KKR Real Estate Finance Trust Inc. Files 2023 Annual Report

TL;DR

<b>KKR Real Estate Finance Trust Inc. has submitted its annual 10-K filing for the fiscal year 2023.</b>

AI Summary

KKR Real Estate Finance Trust Inc. (KREF-PA) filed a Annual Report (10-K) with the SEC on February 6, 2024. KKR Real Estate Finance Trust Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 30 Hudson Yards, Suite 7500, New York, NY 10001. The filing includes data for the fiscal years 2023, 2022, and 2021. The company is incorporated in Maryland.

Why It Matters

For investors and stakeholders tracking KKR Real Estate Finance Trust Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of KKR Real Estate Finance Trust Inc.'s financial performance, operations, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. The detailed financial data and disclosures within the report are essential for understanding the company's asset base, liabilities, and equity structure as of December 31, 2023, and for comparing performance against prior years.

Risk Assessment

Risk Level: — KKR Real Estate Finance Trust Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report, indicating a routine disclosure rather than an immediate event, but the nature of real estate finance can involve inherent market and financial risks.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K filing to understand KKR Real Estate Finance Trust Inc.'s performance and potential risks in the current market environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-06 — Filing Date (Filed as of date)

Key Players & Entities

• KKR Real Estate Finance Trust Inc. (company) — Filer name
• 30 Hudson Yards, Suite 7500, New York, NY 10001 (address) — Business and mailing address
• 2023-12-31 (date) — Conformed period of report
• 2024-02-06 (date) — Filed as of date
• Maryland (location) — State of incorporation

Forward-Looking Statements

• KREF will continue to operate as a Real Estate Investment Trust (REIT) in the foreseeable future. (KKR Real Estate Finance Trust Inc.) — high confidence, target: 2025-12-31

FAQ

Industry Context

KKR Real Estate Finance Trust Inc. operates as a real estate investment trust (REIT), focusing on originating and investing in real estate debt investments.

Regulatory Implications

The company is subject to regulations governing real estate investment trusts and financial reporting standards set by the SEC.

What Investors Should Do

1. Analyze the company's financial statements for the fiscal year ended December 31, 2023.
2. Review the risk factors section for potential challenges and uncertainties.
3. Compare key financial metrics with the previous fiscal years (2022 and 2021) to identify trends.

Key Dates

• 2024-02-06: 10-K Filing — Annual report submission for fiscal year 2023

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share KREF New York Stock Exchange
• $400.0 million — ober 2014 with an initial commitment of $400.0 million from KKR. We raised an additional $438.
• $438.1 million — llion from KKR. We raised an additional $438.1 million in equity commitments from third-party
• $838.1 m — ght our total committed capital base to $838.1 million, which was fully drawn prior to o
• $225.9 million — ("IPO") that generated net proceeds of $225.9 million on May 5, 2017. We had a common book va
• $1,077.0 million — 5, 2017. We had a common book value of $1,077.0 million as of December 31, 2023 and established
• $7,752.3 m — fied investment portfolio which totaled $7,752.3 million, consisting primarily of performi
• $552.8 billion — ed on the NYSE (NYSE: KKR) and reported $552.8 billion of assets under management ("AUM") as o
• $68 billion — of directors, KKR Real Estate had over $68 billion of AUM as of December 31, 2023. Mr. Ros
• $7.8 billion — aggregate investment portfolio totaled $7.8 billion as of December 31, 2023, which is prima
• $7.6 billion — , 2023, which is primarily comprised of $7.6 billion of total outstanding principal of senio
• $158.6 million — ipal of senior and mezzanine CRE loans, $158.6 million net investment in real estate owned ass
• $35.7 million — real estate owned assets ("REO"), and a $35.7 million investment in CMBS B-Pieces (indirectly
• $212.5 million — ludes the impact of a CECL allowance of $212.5 million. The map below illustrates the geogra

Filing Documents

• kref-20231231.htm (10-K) — 4021KB
• a202312-exhibit1013.htm (EX-10.13) — 18KB
• a202312-exhibit211.htm (EX-21.1) — 25KB
• a202312-exhibit231.htm (EX-23.1) — 2KB
• a202312-exhibit311.htm (EX-31.1) — 11KB
• a202312-exhibit312.htm (EX-31.2) — 11KB
• a202312-exhibit321.htm (EX-32.1) — 6KB
• a202312-exhibit322.htm (EX-32.2) — 6KB
• kref-20231231_g1.jpg (GRAPHIC) — 15KB
• kref-20231231_g2.jpg (GRAPHIC) — 37KB
• kref-20231231_g3.jpg (GRAPHIC) — 18KB
• kref-20231231_g4.jpg (GRAPHIC) — 82KB
• kref-20231231_g5.jpg (GRAPHIC) — 20KB
• kref-20231231_g6.jpg (GRAPHIC) — 62KB
• kref-20231231_g7.jpg (GRAPHIC) — 55KB
• 0001631596-24-000008.txt (&nbsp;) — 19207KB
• kref-20231231.xsd (EX-101.SCH) — 106KB
• kref-20231231_cal.xml (EX-101.CAL) — 96KB
• kref-20231231_def.xml (EX-101.DEF) — 736KB
• kref-20231231_lab.xml (EX-101.LAB) — 1143KB
• kref-20231231_pre.xml (EX-101.PRE) — 964KB
• kref-20231231_htm.xml (XML) — 3092KB

RISK FACTORS

ITEM 1A. RISK FACTORS 11

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 53

C . CYBERSECURITY

ITEM 1 C . CYBERSECURITY 53

PROPERTIES

ITEM 2. PROPERTIES 54

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 54

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 54 PART II. 55

MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 55

RESERVED

ITEM 6. RESERVED 57

MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 7. MANAGEMENT ' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 58

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 82

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 85

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 138

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 138

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 139

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 142 PART III. 140

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 140

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 140

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 140

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 140

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 140 PART IV. 140

EXHIBITS FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS FINANCIAL STATEMENT SCHEDULES 140

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 146

SIGNATURES

SIGNATURES 147 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements. There are many factors that may cause our actual results to differ materially from the forward-looking statements, including factors set forth under Part I, Item 1A. "Risk Factors" and Part I, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-K, as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and on the investor relations section of our website at www.

BUSINESS

ITEM 1. BUSINESS Our Company KREF is a real estate finance company that focuses primarily on originating and acquirin g transitional senior loans secured by institutional-quality commercial real estate ("CRE") properties that are owned and operated by experienced and well-capitalized sponsors and located in top markets with strong underlying fundamentals. Our target assets also include mezzanine loans, preferred equity and other debt-oriented instruments with these characteristics. Our investment objective is capital preservation and the generation of attractive risk-adjusted returns for our stockholders over the long term, primarily through dividends. We began our investment activities in October 2014 with an initial commitment of $400.0 million from KKR. We raised an additional $438.1 million in equity commitments from third-party investors and certain current and former employees of, and consultants to, KKR that brought our total committed capital base to $838.1 million, which was fully drawn prior to our initial public offering ("IPO") that generated net proceeds of $225.9 million on May 5, 2017. We had a common book value of $1,077.0 million as of December 31, 2023 and established a diversified investment portfolio which totaled $7,752.3 million, consisting primarily of performing senior and mezzanine commercial real estate loans. We are organized as a holding company externally managed by our Manager, an indirect subsidiary of KKR, and operate our business primarily through various subsidiarie s in a single segment that originates, acquires, and finances our target assets. We conduct our operations as a REIT for federal income tax purposes while operating our business in a manner that allows us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended, (the "Investment Company Act"). We generally will not be subject to U.S. federal income taxes on the portion of our annual net taxable income that we distribute to

View Full Filing

View this 10-K filing on SEC EDGAR