KKR Real Estate Fund Completes Share Repurchase Worth $52M

KKR Real Estate Select Trust offers quarterly share buybacks, reporting significant demand in Q1 2025.

January 15, 2025

Share Repurchase Details

KKR Real Estate Select Trust Inc. (KREST) has completed its latest quarterly share repurchase program, acquiring 2,096,974 shares at $24.83 each, for a total value of approximately $52 million. This represents 4.27% of the fund’s net asset value (NAV) for the quarter. The buyback reflects the fund’s consistent commitment to providing liquidity for its shareholders while managing capital effectively.

The tender offer began on December 11, 2024, and closed on January 10, 2025. A total of 2,457,512 shares were made available for repurchase, with 2,096,974 shares successfully tendered and accepted. The per-share repurchase price aligned with the NAV as of the valuation date on January 10, 2025.

While the fund allows for flexibility to repurchase up to an additional 2% of NAV in the case of oversubscription, the option was not exercised during this period. The fund’s buyback approach aims to balance investor liquidity needs with NAV preservation.

Strategic Context

This initiative aligns with KREST’s strategy of quarterly tender offers, a unique feature designed to enhance liquidity in an otherwise illiquid asset class. Real estate investment trusts (REITs) like KREST typically provide long-term investment opportunities but have limited redemption options. By implementing controlled repurchase programs, KREST offers an appealing blend of accessibility and stability.

Broader Implications

The $52 million tender highlights KREST’s focus on fostering investor confidence amidst a challenging economic backdrop. By honoring repurchase requests, the fund showcases its operational stability and adherence to shareholder-centric principles. These actions reflect strong governance and a well-capitalized position.

The next step involves the continued monitoring of NAV performance and market conditions to support future liquidity offerings. KREST’s structured tender offers are likely to remain a cornerstone of its strategy, balancing investor needs and fund integrity.