KKR Real Estate Finance Trust Inc. Files 2024 10-K

TL;DR

KKR Real Estate Finance Trust Inc. (KREF) filed its 2024 10-K. Full financials out now.

AI Summary

KKR Real Estate Finance Trust Inc. filed its 2024 10-K on February 3, 2025, reporting on its fiscal year ending December 31, 2024. The company, incorporated in Maryland, operates as a Real Estate Investment Trust and is headquartered at 30 Hudson Yards, New York, NY. Key financial data and asset details for the period are presented within this comprehensive filing.

Why It Matters

This filing provides investors and analysts with a detailed overview of KKR Real Estate Finance Trust Inc.'s financial performance, assets, and operations for the fiscal year 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — This is a standard annual financial filing providing historical data and disclosures, not indicative of immediate risk.

Key Numbers

• 2024-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2025-02-03 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• KKR Real Estate Finance Trust Inc. (company) — Filer of the 10-K
• 0001631596 (company) — Central Index Key
• 2024-12-31 (date) — Fiscal Year End
• 2025-02-03 (date) — Filing Date
• 30 Hudson Yards, New York, NY 10001 (location) — Business and Mail Address

FAQ

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
• $1,017.3 million — 5, 2017. We had a common book value of $1,017.3 million as of December 31, 2024 and established
• $6,271.6 m — fied investment portfolio which totaled $6,271.6 million, consisting primarily of performi
• $624.4 billion — ed on the NYSE (NYSE: KKR) and reported $624.4 billion of assets under management ("AUM") as o
• $79.6 billion — board of directors, KKR Real Estate had $79.6 billion of AUM as of September 30, 2024. Mr. Ro
• $6.3 billion — aggregate investment portfolio totaled $6.3 billion as of December 31, 2024, which is prima
• $5.9 billion — , 2024, which is primarily comprised of $5.9 billion of total outstanding principal of senio
• $335.8 million — ipal of senior and mezzanine CRE loans, $335.8 million net investment directly or indirectly i
• $35.6 million — real estate owned assets ("REO"), and a $35.6 million investment in CMBS B-Pieces (indirectly
• $119.6 million — ludes the impact of a CECL allowance of $119.6 million. The map below illustrates the geogra

Filing Documents

• kref-20241231.htm (10-K) — 3721KB
• a202412-exhibit191.htm (EX-19.1) — 47KB
• a202412-exhibit211.htm (EX-21.1) — 33KB
• a202412-exhibit231.htm (EX-23.1) — 2KB
• a202412-exhibit311.htm (EX-31.1) — 11KB
• a202412-exhibit312.htm (EX-31.2) — 11KB
• a202412-exhibit321.htm (EX-32.1) — 6KB
• a202412-exhibit322.htm (EX-32.2) — 6KB
• a202412-exhibit971.htm (EX-97.1) — 21KB
• kref-20241231_g1.jpg (GRAPHIC) — 15KB
• kref-20241231_g2.jpg (GRAPHIC) — 33KB
• kref-20241231_g3.jpg (GRAPHIC) — 29KB
• kref-20241231_g4.jpg (GRAPHIC) — 67KB
• kref-20241231_g5.jpg (GRAPHIC) — 25KB
• kref-20241231_g6.jpg (GRAPHIC) — 51KB
• kref-20241231_g7.jpg (GRAPHIC) — 52KB
• 0001631596-25-000012.txt ( ) — 18022KB
• kref-20241231.xsd (EX-101.SCH) — 104KB
• kref-20241231_cal.xml (EX-101.CAL) — 107KB
• kref-20241231_def.xml (EX-101.DEF) — 614KB
• kref-20241231_lab.xml (EX-101.LAB) — 1045KB
• kref-20241231_pre.xml (EX-101.PRE) — 862KB
• kref-20241231_htm.xml (XML) — 2917KB

RISK FACTORS

ITEM 1A. RISK FACTORS 10

UNRESOLVED STAFF COMMENTS

ITEM 1B. UNRESOLVED STAFF COMMENTS 52

CYBERSECURITY

ITEM 1C. CYBERSECURITY 52

PROPERTIES

ITEM 2. PROPERTIES 53

LEGAL PROCEEDINGS

ITEM 3. LEGAL PROCEEDINGS 53

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 53 PART II. 54

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 54

RESERVED

ITEM 6. RESERVED 56

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 57

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 81

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 83

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 132

CONTROLS AND PROCEDURES

ITEM 9A. CONTROLS AND PROCEDURES 132

OTHER INFORMATION

ITEM 9B. OTHER INFORMATION 133

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 142 PART III. 134

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 134

EXECUTIVE COMPENSATION

ITEM 11. EXECUTIVE COMPENSATION 134

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 134

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 134

PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 134 PART IV. 134

EXHIBITS FINANCIAL STATEMENT SCHEDULES

ITEM 15. EXHIBITS FINANCIAL STATEMENT SCHEDULES 134

FORM 10-K SUMMARY

ITEM 16. FORM 10-K SUMMARY 141

SIGNATURES

SIGNATURES 142 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 $1,017.3 million as of December 31, 2024 and established a diversified investment portfolio which totaled $6,271.6 million, consisting primarily of performing senior 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 stockholders

View Full Filing

View this 10-K filing on SEC EDGAR