KREF dividend yield – KKR Real Estate Finance Trust Tightens Discount to Book Value, Offers 12.2% Dividend Yield
December 28, 2023
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KKR ($NYSE:KREF) Real Estate Finance Trust Inc. (KREF) is a real estate finance company specialized in providing short-term debt capital for real estate investments. It recently tightened its discount to book value and currently offers a dividend yield of 12.2%. KREF provides financing for real estate investments through customized solutions such as floating rate loans, senior secured loans, mezzanine loans, and preferred equity. Its portfolio comprises commercial loans, multifamily loans, hospitality loans, healthcare loans, and other real estate related loans. Given the current environment of rising interest rates, KREF’s floating-rate loans are likely to offer it protection against declining net asset values.
Also, its portfolio is well diversified by loan type, geography and property sector. This provides KREF with an additional layer of protection against potential losses due to changes in the real estate market. KREF’s dividend yield of 12.2% is attractive for income-seeking investors looking for a steady source of income from their investments.
Dividends – KREF dividend yield
This is possible due to the fact that the company has been issuing consistent annual dividends per share of 1.72 USD over the last three years. Moreover, they are expected to maintain the same rate of dividend yields across 2021 to 2023, with values of 13.18%, 9.51%, and 8.23% respectively, with an average of 10.31%.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for KREF. More…
| Total Revenues | Net Income | Net Margin |
| 180.78 | -20.58 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for KREF. More…
| Operations | Investing | Financing |
| 156.05 | -269.52 | 44.47 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for KREF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.63k | 6.17k | 20.97 |
Key Ratios Snapshot
Some of the financial key ratios for KREF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – KREF Intrinsic Value Calculation
At GoodWhale, we analyze the fundamentals of KKR REAL ESTATE FINANCE TRUST to provide our customers with an unbiased view of its potential long-term value. Our proprietary Valuation Line yields a fair value of $12.2 per share for KKR REAL ESTATE FINANCE TRUST. This suggests that the stock is currently overvalued at its trade price of $14.0, with an overvaluation of 14.7%. More…
Peers
The Company’s competitors include TPG RE Finance Trust Inc, Angel Oak Mortgage Inc, and Granite Point Mortgage Trust Inc.
– TPG RE Finance Trust Inc ($NYSE:TRTX)
TPG RE Finance Trust Inc. is a commercial real estate finance company that focuses on originating and acquiring loans secured by first mortgage liens on commercial properties. The Company operates as a real estate investment trust for federal income tax purposes. TPG RE Finance Trust Inc. is headquartered in New York, New York.
– Angel Oak Mortgage Inc ($NYSE:AOMR)
As of 2022, Angel Oak Mortgage Inc has a market cap of 230.17M. The company is a mortgage lender that provides financing for residential and commercial properties.
– Granite Point Mortgage Trust Inc ($NYSE:GPMT)
Granite Point Mortgage Trust Inc. is a real estate investment trust, which focuses on originating, financing and managing senior floating rate commercial mortgage loans and other debt and equity investments. The company has a market cap of $350.75 million as of 2022. It operates through the following segments: Commercial Real Estate, Residential Real Estate and Corporate. The Commercial Real Estate segment includes loans secured by office, retail, hotel, industrial and other properties. The Residential Real Estate segment comprises loans secured by multifamily properties. The Corporate segment includes all other activities. Granite Point Mortgage Trust was founded on April 28, 2009 and is headquartered in New York, NY.
Summary
KKR Real Estate Finance Trust (KREF) is an attractive investment opportunity. KREF also has a strong track record of producing consistent and reliable returns. The company has demonstrated strong credit underwriting and risk management practices, with a large portion of investments secured by underlying collateral.
Additionally, KREF’s proactive management and execution of loan servicing activity ensures that it is well positioned to meet potential challenges in the market. Overall, KREF is an appealing investment option for those seeking exposure to the commercial real estate sector.
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