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KKR Real Estate Finance Trust weighs strategic options after quarterly loss
The company reported a $121.8M loss on a $4.5B loan portfolio in Q2 and said it has $721.6M in liquidity plus more than $2B in expected repayments through year-end.
KKR Real Estate Finance Trust said its board has started a review of strategic alternatives that could include a potential sale, following weak second-quarter results. Bisnow reported the company made the announcement alongside its earnings release.
In the quarter, KREF posted a $121.8M loss on its $4.5B loan portfolio. It also repurchased 5.7 million shares for a combined $38M.
CEO Matt Salem said in the release that management is focused on an action plan, including repositioning the portfolio and generating liquidity through repayments and asset resolutions. The firm said it ended the quarter with $721.6M in liquidity and more than $2B in expected repayments through the end of the year, with nearly all its loan portfolio on floating-rate debt.
KREF said all but 2% of its loan portfolio is floating-rate debt, with 60% backing multifamily or industrial assets, and a weighted average loan-to-value at origination of 66%. It resolved two watchlisted loans in the second quarter and now has six watchlisted properties, and it provided no timetable or guarantee for the strategic review.