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Dec 31, 2023
KKR Q4 2023 Earnings Report
Reported financial results for the quarter and full year ended December 31, 2023.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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