KREF (KKR Real Estate Finance Trust) Beneish M-Score: -2.38 (As of Jun. 25, 2026)


KREF KKR Real Estate Finance Trust Inc KREF
46 GF Score
Price $6.99
GF Value $7.16
Valuation Fairly Valued
! 3 Warning Signs
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What is KKR Real Estate Finance Trust Beneish M-Score?

KKR Real Estate Finance Trust KREF -0.78% 46 Beneish M-Score is -2.38 as of Jun. 25, 2026. GuruFocus rates KREF with a GF Score™ of 46/100 and a GF Value™ of $7.16 (Fairly Valued). The stock has 3 warning signs investors should review. Among 765 REITs companies, KKR Real Estate Finance Trust ranks worse than 59.22% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.38 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for KKR Real Estate Finance Trust's Beneish M-Score or its related term are showing as below:

KREF' s Beneish M-Score Range Over the Past 10 Years
Min: -6.93   Med: -2.53   Max: -1.29
Current: -2.38

During the past 11 years, the highest Beneish M-Score of KKR Real Estate Finance Trust was -1.29. The lowest was -6.93. And the median was -2.53.

KREF
46GF Score
KKR Real Estate Finance Trust Inc KREF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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KKR Real Estate Finance Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of KKR Real Estate Finance Trust for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.5425+0.528 * 1+0.404 * 1+0.892 * 0.7698+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2682+4.679 * -0.024149-0.327 * 1.0916
=-2.38

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $33.2 Mil.
Revenue was 28.431 + 26.703 + 25.9 + 30.753 = $111.8 Mil.
Gross Profit was 28.431 + 26.703 + 25.9 + 30.753 = $111.8 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $6,950.1 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.1 Mil.
Selling, General, & Admin. Expense(SGA) was $17.8 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $4,531.4 Mil.
Net Income was -56.14 + -26.242 + 13.778 + -29.726 = $-98.3 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 13.144 + 16.735 + 18.505 + 21.127 = $69.5 Mil.
 Total Receivables was $28.0 Mil.
Revenue was 29.62 + 33.973 + 40.963 + 40.662 = $145.2 Mil.
Gross Profit was 29.62 + 33.973 + 40.963 + 40.662 = $145.2 Mil.
Total Current Assets was $0.0 Mil.
Total Assets was $6,554.5 Mil.
Property, Plant and Equipment(Net PPE) was $0.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.5 Mil.
Selling, General, & Admin. Expense(SGA) was $18.2 Mil.
Total Current Liabilities was $0.0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,914.9 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(33.207 / 111.787) / (27.967 / 145.218)
=0.297056 / 0.192586
=1.5425

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(145.218 / 145.218) / (111.787 / 111.787)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0) / 6950.095) / (1 - (0 + 0) / 6554.529)
=1 / 1
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=111.787 / 145.218
=0.7698

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.49 / (0.49 + 0)) / (3.093 / (3.093 + 0))
=1 / 1
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(17.815 / 111.787) / (18.249 / 145.218)
=0.159366 / 0.125666
=1.2682

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4531.355 + 0) / 6950.095) / ((3914.933 + 0) / 6554.529)
=0.651985 / 0.597287
=1.0916

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-98.33 - 0 - 69.511) / 6950.095
=-0.024149

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

KKR Real Estate Finance Trust has a M-score of -2.38 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.38 mean?
KKR Real Estate Finance Trust (KREF) has a Beneish M-Score of -2.38 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on KKR Real Estate Finance Trust and its competitors. According to the industry distribution chart, KKR Real Estate Finance Trust ranks #453 out of 765 companies in the REITs industry, placing it in the top 59.2%.
Is KKR Real Estate Finance Trust's Beneish M-Score too high?
KKR Real Estate Finance Trust's current Beneish M-Score is -2.38. Based on the distribution chart, KKR Real Estate Finance Trust ranks #453 out of 765 companies in the REITs industry, which is below the industry midpoint. Overall, KKR Real Estate Finance Trust has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KKR Real Estate Finance Trust's Beneish M-Score compare to CMTG and NREF?
According to the REITs industry distribution chart, KKR Real Estate Finance Trust ranks #453 out of 765 companies for Beneish M-Score. This places KKR Real Estate Finance Trust in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on KKR Real Estate Finance Trust and its competitors. KKR Real Estate Finance Trust's current Beneish M-Score is -2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KKR Real Estate Finance Trust stock overvalued right now?
Based on GuruFocus' analysis, KKR Real Estate Finance Trust (KREF) is currently considered Fairly Valued. The stock's GF Value™ is $7.16, compared to a current price of $6.99 — trading 2.4% below its estimated fair value. The current Beneish M-Score is -2.38. KKR Real Estate Finance Trust's overall GF Score™ is 46/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For KKR Real Estate Finance Trust (KREF), the current Beneish M-Score is -2.38 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is KKR Real Estate Finance Trust (KREF) Overvalued in 2026?

Based on GuruFocus' analysis, KKR Real Estate Finance Trust stock appears to be undervalued. The current stock price of $6.99 is trading 2.4% below its estimated GF Value™ of $7.16. GuruFocus considers KKR Real Estate Finance Trust to be Fairly Valued.

Key valuation signals for KREF:

  • Beneish M-Score: -2.38
  • GF Value™: $7.16 vs. price of $6.99 (2.4% below fair value)
  • GF Score™: 46/100 with 3 warning signs

No single metric tells the full story. See the KREF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

KKR Real Estate Finance Trust Business Description

Industry Real EstateREITs
Other Exchanges KREFpA.PFD:USA8KR:Germany
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 estates, 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.
46GF Score

Get the complete analysis for KREF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$6.99
Price
$7.16
GF Value