KKR Real Estate Finance Trust Inc. (KREF) AI Stock Analysis

KKR Real Estate Finance Trust Inc. operates as a specialized mortgage real estate investment trust primarily focused on originating and acquiring senior loans secured by commercial real estate assets. The company's core activities include credit investments tied to commercial real estate, encompassing leveraged and unleveraged commercial real estate loans, as well as commercial mortgage-backed securities. Headquartered in New York and founded in 2014, the company operates under the tax structure of a REIT, requiring it to distribute at least 90% of its taxable income to shareholders. It also engages in strategic investments across various commercial real estate segments to diversify and manage risk.

Annual revenue fluctuated significantly, moving from $151.9M in FY2021 to $436.5M in FY2022, dropping to $181.6M in FY2023, and rising to $592.6M in FY2024. In FY2025, revenue declined 22.7% to $458.0M, accompanied by a net loss of -$47.1M and an operating margin of 59.3%. Over the 5-year period from FY2020 to FY2025, revenue expanded at a CAGR of 29.5%. For the trailing twelve months ended June 30, 2026, revenue stood at -$72.4M with EPS of -$3.26. In the latest quarter ended June 30, 2026, quarterly revenue increased 245.1% year-over-year, while quarterly earnings fell 64.1%.

As of June 30, 2026, the company held $83.1M in cash and short-term investments alongside total debt of $4.31B, resulting in net debt of $4.23B and a current ratio of 0.08. Total assets were $6.56B against shareholders' equity of $931.8M, producing a debt-to-equity ratio of 4.63. During FY2025, operating cash flow was $72.3M and free cash flow reached $66.7M. Capital allocation in FY2025 included $5.6M in capital expenditures, $43.4M in share buybacks, and $88.2M paid out in dividends.

With a market cap of $339.8M and an enterprise value of $4.95B, KREF trades at a forward P/E of 11.7x, below the 23.5x median of its US-listed Real Estate peers. Its price-to-book ratio is 0.4x and its enterprise value-to-revenue multiple is 94.1x. Over the past year, KREF recorded a return of -24.6%, underperforming the 16.8% return of the S&P 500 (SPY). Over five years, the stock dropped 54.8% compared to an 83.0% gain for the S&P 500. The last close of $5.80 is 14.0% below its 200-day average.

KREF pays a quarterly dividend with a forward annual payout of $0.40, reflecting a dividend yield of 6.90%. The company has maintained consecutive dividend payments for 10 years, though its 5-year annualized dividend growth rate was -10.3%. The most recent ex-dividend date was September 30, 2026.

Wall Street coverage consists of 2 Strong Buy, 0 Buy, 3 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target of $7.25 sits 25.0% above the last close of $5.80. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $72.2M and EPS of -$0.70. KREF has beaten EPS estimates in 1 of the last 4 quarters. The next earnings date is October 28, 2026.

This page is an AI-written research summary of KKR Real Estate Finance Trust Inc. (KREF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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