Latest Ratios: P/E Ratio -6.1x · EV/EBITDA 18.3x · ROE -3.6%. (2014–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $410M | $549M | $701M | $915M | $943M | $1.2B | $1.0B | $1.2B | $1.1B | $907M | — |
| Enterprise Value | $5.0B | $5.2B | $5.5B | $6.8B | $6.9B | $6.2B | $4.7B | $4.9B | $4.9B | $7.0B | — |
| P/E Ratio → | -6.07 | — | 53.16 | — | 60.70 | 9.43 | 18.67 | 13.01 | 11.75 | 15.39 | — |
| P/S Ratio | 0.89 | 1.20 | 1.18 | 1.39 | 2.16 | 4.14 | 3.72 | 4.26 | 5.34 | 10.78 | — |
| P/B Ratio | 0.35 | 0.45 | 0.50 | 0.65 | 0.60 | 0.87 | 0.96 | 1.05 | 0.93 | 0.85 | — |
| P/FCF | 6.14 | 8.23 | 5.63 | 5.95 | 6.76 | 9.48 | 8.73 | 12.81 | 13.75 | 16.86 | — |
| P/OCF | 5.67 | 7.60 | 5.29 | 5.88 | 6.68 | 9.48 | 8.73 | 12.81 | 13.75 | 16.86 | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 11.26 | 9.27 | 10.36 | 15.73 | 21.72 | 17.44 | 17.89 | 24.94 | 83.52 | — |
| EV / EBITDA | 18.30 | 18.81 | 12.29 | 15.99 | 25.09 | 24.60 | 25.85 | 19.79 | 27.40 | 110.72 | — |
| EV / EBIT | 18.48 | 18.94 | 12.28 | 15.99 | 25.09 | 24.60 | 25.85 | 19.79 | 28.26 | 85.25 | — |
| EV / FCF | — | 77.33 | 44.15 | 44.45 | 49.24 | 49.73 | 40.91 | 53.80 | 64.29 | 130.58 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 88.3% | 88.3% | 91.6% | 94.0% | 91.4% | 89.6% | 91.2% | 92.6% | 89.3% | 84.0% | 81.0% |
| Operating Margin | 59.3% | 59.3% | 75.3% | 64.6% | 61.6% | 86.1% | 67.3% | 88.8% | 86.7% | 71.7% | 98.4% |
| Net Profit Margin | -10.3% | -10.3% | 6.0% | -4.7% | 8.7% | 48.0% | 20.2% | 32.6% | 45.3% | 70.2% | 93.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.6% | -3.6% | 2.5% | -2.1% | 2.6% | 11.4% | 5.0% | 8.0% | 8.2% | 7.5% | 7.8% |
| ROA | -0.7% | -0.7% | 0.5% | -0.4% | 0.5% | 2.4% | 1.1% | 1.7% | 1.4% | 0.9% | 0.6% |
| ROIC | 3.4% | 3.4% | 4.9% | 4.3% | 2.9% | 3.3% | 2.8% | 3.7% | 2.1% | 0.7% | 0.5% |
| ROCE | 4.5% | 4.5% | 7.6% | 6.5% | 4.3% | 5.4% | 4.3% | 5.4% | 2.9% | 0.9% | 0.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.83 | 3.83 | 3.50 | 4.32 | 3.92 | 3.89 | 3.65 | 3.41 | 3.50 | 5.85 | 11.32 |
| Debt / EBITDA | 17.11 | 17.11 | 10.96 | 14.16 | 22.52 | 20.99 | 20.94 | 15.35 | 22.02 | 98.06 | 143.61 |
| Net Debt / Equity | — | 3.76 | 3.43 | 4.22 | 3.77 | 3.69 | 3.54 | 3.35 | 3.42 | 5.75 | 11.13 |
| Net Debt / EBITDA | 16.81 | 16.81 | 10.73 | 13.85 | 21.64 | 19.91 | 20.33 | 15.07 | 21.54 | 96.43 | 141.20 |
| Debt / FCF | — | 69.10 | 38.52 | 38.50 | 42.48 | 40.25 | 32.18 | 40.99 | 50.54 | 113.72 | 226.70 |
| Interest Coverage | 0.84 | 0.84 | 1.08 | 0.93 | 1.16 | 2.20 | 1.43 | 1.57 | 2.06 | 3.88 | 5.39 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.32 | 0.32 | 0.38 | 0.10 | 0.55 | 0.18 | 0.14 | 0.11 | 0.28 | — | — |
| Quick Ratio | 0.32 | 0.32 | 0.38 | 0.10 | 0.55 | 0.18 | 0.14 | 0.11 | 0.28 | — | — |
| Cash Ratio | 0.25 | 0.25 | 0.30 | 0.08 | 0.47 | 0.17 | 0.12 | 0.09 | 0.24 | — | — |
| Asset Turnover | — | 0.07 | 0.09 | 0.09 | 0.06 | 0.04 | 0.05 | 0.05 | 0.04 | 0.01 | 0.01 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 15.7% | 12.2% | 11.7% | 13.0% | 12.2% | 8.1% | 9.6% | 8.4% | 8.4% | 5.6% | — |
| Payout Ratio | — | — | 229.8% | — | 302.8% | 69.7% | 177.3% | 110.0% | 99.0% | 85.6% | 70.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1.9% | — | 1.6% | 10.6% | 5.4% | 7.7% | 8.5% | 6.5% | — |
| FCF Yield | 16.3% | 12.1% | 17.8% | 16.8% | 14.8% | 10.6% | 11.5% | 7.8% | 7.3% | 5.9% | — |
| Buyback Yield | 10.6% | 7.9% | 1.4% | 0.0% | 3.8% | 0.0% | 2.5% | 0.3% | 3.0% | 0.1% | — |
| Total Shareholder Yield | 26.3% | 20.1% | 13.1% | 13.0% | 16.0% | 8.1% | 12.1% | 8.8% | 11.4% | 5.6% | — |
| Shares Outstanding | — | $67M | $69M | $69M | $68M | $57M | $56M | $58M | $55M | $45M | $52M |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying KREF stock.
KKR Real Estate Finance Trust Inc.'s current P/E ratio is -6.1x. The historical average is 26.0x.
KKR Real Estate Finance Trust Inc.'s current EV/EBITDA is 18.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.2x.
KKR Real Estate Finance Trust Inc.'s return on equity (ROE) is -3.6%. The historical average is 3.8%.
Based on historical data, KKR Real Estate Finance Trust Inc. is trading at a P/E of -6.1x. Compare with industry peers and growth rates for a complete picture.
KKR Real Estate Finance Trust Inc.'s current dividend yield is 15.71%.
KKR Real Estate Finance Trust Inc. has 88.3% gross margin and 59.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
KKR Real Estate Finance Trust Inc.'s Debt/EBITDA ratio is 17.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Negative FFO eroding equity base
Metrics are mathematically derived from official filings.
Deep Discount Reflects Severe Earnings Impairment
KREF trades at a P/B of 0.42, a steep discount to peers like BXMT (0.69) and STWD (0.72), suggesting the market is pricing in significant further equity erosion from the persistent negative FFO trend.
The P/B discount is extreme for a mortgage REIT and appears to be a direct reflection of the negative FFO trajectory, which has deepened to -$1.85 per share in 2026Q2. The implied cap rate, calculated as NOI divided by enterprise value, is not meaningful given the negative earnings profile. The valuation suggests investors are not just discounting current losses but are pricing in a high probability of further book value impairment or dilutive capital raises to shore up the balance sheet.
NOI Margin Erosion Signals Core Portfolio Stress
The NOI margin has compressed from 92.5% in 2024Q1 to 82.7% in 2026Q2, as reported in the company's financial statements, indicating rising operating costs or less favorable revenue composition that is directly eroding the core earnings power of the mortgage portfolio.
This 980 basis point margin compression over ten quarters is a critical red flag for a mortgage REIT, where profitability is highly sensitive to interest rate spreads and credit performance. The decline suggests the portfolio may be experiencing higher funding costs, increased provisions for credit losses, or a shift toward lower-yielding assets. This margin trend is the primary driver behind the negative FFO and indicates the core business model is under significant strain.
Dividend Funded Entirely by External Capital
With an FFO payout ratio that is undefined due to negative FFO and an AFFO deficit of -$140.4 million in 2026Q2, the company's dividend appears entirely unsupported by operating cash flow and is reliant on external financing.
The dividend yield of 3.8% is misleading in the context of the underlying cash flows. The company has paid approximately $21-22 million in dividends per quarter while generating negative AFFO, meaning the distribution is being funded by drawing down cash reserves or raising capital. This is not a sustainable practice and represents a significant risk to shareholders, as the dividend may need to be cut or eliminated to preserve capital.
Leverage Intensifies as Equity Erodes
The debt-to-equity ratio has expanded to 4.36 in 2026Q2 from 3.50 in 2024Q4, based on the provided financial statements, as the equity base has shrunk by 33% while total debt has only modestly declined, indicating leverage is rising due to book value impairment.
This rising leverage is a symptom of the negative FFO eroding the equity base, not a result of aggressive new borrowing. The interest coverage ratio has turned negative at -0.74, meaning the company is not generating sufficient earnings to cover its interest expense. This combination of high and rising leverage with negative interest coverage creates a precarious financial position, increasing refinancing risk and vulnerability to further credit deterioration.
Deteriorating Earnings Signal Underlying Credit Stress
The shift from positive FFO in 2025Q3 to a deep deficit of -$1.85 per share in 2026Q2, as reported in recent SEC filings, suggests potential credit deterioration within the mortgage loan portfolio that is impacting core profitability.
For a mortgage REIT, the sharp reversal in FFO is a primary indicator of portfolio quality issues, likely stemming from increased non-performing loans, higher loss provisions, or unfavorable loan modifications. The concurrent decline in NOI margin supports this interpretation. Investors should monitor the company's disclosure on non-accrual loans and credit reserve coverage, as the financial ratios suggest the underlying asset quality is under pressure.
The Misleading Safety of the Dividend Yield
The 13.1% dividend yield is the most commonly misapplied metric for KREF, as it obscures the fact that the distribution is not covered by FFO or AFFO and is being funded by external capital.
Investors often screen for high dividend yields, but in KREF's case, the yield is a function of a depressed share price and a dividend that is not supported by earnings. The FFO payout ratio is undefined due to negative FFO, and the AFFO payout ratio is negative. The correct metric to assess is the dividend's funding source, which appears to be balance sheet drawdowns or equity issuances. Relying on the yield alone ignores the severe risk of a dividend cut, which would be necessary to align distributions with the company's actual cash flow generation.