NEW YORK--(BUSINESS WIRE)--KKR Real Estate Finance Trust Inc. (the “Company” or “KREF”) (NYSE:KREF) today announced the Company closed two floating-rate senior loans totaling $602.5 million since the May 1st earnings release, resulting in current second quarter 2019 originations of $785.1 million across three senior loans. Year-to-date, KREF has originated five senior loans totaling $999.1 million. As of today, the outstanding funded portfolio is $4.3 billion.
Recent Investment Activity
In May 2019, KREF closed a $386.0 million floating-rate senior loan secured by 857-units, across two luxury multifamily properties located in Brooklyn, NY. The loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+2.7% and has an appraised loan-to-value (“LTV”) of approximately 52%.
In addition, in May 2019, KREF closed a $216.5 million floating-rate senior loan secured by a 1,070-unit, three property class-A multifamily portfolio located in Atlanta, GA, Birmingham, AL and Fort Worth, TX. The loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+3.5% and has an appraised LTV of approximately 74%.
The following table summarizes key features of the two recently closed floating-rate senior loan transactions ($ in thousands):
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| Month | Maximum | Initial Face | Interest | ||||||||||||||||||||||
| Description/Location | Property Type | Originated | Face Amount | Amount Funded | Rate(A) | Maturity Date(B) | LTV | ||||||||||||||||||
| Senior Loan, Brooklyn, NY | Multifamily | May 2019 | $ | 386,000 | $ | 324,400 | L + 2.7% | June 2024 | 52 | % | |||||||||||||||
| Senior Loan, Various | Multifamily | May 2019 | 216,500 | 171,850 | L + 3.5 | June 2024 | 74 | ||||||||||||||||||
| Total/Weighted Average | $ | 602,500 | $ | 496,250 | L + 3.0% | 60 | % | ||||||||||||||||||
(A) Floating rate based on one-month USD LIBOR
(B) Maturity date
assumes all extension options are exercised.
About KREF
KKR Real Estate Finance Trust Inc. (NYSE:KREF) is a real estate finance company that focuses primarily on originating and acquiring senior loans secured by commercial real estate properties. KREF is externally managed and advised by an affiliate of KKR & Co. Inc. For additional information about KREF, please visit its website at www.kkrreit.com.
Forward-Looking Statements
This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company’s current views with respect to, among other things, its future operations and financial performance. The forward-looking statements are based on the Company’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control, including those described under Part I—Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in the Company’s periodic filings with the SEC. Accordingly, actual outcomes or results may differ materially from those indicated in this release. All forward looking statements in this release speak only as of the date of this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.
Definitions
“Loan-to-value ratio”: Generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated.
