KKR Real Estate Finance Trust Inc. (NYSE:KREF) Q2 2024 Earnings Conference Call July 23, 2024 10:00 AM ET
Company Participants
Jack Switala - Investor Relations
Matt Salem - Chief Executive Officer
Patrick Mattson - President & Chief Operating Officer
Conference Call Participants
Stephen Laws - Raymond James
Rick Shane - JPMorgan
Don Fandetti - Wells Fargo
Jade Rahmani - KBW
Steve Delaney - JMP Securities
Tom Catherwood - BTIG
Operator
Good morning, and welcome to the KKR Real Estate Finance Trust Incorporated Second Quarter 2024 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [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 2024.
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 2024, we reported GAAP net income of $20.2 million or $0.29 per share. Distributable earnings this quarter were negative $108.7 million or negative $1.57 per share, including realized losses of $136 million or $1.97 per share. Distributable earnings prior to realized losses were $0.40 per share relative to our Q2 $0.25 per share dividend.
Book value per share as of June 30, 2024, was $15.24, representing an increase of $0.06 quarter-over-quarter. Our CECL allowance decreased to $1.65 per share from $3.54 per share last quarter, primarily driven by realized losses.
With that, I'd now like to turn the call over to Matt.
Matt Salem
Thank you, Jack. Good morning, everyone, and thank you for joining us today. Before turning to KREF's second quarter results, I'd like to begin with a brief market update. In mid-July, US core CPI came in at the lowest level since 2021, signaling that inflation is subsiding. Fixed income and equity markets reacted positively.