Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q2 2018 Earnings Presentation
17 slides from Kkr Real Estate Finance Trust's earnings presentation, Aug 6, 2018
Slide 1: 2nd Quarter 2018 Supplemental Information
68 68 70 217 217 218 180 180 182 142 142 145 51 51 53 83 40 79 KKR Real Estate Finance Trust Inc. 230 203 227 2nd Quarter 2018 Supplemental Information 205 151 200 179 98 172 62 30 59 August 6, 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: 2Q18 Key Highlights
2Q18 Key Highlights • Net Income(1) of $23.5 million, or $0.44 per share • Net Core Earnings(2) of $37.5 million, or $0.71 per share. $19.4 million, or $0.37 per share, of Net Core Earnings increase was related to the gain on sale Financials of CMBS B-Piece investments • Book value of $19.82 per sha
Slide 4: Financial Summary
2Q18 Financial Summary Income Statement Balance Sheet ($ in Millions, except per share data) ($ in Millions, except per share data) 2Q18 2Q18 Net Interest Income $21.6 Total Portfolio $2,960.2 Secured Debt Outstanding Face Other Income 8.0 1,192.0 Amount Operating Expenses and Other (6.1) Convertibl
Slide 5: Recent Operating Performance
Recent Operating Performance • 2Q 2018 Net Income attributable to common stockholders increased to $23.5 million, up 1% QoQ; Net Core Earnings(1) increased to $37.5 million, up 98% QoQ. $19.4 million, or $0.37 per share, of Net Core Earnings increase was related to the gain on sale of CMBS B-Piece i
Slide 6: Loan Originations
2Q18 Loan Originations Summary of 2Q18 Originations Outstanding Portfolio ($ in Millions) 3 • New loans originated $3,401 $729mm • Committed to new loans Future $441 ($15) ($95) Funding Obligations(2) 100% • Senior loans $596 100% • Floating-rate loans +20% 70% • Weighted average LTV $2,960 $2,474 •
Slide 7: Loan Originations – Case Studies
2Q18 Loan Originations – Case Studies Investment Queens Office Boston Office Philadelphia Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $350 million $214 million $165 million Location Queens, NY Boston, MA Philadelphia, PA Collateral 829k SF
Slide 8: KREF Portfolio by the Numbers
2Q18 KREF Portfolio by the Numbers • $3.0 billion portfolio comprised of 37 investments • Portfolio weighted average LTV of 67%(1) Geography(2) Investment Type(3) CMBS Mezz 1% 1% Senior Loans 97% Interest Rate Type Fixed 2% Floating 98% Note: Map does not include Midwest Mezzanine portfolio ($5.5 mi
Slide 9: Financing Overview
2Q18 Financing Overview • Total financing capacity of $2.6 billion(1) with $0.8 billion of undrawn capacity • Entered into $600 million term loan financing facility providing matched-term financing on a non-mark to market and non- recourse basis • Issued $144 million of 6.125% convertible senior not
Slide 10: Interest Rate Sensitivity
Interest Rate Sensitivity • KREF benefits in a rising rate environment • 98% 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 $3.5 million or $0.07 per share over the next 12 months(1)(2) Net Interest Income S
Slide 11: Appendix
68 68 70 217 217 218 180 180 182 142 142 145 51 51 53 83 40 79 230 203 227 205 151 200 179 98 172 62 30 59 Appendix 11
Slide 12: Portfolio Details
Portfolio Details Committed Current Future Max Remaining # Investment($ in millions) Location Property Type Investment Date Net Equity(2) Coupon(4)(5) LTV(4)(7) Principal Amount Principal Amount Funding(3) Term (Yrs)(4)(6) Senior Loans(1) 1 Senior Loan Queens, NY Office 5/9/2018 $350.0 $211.7 $107.5
Slide 13: Fully Extended Loan Maturities
Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 4.0 years(1) Fully Extended Loan Maturities(1) ($ in Millions) (1) Excludes CMBS and RECOP; includes non-consolidated senior interests. 13
Slide 14: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) June 30, 2018 December 31, 2017 Assets Cash and cash equivalents $ 40,762 $ 103,120 Restricted cash - 400 Commercial mortgage loans, held-for-investment, net 2,844,702 1,888,510 Equity method investments, at fair value 22,6
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 Six Months Ended June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Net Interest Income Interest income $ 40,363 $ 31,694 $ 17,446 $ 72,057 $ 30,352 Interest expe
Slide 16: Reconciliation of GAAP Net Income to Core Earnings and Net Core Earnings
68 68 70 Reconciliation of GAAP Net Income to Core Earnings and Net 217 217 218 Core Earnings 2Q18 1Q18 4Q17 3Q17 180 180 182 ($ in thousands, except share and per share data) • Current LIBOR levels influence asset yield and 142 142 145 Net Income Attributable to Common Stockholders $23,483 $23,280
Slide 17: Key Definitions
68 68 70 217 217 218 Key Definitions 180 180 182 • "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 an
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