Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. KKR Real Estate Finance Trust's annualized net income for the quarter that ended in Mar. 2026 was $-224.6 Mil. KKR Real Estate Finance Trust's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,134.1 Mil. Therefore, KKR Real Estate Finance Trust's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -19.80%.
The historical rank and industry rank for KKR Real Estate Finance Trust's Return-on-Tangible-Equity or its related term are showing as below:
KREF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.13 Med: 6.3 Max: 11.4
Current: -8.13
During the past 11 years, KKR Real Estate Finance Trust's highest Return-on-Tangible-Equity was 11.40%. The lowest was -8.13%. And the median was 6.30%.
KREF's Return-on-Tangible-Equity is ranked worse than 91.52% of 932
companies
in the REITs industry
Industry Median: 6.29
vs KREF: -8.13
KKR Real Estate Finance Trust (NYSE:KREF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
KKR Real Estate Finance Trust Return-on-Tangible-Equity Related Terms
KKR Real Estate Finance Trust Return-on-Tangible-Equity Historical Data
* 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 Return-on-Tangible-Equity Chart
KREF vs CMTG, NREF, RC: Return-on-Tangible-Equity Comparison
For the REIT - Mortgage subindustry, KKR Real Estate Finance Trust's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, KKR Real Estate Finance Trust's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where KKR Real Estate Finance Trust's Return-on-Tangible-Equity falls into.
* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of -19.80% mean?
KKR Real Estate Finance Trust (KREF) has a Return-on-Tangible-Equity of -19.80% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KKR Real Estate Finance Trust and its competitors. According to the industry distribution chart, KKR Real Estate Finance Trust ranks #853 out of 932 companies in the REITs industry, placing it in the top 91.5%.
Is KKR Real Estate Finance Trust's Return-on-Tangible-Equity too high?
KKR Real Estate Finance Trust's current Return-on-Tangible-Equity is -19.80%. Based on the distribution chart, KKR Real Estate Finance Trust ranks #853 out of 932 companies in the REITs industry, which is in the bottom quartile relative to peers. 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 Return-on-Tangible-Equity compare to CMTG and NREF?
According to the REITs industry distribution chart, KKR Real Estate Finance Trust ranks #853 out of 932 companies for Return-on-Tangible-Equity. This places KKR Real Estate Finance Trust in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.29. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.29, based on 932 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on KKR Real Estate Finance Trust and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KKR Real Estate Finance Trust's current Return-on-Tangible-Equity is -19.80%. 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 $7.17 — trading 0.1% above its estimated fair value. The current Return-on-Tangible-Equity is -19.80%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For KKR Real Estate Finance Trust (KREF), the current Return-on-Tangible-Equity is -19.80% 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 $7.17 is trading 0.1% above its estimated GF Value™ of $7.16.
GuruFocus considers KKR Real Estate Finance Trust to be Fairly Valued.
Key valuation signals for KREF:
Return-on-Tangible-Equity: -19.80%
GF Value™: $7.16 vs. price of $7.17 (0.1% 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.
46GF Score
Get the complete analysis for KREF
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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