KKR Real Estate Finance Trust Inc. (NYSE:KREF), a real estate investment trust, disclosed its quarterly financial performance for the period ending June 30, 2024, today. The company released both an earnings statement and supplemental financial data, which are now accessible to the public.
The earnings release, which is not considered filed under Section 18 of the Securities Exchange Act of 1934 and is not to be incorporated into any registration statement or other document under the Securities Act of 1933, shows the company's performance over the past quarter. While specifics of the financial results were not detailed in the 8-K filing, the attached exhibits 99.1 and 99.2 contain the comprehensive earnings and financial information.
KKR Real Estate Finance Trust Inc., headquartered at 30 Hudson (NYSE:HUD) Yards in New York, operates under the real estate sector, specifically within the real estate investment trusts industry. The company, with a fiscal year ending December 31, is incorporated in Maryland and has its common stock and 6.50% Series A Cumulative Redeivable Preferred Stock listed on the New York Stock Exchange under the symbols KREF and KREF PRA respectively.
The report also contains forward-looking statements, which are based on current expectations and projections about future events. These statements are subject to change due to various factors that may be outside of the company's control. The company cautions that these forward-looking statements are only predictions as of the date of the report and that it does not undertake any obligation to update them, except as required by law.
In other recent news, KKR Real Estate Finance Trust (KREF) disclosed mixed financial results for the first quarter of 2024. The company reported a GAAP net loss of $8.7 million, contrasting with distributable earnings of $26.7 million. Despite the loss, KREF remains optimistic about its future lending activities, particularly in the life science and multifamily sectors.
BTIG assumed coverage on KREF, assigning a Buy rating and setting a price target of $11.50. The firm highlighted KREF's strategy in addressing portfolio challenges and its potential for a 25.6% one-year forward total return. KREF's recent dividend reduction from $0.43 per share to $0.25 per share was also noted as a proactive stance in managing its non-performing loans.
In other company news, KREF has a robust pipeline of over $20 billion and anticipates resuming lending in the upcoming quarters. The company's debt-to-equity ratio stands at 2.1, and it has liquidity of over $600 million. These recent developments provide insights into KREF's strategic initiatives and potential for value creation for shareholders.
InvestingPro Insights
In light of KKR Real Estate Finance Trust Inc.'s latest financial disclosures, insights from InvestingPro reveal a mixed financial landscape for the company. With a market capitalization of $701.46 million and a negative P/E ratio of -22.02, reflecting challenges in profitability, the company's financial health requires a closer look. Notably, KREF's robust revenue growth of 49.94% over the last twelve months as of Q1 2024, accompanied by a significant quarterly increase of 245.04% in Q1 2024, suggests a strong top-line performance. However, this growth is juxtaposed against the backdrop of a substantial dividend yield of 9.89%, which, while attractive to income-focused investors, may raise questions about the sustainability of payouts given the company's current earnings trajectory.
InvestingPro Tips highlight that analysts have recently revised their earnings expectations downwards and anticipate a sales decline in the current year. Additionally, concerns are raised as analysts do not expect the company to be profitable this year. Nevertheless, KREF's liquid assets surpassing short-term obligations provides some financial stability, and the company's significant dividend to shareholders remains a key feature of its investment profile. For those considering a deeper dive into KREF's financials, InvestingPro offers additional tips and metrics. Use the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to these valuable insights.
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