NYSE$KREF

KKR Real Estate Finance Trust Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results for the quarter and full year ended December 31, 2023.

KKR Real Estate Finance Trust Inc. reported a net loss attributable to common stockholders of ($18.7) million, or ($0.27) per diluted share, and Distributable Earnings (Loss) of ($26.0) million, or ($0.37) per diluted share, for the fourth quarter of 2023. The Board of Directors declared a dividend of $0.25 per share of common stock with respect to the first quarter of 2024.

  • Funded $138.7 million for loans closed in previous years and received loan repayments of $188.1 million.
  • Current loan portfolio of $7.6 billion with 99% floating rate and a weighted average unlevered all-in yield of 9.0%.
  • Multifamily and industrial assets represent 55% of the loan portfolio.
  • Diversified financing sources totaling $8.9 billion with $2.8 billion of undrawn capacity.

Headline financials

Total Revenue

$46.5M

Previous: $51.9M-10.4%
EPS (adj)

-$0.37

Previous: $0.18-305.6%
Capital Expenditures

$0.00

No prior period
Free Cash Flow

$36.8M

No prior period
Net Income

-$13.1M

Previous: $20.1M-165.2%
Operating Income

-$12.9M

Previous: $20.2M-164.1%
Stock-Based Comp

$1.57M

Previous: $1.49M+4.8%

Revenue & EPS history

KKR · Revenue · Quarterly

$46.5M

Q4 2023-10.4%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

KREF is well positioned for the current market environment with strong liquidity, significant resources, and expertise through its integration with KKR's broader real estate platform.

Tailwinds

  • Strong liquidity profile.
  • Significant resources and expertise through KKR integration.
  • Extensive experience owning and managing real estate through KKR.
  • Ability to maximize the value of the watchlist portfolio.
  • Expectations for future interest rate cuts.

Headwinds

  • Value creation on select REO assets will require time and impact earnings in the interim.
  • Dividend set at $0.25 per share due to these factors.
  • Reliance on operating earnings from the performing loan portfolio to cover the dividend.
  • Uncertainty regarding the timing and extent of interest rate cuts.
  • Potential for further realized losses on loan write-offs.

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 Q4 2023

Historical avgQ4 2023

-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

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