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

KKR Real Estate Finance Trust

07/02/2024 16:03

** Shares of KKR Real Estate Finance Trust  KREF.N  dive 20%
to $9.42, lowest since Mar 2020, after co slashes its dividend
    ** Commercial mortgage REIT backed by KKR  KKR.N  late Tues
said its board declared Q1 dividend of 25 cents/sh
    ** That represents 42% cut from prior qtrly payout of 43
cents/sh
    ** 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 took title to collateral of one
defaulted senior office loan in Philadelphia with an outstanding
principal balance of $149.8 mln, which resulted in a $58.7 mln
(or 85 cents/sh) realized loss
    ** KREF shares last down 15% at $10.01 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))