KKR Real Estate Finance posts $156M Q3 loan write-offs
Loan repayments totaled $2.4 billion year to date, and quarter-end liquidity was $853.5 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
KKR Real Estate Finance Trust Inc. (KREF) reported a $6.4 million net loss attributable to common stockholders, or $0.11 per diluted share, for the quarter ended September 30, 2026, compared with a $121.8 million net loss in Q2. Non-GAAP Distributable Loss was $152.0 million, or $2.64 per diluted share, versus $36.4 million in Q2; it included $155.9 million of realized loan write-offs.
KREF received $1.2 billion in loan repayments during the quarter and $2.4 billion year to date. Its senior loan portfolio was $3.2 billion, 98% floating-rate, with a 7.0% weighted average unlevered all-in yield. Quarter-end liquidity was $853.5 million. The company originated $157.0 million and funded $137.5 million on two floating-rate senior loans.
KREF resolved three watch-list loans and reported no risk-rating downgrades. In July, it repurchased 1.6 million shares at an average price of $7.26 per share, for $11.3 million. A board committee is reviewing possible strategic alternatives.
0 points · 0 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Major pointDistributable loss was $152.0 million, including $155.9 million of realized loan write-offs. 45% of market cap
- Minor pointQ3 common-stockholder result: $6.4 million loss versus $8.1 million income a year earlier.
Filing Explained
As of
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net loss attributable to common stockholders: ($6.4 million)
Net loss per diluted share: ($0.11) per diluted share
Distributable Loss: ($152.0 million)
+5 more
8 metrics
Net loss attributable to common stockholders
($6.4 million)
Three months ended September 30, 2026
Net loss per diluted share
($0.11) per diluted share
Three months ended September 30, 2026
Distributable Loss
($152.0 million)
Three months ended September 30, 2026; non-GAAP measure
Realized loss on loan write-offs
($155.9 million)
Three months ended September 30, 2026
Loan repayments
$1.2 billion
Third quarter 2026
Year-to-date loan repayments
$2.4 billion
As of September 30, 2026
Available liquidity
$853.5 million
As of September 30, 2026
Senior loan portfolio
$3.2 billion
As of September 30, 2026
Key Terms
Distributable Earnings, weighted average unlevered all-in yield, mark-to-credit, collateralized loan obligations, +1 more
5 terms
Distributable Earnings financial
"Distributable Earnings should not be considered as a substitute for GAAP net income"
Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.
weighted average unlevered all-in yield financial
"weighted average unlevered all-in yield of 7.0%"
mark-to-credit financial
"the remaining balance is mark-to-credit only"
collateralized loan obligations financial
"Redeemed both outstanding collateralized loan obligations"
A collateralized loan obligation is a financial product that pools many corporate loans and repackages them into slices sold to investors, with some slices offering steady, lower returns and others offering higher returns but more risk. Like splitting a pizza into pieces for different tastes, CLOs let investors pick their preferred risk level and help banks fund lending, so changes in CLO performance influence credit availability and can move markets.
loan-to-value ratio financial
"weighted average appraised loan-to-value ratio"
The loan-to-value ratio (LTV) measures how large a loan is compared with the worth of the asset used as collateral, expressed as a percentage — for example, a $80,000 loan on a $100,000 property equals an 80% LTV. It matters to investors because higher LTVs mean higher risk of loss if the asset falls in value, and they influence borrowing costs, loan approval, and the stability and pricing of securities backed by such loans; think of it like how deep your financial safety net is under a loan.
Earnings Snapshot
Net loss attributable to common stockholders: ($6.4 million)
Third quarter 2026
Net loss attributable to common stockholders
($6.4 million)
Compared with ($121.8 million) in Q2 2026
Net loss per diluted share
($0.11) per diluted share
Compared with ($1.95) per diluted share in Q2 2026
Distributable Loss
($152.0 million)
Compared with ($36.4 million) in Q2 2026
Distributable Loss per diluted share
($2.64) per diluted share
Compared with ($0.58) per diluted share in Q2 2026
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was KREF's net loss in Q3 2026?
KREF reported a $6.4 million net loss attributable to common stockholders, or $0.11 per diluted share, compared with a $121.8 million net loss, or $1.95 per diluted share, in Q2 2026.
How much was KREF's distributable loss?
KREF reported non-GAAP Distributable Loss of $152.0 million, or $2.64 per diluted share, for Q3 2026. The quarter's result included $155.9 million in realized loan write-offs.
What were the terms of KREF's two new senior loans?
The two floating-rate senior loans had committed principal amounts of $79.5 million and $77.5 million. Their weighted average LTV was 63%, and their weighted average coupon was 2.6% over the applicable benchmark.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2026
KKR Real Estate Finance Trust Inc.
(Exact name of registrant as specified in its charter)
| Maryland | 001-38082 | 47-2009094 | ||||||||||||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| 30 Hudson Yards, | Suite 7500 | ||||||||||||||||
| New York, | New York | 10001 | |||||||||||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||||||||
Registrant’s telephone number, including area code: (212) 750-8300
| Not Applicable | |||||||||||
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||||||||
| Common stock, par value $0.01 per share | KREF | New York Stock Exchange | ||||||||||||||||||
| 6.50% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share | KREF PRA | New York Stock Exchange | ||||||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 28, 2026, KKR Real Estate Finance Trust Inc. (the “Company”) issued an earnings release and supplemental financial information announcing its financial results for the quarter ended September 30, 2026. The earnings release and supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, hereto and are incorporated herein by reference.
The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), unless it is specifically incorporated by reference therein.
Forward-Looking statements
This Report contains forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, 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. The forward-looking statements speak only as of the date of this Report or as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statements except as required by law. Information about factors affecting the Company and the forward-looking statements is available in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in the Company’s periodic filings with the Securities and Exchange Commission, which are available at www.sec.gov.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Earnings Release dated October 28, 2026 | |||||||
| 99.2 | Supplemental Financial Information for the quarter ended September 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| KKR Real Estate Finance Trust Inc. | ||||||||
| By: | /s/ Kendra Decious | |||||||
| Name: Kendra Decious | ||||||||
| Title: Chief Financial Officer | ||||||||
Date: October 28, 2026
KKR REAL ESTATE FINANCE TRUST INC. REPORTS
THIRD QUARTER 2026 FINANCIAL RESULTS
New York, NY, October 28, 2026 - KKR Real Estate Finance Trust Inc. (the “Company” or “KREF”) (NYSE: KREF) today reported its financial results for the quarter ended September 30, 2026.
Reported net loss attributable to common stockholders of ($6.4) million, or ($0.11) per diluted share of common stock, for the three months ended September 30, 2026, compared to net loss attributable to common stockholders of ($121.8) million, or ($1.95) per diluted share of common stock, for the three months ended June 30, 2026.
Reported Distributable Loss of ($152.0) million, or ($2.64) per diluted share of common stock, for the three months ended September 30, 2026, compared to Distributable Loss of ($36.4) million, or ($0.58) per diluted share of common stock, for the three months ended June 30, 2026.
Third Quarter 2026 Highlights
•$853.5 million liquidity position, including $165.9 million of cash, $53.4 million of loan principal repayments held by a servicer and $600.0 million of undrawn capacity on our corporate revolving credit agreement as of September 30, 2026
•Originated and funded $157.0 million and $137.5 million, respectively, relating to two floating-rate senior loans, with a weighted average appraised loan-to-value ratio ("LTV")(1) of 63% and coupon of 2.6% over the applicable benchmark; and funded $20.4 million in loan principal for existing loans
•Received $1.2 billion in loan repayments in the third quarter; year-to-date repayments totaled $2.4 billion
•Current loan portfolio of $3.2 billion:
•98% floating-rate with a weighted average unlevered all-in yield(2) of 7.0% as of September 30, 2026
•Multifamily and industrial assets represent 57% of the loan portfolio
•Weighted average LTV at origination of 65%
•Average risk rating of the loan portfolio was 3.2, weighted by outstanding principal amount
•Resolved three watch list loans consisting of a risk-rated 5 life science loan in Boston, MA, a risk-rated 5 loan in San Diego, CA and a risk-rated 4 loan in Dallas, TX
•Diversified financing sources totaling $5.5 billion with $2.4 billion of undrawn capacity:
•74% of secured financing is fully non-mark-to-market and the remaining balance is mark-to-credit only
•No final facility maturities until 2027 and no corporate debt due until 2030
•Redeemed both outstanding collateralized loan obligations, which included an aggregate of $564 million investment-grade bonds
•In July, repurchased 1.6 million shares at an average price per share of $7.26 for a total of $11.3 million
•Common book value of $582.5 million, or $10.14 per share, as of September 30, 2026, inclusive of net unrealized and realized loan losses of $6.6 million, or ($0.11) per share, for the three months ended September 30, 2026
Matt Salem, Chief Executive Officer of KREF, said “We have made significant progress executing the action plan established at the beginning of the year, including the resolution of three additional watch list loans during the quarter.”
Patrick Mattson, President and Chief Operating Officer of KREF, added: “Repayment activity remained strong, with $2.4 billion of repayments year-to-date, exceeding our original full-year expectations. These repayments have meaningfully strengthened our balance sheet, with liquidity increasing to over $850 million and total leverage declining to 3.1x, enhancing our financial flexibility.”
(1) LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated.
(2) All-in yield includes amortization of deferred origination fees, loan origination costs and purchase discounts.
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Third Quarter 2026 Loan Originations
The Company committed capital and funded the following floating-rate loans ($ in thousands):
| Description/Location | Property Type | Month Originated | Committed Principal Amount | Initial Principal Funded | Coupon | Maturity Date(A) | LTV | ||||||||||||||||||||||||||||||||||||||||
Senior Loan, Various, U.S.(B) | Senior Housing | July 2026 | $ | 79,500 | $ | 79,500 | + | 2.3% | July 2031 | 65% | |||||||||||||||||||||||||||||||||||||
Senior Loan, Frisco, TX(C) | Office | September 2026 | 77,500 | 57,950 | + | 3.0 | October 2031 | 60 | |||||||||||||||||||||||||||||||||||||||
| Total/Weighted Average | $ | 157,000 | $ | 137,450 | + | 2.6% | 63% | ||||||||||||||||||||||||||||||||||||||||
(A) Maturity date assumes all extension options are exercised, if applicable.
(B) The total whole loan is $265.0 million, co-originated and co-funded by KREF and a KKR affiliate. The Company's interest was 30% of the loan.
(C) The total whole loan is $155.0 million, co-originated and co-funded by KREF and a KKR affiliate. The Company's interest was 50% of the loan.
Portfolio Summary
The following table sets forth certain information regarding the Company’s portfolio as of September 30, 2026 ($ in millions):
| Investment | Committed Principal / Investment Amount | Outstanding Principal / Investment Amount | Carrying Value(A) | Net Equity(B) | Max Remaining Term (Years)(C)(D) | Weighted Average LTV(D) | ||||||||||||||||||||||||||||||||
| Senior Loans | $ | 3,413.4 | $ | 3,151.5 | $ | 2,950.1 | $ | 988.0 | 2.4 | 65% | ||||||||||||||||||||||||||||
Real Estate Assets(E) | 653.1 | 653.1 | 653.1 | 537.7 | n.a. | n.a. | ||||||||||||||||||||||||||||||||
| CMBS Investments | 91.2 | 85.3 | 85.3 | 85.3 | 5.0 | 55% | ||||||||||||||||||||||||||||||||
| Other Investments | 14.6 | 14.6 | 14.6 | 14.6 | n.a. | n.a. | ||||||||||||||||||||||||||||||||
| Total/Weighted Average | $ | 4,172.3 | $ | 3,904.5 | $ | 3,703.1 | $ | 1,625.6 | 2.4 | 65% | ||||||||||||||||||||||||||||
(A) Carrying value for senior loans represents the amortized cost, net of applicable allowance for credit losses.
(B) Net equity reflects (i) the amortized cost basis of our held-for-investment loans, net of borrowings; (ii) real estate assets, net of borrowings and noncontrolling interests; (iii) fair value of CMBS investments; and (iv) the investment amount of equity method investments, net of borrowings.
(C) Max remaining term (years) assumes all extension options are exercised, if applicable.
(D) Weighted by outstanding principal amount for senior loans and the investment amount for CMBS investments. Weighted average LTV excludes loans with a risk rating of 5.
(E) Real estate assets include real estate owned, net of noncontrolling interests, and equity method investments.
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Non-GAAP Financial Measures
Reconciliation of Distributable Earnings (Loss) to Net Income (Loss) Attributable to Common Stockholders
The table below reconciles Distributable Earnings (Loss) and related diluted per share amounts to net income (loss) attributable to common stockholders and related diluted per share amounts, respectively, for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025 ($ in thousands, except per share data):
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2026 | Per Diluted Share(A) | June 30, 2026 | Per Diluted Share(A) | September 30, 2025 | Per Diluted Share(A) | |||||||||||||||||||||||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | (6,417) | $ | (0.11) | $ | (121,794) | $ | (1.95) | $ | 8,079 | $ | 0.12 | ||||||||||||||||||||||||||
| Adjustments | ||||||||||||||||||||||||||||||||||||||
| Non-cash equity compensation expense | 1,876 | 0.03 | 1,899 | 0.03 | 2,174 | 0.03 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 1,970 | 0.03 | 1,564 | 0.03 | 981 | 0.01 | ||||||||||||||||||||||||||||||||
| Unrealized (gain) loss on investments | (369) | (0.01) | 1,675 | 0.03 | (65) | — | ||||||||||||||||||||||||||||||||
| Unrealized (gain) loss on foreign currency translation | 347 | 0.01 | (2,547) | (0.04) | — | — | ||||||||||||||||||||||||||||||||
| Unrealized (gain) loss on foreign currency forward contracts | (85) | — | 5,333 | 0.09 | — | — | ||||||||||||||||||||||||||||||||
| Net unrealized and realized loan losses | 6,605 | 0.11 | 119,839 | 1.92 | 975 | 0.01 | ||||||||||||||||||||||||||||||||
| (Gain) loss on sale of real estate owned | (211) | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Expenses related to strategic review | 1,462 | 0.03 | — | — | — | — | ||||||||||||||||||||||||||||||||
| Distributable Earnings before realized gains (losses) and strategic review expenses | $ | 5,178 | $ | 0.09 | $ | 5,969 | $ | 0.10 | $ | 12,144 | $ | 0.18 | ||||||||||||||||||||||||||
| Realized loss on loan write-offs | (155,888) | (2.70) | (42,337) | (0.68) | (14,394) | (0.22) | ||||||||||||||||||||||||||||||||
| Realized gain on sale of real estate owned | 211 | — | — | — | — | — | ||||||||||||||||||||||||||||||||
| Expenses related to strategic review | (1,462) | (0.03) | — | — | — | — | ||||||||||||||||||||||||||||||||
| Distributable Earnings (Loss) | $ | (151,961) | $ | (2.64) | $ | (36,368) | $ | (0.58) | $ | (2,250) | $ | (0.03) | ||||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 57,648,650 | 62,463,168 | 65,876,727 | |||||||||||||||||||||||||||||||||||
(A) Per share amounts presented may not foot due to rounding.
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Teleconference Details:
The Company will host a conference call to discuss its financial results on Thursday, October 29, 2026 at 11:00 a.m. Eastern Time. Members of the public who are interested in participating in the Company’s third quarter 2026 earnings teleconference call should dial from the U.S., (800) 715-9871, or from outside the U.S., +1 (646) 307-1963, shortly before 11:00 a.m. and reference the KKR Real Estate Finance Trust Inc. Teleconference Call; pass code 7308915. Please note the teleconference call will be available for replay beginning approximately two hours after the broadcast. To access the replay, callers from the U.S. should dial (800) 770-2030 and callers from outside the U.S. should dial +1 (609) 800-9909, pass code 7308915.
Webcast:
The conference call will also be available on the Company’s website at www.kkrreit.com. To listen to a live broadcast, please go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the webcast will also be available for 30 days on the Company’s website.
Supplemental Information
The slide presentation accompanying this release and containing supplemental information about the Company’s financial results for the quarter ended September 30, 2026 may also be accessed through the investor relations section of the Company’s website at www.kkrreit.com.
About KKR Real Estate Finance Trust Inc.
KKR Real Estate Finance Trust Inc. (NYSE: KREF) is a real estate investment trust that primarily originates or acquires transitional senior loans collateralized by institutional-quality commercial real estate assets that are owned and operated by experienced and well-capitalized sponsors and located in liquid markets with strong underlying fundamentals. The Company's target assets also include mezzanine loans, preferred equity and other debt-oriented instruments with these characteristics. The Company is externally managed and advised by KKR Real Estate Finance Manager LLC, a registered investment adviser and an indirect subsidiary of KKR & Co. Inc., a leading global alternative investment firm with a 50-year history of leadership, innovation and investment excellence and $796.5 billion of assets under management as of June 30, 2026.
Additional information can be found on the Company’s website at www.kkrreit.com.
Forward-Looking Statements
This release contains 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. You can identify these forward-looking statements by the use of words such as “outlook,” “believe,” “expect,” “potential,” “continue,” “may,” “should,” “seek,” “approximately,” “predict,” “intend,” “will,” “plan,” “estimate,” “anticipate,” the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. 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. Such forward-looking statements are subject to various risks and uncertainties, including, among other things: the review of possible strategic alternatives for the Company to enhance shareholder value by the strategic review committee of the board of directors and the timing and impact of the outcome of such review; the general political, economic, competitive, and other conditions in the United States and in any foreign jurisdictions in which we invest; global economic trends and conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, fluctuations in interest rates and credit spreads, labor shortages, currency fluctuations and challenges in global supply chains; deterioration in the performance of the properties securing our investments; difficulty accessing financing or raising capital; and the risks, uncertainties and factors set forth under Part I-Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in this release. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this release and in the Company’s filings with the SEC. 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
4
review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.
CONTACT INFORMATION
Investor Relations:
Jack Switala
Tel: 212-763-9048
kref-ir@kkr.com
Media:
Brooke Rustad
Tel: 646-823-0893
media@kkr.com
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. For the CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool.
“Distributable Earnings”: Distributable Earnings, a measure that is not prepared in accordance with GAAP, is a key indicator of the Company's ability to generate sufficient income to pay its quarterly dividends and in determining the amount of such dividends, which is the primary focus of yield/income investors who comprise a significant portion of the Company’s investor base. Accordingly, the Company believes providing Distributable Earnings on a supplemental basis to its net income as determined in accordance with GAAP is helpful to its stockholders in assessing the overall performance of the Company’s business.
The Company defines Distributable Earnings as net income (loss) attributable to common stockholders or, without duplication, owners of the Company’s subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items agreed upon after discussions between the Company’s manager and board of directors and after approval by a majority of the Company’s independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings only applies to debt investments related to real estate to the extent the Company forecloses upon the property or properties underlying such debt investments.
Distributable Earnings should not be considered as a substitute for GAAP net income or taxable income. The Company cautions readers that its methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, the Company’s reported Distributable Earnings may not be comparable to similar measures presented by other REITs.
5
Third Quarter 2026 Supplemental Information October 28, 2026
2 Legal Disclosures This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the benefit of its stockholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR Real Estate Finance Trust Inc. and its subsidiaries (collectively, “KREF” or the “Company”). This presentation is not and shall not be construed as an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities, any investment advice or any other service by KREF. Nothing in this presentation constitutes the provision of any tax, accounting, financial, investment, regulatory, legal or other advice by KREF or its advisors. This presentation may not be referenced, quoted or linked by website by any third party, in whole or in part, except as agreed to in writing by KREF. This presentation contains 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. You can identify these forward-looking statements by the use of words such as “outlook,” “believe,” “expect,” “potential,” “continue,” “may,” “should,” “seek,” “approximately,” “predict,” “intend,” “will,” “plan,” “estimate,” “anticipate,” the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. 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. Such forward-looking statements are subject to various risks and uncertainties, including, among other things: the review of possible strategic alternatives for the Company to enhance shareholder value by the strategic review committee of the board of directors and the timing and impact of the outcome of such review; the general political, economic, competitive, and other conditions in the United States and in any foreign jurisdictions in which we invest; global economic trends and conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, fluctuations in interest rates and credit spreads, labor shortages, currency fluctuations and challenges in global supply chains; deterioration in the performance of the properties securing our investments; difficulty accessing financing or raising capital; and the risks, uncertainties and factors set forth under Part I-Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in this release. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this release and in the Company’s filings with the SEC. 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 review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements in this presentation speak only as of October 28, 2026. KREF undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All financial information in this presentation is as of September 30, 2026 unless otherwise indicated. This presentation also includes non-GAAP financial measures, including Distributable Earnings and Distributable Earnings per Diluted Share. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with U.S. GAAP.
3 KKR Real Estate Finance Trust Inc. Overview Loan Portfolio Conservative Balance Sheet KREF’s Manager Fully Integrated with KKR $3.2 B Loan Portfolio 100% Senior Loans 57% Multifamily & Industrial $92 M Average Loan Size(1) 16% European Loan Exposure Senior loans secured primarily by transitional, institutional multifamily and industrial properties owned by high quality sponsors $5.5 B Financing Capacity 74% Fully Non-Mark-to-Market(2) Conservative liability management focused on diversified non-mark-to-market financing 18% KKR Ownership in KREF $853 M Current Liquidity(3) $796 B Global AUM(4) $84 B Real Estate AUM(4)(5) ~120 Real Estate Professionals One firm culture that rewards investment discipline, creativity and determination and emphasizes the sharing of information, resources, expertise and best practices (1) Average loan size is inclusive of KREF's unfunded commitment. The whole loan average size is $180 million (2) Based on outstanding principal amount of secured financing. The remaining is subject to credit marks only (3) Includes $166 million of cash, $600 million of undrawn corporate revolver capacity, $53 million of loan principal repayments held by a servicer and $34 million of available borrowings based on existing collateral (4) As of June 30, 2026 (5) Figures represent AUM across all KKR real estate transactions
4 • 3Q 2026 Net loss(1) of ($0.11) per diluted share (includes net unrealized and realized loan losses of ($0.11) per diluted share) • 3Q 2026 Distributable loss(2) of ($2.64) per diluted share (includes a net realized loss of ($2.70) per diluted share) • Book Value per Share (“BVPS”) of $10.14 per share Third Quarter 2026 Highlights (1) Represents net Income or loss attributable to common stockholders (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP (3) Includes the amortization of deferred origination fees, loan origination costs and purchase discounts. Excludes loans on nonaccrual status • Originated and funded $157 million and $137 million, respectively, relating to two floating-rate senior loans • $3.2 billion senior loan portfolio with a weighted average unlevered all-in yield(3) of 7.0% • Multifamily and industrial assets represent 57% of loan portfolio • Received $1.2 billion in loan repayments in the third quarter; year-to-date repayments totaled $2.4 billion • Funded $20 million for existing loans • Weighted average risk rating of 3.2 • Monitoring three watch list loans, including two office assets • Resolved three watch list loans consisting of a risk-rated 5 life science loan in Boston, MA, a risk-rated 5 loan in San Diego, CA and a risk-rated 4 loan in Dallas, TX Financials Portfolio Liquidity & Capitalization • $853 million of available liquidity, including $166 million of cash, $53 million of loan principal repayments held by a servicer and $600 million of undrawn capacity on the corporate revolver • Diversified financing sources totaling $5.5 billion with $2.4 billion of undrawn capacity • 74% of secured financing is fully non-mark-to-market and the remaining balance is mark-to-credit only • No final facility maturities until 2027 and no corporate debt due until 2030 • Redeemed both outstanding collateralized loan obligations, which included an aggregate of $564 million investment- grade bonds • In July, repurchased 1.6 million shares at an average price per share of $7.26 for a total of $11.3 million
5 3Q'26 Financial Summary (1) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP (2) Includes real estate owned and equity method investments (3) Included in “Other Assets” in the Condensed Consolidated Balance Sheets and received in October 2026 (4) Amount excludes 433,050 deferred stock units Income Statement ($ in Millions) 3Q'26 Net interest income $14.6 Other income 10.0 Net unrealized and realized loan losses (6.6) Operating expenses (18.7) Preferred stock dividends (5.3) Other (0.3) Net Loss Attributable to Common Stockholders ($6.4) Net Loss per Share, Diluted ($0.11) Distributable Earnings (Loss)(1) ($152.0) Distributable Earnings (Loss) per Share, Diluted(1) ($2.64) Dividend per Share $0.10 Diluted Weighted Average Shares Outstanding 57,648,650 Balance Sheet ($ in Millions) 3Q'26 Commercial real estate loans, net $2,950.1 Real estate assets(2) 723.7 Consolidated VIE assets, CMBS trusts 1,176.4 CMBS investments 60.9 Cash 165.9 Cash held by servicer(3) 53.4 Other 60.2 Total Assets $5,190.6 Secured financing agreements, net $2,397.4 Secured term loan, net 629.2 Consolidated VIE liabilities, CMBS trusts 1,151.9 Other 40.2 Total Liabilities $4,218.7 Total Equity $971.9 Common Shareholders' Equity $582.5 Book Value per Share $10.14 Common Shares Outstanding(4) 57,027,286
6 3Q'26 Loan Originations – Case Studies Investment National Senior Housing Portfolio Frisco Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $80 million(2) $78 million(3) Location Various (TX, AZ, and IA) Frisco, TX Collateral 4 Class A Senior Housing properties totaling 679 Units 396k RSF Class A Office Property Loan Purpose Recapitalization Refinance LTV(1) 65% 60% Investment Date July 2026 September 2026 Asset Photo (1) LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated (2) The total whole loan is $265 million, co-originated by the Company and a KKR affiliate. The Company's interest was 30% of the loan (3) The total whole loan is $155 million, co-originated by the Company and a KKR affiliate. The Company's interest was 50% of the loan
7 Multifamily 39% Office - Legacy 18% Office - Recent 6% Industrial 18% Life Science 11% Hospitality 5% Other 3% Class-A 95% Class-B 5% Class-A 61% Class-B 39% KREF Loan Portfolio by the Numbers (1) KREF classifies a loan as life science if more than 50% of the gross leasable area is leased to, or will be converted to, life science-related space (2) “Other” property types include: 3% Senior Housing and <1% Mixed Use (3) “Office - Recent” represents 2024 through 2026 originated loans (4) Office property certification % is based on current principal loan balance; see description for LEED certification in the Appendix Investment Type Property Type Interest Rate Type Geography 10% 9% 11% 5% Other U.S. <4%: 14% 88% Office(4) 9% Washington, D.C. Senior Loans 100% Floating 98% Fixed 2% Multifamily (1) (2) 11% Other Europe <4%: 1% 6% 10% 5% 4% 5% U.S. 84% non-U.S. 16% (3)
8 2026 Portfolio Positioning & Outlook Our focus is centered on two key priorities: (1) executing a proactive and disciplined resolution strategy across our watch list assets and certain legacy office exposures, and (2) positioning a significant portion of our REO portfolio for monetization Note: This information reflects current targets as of the date presented and is subject to change. Actual results may differ (1) Represents 2024 through 2026 originated loans
9 KREF Office Loan Portfolio Overview Location Investment Date Loan Purpose Committed Principal Outstanding Principal Net Equity(1) Loan per SF(2) Max Term (Years)(3) Minneapolis, MN Nov-17 Refinance 199.4 194.4 190.1 182 — Chicago, IL Jul-19 Refinance 105.0 90.7 61.2 87 1.9 Risk-Rated 5: Total / Weighted Average $304.4 $285.1 $251.3 0.6 Washington, DC Nov-21 Refinance 181.0 180.5 72.3 503 1.2 Dallas, TX Nov-25 Refinance 114.1 99.4 20.7 394 4.1 Washington, DC Jan-22 Refinance 100.0 100.0 15.1 365 1.4 Frisco, TX Sept-26 Refinance 77.5 58.0 13.9 293 5.0 Various, CA April-26 Refinance 36.3 36.3 7.0 221 4.5 Risk-Rated 3: Total / Weighted Average $508.9 $474.2 $129.0 2.6 Grand Total / Weighted Average $813.3 $759.3 $380.3 1.8 Risk-Rated 3 Office Assets Note: Amounts shown in millions, except for Loan per SF (1) Net equity reflects the amortized cost basis of our loans (which is before allowance for credit losses), net of borrowings (2) Loan Per SF based on current principal amount divided by current SF (3) Max remaining term (years) assumes all extension options are exercised, if applicable. Weighted average is weighted by current principal amount (4) The other assets in the portfolio are located in San Jose and San Francisco
10 KREF Life Science Loan Portfolio Overview 100% of KREF's loan exposure is located in the top two Life Science markets Location MSA Investment Date Loan Purpose Development Status Year Built or Renovated Asset Quality Committed Principal Outstanding Principal Net Equity(1) Loan per SF(2) Max Term (Years)(3) Redwood City, CA San Francisco Sep-22 Construction In Process 2025 Class A 145.2 113.6 29.6 886 1.0 Cambridge, MA Boston Dec-21 Construction Complete 2023 Class A 98.4 66.4 16.4 912 4.3 San Carlos, CA San Francisco Feb-22 Recapitalization Complete 2023 Class A 89.1 78.4 23.8 532 1.1 Brisbane, CA San Francisco Jul-21 Refinance N/A 2020 Class A 88.3 80.8 24.1 698 1.9 Risk-Rated 3: Total / Weighted Average $421.0 $339.2 $93.9 1.9 Completed 45%In Process 34% N/A 21% Boston 23% San Francisco 77% Life Science Assets Development Status(4) Metropolitan Statistical Area(4) Note: Amounts shown in millions, except for Loan per SF (1) Net equity reflects the amortized cost basis of our loans (which is before allowance for credit losses), net of borrowings (2) Loan Per SF based on current principal amount divided by current SF. For Construction loans, Loan per SF based on total commitment amount of the loan divided by the proposed SF (3) Max remaining term (years) assumes all extension options are exercised, if applicable. Weighted average is weighted by current principal amount (4) Based on committed principal
11 0% 6% 78% 1% 15% 1 2 3 4 5 Weighted Average Risk Rating(2): 3.2 Portfolio Credit Quality Overview Note: The charts above are based on percentage of our loan portfolio held-for-investment (1) LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated. Weighted average LTV excludes risk-rated 5 loans. (2) Weighted average is weighted by current principal amount Loan-to-Value(1) Risk Rating Distribution Weighted Average LTV(2): 66% Loan Count 3Q '2 6 Weighted Average LTV(2): 65% Weighted Average Risk Rating(2): 3.3 2Q '2 6 24% 11% 16% 39% 10% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 32% 12% 9% 34% 13% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 0 2 1 539 0 0 0 334Loan Count 0% 0% 90% 0% 10% 1 2 3 4 5
12 2Q'26 Watch List Intra-Quarter Activity 3Q'26 Watch List Total Principal: $674 million Risk Rating: 5 Total Principal: $329 million Minneapolis Office Minneapolis Office Chicago Office Chicago Office Carrollton Multifamily Carrollton Multifamily Boston Life Science } resolved San Diego Multifamily } resolved Total Principal: $42 million Risk Rating: 4 Total Principal: $0 million Dallas Multifamily } resolved Watch List Migrations Quarter-over-Quarter In 3Q'26, KREF had no risk rating downgrades and three resolutions
13 Case Studies: Watch List Loans Investment Minneapolis Office Chicago Office Carrollton Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date November 2017 July 2019 April 2022 Collateral Two Class-A Office Buildings totaling 1.1mm SF Class-A Office Building totaling 1mm SF 320-unit Multifamily Loan Purpose Refinance Refinance Acquisition Location Minneapolis, MN Chicago, IL Carrollton, TX Committed Amount $199 million(2) $105 million $44 million Current Principal Amount $194 million(2) $91 million $44 million Loan Basis(1) $182 / SF $87 / SF $136k / unit Coupon + 2.3%(2) + 2.3% + 2.9% Max Remaining Term (Yrs.) — 1.9 0.1 Loan Risk Rating 5 5 5 (1) Loan basis reflects outstanding current principal amount before any loan loss adjustments (2) The total whole loan was $199 million, including (i) a fully funded senior mortgage loan of $120 million, at an interest rate of S+2.3% and (ii) a mezzanine note with a commitment of $79 million, of which $74 million was funded as of September 30, 2026, at a fixed PIK interest rate of 4.5%
14 Overview of Real Estate Assets Real Estate Owned Location Property Type Acquisition Date Square Footage/ Units Investment Amount(2) ($ in millions) Investment Amount per Square Foot/ Unit Mountain View, CA Class A Office Campus June 2024 449,006 $143 $462 / SF Boston, MA(3) Life Science June 2026 497,501 128 $516 / SF Seattle, WA(3) Class A Life Science June 2024 213,056 96 $606 / SF Portland, OR Retail / Redevelopment December 2021 n.a.(4) 96 n.a. West Hollywood, CA Luxury Condo April 2025 36 units 93 $2.6M / unit Raleigh, NC Multifamily August 2025 320 units 71 $223k / unit Philadelphia, PA Office December 2023 210,528 35 $167 / SF Total REO $663 Note: Figures as of September 30, 2026. Property type and location breakouts based on total investment amount (1) Equity represents investment amount less current financing and noncontrolling interests (2) Investment Amount represents the value of land, building, and certain other adjustments to basis, net of noncontrolling interests (3) Included in "Equity method investments" on the Condensed Consolidated Balance Sheets (4) Estimated entitlement of 4+ million square feet Equity(1) of approximately $548 million ($9.53 per share) was held in our Real Estate Assets Life Science 34% Office 27% Condo 14% Retail / Redevelopment 14% Multifamily 11% CA 36% MA 19% WA 15% OR 14% NC 11% PA 5% Property Type Location
15 Term Lending Agreements 23% Secured Term Loan 21% Term Loan Facility 20% Asset Specific 7% Revolver 3% Term Credit Facilities 26% Financing Overview: 74% Non-Mark-To-Market Diversified financing sources totaling $5.5 billion with $2.4 billion of undrawn capacity Summary of Outstanding Financing Leverage Ratios (3) Outstanding Financing(5) ($ in Millions) Maximum Capacity Outstanding Principal Amount Weighted Avg. Coupon(1) Advance Rate Non- MTM Term Credit Facilities $1,448 $787 +1.7% 61.0% (2) Term Lending Agreements $1,168 $707 +1.4% 77.7% ü Warehouse Facility $250 $0 n/a n/a ü Secured Term Loan $642 $642 +2.5% — ü Corporate Revolving Credit Facility $700 $100 +2.0% — ü Total Debt $4,208 $2,236 Term Loan Facility $1,000 $616 +1.9% 79.5% ü Asset Specific Financing $252 $196 +2.3% 79.9% ü Total Leverage $5,460 $3,048 2.2 3.1 Debt-To-Equity Ratio Total Leverage Ratio(4) x (1) Weighted average coupon expressed as spread over the applicable benchmark rate (Term SOFR, EURIBOR or SONIA) (2) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions (3) Represents (i) total outstanding debt agreements (excluding non-recourse facilities) and secured term loan, less cash (including cash held by servicer); to (ii) KREF stockholders' equity, in each case, at period end (4) Represents (i) total outstanding debt agreements and secured term loan, less cash (including cash held by servicer); to (ii) KREF stockholders' equity, in each case, at period end (5) Based on outstanding principal amount of secured financing Non-Mark- to-Market 74% x
16 Financing Overview: Term Credit Facilities Counterparty Total or Weighted Average Drawn $375 $252 $160 $0 $787 Capacity $600 $300 $398 $150 $1,448 Collateral: Loans / Principal Balance 7 Loans / $561 7 Loans / $486 2 Loans / $213 1 Loan / $31 17 Loans / $1,291 Final Stated Maturity(2) September 2029 July 2027 November 2032 December 2030 - Weighted Average Pricing(3) +1.6% +2.0% +1.4% n/a +1.7% Weighted Average Advance 67.0% 51.8% 75.0% n/a 61.0% Mark-to-market Credit Only Credit Only Credit Only Credit Only - ($ in Millions) (1) Facility size is £300 million in local currency (2) Based on extended maturity date (3) Weighted average pricing expressed as spread over the applicable benchmark rate (Term SOFR, EURIBOR or SONIA) (4) Based on principal balance of financing Property Type(4) Multifamily 41% Life Science 22% Office 17% Industrial 13% Hospitality 7% U.S. Europe (1)
17 $53 $219 $819 $166 $600 $34 $853 Cash & Loan Principal Repayments Held by a Servicer Undrawn Corporate Revolver Approved and Undrawn Credit Capacity Total Available Liquidity $— $100 $200 $300 $400 $500 $600 $700 $800 $900 Liquidity Overview (1) Unencumbered assets include $188 million of unencumbered senior loans, $366 million of real estate owned assets, and $85 million of CMBS investments (2) Loan principal repayments held by a servicer of $53 million received in October 2026 (3) Represents under-levered amounts on financing facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender’s consent is required for us to (re)borrow these amounts ($ in Millions) Sources of Available Liquidity In addition to the available liquidity below, KREF had $640 million of total unencumbered assets(1) as of September 30, 2026 (3)(2)
18 Earnings Sensitivity to Change in Benchmark Rates 98% floating-rate loan portfolio indexed to benchmark rates Quarterly Net Interest Income Per Share Sensitivity to Change in Benchmark Rates Term SOFR: 3.91% EURIBOR: 2.62% SONIA: 3.75% As of September 30, 2026 ($ Impact Per Share) Note: Based on portfolio as of September 30, 2026 Change in Benchmark Rate $0.01 $0.00 $0.00 $0.00 $0.00 -1.00% -0.50% 0.00% +0.50% +1.00% 0.000 0.005 0.010 0.015
19 Appendix
20 3Q'26 Portfolio Details ($ in Millions) # Investment(1) Location Property Type Investment Date Total Whole Loan(2) Committed Principal / Investment Amount Outstanding Principal / Investment Amount Net Equity(3) Coupon(4)(5) Max Remaining Term (Yrs)(4)(6) Loan / Investment Per SF / Unit / Key(7) Origination LTV(4)(8) Risk Rating Senior Loans 1 Senior Loan Minneapolis, MN Office 11/13/2017 $199.4 $199.4 $194.4 $190.1 +2.3% — $182 / SF n.a. 5 2 Senior Loan Washington, D.C. Office 11/9/2021 181.0 181.0 180.5 72.3 +3.4% 1.2 $503 / SF 55% 3 3 Senior Loan Various, United Kingdom Industrial 3/5/2026 428.8 180.3 174.1 46.5 +2.6% 4.6 $73 / SF 72% 3 4 Senior Loan Various, Spain Multifamily 4/29/2026 559.2 149.3 129.7 16.8 +2.9% 4.6 $98,578 / unit 49% 3 5 Senior Loan Redwood City, CA Life Science 9/30/2022 580.9 145.2 113.6 29.6 +4.5% 1.0 $886 / SF 53% 3 6 Senior Loan Various, United Kingdom Industrial 11/19/2025 464.2 139.3 139.3 33.8 +2.8% 4.1 $145 / SF 75% 3 7 Senior Loan Raleigh, NC Industrial 6/24/2025 407.6 125.0 125.0 24.3 +2.4% 3.8 $152 / SF 71% 3 8 Senior Loan Dallas, TX Office 11/7/2025 228.2 114.1 99.4 20.7 +3.2% 4.1 $394 / SF 52% 3 9 Senior Loan Chicago, IL Office 7/15/2019 105.0 105.0 90.7 61.2 +2.3% 1.9 $87 / SF n.a. 5 10 Senior Loan Las Vegas, NV Multifamily 12/28/2021 101.1 101.1 101.1 20.1 +2.8% 0.3 $191,460 / unit 61% 3 11 Senior Loan Washington, D.C. Office 1/13/2022 228.5 100.0 100.0 15.1 +3.3% 1.4 $365 / SF 55% 3 12 Senior Loan Cambridge, MA Life Science 12/22/2021 341.3 98.4 66.4 16.4 +3.7% 4.3 $912 / SF 51% 3 13 Senior Loan Cary, NC Multifamily 11/21/2022 95.3 95.3 95.3 21.0 +3.4% 1.2 $244,275 / unit 63% 3 14 Senior Loan Jersey City, NJ Multifamily 10/9/2025 190.0 95.0 95.0 18.4 +2.5% 4.0 $455,635 / unit 76% 3 15 Senior Loan Orlando, FL Multifamily 12/14/2021 94.9 94.9 94.9 25.0 +3.1% 0.3 $250,396 / unit 74% 3 16 Senior Loan Boston, MA Industrial 6/28/2022 259.4 90.9 90.8 19.4 +2.7% 1.8 $195 / SF 52% 3 17 Senior Loan San Carlos, CA Life Science 2/1/2022 139.7 89.1 78.4 23.8 +1.0% 1.1 $532 / SF 68% 3 18 Senior Loan Brisbane, CA Life Science 7/22/2021 88.3 88.3 80.8 24.1 +3.4% 1.9 $698 / SF 71% 3 19 Senior Loan North Palm Beach, FL Multifamily 5/22/2025 85.7 85.7 85.4 16.6 +2.3% 3.7 $341,600 / unit 72% 3 20 Senior Loan Various, US Senior Housing 7/15/2026 265.0 79.5 79.5 15.2 +2.3% 4.8 $390,280 / unit 65% 3 21 Senior Loan Philadelphia, PA Mixed Use 6/28/2024 77.7 77.7 24.4 24.4 +4.0% 2.8 $75 / SF 72% 3 22 Senior Loan Frisco, TX Office 9/28/2026 155.0 77.5 58.0 13.9 +3.0% 5.0 $293 / SF 60% 3 23 Senior Loan Various, Europe Hospitality 12/2/2025 346.1 76.8 73.6 17.8 +3.0% 4.4 $70,584 / key 70% 3 24 Senior Loan Nashville, TN Hospitality 1/6/2025 75.8 75.8 75.0 14.7 +3.3% 3.3 $326,087 / key 64% 3 25 Senior Loan Delray Beach, FL Multifamily 3/26/2025 73.0 73.0 73.0 14.4 +2.3% 3.5 $257,042 / unit 71% 3 26 Senior Loan Melville, NY Multifamily 7/25/2025 142.1 71.1 31.8 9.4 +3.9% 3.9 $475,251 / unit 55% 3 27 Senior Loan Hollywood, FL Multifamily 12/20/2021 71.0 71.0 71.0 15.7 +2.8% 0.3 $287,449 / unit 74% 3 28 Senior Loan Denver, CO Multifamily 9/14/2021 70.3 70.3 70.3 14.1 +2.8% 0.1 $290,496 / unit 78% 3 29 Senior Loan Charlotte, NC Multifamily 12/14/2021 63.3 63.3 61.0 12.2 +3.1% 0.3 $165,690 / unit 74% 3 30 Senior Loan Atlanta, GA Multifamily 9/16/2025 60.8 60.8 60.8 11.9 +2.4% 4.0 $211,847 / unit 67% 3 31 Senior Loan Durham, NC Multifamily 12/15/2021 59.5 59.5 58.4 24.4 +2.8% 1.3 $169,243 / unit 67% 3 32 Senior Loan San Antonio, TX Multifamily 4/20/2022 56.4 56.4 56.4 18.5 +2.7% 0.6 $164,950 / unit 79% 3 33 Senior Loan Atlanta, GA Multifamily 12/10/2021 51.4 51.4 51.4 13.0 +3.0% 0.3 $170,197 / unit 67% 3 34 Senior Loan Reno, NV Industrial 4/28/2022 140.4 50.5 50.5 11.4 +2.7% 0.6 $117 / SF 74% 3 35 Senior Loan Carrollton, TX Multifamily 4/1/2022 43.7 43.7 43.7 43.7 +2.9% 0.1 $136,478 / unit n.a. 5 36 Senior Loan Various, U.S. Multifamily 1/31/2025 69.6 41.7 41.7 10.9 +3.0% 3.4 $161,013 / unit 71% 3 37 Senior Loan Various, CA Office 4/1/2026 72.5 36.3 36.3 7.0 +2.6% 4.5 $221 / SF 48% 3 Total / Weighted Average $6,671.8 $3,413.4 $3,151.5 $988.0 +2.9% 2.4 65% 3.2 *See footnotes on subsequent page
21 3Q'26 Portfolio Details # Investment(1) Location Property Type Investment Date Total Whole Loan(2) Committed Principal / Investment Amount Outstanding Principal / Investment Amount Net Equity(3) Coupon(4)(5) Max Remaining Term (Yrs)(4)(6) Loan / Investment Per SF / Unit / Key(7) Origination LTV(4)(8) Risk Rating Real Estate Assets 1 Real Estate Owned Mountain View, CA Office 6/28/2024 n.a. $142.6 $142.6 $142.6 n.a. n.a. $461 / SF n.a. 2 Equity Method Investment(9) Boston, MA Life Science 6/2/2026 n.a. 128.3 128.3 128.3 n.a. n.a. $516 / SF n.a. 3 Equity Method Investment(10) Seattle, WA Life Science 6/28/2024 n.a. 96.4 96.4 70.4 n.a. n.a. $606 / SF n.a. 4 Real Estate Owned West Hollywood, CA Condo 4/15/2025 n.a. 93.4 93.4 44.0 n.a. n.a. $2,594,444 / unit n.a. 5 Real Estate Owned Portland, OR Retail / Redevelopment 12/16/2021 n.a. 95.2 95.2 95.2 n.a. n.a. n.a. n.a. 6 Real Estate Owned Raleigh, NC Multifamily 8/12/2025 n.a. 72.6 72.6 32.6 n.a. n.a. $226,875 / unit n.a. 7 Real Estate Owned Philadelphia, PA Office 12/22/2023 n.a. 24.6 24.6 24.6 n.a. n.a. $117 / SF n.a. Total / Weighted Average $653.1 $653.1 $537.7 CMBS Investments 1 Equity Method Investment(11) Various, U.S. Various 2/13/2017 n.a. $40.0 $34.1 $34.1 4.7% 2.7 58% 2 CMBS B-Pieces Various, U.S. Various 3/12/2026 n.a. 15.1 15.1 15.1 6.1% 9.2 50% 3 CMBS Investment Kailua-Kona, HI Hospitality 3/17/2026 n.a. 14.0 14.0 14.0 +5.8% 4.5 55% 4 CMBS Investment Dallas, TX Mixed Use 2/20/2026 n.a. 12.8 12.8 12.8 +6.8% 4.4 62% 5 CMBS B-Pieces Various, U.S. Various 6/18/2025 n.a. 9.3 9.3 9.3 5.9% 8.5 42% Total / Weighted Average $91.2 $85.3 $85.3 5.6% 5.0 55% Other Investments 1 Equity Method Investment(12) Various, France Industrial 10/10/2025 n.a. $14.6 $14.6 $14.6 n.a. n.a. n.a. Total / Weighted Average $14.6 $14.6 $14.6 Portfolio Total / Weighted Average $4,172.3 $3,904.5 $1,625.6 +6.8% 2.4 65% 3.2 *See footnotes on subsequent page ($ in Millions)
22 3Q'26 Portfolio Details (1) Our total portfolio represents the current principal amount or investment amount on senior and mezzanine loans, real estate assets, CMBS investments and other investments. Excludes loans that were fully written off. (2) Total Whole Loan represents the total commitment of the entire loan originated, including participations by KKR affiliated entities. For Senior Loan 1, the total whole loan has an outstanding principal balance of $194.4 million, including (i) a fully funded senior mortgage loan of $120.0 million, at an interest rate of S+2.25% and (ii) a mezzanine note with a commitment of $79.4 million, of which $74.4 million was funded as of September 30, 2026, at a fixed interest rate of 4.5% PIK. (3) Net equity reflects (i) the amortized cost basis of our loans, net of borrowings; (ii) real estate assets, net of borrowings and noncontrolling interests, and (iii) the investment amount of equity method investments, net of borrowings. (4) Weighted average is weighted by the current principal amount of our loans and the investment amount of CMBS investments. Weighted average LTV excludes risk-rated 5 loans and weighted average coupon excludes loans on nonaccrual status. (5) Coupon expressed as spread over Term SOFR, SONIA or EURIBOR. (6) Maximum remaining term (years) assumes all extension options are exercised, if applicable. (7) Loan Per SF / Unit / Key is based on the current principal amount divided by the current SF / Unit / Key. For Senior Loans 5, 12 and 26, Loan Per SF / Unit / Key is calculated as the total commitment amount of the loan divided by the proposed SF / Unit / Key. (8) For senior loans, LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated; for construction loans, LTV is generally calculated as the total commitment amount of the loan divided by the as-stabilized value; for mezzanine loans, LTV is based on the initial balance of the whole loan divided by the as-is appraised value as of the date the loan was originated; for CMBS investments, LTV is based on the weighted average LTV of the underlying loan pool at issuance. Weighted average LTV excludes risk-rated 5 loans. (9) Represents real estate assets held through a JV agreement between us and an unaffiliated third party. We hold a 50% economic interest in the real estate assets and share decision making with the third party under the JV agreement. (10) Represents real estate assets held through a Tenant-in-Common ("TIC") agreement between us and a KKR affiliate. We hold a 74.6% economic interest in the real estate assets and share decision-making with the KKR affiliate under the TIC agreement. (11) Represents our investment in an aggregator vehicle that invests in CMBS B-Pieces. Committed principal represents our total commitment to the aggregator vehicle whereas current principal represents the current funded amount. (12) Represents our 50% economic interest in an affiliated company, which is invested in a senior mortgage loan that is collateralized by industrial properties located in France. The underlying senior mortgage loan with an outstanding principal balance of €65.2 million has a coupon of 2.8%, term to maturity of 2.8 years and LTV of 69%. The affiliated company's investment in the underlying senior mortgage loan is 80% financed with a funding cost of EURIBOR +1.6%. KREF does not have unilateral authority to direct the activities that most significantly impact the affiliated company's economic performance.
23 3Q'26 Portfolio and Loan Activity (1) Includes a $183 million loan assignment in full satisfaction of secured financing (2) Includes $156 million in loan write-offs and a $1 million unrealized loss on FX translation (3) Future funding obligations are generally contingent upon certain events and may not result in investment by us Changes in Loan Portfolio Future Funding Obligations(3) ($ in Millions) Real Estate Assets, CMBS Investments & Other Loan Portfolio Principal (2) Loan Activity (1)
24 Fully Extended Loan Maturities Note: Based on current principal amount Fully Extended Loan Maturities ($ in Millions) $308 $954 $421 $24 $826 $618 2026 2027 2028 2029 2030 2031 $0 $250 $500 $750 $1,000 $1,250 Fully extended weighted average loan maturity of 2.4 years
25 Consolidated Balance Sheets (in thousands - except share and per share data) September 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 165,883 $ 84,617 Commercial real estate loans, held-for-investment 3,137,554 5,347,756 Less: Allowance for credit losses (187,436) (201,924) Commercial real estate loans, held-for-investment, net 2,950,118 5,145,832 Real estate owned, held-for-investment, net 368,133 338,595 Real estate owned assets, held-for-sale 130,889 130,188 Equity method investments 273,363 147,332 Investments in CMBS securities 26,800 — Consolidated variable interest entities assets, CMBS trusts, at fair value 1,176,376 505,230 Other assets 99,042 112,849 Total Assets $ 5,190,604 $ 6,464,643 Liabilities and Equity Liabilities Secured financing agreements, net $ 2,397,405 $ 2,862,689 Collateralized loan obligations, net — 1,198,332 Secured term loan, net 629,168 632,516 Real estate owned liabilities, held-for-sale 3,266 3,867 Consolidated variable interest entities liabilities, CMBS trusts, at fair value 1,151,934 496,060 Due to related parties 5,773 6,506 Other liabilities 31,157 39,469 Total Liabilities 4,218,703 5,239,439 Commitments and Contingencies — — Equity Preferred Stock, $0.01 par value, 50,000,000 shares authorized Series A cumulative redeemable preferred stock, (13,110,000 shares issued and outstanding as of September 30, 2026 and December 31, 2025); liquidation preference of $327,750, or $25.00 per share 131 131 Common stock, $0.01 par value, 300,000,000 authorized (57,027,286 issued and outstanding as of September 30, 2026; 65,488,680 issued and 64,367,737 outstanding as of December 31, 2025, respectively) 570 644 Additional paid-in capital 1,633,384 1,687,168 Accumulated deficit (723,851) (506,130) Repurchased stock (1,120,943 shares repurchased as of December 31, 2025) — (9,263) Total KKR Real Estate Finance Trust Inc. Stockholders' Equity 910,234 1,172,550 Noncontrolling interests in equity of consolidated joint ventures 61,667 52,654 Total Equity 971,901 1,225,204 Total Liabilities and Equity $ 5,190,604 $ 6,464,643
26 Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended Nine Months Ended September 30, 2026 June 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025 Net Interest Income Interest income $ 70,235 $ 85,487 $ 108,019 $ 251,628 $ 334,258 Interest expense 55,658 67,305 82,685 192,680 247,412 Total net interest income 14,577 18,182 25,334 58,948 86,846 Other Income Revenue from real estate owned operations 7,095 4,371 4,742 16,410 11,656 Income (loss) from equity method investments 1,021 (988) (105) 690 (925) Change in net assets of consolidated variable interest entities, CMBS trusts 848 836 347 2,123 388 Gain (loss) on sale of real estate owned 211 — — 211 1,192 Gain (loss) on foreign currency translation (328) 1,526 — (4,179) — Gain (loss) on foreign currency forward contracts 141 (4,194) — 2,800 — Other miscellaneous income 985 1,214 1,096 3,093 3,344 Total other income 9,973 2,765 6,080 21,148 15,655 Operating Expenses Provision for credit losses, net 1,381 75,088 975 150,010 75,686 Loss on commercial real estate loan, held-for-sale 5,224 44,751 — 49,975 — Expenses from real estate owned operations 7,596 8,406 7,302 24,124 18,954 Management fee to related parties 5,092 5,382 5,619 15,985 17,153 General and administrative 6,031 4,653 4,746 15,268 14,258 Total operating expenses 25,324 138,280 18,642 255,362 126,051 Income (Loss) Before Income Taxes (774) (117,333) 12,772 (175,266) (23,550) Income tax expense — — — — — Net Income (Loss) (774) (117,333) 12,772 (175,266) (23,550) Net income (loss) attributable to noncontrolling interests 145 (978) (1,006) (1,852) (2,741) Net Income (Loss) Attributable to KREF Trust Inc. and Subsidiaries (919) (116,355) 13,778 (173,414) (20,809) Preferred stock dividends 5,326 5,326 5,326 15,978 15,978 Participating securities' share in earnings 172 113 373 700 1,109 Net Income (Loss) Attributable to Common Stockholders $ (6,417) $ (121,794) $ 8,079 $ (190,092) $ (37,896) Net Income (Loss) Per Share of Common Stock, Basic and Diluted $ (0.11) $ (1.95) $ 0.12 $ (3.09) $ (0.56) Weighted Average Number of Shares of Common Stock Outstanding, Basic and Diluted 57,648,650 62,463,168 65,876,727 61,569,251 67,267,388 Dividends Declared per Share of Common Stock $ 0.10 $ 0.10 $ 0.25 $ 0.45 $ 0.75
27 Reconciliation of GAAP Net Income (Loss) to Distributable Earnings (Loss) (1) Numbers presented may not foot due to rounding (in thousands - except share and per share data) Three Months Ended September 30, 2026 Per Diluted Share(1) June 30, 2026 Per Diluted Share(1) September 30, 2025 Per Diluted Share(1) Net Income (Loss) Attributable to Common Stockholders $ (6,417) $ (0.11) $ (121,794) $ (1.95) $ 8,079 $ 0.12 Adjustments Non-cash equity compensation expense 1,876 0.03 1,899 0.03 2,174 0.03 Depreciation and amortization 1,970 0.03 1,564 0.03 981 0.01 Unrealized (gain) loss on investments (369) (0.01) 1,675 0.03 (65) — Unrealized (gain) loss on foreign currency translation 347 0.01 (2,547) (0.04) — — Unrealized (gain) loss on foreign currency forward contracts (85) — 5,333 0.09 — — Net unrealized and realized loan losses 6,605 0.11 119,839 1.92 975 0.01 (Gain) loss on sale of real estate owned (211) — — — — — Expenses related to strategic review 1,462 0.03 — — — — Distributable Earnings before realized gains (losses) and strategic review expenses $ 5,178 $ 0.09 $ 5,969 $ 0.10 $ 12,144 $ 0.18 Realized loss on loan write-offs (155,888) (2.70) (42,337) (0.68) (14,394) (0.22) Realized gain on sale of real estate owned 211 — — — — — Expenses related to strategic review (1,462) (0.03) — — — — Distributable Earnings (Loss) $ (151,961) $ (2.64) $ (36,368) $ (0.58) $ (2,250) $ (0.03) Diluted weighted average common shares outstanding 57,648,650 62,463,168 65,876,727
28 Key Definitions “Distributable Earnings (Loss)”: The Company defines Distributable Earnings as net income (loss) attributable to common stockholders or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items agreed upon after discussions between the Company’s Manager and board of directors and after approval by a majority of the independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings only applies to debt investments related to real estate to the extent the Company forecloses upon the property or properties underlying such debt investments. Distributable Earnings should not be considered as a substitute for GAAP net income or taxable income. The Company cautions readers that its methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, the Company’s reported Distributable Earnings may not be comparable to similar measures presented by other REITs. LEED: LEED is the most widely used green building rating system in the world. LEED certification provides independent verification of a building or neighborhood’s green features, allowing for the design, construction, operations and maintenance of resource-efficient, high-performing, healthy, cost-effective buildings.