KKR Financial Holdings Reports $13M 1Q Loss

SAN FRANCISCO (AP) — KKR Financial Holdings LLC, an investment fund operated by private equity fund Kohlberg Kravis Roberts & Co., reported Thursday that it lost $13 million in the first quarter, compared with a year-ago profit of $14 million.

The loss for the first three months of the year was equivalent to 9 cents a share, while the year-ago profit was equal to 12 cents a share.

The results for the quarter ended March 31 were weighed down by a provision for loan losses of nearly $27 million, versus no such provision a year ago.

Additionally, the latest quarter included net realized and unrealized losses on corporate debt investments totaling $60.2 million, far wider than the 2008 quarter investments loss of $13.8 million.

KKR Financial also booked net realized and unrealized losses on investments in residential mortgage-backed securities totaling $19.4 million.

The items were partially offset by a gain on debt restructuring of $34.6 million related to the restructuring of Wayzata Funding LLC.

KKR Financial shares added 10 cents to close at $1.85. In after-hours trading, the stock shed 20 cents, or 11 percent, to $1.65.