KKR Real Estate Finance Trust Inc. Tax Treatment of 2020 Dividends

Rhea-AI Summary

KKR Real Estate Finance Trust Inc. (KREF) has disclosed the tax treatment of its 2020 common and preferred stock dividends. The company reported dividends of $0.43 per share for each quarter, totaling $2.15 for the year, with some being classified as ordinary dividends eligible for a tax deduction. The payment dates for dividends were set for January 15, 2021. Shareholders are advised to consult tax professionals for specific tax implications.

Positive

• Consistent quarterly dividend of $0.43, totaling $2.15 for the year, indicates company stability.

Negative

• Ordinary dividends included a negative adjustment of ($0.12), which may raise concerns for investors.

KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) today announced the tax treatment of its 2020 common stock and special voting preferred stock dividends. The following table summarizes KKR Real Estate Finance Trust Inc.’s common stock and special voting preferred stock dividend payments for the tax year ended December 31, 2020:

	Tax Treatment of 2020 Dividends
	Record Date		Payment Date		Cash Disbursement		Adjustment			Dividend(1)		Ordinary Dividends(2)		Qualified Dividends		Capital Gain Dividends
	December 31, 2019		January 15, 2020		$0.43		($0.12	)		$0.31		$0.3071		$0.0048		$0.0029
	March 31, 2020		April 15, 2020		$0.43		$0.00			$0.43		$0.4300		$0.0031		$0.0000
	June 30, 2020		July 15, 2020		$0.43		$0.00			$0.43		$0.4300		$0.0031		$0.0000
	September 30, 2020		October 15, 2020		$0.43		$0.00			$0.43		$0.4300		$0.0031		$0.0000
	December 31, 2020		January 15, 2021		$0.43		$0.00			$0.43		$0.4300		$0.0031		$0.0000
					$2.15		($0.12	)		$2.03		$2.0271		$0.0172		$0.0029

(1)		Pursuant to IRC Section 857(b)(9), cash distributions made on January 15, 2021 with a record date of December 31, 2020 are treated as received by shareholders on December 31, 2020 to the extent of 2020 earnings and profits.
(2)		Ordinary dividends that are "qualified REIT dividends" are eligible for the 20% deduction under IRC Section 199A(b)(1)(B).

Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of the Company's dividends.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210129005393/en/

FAQ

What is the dividend amount for KREF in 2020?

KREF paid a total dividend of $2.15 for the year 2020, with $0.43 per quarter.

When is the dividend payment date for KREF?

The dividend payment date for KREF was January 15, 2021.

What tax treatment applies to KREF's dividends?

KREF's dividends may be treated as qualified dividends eligible for tax deductions, but shareholders should consult tax advisors.

Were there any adjustments to KREF's dividends in 2020?

Yes, there was an ordinary dividend adjustment of ($0.12) reported for 2020.