KKR Real Debt
| KREF Stock | USD 8.40 0.04 0.47% |
KKR Real Estate has over 3.86 Billion in debt which may indicate that it relies heavily on debt financing. At this time, KKR Real's Cash Flow To Debt Ratio is most likely to slightly decrease in the upcoming years. KKR Real's financial risk is the risk to KKR Real stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
KKR Real's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. KKR Real's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps KKR Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect KKR Real's stakeholders.
For most companies, including KKR Real, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for KKR Real Estate, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, KKR Real's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
The KKR Real's current Change To Liabilities is estimated to increase to about 13.3 M, while Total Current Liabilities is projected to decrease to roughly 105.2 M. Check out the analysis of KKR Real Financial Statements. KKR Real Bond Ratings
KKR Real Estate financial ratings play a critical role in determining how much KKR Real have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for KKR Real's borrowing costs.| Piotroski F Score | 7 | Strong | View |
| Beneish M Score | (1.95) | Possible Manipulator | View |
KKR Real Estate Debt to Cash Allocation
Many companies such as KKR Real, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
KKR Real Estate currently holds 3.86 B in liabilities with Debt to Equity (D/E) ratio of 3.69, implying the company greatly relies on financing operations through barrowing. KKR Real Estate has a current ratio of 131.24, suggesting that it is liquid enough and is able to pay its financial obligations when due. Note, when we think about KKR Real's use of debt, we should always consider it together with its cash and equity.KKR Real Total Assets Over Time
KKR Real Assets Financed by Debt
The debt-to-assets ratio shows the degree to which KKR Real uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.KKR Real Debt Ratio | 42.0 |
KKR Real Corporate Bonds Issued
Most KKR bonds can be classified according to their maturity, which is the date when KKR Real Estate has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
KKR Net Debt
Net Debt |
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Understaning KKR Real Use of Financial Leverage
KKR Real's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures KKR Real's total debt position, including all outstanding debt obligations, and compares it with KKR Real's equity. Financial leverage can amplify the potential profits to KKR Real's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if KKR Real is unable to cover its debt costs.
| Last Reported | Projected for Next Year | ||
| Net Debt | 4.3 B | 3.2 B | |
| Short and Long Term Debt Total | 3.5 B | 4 B | |
| Long Term Debt | 4.4 B | 2.7 B | |
| Long Term Debt Total | 552.1 M | 524.5 M | |
| Short and Long Term Debt | 72 M | 68.4 M | |
| Short Term Debt | 72 M | 68.4 M | |
| Net Debt To EBITDA | 12.50 | 19.65 | |
| Debt To Equity | 2.59 | 2.17 | |
| Interest Debt Per Share | 55.47 | 46.26 | |
| Debt To Assets | 0.55 | 0.42 | |
| Long Term Debt To Capitalization | 0.66 | 0.54 | |
| Total Debt To Capitalization | 0.67 | 0.54 | |
| Debt Equity Ratio | 2.59 | 2.17 | |
| Debt Ratio | 0.55 | 0.42 | |
| Cash Flow To Debt Ratio | 0.04 | 0.04 |
Currently Active Assets on Macroaxis
When determining whether KKR Real Estate is a strong investment it is important to analyze KKR Real's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact KKR Real's future performance. For an informed investment choice regarding KKR Stock, refer to the following important reports:Check out the analysis of KKR Real Financial Statements. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Can Mortgage Real Estate Investment Trusts (REITs) industry sustain growth momentum? Does KKR have expansion opportunities? Factors like these will boost the valuation of KKR Real. Expected growth trajectory for KKR significantly influences the price investors are willing to assign. Determining accurate worth demands scrutiny of both present operating results and projected expansion capacity. Evaluating KKR Real demands reviewing these metrics collectively while recognizing certain factors exert disproportionate influence.
Quarterly Earnings Growth (0.64) | Dividend Share 1 | Earnings Share (0.35) | Revenue Per Share | Quarterly Revenue Growth 2.451 |
Investors evaluate KKR Real Estate using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating KKR Real's intrinsic value—the estimated true worth—helps identify when the stock trades at a discount or premium to fair value. Market participants employ diverse analytical approaches to determine fair value and identify buying opportunities when prices dip below calculated worth. External factors like market trends, sector rotation, and investor psychology can cause KKR Real's market price to deviate significantly from intrinsic value.
Understanding that KKR Real's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether KKR Real represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, KKR Real's market price signifies the transaction level at which participants voluntarily complete trades.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.