KKR Real Estate Finance Trust Inc.
- Open
- 7.53
- Day high
- 7.54
- Day low
- 7.42
- Prev close
- 7.62
- Volume
- 75K
- Mkt cap
- $496M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.5
- P/S
- 1.2
- Yield
- 11.46%
- Per share
- $0.85
KKR Real Estate Finance Trust Inc. (KREF) is a Real Estate company listed on NYSE. The stock is down 20% over the past year. Drillr has 1 published research article covering KREF.
KKR Real Estate Finance Trust Inc. (KREF) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KREF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 22, 2026 | $-0.56 | $-0.58 | -3.3% | $21M | -16.1% |
| Apr 23, 2026 | $0.15 | $-0.06 | -139.8% | $35M | +23.0% |
| Feb 3, 2026 | $0.13 | $0.22 | +69.2% | $108M | +298.9% |
| Oct 21, 2025 | $0.01 | $-0.03 | -400.0% | $25M | -2.8% |
| Jul 22, 2025 | $-0.16 | $-0.53 | -231.3% | $119M | +267.3% |
| Apr 23, 2025 | $0.17 | $-0.15 | -188.2% | $31M | -11.0% |
| Feb 3, 2025 | $0.08 | $0.31 | +287.5% | $34M | +6.2% |
| Oct 21, 2024 | $0.31 | $0.40 | +29.0% | $37M | +3.8% |
| Jul 22, 2024 | $0.33 | $0.40 | +21.2% | $156M | +326.8% |
| Feb 6, 2024 | $0.45 | $0.47 | +4.4% | $44M | -5.4% |
| Jul 24, 2023 | $0.28 | $0.48 | +71.4% | $44M | -4.5% |
| Feb 7, 2023 | $0.49 | $0.18 | -63.3% | $49M | -4.5% |
KREF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Apr 27, 2026 | Mattson W Patrickofficer: President, COO and Secretary | Buy | 40,000 | $6.03 |
| Apr 27, 2026 | Salem Matthew Adirector, officer: Chief Executive Officer | Buy | 60,000 | $6.04 |
| Apr 16, 2026 | Langer Jonathan Adirector | Grant | 16,691 | — |
| Apr 16, 2026 | Madoff Pauladirector | Grant | 16,691 | — |
| Apr 16, 2026 | MCANENY DEBORAH Hdirector | Grant | 16,691 | — |
| Apr 16, 2026 | AHERN TERRANCE Rdirector | Grant | 16,691 | — |
| Apr 16, 2026 | ESTEVES IRENE Mdirector | Grant | 16,691 | — |
| Dec 22, 2025 | Salem Matthew Adirector, officer: Chief Executive Officer | Grant | 81,250 | — |
| Dec 22, 2025 | Galligan Kellyofficer: General Counsel and Secretary | Grant | 6,500 | — |
| Dec 22, 2025 | Mattson W Patrickofficer: President and COO | Grant | 73,500 | — |
| Dec 22, 2025 | Decious Kendraofficer: CFO and Treasurer | Grant | 24,000 | — |
| Dec 3, 2025 | ROSENBERG RALPH Fdirector | Sell | 125,289 | $8.25 |
| Nov 10, 2025 | Salem Matthew Adirector, officer: Chief Executive Officer | Buy | 32,000 | $7.84 |
| Nov 10, 2025 | AHERN TERRANCE Rdirector | Buy | 23,700 | $7.81 |
| Nov 10, 2025 | Lee Christen E.J.director | Buy | 10,000 | $7.80 |
Source: KREF SEC Form 4 filings, latest Apr 27, 2026. For informational purposes only — not investment advice.
See the full KREF insider & 13F page →KKR Real Estate Finance Trust Inc. company profile
Overview
KKR Real Estate Finance Trust Inc. (NYSE:KREF) is a mortgage real estate investment trust (REIT) that was incorporated in 2014 and went public in May 2017. The company is headquartered in New York and operates as the commercial real estate lending arm of KKR & Co., one of the world's largest alternative asset managers. KREF focuses on originating and acquiring senior loans secured by commercial real estate assets, leveraging KKR's broader real estate platform which manages approximately $80 billion in real estate assets globally. As a REIT, the company is required to distribute at least 90% of its taxable income to shareholders to maintain its tax-advantaged status.
Business
KKR Real Estate Finance Trust operates in the commercial mortgage REIT sector, which sits at the intersection of real estate and financial services. The company's core business involves providing debt financing to commercial real estate projects and properties across the United States, with recent expansion into European markets. The company's primary offering is senior commercial mortgage loans, which are first-lien debt instruments secured by income-producing commercial real estate properties. These loans typically have terms ranging from 3-7 years and are structured with floating interest rates, usually benchmarked to the Secured Overnight Financing Rate (SOFR) plus a spread. The loans are considered "senior" because they have first priority claim on the underlying real estate collateral in case of default. KREF's loan portfolio is diversified across several commercial real estate sectors: Multifamily properties (apartment buildings and residential complexes) represent approximately 41% of the portfolio and are the largest segment. Industrial properties (warehouses, distribution centers, manufacturing facilities) comprise about 19% of holdings. Office buildings account for roughly 22% of the portfolio, though this sector has faced challenges in recent years. Life science facilities (laboratory and research buildings) make up about 12-15% of investments. The company also has smaller exposures to student housing, retail, and is exploring opportunities in data centers. The company typically targets loans with loan-to-value ratios between 65-75%, meaning borrowers must have significant equity stakes in their properties. Most loans are made to institutional sponsors and experienced real estate developers rather than individual property owners, which helps ensure professional management of the underlying assets.
Revenue model
KREF generates revenue primarily through interest income from its commercial mortgage loan portfolio. The company earns the spread between what it pays to borrow money (through various financing facilities and debt instruments) and what it charges borrowers on its loans. Most loans carry floating interest rates tied to SOFR plus spreads typically ranging from 250-350 basis points, allowing the company to benefit from rising interest rate environments while maintaining some protection against rate declines. The company's paying customers are primarily institutional real estate sponsors, experienced developers, and property owners who need financing for acquisitions, refinancing, or development projects. These borrowers typically have substantial real estate portfolios and established track records, which helps reduce credit risk. KREF finances its lending activities through multiple sources: secured financing facilities (which represent about 78% of its financing and are non-mark-to-market), corporate debt including a $550 million Term Loan B, a $660 million revolving credit facility, and equity capital from common and preferred stock issuances. The company's profitability depends heavily on maintaining a positive spread between its cost of funds and loan yields. Several factors can impact KREF's margins and profitability. Rising interest rates generally benefit the company since most loans reprice quickly while some financing costs are fixed, though extremely rapid rate increases can stress borrowers. Credit quality deterioration in commercial real estate markets can lead to increased loan loss provisions and potential defaults. Competition from banks and other lenders can compress loan spreads, while bank regulatory changes that reduce bank lending can create opportunities for non-bank lenders like KREF. Commercial real estate fundamentals such as occupancy rates, rent growth, and property values directly impact borrower ability to repay loans and refinance at maturity.
Competitive moat
KREF's competitive moat is moderate but not particularly strong compared to companies with more defensible business models. The company's primary advantages stem from its affiliation with KKR, one of the world's largest alternative asset managers. This relationship provides several benefits: deal flow and origination capabilities through KKR's extensive network of real estate relationships and $80 billion global real estate platform, underwriting expertise leveraging KKR's institutional-grade due diligence processes, and access to capital markets through KKR's relationships with institutional investors and lenders. The company also benefits from scale advantages in financing, with nearly $8.3 billion in total financing capacity and the ability to access diverse funding sources including secured facilities, corporate debt, and equity markets. KREF's focus on institutional-quality sponsors and first-lien senior loans provides some protection compared to mezzanine or junior debt providers. However, the commercial mortgage lending business faces significant competitive pressures. Banks remain major competitors despite recent retrenchment, and other mortgage REITs, debt funds, and insurance companies compete for similar deals. The business is somewhat commoditized, with limited ability to differentiate loan products beyond pricing and terms. Regulatory changes affecting bank lending can quickly alter the competitive landscape, and economic cycles can dramatically impact both loan demand and credit performance. The company's moat is also constrained by its dependence on external financing and exposure to commercial real estate cycles. Unlike companies with recurring revenue streams or network effects, KREF must continuously compete for new loan originations while managing credit risk from existing loans. The recent challenges in office real estate and increased credit provisions demonstrate the cyclical nature of the business and limited defensive characteristics during market downturns.
Risks & safety
KREF's margin of safety appears moderate with some concerns around leverage and asset quality, though liquidity remains adequate. **Liquidity and Solvency:** - Strong cash position with $106 million in cash and short-term investments - $720 million in total liquidity availability including undrawn credit facilities - No corporate debt maturities until 2027-2030, providing time to address portfolio issues - Current ratio of 1.05 indicates tight but adequate short-term liquidity coverage **Leverage and Debt:** - High debt-to-equity ratio of 3.06x indicates significant financial leverage - Total leverage ratio of 3.6x is elevated but within typical REIT ranges - 78% of financing is non-mark-to-market, providing some stability during volatile periods - Interest coverage appears adequate based on distributable earnings **Valuation Metrics:** - Price-to-book ratio of 0.57 suggests trading below book value, potentially indicating market skepticism - Recent GAAP losses in Q1 2025 (-$5.7 million) raise near-term profitability concerns - Distributable earnings of $0.25 per share in Q1 2025 vs. $0.25 dividend suggests tight coverage **Other Considerations:** - 8% of loan portfolio on watchlist, down from previous highs but still elevated - Significant exposure to challenged office sector (approximately 18% of portfolio) - REO (foreclosed) assets requiring active management and potential losses
Recent development
Over the past few years, KREF has undergone significant strategic repositioning in response to challenging commercial real estate market conditions. The company has shifted from a growth-focused origination strategy to a more defensive approach emphasizing portfolio optimization and credit management. Portfolio Reduction and Credit Management: KREF has systematically reduced its loan portfolio from a peak of $7.6 billion to approximately $5.9 billion as of Q4 2024, primarily through loan repayments and selective asset sales. The company has proactively addressed problem loans, reducing its watchlist from 13% to 8% of the portfolio. Management has taken a hands-on approach to troubled assets, including converting some loans to REO (Real Estate Owned) status to directly manage and optimize properties. Financing Structure Optimization: The company has strengthened its balance sheet through several refinancing initiatives, including upsizing and extending its corporate revolver to $660 million and securing a new $550 million Term Loan B with a 7-year term. These moves extended debt maturities and improved liquidity, with no corporate maturities now until 2027-2030. Geographic and Sector Diversification: KREF has begun exploring European lending opportunities, particularly in Western Europe and the UK, as part of its strategy to diversify geographically and access new markets. The company is also evaluating expansion into emerging sectors like data centers while maintaining focus on core strengths in multifamily, industrial, and student housing. Dividend Policy Adjustment: In response to earnings pressures from non-performing assets, the company reduced its quarterly dividend from $0.43 to $0.25 per share in early 2024, prioritizing financial stability over distribution levels. Management has indicated comfort with the current dividend level and potential for increases as REO assets are monetized.
KREF company profile · for informational purposes only — not investment advice.
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