Is KKR Real Estate Finance Trust Inc. a Reliable Investment Option?
KKR Real Estate Finance Trust Inc. (NYSE:KREF) recently declared a quarterly dividend, but with a dividend payout ratio of 141.0%, can the company sustain its dividend payments? Analysts project next year’s earnings and expected future payout ratio, shedding light on the company’s ability to cover its annual dividend. With insights into the stock’s trading performance, market capitalization, and ratings from equities research analysts, this article provides an overview of KKR Real Estate Finance Trust Inc. as a potential investment option.
Understanding the Dividend Payout Ratio
One important aspect to consider when evaluating an investment opportunity is the dividend payout ratio. In the case of KKR Real Estate Finance Trust Inc., the company has a dividend payout ratio of 141.0%. This means that the company is currently unable to cover its dividend solely with earnings and is relying on its balance sheet to make dividend payments.
Investors should take note of this high dividend payout ratio as it indicates a potential risk. It suggests that the company may not be able to sustain its dividend payments in the long term if its earnings do not improve. It is crucial to assess the company’s financial health and future prospects before making any investment decisions.
Analyzing Future Earnings and Payout Ratio
Equity analysts have projected that KKR Real Estate Finance Trust Inc. will earn $0.99 per share next year. This projection raises concerns about the company’s ability to cover its $1.72 annual dividend, as it would result in a future payout ratio of 173.7%.
Investors should carefully consider these projections and evaluate whether the company’s earnings are expected to improve in the future. A high payout ratio could indicate potential challenges in sustaining dividend payments, which may impact the overall return on investment.
Assessing Trading Performance and Market Capitalization
Shares of KKR Real Estate Finance Trust Inc. have experienced fluctuations in trading, with the stock recently trading at $13.47 per share. It is important to consider the historical trading patterns and volatility of the stock before making any investment decisions.
The company has a market capitalization of $933.61 million, indicating its size and value in the market. Investors should analyze the market capitalization in relation to the company’s financials and industry benchmarks to determine its investment potential.
Expert Ratings and Target Price
Equities research analysts have provided their insights on KKR Real Estate Finance Trust Inc. Several analysts have given the stock a ‘Moderate Buy’ rating, while others have rated it as ‘Neutral’ or ‘Outperform’.
Based on data from MarketBeat.com, the stock has an average rating of ‘Moderate Buy’ and a consensus target price of $13.42. Investors should consider these expert ratings and target price when evaluating the investment potential of KKR Real Estate Finance Trust Inc.
Institutional Investors and Hedge Funds
A number of institutional investors and hedge funds have recently modified their holdings of KKR Real Estate Finance Trust Inc. Deutsche Bank AG increased its stake by 18.4% in the third quarter, while Graham Capital Management L.P. acquired a new position. Comerica Bank and Creative Planning are among the other institutions that have invested in the company.
It is worth noting that institutional investors and hedge funds own 73.01% of the company’s stock. Investors can consider the involvement of these entities as an indication of confidence in KKR Real Estate Finance Trust Inc. and its potential for growth.
Overview of KKR Real Estate Finance Trust Inc.
KKR Real Estate Finance Trust Inc. is a mortgage real estate investment trust (REIT) that primarily focuses on originating and acquiring senior loans secured by commercial real estate assets. The company engages in the origination and purchase of credit investments related to commercial real estate, including leveraged and unleveraged commercial real estate loans, and commercial mortgage-backed securities.
Investors interested in the real estate and finance sectors may find KKR Real Estate Finance Trust Inc. to be a potential investment option. However, it is important to conduct thorough research and analysis before making any investment decisions.