Form 4: KKR Affiliates Increase Stake in KKR Real Estate Select Trust Through Fee Payment

KKR Alternative Assets LLC and related entities acquired over 55,000 shares of KKR Real Estate Select Trust Inc. common stock as payment for management and incentive fees.

Summary

• KKR Alternative Assets LLC, an affiliate of KKR Registered Advisor LLC, acquired 55,537.098 shares of Class I Common Stock of KKR Real Estate Select Trust Inc. on May 30, 2025.
• The shares were issued at a price of $23.92 per share as payment for management and/or incentive fees under an existing investment advisory agreement.
• Following this transaction, the beneficial ownership of KKR Alternative Assets LLC and its related entities, including KKR Group Assets Holdings II L.P., KKR Group Assets II GP LLC, KKR Group Partnership L.P., KKR Group Holdings Corp., KKR Group Co. Inc., KKR & Co. Inc., KKR Management LLP, Henry R. Kravis, and George R. Roberts, stands at 10,536,524.933 shares.
• All listed reporting persons are identified as both Directors and 10% Owners of KKR Real Estate Select Trust Inc.
• The reporting persons disclaim beneficial ownership of the securities except to the extent of their pecuniary interest therein.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. While a routine transaction, the acquisition of shares by affiliates as payment for fees indicates continued operational activity and aligns the interests of the management with the company's performance, which is generally viewed favorably by investors.

Positives

• The acquisition of shares by KKR affiliates as payment for fees indicates ongoing business operations and a continued relationship between the advisory entity and KKR Real Estate Select Trust Inc.
• The transaction increases the alignment of interests between the management/advisory group and the shareholders of KKR Real Estate Select Trust Inc. through equity ownership.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This Form 4 filing reflects a routine transaction within the real estate investment trust (REIT) sector, where advisory fees are often paid in equity, aligning the interests of the asset manager (KKR) with the performance of the REIT (KKR Real Estate Select Trust Inc.). This practice is common among externally managed REITs and investment vehicles.

Related Party Transactions

• KKR Alternative Assets LLC, an affiliate of KKR Registered Advisor LLC, received shares of KKR Real Estate Select Trust Inc. as payment for management and/or incentive fees, indicating a transaction between related entities under an existing investment advisory agreement.

Stakeholder Impact

• Shareholders: The transaction increases the equity stake of KKR affiliates, potentially enhancing alignment of interests between management and shareholders.
• Management/Advisors: KKR Registered Advisor LLC and its affiliates receive compensation in the form of equity, linking their financial success directly to the performance of KKR Real Estate Select Trust Inc.

Key Dates

Recommendation

Keywords

KKR Real Estate Select Trust Inc., KKR Alternative Assets LLC, SEC Form 4, Insider Transaction, Share Acquisition, Management Fees, Incentive Fees, Beneficial Ownership, Real Estate Investment Trust, REIT