KKR Real Estate Finance Trust Inc. Declares Preferred Stock Dividend
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Insights
The declaration of a dividend on KREF's 6.50% Series A Cumulative Redeemable Preferred Stock is a significant event for both the company and its preferred shareholders. The dividend rate of 6.50% is competitive, particularly in a low-interest-rate environment, providing an attractive yield to investors seeking income. As preferred stock dividends are typically paid before common stock dividends, this announcement underscores the company's commitment to fulfilling its obligations to preferred shareholders, which may be seen as a positive signal regarding the company's financial health and cash flow stability.
It's important to note that the dividend rate also reflects the company's cost of capital for this type of equity. Investors will often compare this rate to the average dividend yield of other real estate investment trusts (REITs) as well as to fixed-income alternatives such as bonds. The fixed dividend payout can be a double-edged sword; it provides certainty but also means the payout does not increase even if the company's earnings grow significantly.
In the short-term, the announcement may lead to an uptick in the trading volume of KREF's preferred shares as investors adjust their positions based on the new dividend information. Long-term implications include the expectation of regular income for shareholders, which can be a factor in the stock's stability and attractiveness to income-focused investors.
From a market perspective, the announcement of a dividend can be a catalyst for investor sentiment towards KREF. Dividend declarations often serve as a barometer for a company's operational performance and strategic priorities. A consistent dividend payout can enhance the company's reputation among investors as a reliable source of income, which is particularly appealing to risk-averse investors such as retirees or institutional investors focused on income generation.
However, the broader market impact also depends on the overall sector performance. For instance, in a bullish real estate market, such dividends can consolidate investor confidence, whereas in a bearish market, they might be viewed as insufficient if the sector is experiencing declining property values or rental incomes. Additionally, the rate of 6.50% should be contextualized within the industry standards; if it's significantly higher than peers, it may suggest a higher risk profile or a premium being offered by KREF to attract investors.
About KKR Real Estate Finance Trust Inc.
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. For additional information about KREF, please visit its website at www.kkrreit.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control. The forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statements except as required by law. Information about factors affecting the Company and the forward-looking statements is available in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, and other filings with the Securities and Exchange Commission, which are available at www.sec.gov.
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MEDIA CONTACT:
Miles Radcliffe-Trenner
(212) 750-8300
media@kkr.com
INVESTOR RELATIONS CONTACT:
Jack Switala
(212) 763-9048
kref-ir@kkr.com
Source: KKR Real Estate Finance Trust Inc.
FAQ
What is the dividend declared by KKR Real Estate Finance Trust Inc. for its Series A Cumulative Redeemable Preferred Stock?
When will the dividend be paid to KREF's preferred stockholders?
