KKR Real Estate Finance Trust Swings to $56.1M Net Loss in Q1 2026

KKR Real Estate Finance Trust Inc. (NYSE: KREF), a mortgage real estate investment trust, reported a net loss of $56.1 million for the quarter ending March 31, 2026, compared to a $4.9 million loss in the same quarter of 2025. The loss per share widened to negative $0.96 from negative $0.15 a year earlier. Read more earnings reports.

Operating expenses rose to $7.1 million in the first quarter of 2026, up from $5.0 million in the first quarter of 2025. Interest expense declined sharply to $15.2 million from $25.1 million in the prior-year period.

Total assets increased to $6.95 billion as of March 31, 2026, up from $6.46 billion at year-end 2025. Cash and cash equivalents stood at $135.4 million at quarter-end, compared to $84.6 million at December 31, 2025.

Total debt decreased to $2.80 billion as of March 31, 2026, down from $2.86 billion three months earlier. Total liabilities rose to $5.80 billion from $5.24 billion over the same period.

Stockholders' equity declined to $1.10 billion as of March 31, 2026, from $1.17 billion at the end of 2025. The company's retained deficit widened to negative $584.1 million from negative $506.1 million during the quarter.

Cash from operations totaled $13.1 million in the first quarter of 2026, down from $15.9 million in the year-ago quarter. Cash from investing activities generated $249.5 million, reversing an outflow of $220.5 million in the prior-year period. Cash used in financing activities was $212.6 million, compared to cash generated of $205.3 million a year earlier.

Common shares outstanding decreased to 64.3 million at March 31, 2026, from 64.4 million at December 31, 2025. The company reported 64.7 million weighted average shares outstanding for the quarter, down from 68.8 million in the first quarter of 2025.