Citizens JMP has revised its price target for KKR Real Estate Finance (KREF, Financial), reducing it from $13 to $12. Despite this adjustment, the firm continues to rate KREF shares as Outperform. This decision comes after a setback in Q1 GAAP earnings, which were affected by an added loan loss provision of $25 million. However, distributable earnings per share outpaced market expectations, underscoring the firm's optimism.
The updated target price anticipates a substantial potential total return of 40%. This includes an expected price appreciation of 29.3% and a dividend yield of 10.8%, reflecting the firm's confidence in KREF's financial prospects and return potential.
