Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q2 2017 Earnings Presentation
16 slides from Kkr Real Estate Finance Trust's earnings presentation, Aug 9, 2017
Slide 1: KKR Real Estate Finance Trust Inc. 2nd Quarter 2017 Supplemental Information
KKR Real Estate Finance Trust Inc. 2nd Quarter 2017 Supplemental Information August 9, 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: 2Q17 Key Highlights
2Q17 Key Highlights Net income attributable to common stockholders of $14.1 million or $0.30 per share; Net Core Earnings(1) of $13.0 million or $0.28 per share Financials Book value of $19.83 per share Paid 2Q dividend of $0.25 per share on July 14, 2017 Originated $224 million of floating-
Slide 4: 2Q17 Financial Summary
2Q17 Financial Summary Income Statement Balance Sheet ($ in Millions, except per share data) ($ in Millions, except per share data) 2Q17 2Q17 Net Interest Income $14.2 Total Portfolio $1,265 Secured Debt Outstanding Face Other Income $4.8 $183 Amount Operating Expenses and Other $(4.9) Senior Loan I
Slide 5: 2Q17 Loan Originations
2Q17 Loan Originations Summary of 2Q17 Originations Outstanding Portfolio ($ in Millions) $1,522 2 • New loans originated Future Funding $257 Obligations(2) ($2) $224mm • Committed to new loans $188 $1,265 100% • Senior loans $1,079 100% • Floating-rate loans 64% • Weighted average LTV • Weighted av
Slide 6: 2Q17 Loan Originations – Case Studies
2Q17 Loan Originations – Case Studies Investment Irvine Office Atlanta Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $162 million $62 million Location Irvine, CA Atlanta, GA Collateral 595k SF Class A office complex 306k SF Class B+ office Loan Purpose Acquisition Re
Slide 7: 2Q17 KREF Portfolio by the Numbers
2Q17 KREF Portfolio by the Numbers • $1.3 billion portfolio comprised of 28 investments • Portfolio weighted average LTV of 67%(1) Investment Type(2) Interest Rate Type Preferred Mezz Equity 6% 2% CMBS Fixed 9% 11% Senior Loans Floating 83% 89% Property Type(3) Geography(3) Industrial/ Hospitality F
Slide 8: Financing Overview
Financing Overview • Total financing capacity of $1.8 billion with $1.6 billion of undrawn capacity • Upsized Wells Fargo term credit facility by $250 million and extended maturity to 2022 on a fully-extended basis • Entered into a $75 million revolving credit facility with Barclays Summary of Outst
Slide 9: Interest Rate Sensitivity
Interest Rate Sensitivity • KREF benefits in a rising rate environment • 89% 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 $1.6 million or $0.03 per share over the next 12 months(1) Net Interest Income Sens
Slide 10: Appendix
Appendix KKR 10 REAL ESTATE FINANCE TRUST
Slide 11: Portfolio Details
Portfolio Details Max Committed Current KREF Remaining Property Investment Principal Principal Net Future Term # Investment Location Type Date Amount Amount Equity(2) Funding(3) Coupon(4)(5) (Yrs)(4)(6) LTV(4)(7) Senior Loans(1) 1 Senior Loan Portland, OR Retail 10/26/2015 $177.0 $119.8 $108.6 $57.2
Slide 12: Fully Extended Loan Maturities
Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 4.4 years(1) Fully Extended Loan Maturities(1) ($ in Millions) $600 $519.0 $500 $436.7 $400 $300 $200 $171.3 $100 $18.2 $2.7 $8.0 $0 2017 2018 2019 2020 2021 2022 2023 2024 2025 Fully extended maturity (1) Excludes CMB
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet (in thousands - except share and per share data) June 30, 2017 December 31, 2016 Assets Cash and cash equivalents $ 57,013 $ 96,189 Restricted cash and cash equivalents 900 157 Commercial mortgage loans, held-for-investment, net 1,056,083 674,596 Commercial mortgage loans,
Slide 14: Consolidated Statement of Operations
Consolidated Statement of Operations (in thousands - except share and per share data) For the Three Months Ended For the Six Months Ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Net Interest Income Interest income $ 17,446 $ 6,719 $ 30,352 $ 12,988 Interest expense 3,225 1,199 7,178
Slide 15: Reconciliation of GAAP Net Income to Core Earnings and Net Core Earnings
Reconciliation of GAAP Net Income to Core Earnings and Net Core Earnings 2Q 2017 1Q 2017 ($ in millions, except share and per share data) Net Income Attributable to Common Stockholders $14.1 $10.4 Adjustments Non-cash equity compensation expense - - Incentive compensation to affiliate - - Depreciati
Slide 16: 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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