Company Focus – KKR Real Estate (KREF)


Specs

KKR Real Estate Finance Trust Share Price – 21.95 Financials / Mortgage REIT
Market Cap – $1.34 billionP/E – 10.3Dividend Yield – 7.84%Dividend Streak – 3 Yrs
Current as of January 20, 2022

Company Profile

KKR Real Estate Finance Trust Inc. is a real estate finance company. The Company focuses primarily on originating and acquiring senior loans secured by institutional-quality commercial real estate (CRE) properties that are owned and operated by sponsors and located in liquid markets with underlying fundamentals. Its target assets also include mezzanine loans, preferred equity and other debt-oriented instruments with these characteristics. The Company’s investment objective is capital preservation and the generation of attractive risk-adjusted returns for our stockholders over the long term, primarily through dividends. It focuses on originating and acquiring senior loans that are secured by CRE properties and evidenced by a first-priority mortgage. The Company’s investment manager is KKR Real Estate Finance Manager LLC.

KREF 5 yr Chart

My Shares

Shares purchasedCost per shareEstimated Annual Income
257$22.19$442.00

I chose this investment to partially replace Teekay LNG Partners after their merger because the yield virtually matched Teekay’s and has a similar dividend safety profile. While there is a risk of a dividend cut over the next economic cycle the risk to me is mitigated by placing this in my High Yield Portfolio which comprises only 16% of my combined holdings. This investment also served to balance the High Yield Portfolio’s diversification by reducing percentage in the Energy sector from 63% to 59%.

Simply Safe Dividend Score 50

KKR Real Estate Finance Trust (kkrreit.com)

Sources: Walls Street Journal, TD Ameritrade, Simply Safe Dividends