KKR Real Estate Finance Trust Posts Q3 Loss of $0.11 Per Share
KREF is trading near its 52-week low of $5.25 (6.7% above the low).
Summary
KKR Real Estate Finance Trust reported a Q3 GAAP loss of $0.11 per share, with distributable earnings per share at -$2.64. The distributable figure is the one that matters for a mortgage REIT — it is the cash earnings measure that funds the dividend, and a loss of that size implies the payout is not covered by operating cash flow. The quarter's loss was smaller on strong loan repayments. This comes after the company already cut its dividend by 60% and authorized a $75M buyback in April, so the pressure on the payout is not new, but a negative distributable number of this magnitude shows the credit problems are still working through the book. The stock trades near $5.60 against a small market cap, so the equity cushion is thin and book value erosion is the key risk. No specific date for the next disclosure was provided in the source.
At the time of this announcement, KREF was trading at $5.60 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $332.2M. The 52-week trading range was $5.25 to $9.11. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.