Distributions

12 Months Ended

Dec. 31, 2025

The following tables reflect the cash distributions per share that the Company has declared on its Common Shares during the years ended December 31, 2025, 2024 and 2023:

For the Year Ended December 31, 2025

Date Declared

Distribution

Record Date

Payment Date

Distribution per Share

January 10, 2025

Regular

January 31, 2025

February 26, 2025

0.250

February 11, 2025

Regular

February 28, 2025

March 27, 2025

0.250

March 10, 2025

Regular

March 31, 2025

April 28, 2025

0.250

March 10, 2025

Special

March 31, 2025

April 28, 2025

0.100

April 14, 2025

Regular

April 30, 2025

May 28, 2025

0.250

May 9, 2025

Regular

May 30, 2025

June 26, 2025

0.250

June 6, 2025

Regular

June 30, 2025

July 29, 2025

0.250

July 14, 2025

Regular

July 31, 2025

August 27, 2025

0.250

July 31, 2025

Regular

August 29, 2025

September 26, 2025

0.250

August 28, 2025

Regular

September 30, 2025

October 29, 2025

0.250

October 8, 2025

Regular

October 31, 2025

November 25, 2025

0.250

October 30, 2025

Regular

November 28, 2025

December 29, 2025

0.250

December 5, 2025

Regular

December 31, 2025

January 28, 2026

0.225

Total

3.075

For the Year Ended December 31, 2024

Date Declared

Distribution

Record Date

Payment Date

Distribution per Share

January 5, 2024

Regular

January 31, 2024

February 27, 2024

0.24

February 20, 2024

Regular

February 29, 2024

March 26, 2024

0.24

March 7, 2024

Regular

March 28, 2024

April 26, 2024

0.25

April 3, 2024

Regular

April 30, 2024

May 29, 2024

0.25

May 2, 2024

Regular

May 31, 2024

June 26, 2024

0.25

June 11, 2024

Regular

June 28, 2024

July 29, 2024

0.25

June 11, 2024

Special

June 28, 2024

July 29, 2024

0.10

July 11, 2024

Regular

July 31, 2024

August 28, 2024

0.25

July 31, 2024

Regular

August 30, 2024

September 26, 2024

0.25

September 16, 2024

Regular

September 30, 2024

October 29, 2024

0.25

September 16, 2024

Special

September 30, 2024

October 29, 2024

0.10

October 10, 2024

Regular

October 31, 2024

November 26, 2024

0.25

November 7, 2024

Regular

November 29, 2024

December 27, 2024

0.25

December 12, 2024

Regular

December 31, 2024

January 29, 2025

0.25

December 12, 2024

Special

December 31, 2024

January 29, 2025

0.10

Total

3.28

For the Year Ended December 31, 2023

Date Declared

Distribution

Record Date

Payment Date

Distribution per Share

September 26, 2023

Regular

September 29, 2023

October 27, 2023

0.24

September 26, 2023

Regular

October 31, 2023

November 28, 2023

0.24

September 26, 2023

Regular

November 30, 2023

December 27, 2023

0.24

September 26, 2023

Regular

December 29, 2023

January 30, 2024

0.24

Total

0.96

Subject to applicable legal restrictions and the sole discretion of the Company’s Board, the Company intends to declare and pay regular cash distributions on a monthly basis. From time to time, the Company may also declare and pay special interim distributions in the form of cash or shares of its Common Shares at the discretion of the Company’s Board. These distributions have been or will be paid monthly to shareholders of record as of monthly record dates previously determined by the Company’s Board. Shareholders receive the distribution payments in cash or in Common Shares in accordance with their election under the Company’s distribution

reinvestment plan. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of the Company’s Board.

The Company may fund its cash distributions to shareholders from any sources of funds legally available to it, including proceeds from the sale of Common Shares in the Private Offering, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies. The Company has not established limits on the amount of funds it may use from available sources to make distributions. During certain periods, the Company’s distributions may exceed its earnings. As a result, it is possible that a portion of the distributions the Company makes may represent a return of capital. A return of capital generally is a return of a shareholder’s investment rather than a return of earnings or gains derived from the Company’s investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital) will be mailed to the Company’s shareholders. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all.

The following table reflects the sources of the cash distributions on a tax basis that the Company has paid on its Common Shares during the years ended December 31, 2025, 2024 and 2023:


	Year Ended December 31,
	2025				2024				2023
Source of Distribution	Distribution Amount		Percentage		Distribution Amount		Percentage		Distribution Amount		Percentage
Offering proceeds	$	—	—		$	—	—		$	—	—
Borrowings	—		—		—		—		—		—
Net investment income(1)	123,856		100	%	54,211		99	%	8,119		100	%
Short-term capital gains proceeds from the sale of assets	—		—		410		1	%	—		—
Long-term capital gains proceeds from the sale of assets	—		—		—		—		—		—
Non-capital gains proceeds from the sale of assets	—		—		—		—		—		—
Distributions on account of preferred and common equity	—		—		—		—		—		—
Total	$	123,856	100	%	$	54,621	100	%	$	8,119	100	%

________________

(1)During the years ended December 31, 2025, 2024 and 2023, 95.7%, 96.0% and 98.3%, respectively, of the Company’s gross investment income was attributable to cash income earned, 1.2%, 1.3% and 1.5%, respectively, was attributable to non-cash accretion of discount and 3.1%, 2.7% and 0.2%, respectively, was attributable to paid-in-kind, or PIK, interest.

The Company’s net investment income on a tax basis for the years ended December 31, 2025, 2024 and 2023 was $116,020, $55,568 and $9,875, respectively. As of December 31, 2025, 2024 and 2023, the Company had $0, $3,186 and $2,120, respectively, of undistributed net investment income and $2,393, $21 and $0, respectively, of accumulated capital gains on a tax basis.

The Company’s undistributed net investment income on a tax basis may be adjusted following the filing of the Company’s tax returns. The adjustment is in general due to tax-basis income received by the Company differing from GAAP-basis income on account of interests in partnerships held in its investment portfolio during such period.

The difference between the Company’s GAAP-basis net investment income and its tax-basis net investment income is primarily due to the reclassification of unamortized original issue discount and prepayment fees recognized upon prepayment of loans from income for GAAP purposes to realized gains or deferred to future periods for tax purposes, the reversal of the capital gains incentive fee accrued on unrealized gains, the reversal of non-deductible excise taxes and differences between income and expense recognition for GAAP and tax purposes.

The following table sets forth a reconciliation between GAAP-basis net investment income and tax-basis net investment income during the years ended December 31, 2025, 2024, and 2023:


	Year Ended December 31,
	2025		2024		2023
GAAP-basis net investment income	$	118,239	$	53,872	$	10,045
Reversal of capital gains incentive fee	1,481		1,076		390
Income subject to tax not recorded for GAAP	227		—		—
Excise taxes	—		234		73

Reclassification of unamortized original issue discount and prepayment fees	(2,828)		(109)		(405)
Other miscellaneous differences	(1,099)		495		(228)
Tax-basis net investment income	$	116,020	$	55,568	$	9,875

The Company may make certain adjustments to the classification of shareholders’ equity as a result of permanent book-to-tax differences. During the year ended December 31, 2025, the Company decreased capital in excess of par value and accumulated undistributed (distributions in excess of) net investment income by $52 and $1,930, respectively, and increased accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $1,982. During the year ended December 31, 2024, the Company decreased capital in excess of par value and accumulated undistributed (distributions in excess of) net investment income by $240 and $83, respectively, and increased accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $323.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.

As of December 31, 2025 and 2024, the components of accumulated earnings on a tax basis were as follows:


	December 31, 2025		December 31, 2024
Distributable ordinary income	$	—	$	3,186
Distributable realized gains (accumulated capital losses)	2,393		21
Unamortized organizational costs	(858)		(924)
Other temporary differences	(6,194)		(1,466)
Net unrealized appreciation (depreciation)(1)	23,932		12,175
Total	$	19,273	$	12,992

________________

(1)As of December 31, 2025 and 2024, the Company’s gross unrealized appreciation on a tax basis was $36,745 and $13,838, respectively. As of December 31, 2025 and 2024, the Company’s gross unrealized depreciation on a tax basis was $12,813 and $1,663, respectively.

The aggregate cost of the Company’s investments for U.S. federal income tax purposes totaled $2,596,699 and $1,052,681 as of December 31, 2025 and 2024, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis was $28,396 and $11,392 as of December 31, 2025 and 2024, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation (depreciation) from foreign currency forward contracts and foreign currency transactions.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 942
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

KKR FS Income Trust 10-K