Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q1 2017 Earnings Presentation
16 slides from Kkr Real Estate Finance Trust's earnings presentation, Jun 14, 2017
Slide 1: KKR Real Estate Finance Trust Inc. 1st Quarter 2017 Supplemental Information
KKR Real Estate Finance Trust Inc. 1st Quarter 2017 Supplemental Information June 14, 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: 1Q17 Key Highlights
1Q17 Key Highlights Net income attributable to common stockholders of $10.4 million or $0.39 per share; Net Core Earnings(1) of $8.9 million or $0.33 per share Financials Paid 1Q dividend of $0.28 per share on April 18, 2017 Declared 2Q dividend of $0.25 per share payable on July 14, 2017 to s
Slide 4: 1Q17 Financial Summary
1Q17 Financial Summary Income Statement Balance Sheet ($ in Millions, except per share data) ($ in Millions, except per share data) 1Q17 1Q17 Net Interest Income $9.0 Total Portfolio $1,079 Other Income 4.8 Facilities Outstanding Face Amount 593 Operating Expenses and Other (3.4) Total Stockholders
Slide 5: 1Q17 Loan Originations
1Q17 Loan Originations Summary of 1Q17 Originations Outstanding Portfolio ($ in Millions) $1,296 3 • New loans originated Future Funding $217 Obligations $0 $291mm • Committed to new loans $1,079 $238 100% • Senior loans $841 100% • Floating-rate loans 71.1% • Weighted average LTV • Weighted average
Slide 6: 1Q17 Loan Originations – Case Studies
1Q17 Loan Originations – Case Studies Investment Austin Multifamily Denver Multifamily Brooklyn Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $73 million Senior Loan $86 million Senior Loan(2) $132 million Senior Loan Location Austin, TX Den
Slide 7: 1Q17 KREF Portfolio by the Numbers
1Q17 KREF Portfolio by the Numbers • $1.1 billion portfolio comprised of 25 investments • Portfolio weighted average LTV of 67%(1) Investment Type(2) Interest Rate Type Mezz Pref. Equity 7% 3% Fixed CMBS 12% 10% Floating Senior Loans 88% 80% Property Type(3) Geography(3) Hospitality 4% Industrial 7%
Slide 8: Financing Overview
Financing Overview • Total financing capacity of $1.5 billion with $907 million of undrawn capacity • Subsequent to quarter end, upsized Wells Fargo term facility by $250 million and extended maturity to 2022 on a fully-extended basis and entered into a $75 million corporate revolving credit facilit
Slide 9: Interest Rate Sensitivity
Interest Rate Sensitivity • KREF benefits in a rising rate environment • 88% 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(1) over the next 12 months Net Interest Income Sensitivity to LIBOR In
Slide 10: Appendix
Appendix KKR 10 REAL ESTATE FINANCE TRUST
Slide 11: Portfolio Details
Portfolio Details Max Committed Current Remaining Property Investment Principal Principal Net Term # Investment Location Type Date Amount Amount Equity(2) Coupon(3)(4) (Yrs)(3)(5) LTV(3)(6) Senior Loans(1) 1 Senior Loan Portland, OR Retail 10/26/2015 $177.0 $119.8 $43.5 L + 5.0% 3.6 61% 2 Senior Loa
Slide 12: Fully Extended Loan Maturities
Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 4.5 years(1) Fully Extended Loan Maturities(1) ($ in Millions) $600 $511.8 $500 $400 $300 $261.2 $200 $171.3 $100 $18.2 $4.4 $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) March 31, 2017 December 31, 2016 Assets Cash and cash equivalents $ 153,624 $ 96,189 Restricted cash and cash equivalents 500 157 Commercial mortgage loans, held-for-investment, net 909,903 674,596 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 March 31, 2017 March 31, 2016 Net Interest Income Interest income $ 12,906 $ 6,269 Interest expense 3,953 1,150 Total net interest income 8,953 5,119 Other Income Change in net assets rel
Slide 15: Reconciliation of GAAP Net Income to Core Earnings
Reconciliation of GAAP Net Income to Core Earnings 1Q 2017 ($ in millions, except per share data) Net Income Attributable to Common Stockholders $10.4 Adjustments Non-cash equity compensation expense - Incentive compensation to affiliate - Depreciation and amortization - Unrealized (gains) or losses
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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