KKR Real Estate Finance Trust Inc.
$6.96
+2.1%KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial mortgage loans, and commercial mortgage-backed securities. The company has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. KKR Real Estate Finance Trust Inc. was incorporated in 2014 and is headquartered in New York, New York.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -6.6).
Valuation inputs: P/E -6.6, earnings yield N/A, momentum +2.1%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -4.0%, ROIC +4.2%).
Profitability stack: net margin -10.3%, ROE -4.0%, ROIC +4.2%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +81.0%, momentum +2.1%, net margin -10.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
KKR Real Estate Finance Trust Inc. Market vs Earnings Trajectory
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KKR Real Estate Finance Trust Inc. Fair Value Envelope
KKR Real Estate Finance Trust Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Interest or tax burden: Strong operational performance but thin net margins indicate high interest expenses or unfavorable tax position eating into profits.
KKR Real Estate Finance Trust Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Deteriorating cash generation: Both declining FCF and weak conversion rate signal fundamental challenges. Investigate margin pressure, rising costs, or working capital issues.
KKR Real Estate Finance Trust Inc. Funding & Solvency Profile
Financial Health Analysis
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
KKR Real Estate Finance Trust Inc. Street Expectations Map
Wall Street analysts project that KREF stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 7.00, with estimates ranging from a low of 7.00 to a high of 7.00.
The consensus 1-year price target stands at 7.00, with estimates ranging from a low of 7.00 to a high of 7.00.
Analyst Consensus Analysis
Upside Potential
Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.
KKR Real Estate Finance Trust Inc. Insider Positioning
During the last 12 months, insiders have purchased $1.22M and sold $1.21M worth of KREF shares, resulting in $13K of net buying activity.
3 Months
100.0K
603.54K
0
0.00
+604K
+$604K
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
78.7K
616.94K
144.6K
1.21M
-590K
-$590K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Salem Matthew A
Director, Officer: Chief Executive Officer
$613K
Mattson W Patrick
Officer: President, Coo And Secretary
$344K
Ahern Terrance R
Director
$185K
Lee Christen E.J.
Director
$78K
Top Sellers
Rosenberg Ralph F
Director
$1.03M
Lee Christen E.J.
Director
$91K
Decious Kendra
Officer: Cfo And Treasurer
$79K
Galligan Kelly
Officer: General Counsel And Secretary
$4K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $13K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
4 insider buyers and 4 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.
kref Dividend History
Learning Layer
Related Guides
Build conviction on KREF by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.