KKR Real Estate Finance Trust Results Presentation Deck
Fourth Quarter and Full Year 2021 Highlights
Financials
Originations
4
Portfolio
Liquidity &
Capitalization
●
●
●
●
●
●
●
●
●
Net income(¹) of $0.59 and $2.21 per diluted share for 4Q and full year 2021, respectively
Distributable Earnings(2) of ($0.05) and $1.63 per diluted share for 4Q and full year 2021, respectively. Distributable earnings is net of $32.9 million, or $0.55
and $0.58 per diluted share, of realized losses on loan write-offs for 4Q and full year 2021, respectively
●
Book Value per Common Share(³) (“BVPS") of $19.37 per share, compared to $19.09 per share in 3Q'21, representing seven consecutive quarters of book
value accretion
Q4 record originations of 18 floating-rate senior loans totaling $1.8 billion with $1.5 billion of initial fundings
Full year 2021 record originations of 37 floating-rate senior loans totaling $4.8 billion with $3.6 billion of initial fundings
Subsequent to year-end, originated six floating-rate senior loans totaling $652.6 million with $433.9 million of initial fundings
$6.8 billion predominantly senior loan portfolio
●
Multifamily and office assets represent 74% of loan portfolio
Weighted average risk rating of 2.9
Received $679.6 million in loan repayments
Completed an accretive underwritten public offering of 5,547,361 common shares at $21.76 per share, resulting in $120.4 million of net proceeds. The offering
was $0.22 per share accretive to BVPS.
In February 2022, priced a $1.0 billion managed multifamily CLO. The CLO is expected to close on or around February 10, 2022 and will provide KREF with
match-term financing on a non-mark-to-market and non-recourse basis, and features a two-year reinvestment period with an 84.75% advance rate at a
weighted average running cost of capital of SOFR + 1.71%, before transaction costs.
Note: Net income attributable to common stockholders per share and Distributable Earnings per share are based on diluted weighted average shares outstanding for the quarter ended December 31, 2021; book value per share is based
on common shares outstanding as of December 31, 2021.
(1) Represents Net Income attributable to common stockholders.
Completed repricing of $297.8 million existing Term Loan B and a $52.2 million add-on, for an aggregate principal amount of $350.0 million. The new Term
Loan B bears interest at L+3.50% and is subject to a LIBOR floor of 0.50%, which is an aggregate improvement of 1.75%.
71% of financing is fully non-mark-to-market and the remaining balance is only mark-to-credit
$528.9 million of available liquidity, including $271.5 million of cash, and $200.0 million undrawn on the corporate revolver
In January 2022, KREF completed an offering of additional 6,210,000 shares of its 6.5% Series A Cumulative Redeemable Preferred Stock at a liquidation
preference of $25.00 per share, resulting in net proceeds of $151.2 million.
(2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP.
(3) Book value per share includes the year-to-date ("YTD") impact of a ($3.3) million, or ($0.05) per common share, non-cash redemption value adjustment to our redeemable Special Non-Voting Preferred Stock (SNVPS'). On October 1,
2021, KREF redeemed its SNVPS for a cash redemption value of $5.1 million, thus eliminating the cumulative negative impact of the SNPVS on KREF's book value.
KKR
REAL ESTATE
FINANCE TRUSTView entire presentation