2024-04-26 10:23:40 ET
Summary
- KKR Real Estate Finance Trust reports portfolio growth of 53% from 2018 to 2023 and operates in a market that is expected to grow at a double-digit rate.
- The company has a significant amount of liquidity and no debt maturities over the next two years, suggesting potential for further loan portfolio growth.
- KKR Real Estate appears to be trading at a discount to its book value, making it an attractive investment opportunity.
- In the past, the company traded at 1.6x its book value per share. Right now, the price/book value stands at close to 0.49x.
KKR Real Estate Finance Trust Inc. ( KREF ) reports a 15% dividend yield and stock repurchases. KREF reports a portfolio growth of 53% from 2018 to 2023, and operates in a market that appears to grow at a double digit. Considering previous loan growth and the total amount of current liquidity, I would expect further increase in the loan portfolio in the coming years. In addition, even taking into account potential risks from volatility in the interest rates or failed loans, I believe that KREF trades too cheap at close to 0.49x its book value.
KKR Real Estate: Loan Distribution, And A Lot Of Liquidity.
Real Estate Finance Trust is a real estate finance company focused primarily on loans secured by properties operated by third parties in highly concentrated urban markets within the United States....
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For further details see:
Key Factors Behind KKR Real Estate's Dividend Growth, And The Risks.