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KREF

KKR Real Estate Finance Trust NYSE:KREF Stock Report

Last Price

US$19.19

Market Cap

US$1.3b

7D

-0.7%

1Y

-7.2%

Updated

22 May, 2022

Data

Company Financials +
KREF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends3/6

KREF Stock Overview

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.

KKR Real Estate Finance Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for KKR Real Estate Finance Trust
Historical stock prices
Current Share PriceUS$19.19
52 Week HighUS$23.42
52 Week LowUS$18.53
Beta0.69
1 Month Change-3.62%
3 Month Change-9.27%
1 Year Change-7.25%
3 Year Change-5.52%
5 Year Change-15.83%
Change since IPO-13.29%

Recent News & Updates

Apr 23

KKR Real Estate: Stable Stock, High Yield, Static Price Performance

KKR Real Estate has been successful in its primary investment objective of protecting shareholders’ capital and producing attractive dividend for its investors. KREF recorded an average yield of 8 percent, which it is expected to continue. KREF recorded negative price growth since inception, but it is quite static.

Apr 15
If You Like EPS Growth Then Check Out KKR Real Estate Finance Trust (NYSE:KREF) Before It's Too Late

If You Like EPS Growth Then Check Out KKR Real Estate Finance Trust (NYSE:KREF) Before It's Too Late

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Shareholder Returns

KREFUS Mortgage REITsUS Market
7D-0.7%-2.8%-2.7%
1Y-7.2%-22.1%-12.9%

Return vs Industry: KREF exceeded the US Mortgage REITs industry which returned -22.1% over the past year.

Return vs Market: KREF exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is KREF's price volatile compared to industry and market?
KREF volatility
KREF Average Weekly Movement3.3%
Mortgage REITs Industry Average Movement4.4%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market2.9%

Stable Share Price: KREF is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KREF's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aMatt Salemhttps://www.kkrreit.com

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 investments related to CRE, including leveraged and unleveraged commercial mortgage loans, and commercial mortgage-backed securities. The company has 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 Fundamentals Summary

How do KKR Real Estate Finance Trust's earnings and revenue compare to its market cap?
KREF fundamental statistics
Market CapUS$1.30b
Earnings (TTM)US$126.25m
Revenue (TTM)US$190.05m

10.3x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KREF income statement (TTM)
RevenueUS$190.05m
Cost of RevenueUS$2.55m
Gross ProfitUS$187.49m
Other ExpensesUS$61.24m
EarningsUS$126.25m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.86
Gross Margin98.66%
Net Profit Margin66.43%
Debt/Equity Ratio330.1%

How did KREF perform over the long term?

See historical performance and comparison

Dividends

9.0%

Current Dividend Yield

80%

Payout Ratio

Valuation

Is KKR Real Estate Finance Trust undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


10.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KREF ($19.19) is trading below our estimate of fair value ($21.35)

Significantly Below Fair Value: KREF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KREF is good value based on its PE Ratio (10.3x) compared to the US Mortgage REITs industry average (11.4x).

PE vs Market: KREF is good value based on its PE Ratio (10.3x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: KREF is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: KREF's PB Ratio (0.8x) is in line with the US Mortgage REITs industry average.


Future Growth

How is KKR Real Estate Finance Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


6.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KREF's forecast earnings growth (6.5% per year) is above the savings rate (1.9%).

Earnings vs Market: KREF's earnings (6.5% per year) are forecast to grow slower than the US market (12.5% per year).

High Growth Earnings: KREF's earnings are forecast to grow, but not significantly.

Revenue vs Market: KREF's revenue (7% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: KREF's revenue (7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KREF's Return on Equity is forecast to be low in 3 years time (9.2%).


Past Performance

How has KKR Real Estate Finance Trust performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KREF has high quality earnings.

Growing Profit Margin: KREF's current net profit margins (66.4%) are lower than last year (74.7%).


Past Earnings Growth Analysis

Earnings Trend: KREF's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: KREF's earnings growth over the past year (7.1%) is below its 5-year average (15% per year).

Earnings vs Industry: KREF earnings growth over the past year (7.1%) exceeded the Mortgage REITs industry 5.4%.


Return on Equity

High ROE: KREF's Return on Equity (8.6%) is considered low.


Financial Health

How is KKR Real Estate Finance Trust's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: KREF's short term assets ($6.9B) exceed its short term liabilities ($50.1M).

Long Term Liabilities: KREF's short term assets ($6.9B) exceed its long term liabilities ($5.4B).


Debt to Equity History and Analysis

Debt Level: KREF's net debt to equity ratio (319.6%) is considered high.

Reducing Debt: KREF's debt to equity ratio has reduced from 893.2% to 330.1% over the past 5 years.

Debt Coverage: KREF's debt is not well covered by operating cash flow (2.3%).

Interest Coverage: Insufficient data to determine if KREF's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is KKR Real Estate Finance Trust current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.96%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KREF's dividend (8.96%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: KREF's dividend (8.96%) is in the top 25% of dividend payers in the US market (4.11%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KREF has been paying a dividend for less than 10 years.

Growing Dividend: KREF's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (79.6%), KREF's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (91.5%), KREF's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Matt Salem (47 yo)

2.17yrs

Tenure

US$1,979,366

Compensation

Mr. Matthew A. Salem, also known as Matt, is the Chief Executive Officer of KKR Real Estate Finance Trust Inc. since March 9, 2020 and serves as its Director since February 01, 2022. He is a Partner at KKR...


Leadership Team

Experienced Management: KREF's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: KREF's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 22.1%.


Top Shareholders

Company Information

KKR Real Estate Finance Trust Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: KKR Real Estate Finance Trust Inc.
  • Ticker: KREF
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.304b
  • Shares outstanding: 67.93m
  • Website: https://www.kkrreit.com

Location

  • KKR Real Estate Finance Trust Inc.
  • 30 Hudson Yards
  • Suite 7500
  • New York
  • New York
  • 10001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/22 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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 here.