KKR Real Estate Finance Trust reported a net loss of ($1.95) per share for the second quarter of 2026, a significant miss compared to analyst expectations, driven by a substantial increase in its allowance for loan losses. The company's book value per share declined to $10.24, and it announced that its Board of Directors has initiated a review of strategic alternatives.
Key Highlights
- Book value per share fell to $10.24 from $11.87 in the prior quarter, primarily due to a $119.8 million increase in the loan loss allowance.
- The company received $806.6 million in loan repayments and resolved two watchlist loans, including a risk-rated 5 loan, as it continues to reposition its portfolio.
- KREF repurchased 5.7 million shares during the quarter for $38.0 million at an average price of $6.63 per share.
- The Board of Directors has established a committee to review strategic alternatives, which could include a sale of the company or its assets.