BlackRock Inc. Invests $40.35 Million in KKR Real Estate Finance Trust $KREF

Key Points

• BlackRock acquired 5.9 million KREF shares worth approximately $40.35 million, giving it a 10.07% stake. Institutional investors collectively own 70.23% of KKR Real Estate Finance Trust.
• KREF reported a quarterly loss of $0.58 per share, missing estimates by $0.02, although revenue of $29.34 million exceeded expectations. The company posted negative net margins and return on equity.
• Analyst views remain mixed, resulting in a consensus “Hold” rating and an average price target of $8.92, compared with the stock’s reported price of $7.47.

BlackRock Inc. bought a new position in KKR Real Estate Finance Trust (NYSE:KREF - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 5,898,946 shares of the company's stock, valued at approximately $40,349,000. BlackRock Inc. owned 10.07% of KKR Real Estate Finance Trust as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Hantz Financial Services Inc. grew its holdings in KKR Real Estate Finance Trust by 210.5% in the 4th quarter. Hantz Financial Services Inc. now owns 3,099 shares of the company's stock worth $25,000 after acquiring an additional 2,101 shares during the last quarter. PNC Financial Services Group Inc. increased its position in shares of KKR Real Estate Finance Trust by 178.3% in the fourth quarter. PNC Financial Services Group Inc. now owns 3,537 shares of the company's stock valued at $29,000 after acquiring an additional 2,266 shares during the period. Geneos Wealth Management Inc. raised its stake in shares of KKR Real Estate Finance Trust by 100.0% during the second quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company's stock valued at $30,000 after acquiring an additional 1,725 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of KKR Real Estate Finance Trust by 742.0% during the second quarter. EverSource Wealth Advisors LLC now owns 4,151 shares of the company's stock valued at $36,000 after acquiring an additional 3,658 shares during the last quarter. Finally, Fifth Third Bancorp boosted its holdings in shares of KKR Real Estate Finance Trust by 5,654.7% during the first quarter. Fifth Third Bancorp now owns 6,100 shares of the company's stock worth $37,000 after purchasing an additional 5,994 shares during the period. 70.23% of the stock is currently owned by institutional investors.

KKR Real Estate Finance Trust Stock Down 2.0%

Shares of KREF opened at $7.47 on Wednesday. The company has a market cap of $437.58 million, a PE ratio of -2.28 and a beta of 0.82. The business has a fifty day moving average of $7.35 and a 200 day moving average of $6.90. KKR Real Estate Finance Trust has a 52-week low of $5.25 and a 52-week high of $9.98. The company has a quick ratio of 407.64, a current ratio of 407.64 and a debt-to-equity ratio of 4.36.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The company reported ($0.58) earnings per share for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.02). The firm had revenue of $29.34 million for the quarter, compared to the consensus estimate of $24.97 million. KKR Real Estate Finance Trust had a negative net margin of 47.33% and a negative return on equity of 1.53%. On average, sell-side analysts expect that KKR Real Estate Finance Trust will post 0.28 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on KREF shares. JPMorgan Chase & Co. reduced their price objective on shares of KKR Real Estate Finance Trust from $8.00 to $7.50 and set an "underweight" rating on the stock in a research report on Friday, July 24th. Raymond James Financial raised KKR Real Estate Finance Trust from an "outperform" rating to a "strong-buy" rating and set a $9.50 target price on the stock in a report on Thursday, August 6th. Wall Street Zen downgraded shares of KKR Real Estate Finance Trust from a "sell" rating to a "strong sell" rating in a research note on Sunday, July 12th. Keefe, Bruyette & Woods increased their price objective on KKR Real Estate Finance Trust from $6.50 to $7.00 and gave the company a "market perform" rating in a research report on Thursday, July 23rd. Finally, Zacks Research raised shares of KKR Real Estate Finance Trust from a "strong sell" rating to a "hold" rating in a research report on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, KKR Real Estate Finance Trust presently has a consensus rating of "Hold" and an average price target of $8.92.

KKR Real Estate Finance Trust Company Profile

KKR Real Estate Finance Trust, Inc NYSE: KREF is a mortgage real estate investment trust sponsored by KKR & Co Inc The company focuses on originating, acquiring, financing and managing a diversified portfolio of commercial real estate debt and real estate-related assets across the United States and select European markets.

The trust's investment strategy is centered on lending to high-quality office, industrial, retail, multifamily and hotel properties. Its portfolio primarily consists of senior mortgage loans, mezzanine loans, floating-rate debt securities and preferred equity positions.

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