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KR Real Estate Finance Trust's (KREF) latest earnings report reveals a revenue dip of 24.4% year-over-year, settling at $35.13 million for the quarter ended December 2024. This decline eclipses the Zacks Consensus Estimate by -3.62%, while EPS of $0.31 trails last year's $0.47 by 34%. Despite this, KREF's EPS surprise outpaces expectations, rising +3.33% above the consensus estimate of $0.30.
Beyond headline numbers, investors often scrutinize key metrics to gauge a company's underlying performance. These metrics drive top- and bottom-line figures, making year-over-year comparisons and analyst estimates crucial for projecting stock price performance. Let's dissect KREF's quarterly performance through these vital metrics:
Total net interest income plummeted 24.4% from the previous year, reaching $35.13 million against an average estimate of $36.46 million from two analysts.
Other income saw a modest increase of +11.6% year-over-year, totaling $4.66 million, which falls short of the $5.93 million consensus estimate based on analyst projections.
Breaking down other income further:
* Other income decreased by -6.7% compared to the same period last year, reaching $1.19 million against an average estimate of $1.50 million.
* Income (loss) from equity method investments dropped a staggering 127%, landing at -$0.10 million versus the two-analyst average estimate of $0.58 million.
* Revenue from real estate owned operations surged +41.4% year-over-year, reaching $3.56 million against an average estimate of $3.90 million.
KKR Real Estate's stock has underperformed the broader market in recent times, with a -3.9% return over the past month compared to the Zacks S&P 500 composite's +2.7% change. The stock currently holds a Zacks Rank #4 (Sell), indicating potential near-term underperformance.
