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

Rhea-AI Summary

KKR Real Estate Finance Trust Inc. (NYSE: KREF) has announced an underwritten public offering of 6,000,000 shares of its common stock, with an option for underwriters to purchase an additional 900,000 shares. The proceeds will be utilized for acquiring target assets aligned with its investment strategies and for general corporate purposes. The offering's registration has been declared effective by the SEC, and major financial institutions including Morgan Stanley, Wells Fargo, and Goldman Sachs are involved as book-running managers.

Positive

• Proceeds from the offering will be used to acquire target assets consistent with KREF's investment strategies.
• Involvement of prominent financial institutions as joint book-running managers could enhance offering credibility.

Negative

• Issuing new shares may lead to dilution of existing shareholder value.
• Market reaction to stock offerings can create volatility and negatively impact stock price.

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 6,000,000 shares of its common stock. The underwriters have been granted a 30-day option to purchase an additional 900,000 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, Deutsche Bank Securities, J.P. Morgan and Keefe, Bruyette & Woods, a Stifel Company, are acting as joint book-running managers for the offering.

A registration statement on Form S-3 relating to these securities has been filed with the Securities and Exchange Commission (“SEC”) and has 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, 2^nd 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, 2021, 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/20220302006044/en/

MEDIA:

Cara Major or Miles Radcliffe-Trenner

(212) 750-8300

media@kkr.com

INVESTOR RELATIONS:

Jack Switala

(212) 763-9048

jack.switala@kkr.com

Source: KKR Real Estate Finance Trust Inc.

FAQ

What is the purpose of KREF's recent stock offering?

KKR Real Estate Finance Trust Inc. aims to use the net proceeds from the offering to acquire target assets and for general corporate purposes.

How many shares is KREF offering in the public offering?

KREF is offering 6,000,000 shares, with an option for underwriters to purchase an additional 900,000 shares.

Who are the underwriters for KREF's stock offering?

The underwriters include Morgan Stanley, Wells Fargo Securities, Goldman Sachs & Co. LLC, and others.

What are the potential risks of KREF's stock offering?

The primary risk involves potential dilution of existing shareholders' value due to the issuance of new shares.