KKR Real Estate Finance Trust Inc. Announces Public Offering of Common Stock

Rhea-AI Summary

KKR Real Estate Finance Trust Inc. (NYSE:KREF) announced its agreement to issue and sell 5 million shares of common stock, with an additional option of 750,000 shares for underwriters. The net proceeds will be used for asset acquisitions aligned with its investment strategies and general corporate purposes. The offering is managed by leading financial firms, including Morgan Stanley and Goldman Sachs. Registration statements are effective with the SEC. This release doesn't constitute a sale offer in jurisdictions where it's unlawful.

Positive

• Proceeds from the offering will fund asset acquisitions, supporting growth.
• The involvement of multiple reputable underwriters indicates strong market confidence.

Negative

• Issuing new shares could lead to shareholder dilution.

NEW YORK--(BUSINESS WIRE)-- KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) today announced that it has agreed to issue and sell in an underwritten public offering 5,000,000 shares of its common stock. The underwriters have been granted a 30-day option to purchase an additional 750,000 shares. KREF intends to use the net proceeds from the offering to acquire its target assets in a manner consistent with its investment strategies and investment guidelines and for general corporate purposes.

Morgan Stanley, Wells Fargo Securities, Goldman Sachs & Co. LLC, Raymond James, Barclays, Citigroup, J.P. Morgan and Keefe, Bruyette & Woods, a Stifel Company are acting as joint book-running managers for the offering.

Registration statements on Form S-3 relating to these securities have been filed with the Securities and Exchange Commission (“SEC”) and have been declared effective. The offering will be made only by means of a preliminary prospectus supplement and the accompanying prospectus. Copies of the preliminary prospectus supplement and the accompanying prospectus, and the final prospectus supplement, when available, may be obtained from Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 and Wells Fargo Securities, Attn: Equity Syndicate Department, 30 Hudson Yards, 500 West 33^rd Street – 14^th Floor, New York, NY 10001; or by visiting the SEC’s website at www.sec.gov under KKR Real Estate Finance Trust Inc.’s name.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About KREF

KKR Real Estate Finance Trust Inc. (NYSE:KREF) is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc.

Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “assumptions,” “target,” “guidance,” “outlook,” “plans,” “projection,” “may,” “will,” “would,” “should,” “seeks,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “potential” or “continue” (or the negative or other derivatives of each of these terms) or similar expressions that concern KREF’s operations, strategy, projections or intentions. These “forward-looking” statements include statements relating to, among other things, the proposed issuance and sale of common stock and the expected use of the net proceeds from the offering. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond KREF’s control. These and other important risk factors are discussed under the heading “Risk Factors” in KREF’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC, as such factors may be updated from time to time in KREF’s other periodic filings with the SEC. Accordingly, actual outcomes or results may differ materially from those indicated in this release. All forward-looking statements in this release speak only as of the date of this release. KREF undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006116/en/

MEDIA CONTACT:

Cara Major or Miles Radcliffe-Trenner

(212) 750-8300

media@kkr.com

INVESTOR RELATIONS CONTACT:

Jack Switala

(212) 763-9048

jack.switala@kkr.com

Source: KKR Real Estate Finance Trust Inc.

FAQ

What is the size of the stock offering by KREF?

KKR Real Estate Finance Trust Inc. is offering 5 million shares, with an option for underwriters to purchase an additional 750,000 shares.

What will KREF use the proceeds from the stock offering for?

The proceeds will be used to acquire target assets consistent with its investment strategies and for general corporate purposes.

Who are the underwriters for KREF's stock offering?

The offering is being managed by Morgan Stanley, Wells Fargo Securities, Goldman Sachs, and others.

When was the press release regarding KREF's stock offering issued?

The press release was issued recently, announcing the stock offering and its details.

What does the stock offering mean for KREF shareholders?

While the offering could raise capital for growth, it may also result in dilution of existing shares.