Kkr Real Estate Finance Trust Stock Earnings Reports

KKR Real Estate Finance Trust reported 3Q25 GAAP net income of $8 million ($0.12/share) and a distributable loss of $2 million (driven primarily by taking title to a Raleigh multifamily property). Book value was $13.78/share (down 0.4% QoQ). The Board maintained a $0.25 quarterly cash dividend. CECL reserves were $160 million (~3% of the loan portfolio) and the portfolio's weighted average risk rating was 3.1 on a 1-5 scale (over 85% rated 3 or better). Portfolio activity: the company received $480 million of repayments in the quarter (YTD $1.1 billion) and originated $719 million YTD with $110 million closed in Q4 to date and an expectation of >$400 million of Q4 originations. Management closed KREF’s first European loan (12 light industrial assets near Paris/Lyon) and highlighted their growing European platform (over $2.5 billion originated to date). KREF/KKR’s broader platform and KSTAR asset-management capability (70+ professionals; manages $37 billion+ in loans) support active origination across risk spectrums. Liquidity and financing: the company upsized its Term Loan B to $650 million (repriced 75 bps tighter) and increased its corporate revolver to $700 million, ending the quarter with liquidity of $933 million (cash + undrawn revolver) and total financing availability of $7.7 billion (77% non-mark-to-market financing). Share repurchases continued ($4 million in the quarter; $34 million YTD; $140 million+ since inception). REO/managment outlook: management is focused on stabilizing and selling REO (identifying an embedded earnings opportunity of ~$0.13/share per quarter as assets are monetized), working through a watch list, and redeploying capital into higher-yielding originations. They expect >$1.5 billion of repayments in 2026 and plan to match repayments with new originations; management emphasizes a “safety-first” lending approach and believes real estate credit offers attractive relative value given lower liability costs and improving fundamentals.