KKR Real Estate Finance Trust In Up 3.5% To $10.49 After Earnings Beat

Tuesday, October 24, 2023 - KKR Real Estate Finance Trust In (KREF) reported upside earnings and revenues today.

Analyst expectations for KKR Real Estate Finance Trust In earnings per share (EPS) were at $0.22, with the company surpassing those estimates with a reported EPS of $0.25, leading to a positive surprise of $0.03 per share (14%). KKR Real Estate Finance Trust In's earnings were down 50% year-over-year as the firm reported an EPS of $0.50 in its year-ago quarter. The negative annual growth shows the Real Estate company isn't performing well amid current economic conditions.

Consensus estimates for KKR Real Estate Finance Trust In revenue averaged out to $42.9 million, with the business managing to beat those expectations with reported third-quarter revenue of $44.6 million. The $1.7 million (4%) positive revenue surprise led to negative 6% growth year-over-year as the firm reported revenue of $47.3 million in its year-ago quarter. The lower earnings growth compared to revenue points to KKR Real Estate Finance Trust In not being able to improve its profit margin.

The stock is up 3.5% to $10.49 after the report.

KKR Real Estate Finance Trust In's profit margins took a hit as earnings fell at a faster pace than revenues.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

KKR Real Estate Finance Trust In has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 16, putting KKR Real Estate Finance Trust In in the bottom 25% of stocks. The firm set a 52-week low on May 11, 2023 at $9.94 and set a 52-week high on October 28, 2022 at $17.8.

KKR Real Estate Finance Trust Inc is a real estate finance company that focuses primarily on originating and acquiring senior mortgage loans secured by CRE assets. Its investment strategy is to originate or acquire senior mortgage loans collateralized by institutional-quality CRE assets that are owned and operated by experienced and well-capitalized sponsors and located in liquid markets with strong underlying fundamentals. KKR manages investments across multiple asset classes, including private equity, real estate, energy, infrastructure, credit, and hedge funds. The company's investment objective is capital preservation and generating attractive risk-adjusted returns for its stockholders over the long term, primarily through dividends.