Citizens Downgrades KKR Real Estate Financial Trust (KREF) to Market Perform

Citizens analyst Chris Muller downgraded KKR Real Estate Financial Trust (NYSE: KREF) from Market Outperform to Market Perform.

The analyst comments: "We lower our investment rating on shares of KKR Real Estate Finance Trust Inc. (KREF) to Market Perform from Market Outperform due to expected headwinds to earnings. KKR Real Estate Finance Trust is focused on resolving watchlist loans and selling REO properties, which is expected to be largely complete over the next 12-18 months. The more aggressive resolution strategy could result in additional CECL reserves and realized losses as assets are positioned for resolution at an accelerated pace. With KREF shares trading at ~0.50x book value compared to a median P/BV of 0.63x for the 22-company commercial mortgage REIT peer group, we view the shares as fairly valued at current levels."

For an analyst ratings summary and ratings history on KKR Real Estate Financial Trust click here. For more ratings news on KKR Real Estate Financial Trust click here.

Shares of KKR Real Estate Financial Trust closed at $6.01 yesterday.

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