KKR Real Estate Finance Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
KKR Real Estate Finance Trust Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate KKR Real Estate Finance Trust's interest coverage with the available data.
KKR Real Estate Finance Trust's debt to revenue ratio for the quarter that ended in Mar. 2026 was 41.60.
Altman Z-Score does not apply to banks and insurance companies.
KKR Real Estate Finance Trust (NYSE:KREF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
KKR Real Estate Finance Trust has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
KKR Real Estate Finance Trust Financial Strength Related Terms
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
KKR Real Estate Finance Trust (KREF) has a Financial Strength of 2 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on KKR Real Estate Finance Trust and its competitors. This is near median its historical median of 2.00. Over the past decade, KKR Real Estate Finance Trust's Financial Strength has ranged from 2.00 to 4.00.
Is KKR Real Estate Finance Trust's Financial Strength too high?
KKR Real Estate Finance Trust's current Financial Strength of 2 is near median its 10-year median of 2.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.00. Overall, KKR Real Estate Finance Trust has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does KKR Real Estate Finance Trust's Financial Strength compare to CMTG and RWT?
KKR Real Estate Finance Trust's Financial Strength of 2 can be compared against companies in the REITs industry. Historically, KKR Real Estate Finance Trust's own Financial Strength has ranged from 2.00 to 4.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a REITs company?
A good Financial Strength depends on the REITs industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on KKR Real Estate Finance Trust and its competitors. KKR Real Estate Finance Trust's current Financial Strength is 2, which is near median its own 10-year median of 2.00. 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 $7.09, compared to a current price of $7.36 — trading 3.8% above its estimated fair value. The current Financial Strength is 2, which is near median its 10-year median of 2.00. KKR Real Estate Finance Trust's overall GF Score™ is 50/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For KKR Real Estate Finance Trust (KREF), the current Financial Strength is 2 as of Mar. 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 overvalued.
The current stock price of $7.36 is trading 3.8% above its estimated GF Value™ of $7.09.
GuruFocus considers KKR Real Estate Finance Trust to be Fairly Valued.
Key valuation signals for KREF:
Financial Strength: 2 (near median its 10-year median of 2.00)
GF Value™: $7.09 vs. price of $7.36 (3.8% above fair value)
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
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.
50GF Score
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