KKR Real Estate Finance Trust (KREF)

Jack Switala IR
Matthew Salem CEO
Patrick Mattson COO & President
Jade Rahmani KBW
Steven Delaney JMP Securities
Stephen Laws Raymond James & Associates
Donald Fandetti Wells Fargo Securities
Richard Shane JPMorgan Chase & Co.
Timothy Hayes BTIG
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good morning, and welcome to the KKR Real Estate Finance Trust Inc.

Second Quarter 2021 Financial Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Jack Switala. Please go ahead.

Jack Switala

operator. you, Thank KKR the the Finance earnings Trust Welcome quarter Real of for second XXXX. call to Estate We hope that safe all of you and and your healthy. families are

in reconciled I'm call, I by release refer financial of in As GAAP on Patrick our portion cautionary statements. we for supplementary which most events call to Mattson; operator forward-looking mentioned, will the are CFO, website. to future is related to which to COO, performance. Switala. Relations factors the measures Mostafa remind guarantee certain our will Nagaty. that or this President our our and our non-GAAP recently Investor the statements, Please and like filed earnings not to on CEO, our these presentation, which Today, also call are and contain Matt would the Salem; XX-Q available both certain figures on Jack of do joined This the everyone refer

turn the results. Before our I a of call provide Matt, I recap brief over to will

as our which XX. offering value Book costs in performance. compared XXXX second quarter $X.XX rate cumulative XXXX, preferred $X.XX with as growth a the $XX.XX, income offering driven share of share or and CECL asset impact March from $XX.XX to million per included share benefits earnings the as the share, of Distributable incurred the strong per of quarter were in-place per from of continued stock or quarter GAAP this million $X.XX had to and includes per provision. per share which $X.XX $XX.X $X.X floors per of connection a lower net of increased CECL benefit during $XX.X by million we XX, or $X.XX For share, our portfolio, June

I we of on paid would of $X.XX mid-July, that, dividend annualized X%. dividend closing a second yield Based price, to yesterday's share to Matt. call turn quarter. with reflects the to an With respect cash over the now Finally, like the per in

Matthew Salem

joining Thank you, the today. Jack. franchise Good the In morning, power for quarter, $XXX to harnessed KKR originate for everyone, second thank the origination of the call you X loans million. and we

an have which either in under exclusivity have quarter or closed $XXX approximately to loans, pipeline million subsequent We of additional end.

another of the results of delivered quarter also financial covering X.Xx. distributable $X.XX earnings We dividend outstanding with share, by $X.XX a

is from earnings strong LIBOR credit flagship as existing today's and established continue its the position inside strategy real In floors platform. a loan senior growth. manager benefit transitional KREF global to estate with asset net estate benefiting performance, Our active of origination an portfolio from environment, commercial real

credit market grown views estate from We real estate that have real global property connectivity team our unique is equity access market meaningfully. information supporting to and macro a partners real-time in and our This economic the from team. has level franchise

to elevated For progress sponsor's comprised XX XXXX, perspective, professionals estate see to business fourth to repayments today. the critical good investment continue end we will at our as lead of compared the expect of which and real credit This we be on franchise XX engine origination plans, third our quarters. in was to

same: the remains by senior focus on high-quality investment sponsors. institutional Our real estate owned loans

billion loans loan family rental million, loans originations single loans, over These Net IRR, XX. quarter and were returns of X multifamily $XXX X housing Our in student included record portfolio an our line fundings and loans second in underwritten weighted office, as of and pre-COVID. quarter X industrial $XXX totaling the loan was $X.X with grew size X average June of sectors. double-digit at totaling low attractive X to this each million,

or million $XXX to either loans approximately under of subsequent closed with robust exclusivity quarter remains pipeline Our end.

from capitalize to time, our be in our At newer and same in certain on we select such the on in has of driving A loans We life of opportunities multifamily secured a sector, committed million, office. as market environment. an need this a increase our industrial properties. historical segments benefited segment closed to tenant active pipeline quarter science, loan attractive space. for constructive demand, are And for we amount X desire continue which today's In by $XXX new the Class reflects lab

largest completed to developments. a loan industrial has Our XXX this who quarter sponsor was over

highest As operators. always, and we will owners quality target the

industrial where have sector. Our own the industrial in estate feet across in funding industrial future real our development, differentiated square their there's relationships focus activity With with market for outcomes million knowledge creates expertise, we than had we on and more Access equity, focus aligns to KREF. our XX the past.

in of those next to industrial we the origination construction few quarters. volumes commitments Given the contribute over sector, unfunded expect simplicity the to

X% portfolio or portfolio quarters XX% the opportunity with leverage senior service net which to $XXX.X Retail the million of X.X% properties. loans cost is take capital transitional improved previous This should predominantly Overall funded of raised over in To of grow basis. stock on proceeds rate remains consistent portfolio, by portfolio. of strong, a with multifamily lead of office fixed-for-life and at perpetual of loans Our floating quarter. performance collected of the we the underweight and time. April. on operating represent comprised over second portfolio institutional to now comprised continue clients Industrial set, comprises of current the lighter, is in composition the XX% secured preferred just opportunities, growing portfolio interest be and loans. of X% permanent to support our a remains advantage us allows market our of

on $XXX million we May, completed our behalf of Additionally, KKR. manager, in approximately offering secondary early an

stock, across we quarter originations, has this shareholder at goals the is strong largest be the long out and in in float. and commitment portfolio the term. to we times the added skin performance trading achieved over KKR to level KREF our meaningful of shareholder and multiple available remain summary, largest our earnings. XX% our of increase peers, in expect another continues the In KKR This volume to to been sale with ownership. our of game One

with as the environment Patrick. XXXX. origination we Our franchise broader turn in scaled half I'll management into of origination relationship and us this call to and and With the our over head benefit repayment asset KKR should that, active second

Patrick Mattson

Good everyone. Matt. you, Thank morning,

last end, fully and of of As a remains the the which subject the months. remaining market-leading marks. quarter non-mark-to-market, similar is the has the financing XX% we only balance at financing had pandemic, well to is served asset XX% over our onset of credit This XX to us mix

our total to slightly ratio X.Xx As respectively. ratio X.Xx of quarter end, leverage debt-to-equity and dropped and

cost at in $XXX of the X.X%. Following raise the perpetual a net in of had fixed-for-life million April proceeds, success preferred we stock

on and We The financing. billion Friday. to at this conjunction a The a with with XX.XX% our nonrecourse In last the our deal expenses. financing rate but investment-grade non-mark-to-market a on offering the we'll the record and a This our transaction, billion as transaction we CLO, manager, larger financing new matched aggregate week, market-leading loan of amortized received, features of basis. weighted cost a portfolio average period first and call X-year by advance of achieve brand, combination attractive XX% running high-quality will term of on with new an size this us cost to optimizing plus well amount capital capital. the focus of to before $X The CLO upsize $X.X priced positioned us continue was reinvestment allowing announced CRE CLO. a X.X% LIBOR track of increase

current risk and current have last portfolio past, rating discussed robust we the risk quarter. rated process, assign Notably, have the every The watch last composition on in the weighted asset from changes quarterly the rating X-point list in we XX% loan rating. the X better, now a a with is risk As evaluate loans to average review to we X.X a quarter. of are in up of our of quarter. portfolio no were consistent There the second or slightly risk scale

nicely second which However, on positive the quarter. On seeing XX% lead to in occupancy New the up ticked assets. rates in In first in to condo we our loan, York we occupancy hospitality quarter, improving are pay saw properties, in million in other to XX% rates downs quarter our trends the momentum $XX.X second loan. credit of relative Brooklyn may

Our next sale to is approaching their to process. allow the sponsor Queens will finalize short-term and a provide likely maturity extension most its industrial loan

reserves earnings, approximately projections $XXX from current quarter. a our activity flow value. credit always and GAAP repayments half are expectation would difficult as If we reminder, in have distributable remains in the our net the elevated at billion of should decrease of in-place to respect but loss benefit the we while floors and will quarter. portfolio $X in for to to impact event repayment the and new portfolio. million a interest In through As CECL And our KREF predict second year, term, net is loans received LIBOR. meaningful our near transitions with repayments second adequate with and does anticipate elevated a LIBOR around or a continue income to it's it will We we watch book the believe the not margins. broader incur spot list the to each This loans crystallized, certainty, effective

year, million. originations elevated strong and In the This another liquidity a $XXX our potential a corporate to million and of revolver elevated start $X.X We in the strong X.Xx. capitalize over we compares in exclusivity Robust well light were $X.XX $XXX end. subsequent distributable XXXX. closed to totaling investment $XXX earnings million under share, available quarter across which dividend our repayments to of cash the additional $X of position pipeline and half with at opportunities. of to $XXX billion, to feel per of growing the quarter $X.XX us. the portfolio on of grew with X loans of liquidity total by the In approximately covering finished billion pipeline capacity $XXX included record KREF quarter million Finally, an second summary, of undrawn position million positioned the for

stock us Thank Lastly, issuance, today. for we preferred portfolio perpetual positions you leverage. joining adding operating for improved completed KREF and an permanent capital growth inaugural that

happy your we're to take Now questions.


of our And from Instructions]. Jade will come [Operator first Rahmani question KBW.

Jade Rahmani

the detailed with a distributable in current XX% well Starting elevated expectations you your you which dividend, the be margin. would as running the time over And interest mentioned as mentioned normalization Then commentary. regarding income ahead net appreciate of dividend. EPS the repayments,

an a there once increase So And the would is year could I be be there for in - excess dividend? room could if normalize, XXXX, that was there were distributable for if expectation dividend? it think, your you be special earnings, this wondering there things

Matthew Salem

dividend. appreciate we that Matt. just Obviously, it's say readjust call, current we'll meeting dividend. rate the target thank now, I the the we're given think current And is quarters Jade, especially you the I'd see question. now, trying interest you future we from our low after right and everything for the I with to - the still board. focused joining But on environment, meet

Jade Rahmani

And excess distributable based been a on has special there's where require retaxable earnings EPS might think do you running, dividend? that

Matthew Salem

point. focused We're a Not on not at this special really dividend.

of number year a that on there's but the factors that yet. certainly think as the into we'll the focused I with we meet of consideration take haven't board, end towards

Jade Rahmani

of The fourth and repayments for $X the prepayment quarter early would produce income? third in billion quarter, each you the that expect quarter

Matthew Salem

- the I before to OID some we'll we have mean, We'll have pull maturity, prepaying extent the on their expect. which initial they're forward

place, other So that can of them have little that penalties a of get OID. through generate in may or you Most protection more little their we call a have income. bit will bit prepayment run but

off. exact drive can pays that earnings. day originate yes, loan. The we of loan So don't a Obviously,

So there'll that repayment up with be interim and cash new our schedule in meet originations. heavy with drag we some as ramp associated the a

Jade Rahmani

next your just months? for What's loan? Portland on few you update loan Lastly, the an the credit. expectation over that give on retail Could

Matthew Salem

Yes. to. Happy

to quarter good making we phase progress of and next come we're to with broader where back with next to of there that And next it working hope our kind a think I the update the on investment. as stand. relates sponsor we goal, you

on tuned stay that one. So

Jade Rahmani

status? has the say So what through gone you property is next current sponsor, foreclosure? the Or

Matthew Salem


Jade Rahmani

on nonaccrual. I know it's

Matthew Salem

right discussions been foreclosed middle on taken That, status. the not we're REO. it's in of has all No, to now. same those and It


Steve of Delaney next comes question JMP The from Securities.

Steven Delaney

been Patrick, was and through and so with much economic some wondering, the Matt have we've shifts with highlighted. things and demographic I that COVID

sponsors flowing capital geographic that side there the to, As specifically? type any your equity are what is equity And - your lending group, how you seeing definitive into and number markets then of you're real from that markets shifts estate are any it dramatic on what we where of from like just the the in is that? plates And kind and not sense side, going? It's other for license real us about things give Maybe the the this. where equity? hear a money is Texas estate is one, going

Matthew Salem

I thank joining Sure, it's for us. take question and the Yes. can Steve, Matt. that, you

the dislocated think things in has commentary about I good and in the still. will the just before the markets whether those we've on that real you're we're acceleration and is very that if big did, think you accelerated, COVID. certainly, continue think some leasing it's to southeast again, the market. think geographic velocity quarter, I multifamily it focus it's in suggest. accelerated think cities. put been those sit asking, a I of some pretty and think and tangible. it and that And question what alongside COVID the particularly you I on active get good, estate into the there pretty markets would you tech theme perspective, it's been lending real-time and growth but certainly it some see in that the And it is I office. underwrite markets, very mean to was mean our And seen we capital from every that of information able pronounced. powerful. being or I in And very very I deals the And equity side market together we of going power as some

Steven Delaney

all Are aren't coming that tongue? sleeper cities there - you hear places? those tip of Austin, the markets any down, emerging maybe that second-tier Denver we see everybody's markets in maybe and there Are right, Phoenix any on and that about

Matthew Salem

is second-tier growth I I And are obviously I Southern area. particularly but but Charlotte, again, similar mean mean, Florida a the Florida not that that's markets, another well, would mean, call Charlotte obvious. theme pre-COVID, city, as nothing say I markets. I those wouldn't the strong

Steven Delaney

non-gateway than term Yes, a I little the them better. should use rather describe probably

to half portfolio then over year. about billion just commentary sound We $X.X at And that the Okay. Does that model about June essentially I the just closings. close, seems the the guys? reasonable we portfolio. and mean, based second to flat should me on were you comments pipeline the to it a of

Patrick Mattson

That's Patrick. it's Steve, right.

the I that that, think ability that to of that capacity be match think our repayments and we're area $X course about for here we assuming as the billion we're in the origination size. our going and to portfolio

Steven Delaney

it understand that we months. I lumpy be through it. month-to-month Got Yes. can X the in as next go


The Raymond comes next question from of Stephen Laws James.

Stephen Laws

spot good a me for question, Steve's on actually. follow-up To

to guess, X that you capital the with to we I redeploying mean, the income I can the you about interest we don't using curious touch I'm leverage quarter anticipated make quarter? overestimate on take over drag? over roughly that? think Or average I Does sure of capital, end As - drag spot would turn the or next through months? just my think portfolio, Patrick, about cash it I what how want cash X/X leverage. weeks how turning should term X

Patrick Mattson

think Steve, that's thanks question. for the I Yes, right.

turnover. looked I at of if think a you of highlight had lot trying what is, the haven't we quarters, couple we're to past

collecting of robust a here. pretty portfolio size full benefit quarter's gotten the we've a on So interest

to is or when come. those have It drag. right, some repayments half, amount unreasonable to so wouldn't some a think be we between there about of month the be gap, of going sort As closings new latter and of

so it to because really something. difficult certainly on it, we it's expect be lag And would quantify between there depends the to it but time

of amount I in it about thinking you're when a standpoint, some drag. certainly factor would from modeling So

Stephen Laws

add to I are Great. the think, remarks, you any the a being That's helpful. that the talk And prepared the hit close can that going on about we QX? but would quarter. it On FLX the I onetime around would distributable number give your transaction go then back call? - CLO you called, Patrick, earnings, into comments on number that in in XXXX, expenses us can for CLO, expenses think assume to will I Onetime, the

Patrick Mattson

as those have the Steve, all financing through. been it relates of Sure. to FLX transaction, costs deferred amortized

to is, transaction will the the when transaction There's a for have amortized didn't get this the we that be closed has So upon be And from factored The quarter that will - and calling to closed first in. only no the closing, set that of third in costs need drag nothing when need be thing any accelerated. happen will we actually quarter, incur deal. likewise, quarter. to that the new second we we'll in there'll or

Stephen Laws

one Great. for And Matt, you.

the converts kind did you've Just some got outstanding. raise, of preferred equity

You've a market turnover coming so the got and But lot look capital accretive is the an various months, next less, And cost ATM know capital I certainly, stock capital probably less there's X available you you of how the your that think in what equity, haven't above could you used. book. mix at for for raise you with how those be the to relevant. do right of stack, options? to about

Matthew Salem

Stephen. a quite having at that Yes. relates that especially pipeline. think had market were equity time options, base moment Happy a listen, to it from powerful. And really and the accretive diversified wasn't the we able as perspective, where we equity the equity, just big Well, Thanks, to I serve. common take access to one. been obviously, preferred has a a we to it in wanted client And

So particularly we that thought was attractive.

good and appropriate we're both those. for the I grow preferred from And to options. here, as we at we As obviously, the sizing think common need keep looking the

on. bit point in kind And of pipeline your highlight with to those on said, origination pipeline at probably being a little repayments. our that really the of to more so say we're That viable focused that's But those comment, have, they're is we both repayment time. mix we something using the fund focused I'd are this

And is currently relatively need equity for low. so the

get we the to equation very so out But are or repayment. The pipeline pipeline pushed the is very, can bit, that our now. right is need it. again, little repayments of high may Now change if side grows these a

trying to the So ramped and is those about. match but talked we're difficult, kind what expecting of just we predicting future up up


of The Wells next question Fandetti comes from Don Fargo.

Donald Fandetti

to York occupancy in hotel, New delta several your the of are, York? New I Obviously, given was lot in list which in there work obviously seeing you're interest Brookland reflects increase just putting striking your pretty the just variant area? that current in in Matt, coming New capital thoughts And had watch back. at are opportunities curious a what terms properties. York your of

maybe So that some you're as talking of well.

Matthew Salem

for Don, question. the thanks Well,

monitoring health it delta always clearly, our As we're thought safety. and it relates employees' mean, I to the very closely. our to is variant, first

perspective. it we're working that office We're in from So watching the together.

And to we're so we on want of it. make sure top

to relates could the I it on our the resilient. an cyclical As think we've hotels. be portfolio the investment COVID portfolio of have the clearly, it seen and through depths the risk, of volatility pretty But initial nature impact of

City that we'll very that's think I us comment, on overly something say we've portfolio. seen not but our would making us So New giving it's for York - concerned the over watch in existing I it, hotel big Not increase other in portfolio properties Brooklyn, our that course year, the last Tri-state only of through in the we've at pretty multifamily activity leasing. but in a had we've region. the repayments the sizable multifamily had, in some over the

think the for assumptions that good this on your more market multifamily York lease-up on to I conservative New and assumptions. sector outside we're on focus fact and look opportunities. of So just you lend don't still the your have to hesitant we'll concession more But any in be

Donald Fandetti

on a single I family the in curious your that quarter. that saw did just loan you thoughts market. I housing And was

be Or you'll if active there? more that a was think You one-off?

Matthew Salem

bring a it's No, good Yes. up. point to

all rental estate housing. real active things platform the single business, - a have On family side of KKR we're we very there. the And in equity equity our of private

become quite is it that with Phoenix, dramatic, very because service be that it I very did of opportunities this ownership. the our for sector. really institutional In So you've particular how to one of it in a as we like sector. particular institutional a kind the which sector. the number one-off. attractive. will We I'm in familiar like Obviously, the an portfolio a seeing this business, is We'd existing sector a big need growing commercial of that part we're and case, seen of banks not we're housing out is clients are active that clearly call do market. and that We're more. are in wouldn't sure

it's they So ourselves. unclear I the how like set will of opportunity lenders take much think versus

of, something to it. but following how can grow it's we So we're and big hope unclear more do


comes JPMorgan. question Shane of next Rick The from

Richard Shane

a you dividend I'm but you rates income. the curious in us the are potential as of impacting income. repayments when is and also along assuming the that I'm a policy as about is lot us lose we impact think half floor at that, talking floor billion of look Obviously, of $X about brings dividend the floor guys headwind that there much policy? that second of effectively income year. How scale moves you the rise,

Patrick Mattson

it's one. Rick, I'll that take Patrick.

think So next as likely right think of over transpire about to couple be will we this repayments that we what's quarters, elevated.

is setting are spot almost loans side to of points basis less earning at through As We'll we're Matt had to start floors. indicated, OID income pull-through entirely some that all The at coupons able we'll because some acceleration lose we're than excess to those capture we've spread. of XX for LIBOR that means on quarters. of flip LIBOR get been that that spread that NIM the that new

for And so well ourselves years. coming the we're up setting

the more to correlated quantify difficult the be lot A the you quantum. depend the which of that to will that of because be anticipate exactly rates benefit than or over of today in If of over of that time, rise and or sort actually much are there sort some getting. change X that could we'll we repay. It's next on positively the loans quarter sort timing we're

Richard Shane

Got it.

about the interesting floors back loans of of a quarter. quarter, above the guys during which that's in if you LIBOR that's I first percentage the $XXX with the the compare is like XX% loans repayments floors, we the and with this substantially is envelope but was things X%. that again, one X% there this million math, - experienced of in very is quarter, XX%. And which but And believe Okay. It above was of the decline looks percentage

are there that terms reduce are floors? that wondering, consider that we to - Is renegotiated need something I'm or to as So well? loans are being

Patrick Mattson

Rick, out. highlight initial you're loans as point been There that detailed of that's a have very come good have point, a some to sort maturities - we've or any to of the we've spread a the as form but provided the and of the recast changed. accommodation cases, sponsors, has mix up coupon where you of lot Yes, and a stayed LIBOR has pulling same, instances In the coupon.

And perhaps so income the varying sure took money floor, rate. that increasing and a the loan LIBOR to benefit an a where from of the LIBOR had spot again just we're again, closer we remaining lot spread extended to is - longer, in we make going reset to, that if income

certainly find that on. been that's a yes, good have something and we So focused

Richard Shane

it. Got

trade-off that wider actually up is giving the turn the getting apologize should term, slightly for you're question, and And third That's long some so by spreads. follow-up floor? I of that - ultimately into second that but

Patrick Mattson

and It's we're off. right. wider that in to loans of making some paying you are That's that see That's right. the that spreads, relative loans the

relative the is just the XX we look importantly, I points last cost X.X% in year, to you average strong at still X.X%. liabilities. X over think about sort but last at I It's of down of the the quarters, our gone coupon our quarters, start quarter-over-quarter, last number highlight basis about was thing would several a here pretty is weighted if


Hayes question next BTIG. comes Tim The of from

Timothy Hayes

just a my and been couple But asked in have answered. the of maybe lot questions more pipeline. A

$XXX on about then compares to just mentioned million of little under seeing the in quarter? spreads, a you Can your more think provide in end. what talked as since how of well. maybe And bit exclusivity closed LTVs and closed pipeline that think loans loans I previous or you bit maybe a you you construction color I little there quarter about

So to - the were loans? at all this closing quarter, close fundings expectations wondering, a if of just XXX for those or

Matthew Salem

consistent Jim, we've mean, it's doing our in is been around of past. give There construction in little I life the some a can pipeline. pipeline I current the color what is that. bit There's with Matt. science.

well. I exact do the that have to say, traditional around of component with couple sectors of initial the the committed spread. think of a the breakout as looking of has pretty or spread some but current of expect now, the me we cover quarter, multifamily funding at. have then, the quarters should of could in around would And something newer some market front right pipeline. again, don't I - expectations some The we're So don't last competitive that I I construction in and dynamic. versus line commentary your in - terms last And just in few origination questions market quarters, been consistent just

are construction the on in depending would property coupons our largely I it's what this So line type and not, whether or say with we did past quarter.

Timothy Hayes

same of of percentage construction just team portfolio that up level Got it. from talking, What lending. know see of of consists level today? unfunded And jumped I then on the where I quarter. your loans this construction That's high going? keeping you that guess Matt, but helpful. bit commitments a a do the

you comfortable And feel next repayments - with liquidity solid pipeline is couple your to? about it's pretty do considering Where total but seems think position at that too. going number repayments solid the of I especially portfolio. expected pretty of the over XX% quarters, the today, the

relative So today your feel you to and liquidity good where is commitments? your pretty about pipeline just wondering if unfunded

Matthew Salem

A sector. I'd things. a couple date construction is the to done of that in Yes. lot of industrial say we've the

pretty ground the into go will that quickly. So

to It's like for few there not for be don't long. you or so that quarters forward it's going - almost just originations the out And next quarters. of couple

but to easier will that one. be bit little a it's predict, So

couple it's mean, next funding of Given construction then the future our building around be terms pretty to to our today than us. less going budget, And X%. expectation over the size the I some of repayments, small. quarters of it's is in helpful

that a our as the just anything lot And go part particular from any e-commerce on give ways we risk sector. for portfolio perspective especially ever in that to relates perspective, hit of to certainly would so before cause industrial would have we the it a us And today, a activity from market the demand management concern. perspective, there's of portfolio management

think if are line that next the on the the your I around vis-a-vis of future understand liquidity But So kind in focus it we'll continue point of with returns couple to I of we over overall managing see funding company. quarters the them today. where

Timothy Hayes

past, just is you loans focusing think size the then sector, the the And I be. it's you generally talked industrial where how on think the in industrial given KKR we've market and of you have heard brings guys. versus that highlighted on find to active And about the resources tends always to guys I you not Okay. to there loans easier for you're that and

obviously, - competitive very a So and it's class. asset

my "to big So just broader over see here how what I a questions that And easy, that it's on KKR footprint? segment impact given guess loans becoming your time of the you class? if ROE, should portfolio a have find" guess percentage I then around it's given as asset competitive are those

Matthew Salem

we have and bring the other make portfolio are size e-commerce industrial, points seeing overall volumes historically difficult a them. footprints. Right. A allocation to market players be: would granular and drive you just do one, good the to given of in It's larger some up. of of opportunities. Amazon It's big to point been some the bigger couple

larger so for And loan that's some need creating sizes.

this of deals One granular quarter was we did boxes. more on the

of on developer. pipeline a entire basis, a be for a effectively portfolio financing However, year's wide we and worth we'll an did it national

doing an slightly driving obviously, see overall slight From at like than, much. a a think of but growing it ROE terms won't way I double of think So be think possible, any that into to could To it on - slightly it. that's if our up that can exposure about this perspective, slightly. - portfolio digits portfolio, $X.X round but at more the additive, They're another maybe it's level, multifamily get as in loan. really wouldn't you by today we're business. about you But we're the But I it numbers these billion, low our portfolio ROE accretive of obviously largest size? the it's stretch. think we doing could come a what we like

about the more other it's as like as slightly maybe a portfolio, that it's if it think part in. - a lending Just than sectors XX% becomes of we're earning the - if


to like This would concludes Switala I over Jack closing conference to our the back for question-and-answer any remarks. turn session.

Jack Switala

have to team or reach great for if day. me Have Thanks joining, everyone. you questions. any Please a Great. the out


today's now conference The for attending concluded. Thank you now may has you presentation, and disconnect.