KKR Real Estate Finance Trust (NYSE:KREF) Announces Quarterly Earnings Results, Misses Estimates By $2.33 EPS

Key Points

• KKR Real Estate Finance Trust reported a significant earnings miss: quarterly EPS was negative $2.64, compared with the consensus estimate of negative $0.31. Revenue of $24.55 million exceeded expectations of $18.42 million.
• Shares fell to $5.63, near the company’s 52-week low of $5.25, while the stock showed a market capitalization of $330.1 million and a negative P/E ratio.
• The company paid a quarterly dividend of $0.10, equivalent to an annualized $0.40 and a 7.1% yield. Analysts maintain an average “Hold” rating with a consensus price target of $8.83.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) released its earnings results on Wednesday. The company reported ($2.64) earnings per share for the quarter, missing the consensus estimate of ($0.31) by ($2.33), FiscalAI reports. KKR Real Estate Finance Trust had a negative net margin of 47.33% and a negative return on equity of 1.53%. The company had revenue of $24.55 million for the quarter, compared to analysts' expectations of $18.42 million.

KKR Real Estate Finance Trust Stock Performance

Shares of NYSE:KREF traded down $0.30 on Wednesday, reaching $5.63. The company's stock had a trading volume of 937,648 shares, compared to its average volume of 1,165,854. The company has a 50-day simple moving average of $6.67 and a 200 day simple moving average of $6.94. KKR Real Estate Finance Trust has a 52-week low of $5.25 and a 52-week high of $9.10. The company has a market cap of $330.10 million, a P/E ratio of -1.72 and a beta of 0.88.

KKR Real Estate Finance Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were paid a $0.10 dividend. This represents a $0.40 dividend on an annualized basis and a dividend yield of 7.1%. The ex-dividend date of this dividend was Wednesday, September 30th. KKR Real Estate Finance Trust's dividend payout ratio (DPR) is presently -12.20%.

Wall Street Analysts Forecast Growth

KREF has been the topic of several recent research reports. Raymond James Financial raised KKR Real Estate Finance Trust from an "outperform" rating to a "strong-buy" rating and set a $9.50 price objective on the stock in a research note on Thursday, August 6th. Citigroup reissued a "market perform" rating on shares of KKR Real Estate Finance Trust in a report on Tuesday, September 15th. Weiss Ratings restated a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a research note on Thursday, October 15th. Keefe, Bruyette & Woods lowered their price target on shares of KKR Real Estate Finance Trust from $7.00 to $6.50 and set a "market perform" rating on the stock in a report on Friday, October 9th. Finally, JPMorgan Chase & Co. dropped their price target on shares of KKR Real Estate Finance Trust from $8.00 to $7.50 and set an "underweight" rating for the company in a research report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, KKR Real Estate Finance Trust currently has an average rating of "Hold" and a consensus price target of $8.83.

About KKR Real Estate Finance Trust

KKR Real Estate Finance Trust Inc NYSE: KREF is a real estate investment trust that originates and acquires commercial real estate loans. The company primarily focuses on senior loans secured by institutional-quality properties, including office, multifamily, industrial, hospitality and other commercial real estate assets.

KREF's investment portfolio is generally composed of floating-rate mortgage loans backed by properties in major U.S. markets. Its financing activities are designed to provide borrowers with capital for property acquisitions, refinancing, redevelopment and other commercial real estate needs.

The company is externally managed by an affiliate of KKR & Co Inc, a global investment firm with real estate investment capabilities.

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