Kkr Reit (KREF)
NYSE:KREF
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Kkr Real Estate Finance
(NYSE:KREF)
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Rating:49Neutral
Price Target:
$6.00
▼(-3.54% Downside)
Action:ReiteratedDate:02/06/26
KREF scores below average primarily due to deteriorating profitability and elevated leverage, reinforced by bearish technicals (below key moving averages with negative momentum). Offsetting factors include resilient cash generation, strong liquidity and financing flexibility discussed on the call, and a very high dividend yield—though dividend uncertainty limits the benefit.
Positive Factors
Liquidity & Financing Flexibility
A large liquidity buffer, substantial undrawn capacity and long‑dated facilities materially reduce rollover and refinancing risk. This durable financing flexibility gives management time and optionality to execute loan workouts, originations and the REO resolution plan without forced asset sales under distressed timing.
Negative Factors
Asset‑Quality Risk (Life Sciences)
Concentrated exposure to life science loans—where recoveries can take multiple years—has already required material CECL additions and loan downgrades. Prolonged recoveries or required principal concessions would exert lasting pressure on book value, distributable earnings and the pace of deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Liquidity & Financing Flexibility
A large liquidity buffer, substantial undrawn capacity and long‑dated facilities materially reduce rollover and refinancing risk. This durable financing flexibility gives management time and optionality to execute loan workouts, originations and the REO resolution plan without forced asset sales under distressed timing.
Read all positive factors
Kkr Real Estate Finance (KREF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$402.26M
Dividend Yield11.33%
Average Volume (3M)1.85M
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-24.37%
EPS Growth-19.19%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.22
Shares Outstanding64,275,640
10 Day Avg. Volume2,618,295
30 Day Avg. Volume1,845,018
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.47
Price to Sales (P/S)1.20
P/FCF Ratio8.23
Enterprise Value/Market Cap12.45
Enterprise Value/Revenue10.94
Enterprise Value/Gross Profit12.39
Enterprise Value/Ebitda18.22
Forecast
1Y Price Target
$8.63Price Target Upside38.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.53
Revenue Forecast (FY)$114.53M
Kkr Real Estate Finance Business Overview & Revenue Model
Company Description
KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investmen...
How the Company Makes Money
KREF primarily makes money from net interest income generated on its real estate debt investments. It originates or acquires floating-rate and/or fixed-rate commercial mortgage loans (typically senior loans) and earns interest based on the loan’s ...
Kkr Real Estate Finance Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Neutral
The call described meaningful progress on liquidity, financing, geographic diversification, and targeted portfolio actions (including share repurchases and plans to unlock REO value), but also disclosed near-term headwinds including a GAAP net loss, $44M of incremental CECL provisions, watch-list and life science asset risk, and expected earnings pressure in 2026 while management executes an aggressive resolution strategy. The company’s strong liquidity, financing flexibility, and clear remediation plan are positives, yet the immediate earnings and asset-quality challenges create notable near-term uncertainty.Positive Updates
Strengthened Liquidity and Financing Flexibility
Ended 4Q25 with over $880M of liquidity (including $85M cash, $74M servicer-held repayments and $700M undrawn revolver). Total financing capacity of $8.2B with $3.5B undrawn and 74% of financing non-mark-to-market; no final facility maturities until 2027 and corporate debt due 2030.
Negative Updates
GAAP Net Loss and Negative EPS
Reported a GAAP net loss of $32M for 4Q25, equivalent to negative $0.49 per share, indicating near-term GAAP earnings weakness despite positive distributable earnings.
Read all updates
Q4-2025 Updates
Positive
Negative
Strengthened Liquidity and Financing Flexibility
Ended 4Q25 with over $880M of liquidity (including $85M cash, $74M servicer-held repayments and $700M undrawn revolver). Total financing capacity of $8.2B with $3.5B undrawn and 74% of financing non-mark-to-market; no final facility maturities until 2027 and corporate debt due 2030.
Read all positive updates
Company Guidance
KKR Real Estate Finance Trust said 2026 will be a transitional year as it implements an aggressive resolution strategy for REO, watch‑list and select office assets, aiming to unlock roughly $0.13 per share from REO while acknowledging near‑term pressure on earnings; management expects full‑year repayments of over $1.5 billion in 2026 (up from $1.5B in 2025) and will recycle capital into new originations while remaining at the high end of its target leverage (debt‑to‑equity 2.2x; total leverage 3.9x) and a weighted average risk rating of 3.2. The company finished Q4 with book value $13.04, GAAP net loss $(32)M (‑$0.49/share), distributable earnings $14M ($0.22/share) and paid a $0.25 cash dividend; Q4 originations were $424M versus $380M of repayments (2025 originations totaled $1.1B vs $1.5B repayments). Liquidity remains strong at >$880M (including $85M cash, $74M servicer‑held repayments and $700M undrawn revolver), total financing capacity $8.2B (≈$3.5B undrawn), 74% of financing non‑mark‑to‑market, a $650M 7‑year Term Loan B at SOFR+250bps, a $700M revolver, no final facility maturities until 2027 (corporate debt due 2030), Q4 incremental CECL of $44M, and ~$47M remaining on the share buyback authorization; the Board is actively evaluating the dividend as capital allocation decisions are made.Kkr Real Estate Finance Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
40
Negative
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 457.96M | 592.62M | 660.19M | 436.51M | 285.76M |
| Gross Profit | 404.40M | 543.02M | 620.34M | 399.08M | 256.11M |
| EBITDA | 274.92M | 448.47M | 427.86M | 273.75M | 252.31M |
| Net Income | -47.05M | 35.59M | -30.85M | 38.10M | 137.18M |
Balance Sheet | |||||
| Total Assets | 6.46B | 6.35B | 7.55B | 7.80B | 6.70B |
| Cash, Cash Equivalents and Short-Term Investments | 84.62M | 104.93M | 135.90M | 239.79M | 271.49M |
| Total Debt | 4.69B | 4.90B | 6.06B | 6.16B | 5.29B |
| Total Liabilities | 5.24B | 4.95B | 6.14B | 6.23B | 5.34B |
| Stockholders Equity | 1.17B | 1.35B | 1.40B | 1.57B | 1.36B |
Cash Flow | |||||
| Free Cash Flow | 66.70M | 124.46M | 153.85M | 139.46M | 124.79M |
| Operating Cash Flow | 72.28M | 132.56M | 155.72M | 141.13M | 124.79M |
| Investing Cash Flow | 264.29M | 1.12B | 13.49M | -1.18B | -1.54B |
| Financing Cash Flow | -355.78M | -1.29B | -271.51M | 1.01B | 1.58B |
Kkr Real Estate Finance Technical Analysis
Negative
6.22
Price Trends
6.80
Negative
7.31
Negative
7.79
Negative
Market Momentum
-0.21
Negative
44.26
Neutral
25.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KREF, the sentiment is Negative. The current price of 6.22 is below the 20-day moving average (MA) of 6.29, below the 50-day MA of 6.80, and below the 200-day MA of 7.79, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KREF.
Kkr Real Estate Finance Risk Analysis
Kkr Real Estate Finance disclosed 86 risk factors in its most recent earnings report. Kkr Real Estate Finance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kkr Real Estate Finance Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
59 Neutral | $615.08M | 11.32 | 5.52% | 10.48% | -10.86% | -5.90% | |
54 Neutral | $684.16M | 9.99 | 5.60% | 13.31% | -0.93% | -1.92% | |
49 Neutral | $402.26M | ― | -3.80% | 11.33% | -24.37% | -19.19% | |
48 Neutral | $707.44M | -8.93 | -5.86% | 13.13% | 34.68% | -251.91% | |
46 Neutral | $260.61M | -1.57 | -12.90% | 26.82% | -43.56% | -166.72% | |
43 Neutral | $328.11M | -0.88 | -28.06% | ― | -65.32% | -325.73% |
* Real Estate Sector Average
KREF
Kkr Real Estate Finance
6.22
-1.72
-21.65%
RWT
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RC
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1.60
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-62.59%
TRTX
Tpg Re Finance
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25.80%
FBRT
Franklin BSP Realty Trust
8.45
-1.59
-15.86%
CMTG
Claros Mortgage Trust
2.34
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.