KKR Real Estate Finance Trust (KREF) Stock Overview
A mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets in the United States. More details
| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
KREF Community Fair Values
Create NarrativeSee what 8 others think this stock is worth. Follow their fair value or set your own to get alerts.
Analyst Price Targets
KKR Real Estate Finance Trust Inc. Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$7.36 |
| 52 Week High | US$9.98 |
| 52 Week Low | US$5.25 |
| Beta | 0.87 |
| 1 Month Change | 1.80% |
| 3 Month Change | 12.71% |
| 1 Year Change | -20.26% |
| 3 Year Change | -43.08% |
| 5 Year Change | -65.38% |
| Change since IPO | -66.74% |
Recent News & Updates
Narrative Update • Jun 17
KREF: Lowered Street Outlook And Dividend Cut Will Pressure Share Returns
Analysts have trimmed their average price target on KKR Real Estate Finance Trust by several dollars, reflecting updated views on fair value at about $6.50, a slightly lower discount rate, a very large revenue growth assumption, stronger profit margins around 48%, and a forward P/E near 8x. Analyst Commentary Recent Street research on KKR Real Estate Finance Trust points to a more cautious stance, with several firms trimming price targets and one downgrade to a more neutral rating.
Narrative Update • Jun 03
KREF: Future Returns Will Reflect Credit Quality And Earnings Visibility Reassessment
Analysts have reduced their average price target on KKR Real Estate Finance Trust by $2.50 to $7.00 as they reassess fair value, risk assumptions, growth expectations, profitability, and future P/E multiples in light of recent research updates from multiple firms. Analyst Commentary Recent research has generally taken a more cautious stance on KKR Real Estate Finance Trust, with several firms trimming price targets and at least one downgrade in rating.Narrative Update • May 14
KREF: Share Repurchases And Lower P E Assumptions Will Frame Future Returns
The analyst price target for KKR Real Estate Finance Trust has been reset from about $8.25 to roughly $6.33 per share, as analysts factor in updated assumptions around revenue growth, profitability, discount rates and future P/E multiples following a series of recent target cuts and a rating downgrade. Analyst Commentary Bullish Takeaways Bullish analysts appear to see value in KKR Real Estate Finance Trust’s reset price targets, suggesting the recent cuts bring expectations closer to current fundamentals and execution risks.Recent updates
Narrative Update • Jun 17
KREF: Lowered Street Outlook And Dividend Cut Will Pressure Share Returns
Analysts have trimmed their average price target on KKR Real Estate Finance Trust by several dollars, reflecting updated views on fair value at about $6.50, a slightly lower discount rate, a very large revenue growth assumption, stronger profit margins around 48%, and a forward P/E near 8x. Analyst Commentary Recent Street research on KKR Real Estate Finance Trust points to a more cautious stance, with several firms trimming price targets and one downgrade to a more neutral rating.Narrative Update • Jun 03
KREF: Future Returns Will Reflect Credit Quality And Earnings Visibility Reassessment
Analysts have reduced their average price target on KKR Real Estate Finance Trust by $2.50 to $7.00 as they reassess fair value, risk assumptions, growth expectations, profitability, and future P/E multiples in light of recent research updates from multiple firms. Analyst Commentary Recent research has generally taken a more cautious stance on KKR Real Estate Finance Trust, with several firms trimming price targets and at least one downgrade in rating.Narrative Update • May 14
KREF: Share Repurchases And Lower P E Assumptions Will Frame Future Returns
The analyst price target for KKR Real Estate Finance Trust has been reset from about $8.25 to roughly $6.33 per share, as analysts factor in updated assumptions around revenue growth, profitability, discount rates and future P/E multiples following a series of recent target cuts and a rating downgrade. Analyst Commentary Bullish Takeaways Bullish analysts appear to see value in KKR Real Estate Finance Trust’s reset price targets, suggesting the recent cuts bring expectations closer to current fundamentals and execution risks.Seeking Alpha • Apr 24
KKR Real Estate: A Dividend Cut And Book Value Dip Heightens Preferreds' Role
Summary KKR Real Estate Finance is set to slash its common dividend by 60%, now yielding 6.56%, and launched a $75M share repurchase program. KREF's book value fell 17.8% year-over-year to $11.87 per share, with shares now trading at a 48.7% discount to book value. Portfolio repositioning continues with office exposure reduced to 18% at the end of the first quarter. The mREIT is targeting reducing this below 10% by the end of 2026. I rate KREF as Hold due to persistent book value erosion and dividend instability, favoring the 9.12% yielding preferreds for risk-adjusted income. Read the full article on Seeking AlphaNarrative Update • Apr 22
KREF: Share Repurchases And Lower P E Assumptions Will Support Future Upside
Analysts have trimmed their price targets on KKR Real Estate Finance Trust, reflected in a fair value estimate easing from $9.50 to $8.25, citing updated assumptions for the discount rate, profit margins, and future P/E. Analyst Commentary Recent Street research on KKR Real Estate Finance Trust has focused on resetting expectations, with several firms revising price targets and one high profile downgrade.Narrative Update • Apr 08
KREF: Future Returns Will Hinge On Credit Quality Execution
Analysts have reduced the fair value estimate for KKR Real Estate Finance Trust from $13.00 to $9.50, citing recent price target cuts and a downgrade that reflect updated views on discount rates, growth assumptions, margins, and future P/E levels. Analyst Commentary Recent Street research on KKR Real Estate Finance Trust has centered on lower price targets and a downgrade, signaling a more cautious stance on valuation, earnings power, and P/E assumptions.Narrative Update • Mar 24
KREF: Share Repurchases Will Support Future Upside Despite Recent Downgrades
Analysts have trimmed their average price target for KKR Real Estate Finance Trust by about $0.10 as they factor in a higher discount rate and a lower profit margin outlook, while still assuming similar revenue growth and a slightly higher future P/E multiple. Analyst Commentary Recent Street research on KKR Real Estate Finance Trust has centered on modestly lower price targets and at least one rating downgrade, with analysts adjusting their views around risk, profitability, and valuation rather than making wholesale shifts in their long term narratives.Narrative Update • Mar 08
KREF: Share Repurchases And Stable Fundamentals Will Support Future Upside Despite Downgrades
Analysts have trimmed their average price target on KKR Real Estate Finance Trust by a small amount, reflecting recent target cuts of $0.25 to $0.50, along with more cautious views on the shares. Analyst Commentary Recent Street research on KKR Real Estate Finance Trust has centered on modest target trims and a more cautious tone, with several firms adjusting their models and ratings.Narrative Update • Feb 21
KREF: Higher Required Returns Will Support Upside Despite Recent Downgrades
Analysts have trimmed their price targets on KKR Real Estate Finance Trust by $0.25 to $0.50 per share. This reflects updated assumptions around discount rates, profit margins, and future P/E expectations.Narrative Update • Feb 06
KREF: Higher Assumed Future P/E Will Support Upside Despite Recent Downgrades
Analysts have trimmed their price targets on KKR Real Estate Finance Trust, with our fair value estimate shifting from $11.00 to $9.60 as they factor in updated discount rates, revenue expectations, profit margins, and a higher assumed future P/E multiple. Analyst Commentary Street research on KKR Real Estate Finance Trust has recently tilted more cautious, with several firms trimming price targets and at least one downgrade.
Narrative Update • Dec 26
KREF: Mixed Credit Normalization And Capital Deployment Will Shape Future Return Profile
Analysts have nudged their price targets on KKR Real Estate Finance Trust lower, trimming expectations by roughly $0.75 to $1.00 per share as they incorporate mixed Q3 credit performance; slower capital deployment amid lower originations and elevated repayments; and only modest improvements in long term profitability and growth assumptions. Analyst Commentary Bearish analysts are recalibrating their outlook on KKR Real Estate Finance Trust, reflecting a more muted return profile as near-term headwinds weigh on both earnings visibility and book value support.Narrative Update • Dec 12
KREF: Mixed Credit Trends And Capital Deployment Will Shape Future Risk Profile
Analysts have reduced their price target on KKR Real Estate Finance Trust by $1.00 to $8.50. This reflects mixed Q3 credit performance, lower originations amid elevated repayments, and a more selective pace of capital deployment, despite improving profitability metrics.Seeking Alpha • Feb 24
KKR Real Estate Finance: Discount To Book Value Could Tighten Further
Summary KKR Real Estate Finance is up 22% over the last year, now trading at a 24% discount to book value with a 9% dividend yield. KREF held $105 million in cash and cash equivalents with available liquidity at $685 million at the end of its fiscal 2024 fourth quarter. The mREIT is shifting its focus to a more aggressive loan origination stance to drive growth in 2025. KREF's preferreds offer an 8.2% yield on cost, providing greater protection against the specter of another dividend cut. The common dividend is 124% covered by distributable earnings before realized loss. Read the full article on Seeking AlphaSeeking Alpha • Dec 02
KKR Real Estate Finance: Look For Further Yield Compression On The Preferreds
Summary KKR Real Estate Finance's Series A Preferreds offer an 8% yield on cost and are trading at an 18% discount to their liquidation value. KREF's commons, down 6% over the last year, are trading at a 22% discount to book value. The mREIT's strong free cash flow supports its aggregate dividend by 213%. The Series A Preferreds are poised for recovery, supported by potential Fed rate cuts and a portfolio derisking, making them a core investment. Read the full article on Seeking Alpha
New Narrative • Sep 24
Real Estate Lending Strategy Boosts Credit Quality, Captures Market Share, And Ensures Robust Growth Amid Challenges
Lower loan-to-value ratios and more cash flow per unit of debt are expected to strengthen KKR Real Estate Finance Trust's credit quality and financial performance.Seeking Alpha • Sep 08
KKR Real Estate Finance: The Preferreds Are A Buy At Their 7.7% Dividend Yield
Summary KKR Real Estate Finance's common shares are trading hands at a 20.28% discount to book value with the preferreds trading for 84.6 cents on the dollar. The mREIT's distributable earnings cover its quarterly dividend payout by 160%. Book value per share saw sequential growth of 6 cents with liquidity also growing versus the prior quarter. Read the full article on Seeking AlphaSeeking Alpha • May 05
KKR Real Estate Finance: Discount To Book On Commons Quite Deep, The Preferreds A Buy
Summary KKR Real Estate Finance Trust's book value dipped by $0.34 sequentially in the first quarter of 2024. The mREIT generated distributable earnings of $0.39 per share and declared a $0.25 per share cash dividend for 156% coverage. There were two risk rating downgrades during the quarter, with the mREIT's 3.2 weighted average risk rating remaining unchanged sequentially. Read the full article on Seeking AlphaSeeking Alpha • Feb 09
KKR Real Estate Finance: CRE Anxiety Will Last Through 2024
Summary KKR Real Estate Finance has had to cut its quarterly dividend distribution by 42% due to insufficient coverage. The mREIT's book value dipped by 77 cents sequentially with the commons currently trading at a roughly 36% discount to book. It's now 10% dividend yield is still substantial. However, the new quarterly distribution is attached to the commons set to see material volatility in 2024. Read the full article on Seeking AlphaSeeking Alpha • Dec 27
KKR Real Estate Finance: Discount To Book Value Tightens, 12.2% Dividend Yield
Summary KKR Real Estate Finance has seen its discount to book value reduce to just 14%. The mREIT is now paying out a 12.2% dividend yield that was not fully covered by distributable earnings. Book value is set to see more near-term disruption as the Fed begins to cut interest rates. Read the full article on Seeking AlphaSeeking Alpha • Oct 08
KKR Real Estate Finance Trust: The 10% Preferred Shares Are A Speculative Buy
Summary KKR Real Estate Finance Trust preferred shares are yielding more than 10% as the share price continues to slide. KREF has been loss-making due to loan loss provisions, but distributable earnings remain robust. The asset coverage ratio and erosion of equity on the balance sheet are concerns, but the preferred dividend coverage ratio is strong. Read the full article on Seeking AlphaSeeking Alpha • Oct 02
KKR Real Estate Finance: 14.5% Yield, 28% Discount To Book Value, Risky Environment
Summary KKR Real Estate Finance has seen a 17% decline in its stock price this year, with concerns over the impact of higher interest rates on its loan portfolio. KREF's common equity is trading at a 28% discount to its book value, and its office exposure is under scrutiny due to the shift towards remote work. Despite the decline in book value, KREF's dividend yield remains stable, and its loan portfolio is mainly comprised of floating rate loans with a prudent loan-to-value ratio. Read the full article on Seeking AlphaSeeking Alpha • Jul 10
KKR Real Estate Finance Trust: 14% Yield, But There Are Better Options
Summary KKR Real Estate Finance has underperformed most of the commercial mortgage REITs. The yield is now 14% and backed by a high amount of multifamily and industrial properties. The asset to equity ratio is still too high for our liking and we explore better options. Read the full article on Seeking AlphaSeeking Alpha • Jan 07
KKR Real Estate Finance Trust: The Preferred Shares Are Yielding 9.3%
Summary KKR Real Estate Finance Trust invests in real estate-backed loans. Sometimes things go wrong, and the REIT had to record $80M+ loan loss provision in Q3 as two borrowers will likely default on their loans. While I think additional damage from here on should be limited, it does set the tone for a tougher path forward. The preferred shares are pretty shielded as the dividend and asset coverage ratio remains strong. Introduction When I last discussed KKR Real Estate Finance Trust (KREF), I didn't want to wait for the REIT to publish its Q3 results as I thought the preferred shares offered an interesting opportunity to pursue high yield at an acceptable risk. We are now almost three months later and I wanted to have another look at this interesting series of preferred shares, which are trading with (KREF.PA) as ticker symbol. Data by YCharts The Q3 results were pretty satisfying, but Q4 may be different KKR Real Estate Finance Trust originates and invests in transitional senior loans backed by real estate. As of the end of September, the average LTV ratio in the loan portfolio was approximately 67% but as you can see below, the total percentage of loans in the 70%+ LTV category has dropped from 34% to 30% on a QoQ basis. KREF Investor Relations There are two loans with risk category five, and KREF has been pretty transparent about these loans as they were highlighted in the Q3 presentation (see below) and on the Q3 conference call. KREF Investor Relations While the owner of the Philadelphia buildings is looking to refocus its business and KREF is looking into either selling the loan or the assets, KREF didn't appear to be too worried about the Minneapolis loan. From the Q3 conference call: the Minneapolis loan is secured by 1.1 million square foot, two building Class A property. Our loan supported the refinance remaining CapEx and subsequent lease up of the property from occupancy of 62% at closing to an occupancy rate of 88% today. NOI from the property generates a current debt yield of over 8%, fully covering the debt service on our loan. However, the loan has an upcoming final maturity date in December '22. And the sponsor has indicated an inability to refinance the loan given current market conditions. December is now behind us and unfortunately KREF has not provided an update yet on this loan, so I am looking forward to seeing the recent developments there and if KREF just plans to sell the office buildings. Impairment charges will weigh on the net income but the preferred shares should be pretty well shielded from that. As you can see below, KREF generated about $47M in net interest income in the third quarter of this year, resulting in a net loss of $43M after already taking a $80.6M impairment charge to cover future credit losses. KREF Investor Relations While this also means the preferred dividends were not covered based on the earnings and the net loss attributable to KREF's common unitholders exceeded $48M, keep in mind those loan loss provisions are non-cash expenses and have no impact on the REIT's ability to generate cash flow. Of course we cannot ignore that some of the loans go sour but keep in mind this will be predominantly borne by the common unitholders as the book value of the KREF common units will erode. Looking at the distributable cash flow for the third quarter, KREF's underlying distributable cash flow was approximately $34.4M or $0.50 per share. This means the common distribution of $0.43 per quarter is still fully covered by the distributable cash flows. KREF Investor Relations This means that by retaining $0.07 per quarter in distributable earnings it doesn't pay out, KREF retain approximately $10M per year in earnings which could be helpful to shore up the balance sheet. But what's more important from the perspective of a preferred share investor is the implication the preferred dividends are well covered. Adding back the preferred dividends ($5.33M) to the distributable earnings means the distributable earnings pre-dividends comes in at $39.7M. Which means KREF only needs 13.4% of its pre-dividend distributable earnings to cover the preferred dividends. Or even more important: even if KREF would have to realize losses of $130M per year, the preferred dividend would still be covered. Those losses would still be non-cash losses, but it explains how much in loan losses KREF can absorb with its recurring income. A recap of the preferred shares As explained in my previous article: KREF has one series of preferred shares available, which were issued in April 2021. The company issued cumulative preferred shares at the normal price of $25 and with a preferred dividend yield of 6.5%. This means these securities are paying $1.625 per year in preferred dividends, in four equal quarterly installments of $0.40625 and the preferred dividend yield will remain unchanged for as long as these securities remain outstanding. (KREF.PA) can be called by KKR Real Estate Finance Trust from April 2026 on. As the preferred shares are currently trading at $17.78, they currently offer a yield of $1.625 / $17.78 = 9.14%. While that is indeed lower than the 12% yielding common shares, keep in mind the preferred dividends are prioritized over the payments on common units. Additionally, KREF's preferred shares are cumulative in nature and in the event of a temporary suspension KREF would have to make its preferred shareholders whole for any missed payments before it would be allowed to pay a distribution on the common units. And just to be clear, there are no indications KKR Real Estate Finance Trust is contemplating a suspension as its Q3 results clearly showed it can easily cover all preferred dividend payments. Looking at the balance sheet, KREF's balance sheet contained just over $7.5B in assets of which almost $1.6B was equity. As there are about 13.1M preferred shares issued, the total value of the prefs is approximately $327.5M. Which means there's in excess of $1.35B in equity ranked junior to the preferred shares. KREF Investor Relations While that is a nice cushion, we shouldn't forget KREF's balance sheet is still highly levered. Interestingly, the vast majority of the loans is maturing in 2026 and beyond. Only 28% of the loans matures before 2026 and the existing loan loss provision of in excess of $100M should provide a decent cushion for near-term defaults. The image below shows the loan maturity dates. The $194M loan maturing in 2022 was the Minneapolis office loan I discussed earlier in this article. The other problem child, the 2023 Philadelphia loan, is included in the $392M maturing in 2023. KREF Investor Relations While maturities are spread out over time, it is perhaps not ideal to see about 60% of the 2022 and 2023 loan maturities are troubled loans. The other loans maturing before the end of this year are a $130M hospitality loan (risk category 3, 66% LTV) and an $81M office loan in Seattle (risk category 3, 56% LTV ratio) and hopefully these will roll off without any issues.Shareholder Returns
| KREF | US Mortgage REITs | US Market | |
|---|---|---|---|
| 7D | 4.7% | 0.6% | 0.8% |
| 1Y | -20.3% | -1.9% | 20.6% |
Return vs Industry: KREF underperformed the US Mortgage REITs industry which returned -1.9% over the past year.
Return vs Market: KREF underperformed the US Market which returned 20.6% over the past year.
Price Volatility
| KREF volatility | |
|---|---|
| KREF Average Weekly Movement | 5.3% |
| Mortgage REITs Industry Average Movement | 3.6% |
| Market Average Movement | 7.3% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: KREF has not had significant price volatility in the past 3 months compared to the US market.
Volatility Over Time: KREF's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2014 | n/a | Matt Salem | www.kkrreit.com |
KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets in the United States. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial real estate loans. The company has also elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.
KKR Real Estate Finance Trust Inc. Fundamentals Summary
| KREF fundamental statistics | |
|---|---|
| Market cap | US$473.25m |
| Earnings (TTM) | -US$121.22m |
| Revenue (TTM) | n/a |
-13.5x
P/S Ratio-3.9x
P/E RatioIs KREF overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KREF income statement (TTM) | |
|---|---|
| Revenue | -US$34.93m |
| Cost of Revenue | US$28.32m |
| Gross Profit | -US$63.25m |
| Other Expenses | US$57.97m |
| Earnings | -US$121.22m |
Last Reported Earnings
Mar 31, 2026
Next Earnings Date
Jul 21, 2026
| Earnings per share (EPS) | -1.89 |
| Gross Margin | 181.09% |
| Net Profit Margin | 347.06% |
| Debt/Equity Ratio | 390.2% |
How did KREF perform over the long term?
See historical performance and comparisonDividends
5.4%
Current Dividend Yield-54%
Payout RatioDoes KREF pay a reliable dividends?
See KREF dividend history and benchmarks| KKR Real Estate Finance Trust dividend dates | |
|---|---|
| Ex Dividend Date | Jun 30 2026 |
| Dividend Pay Date | Jul 15 2026 |
| Days until Ex dividend | 12 days |
| Days until Dividend pay date | 3 days |
Does KREF pay a reliable dividends?
See KREF dividend history and benchmarksCompany Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/07/12 01:45 |
| End of Day Share Price | 2026/07/10 00:00 |
| Earnings | 2026/03/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
KKR Real Estate Finance Trust Inc. is covered by 8 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| William Catherwood | BTIG |
| Arren Cyganovich | Citigroup Inc |
| Christopher Muller | Citizens JMP Securities, LLC |