KKR Financial Corp. (KFN)

[nickl]

10-25-2012

4:47PM KKR Financial beats by $0.20 (KFN) 10.29 +0.31 : Reports Q3 (Sep) earnings of $0.61 per share, $0.20 better than the Capital IQ Consensus Estimate of $0.41.

KFN's Q3 2012 results included net investment income of $90.0 mln, other income of $73.3 mln and non-investment expenses of $51.0 mln. Comparatively, KFN's third quarter 2011 results reflected net investment income of $86.6 mln, other loss of $29.3 mln and non-investment expenses of $17.9 mln.

Other income for Q3 of 2012 totaled $73.3 mln and primarily consisted of $72.4 mln of net realized and unrealized gains on investments. These were largely composed of realized gains from the disposition of certain high yield bond holdings, as continued credit spread tightening in both the high yield and leveraged loan markets drove asset prices higher during the quarter.

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