KREF - KKR Real Estate Finance: Discount To Book On Commons Quite Deep The Preferreds A Buy
2024-05-05 03:40:42 ET
Summary
- KKR Real Estate Finance Trust's book value dipped by $0.34 sequentially in the first quarter of 2024.
- The mREIT generated distributable earnings of $0.39 per share and declared a $0.25 per share cash dividend for 156% coverage.
- There were two risk rating downgrades during the quarter, with the mREIT's 3.2 weighted average risk rating remaining unchanged sequentially.
KKR Real Estate Finance Trust's ( KREF ) book value as of the end of its recent fiscal 2024 first quarter came in at $1.38 billion, $15.18 per share, and dipping by 34 cents sequentially. The continued dip in book value has essentially cratered investor sentiment in the real estate lender and opened a material gap to its book value of 51%. KREF's CECL allowance also increased to $3.54 per share from $3.06 per share in the prior fourth quarter with the mREIT last declaring a quarterly cash dividend of $0.25 per share , a material 41.9% decline from its prior distribution and $1 per share annualized for a 10.3% dividend yield. The cut was brutal but means a moderation of a vicarious dip in book value since the Fed embarked on its ongoing fight against inflation....
KKR Real Estate Finance: Discount To Book On Commons Quite Deep, The Preferreds A Buy