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Highlights

  • KREF originated and funded over USD750 million across four floating-rate loans in Q1
  • The company posted a loss of USD 5.8mn compared to a USD 3.4mn loss in Q1FY24, reflecting lower interest and non-interest income
  • KREF’s Board has declared Q1 dividends of USD0.40 per share on its preferred stock

KKR Real Estate Finance Trust Inc. (NYSE: KREF) is a real estate investment trust (REIT) focused on originating and acquiring transitional senior loans secured by high-quality commercial real estate (CRE) assets. These assets are typically located in established, liquid markets and owned by experienced sponsors. They also target mezzanine loans, preferred equity, and other debt-based investments with similar characteristics.

In the first quarter of financial year 2025 (Q1FY25), KREF’s interest income declined by 24.8% year-over-year to USD 114.0 million, primarily driven by wider loan spreads and increased financing costs. Net income showed a further loss of USD 5.8 million compared to a USD 3.4 million loss in Q1FY24, reflecting lower interest and non-interest income. Operating cash flow dropped 53.8% yoy to USD 15.9 million due to a higher net loss, reduced non-cash expenses, and adverse changes in working capital.

Despite this, cash and cash equivalents rose slightly by 1.4% yoy to USD 106.4 million, supported by positive cash flows from operating and financing activities, partially offset by investing outflows.

On a positive note, in Q1 2025, KREF originated and funded USD376.3 million and USD374.0 million, respectively, through four floating-rate loans.

Recent Business Update

The company’s Board of Directors has declared a quarterly dividend of USD0.40625 per share on cumulative Redeemable Preferred Stock. The dividend is scheduled to be paid on June 13, 2025, to preferred shareholders of record as of May 30, 2025, reflecting ongoing shareholder distributions as the company advances its strategic plans.

Top 10 Shareholders of KKR

The top 10 shareholders of KKR together form ~53.39% of the total shareholding, signifying concentrated shareholding. Kohlberg Kravis Roberts & Co. L.P. [Activist], and BlackRock Institutional Trust Company, N.A., are the biggest shareholders, holding the maximum stake in the company at ~14.75% and ~13.84%, respectively.

Stock Information

KREF’s stock has gained 5.07% over the past month but has declined 16.39% over the past six months. It is currently trading near the lower end of its 52-week high of USD 12.95 and its 52-week low of USD 8.28, with a closing price of USD 9.54 as of May 15, 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is May 15 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.