Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q1 2025 Earnings Presentation
29 slides from Kkr Real Estate Finance Trust's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Supplemental Information
First Quarter 2025 Supplemental Information APRIL 23, 2025
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: KKR Real Estate Finance Trust Inc. Overview
KKR Real Estate Finance Trust Inc. Overview KREF’s Manager Fully Best In Class Portfolio Conservative Balance Sheet Integrated with KKR $6.1 B $8.3 B 15% Loan Portfolio Financing Capacity KKR Ownership in KREF 100% 61% 78% $638 B (2) Senior Loans Multifamily & Fully Non-Mark-to-Market Global AUM(4)
Slide 4: First Quarter 2025 Highlights
First Quarter 2025 Highlights • 1Q 2025 Net loss(1) of ($0.15) per diluted share (includes a CECL provision of $25 million, or ($0.36) per diluted share) • 1Q 2025 Distributable Earnings(2) of $0.25 per diluted share Financials • Book Value per Share (“BVPS”) of $14.44 per share (includes a CECL all
Slide 5: 1Q'25 Financial Summary
1Q'25 Financial Summary Income Statement Balance Sheet ($ in Millions) 1Q'25 ($ in Millions) 1Q'25 Net interest income $31.3 Commercial real estate loans, net $5,966.7 (2) Real estate assets 401.9 Other income 3.9 Cash 106.4 Provision for credit losses (24.9) Other 79.6 Operating expenses (16.1) Tot
Slide 6: Recent Operating Performance
Recent Operating Performance Net Income and Distributable Earnings Dividends and Book Value Per Share ($ in Millions) 1Q'24 4Q'24 1Q'25 1Q'24 4Q'24 1Q'25 Net income (loss): Dividend per share: ($8.7) $14.6 ($10.6) $0.25 $0.25 $0.25 Distributable earnings (loss): Dividend yield on book value per shar
Slide 7: 1Q'25 Loan Originations – Case Studies
1Q'25 Loan Originations – Case Studies Investment National Multifamily Phoenix Multifamily Nashville Hospitality Delray Beach Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $149 million(1) $79 million $76 millio
Slide 8: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Total Portfolio(1) Investment Type Interest Rate Type ($ in Millions) $7,916 Fixed $7,752 1% $6,792 $6,495 $6,272 Senior Loans 100% Floating 99% Property Type 4Q'21 4Q'22 4Q'23 4Q'24 1Q'25 Other (3) Hospitality Geography 4% 5% Life Science (2) 4% 12% Multifamily 48
Slide 9: Portfolio Credit Quality Overview
Portfolio Credit Quality Overview Collected 100% of interest payments due on the loan portfolio in 1Q'25 Loan-to-Value(1) Risk Rating Distribution Loan 0 0 47 2 2 Count 92% 25% 26% 22% 23% 4Q '24 4% 0% 0% 3% 5% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 1 2 3 4 5 (2) (2) Weighted Average LTV : 65%
Slide 10: KREF Life Science Loan Portfolio Overview
KREF Life Science Loan Portfolio Overview 100% of KREF's loan exposure is located in the top two Life Science markets Year Built Loan Max Development Status(3) Investment Loan Development or Asset Committed Outstanding Net per Term N/A Location MSA Date Purpose Status Renovated Quality Principal Pri
Slide 11: Watch List Migrations Quarter-over-Quarter
Watch List Migrations Quarter-over-Quarter In 1Q'25, KREF had two risk rating downgrades, including one new addition to the watch list 4Q'24 Watch List Intra-Quarter Activity 1Q'25 Watch List Total Principal: $306 million Risk Rating: 5 Total Principal: $392 million Minneapolis Office Minneapolis Of
Slide 12: Case Studies: Watch List Loans
Case Studies: Watch List Loans Investment Minneapolis Office West Hollywood Multifamily Raleigh Multifamily Loan Type Floating-Rate Senior Loan(1) Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date November 2017 January 2022 April 2022 Two Class-A Office Buildings Collateral 37-unit
Slide 13: Case Studies: Watch List Loans cont.
Case Studies: Watch List Loans cont. Investment Boston Life Science San Diego Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date April 2021 October 2021 Two Buildings Collateral 231-unit Class-A Multifamily totaling 482k SF Loan Purpose Refinance Refinance Loca
Slide 14: Overview of Real Estate Assets
Overview of Real Estate Assets Proforma equity(1) of approximately $389 million ($5.71 per share) was held in our Real Estate Assets Real Estate Owned Square Footage/ Investment Amount(2) Investment Amount Location Property Type Acquisition Date Units ($ in millions) per Square Foot/ Unit Mountain V
Slide 15: Financing Overview: 78% Non-Mark-To-Market
Financing Overview: 78% Non-Mark-To-Market Diversified financing sources totaling $8.3 billion with $3.1 billion of undrawn capacity Summary of Outstanding Financing Leverage Ratios Outstanding Maximum Weighted Avg. Advance Non- ($ in Millions) Principal Capacity Coupon(1) Rate MTM Amount (2) Term C
Slide 16: Financing Overview: Term Credit Facilities
Financing Overview: Term Credit Facilities ($ in Millions) Total or Counterparty Weighted Average Drawn $761 $270 $109 $1,140 Capacity $1,000 $600 $400 $2,000 Collateral: Loans / Principal 10 Loans / $1,093 7 Loans / $398 4 Loans / $204 21 Loans / $1,695 Balance Final Stated Maturity(1) September 20
Slide 17: Liquidity Overview
Liquidity Overview In addition to the available liquidity below, KREF had $350 million of total unencumbered assets(1) as of March 31, 2025 Sources of Available Liquidity (4) ($ in Millions) $800 $700 $44 $600 $500 $400 $570 $720 $676 $300 $200 $100 $106 $106 $0 Cash Undrawn Approved and Undrawn Tot
Slide 18: Earnings Sensitivity to Change in SOFR
Earnings Sensitivity to Change in SOFR 99% floating-rate loan portfolio indexed to Term SOFR Quarterly Net Interest Income Per Share Sensitivity to Change in Market Rates Term SOFR = 4.32% ($ Impact Per Share) As of March 31, 2025 0.05 0.04 $0.03 0.03 0.02 $0.02 0.01 $0.00 0.00 (0.01) (0.02) ($0.02)
Slide 19: Appendix
Appendix KREF
Slide 20: 1Q'25 Portfolio Details
1Q'25 Portfolio Details ($ in Millions) Committed Outstanding Loan / Investment Investment Total Whole Principal / Principal / Net Max Remaining Origination Risk # Investment(1) Location Property Type Coupon(4)(5) Per Date Loan(2) Investment Investment Equity(3) Term (Yrs)(4)(6) LTV(4)(8) Rating SF
Slide 21: 1Q'25 Portfolio Details
1Q'25 Portfolio Details ($ in Millions) Committed Outstanding Loan / Investment Investment Total Whole Principal / Principal / Net Max Remaining Origination Risk # Investment(1) Location Property Type Coupon(4)(5) Per Date Loan(2) Investment Investment Equity(3) Term (Yrs)(4)(6) LTV(4)(8) Rating SF
Slide 22: 1Q'25 Portfolio Details
1Q'25 Portfolio Details (1) Our total portfolio represents the current principal amount or investment amount on senior and mezzanine loans, real estate assets and other investments. Excludes loans that were fully written off. For Senior Loan 7, the total whole loan is $199.4 million, including (i) a
Slide 23: 1Q'25 Portfolio Activity
1Q'25 Portfolio Activity Portfolio Funding Activity ($ in Millions) Future Funding Obligations(1) REO & Equity Method Investments (1) Future funding obligations are generally contingent upon certain events and may not result in investment by us Loan Portfolio Principal 23
Slide 24: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 2.0 years Fully Extended Loan Maturities ($ in Millions) $3,500 $3,000 $2,864 $2,500 $2,000 $1,878 $1,500 $1,000 $500 $504 $479 $24 $374 $0 2025 2026 2027 2028 2029 2030 Note: Based on current principal amount. Excludes
Slide 25: KREF Debt Maturities
KREF Debt Maturities No final facility maturities until 2026 and no corporate debt due until 2030 The table below may represent estimated earlier repayments based on the maturity dates of underlying loan collateral Upcoming Debt Maturities by Year ($ in Millions) $1,500 $1,414 $1,250 $1,000 $857 $75
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) March 31, 2025 December 31, 2024 Assets Cash and cash equivalents $ 106,411 $ 104,933 Commercial real estate loans, held-for-investment 6,108,987 5,888,622 Less: Allowance for credit losses (142,337) (117,103) Commercial re
Slide 27: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net Interest Income Interest income $ 113,967 $ 123,610 $ 151,620 Interest expense 82,626 88,476 112,476 Total net interest income 31,341 35,134 39,14
Slide 28: Reconciliation of GAAP Net Income (Loss) to Distributable Earnings (Loss)
Reconciliation of GAAP Net Income (Loss) to Distributable Earnings (Loss) (in thousands - except share and per share data) Three Months Ended Per Diluted December 31, Per Diluted Per Diluted March 31, 2025 Share(1) 2024 Share(1) March 31, 2024 Share(1) Net Income (Loss) Attributable to Common Stockh
Slide 29: Key Definitions
Key Definitions “Distributable Earnings (Loss)": The Company defines Distributable Earnings as net income (loss) attributable to common stockholders or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GA
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