NEW YORK--(BUSINESS WIRE)--KKR Real Estate Finance Trust Inc. (NYSE:KREF) today announced the Company closed two floating-rate senior loans totaling $265.0 million in September 2018, resulting in total third quarter 2018 commitments of $680.5 million across four loans. Year-to-date, KREF has originated twelve senior loans totaling $1.8 billion, resulting in a $3.3 billion funded portfolio as of quarter end.

Recent Investment Activity

In September 2018, KREF closed a $172.0 million floating-rate senior loan secured by two class-A office buildings totaling 343,000 square feet located in Seattle, WA. The loan has a two-year initial term with three one-year extension options, carries a coupon of LIBOR+3.7% and has an appraised loan-to-value (“LTV”) of approximately 65%.

In September 2018, KREF closed a $93.0 million floating-rate senior loan secured by an 18-story, 95% occupied, class-A multifamily property located in Seattle, WA. The loan has a two-year initial term with three one-year extension options, carries a coupon of LIBOR+2.6% and has an appraised LTV of approximately 80%.

The weighted average underwritten internal rate of return of these two loans is 12.8%.

Commenting on the recent activity, Chris Lee and Matt Salem, Co-Chief Executive Officers of KREF, stated: “The third quarter was the second most active origination quarter in KREF’s history, with four new loan originations totaling $681 million. In addition, we received $281 million of repayments during the quarter. This includes a $125 million repayment of a senior loan secured by a retail property in Brooklyn and a $17 million repayment of a mezzanine loan secured by a retail property in Chicago, reducing the retail exposure in the portfolio to 4% as of quarter end. In the first nine months of 2018, we have originated $1.8 billion of loans, bringing our total originations for the last twelve months ended September 30, 2018 to $2.2 billion of senior loans, a 76% 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):

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.