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

Rhea-AI Summary

KKR Real Estate Finance Trust Inc. (NYSE: KREF) updated the tax treatment for its 2020 dividends. For the tax year ending December 31, 2020, the total cash disbursement was $2.15 per share, with adjustments leading to ordinary dividends of $1.83 and qualified dividends of $1.8325. The company emphasizes that these distributions are treated as received by shareholders on December 31, 2020. Shareholders are advised to consult tax professionals regarding their specific dividend tax implications.

Positive

• Total cash disbursement of $2.15 per share for 2020.
• Ordinary dividends of $1.83 per share highlight company profitability.

Negative

• Adjustments resulting in a negative cash disbursement of $0.32, indicating potential cash flow concerns.

KKR Real Estate Finance Trust Inc. (NYSE: KREF) (the “Company” or “KREF”) today announced an update to 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		($0.32)		$0.11		$0.1125		$0.0009		$0.0000
March 31, 2020		April 15, 2020		$0.43		$0.00		$0.43		$0.4300		$0.0033		$0.0000
June 30, 2020		July 15, 2020		$0.43		$0.00		$0.43		$0.4300		$0.0033		$0.0000
September 30, 2020		October 15, 2020		$0.43		$0.00		$0.43		$0.4300		$0.0033		$0.0000
December 31, 2020		January 15, 2021		$0.43		$0.00		$0.43		$0.4300		$0.0033		$0.0000
				$2.15		($0.32)		$1.83		$1.8325		$0.0141		$0.0000

(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).

The information set forth in this release is intended to replace and supersede KREF’s January 29, 2021 dividend tax treatment announcement in all respects. 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/20210203005773/en/

FAQ

What is the total cash disbursement for KREF's 2020 dividends?

The total cash disbursement for KREF's 2020 dividends is $2.15 per share.

What are the ordinary and qualified dividends for KREF in 2020?

For 2020, KREF's ordinary dividends are $1.83 per share, and qualified dividends are $1.8325.

When should shareholders report KREF's 2020 dividends for tax purposes?

Shareholders should report KREF's 2020 dividends as received on December 31, 2020.

Are KREF's dividends eligible for deductions?

Yes, KREF's ordinary dividends classified as 'qualified REIT dividends' are eligible for a 20% deduction.

How should shareholders handle taxes related to KREF's dividends?

Shareholders are encouraged to consult their personal tax advisors for specific tax treatment of KREF's dividends.