps that. You know, I think in terms of FSK specifically, obviously, we are a little less focused on deployment. You know, more focused on getting the buyback plan done, more focused on getting leverage inside the target. So the number of even our new deals or kind of new deployment this quarter was a little bit skewed by 1 transaction that was committed to in 2025. That actually funded this quarter. So, you know, I think the market did a little bit better. I think where we are at now is focused on the things we sort of talked about. Know, at some point, that dynamic will change. We will get a, you know, a little bit more kind of fresh new deal flow in here. Hopefully generate a little bit more on the upfront fee side as well.

Great. Thanks very much. Yep.

Have a good day. You. Our next question comes from the line of Rick Shane of JPMorgan. Line is now open.

Hey, guys. Thanks for taking my questions. John really stuck the landing in terms of what I wanted to ask. But look, the comment about focusing on continuing to delever and at the same time buy back stock through paydowns makes sense. I am curious now that we are starting to see book value stabilize. You realized a lot of losses in the third quarter but did not hit book. So suggesting your reserve levels or your reserve levels, your marks are appropriate. that is good execution. What do you think the time frame realistically to starting to deploy capital again on an sort of a net basis looks like?

Is that a 2028 time frame? Yeah. it is a fair question. I appreciate the question. You know, I think we have been pretty consistent in, you know, in either conversation or, you know, talking about it on the last couple of calls. You know, it is important for us to get the buyback done. I think we wanna manage that buyback with also kind of being in the right leverage kind of ZIP code. Right? I think we have we have talked about our leverage target. it is kind of 1 to 1 in a quarter. We have gotten it down at least versus, say, 2 quarters ago. You know? So I. that is probably playing out, you know, John, over the course of 27. Is my guess. Right? You think about both getting the repurchase program done as well as getting within 500 leverage number. Now there are things that I think are you know, good results, like we had a very good investment or experience with the Torac investment. We started that in 2016. The company grew meaningfully. Know, well beyond anybody's expectations in terms of value, but it felt like a good time. For that company to take its next step and sort of monetize. So I probably think about it over the course of, you know, the next 5 quarters. Got it.

And, Daniel Ryan Pietrzak, I do realize the irony of me asking questions about growth and, sort of glossing over the commitment on the buyback. So I do appreciate you know, where you guys are sort of what you are moving through.

No. I appreciate that comment. Thank you.

Thanks, guys.

Thank you. Thank you. Our next question comes from the line of Finian O'Shea of Wells Fargo Securities. Your line is now open.

Hi, everyone. Good morning. So, Steven, I think you mentioned you had a more complete picture of spillover from the asset-backed finance vehicles. Any color you could give on that as to where you are if we would. If we might expect future specials or this is it and if you will, maybe arrange on the fourth quarter tax item.

Finian O'Shea, good morning. You know, I think when you consider in our last 10 ks, I think we said spillover was $464 million You know, we paid $2 million of excise in this quarter. So that would imply that balance is a little bit higher when you do that math. And then we also paid the announced the special distribution of $0.20 a share. So you are sort of settling still in the top end of the range. You know? And we will publish the spillover for the end of 26, you know, when we file our 10 k, you know, in February. So that number will come out then But still would say from a guidance standpoint, you are more at the top end of the range. So I would probably just leave it leave it there for now.

Okay. That. that is helpful. Thanks. And then just a follow-up on sort of the overall progress that continues. You guys talked a bit about Should we think about the fee waivers as, you know, more straightforwardly this 1-time 1 year event or as they lapse do you do you all contemplate a more permanent change after that?

Yeah. Good morning. I will take that 1. Obviously, we are in the second quarter of that, the second quarter of the announced sort of 4 quarters. Know, I think we are know, happy we sort of did that. I think we are happy with the overall package of you know, items we did, you going back now sort of 2 quarters think we will obviously you know, have that conversation, you know, with the board kind of as appropriate as kind of required on that annual basis. But, you know, right now, I think we are only 2 quarters in. And I think we are happy with some of the progress that we have been able to make across the portfolio, but I think we acknowledge that there is more work to do, and that is what we are focused on.

So it ties to the portfolio progress as to whether it is sort of just this 1 time?

You know, it. Obviously, you know, I think it is-- they are hard to, in some ways, you know, then the entirety of the situation. Right? I would not say it ties directly to the portfolio process. My point being you know, more that you know, we are 2 quarters into the 4 quarters being announced. We obviously discuss fees with the board on an annual basis. But I think we singularly, on our side as a team, are focused on you know, the portfolio and the work we have to do.

Very good. I appreciate that. Thank you.

Thanks. Have a good day. Thank you. Our next question comes from the line of Arren Cyganovich of Truist Securities. Your line is now open.

We cannot hear you. Yes. Thank you. Apologies. I want to touch on the portfolio management And non accruals that have already come through. You had a couple new ones this quarter. what is in the watch list in I know it is hard to say when things go bad or not, but do you feel like you have gotten a good handle in terms of you know, maybe limiting some of these new non accruals as you are kind of working through the portfolio going forward?

Yes, I am happy to take that. I think you are correct, credit book does move. And, you know, some sort of change of quarter on quarter. So you know, that said, I think you can, you know, look at kind of our you know, risk rating threes and fours as probably a fair description of watch list names. I think if you think about some of the specific events of the quarter, you know, I think you know, speaking for ourselves, but I suspect the other vendors as well, we were happy to get Medallia restructuring done to try to get to the next you know, phase for that company. You know, Medallia is 1 of the names that would be kind of in that software space with some AI risk around it. The team is very active in trying to work on to the next steps there. You know, New Era is more of an IT integration, kind of added services business. I think there is really operational points there more than anything else. But, again, kind of the team and other lenders in that kind of position focused on that. So you know, I think, you know, active across the board feel like we have had, you know, some good progress on some of the other names that we may have talked about in the past, but I think we are mindful that you know, things can change or you know, the world is a pretty volatile place right now. And, you know, we gotta get some of these positions to the other side.

And maybe just to talk about it from standpoint of your platform beyond this BDC? You know, what are you seeing I imagine that you are still originating and you are you know, still you are doing all of the more forward looking and forward actions in other vehicles. What are you seeing from the market from that standpoint? And maybe just some thoughts on some of the trends you are you are seeing currently?

Yeah, maybe a couple of points. I mean, you are correct, right? I mean, we are quite active in the market. You know, through, you know, other pools of capital that, you know, FSA has historically invested alongside of or still does maybe just in much, much smaller size. I do go back to what I, you know, said on. I think it was John's question. You know, the overall tone of the market definitely a little bit more lender friendly than it was sort of prior. I think that is good to see. Know, I think the team, you know, for most of this year, probably felt pretty light in terms of new deal flow you know, kind of broad stroke across the board. I am not sure that is entirely surprising considering you know, Iran and still this lingering inflation. Yeah. I think we are getting a bit busier or there is a, you know, a bit more kind of activity you know, more kind of inbound on books being prepared, companies trying to be sold. But, yeah, I think the market is still missing know, what I think we have all been expecting, you know, a healthy amount of deal flow sponsors selling businesses And I think that is just gonna take some time, or it is gonna. The kind of bid of price is gonna sort of narrow or need to narrow. You know? So what I think I think we are out of the business of forecasting, you know, when M&A is gonna come back in a in a normal sort of sense. But you know, at some point, I think some of these things will have to come to market. You will have to see some of the activity stuff. And maybe the only other comment just for your benefit. You would have to you know, even, you know, we will call it the opposite side of maybe the redemptions in the space. We have seen a strong either continued interest or maybe a little bit greater interest from the institutional side on investing in the space, On the investor side.

On that last comment is the institutional interest you know, remaining kind of at that level? I know, kind of, you know, picked up in the summer and, you know, early fall whenever spreads were Yeah.

I think it is remained. Seems like. Okay.

Great.

Thank you. I think it is remaining. Obviously, the there is a little bit of a tailwind to on a rate sticking up. Right? So Yep.

Absolutely. Thank you.

Thanks for your questions. Have a good day. Thank you. Our next question comes from the line of Robert Dodd of Raymond James. Your line is now open.

Hi, guys, and congratulations on the stable quarter. I got a question on the asset backed finance side of the book. Right? I mean, if I look at it in the just do the math. Right? You had 11.6% of the portfolio at the end of Q3. But with Toorak, Romano, whatever I am supposed to call it, getting acquired in Q4. Mean, you could end the year potentially in the single digits on that side of the business. They call it, you know, 10% ish. Is that like, is that the new plan? Right? I you have talked about going to more first lien. I mean, is the plan to shrink the ABS component in the book, which may not be as well understood by investors because it is different from a lot of other BDCs do. Is it the plan to shrink that? Or is this just a temporary low in terms of allocation to the asset-backed finance strategy?

Yeah. Hey. Good morning. I would not classify it as an active focus on shrinking it. I think we have historically talked about it in the range of 10% to 15%. I think you should expect that range to sort of continue Obviously, we are we are you know, constantly managing the any other BDC, the 30% bucket as well. And as we are kinda shrinking, you know, certain assets are taking repayments to buy back shares and sort of delever. So I think it is part of the whole calculus. But I would not think about it as an active sort of piece. I think we have seen good performance in that part of our of our portfolio. We think that market place itself remains quite interesting from a risk adjusted return perspective. You know? So it is. But I just constantly have that 10% to 15% range. Got it.

Got it. Thank you. I mean, on that, just on. Remember, I mean, obviously, there is about a $40 million gap between your fair value and your cost basis this quarter. I mean, on the acquisition price, is that basically that is baked into the fair value, or is the acquisition price potentially higher than you have had it marked at Q3?

Yeah. I will actually go check the specifics on that and circle back. I mean, I think the business has historically been a strong sort of dividend payer for us. So I wanna check on some of that sort of piece. But you know, I think kind of overall, you know, result of the investments you know, considering when we started that business, I think we thought we would have originated a billion dollars of assets. I think the company's done $14 billion or $15 billion by this point. You know? And they have done a good job. I think it was just the you know, we have owned it for 10 years, I think, both for the company's benefit. I think from time to time, it is good to rotate out of these things. It was sort of proper to sell. But I will come back on that sort of specific point.

Here.

Got it. Thank you. 1 more if I can real quick flipping the other end on what is normally non income producing equity, JW Aluminum, but it is gonna pay a dividend in the fourth quarter. Mean, business continues to do very well. I know I have asked you about this before, but, like, you know, yes, the M and A market's slow, but that is a good business. it is not AI exposed. Maybe it is gonna use aluminum to build the skeletons for a robot overlords. But you know, that seems like exactly the kind of business that would be attractive to a buyer right now. Is there any have there been any inquiries or any interest more recently in you monetizing that business?

Yeah. it is-- I think your point is not unfair. I think we have been very happy with performance there. I think the team has done a good job over a long period of time you know, and the management team today is doing a good job. There are kind of tailwinds there to your point. You know, probably difficult to comment on if there is any you know, inbound interest, but I do not think you are incorrect in the sense that, you know, with those tailwinds, with it not being AI, it is probably not a bad fact. I would note you know, this is the fourth or fifth, you know, dividend the business has paid in the last handful of years it is not necessarily every quarter, but considering performance, it is becoming a little bit more of a consistent fact or recurring fact than sort of a 1 off fact. I just would note that.

Yep. Fair enough. Fair enough. Thank you.

Okay. Have a good day. Thank you. I am showing no further questions at this time. I would now like to turn it back to Daniel Ryan Pietrzak for closing remarks.

Thank you. And thank you, everyone, for your time today. If there are any follow-up points, please do not hesitate to reach out to the team. We look forward to speaking with you on our next quarterly call. Have a good day.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.