KKR Real Estate Finance (KREF) Reports Q3 Loss, Lags Revenue Estimates

Core Insights - KKR Real Estate Finance (KREF) reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of $0.01, and a significant decline from earnings of $0.4 per share a year ago, indicating an earnings surprise of -400.00% [1] - The company posted revenues of $25.33 million for the quarter ended September 2025, which was 10.29% below the Zacks Consensus Estimate and a decrease from $37.01 million in the same quarter last year [2] - KKR Real Estate shares have underperformed the market, losing approximately 15.4% year-to-date compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.10 on revenues of $26.77 million, and for the current fiscal year, it is $0.32 on revenues of $116.53 million [7] Industry Context - The REIT and Equity Trust industry, to which KKR Real Estate belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Franklin BSP (FBRT), is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year increase of 340%, with revenues anticipated to be $49.6 million, a slight decrease from the previous year [9][10]