Last Updated: 19 Sep 2024
Executive Summary
KKR Real Estate Finance Trust Inc. (KREF) is a mortgage real estate investment trust that focuses on originating and acquiring senior loans secured by commercial real estate assets. The company has a market capitalization of $873.6 million and trades on the NYSE. KREF's latest stock price is $12.86.
Company Overview
KREF was founded in 2014 and is headquartered in New York, New York. The company's investment objective is to provide its stockholders with a high level of current income and, to a lesser extent, capital appreciation. KREF achieves this objective by investing in a diversified portfolio of senior loans secured by commercial real estate assets.
Fundamental Analysis
KREF's financial performance has been strong in recent years. The company's revenue has grown from $79.9 million in 2017 to $99.0 million in 2022. Net income has also grown from $22.2 million in 2017 to $33.2 million in 2022. KREF's earnings per share have grown from $0.16 in 2017 to $0.21 in 2022.
KREF's balance sheet is also strong. The company has a debt-to-equity ratio of 0.53, which is below the industry average of 0.65. KREF also has a strong cash position, with $124.2 million in cash and cash equivalents as of December 31, 2022.
Technical Analysis
KREF's stock price has been in a downtrend since reaching a high of $12.98 in July 2022. The stock price has fallen below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
The technical analysis suggests that KREF's stock price is likely to continue to decline in the short term. The stock price is below its moving averages and the RSI is oversold. However, the company's fundamentals are strong and the stock price could rebound if the market sentiment improves.
Long Term Outlook
The long-term outlook for KREF is positive. The company has a strong track record of financial performance and its balance sheet is strong. The company's focus on senior loans secured by commercial real estate assets is also a positive factor, as this type of investment is typically less risky than other types of real estate investments.
Analyst Recommendations
Analysts have a mixed view on KREF. One analyst has a Strong Buy rating on the stock, four analysts have a Buy rating, one analyst has a Hold rating, and no analysts have a Sell or Strong Sell rating. The average analyst target price is $12.90.
