KKR Real Estate Finance: The Preferreds Are A Buy At Their 7.7% Dividend Yield

Walter Bibikow/DigitalVision via Getty Images KKR Real Estate Finance (NYSE:KREF) has seen its commons and preferreds (NYSE:KREF.PR.A) recover substantially from lows over the last few months since I last covered the mortgage REIT's portfolio. The preferreds are now trading for 84.6 cents on the dollar, a roughly 15.4% discount to their $25 per share liquidation value, and offer a 7.7% yield on cost against their $1.625 per share annual coupon. This discount should be closer to 90% as pending Fed rate c ...