Revenue has contracted for nine straight quarters, accelerating to a -23.2% year-over-year decline in 2026Q2, while the NOI margin has compressed from 92.5% to 82.7% over the same period, indicating severe top-line and profitability deterioration.
KKR Real Estate Finance Trust Inc. (KREF) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Revenue | 414.18M | 457.96M | 592.62M | 660.19M | 436.51M | 285.76M | 269.93M | 275.76M | 198.01M | 84.11M | 33.17M | 14M | 700K |
| Revenue Growth % | -19.57% | -22.72% | -10.24% | 51.24% | 52.75% | 5.86% | -2.12% | 39.26% | 135.42% | 153.61% | 136.97% | 1899.43% | - |
| Property Operating Expenses | 59.77M | 53.56M | 49.6M | 39.85M | 37.43M | 29.65M | 23.77M | 20.41M | 21.1M | 13.49M | 6.3M | 2.75M | 0 |
| Net Operating Income (NOI) | 354.41M | 404.4M | 543.02M | 620.34M | 399.08M | 256.11M | 246.17M | 255.36M | 176.91M | 70.62M | 26.87M | 11.24M | 700K |
| NOI Margin % | 85.57% | 88.3% | 91.63% | 93.96% | 91.43% | 89.62% | 91.2% | 92.6% | 89.34% | 83.96% | 81.01% | 80.34% | 100% |
| Operating Expenses | 245.28M | 132.76M | 97.05M | 193.9M | 129.99M | 10.18M | 64.58M | 10.52M | 5.22M | 10.31M | -5.76M | -6.32M | 2.9M |
| G&A Expenses | 18.57M | 40.74M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.9M |
| EBITDA | 112.72M | 274.24M | 446.95M | 427.86M | 273.75M | 252.31M | 182.12M | 249.4M | 180.28M | 63.45M | 40.06M | 18.12M | 0 |
| EBITDA Margin % | 27.21% | 59.88% | 75.42% | 64.81% | 62.71% | 88.29% | 67.47% | 90.44% | 91.04% | 75.43% | 120.78% | 129.46% | 0% |
| Depreciation & Amortization | 3.59M | 2.6M | 983K | 0 | 0 | 0 | 0 | 0 | 8.59M | 3.14M | 0 | 0 | 2.2M |
| D&A / Revenue % | 0.87% | 0.57% | 0.17% | 0% | 0% | 0% | 0% | 0% | 4.34% | 3.74% | 0% | 0% | 314.29% |
| Operating Income | 109.13M | 271.64M | 445.97M | 426.44M | 269.09M | 245.94M | 181.58M | 244.84M | 171.69M | 60.31M | 32.63M | 17.57M | -2.2M |
| Operating Margin % | 26.35% | 59.31% | 75.25% | 64.59% | 61.65% | 86.06% | 67.27% | 88.78% | 86.71% | 71.7% | 98.37% | 125.5% | -314.29% |
| Interest Expense | 4M | 322.96M | 412.91M | 458.8M | 236.09M | 114.44M | 127.31M | 158.86M | 85.02M | 21.22M | 7.43M | 554K | 0 |
| Interest Coverage | - | 0.84x | 1.08x | 0.93x | 1.16x | 2.20x | 1.43x | 1.57x | 2.06x | 3.88x | 5.39x | 32.71x | - |
| Non-Operating Income | 2.68M | -678K | -1.52M | -1.42M | -4.66M | -6.37M | -537K | -4.57M | -3.06M | -22.1M | -7.43M | -554K | 2.2M |
| Pretax Income | -188.81M | -50.65M | 34.58M | -30.95M | 37.65M | 137.87M | 54.81M | 90.54M | 89.74M | 61.18M | 32.63M | 17.57M | -2.2M |
| Pretax Margin % | -45.59% | -11.06% | 5.83% | -4.69% | 8.63% | 48.25% | 20.3% | 32.83% | 45.32% | 72.74% | 98.37% | 125.5% | -314.29% |
| Income Tax | -156K | -156K | 248K | 710K | 58K | 684K | 412K | 579K | -70K | 1.1M | 354K | 393K | 0 |
| Effective Tax Rate % | 0.08% | 0.31% | 0.72% | -2.29% | 0.15% | 0.5% | 0.75% | 0.64% | -0.08% | 1.8% | 1.09% | 2.24% | 0% |
| Net Income | -184.96M | -47.05M | 35.59M | -30.85M | 38.1M | 137.18M | 54.4M | 89.97M | 89.74M | 59.06M | 31.16M | 16.76M | -2.09M |
| Net Margin % | -44.66% | -10.27% | 6.01% | -4.67% | 8.73% | 48.01% | 20.15% | 32.62% | 45.32% | 70.22% | 93.94% | 119.77% | -298.29% |
| Net Income Growth % | -751.56% | -232.2% | 215.36% | -180.97% | -72.22% | 152.19% | -39.54% | 0.25% | 51.95% | 89.56% | 85.87% | 902.83% | - |
| Funds From Operations (FFO) | -181.37M | -44.45M | 36.57M | -30.85M | 38.1M | 137.18M | 54.4M | 89.97M | 98.33M | 62.2M | 31.16M | 16.76M | 112K |
| FFO Margin % | -43.79% | -9.71% | 6.17% | -4.67% | 8.73% | 48.01% | 20.15% | 32.62% | 49.66% | 73.95% | 93.94% | 119.77% | 16% |
| FFO Growth % | -1368.49% | -221.53% | - | - | - | - | - | - | 58.08% | - | - | - | - |
| FFO per Share | -2.90 | -0.67 | 0.53 | -0.45 | 0.56 | 2.42 | 0.97 | 1.56 | 1.78 | 1.37 | 0.60 | 0.32 | 0.35 |
| FFO Payout Ratio % | -35.78% | -150.43% | 223.65% | -385.25% | 302.77% | 69.75% | 177.31% | 109.99% | 90.35% | 81.31% | 70.31% | 45.01% | 0% |
| EPS (Diluted) | -2.96 | -1.05 | 0.19 | -0.78 | 0.23 | 2.21 | 0.96 | 1.57 | 1.63 | 1.30 | 0.60 | 0.32 | -6.54 |
| EPS Growth % | -396.97% | -652.63% | 124.36% | -439.13% | -89.59% | 130.21% | -38.85% | -3.68% | 25.38% | 116.67% | 87.5% | 104.89% | - |
| EPS (Basic) | - | -1.05 | 0.19 | -0.78 | 0.23 | 2.22 | 0.96 | 1.58 | 1.63 | 1.30 | 0.60 | 0.32 | -6.54 |
| Diluted Shares Outstanding | 62.46M | 66.81M | 69.4M | 69.18M | 67.55M | 56.78M | 56.06M | 57.53M | 55.17M | 45.32M | 52.17M | 52.17M | 319.21K |
Quick answers to the most common questions about buying KREF stock.
For fiscal year 2025, KKR Real Estate Finance Trust Inc. (KREF) reported total revenue of $458.0M. This represents a 65322.7% increase compared to $0.7M in 2014.
KKR Real Estate Finance Trust Inc. (KREF) reported a net loss of $47.1M for the fiscal year ending 2025.
KKR Real Estate Finance Trust Inc. (KREF) reported an operating income of $271.6M, resulting in an operating profit margin of 59.3%. This margin reflects the operational efficiency of the business before interest and taxes.
KKR Real Estate Finance Trust Inc. (KREF) generated $404.4M in gross profit for the year, representing a gross profit margin of 88.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative FFO and dividend safety
Metrics are mathematically derived from official filings.
Revenue Erosion Accelerates Sharply
KREF's revenue has contracted for nine consecutive quarters, with the decline accelerating to -23.2% year-over-year in 2026Q2, as reported in recent SEC filings, indicating a severe and worsening top-line trajectory.
The accelerating revenue decline, from -10.6% in 2024Q3 to -23.2% in 2026Q2, suggests the mortgage REIT is experiencing significant portfolio runoff or asset dispositions without sufficient new originations to offset the loss. This pattern is consistent with a shrinking balance sheet in a challenging lending environment, where the company appears to be prioritizing liquidity over growth.
NOI Margin Compression Signals Deterioration
The NOI margin has deteriorated from 92.5% in 2024Q1 to 82.7% in 2026Q2, based on the provided financial statements, indicating rising operating costs or less favorable revenue composition that is eroding property-level profitability.
For a mortgage REIT, NOI margin compression typically reflects higher interest expense on borrowed funds relative to the yield on the loan portfolio, or increased credit loss provisions. The 980 basis point margin decline over ten quarters suggests the company's net interest spread is under severe pressure, which directly undermines its core earnings engine.
FFO Deepens into Negative Territory
FFO per share has deteriorated to -$1.85 in 2026Q2, a significant decline from -$0.85 in the prior quarter, as reported in the company's financial results, indicating the core earnings power of the portfolio is deeply negative.
The sequential deterioration in FFO from -$55.2M to -$115.4M suggests the negative earnings trend is not stabilizing but worsening. This level of negative FFO raises serious questions about the sustainability of the dividend, which currently yields 3.8%, as the company is not generating the cash flow to support it from operations.
2025Q3: A Brief Positive FFO Blip
The only quarter with positive FFO in the dataset was 2025Q3 at $14.5M, which appears to have been an anomaly rather than a sustainable inflection, as the metric immediately returned to negative territory.
The isolated positive FFO in 2025Q3, sandwiched between negative quarters, suggests a one-time event such as a gain on sale or a reversal of previously recognized losses. The immediate reversion to deeply negative FFO in subsequent quarters indicates the underlying business fundamentals did not improve, making this quarter an outlier rather than a turning point.
Dividend Sustainability Under Severe Pressure
The company's dividend yield of 3.8% appears unsupported by fundamentals, as AFFO has been negative for seven of the last ten quarters, with the deficit widening to -$140.4M in 2026Q2.
A mortgage REIT paying a dividend while generating deeply negative AFFO is likely funding the distribution through asset sales, credit facilities, or equity issuances, which are not sustainable long-term. The widening gap between the dividend obligation and the cash flow available to cover it represents the most significant risk to shareholders, as a cut or suspension may become necessary if the negative trend persists.