Kkr Real Estate Finance Trust Inc (KREF)
NYSE:KREF
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Kkr Real Estate Finance
(NYSE:KREF)
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Rating:50Neutral
Price Target:
$6.00
▼(-10.31% Downside)
Action:ReiteratedDate:04/24/26
The score is held back primarily by deteriorating profitability and high leverage, alongside bearish price trends below key moving averages. These risks are partially offset by still-positive cash generation, a very high dividend yield, and an earnings-call plan supported by strong liquidity—though near-term credit costs, REO-related losses, and the dividend cut limit upside until execution improves results.
Positive Factors
Strong liquidity & financing availability
Large committed liquidity and broad financing capacity provide durable funding optionality as KREF executes portfolio turnover. With sizable undrawn revolver and multi-billion financing availability, management can absorb repayments, fund new originations, support REO monetizations and avoid forced asset sales while executing its multi-quarter transition plan.
Negative Factors
Elevated leverage
High leverage amplifies downside in a stressed credit cycle and constrains flexibility for reinvestment. With negative returns on equity in TTM, elevated debt levels increase sensitivity to further mark‑to‑market and credit losses, limiting the firm's ability to pursue opportunistic originations or absorb additional realized losses without diluting equity or cutting distributions further.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity & financing availability
Large committed liquidity and broad financing capacity provide durable funding optionality as KREF executes portfolio turnover. With sizable undrawn revolver and multi-billion financing availability, management can absorb repayments, fund new originations, support REO monetizations and avoid forced asset sales while executing its multi-quarter transition plan.
Read all positive factors
Kkr Real Estate Finance (KREF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$388.82M
Dividend Yield11.33%
Average Volume (3M)1.61M
Price to Earnings (P/E)―
Beta (1Y)0.56
Revenue Growth-20.03%
EPS Growth-1249.19%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)-0.06
Shares Outstanding64,300,415
10 Day Avg. Volume740,072
30 Day Avg. Volume1,606,757
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 Cap12.19
Enterprise Value/Revenue10.74
Enterprise Value/Gross Profit12.32
Enterprise Value/Ebitda33.77
Forecast
1Y Price Target
$7.17Price Target Upside7.13% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)-0.25
Revenue Forecast (FY)$105.93M
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:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Neutral
The call communicates a balanced but transitional outlook: management is taking decisive actions to resolve watch list assets, reduce legacy office exposure, monetize REO (notably Mountain View), and redeploy into newer, higher-quality vintages supported by substantial liquidity and a $75M buyback authorization. These positive strategic moves are tempered by meaningful near-term headwinds — a $62M GAAP loss, a 9% quarter decline in book value, a sizable $74M CECL provision, an expected ~$37M realized loss on a life science asset, and an announced dividend cut — which are likely to depress distributable earnings through late 2026 and into 2027. Overall, the company presents a credible path to stabilization but faces near-term pain as it executes the transition.Positive Updates
Strong Liquidity and Financing Availability
Reported liquidity of $653 million at quarter-end (including $135M cash and $500M undrawn revolver) with total financing availability of $7.2 billion (including $2.6B undrawn capacity); management expects over $500M of capital to invest driven by ~ $2 billion of expected repayments in 2026.
Negative Updates
GAAP Net Loss and Book Value Decline
Reported GAAP net loss of $62 million (negative $0.96 per share) for Q1 and book value per share declined 9% during the quarter to $11.87 per share, reflecting mark downs taken while repositioning the portfolio.
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Q1-2026 Updates
Positive
Negative
Strong Liquidity and Financing Availability
Reported liquidity of $653 million at quarter-end (including $135M cash and $500M undrawn revolver) with total financing availability of $7.2 billion (including $2.6B undrawn capacity); management expects over $500M of capital to invest driven by ~ $2 billion of expected repayments in 2026.
Read all positive updates
Company Guidance
Management characterized 2026 as a transition year with specific, metric-driven targets: reduce legacy office exposure from 21% to under 10% (over half via par repayments), resolve all watch‑list loans by year‑end, and rotate the portfolio so loans originated 2024–2026 represent ~50% of the portfolio by year‑end; they aim to modify 100% of life‑science exposure (19% modified to date, 30% including the Cambridge asset) and expect Boston life‑science to move to REO in Q2 with an estimated ~$37 million realized loss. Liquidity and financing metrics supporting the plan include $653 million of liquidity (cash $135M, $500M undrawn revolver), $500M+ of unencumbered assets, $7.2 billion total financing availability (including $2.6B undrawn), Q1 originations of $184M and repayments of $415M (≈75% driven by legacy office), and no final facility maturities until 2027 (no corporate debt until 2030); leverage stood at 4.0x total (debt/equity 2.2x). Capital allocation changes: quarterly dividend cut to $0.10 (payable July 15) from the $0.25 paid in April, Board authorization of a $75M share repurchase program, expectation of >$500M of investable capital funded largely by ~$2B of 2026 repayments, an expectation that $0.40/year of dividends can be covered by distributable earnings excluding realized losses (Q1 distributable loss -$0.06/sh; distributable earnings before realized losses $0.20/sh), and an estimate that REO monetizations could generate >$0.15/share of incremental quarterly earnings over time (about half from Mountain View); earnings are expected to trough in H2 2026 into H1 2027 before recovering.Kkr Real Estate Finance Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
46
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 441.66M | 457.96M | 592.62M | 660.19M | 436.51M | 285.76M |
| Gross Profit | 384.76M | 404.40M | 543.02M | 620.34M | 399.08M | 256.11M |
| EBITDA | 140.39M | 274.92M | 448.47M | 427.86M | 273.75M | 252.31M |
| Net Income | -98.33M | -47.05M | 35.59M | -30.85M | 38.10M | 137.18M |
Balance Sheet | ||||||
| Total Assets | 6.95B | 6.46B | 6.35B | 7.55B | 7.80B | 6.70B |
| Cash, Cash Equivalents and Short-Term Investments | 135.44M | 84.62M | 104.93M | 135.90M | 239.79M | 271.49M |
| Total Debt | 4.50B | 4.69B | 4.90B | 6.06B | 6.16B | 5.29B |
| Total Liabilities | 5.80B | 5.24B | 4.95B | 6.14B | 6.23B | 5.34B |
| Stockholders Equity | 1.10B | 1.17B | 1.35B | 1.40B | 1.57B | 1.36B |
Cash Flow | ||||||
| Free Cash Flow | 65.21M | 66.70M | 124.46M | 153.85M | 139.46M | 124.79M |
| Operating Cash Flow | 69.51M | 72.28M | 132.56M | 155.72M | 141.13M | 124.79M |
| Investing Cash Flow | 734.23M | 264.29M | 1.12B | 13.49M | -1.18B | -1.54B |
| Financing Cash Flow | -773.74M | -355.78M | -1.29B | -271.51M | 1.01B | 1.58B |
Kkr Real Estate Finance Technical Analysis
Neutral
6.69
Price Trends
6.51
Positive
7.19
Negative
7.71
Negative
Market Momentum
0.03
Negative
59.63
Neutral
90.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KREF, the sentiment is Neutral. The current price of 6.69 is above the 20-day moving average (MA) of 6.26, above the 50-day MA of 6.51, and below the 200-day MA of 7.71, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 90.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $655.04M | 11.32 | 5.52% | 10.48% | -5.45% | -23.46% | |
59 Neutral | $740.03M | 9.99 | 5.60% | 13.31% | 0.58% | -20.40% | |
51 Neutral | $302.95M | -1.57 | -12.90% | 26.82% | -45.86% | 45.59% | |
50 Neutral | $388.82M | -1.76 | -3.80% | 11.33% | -20.03% | -1249.19% | |
48 Neutral | $713.72M | 8.73 | -5.86% | 13.13% | 11.39% | -292.43% | |
43 Neutral | $365.97M | -0.49 | -28.06% | ― | 18.18% | -119.53% |
* Real Estate Sector Average
KREF
Kkr Real Estate Finance
5.88
-2.09
-26.19%
RWT
Redwood
5.75
0.39
7.24%
RC
Ready Capital
1.87
-2.39
-56.08%
TRTX
Tpg Re Finance
8.44
1.83
27.78%
FBRT
Franklin BSP Realty Trust
9.12
-1.17
-11.37%
CMTG
Claros Mortgage Trust
2.64
0.21
8.64%
Kkr Real Estate Finance Corporate Events
Executive/Board ChangesShareholder Meetings
KKR Real Estate Finance Shareholders Back Directors, Governance
Positive
Apr 16, 2026
At KKR Real Estate Finance’s 2026 Annual Meeting held on April 14, 2026, stockholders elected eight directors, including Terrance R. Ahern, Irene M. Esteves, and Matthew A. Salem, to serve until the next annual meeting and until their succes...
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.