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KKR Real Estate Finance Trust (KKR Real Estate Finance Trust) ROE % : -0.89% (As of Mar. 2024)


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What is KKR Real Estate Finance Trust ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. KKR Real Estate Finance Trust's annualized net income for the quarter that ended in Mar. 2024 was $-12.4 Mil. KKR Real Estate Finance Trust's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was $1,392.9 Mil. Therefore, KKR Real Estate Finance Trust's annualized ROE % for the quarter that ended in Mar. 2024 was -0.89%.

The historical rank and industry rank for KKR Real Estate Finance Trust's ROE % or its related term are showing as below:

KREF' s ROE % Range Over the Past 10 Years
Min: -2.07   Med: 7.58   Max: 11.4
Current: -0.62

During the past 9 years, KKR Real Estate Finance Trust's highest ROE % was 11.40%. The lowest was -2.07%. And the median was 7.58%.

KREF's ROE % is ranked worse than
72.75% of 800 companies
in the REITs industry
Industry Median: 4.21 vs KREF: -0.62

KKR Real Estate Finance Trust ROE % Historical Data

The historical data trend for KKR Real Estate Finance Trust's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KKR Real Estate Finance Trust ROE % Chart

KKR Real Estate Finance Trust Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only 7.97 5.02 11.40 2.60 -2.07

KKR Real Estate Finance Trust Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.50 -5.39 7.45 -3.61 -0.89

Competitive Comparison of KKR Real Estate Finance Trust's ROE %

For the REIT - Mortgage subindustry, KKR Real Estate Finance Trust's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KKR Real Estate Finance Trust's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, KKR Real Estate Finance Trust's ROE % distribution charts can be found below:

* The bar in red indicates where KKR Real Estate Finance Trust's ROE % falls into.



KKR Real Estate Finance Trust ROE % Calculation

KKR Real Estate Finance Trust's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=-30.851/( (1571.538+1404.767)/ 2 )
=-30.851/1488.1525
=-2.07 %

KKR Real Estate Finance Trust's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Dec. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=-12.432/( (1404.767+1380.996)/ 2 )
=-12.432/1392.8815
=-0.89 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


KKR Real Estate Finance Trust  (NYSE:KREF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-12.432/1392.8815
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-12.432 / 158.296)*(158.296 / 7402.1565)*(7402.1565 / 1392.8815)
=Net Margin %*Asset Turnover*Equity Multiplier
=-7.85 %*0.0214*5.3143
=ROA %*Equity Multiplier
=-0.17 %*5.3143
=-0.89 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=-12.432/1392.8815
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-12.432 / -13.552) * (-13.552 / 158.296) * (158.296 / 7402.1565) * (7402.1565 / 1392.8815)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.9174 * -8.56 % * 0.0214 * 5.3143
=-0.89 %

Note: The net income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


KKR Real Estate Finance Trust ROE % Related Terms

Thank you for viewing the detailed overview of KKR Real Estate Finance Trust's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


KKR Real Estate Finance Trust (KKR Real Estate Finance Trust) Business Description

Traded in Other Exchanges
Address
30 Hudson Yards, Suite 7500, New York, NY, USA, 10001
KKR Real Estate Finance Trust Inc is a real estate finance company that focuses on originating and acquiring senior mortgage loans secured by CRE assets. The investment is to originate or acquire senior mortgage loans collateralized by institutional-quality CRE assets that are owned and operated by experienced and well-capitalized sponsors and located in liquid markets with underlying fundamentals. KKR manages investments across multiple asset classes, including private equity, real estate, energy, infrastructure, credit, and hedge funds. The company's investment objective is capital preservation and generating attractive risk-adjusted returns for its stockholders over the long term, through dividends.
Executives
Lee Christen E.j. officer: Co-CEO and Co-President C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
W Patrick Mattson officer: Chief Operating Off. and Secr C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Matthew A Salem officer: Co-CEO and Co-President C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Co. Inc. 10 percent owner 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Reft Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kendra Decious officer: CFO and Treasurer C/O KKR REAL ESTATE FINANCE TRUST INC., 30 HUDSON YARDS, SUITE 7500, NEW YORK NY 10001
Vincent J. Napolitano officer: General Counsel and Secretary C/O KKR REAL ESTATE FINANCE TRUST INC., 30 HUDSON YARDS, SUITE 7500, NEW YORK NY 10001
Tactical Value Spn-kref Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Makena U.s. Real Estate Master Fund B, L.p. 10 percent owner 2755 SAND HILL ROAD, SUITE 200, MENLO PARK CA 94025
Kkr Management Holdings L.p. 10 percent owner 9 WEST 57TH STREET 41ST FLOOR, NEW YORK NY 10019
Kkr Group Holdings Corp. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Irene M Esteves director C/O TIME WARNER CABLE INC., 60 COLUMBUS CIRCLE, 17TH FLOOR, NEW YORK NY 10023
Paula Madoff director C/O KKR REAL ESTATE FINANCE TRUST INC., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Mostafa Nagaty officer: CFO and Treasurer C/O KKR REAL ESTATE FINANCE TRUST INC., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019