KKR Real Estate Finance Trust Inc. (NYSE:KREF) Q2 2023 Results Conference Call July 25, 2023 10:00 AM ET
Company Participants
Jack Switala - IR
Matt Salem - CEO
Patrick Mattson - President and COO
Kendra Decious - CFO
Conference Call Participants
Rick Shane - JPMorgan
Sarah Barcomb - BTIG
Jade Rahmani - KBW
Don Fandetti - Wells Fargo
Stephen Laws - Raymond James
Arren Cyganovich - Citi
Steve Delaney - JMP Securities
Operator
Good morning, and welcome to the KKR Real Estate Finance Trust Inc. Second Quarter 2023 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Jack Switala. Please go ahead.
Jack Switala
Great. Thanks, operator, and welcome to the KKR Real Estate Finance Trust earnings call for the second quarter of 2023. As the operator mentioned, this is Jack Switala. Today, I'm joined on the call by our CEO, Matt Salem; our President and COO, Patrick Mattson; and our CFO, Kendra Decious.
I'd like to remind everyone that we will refer to certain non-GAAP financial measures on the call, which are reconciled to GAAP figures in our earnings release and in the supplementary presentation, both of which are available on the Investor Relations portion of our website. This call will also contain certain forward-looking statements which do not guarantee future events or performance. Please refer to our most recently filed 10-Q for cautionary factors related to these statements.
Before I turn the call over to Matt, I'll provide a brief recap of our results. For the second quarter of 2023, we reported a GAAP net loss of $25.8 million or negative $0.37 per diluted share, including a CECL provision of $56.3 million or $0.82 per diluted share. Distributable earnings this quarter were $33.1 million or $0.48 per share. Book value per share as of June 30, 2023, was $16.38, a decline of 4.5% quarter-over-quarter. Our CECL allowance increased to $3.30 per share from $2.48 per share last quarter. The increase was primarily due to additional reserves on risk-rated 5 senior office loans as well as macroeconomic conditions.
Finally, in June, we paid a cash dividend of $0.43 per common share with respect to the second quarter. Based on yesterday's closing price, the dividend reflects an annualized yield of 13.5%.
With that, I'd now like to turn the call over to Matt.