KKR Real Estate Finance Trust Inc. Q2 2024 10-Q Filing

TL;DR

KKR Real Estate Finance Trust Inc. filed its Q2 2024 10-Q. All systems go.

AI Summary

KKR Real Estate Finance Trust Inc. filed its quarterly report for the period ending June 30, 2024. The company, incorporated in Maryland, operates in the Real Estate Investment Trusts sector. Its principal executive offices are located at 30 Hudson Yards, Suite 7500, New York, NY 10001.

Why It Matters

This filing provides investors with an update on the financial performance and operational status of KKR Real Estate Finance Trust Inc. for the second quarter of 2024.

Risk Assessment

Risk Level: low — This filing is a standard quarterly report and does not contain immediate red flags.

Key Numbers

• 20240630 — Period End Date (The report covers the financial period ending on this date.)
• 20240722 — Filing Date (The date the 10-Q was officially filed with the SEC.)
• 1231 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• KKR Real Estate Finance Trust Inc. (company) — Filer of the 10-Q
• 30 Hudson Yards, Suite 7500, New York, NY 10001 (location) — Business and mailing address
• 212-750-8300 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share KREF New York Stock Exchange

Filing Documents

• kref-20240630.htm (10-Q) — 2883KB
• a202406-exhibit101.htm (EX-10.1) — 195KB
• a202406-exhibit311.htm (EX-31.1) — 11KB
• a202406-exhibit312.htm (EX-31.2) — 11KB
• a202406-exhibit321.htm (EX-32.1) — 6KB
• a202406-exhibit322.htm (EX-32.2) — 6KB
• kref-20240630_g1.jpg (GRAPHIC) — 15KB
• kref-20240630_g2.jpg (GRAPHIC) — 61KB
• 0001631596-24-000028.txt ( ) — 14586KB
• kref-20240630.xsd (EX-101.SCH) — 98KB
• kref-20240630_cal.xml (EX-101.CAL) — 100KB
• kref-20240630_def.xml (EX-101.DEF) — 595KB
• kref-20240630_lab.xml (EX-101.LAB) — 908KB
• kref-20240630_pre.xml (EX-101.PRE) — 777KB
• kref-20240630_htm.xml (XML) — 2456KB

- Financial Information

Part I - Financial Information 5

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 5 Condensed Consolidated Balance Sheets (Unaudited) as of June 30, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 6 Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three and Six Months Ended June 30, 2024 and 2023 9 Notes to Condensed Consolidated Financial Statements (Unaudited) 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 46

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 73

Controls and Procedures

Item 4. Controls and Procedures 72

- Other Information

Part II - Other Information 73

Legal Proceedings

Item 1. Legal Proceedings 73

Risk Factors

Item 1A. Risk Factors 73

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 73

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 73

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 73

Other Information

Item 5. Other Information 73

Exhibits

Item 6. Exhibits 74

Signatures

Signatures 75 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the "Form 10-K") and Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q, as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessibl

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS KKR Real Estate Finance Trust Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (Amounts in thousands, except share and per share data) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 107,151 $ 135,898 Commercial real estate loans, held-for-investment 6,522,235 7,343,548 Less: Allowance for credit losses ( 110,583 ) ( 210,470 ) Commercial real estate loans, held-for-investment, net 6,411,652 7,133,078 Real estate owned, held for investment, net 262,253 82,091 Real estate owned assets, held for sale 58,806 101,017 Equity method investment, real estate asset 82,008 — Equity method investment, CMBS B-Pieces 35,258 35,076 Accrued interest receivable 36,445 41,003 Other assets (A) 70,193 19,455 Total Assets $ 7,063,766 $ 7,547,618 Liabilities and Equity Liabilities Secured financing agreements, net $ 3,285,673 $ 3,782,419 Collateralized loan obligations, net 1,941,140 1,942,171 Secured term loan, net 334,623 335,331 Accrued interest payable 16,696 20,207 Dividends payable 17,333 29,805 Real estate owned liabilities, held for sale 3,383 15,883 Due to affiliates 8,120 8,270 Other liabilities 17,566 9,350 Total Liabilities 5,624,534 6,143,436 Commitments and Contingencies (Note 13) — — Equity Preferred Stock, $ 0.01 par value, 50,000,000 shares authorized Series A cumulative redeemable preferred stock, ( 13,110,000 shares issued and outstanding as of June 30, 2024 and December 31, 2023); liquidation preference of $ 327,750 , or $ 25.00 per share 131 131 Common stock, $ 0.01 par value, 300,000,000 authorized ( 69,333,208 shares issued and outstanding as of June 30, 2024; 75,299,556 shares issued and 69,313,860 shares outstanding as of December 31, 2023) 693 693 Additional paid-in capital 1,722,834 1,815,077 Accumulated deficit ( 337,547 ) ( 314,370 ) Repurchased stock ( 5,985,696 shares repurchased as of December 31, 2023) — ( 96,764 )

View Full Filing

View this 10-Q filing on SEC EDGAR