Revenue has contracted significantly from $168.8 million in 2023Q4 to $101.7 million in 2026Q1, while NOI margins compressed to 84.7% over the same period.
| Revenue | 441.66M | 457.96M | 592.62M | 660.19M | 436.51M | 285.76M | 269.93M | 275.76M | 198.01M | 84.11M | 33.17M | 14M | 700K |
| Revenue Growth % | -20.03% | -22.72% | -10.24% | 51.24% | 52.75% | 5.86% | -2.12% | 39.26% | 135.42% | 153.61% | 136.97% | 1899.43% | - |
| Property Operating Expenses | 56.9M | 53.56M | 49.6M | 39.85M | 37.43M | 29.65M | 23.77M | 20.41M | 21.1M | 13.49M | 6.3M | 2.75M | 0 |
| Net Operating Income (NOI) | 384.76M | 404.4M | 543.02M | 620.34M | 399.08M | 256.11M | 246.17M | 255.36M | 176.91M | 70.62M | 26.87M | 11.24M | 700K |
| NOI Margin % | 87.12% | 88.3% | 91.63% | 93.96% | 91.43% | 89.62% | 91.2% | 92.6% | 89.34% | 83.96% | 81.01% | 80.34% | 100% |
| Operating Expenses | 172.92M | 132.76M | 97.05M | 193.9M | 129.99M | 10.18M | 64.58M | 10.52M | 5.22M | 10.31M | -5.76M | -6.32M | 2.9M |
| G&A Expenses | 13.91M | 40.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.9M |
| EBITDA | 139.51M | 274.24M | 446.95M | 427.86M | 273.75M | 252.31M | 182.12M | 249.4M | 174.75M | 82.41M | 40.06M | 18.12M | 0 |
| EBITDA Margin % | 31.59% | 59.88% | 75.42% | 64.81% | 62.71% | 88.29% | 67.47% | 90.44% | 88.25% | 97.97% | 120.78% | 129.46% | 0% |
| Depreciation & Amortization | 2.11M | 2.6M | 983K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.2M |
| D&A / Revenue % | 0.48% | 0.57% | 0.17% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 314.29% |
| Operating Income | 211.84M | 271.64M | 445.97M | 426.44M | 269.09M | 245.94M | 181.58M | 244.84M | 171.69M | 60.31M | 32.63M | 17.57M | -2.2M |
| Operating Margin % | 47.96% | 59.31% | 75.25% | 64.59% | 61.65% | 86.06% | 67.27% | 88.78% | 86.71% | 71.7% | 98.37% | 125.5% | -314.29% |
| Interest Expense | 4M | 322.96M | 412.91M | 458.8M | 236.09M | 114.44M | 127.31M | 158.86M | 85.02M | 21.22M | 7.43M | 554K | 0 |
| Interest Coverage | - | 0.84x | 1.08x | 0.93x | 1.16x | 2.20x | 1.43x | 1.57x | 2.06x | 3.88x | 5.39x | 32.71x | - |
| Non-Operating Income | 3.84M | -678K | -1.52M | -1.42M | -4.66M | -6.37M | -537K | -4.57M | -3.06M | -22.1M | -7.43M | -554K | 2.2M |
| Pretax Income | -102.06M | -50.65M | 34.58M | -30.95M | 37.65M | 137.87M | 54.81M | 90.54M | 89.74M | 61.18M | 32.63M | 17.57M | -2.2M |
| Pretax Margin % | -23.11% | -11.06% | 5.83% | -4.69% | 8.63% | 48.25% | 20.3% | 32.83% | 45.32% | 72.74% | 98.37% | 125.5% | -314.29% |
| Income Tax | 4.57M | -156K | 248K | 710K | 58K | 684K | 412K | 579K | -70K | 1.1M | 354K | 393K | 0 |
| Effective Tax Rate % | -4.47% | 0.31% | 0.72% | -2.29% | 0.15% | 0.5% | 0.75% | 0.64% | -0.08% | 1.8% | 1.09% | 2.24% | 0% |
| Net Income | -104.07M | -47.05M | 35.59M | -30.85M | 38.1M | 137.18M | 54.4M | 89.97M | 89.74M | 59.06M | 31.16M | 16.76M | -2.09M |
| Net Margin % | -23.56% | -10.27% | 6.01% | -4.67% | 8.73% | 48.01% | 20.15% | 32.62% | 45.32% | 70.22% | 93.94% | 119.77% | -298.29% |
| Net Income Growth % | -407.56% | -232.2% | 215.36% | -180.97% | -72.22% | 152.19% | -39.54% | 0.25% | 51.95% | 89.56% | 85.87% | 902.83% | - |
| Funds From Operations (FFO) | -98.41M | -44.45M | 36.57M | -30.85M | 38.1M | 137.18M | 54.4M | 89.97M | 98.33M | 62.2M | 31.16M | 16.76M | 112K |
| FFO Margin % | -22.28% | -9.71% | 6.17% | -4.67% | 8.73% | 48.01% | 20.15% | 32.62% | 49.66% | 73.95% | 93.94% | 119.77% | 16% |
| FFO Growth % | -1146.54% | -221.53% | - | - | - | - | - | - | 58.08% | - | - | - | - |
| FFO per Share | -1.52 | -0.67 | 0.53 | -0.45 | 0.56 | 2.42 | 0.97 | 1.56 | 1.78 | 1.37 | 0.60 | 0.32 | 0.35 |
| FFO Payout Ratio % | -50.48% | -150.43% | 223.65% | -385.25% | 302.77% | 69.75% | 177.31% | 109.99% | 90.35% | 81.31% | 70.31% | 45.01% | 0% |
| EPS (Diluted) | -1.61 | -1.05 | 0.19 | -0.78 | 0.23 | 2.21 | 0.96 | 1.57 | 1.63 | 1.30 | 0.60 | 0.32 | -6.54 |
| EPS Growth % | -1262.5% | -652.63% | 124.36% | -439.13% | -89.59% | 130.21% | -38.85% | -3.68% | 25.38% | 116.67% | 87.5% | 104.89% | - |
| EPS (Basic) | - | -1.05 | 0.19 | -0.78 | 0.23 | 2.22 | 0.96 | 1.58 | 1.63 | 1.30 | 0.60 | 0.32 | -6.54 |
| Diluted Shares Outstanding | 64.67M | 66.81M | 69.4M | 69.18M | 67.55M | 56.78M | 56.06M | 57.53M | 55.17M | 45.32M | 52.17M | 52.17M | 319.21K |
Office loan credit impairment
As reported in recent financial filings, KREF's revenue has experienced a consistent downward trajectory, falling from $168.8 million in 2023Q4 to $101.7 million by 2026Q1, representing a significant 13.8% year-over-year decline that highlights the challenges of maintaining interest income in a volatile commercial real estate lending environment.
The consistent erosion of top-line revenue suggests that the company is struggling to replace maturing loans with new originations of similar yield and quality. This trend may indicate a defensive posture where management is prioritizing capital preservation over portfolio growth, potentially limiting future interest income upside.
According to the provided income statement data, KREF's NOI margin has steadily compressed from a peak of 94.4% in 2023Q4 to 84.7% in 2026Q1, signaling that property-level profitability is under pressure as operating expenses and credit-related costs consume a larger portion of the gross interest income generated.
The narrowing of these margins suggests that the cost of managing the underlying collateral is rising, likely due to increased workout efforts on distressed assets. Investors should monitor whether this margin contraction stabilizes or if further deterioration in the loan portfolio necessitates additional non-cash provisions that could further erode net profitability.
Based on the company's reported figures, FFO per share has turned negative, dropping to -$0.90 in 2026Q1 from a positive $0.30 in 2024Q4, which suggests that the core earnings power of the REIT is currently being obscured by significant credit loss provisions and potential asset impairments.
The shift to negative FFO indicates that the company's dividend-paying capacity is likely constrained, necessitating a reliance on balance sheet liquidity rather than recurring operational cash flow. This volatility warrants further investigation into the specific loan assets driving these impairments and whether they represent isolated issues or systemic portfolio weakness.
Financial statements indicate that KREF's GAAP net income has been consistently negative since 2025Q2, reaching -$61.9 million in 2026Q1, a trend largely driven by non-cash CECL reserves that complicate the assessment of the company's actual ability to generate distributable cash for its shareholders.
While these reserves are accounting requirements, they may imply that management anticipates significant future credit losses that have not yet been realized in cash. Analysts should remain cautious, as the reliance on non-GAAP metrics to justify dividend payments may prove unsustainable if the underlying collateral continues to face valuation pressure.
Quick answers to the most common questions about buying KREF stock.
For fiscal year 2025, KKR Real Estate Finance Trust Inc. (KREF) reported total revenue of $458.0M. This represents a 65322.7% increase compared to $0.7M in 2014.
KKR Real Estate Finance Trust Inc. (KREF) reported a net loss of $47.1M for the fiscal year ending 2025.
KKR Real Estate Finance Trust Inc. (KREF) reported an operating income of $271.6M, resulting in an operating profit margin of 59.3%. This margin reflects the operational efficiency of the business before interest and taxes.
KKR Real Estate Finance Trust Inc. (KREF) generated $404.4M in gross profit for the year, representing a gross profit margin of 88.3%. This demonstrates the company's core pricing power and production efficiency.