Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q1 2018 Earnings Presentation
18 slides from Kkr Real Estate Finance Trust's earnings presentation, May 9, 2018
Slide 1: 1st 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 1st Quarter 2018 Supplemental Information 205 151 200 179 98 172 62 30 59 May 9, 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: 1Q18 Key Highlights
1Q18 Key Highlights • Net income attributable to common stockholders of $23.3 million, or $0.44 per share, up 37% QoQ; Net Core Earnings(1) of $18.9 million, or $0.35 per share, up 10% QoQ • Book value of $19.79 per share for 1Q compared to $19.73 for 4Q17 Financials • Paid 1Q dividend of $0.40 per
Slide 4: Financial Summary
1Q18 Financial Summary Income Statement Balance Sheet ($ in Millions, except per share data) ($ in Millions, except per share data) 1Q18 1Q18 Net Interest Income $21.0 Total Portfolio $2,473.8 Secured Debt Outstanding Face Other Income 9.2 1,287.1 Amount Operating Expenses and Other (6.9) Senior Loa
Slide 5: Recent Operating Performance
Recent Operating Performance • 1Q 2018 Net Income attributable to common stockholders increased to $23.3 million, up 37% QoQ; Net Core Earnings(1) increased to $18.9 million, up 10% QoQ • Book value per share increased to $19.79 in 1Q • Subsequent to quarter end, declared 2Q dividend of $0.43 per sh
Slide 6: Loan Originations
1Q18 Loan Originations Summary of 1Q18 Originations Outstanding Portfolio ($ in Millions) 5 • New loans originated $2,802 Future $329 Funding $411mm • Committed to new loans ($35) Obligations(2) 100% • Senior loans $426 100% • Floating-rate loans +19% $2,474 64% • Weighted average LTV $2,083 • Weigh
Slide 7: Loan Originations – Case Studies
1Q18 Loan Originations – Case Studies Investment St. Paul Office New York Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $76 million $89 million Location St. Paul, MN Westbury, NY Collateral 37-story, 656k SF Class-A office building 195-unit Class-A multifamily r
Slide 8: Loan Originations – Case Studies (cont'd)
1Q18 Loan Originations – Case Studies (cont’d) Investment Seattle Office Orlando Multifamily New York Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $81 million $80 million $86 million Location Seattle, WA Orlando, FL New York, NY 740-un
Slide 9: KREF Portfolio by the Numbers
1Q18 KREF Portfolio by the Numbers • $2.5 billion portfolio comprised of 37 investments • Portfolio weighted average LTV of 67%(1) Geography(2) Investment Type(3) CMBS Mezz 5% 2% Senior Loans 93% Interest Rate Type Fixed 6% Floating 94% Note: Map does not include Midwest Mezzanine portfolio ($5.5 mi
Slide 10: Financing Overview
1Q18 Financing Overview • Total financing capacity of $1.8 billion with $0.5 billion of undrawn capacity • Subsequent to quarter end, closed a $400 million term loan financing facility providing matched-term financing on a non- mark to market and non-recourse basis Summary of Outstanding Financing (
Slide 11: Interest Rate Sensitivity
Interest Rate Sensitivity • KREF benefits in a rising rate environment • 94% 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 $3.0 million or $0.06 per share over the next 12 months(1)(2) Net Interest Income S
Slide 12: Appendix
68 68 70 217 217 218 180 180 182 142 142 145 51 51 53 83 40 79 230 203 227 205 151 200 179 98 172 62 30 59 Appendix 12
Slide 13: Portfolio Details
Portfolio Details Investment Committed Current Principal Future Max Remaining # Investment Location Property Type Net Equity(2) Coupon(4)(5) LTV(4)(7) ($ in millions) Date Principal Amount Amount Funding(3) Term (Yrs)(4)(6) Senior Loans(1) 1 Senior Loan New York, NY Condo (Resi) 8/4/2017 $239.2 $205
Slide 14: Fully Extended Loan Maturities
Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 4.0 years(1) Fully Extended Loan Maturities(1) ($ in Millions) $1,200 $1,095.7 $1,000 $800 $600 $497.9 $389.8 $400 $341.8 $200 $8.0 $18.2 $0 2018 2019 2020 2021 2022 2023 2024 2025 Fully extended maturity (1) Excludes
Slide 15: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) March 31, 2018 December 31, 2017 Assets Cash and cash equivalents $ 23,124 $ 103,120 Restricted cash - 400 Commercial mortgage loans, held-for-investment, net 2,273,190 1,888,510 Equity method investments, at fair value 18,
Slide 16: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) For the Three Months Ended March 31, 2018 December 31, 2017 March 31, 2017 Net Interest Income Interest income $ 31,694 $ 28,385 $ 12,906 Interest expense 10,690 8,632 3,953 Total net interest income 21,004 19,753 8,9
Slide 17: 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 180 180 182 1Q18 4Q17 ($ in thousands, except share and per share data) • Current LIBOR levels influence asset yield and 142 142 145 therefore ROE Net Income Attributable to Common Stockholders $23,280 $17,
Slide 18: 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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