Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q2 2025 Earnings Presentation
29 slides from Kkr Real Estate Finance Trust's earnings presentation, Jul 23, 2025
Slide 1: Second Quarter 2025 Supplemental Information
Second Quarter 2025 Supplemental Information JULY 22, 2025
Slide 2: Legal Disclosures
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 Financ
Slide 3: KKR Real Estate Finance Trust Inc. Overview
KKR Real Estate Finance Trust Inc. Overview KREF’s Manager Fully Best In Class Portfolio Conservative Balance Sheet Integrated with KKR $5.8 B $8.2 B 15% Loan Portfolio Financing Capacity KKR Ownership in KREF 100% 62% 78% $664 B (2) Senior Loans Multifamily & Fully Non-Mark-to-Market Global AUM(4)
Slide 4: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights • 2Q 2025 Net loss(1) of ($0.53) per diluted share (includes a CECL provision of $50 million, or ($0.74) per diluted share) • 2Q 2025 Distributable loss(2) of ($0.04) per diluted share Financials (includes a realized loss of $20 million, or ($0.30) per diluted share) •
Slide 5: 2Q'25 Financial Summary
2Q'25 Financial Summary Income Statement Balance Sheet ($ in Millions) 2Q'25 ($ in Millions) 2Q'25 Net interest income $30.2 Commercial real estate loans, net $5,605.5 VIE assets, CMBS trust, at fair value 492.0 Other income 5.7 (2) Real estate assets 471.1 Provision for credit losses (49.8) Cash 10
Slide 6: Recent Operating Performance
Recent Operating Performance Net Income and Distributable Earnings Dividends and Book Value Per Share ($ in Millions) 2Q'24 1Q'25 2Q'25 2Q'24 1Q'25 2Q'25 Net income (loss): Dividend per share: $20.2 ($10.6) ($35.4) $0.25 $0.25 $0.25 Distributable earnings (loss): Dividend yield on book value per sha
Slide 7: 2Q'25 Loan Originations – Case Studies
2Q'25 Loan Originations – Case Studies Investment North Palm Beach Multifamily Raleigh Industrial Portfolio Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $86 million $125 million(1) Location North Palm Beach, FL Raleigh, NC 250-Unit Class A 55 Light Industrial Properties Co
Slide 8: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Total Portfolio(1) Investment Type Interest Rate Type ($ in Millions) $7,916 Fixed $7,752 1% $6,792 $6,272 $6,243 Senior Loans 100% Floating 99% Property Type 4Q'21 4Q'22 4Q'23 4Q'24 2Q'25 Hospitality Other (3) 4% 3% Geography Life Science (2) 12% 4% Multifamily 11
Slide 9: Portfolio Credit Quality Overview
Portfolio Credit Quality Overview Collected 100% of interest payments due on the loan portfolio in 2Q'25 Loan-to-Value(1) Risk Rating Distribution Loan 0 2 47 2 3 Count 85% 27% 22% 24% 23% 1Q '25 4% 5% 4% 6% 0% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 1 2 3 4 5 (2) (2) Weighted Average LTV : 65%
Slide 10: KREF Life Science Loan Portfolio Overview
KREF Life Science Loan Portfolio Overview 100% of KREF's loan exposure is located in the top two Life Science markets Year Built Loan Max Development Status(3) Investment Loan Development or Asset Committed Outstanding Net per Term N/A Location MSA Date Purpose Status Renovated Quality Principal Pri
Slide 11: Watch List Migrations Quarter-over-Quarter
Watch List Migrations Quarter-over-Quarter In 2Q'25, KREF had two risk rating downgrades, including one new addition to the watch list, while also resolving one watch list loan 1Q'25 Watch List Intra-Quarter Activity 2Q'25 Watch List Total Principal: $392 million Risk Rating: 5 Total Principal: $443
Slide 12: Case Studies: Watch List Loans
Case Studies: Watch List Loans Investment Minneapolis Office Boston Life Science Raleigh Multifamily Loan Type Floating-Rate Senior Loan(1) Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date November 2017 April 2021 April 2022 Two Class-A Office Buildings Two Buildings Collateral 32
Slide 13: Case Studies: Watch List Loans cont.
Case Studies: Watch List Loans cont. Investment San Diego Multifamily Chicago Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date October 2021 July 2019 Class-A Office Building Collateral 231-unit Class-A Multifamily totaling 1mm SF Loan Purpose Refinance Refinance L
Slide 14: Overview of Real Estate Assets
Overview of Real Estate Assets Proforma equity(1) of approximately $352 million ($5.34 per share) was held in our Real Estate Assets Real Estate Owned Square Footage/ Investment Amount(2) Investment Amount Location Property Type Acquisition Date Units ($ in millions) per Square Foot/ Unit Mountain V
Slide 15: Financing Overview: 78% Non-Mark-To-Market
Financing Overview: 78% Non-Mark-To-Market Diversified financing sources totaling $8.2 billion with $3.2 billion of undrawn capacity Summary of Outstanding Financing Leverage Ratios Outstanding Maximum Weighted Avg. Advance Non- ($ in Millions) Principal Capacity Coupon(1) Rate MTM Amount (2) Term C
Slide 16: Financing Overview: Term Credit Facilities
Financing Overview: Term Credit Facilities ($ in Millions) Total or Counterparty Weighted Average Drawn $714 $277 $109 $1,100 Capacity $1,000 $600 $400 $2,000 Collateral: Loans / Principal 10 Loans / $1,032 7 Loans / $429 4 Loans / $181 21 Loans / $1,642 Balance Final Stated Maturity(1) September 20
Slide 17: Liquidity Overview
Liquidity Overview In addition to the available liquidity below, KREF had $253 million of total unencumbered assets(1) as of June 30, 2025 Sources of Available Liquidity (4) ($ in Millions) $800 $29 $700 $600 $500 $620 $400 $757 $728 $300 $200 $100 $108 $108 $0 Cash Undrawn Approved and Undrawn Tota
Slide 18: Earnings Sensitivity to Change in SOFR
Earnings Sensitivity to Change in SOFR 99% floating-rate loan portfolio indexed to Term SOFR Quarterly Net Interest Income Per Share Sensitivity to Change in Market Rates Term SOFR = 4.32% ($ Impact Per Share) As of June 30, 2025 0.04 0.03 $0.02 0.02 $0.01 0.01 $0.00 0.00 (0.01) ($0.01) (0.02) ($0.0
Slide 19: Appendix
Appendix KREF
Slide 20: 2Q'25 Portfolio Details
2Q'25 Portfolio Details ($ in Millions) Committed Outstanding Loan / Investment Investment Total Whole Principal / Principal / Net Max Remaining Origination Risk # Investment(1) Location Property Type Coupon(4)(5) Per Date Loan(2) Investment Investment Equity(3) Term (Yrs)(4)(6) LTV(4)(8) Rating SF
Slide 21: 2Q'25 Portfolio Details
2Q'25 Portfolio Details ($ in Millions) Committed Outstanding Loan / Investment Investment Total Whole Principal / Principal / Net Max Remaining Origination Risk # Investment(1) Location Property Type Coupon(4)(5) Per Date Loan(2) Investment Investment Equity(3) Term (Yrs)(4)(6) LTV(4)(8) Rating SF
Slide 22: 2Q'25 Portfolio Details
2Q'25 Portfolio Details (1) Our total portfolio represents the current principal amount or investment amount on senior and mezzanine loans, real estate assets and other investments. Excludes loans that were fully written off. For Senior Loan 7, the total whole loan is $199.4 million, including (i) a
Slide 23: 2Q'25 Portfolio Activity
2Q'25 Portfolio Activity Loan Portfolio Activity ($ in Millions) (1) Future Funding Obligations(2) Real Estate Assets & CMBS Investments (1) Includes a $92 million transfer to REO and a $20 million write-off (2) Future funding obligations are generally contingent upon certain events and may not resu
Slide 24: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 1.9 years Fully Extended Loan Maturities ($ in Millions) $3,000 $2,751 $2,500 $2,000 $2,073 $1,500 $1,000 $500 $522 $88 $332 $24 $0 2025 2026 2027 2028 2029 2030 Note: Based on current principal amount. Excludes real est
Slide 25: KREF Debt Maturities
KREF Debt Maturities No final facility maturities until 2026 and no corporate debt due until 2030 The table below may represent estimated earlier repayments based on the maturity dates of underlying loan collateral Upcoming Debt Maturities by Year ($ in Millions) $1,500 $1,409 $1,250 $1,000 $918 $75
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) June 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 107,717 $ 104,933 Commercial real estate loans, held-for-investment 5,777,138 5,888,622 Less: Allowance for credit losses (171,591) (117,103) Commercial rea
Slide 27: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended Year Ended June 30, 2025 March 31, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net Interest Income Interest income $ 112,272 $ 113,967 $ 149,249 $ 226,239 $ 300,869 Interest expense 82,101 82,626
Slide 28: Reconciliation of GAAP Net Income (Loss) to Distributable Earnings (Loss)
Reconciliation of GAAP Net Income (Loss) to Distributable Earnings (Loss) (in thousands - except share and per share data) Three Months Ended Per Diluted Per Diluted Per Diluted June 30, 2025 Share(1) March 31, 2025 Share(1) June 30, 2024 Share(1) Net Income (Loss) Attributable to Common Stockholder
Slide 29: Key Definitions
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 GA
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