KKR Real Estate Finance sinks to 4-yr low after dividend slash

ARMOUR Residential REIT

07/02/2024 17:34

(Updates, adds stock activity of peers)
    ** Shares of KKR Real Estate Finance Trust  KREF.N  on Weds
plunge as much as 20% to $9.42, lowest since Mar 2020, after co
slashed its dividend amid souring loans
    ** KREF also on track for biggest one-day pct drop since Mar
2020
    ** Commercial mortgage REIT backed by KKR  KKR.N  late Tues
said its board declared Q1 dividend of 25 cents/sh, down 42%
from prior payout of 43 cents
    ** In a statement, CEO Matt Salem said current level
reflects expectations "for covering the dividend with operating
earnings from our performing loan portfolio while patiently
executing the investment thesis for our REO assets", along with
expected future interest rates cuts
    ** For Q4, co reported net loss of 27 cents/sh. Analysts on
avg were expecting a net profit of 26 cents, per LSEG data
    ** Co said in Dec it realized ~$59 mln loss on a
Philadelphia office loan
    ** Shares of peers also falling on Weds: Blackstone Mortgage
 BXMT.N  4%, Starwood Property Trust  STWD.N  2%, Ares
Commercial Real Estate  ACRE.N  4.5%, Annaly Capital  NLY.N 
1.5%, TPG RE Finance  TRTX.N  6%
    ** KREF last down 15.1% at $10 on the session and now off
~24% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))