KKR Real Estate Finance Trust (NYSE:KREF) Announces Quarterly Earnings Results, Misses Estimates By $0.17 EPS

Key Points

• KKR Real Estate Finance Trust reported quarterly EPS of -$0.06, missing the $0.11 consensus by $0.17, with revenue of $20.89M versus $28.76M expected and a negative return on equity and net margin.
• The company paid a quarterly dividend of $0.25 (annualized $1.00) for a 14.9% yield, though its dividend payout ratio is negative (-95.24%), reflecting the firm's loss.
• Shares traded at $6.71 (up 0.2%) with a market cap around $431M and a debt-to-equity of 3.83, while analysts have a consensus Hold rating and a $9.00 price target after recent downgrades.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) posted its earnings results on Wednesday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.17), FiscalAI reports. The firm had revenue of $20.89 million for the quarter, compared to analyst estimates of $28.76 million. KKR Real Estate Finance Trust had a negative return on equity of 1.13% and a negative net margin of 10.80%.

KKR Real Estate Finance Trust Stock Up 0.2%

Shares of NYSE KREF traded up $0.02 during midday trading on Wednesday, hitting $6.71. 1,114,790 shares of the company's stock were exchanged, compared to its average volume of 1,312,676. The company has a debt-to-equity ratio of 3.83, a current ratio of 407.64 and a quick ratio of 407.64. KKR Real Estate Finance Trust has a twelve month low of $5.87 and a twelve month high of $9.98. The company has a market cap of $431.00 million, a PE ratio of -6.39 and a beta of 0.91. The firm's fifty day simple moving average is $6.67 and its 200-day simple moving average is $7.73.

KKR Real Estate Finance Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 14.9%. The ex-dividend date of this dividend was Tuesday, March 31st. KKR Real Estate Finance Trust's dividend payout ratio (DPR) is -95.24%.

Institutional Investors Weigh In On KKR Real Estate Finance Trust

Several hedge funds and other institutional investors have recently made changes to their positions in KREF. Millennium Management LLC raised its position in shares of KKR Real Estate Finance Trust by 25.9% during the 1st quarter. Millennium Management LLC now owns 353,216 shares of the company's stock worth $3,815,000 after acquiring an additional 72,566 shares in the last quarter. Caxton Associates LLP purchased a new position in KKR Real Estate Finance Trust during the 1st quarter worth approximately $288,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in KKR Real Estate Finance Trust by 317.2% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 204,589 shares of the company's stock worth $2,210,000 after buying an additional 155,553 shares during the last quarter. Jane Street Group LLC grew its stake in KKR Real Estate Finance Trust by 72.1% during the 1st quarter. Jane Street Group LLC now owns 172,162 shares of the company's stock worth $1,859,000 after buying an additional 72,140 shares during the last quarter. Finally, Acadian Asset Management LLC purchased a new position in KKR Real Estate Finance Trust during the 1st quarter worth approximately $66,000. Institutional investors and hedge funds own 70.23% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on KREF shares. Keefe, Bruyette & Woods reduced their price target on KKR Real Estate Finance Trust from $8.00 to $7.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 8th. Wells Fargo & Company reduced their price target on KKR Real Estate Finance Trust from $10.00 to $9.00 and set an "overweight" rating on the stock in a research report on Thursday, February 5th. Zacks Research raised KKR Real Estate Finance Trust from a "strong sell" rating to a "hold" rating in a research report on Friday, April 10th. BTIG Research lowered KKR Real Estate Finance Trust from a "buy" rating to a "neutral" rating in a research report on Thursday, February 5th. Finally, Citizens Jmp reduced their price target on KKR Real Estate Finance Trust from $10.00 to $9.50 and set a "market outperform" rating on the stock in a research report on Monday, March 23rd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $9.00.

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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