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Sep 30, 2024
KKR Q3 2024 Earnings Report
Reported a net loss but distributable earnings improved due to loan repayments and reduced debt.
Key Takeaways
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%.
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.
Positive Outlook
- 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
Challenges Ahead
- General political conditions
- Economic conditions
- Competitive conditions
- Deterioration in the performance of the properties securing our investments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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