Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q4 2017 Earnings Presentation
17 slides from Kkr Real Estate Finance Trust's earnings presentation, Feb 28, 2018
Slide 1: 4th Quarter 2017 Supplemental Information
KKR Real Estate Finance Trust Inc. 4th Quarter 2017 Supplemental Information February 28, 2018
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: 4Q17 Key Highlights
4Q17 Key Highlights Net income attributable to common stockholders of $17.0 million or $0.32 per share; Net Core Earnings(1) of $17.1 million or $0.32 per share Financials Book value of $19.73 per share Paid 4Q dividend of $0.37 per share on January 12, 2018, equating to a 7.6% annualized divi
Slide 4: 4Q17 Financial Summary
4Q17 Financial Summary Income Statement Balance Sheet ($ in Millions, except per share data) ($ in Millions, except per share data) 4Q17 4Q17 Net Interest Income $19.8 Total Portfolio $2,083.1 Secured Debt Outstanding Face Other Income $3.8 $969.3 Amount Operating Expenses and Other $(6.5) Senior Lo
Slide 5: 4Q17 Loan Originations
4Q17 Loan Originations Summary of 4Q17 Originations Outstanding Portfolio ($ in Millions) 2 • New loans originated $2,399 Future $332mm • Committed to new loans $316 Funding ($20) Obligations(2) $2,083 $291 100% • Senior loans $1,812 +15% 100% • Floating-rate loans 66% • Weighted average LTV • Weigh
Slide 6: 2017 Loan Originations
2017 Loan Originations • Originated $1.5 billion of floating-rate senior loans in 2017, up 175% from prior year Summary of 2017 Originations Outstanding Portfolio ($ in Millions) 12 • New loans originated $2,399 Future $1.5bn • Committed to new loans $316 Funding ($68) Obligations(2) $2,083 100% • S
Slide 7: Loan Originations – Case Studies
4Q17 Loan Originations – Case Studies Investment New Jersey Multifamily Minneapolis Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $150 million $182 million Location North Bergen, NJ Minneapolis, MN Collateral 320 unit Class A luxury apartment building Two Class A off
Slide 8: KREF Portfolio by the Numbers
4Q17 KREF Portfolio by the Numbers • $2.1 billion portfolio comprised of 33 investments • Portfolio weighted average LTV of 67%(1) Investment Type(2) Interest Rate Type Mezz Fixed CMBS 4% 7% 6% Senior Loans Floating 90% 93% Property Type(3) Geography(3) Industrial/ Hospitality Flex 2% 7% Condo (Resi
Slide 9: Financing Overview
4Q17 Financing Overview • Upsized Goldman Sachs term credit facility by $150 million and extended maturity to 2022 on a fully-extended basis • Upsized Morgan Stanley term credit facility by $100 million(1) and extended maturity to 2021 on a fully-extended basis • Terminated JPMorgan term credit faci
Slide 10: Interest Rate Sensitivity
Interest Rate Sensitivity • KREF benefits in a rising rate environment • 93% 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 $2.8 million or $0.05 per share over the next 12 months(1)(2) Net Interest Income S
Slide 11: Appendix
Appendix KKR 11 REAL ESTATE FINANCE TRUST
Slide 12: Portfolio Details
Portfolio Details ($ 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 (Resi) 8/4/2017 $239.2 $205
Slide 13: Fully Extended Loan Maturities
Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 4.0 years(1) Fully Extended Loan Maturities(1) ($ in Millions) $1,200 $1,077.4 $1,000 $800 $600 $484.2 $400 $376.8 $200 $8.0 $18.2 $0 2018 2019 2020 2021 2022 2023 2024 2025 Fully extended maturity (1) Excludes CMBS; i
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) December 31, December 31, 2017 2016 Assets Cash and cash equivalents $ 103,120 $ 96,189 Restricted cash and cash equivalents 400 157 Commercial mortgage loans, held-for-investment, net 1,888,510 674,596 Commercial mortgage
Slide 15: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) For the Three Months Ended For the Year Ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Net Interest Income Interest income $ 28,385 $ 11,775 $ 83,145 $ 32,659 $ 12,536 Interest expense 8,632 3,
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 4Q17 3Q17 ($ in thousands, except share and per share data) Net Income Attributable to Common Stockholders $17,034 $17,339 Adjustments Non-cash equity compensation expense 25 25 Incentive compensation to affiliate - - Depreciat
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. The Company also us
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