Distributable cash flow remains inconsistent, with negative AFFO reported in four of the last six quarters, complicating the sustainability of dividend distributions.
| Cash from Operations | 69.51M | 72.28M | 132.56M | 155.72M | 141.13M | 124.79M | 115.06M | 91.71M | 76.83M | 53.8M | 25.41M | 11.54M | 32K |
| Operating CF Growth % | -119.45% | -45.47% | -14.87% | 10.34% | 13.09% | 8.46% | 25.46% | 19.37% | 42.8% | 111.76% | 120.12% | 35968.75% | - |
| Operating CF / Revenue % | 15.74% | 15.78% | 22.37% | 23.59% | 32.33% | 43.67% | 42.63% | 33.26% | 38.8% | 63.96% | 76.6% | 82.47% | 4.57% |
| Net Income | -104.07M | -50.49M | 34.33M | -31.66M | 37.59M | 137.18M | 54.4M | 89.97M | 89.81M | 60.08M | 32.27M | 17.17M | -2.09M |
| Depreciation & Amortization | 5.66M | 2.6M | 983K | 0 | 0 | 0 | 0 | 0 | 8.59M | 3.14M | 0 | 0 | 0 |
| Stock-Based Compensation | 7.61M | 7.93M | 8.26M | 8.07M | 7.83M | 7.43M | 5.68M | 4.09M | 1.97M | 65K | 0 | 0 | 0 |
| Other Non-Cash Items | 161.42M | 117.25M | 78.93M | 179.47M | 107.98M | -21.55M | 54.06M | -2.18M | 2.56M | -3.38M | -4.42M | -5.49M | -160K |
| Working Capital Changes | -3.28M | -5M | 10.06M | -177K | -12.29M | 1.73M | 932K | -159K | -1.17M | -775K | -2.44M | -145K | 2.28M |
| Cash from Investing | 734.23M | 264.29M | 1.12B | 13.49M | -1.18B | -1.54B | 88.71M | -926.31M | -2B | -1.08B | -456.45M | -364.31M | -66.75M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -59.94M | -33.52M | -2.38M | 0 | 0 | 0 | 0 | -94.01M | -15.61M | -1.2B | -10.24M | -23.89M | 0 |
| Sale of Investments | 0 | 0 | 0 | 1.29M | 0 | 1.3M | 0 | 94.07M | 99.75M | 37.31M | 2.05M | 92.32M | 0 |
| Other Investing | 798.47M | 303.39M | 1.13B | 14.06M | -1.18B | -1.54B | 88.71M | -926.38M | -2.1B | 80.79M | -445.75M | -340.15M | -66.75M |
| Cash from Financing | -773.74M | -355.78M | -1.29B | -271.51M | 1.01B | 1.58B | -160.56M | 815.69M | 1.9B | 1.04B | 500.6M | 379.49M | 66.96M |
| Dividends Paid | -81.75M | -88.16M | -103.1M | -140.16M | -136.91M | -103.95M | -97.08M | -99.55M | -89.23M | -50.72M | -21.92M | -7.56M | 0 |
| Common Dividends | -49.68M | -66.86M | -81.8M | -118.85M | -115.37M | -95.68M | -96.45M | -98.95M | -88.85M | -50.58M | -21.91M | -7.54M | 0 |
| Debt Issuance (Net) | -2M | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 0 |
| Share Repurchases | -34.34M | -43.41M | -10.03M | 0 | -35.79M | 0 | -25.06M | -4.11M | -31.35M | -648K | 0 | 0 | 0 |
| Other Financing | -10.98M | -24.65M | -8.25M | -7.47M | -36.65M | -30.42M | -13.52M | -13.7M | -31.29M | 564.52M | -9.16M | 6.2M | 66.96M |
| Net Change in Cash | 30M | -19.21M | -41.77M | -102.31M | -23.15M | 162.94M | 43.21M | -18.91M | -16.99M | 7.17M | 69.56M | 26.73M | 244K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 87.34M | 106.55M | 148.31M | 250.62M | 273.77M | 110.83M | 67.62M | 86.53M | 103.52M | 96.35M | 26.79M | 61K | 0 |
| Cash at End | 137.34M | 87.34M | 106.55M | 148.31M | 250.62M | 273.77M | 110.83M | 67.62M | 86.53M | 103.52M | 96.35M | 26.79M | 244K |
| Free Cash Flow | 65.21M | 66.7M | 124.46M | 153.85M | 139.46M | 124.79M | 115.06M | 91.71M | 76.83M | 53.8M | 24.95M | 11.27M | 32K |
| FCF Growth % | -38.89% | -46.41% | -19.11% | 10.32% | 11.76% | 8.46% | 25.46% | 19.37% | 42.8% | 115.63% | 121.43% | 35112.5% | - |
| FCF / Revenue % | 14.76% | 14.56% | 21% | 23.3% | 31.95% | 43.67% | 42.63% | 33.26% | 38.8% | 63.96% | 75.23% | 80.51% | 4.57% |
Office loan credit impairment
As reported in recent financial statements, KREF's ability to cover dividends via AFFO has become increasingly inconsistent, with the company reporting negative AFFO in four of the last six quarters, suggesting that current distributions may be reliant on capital reserves rather than recurring operational cash flow.
The shift toward negative AFFO figures indicates that the REIT is struggling to generate sufficient cash after accounting for necessary portfolio maintenance and credit-related adjustments. Investors should monitor whether the recent dividend reduction is sufficient to align payouts with the company's diminished capacity to generate sustainable distributable earnings.
Based on KREF's reported figures, the significant divergence between GAAP Net Income and FFO, such as the -$61.9 million net loss in 2026Q1, highlights how non-cash CECL reserves and impairment charges are currently distorting the perceived earnings power of the underlying loan portfolio.
While GAAP net income is heavily impacted by forward-looking credit loss estimates, the volatility in FFO suggests that the core cash-generating engine is facing genuine headwinds. This distortion makes it difficult to ascertain the true economic value of the portfolio without adjusting for these non-cash accounting entries.
According to the provided data, the relationship between FFO and GAAP operating cash flow has become increasingly erratic, with FFO/NI ratios frequently turning negative, which implies that the REIT's reported earnings are failing to track with the actual cash collected from its interest-bearing assets.
The disconnect between positive operating cash flow and negative FFO suggests that while the company is still collecting interest, the accounting adjustments for credit risk are outpacing the cash-based performance. This trend warrants further investigation into whether the interest income is being realized in cash or if PIK interest is inflating the reported figures.
Financial statements indicate that KREF's cash flow statement may mask underlying distress, as the consistent negative net income figures suggest that the company is absorbing significant credit-related costs that are not fully captured by simple operating cash flow metrics alone.
The reliance on non-recourse financing and CLOs provides a layer of protection, but the persistent negative earnings suggest that the equity cushion is being eroded by the ongoing office sector stress. Analysts should be wary of assuming that current cash flow levels are indicative of long-term stability given the potential for further loan modifications.
Quick answers to the most common questions about buying KREF stock.
KKR Real Estate Finance Trust Inc. (KREF) generated $72.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
KKR Real Estate Finance Trust Inc. (KREF) generated $66.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
KKR Real Estate Finance Trust Inc. (KREF) spent $5.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, KKR Real Estate Finance Trust Inc. (KREF) returned $88.2M to shareholders via cash dividends and spent $43.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.