KKR Real Estate Finance Trust stock rating reiterated by JMP analyst

Investing.com - KKR Real Estate Finance Trust Inc . (NYSE:KREF), with a market capitalization of $598.31 million, received a reiterated Market Outperform rating from JMP Securities on Friday, maintaining a $12.00 price target that represents a potential 31.9% upside from current levels. According to InvestingPro data, analyst targets range from $9.50 to $13.00, with the stock currently trading at $9.10.

The price target is based on an 8.3% required yield on projected 2025 total dividends of $1.00 and equals 0.87 times the reported June 30 book value of $13.84 per share. InvestingPro analysis shows the company has maintained dividend payments for 9 consecutive years, with a current yield of 11%, making it particularly attractive for income-focused investors.

JMP Securities noted that KREF continues to make progress on problem loans with two resolutions, including a subsequent REO conversion, while also originating opportunistic new loans to partially offset repayments.

The firm projects a potential total return of approximately 43% for investors, combining the price appreciation potential with an 11.0% cash dividend yield.

The analysis follows KREF’s second-quarter results release and JMP’s review of the company’s Form 10-Q filing.

In other recent news, KKR Real Estate Finance Trust Inc reported its financial results for the second quarter of 2025, revealing a surprising earnings miss. The company posted an earnings per share (EPS) of -$0.04, which was a significant deviation from the forecasted $0.01, marking a 500% difference. Despite the earnings miss, KKR Real Estate’s revenue slightly surpassed expectations, coming in at $35.75 million compared to the projected $35.1 million. This mix of results highlights the complexity of market reactions to earnings announcements. Although the earnings fell short, the revenue performance may have contributed to a nuanced investor response. The stock experienced a rise post-announcement, despite the unexpected earnings figures. These developments are part of the recent updates concerning KKR Real Estate Finance Trust Inc.

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