NEW YORK--(BUSINESS WIRE)--KKR Real Estate Finance Trust Inc. (NYSE:KREF) today announced the Company closed two floating-rate senior loan transactions totaling $378.7 million subsequent to the first quarter conference call in May. Year-to-date, KREF has originated eight senior loans totaling $1,140.1 million, resulting in a $3.0 billion portfolio.
Recent Investment Activity
In May 2018, KREF closed a $213.7 million floating-rate senior loan secured by a 474,000 square foot, class-B+ office building in Boston, MA. The loan has a three-year initial term with two one-year extension options, carries a coupon of LIBOR+2.40% and has an appraised loan-to-value (“LTV”) of approximately 69%.
In June 2018, KREF closed a $165.0 million floating-rate senior loan secured by 974,000 square foot, class-B+ office buildings located in Philadelphia, PA. The loan has a two-year initial term with three one-year extension options, carries a coupon of LIBOR+2.45% and has an LTV of approximately 71%.
The weighted average underwritten internal rate of return of these two loans is 10.6%.
Commenting on the recent activity, Chris Lee and Matt Salem, Co-Chief Executive Officers of KREF, stated: “These two transactions are consistent with our strategy of lending in major markets to well-capitalized sponsors. Year to date, we have originated more than $1.1 billion of senior loans, bringing our total originations for the last twelve months ended June 19, 2018 to $2.1 billion of senior loans, a 109% increase over the corresponding period in 2017.”
The following table summarizes key features of the two recently closed floating-rate senior loan transactions ($ in thousands):
| Description/Location | Property Type | Month Originated | Maximum Face Amount | Initial Face Amount Funded | Interest Rate(A) | Maturity Date(B) | LTV | ||||||||||
| Senior Loan, Boston, MA | Office | May 2018 | $ | 213,713 | $ | 195,380 | L + 2.4% | April 2023 | 69 | % | |||||||
| Senior Loan, Philadelphia, PA | Office | June 2018 | 165,000 | 140,000 | L + 2.5 | July 2023 | 71 | ||||||||||
| Total/Weighted Average | $ | 378,713 | $ | 335,380 | L + 2.4% | 70 | % | ||||||||||
(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. L.P. For additional information about KREF, please visit its website at www.kkrreit.com.
