KKR Real Estate Finance Trust Inc. (KREF.PR.A)

Overview

KKR Real Estate Finance Trust Inc. positions itself within the fields of mortgage real estate investment, with a concentrated interest in originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. As an entity that navigates the complex landscape of real estate investment by focusing on the origination and acquisition of credit investments relative to CRE, including both leveraged and unleveraged commercial real estate loans, its operational strategy places a significant emphasis on the distinct area of transitional senior loans. The choice to operate as a real estate investment trust (REIT) exempts the company from federal corporate income taxes, contingent upon the distribution of at least 90% of its taxable income to its stockholders. KKR Real Estate Finance Trust Inc. was founded in 2014 and has established its headquarters in New York, New York, reflecting its strategic positioning within one of the world's most dynamic real estate markets.

Products and Services

• Transitional Senior Loans

These are the primary focus of KKR Real Estate Finance Trust Inc., targeting commercial real estate assets. Transitional senior loans cater to properties in the middle of development, renovation, or repositioning, generally needing short-term financing solutions that traditional lending institutions may not provide. By offering these loans, the company plays a crucial role in the lifecycle of CRE investments, facilitating progress from acquisition or development phases through to stabilization.

• Leveraged and Unleveraged Commercial Real Estate Loans

KKR Real Estate Finance Trust Inc. offers a spectrum of financing options including both leveraged and unleveraged commercial real estate loans. Leveraged loans allow borrowers to access larger sums of capital by using the purchased property as collateral, potentially increasing the return on investment through leverage. Unleveraged loans, on the other hand, represent a more conservative financing option, requiring less collateral and presenting lower risk for both the lender and borrower. The availability of both options provides flexibility for investors with differing risk tolerances and financial strategies.

• Origination and Acquisition of Credit Investments related to CRE

In addition to direct loan origination, KKR Real Estate Finance Trust Inc. is actively involved in the acquisition of credit investments linked to commercial real estate. This broadens the company's portfolio and investment opportunities by including a variety of financial instruments, such as mortgage-backed securities, mezzanine loans, or debt securities, that are related to the commercial real estate sector. Such activities allow the company to diversify its risk and investment profile while capitalizing on the vast landscape of CRE financing.