KKR Real Estate Finance Trust’s (KREF) Buy Rating Reiterated at BTIG Research

BTIG Research restated their buy rating on shares of KKR Real Estate Finance Trust (NYSE:KREF) in a research note issued to investors on Monday morning,Benzinga reports. They currently have a $13.00 target price on the stock.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of KKR Real Estate Finance Trust in a research report on Thursday, January 22nd. Wells Fargo & Company decreased their price objective on KKR Real Estate Finance Trust from $11.00 to $10.00 and set an “overweight” rating for the company in a report on Friday, October 24th. JPMorgan Chase & Co. reissued a “neutral” rating and issued a $9.00 target price (down previously from $9.50) on shares of KKR Real Estate Finance Trust in a research report on Monday, October 20th. Finally, Keefe, Bruyette & Woods reduced their price target on KKR Real Estate Finance Trust from $8.75 to $8.25 and set a “market perform” rating for the company in a research report on Thursday, January 8th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $10.45.

KKR Real Estate Finance Trust Trading Down 3.6%

NYSE KREF opened at $7.89 on Monday. KKR Real Estate Finance Trust has a one year low of $7.55 and a one year high of $11.53. The company has a debt-to-equity ratio of 3.63, a current ratio of 423.43 and a quick ratio of 423.43. The firm has a market cap of $516.39 million, a P/E ratio of -7.51 and a beta of 0.88. The stock’s 50-day moving average is $8.33 and its 200-day moving average is $8.74.

KKR Real Estate Finance Trust (NYSE:KREF) last announced its earnings results on Tuesday, February 3rd. The company reported $0.22 EPS for the quarter, topping the consensus estimate of $0.14 by $0.08. KKR Real Estate Finance Trust had a negative net margin of 10.80% and a negative return on equity of 1.11%. The firm had revenue of $32.72 million for the quarter, compared to the consensus estimate of $26.06 million. Sell-side analysts anticipate that KKR Real Estate Finance Trust will post 1.05 earnings per share for the current fiscal year.

KKR Real Estate Finance Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 12.7%. The ex-dividend date was Wednesday, December 31st. KKR Real Estate Finance Trust’s dividend payout ratio is presently -285.71%.

Insider Buying and Selling

In other news, Director Ralph F. Rosenberg sold 125,289 shares of the stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $8.25, for a total value of $1,033,634.25. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Christen E.J. Lee bought 10,000 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The stock was purchased at an average cost of $7.80 per share, with a total value of $78,000.00. Following the completion of the purchase, the director directly owned 229,133 shares of the company’s stock, valued at $1,787,237.40. This represents a 4.56% increase in their position. The SEC filing for this purchase provides additional information. 1.90% of the stock is owned by company insiders.

Institutional Trading of KKR Real Estate Finance Trust

A number of large investors have recently added to or reduced their stakes in KREF. Geneos Wealth Management Inc. increased its stake in shares of KKR Real Estate Finance Trust by 100.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company’s stock worth $30,000 after purchasing an additional 1,725 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in KKR Real Estate Finance Trust by 742.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,151 shares of the company’s stock valued at $36,000 after purchasing an additional 3,658 shares during the last quarter. Allworth Financial LP grew its holdings in KKR Real Estate Finance Trust by 3,904.6% during the second quarter. Allworth Financial LP now owns 4,365 shares of the company’s stock worth $38,000 after purchasing an additional 4,256 shares during the period. Cloud Capital Management LLC bought a new position in KKR Real Estate Finance Trust during the third quarter worth about $48,000. Finally, Tower Research Capital LLC TRC increased its position in KKR Real Estate Finance Trust by 64.1% during the second quarter. Tower Research Capital LLC TRC now owns 5,732 shares of the company’s stock worth $50,000 after buying an additional 2,238 shares during the last quarter. Institutional investors and hedge funds own 70.23% of the company’s stock.

Key Headlines Impacting KKR Real Estate Finance Trust

Here are the key news stories impacting KKR Real Estate Finance Trust this week:

• Positive Sentiment: Earnings and revenue beat — KREF reported Q4 EPS of $0.22 versus consensus ~ $0.13–$0.14 and revenue of $32.7M (above estimates), showing operating upside for the quarter. Business Wire: Q4 Results
• Positive Sentiment: Analyst support — BTIG reaffirmed a Buy rating, which can provide a floor for investor sentiment while management executes on dispositions and deleveraging. BTIG Reaffirms Buy
• Neutral Sentiment: Full context available — Management hosted an earnings call and posted a transcript/slide deck that outline strategy, portfolio actions and timing; these materials are important for assessing how aggressive the resolutions and repayments will be. Earnings Call Transcript
• Negative Sentiment: Large repayment and asset-resolution program — Management outlined a targeted $1.5B of repayments and said it will pursue “aggressive” asset resolutions; that implies possible realized losses, continued portfolio runoff and lower near-term distributable earnings. MSN: Repayment & Asset Resolutions
• Negative Sentiment: Dividend uncertainty and balance-sheet metrics — Management is “evaluating” dividend strategy, which raised investor concern about cuts or pauses; the REIT also shows high leverage and negative recent profitability metrics, factors that increase sensitivity to asset-sale
  outcomes. Yahoo: Call Highlights

KKR Real Estate Finance Trust Company Profile

KKR Real Estate Finance Trust, Inc (NYSE: KREF) is a mortgage real estate investment trust sponsored by KKR & Co Inc The company focuses on originating, acquiring, financing and managing a diversified portfolio of commercial real estate debt and real estate-related assets across the United States and select European markets.

The trust’s investment strategy is centered on lending to high-quality office, industrial, retail, multifamily and hotel properties. Its portfolio primarily consists of senior mortgage loans, mezzanine loans, floating-rate debt securities and preferred equity positions.