KKR Real Estate Financial Trust stock rating downgraded by JPMorgan

Published 20/10/2025, 09:20
KKR Real Estate Financial Trust stock rating downgraded by JPMorgan

Investing.com - JPMorgan downgraded KKR Real Estate Financial Trust (NYSE:KREF) from Overweight to Neutral on Monday, while lowering its price target to $9.00 from $9.50. The stock, currently trading at $8.63 with a market capitalization of $567 million, is near its 52-week low of $8.28.

The financial services firm cited ongoing pressure from non-accruals that will likely continue to impact net interest income in the near term, potentially putting the company’s dividend at risk.

JPMorgan indicated there could be risk for a dividend reduction to $0.20 per share in the first quarter of 2026, down from the current $0.25 per share.

The investment bank noted it would need to see more progress on resolving troubled assets before considering a more positive outlook on the stock.

KKR Real Estate Financial Trust is a real estate finance company that focuses on originating and acquiring senior loans secured by commercial real estate assets.

In other recent news, KKR Real Estate Finance Trust Inc. reported its financial results for the second quarter of 2025, revealing an earnings per share (EPS) miss with an actual EPS of -$0.04 compared to the forecasted $0.01. Despite this earnings miss, the company’s revenue slightly surpassed expectations, totaling $35.75 million against an anticipated $35.1 million. In addition to the earnings report, KKR Real Estate Finance Trust declared a quarterly dividend of $0.25 per share of common stock for the third quarter of 2025, payable on October 15, 2025. The company also announced a quarterly dividend of $0.40625 per share on its 6.50% Series A Cumulative Redeemable Preferred Stock, with a payment date set for December 15, 2025.

Furthermore, JMP Securities reiterated its Market Outperform rating for KKR Real Estate Finance Trust, maintaining a price target of $12.00. This target is based on an 8.3% required yield on projected 2025 total dividends of $1.00. These developments reflect a mix of financial performance and strategic decisions that could influence investor sentiment.

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