What factors drove the changes in KKR Real Estate's revenue and profit?

What is the revenue and EPS growth rate for KKR Real Estate year over year?

Did KKR Real Estate beat or miss consensus estimates last quarter?

What is KKR Real Estate's gross profit margin?

What were the key takeaways from KKR Real Estate's earnings call?

What were the key takeaways from KKR Real Estate’s earnings call?

What guidance did KKR Real Estate's management provide for the next earnings period?

What does KKR Real Estate do and what are its main business segments?

- **European Expansion Success**: Closed first European loan, part of $2.5B+ European credit platform.
- **REO Unlock Potential**: $0.13 per share quarterly earnings from asset sales, with $933M liquidity to support redeployment.
- **Market Momentum**: $400M+ Q4 originations expected, matching repayments despite timing delays.
- **Risk Management**: 85% of loan book risk-rated 3+, CECL reserve 3% of loans, stable 1.8x debt-to-equity ratio.
- **Strategic Initiatives**: K-Star platform expansion, share buybacks ($34M YTD), and exploratory M&A for scale.

**【Management Opening Remarks】**
- Reported GAAP net income of $8 million ($0.12 per share) and distributable loss of $2 million due to taking ownership of a Raleigh multifamily property.
- Paid a $0.20 cash dividend for the quarter.
- Book value remained stable at $13.78 per share.

**【CEO Commentary】**
- Highlighted robust market activity with $400 million+ expected Q4 originations, including first European loan secured by 12 Paris/Lyon industrial assets.
- K-Star platform manages $37B+ loans and is special servicer on $45B CMBS, supporting disciplined risk management.
- REO portfolio unlock potential: $0.13 per share quarterly earnings from asset sales.
- 2025 investment volume of $10B across global real estate credit platform.

**【COO Commentary】**
- Liquidity at near-record $933M (including $200M cash) and $7.7B total financing availability (77% non-MTM).
- Year-to-date share repurchases of $34M at $9.70 avg price.
- Watch list: 85% of loan portfolio risk-rated 3+; CECL reserve $160M (3% of loans).
- REO progress: Raleigh multifamily under renovation, West Hollywood condo sales launched, Portland entitlements expected Q1 2026.

**【Q&A Highlights】**
- Liquidity timing: Q3 repayments ($480M) > originations ($110M) due to European closings; expect Q4 originations to match repayments.
- Life Science recovery: 4 assets remain risk-rated 3; early signs of demand from larger pharma tenants.
- European lending: similar ROE to U.S. (hedged basis), but larger loan sizes and multi-jurisdictional portfolios.
- M&A: open to strategic opportunities for scale and diversification, but no active deals.
- 2026 outlook: >$1.5B repayments to be matched with originations, maintaining 1.8x debt-to-equity target.

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