NYSE$KREF

KKR Real Estate Finance Trust Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported a net loss but distributable earnings improved due to loan repayments and reduced debt.

KKR Real Estate Finance Trust Inc. reported a net loss attributable to common stockholders of ($13.0) million, or ($0.19) per diluted share, for the third quarter of 2024. However, distributable earnings improved significantly to $25.9 million, or $0.37 per diluted share. The company received $290.0 million in loan repayments and repaid $267.8 million in financing, net, reducing debt-to-equity and total leverage ratios.

  • Liquidity position of $637.6 million, including $108.8 million in cash.
  • Received $290.0 million in loan repayments and funded $55.3 million in loan principal.
  • Repaid $267.8 million in financing, net, reducing debt-to-equity ratio to 1.8x and total leverage ratio to 3.8x.
  • Current loan portfolio of $6.3 billion with 99% floating rate and a weighted average unlevered all-in yield of 8.3%.

Headline financials

Total Revenue

$37M

Previous: $44.6M-17.1%
EPS

-$0.19

Previous: $0.25-176.0%
Capital Expenditures

-$363K

No prior period
Free Cash Flow

-$7.75M

Previous: $27.1M-128.6%
Net Income

-$7.39M

Previous: $27.1M-127.2%
Operating Income

-$200M

Previous: -$110M-81.6%
Gross Profit

-$17.3M

Previous: $21.6M-180.0%
Stock-Based Comp

$2.18M

Previous: $2.18M-0.2%

Revenue & EPS history

KKR · Revenue · Quarterly

$37M

Q3 2024-17.1%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

KREF is positioned to re-enter the lending market and invest in the attractive real estate credit environment, with higher levels in 2025, which will lead to incremental capital for new investments.

Tailwinds

  • KREF is now positioned to re-enter the lending market
  • KREF can invest in this attractive real estate credit environment
  • KREF continues to operate with high levels of liquidity exceeding $630 million
  • Year to date repayments surpassed $1 billion
  • Projecting higher levels in 2025, which will lead to incremental capital for new investments

Headwinds

  • General political conditions
  • Economic conditions
  • Competitive conditions
  • Deterioration in the performance of the properties securing our investments
  • Difficulty accessing financing or raising capital

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-0.6%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-1.3%

Avg return

30 days after

29%

12 / 41 earnings

Positive

+15.3%

Q1 2020

Best reaction

-14.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.1%-6.7%-3.7%
Q4 2025-3.7%-11.7%-12.2%
Q3 2025-1.3%+0.7%-3.9%
Q2 2025-0.5%+0.5%+3.3%
Q1 2025-3.7%-1.1%-3.3%
Q4 2024+9.7%+10.6%+6.3%
Q3 2024-3.1%-2.9%-4.8%
Q2 2024+14.3%+13.0%+11.3%
Q1 2024-0.7%-2.3%-2.8%
Q4 2023-14.0%-19.3%-16.0%
Q3 2023-1.0%-0.3%+16.3%
Q2 2023-3.1%-1.5%-9.6%
Q1 2023-8.7%-5.5%-1.4%
Q4 2022-4.6%-4.6%-18.0%
Q3 2022-1.8%+5.3%-2.2%
Q2 2022-0.2%+3.5%+3.2%
Q1 2022-2.7%-4.6%+0.4%
Q4 2021+0.0%-1.1%-6.3%
Q3 2021+2.2%-2.6%-3.3%
Q2 2021-0.2%+0.6%-1.0%
Q1 2021+2.5%+7.4%+7.4%
Q4 2020-1.4%-0.8%+1.6%
Q3 2020+0.2%-0.4%+9.7%
Q2 2020+0.8%+4.5%+9.5%
Q1 2020+15.3%+9.9%+13.7%
Q4 2019+0.5%+0.4%-53.6%
Q3 2019-0.6%-2.1%+0.1%
Q2 2019-0.8%-2.2%-5.6%
Q1 2019+0.4%+0.9%-1.9%
Q4 2018-0.3%-0.5%+0.3%
Q3 2018+0.7%+3.5%-1.9%
Q2 2018+0.3%-3.2%+1.8%
Q1 2018+1.1%+2.8%+2.1%
Q4 2017-1.8%-0.1%+1.6%
Q4 2015-1.8%-0.1%+1.6%
Q3 2016-1.8%-1.6%+3.5%
Q3 2017-1.8%-1.6%+3.5%
Q2 2017-2.3%-0.6%+3.1%
Q2 2016-2.3%-0.6%+3.1%
Q4 2016-0.4%-2.2%-2.4%
Q1 2017-0.4%-2.2%-2.4%
Q1 2016

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro