KKR Real Estate Finance Trust Inc. (“KREF”) (NYSE: KREF) announced today that it plans to release its financial results for the third quarter 2020 on Monday, October 26, 2020, after the closing of trading on the New York Stock Exchange.

A conference call to discuss KREF’s financial results will be held on Tuesday, October 27, 2020 at 10:00 a.m. ET. The conference call may be accessed by dialing (844) 784-1730 (U.S. callers) or +1 (412) 380-7410 (non-U.S. callers); a pass code is not required. Additionally, the conference call will be broadcast live over the Internet and may be accessed through the Investor Relations section of KREF’s website at http://www.kkrreit.com/investor-relations/events-and-presentations. A slide presentation containing supplemental information may also be accessed through this website in advance of the call.

A replay of the live broadcast will be available on KREF’s website or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), pass code 10148123, beginning approximately two hours after the broadcast.

About KKR Real Estate Finance Trust Inc.

KREF is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc. For additional information about KREF, please visit its website at www.kkrreit.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201012005490/en/

Contacts

MEDIA:
Kristi Huller or Cara Major
(212) 750-8300
[email protected]

INVESTOR RELATIONS:
Michael Shapiro
(646) 901-5920
[email protected]

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Many investors believe the real estate sector is a “boring” place to invest and that its returns couldn’t possibly match that of the S&P 500 over time.

Nothing could be further from the truth. In fact, it’s fair to say that many investors who bought REITs and held on to them for 20 years or more were able to build life-changing wealth as a result.

With that in mind, here are five rock-solid real estate investment trusts, or REITs, that have delivered quarter-million dollar returns (or much more) for investors who had the foresight and patience to invest early and let their money grow by reinvesting their dividends along the way.

Man cheering with money falling around him.

Image source: Getty Images.

1. Realty Income

Realty Income (NYSE: O) is a net-lease REIT that specializes in freestanding retail properties but focuses on tenants that are recession-resistant and that aren’t easily disrupted by e-commerce. Just to name a few examples, dollar stores, convenience stores, and drug stores are among Realty Income’s top property types.

The strategy has produced decades of consistent income and strong returns. Realty Income recently paid its 600th consecutive monthly dividend and has increased its payout more than 100 times since listing on the NYSE in 1994. Since that time, the stock has delivered annualized returns of more than 15%, and a $10,000 investment at the time of Realty Income’s listing 26 years ago would be worth more than $409,000 today.

2. Welltower

Welltower (NYSE: WELL) is the largest REIT that focuses on healthcare real estate. The company owns a massive portfolio consisting of senior housing, long-term care, outpatient medical, and hospital properties. Over the years, the company has done a great job of strategic acquisitions and dispositions, and has taken advantage of the growing need for senior-focused healthcare services in the United States.

Back in March, in a Herculean effort to create liquidity, the Federal Reserve pledged a multi-trillion dollar expansion of its balance sheet through the purchase of a broad swath of securities. In September Chair Jay Powell declared that interest rates would stay at or near zero through 2023.

This largesse has finally come to REITs. Here are just a few recent examples of the action.

HTA

Earlier this month, Health Trust of America (HTA) announced issuance of $800MM 2.00% ten-year notes. They will use the proceeds to redeem $300MM 3.7% notes due 2023, reducing annual interest expense by $5.1MM (increasing income by $0.0233/share). On 9/22 they increased their dividend. On 9/23 they reinstated a $300MM share repurchase program which will further increase FFO/share.

HR

On 9/18 Healthcare Realty Trust (HR) announced the issuance of $300MM 2.05% Senior Unsecured Notes due 2031. Simultaneously, they announced the redemption of $250MM 3.75% Senior Notes due 2023. While the 1.7% lower coupon of the new notes will save them ~$4.2MM/annum in interest expense ($0.031/share), the $21.5MM early extinguishment charge HR will take in the 4th quarter makes the maneuver look a little dubious.

DLR

Even bolder, On 09/07, Interxion (Digital Realty’s recently acquired European unit) announced a strategic land acquisition in Madrid. On 09/09, they acquired Altus IT to establish a business presence in Croatia. On 09/14, they simultaneously announced the redemption of €300MM 4.75% Guaranteed Notes due 2023 and that they would pay for the redemption with the issuance of €1.05B super cheap, long dated debt. Not done yet, and this is where it gets really interesting, on 09/15 they announced the redemption of Digital’s 5.875% Series G Preferred Stock.

UMH

On August 20 UHM Properties (UMH), a small cap REIT in the manufactured housing sub-sector, announced the completion of a $106MM



kiplinger-retirement-2020930

There are several estate planning strategies to consider before the rules change.




This year is an opportune time to consider succession and wealth planning.

One reason is the federal estate and gift tax exemption is at a historic high of $11,580,000 in 2020 — $23,160,000 for couples if portability is elected on a federal estate tax return. Portability allows a married decedent’s unused estate and gift tax exemption to pass to the surviving spouse. The tax rate is 40%.

This exemption amount expires at the end of 2025, but if the Democrats win big in November, odds are good the exemption will fall sooner because Joe Biden has called for lowering it. He hasn’t given an exact figure, but it could revert to pre-2018 levels of about $5 million ($10 million for couples), with inflation adjustments.

Here are two estate planning strategies to consider now before the rules change:

  • You can give up to $15,000 to each child, grandchild or any other person in 2020 without having to file a gift tax return, pay gift tax or tap your exemption. The recipient isn’t taxed on the amount received either.

Gifts made in 2020 that exceed the $15,000 per person limit will require the donor to file a gift tax return using IRS Form 709, but no gift tax will be due in 2020 unless your total lifetime gifts exceed $11,580,000. If you’ve been thinking of making a large gift to a family member, now might be the time to do it.

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Spencer Platt/Getty Images

Several Wall Street banks have come to dominate a corner of U.S. commercial real estate finance over the past seven months, even as the coronavirus pandemic has cast a long shadow over the market.

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Deutsche Bank (DB) Goldman Sachs (GS) and JP Morgan Chase (JPM) each significantly grew their share of the roughly $550 billion commercial mortgage-backed securities (CMBS) market during the pandemic, according to a new report by Deutsche’s research arm.

The CMBS market is a type of property finance where Wall Street banks make loans on hotels, skyscrapers, and other types of commercial buildings to package into bond deals that investors buy.

This chart shows which Wall Street banks won — and lost — market share since the pandemic took hold in the U.S.

Deutsche Bank Research, Index data

Researchers categorized loans as pre-COVID from January to March, but as post-COVID as of April. Loans made by more than one bank went into the “other” category.

By those metrics, Deutsche, long a major player in U.S. commercial real estate finance, ranked as the top lender in the sector, with a 20% market share of the “COVID-19” lending pie.

Deutsche Bank has been a key financier of the sprawling Hudson Yards complex development on Manhattan’s far West Side, as well as a long time lender to President Donald Trump and his son-in-law Jared Kushner‘s real estate company.

Goldman Sachs ranked second with a 18% lending share during the pandemic and JP Morgan third with a 15% slice.

Deutsche Bank declined to comment. Goldman and JP Morgan did not respond to requests for comment.

Investors have been looking forward to major banks providing an update on their commercial real-estate exposure for clues about the shape of the broader economy, when the third-quarter U.S. corporate