KKR Real Estate Finance Trust reports quarterly loss well below analyst expectations

what happened

KKR Real Estate Finance Trust Inc reported an adjusted loss of $2.64 per share for the quarter ended September 30, compared with a loss of 3 cents per share a year earlier. According to Earnings Summary, citing LSEG data, analysts had expected earnings of 8 cents per share, so the result came in well below forecasts.

Revenue dropped 42.5% to $14.58 million, against the $18.15 million analysts had projected. The company posted a quarterly net loss of $6.42 million, and its reported loss per share was 11 cents.

The shares fell 9.3% over the quarter and 31.5% so far this year. The average analyst rating is hold, and the median 12-month price target stands at $7.00, about 19.6% above the last close of $5.63.

why it matters

Weak revenue and a loss, alongside shares falling and analysts cutting earnings estimates by roughly 18.9% over three months, point to a negative market reaction to the report. For REIT investors, this is a signal about one company rather than the sector as a whole.

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