Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q3 2017 Earnings Presentation
17 slides from Kkr Real Estate Finance Trust's earnings presentation, Nov 7, 2017
Slide 1: KKR Real Estate Finance Trust Inc. 3rd Quarter 2017 Supplemental Information
KKR Real Estate Finance Trust Inc. 3rd Quarter 2017 Supplemental Information November 7, 2017
Slide 2: Legal Disclosures
Legal Disclosures This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the benefit of its stockholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR Real Estate Financ
Slide 3: 3Q17 Key Highlights
3Q17 Key Highlights Net income attributable to common stockholders of $17.3 million or $0.32 per share; Net Core Earnings(1) of $16.5 million or $0.31 per share Financials Book value of $19.78 per share Paid 3Q dividend of $0.37 per share on October 12, 2017, equating to a 7.3% annualized divi
Slide 4: 3Q17 Financial Summary
3Q17 Financial Summary Income Statement Balance Sheet ($ in Millions, except per share data) ($ in Millions, except per share data) 3Q17 3Q17 Net Interest Income $19.0 Total Portfolio $1,811.6 Secured Debt Outstanding Face Other Income $4.3 $761.6 Amount Operating Expenses and Other $(6.0) Senior Lo
Slide 5: 3Q17 Loan Originations
3Q17 Loan Originations Summary of 3Q17 Originations Outstanding Portfolio ($ in Millions) 5 • New loans originated $2,099 Future $629mm • Committed to new loans ($47) $287 Funding Obligations(2) $1,812 $594 100% • Senior loans 100% • Floating-rate loans $1,265 69% • Weighted average LTV • Weighted a
Slide 6: Loan Originations – Case Studies
3Q17 Loan Originations – Case Studies Investment New York City Residential Condo Atlanta Office Honolulu Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $239 million $119 million $105 million Location New York, NY Atlanta, GA Honolulu, HI
Slide 7: Loan Originations – Case Studies
3Q17 Loan Originations – Case Studies Investment Denver Multifamily Queens Industrial Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $91 million $75 million Location Denver, CO Queens, NY Collateral 274 unit Class A luxury apartment building Two adjacent, Class B, 616k SF in
Slide 8: KREF Portfolio by the Numbers
3Q17 KREF Portfolio by the Numbers • $1.8 billion portfolio comprised of 31 investments • Portfolio weighted average LTV of 67%(1) Investment Type(2) Interest Rate Type Mezz 4% CMBS 6% Fixed 8% Senior Loans Floating 90% 92% Property Type(3) Geography(3) Hospitality Industrial/Flex 3% 8% Condo (Resid
Slide 9: 3Q Financing Overview
3Q Financing Overview • Total financing capacity of $1.8 billion with $1.1 billion of undrawn capacity • Subsequent to quarter end, upsized Goldman Sachs term credit facility by $150 million and extended maturity to 2022 on a fully-extended basis Summary of Outstanding Financing ($ in Millions) Outs
Slide 10: Interest Rate Sensitivity
Interest Rate Sensitivity • KREF benefits in a rising rate environment • 92% of the portfolio is indexed to one-month USD LIBOR • A 50 basis point increase in one-month USD LIBOR would increase net interest income by $2.9 million or $0.05 per share over the next 12 months(1) Net Interest Income Sens
Slide 11: Appendix
Appendix KKR 11 REAL ESTATE FINANCE TRUST
Slide 12: Portfolio Details
Portfolio Details ($ in millions) Max Committed Current Remaining Investment Principal Principal Net Future Term # Investment Location Property Type Date Amount Amount Equity(2) Funding(3) Coupon(4)(5) (Yrs)(4)(6) LTV(4)(7) Senior Loans(1) 1 Senior Loan New York, NY Condo (Residential) 8/4/2017 $239
Slide 13: Fully Extended Loan Maturities
Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 4.1 years(1) Fully Extended Loan Maturities(1) ($ in Millions) $800 $747.9 $700 $600 $528.6 $500 $396.4 $400 $300 $200 $100 $8.0 $18.2 $0 2017 2018 2019 2020 2021 2022 2023 2024 2025 Fully extended maturity (1) Exclude
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet (in thousands - except share and per share data) September 30, 2017 December 31, 2016 Assets Cash and cash equivalents $ 89,976 $ 96,189 Restricted cash and cash equivalents 600 157 Commercial mortgage loans, held-for-investment, net 1,543,851 674,596 Commercial mortgage l
Slide 15: Consolidated Statement of Operations
Consolidated Statement of Operations (in thousands - except share and per share data) For the Three Months Ended For the Nine Months Ended Sept 30, 2017 Sept 30, 2016 Sept 30, 2017 Sept 30, 2016 Net Interest Income Interest income $ 24,408 $ 7,896 $ 54,760 $ 20,884 Interest expense 5,414 1,627 12,59
Slide 16: Reconciliation of GAAP Net Income to Core Earnings and Net Core Earnings
Reconciliation of GAAP Net Income to Core Earnings and Net Core Earnings 3Q17 2Q17 ($ in millions, except share and per share data) Net Income Attributable to Common Stockholders $17.3 $14.1 Adjustments Non-cash equity compensation expense - - Incentive compensation to affiliate - - Depreciation and
Slide 17: Key Definitions
Key Definitions • "Core Earnings" and “Net Core Earnings”: Used by the Company to evaluate the Company's performance excluding the effects of certain transactions and GAAP adjustments the Company believes are not necessarily indicative of the current loan activity and operations. Core Earnings and N
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