KKR Real Estate Finance Trust Inc. Common Stock (KREF)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach KKR Real Estate Finance Trust as a lender, not as a building owner. It originates and acquires transitional senior loans against U.S. commercial real estate. In lending, the moat is underwriting discipline and funding cost; the figures show neither a durable advantage nor clean credit. Filed results are volatile: in fiscal year 2024, the year ended 2024-12-31, net income was $35.6M and diluted EPS was $0.19. In fiscal year 2025, the year ended 2025-12-31, it swung to a net loss of $47.1M and diluted EPS of -$1.05. Deterioration accelerated: in fiscal Q1 2026, the quarter ended 2026-03-31, net loss was $56.1M and diluted EPS was -$0.96; in fiscal Q2 2026, the quarter ended 2026-06-30, net loss was $116.4M and diluted EPS was -$1.95. FairStock's calculations at the 2026-10-13 close show price-to-book of 0.57 and a negative P/E of -1.82, with ROE -16.52%, ROCE -2.83%, debt-to-equity 4.36 and Piotroski 2/9. The price is below stated book value, a classic Graham signal, but for a leveraged lender that can mean the market distrusts the loan book. The 5.89% dividend yield is not supported by current losses. FairStock labels it a TURNAROUND—loss in the latest year after earlier profits. Before trusting book value, I would want CET1, net interest margin and credit-loss data; CET1, NIM and combined ratio are not provided. At a FairStock score of 34/100, this looks cheap but fragile, not a safe bargain.

In plain English: KKR Real Estate Finance Trust lends money to owners of commercial real estate, mainly through senior loans. The business looks weak right now: it has reported losses, and the most recent quarterly loss was much larger than earlier ones. The stock trades below the value of its assets minus debts on its books, so it looks cheap on paper, but that discount may reflect real worries about the loan book.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer