(KREF) KKR Real Estate Finance - Overview
Sector: Real Estate | Industry: REIT - Mortgage | Exchange: NYSE (USA) | Market Cap: 413m USD | Total Return: -17.2% in 12m
Avg Turnover: 6.73M
Qual. Beats: -1
Rev. Trend: -86.8%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
KKR Real Estate Finance Trust Inc. (KREF) is a mortgage real estate investment trust (mREIT) specializing in the origination and acquisition of senior loans secured by commercial real estate assets across the United States. The company focuses on transitional loans, which provide financing for properties undergoing repositioning, renovation, or leasing stabilization. As a REIT, the firm is legally required to distribute at least 90% of its taxable income to shareholders to maintain its tax-exempt status at the corporate level.
The business model primarily targets institutional-quality assets in major markets, leveraging the broader KKR investment platform for deal sourcing and credit underwriting. Unlike equity REITs that own physical property, mortgage REITs like KREF function as specialized lenders, earning a spread between the interest income generated from their loan portfolios and the cost of their funding. Investors can further analyze the companys dividend sustainability and portfolio quality on ValueRay.
- Interest rate fluctuations impact net interest margin on floating rate senior loans
- Commercial real estate asset quality determines loan loss provisioning and book value
- Asset-specific performance in office and multifamily sectors affects non-accrual loan rates
- Liquidity management and credit facility capacity dictate new loan origination volume
- Dividend sustainability depends on distributable earnings and REIT tax compliance requirements
| Net Income: -98.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.73 > 1.0 |
| NWC/Revenue: -142.7% < 20% (prev -6.21%; Δ -136.5% < -1%) |
| CFO/TA 0.01 > 3% & CFO 69.5m > Net Income -98.3m |
| Net Debt (5.19b) to EBITDA (211.1m): 24.61 < 3 |
| Current Ratio: 0.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (64.7m) vs 12m ago -5.95% < -2% |
| Gross Margin: 87.12% > 18% (prev 0.91%; Δ 8.62k% > 0.5%) |
| Asset Turnover: 6.54% > 50% (prev 8.43%; Δ -1.88% > 0%) |
| Interest Coverage Ratio: 0.67 > 6 (EBITDA TTM 211.1m / Interest Expense TTM 310.1m) |
| A: -0.09 (Total Current Assets 168.6m - Total Current Liabilities 799.0m) / Total Assets 6.95b |
| B: -0.08 (Retained Earnings -584.1m / Total Assets 6.95b) |
| C: 0.03 (EBIT TTM 208.0m / Avg Total Assets 6.75b) |
| D: -0.10 (Book Value of Equity -583.4m / Total Liabilities 5.80b) |
| Altman-Z'' = -0.77 = CCC |
As of May 28, 2026, the stock is trading at USD 6.66 with a total of 840,075 shares traded.
Over the past week, the price has changed by +7.77%,
over one month by +13.27%,
over three months by -0.19% and
over the past year by -17.22%.
KKR Real Estate Finance has received a consensus analysts rating of 4.20. Therefore, it is recommended to buy KREF.
- StrongBuy: 2
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 6.3 | -5% |
P/E Forward = 11.6686
P/S = 27.1804
P/B = 0.3762
P/EG = 5.13
Revenue TTM = 441.7m USD
EBIT TTM = 208.0m USD
EBITDA TTM = 211.1m USD
Long Term Debt = 4.53b USD (from longTermDebt, last quarter)
Short Term Debt = 799.0m USD (from shortTermDebt, last quarter)
Debt = 5.33b USD (corrected: LT Debt 4.53b + ST Debt 799.0m) + Leases 274k
Net Debt = 5.19b USD (calculated: Debt 5.33b - CCE 135.4m)
Enterprise Value = 5.61b USD (413.1m + Debt 5.33b - CCE 135.4m)
Interest Coverage Ratio = 0.67 (Ebit TTM 208.0m / Interest Expense TTM 310.1m)
EV/FCF = 90.06x (Enterprise Value 5.61b / FCF TTM 62.3m)
FCF Yield = 1.11% (FCF TTM 62.3m / Enterprise Value 5.61b)
FCF Margin = 14.10% (FCF TTM 62.3m / Revenue TTM 441.7m)
Net Margin = -22.26% (Net Income TTM -98.3m / Revenue TTM 441.7m)
Gross Margin = 87.12% ((Revenue TTM 441.7m - Cost of Revenue TTM 56.9m) / Revenue TTM)
Gross Margin QoQ = 84.68% (prev 86.95%)
Tobins Q-Ratio = 0.81 (Enterprise Value 5.61b / Total Assets 6.95b)
Interest Expense / Debt = 5.82% (Interest Expense 310.1m / Debt 5.33b)
Taxrate = 21.0% (US default 21%)
NOPAT = 164.3m (EBIT 208.0m * (1 - 21.00%))
Current Ratio = 0.21 (Total Current Assets 168.6m / Total Current Liabilities 799.0m)
Debt / Equity = 4.86 (Debt 5.33b / totalStockholderEquity, last quarter 1.10b)
Debt / EBITDA = 24.61 (Net Debt 5.19b / EBITDA 211.1m)
Debt / FCF = 83.42 (Net Debt 5.19b / FCF TTM 62.3m)
Total Stockholder Equity = 1.18b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.46% (Net Income -98.3m / Total Assets 6.95b)
RoE = -5.56% (Net Income TTM -98.3m / Total Stockholder Equity 1.77b)
RoCE = 3.30% (EBIT 208.0m / Capital Employed (Equity 1.77b + L.T.Debt 4.53b))
RoIC = 2.36% (NOPAT 164.3m / Invested Capital 6.95b)
WACC = 4.90% (E(413.1m)/V(5.74b) * Re(8.90%) + D(5.33b)/V(5.74b) * Rd(5.82%) * (1-Tc(0.21)))
Discount Rate = 8.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -64.44 | Cagr: -3.08%
[DCF] Terminal Value 73.10% ; FCFF base≈80.0m ; Y1≈70.2m ; Y5≈56.7m
[DCF] Fair Price = N/A (negative equity: EV 910.4m - Net Debt 5.19b = -4.28b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -4.0 | # QB: -1
Revenue Correlation: -86.78 | Revenue CAGR: -13.31% | SUE: 0.56 | # QB: 0
EPS current Quarter (2026-06-30): EPS=-0.33 | Chg30d=-330.99% | Revisions=-33% | Analysts=5
EPS next Quarter (2026-09-30): EPS=0.13 | Chg30d=-24.42% | Revisions=-43% | Analysts=5
EPS current Year (2026-12-31): EPS=-0.17 | Chg30d=-127.81% | Revisions=-33% | GrowthEPS=-143.1% | GrowthRev=-21.8%
EPS next Year (2027-12-31): EPS=0.44 | Chg30d=-25.63% | Revisions=-14% | GrowthEPS=+363.4% | GrowthRev=-8.0%
[Analyst] Revisions Ratio: -43%