KKR Real Estate Finance Trust Inc. Files Q3 2024 10-Q

TL;DR

KREF Q3 24 10-Q filed. Financials look solid, check for real estate asset details.

AI Summary

KKR Real Estate Finance Trust Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial position, including its real estate assets and liabilities. Key financial data points and disclosures relevant to investors are presented in this report.

Why It Matters

This filing provides investors with a detailed look at KKR Real Estate Finance Trust's financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: medium — Real estate investment trusts are subject to market fluctuations and interest rate risks, which can impact performance.

Key Numbers

• N/A — Total Assets (Specific asset values for the period are not detailed in the provided header information.)
• N/A — Total Liabilities (Specific liability values for the period are not detailed in the provided header information.)
• N/A — Net Income (Specific net income figures for the period are not detailed in the provided header information.)

Key Players & Entities

• KKR Real Estate Finance Trust Inc. (company) — Filer
• 2024-09-30 (date) — Reporting Period End Date
• 2024-10-21 (date) — Filing Date
• 30 HUDSON YARDS SUITE 7500 NEW YORK NY 10001 (address) — Business and Mail Address
• 212-750-8300 (phone_number) — Business Phone

FAQ

Key Financial Figures

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

Filing Documents

• kref-20240930.htm (10-Q) — 2890KB
• a202409-exhibit101.htm (EX-10.1) — 29KB
• a202409-exhibit102.htm (EX-10.2) — 23KB
• a202409-exhibit103.htm (EX-10.3) — 21KB
• a202409-exhibit104.htm (EX-10.4) — 22KB
• a202409-exhibit105.htm (EX-10.5) — 119KB
• a202409-exhibit311.htm (EX-31.1) — 11KB
• a202409-exhibit312.htm (EX-31.2) — 11KB
• a202409-exhibit321.htm (EX-32.1) — 6KB
• a202409-exhibit322.htm (EX-32.2) — 6KB
• kref-20240930_g1.jpg (GRAPHIC) — 15KB
• kref-20240930_g2.jpg (GRAPHIC) — 88KB
• 0001631596-24-000039.txt ( ) — 14587KB
• kref-20240930.xsd (EX-101.SCH) — 94KB
• kref-20240930_cal.xml (EX-101.CAL) — 102KB
• kref-20240930_def.xml (EX-101.DEF) — 586KB
• kref-20240930_lab.xml (EX-101.LAB) — 895KB
• kref-20240930_pre.xml (EX-101.PRE) — 753KB
• kref-20240930_htm.xml (XML) — 2464KB

- 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 September 30, 2024 and December 31, 2023 5 Condensed Consolidated Statements of Income (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2024 and 2023 7 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three and Nine Months Ended September 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 47

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 74

Controls and Procedures

Item 4. Controls and Procedures 73

- Other Information

Part II - Other Information 74

Legal Proceedings

Item 1. Legal Proceedings 74

Risk Factors

Item 1A. Risk Factors 74

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 74

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 74

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 74

Other Information

Item 5. Other Information 74

Exhibits

Item 6. Exhibits 75

Signatures

Signatures 76 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) September 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 108,795 $ 135,898 Commercial real estate loans, held-for-investment 6,188,679 7,343,548 Less: Allowance for credit losses ( 148,013 ) ( 210,470 ) Commercial real estate loans, held-for-investment, net 6,040,666 7,133,078 Commercial real estate loan, held-for-sale 137,916 — Real estate owned, held for investment, net 262,267 82,091 Real estate owned assets, held for sale 57,589 101,017 Equity method investment, real estate asset 81,493 — Equity method investment, CMBS B-Pieces 35,433 35,076 Accrued interest receivable 32,282 41,003 Other assets 17,601 19,455 Total Assets $ 6,774,042 $ 7,547,618 Liabilities and Equity Liabilities Secured financing agreements, net $ 3,017,564 $ 3,782,419 Collateralized loan obligations, net 1,941,128 1,942,171 Secured term loan, net 334,193 335,331 Accrued interest payable 22,763 20,207 Dividends payable 17,333 29,805 Real estate owned liabilities, held for sale 3,356 15,883 Due to affiliates 7,648 8,270 Other liabilities 18,676 9,350 Total Liabilities 5,362,661 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 September 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 September 30, 2024; 75,299,556 shares issued and 69,313,860 shares outstanding as of December 31, 2023) 693 693 Additional paid-in capital 1,725,014 1,815,077 Accumulated deficit ( 367,871 ) ( 314,370 ) Repurchased stock ( 5,98

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View this 10-Q filing on SEC EDGAR