KKR Real Estate Finance Trust Reopening Preferred Issue

KKR Real Estate Finance (KREF) has announced they are selling more share of their KREF-A 6.50%, cumulative, redeemable issue.

The original issue was sold on 4/9/2021–6.9 million shares were sold at that time.

Current holders are likely not too appreciative of this reopening as shares took a tumble with the announcement. At this point we don’t know how many shares they will be selling. The original issue details are here.

The preliminary prospectus can be found here.

15 thoughts on “KKR Real Estate Finance Trust Reopening Preferred Issue”

    1. another tranche in – avg at $24.98…got enough for now but liking the issue close to par here. It replaces some VZ that I got called away at ex-div yesterday

  1. I am missing something ………. and just for my own education
    KKR had two IG preferred KKR-A / KKR-B
    both that were called

    why would KREF-A not be an IG issue?
    Is it that the REIT makes it a separate entity ?

    1. Lol I wish I knew. Seems similar to Invesco, IVR, and Invesco reit IVR B. I never could get a straight answer out of Invesco employees!! Still KKR common showing a lot of market cap and price appreciation.

      “What you don’t understand comes back to bite you” in other words we will eventually find out and what we learn will have a cost.

    2. Different KKR “branch”. S&P has their long term credit rating at BB-, so the preferred is somewhere south in B country.

      1. Ahhhhh
        Thanks.

        I find it odd that these companies would put such junk out there that could damage their brand.

    1. newbie question: preferred went down because of the unknown amount of dilution? Or? The company stock seems to be doing OK…

      1st Call Date: 04/16/2026

      “Net proceeds to be used for acquiring its target assets in a manner consistent with its investment strategies and investment guidelines and for general corporate purposes.”

      tx!

      1. Fab, apparently they are (will be) shoveling the new shares out the door at a price whatever they can pocket above $25. So the already outstanding shares will drop to level shares being underwritten going out the door are expected to receive.

        1. Grid & 2WR & anyone—-do you think KREF-A is a good value for a 6% issued at par?

            1. Good question, Randy, and I dont have a good answer. Admittedly I set a 500 share bid later in day at $25.15 but pulled after a bit. As I didnt know when the new shares were coming out, and exactly what properties or mortgage buying model they operate under. I knew the preferred was B type but that isnt a deal killer for me. I just didnt have the mental energy to at least feign knowledge in the issue so I pulled it. I already recently bought a chunk of the Power Reit preferred to reenter at $26.00 so I got some reit action there, albeit a total different type.
              I had been wanting more of that EIX reset so I used the money there. So, long story short I almost bought some without knowing anything about it. I try not to do that but I had a flip urge that almost got scratched, ha.

          1. It looks like this has come down from a hi of 25.72 in the last 5 days, so I suppose the question ought to be how much of that .72 is caused by this add on and how much is due to the uptick in interest rates in general.. Depending on your own point of view, to the degree you think it’s a response to the add on, I suppose it could be a good flip candidate… But given it’s a perpetual, and I’m not much of a flip for flip’s sake kind of guy in the first place, I’ve not paid any attention to this issue or its creditworthiness… just reported what I happened to see.

          2. If you go to their website their CEO makes an interesting comment on their 2021 results.

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