KKR News = KKR Real Estate Finance Trust Reports Second Quarter Loss
KKR Real Estate Finance Trust Inc. (NYSE: KREF) reported a loss of $20 million, or 37 cents per share, for the second quarter of 2023. This compares to earnings of $26 million, or 46 cents per share, in the same quarter last year.
The company’s revenue for the quarter was $159.6 million, down from $174.1 million in the second quarter of 2022.
KKR Real Estate Finance Trust attributed the loss to a number of factors, including higher interest rates, rising inflation, and the ongoing war in Ukraine. The company also said that it had taken a $10 million non-cash charge related to the remeasurement of its investment in a joint venture.
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Despite the loss, KKR Real Estate Finance Trust said that it remains “well-positioned” for the future. The company said that it has a strong portfolio of assets and a diversified lending platform.
Photo by Avi Waxman on Unsplash
Analysts’ Reaction
Analysts were generally negative about KKR Real Estate Finance Trust’s second quarter results.
“The results were disappointing,” said Michael Carrier, an analyst at Keefe, Bruyette & Woods. “Higher interest rates and rising inflation are weighing on the company’s performance.”
“The loss is a bit of a surprise,” said John McDonald, an analyst at Morningstar. “The company had been doing well in recent quarters, but the second quarter results were a setback.”
Outlook
KKR Real Estate Finance Trust said that it expects to see continued challenges in the near term. However, the company said that it is confident in its long-term prospects.
“We remain confident in our ability to generate attractive risk-adjusted returns for our shareholders,” said Michael Schmidt, the company’s chief executive officer.
“We are focused on managing through the current challenges and positioning ourselves for long-term growth,” said Schmidt.
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