Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q1 2026 Earnings Presentation
43 slides from Kkr Real Estate Finance Trust's earnings presentation, May 2026
Slide 1: Investor Presentation
Investor Presentation M AY 2 0 2 6
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 Loan Portfolio Conservative Balance Sheet Integrated with KKR $5.1 B $7.2 B 16% Loan Portfolio Financing Capacity KKR Ownership in KREF 100% 63% 77% $758 B Senior Loans Multifamily & Fully Non-Mark-to-Market(2) Global AUM(4) Industrial
Slide 4: Investment Highlights
Investment Highlights 4 3 5 Differentiated Diversified Investment Conservative Investment Portfolio 2 Liability Cycle Tested, Strategy Management Experienced Leadership Team 6 1 KKR Strong Levels of Sponsorship Liquidity KKR Real Estate Finance Trust (“KREF”) benefits from its integration within KKR
Slide 5: KKR Sponsorship
KKR Sponsorship
Slide 6: KKR Platform – A Leading Global Asset Manager
KKR Platform – A Leading Global Asset Manager Founded 1976 $758 B 785 30+ Assets Under Management Investment Professionals Cities KKR Real Assets Attributes $84 billion in AUM in Real Estate strategies and $107 billion in KKR operates with a single culture that AUM in Infrastructure globally(1) rewa
Slide 7: Integrated Global Real Assets Platform
Integrated Global Real Assets Platform A fully integrated Real Assets platform spanning the Americas, Europe and Asia, with 230+ professionals across Real Estate Equity, Real Estate Credit and Infrastructure Real Estate Platform Own or lend on $262B RE assets Infrastructure Real Estate Loans Real Es
Slide 8: KREF Integration with KKR
KREF Integration with KKR KREF differentiates itself by seeking opportunities where it has sourcing, underwriting and execution advantages through KKR’s brand, industry knowledge, relationships and deep bench of investment professionals KKR Private Equity KKR Infrastructure $123B of AUM, 202 $107B o
Slide 9: Experienced Leadership Team
Experienced Leadership Team
Slide 10: KKR Real Estate Finance Trust Team
KKR Real Estate Finance Trust Team Leadership Team Chris Lee Ralph Rosenberg Matt Salem Patrick Mattson Kendra Decious Chairman of the Board Member of the Board Chief Executive Officer President Chief Financial Officer Member of the Board Chief Operating Officer Treasurer Senior Investment Team Joel
Slide 11: Differentiated Investment Strategy
Differentiated Investment Strategy
Slide 12: Differentiated, Conservative Investment Strategy
Differentiated, Conservative Investment Strategy Lending on institutional quality real estate owned by high-quality sponsors in top markets Institutional Quality Top Domestic Markets with Commercial Real Estate Strong Underlying Fundamentals (4) Average Loan Size(1) Top 15 MSAs 71% $108M Top 25 MSAs
Slide 13: Our Investment Portfolio
Our Investment Portfolio
Slide 14: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Investment Type Interest Rate Type Geography 4% 5% 12% 5% 5% Washington, D.C. 18% 7% 11% 11% Property Type Other U.S. <4%: 15% (2) (1) 6% Office(3) Multifamily Europe 7% 100% Other Europe <4%: 1% United States 93% (1) KREF classifies a loan as life science if more
Slide 15: 2026 Portfolio Positioning & Outlook
2026 Portfolio Positioning & Outlook Our focus is centered on two key priorities: (1) executing a proactive and disciplined resolution strategy across our watch list assets and certain legacy office exposures, and (2) positioning a significant portion of our REO portfolio for monetization Note: This
Slide 16: Repayment Activity
Repayment Activity KREF Repayment Activity 2025 Repayments by Property Type ($ in billions) Other Industrial 2% 6% $1.5 $1.5 Self Storage 10% $1.3 Hospitality Multifamily 16% 66% $0.8 2024 Repayments by Property Type $0.7 Single Family Other Rental 2% 5% Hospitality 9% $0.4 Condo (Residential) Multi
Slide 17: Multifamily Loan Overview
Multifamily Loan Overview Multifamily: 41% of Loan Portfolio $82 M 70% <1% Average Loan Size(1) W.A. LTV(2) Construction Loans 90% 92% 2015 W.A. Occupancy W.A. Occupancy Median Year Built(4) at Closing(4) Current(3)(4) Property Locations Risk Rating Distribution Risk Rating 5 Risk Rating 4 Risk Rati
Slide 18: Office Loan Overview
Office Loan Overview Office: 18% of Loan Portfolio $136 M 59% 1.9% Average Loan Size(1) W.A. LTV(2) Co-Working Exposure 72% 81% 7.8 years W.A. Occupancy W.A. Occupancy W.A. Remaining at Closing Current(3) Lease Term Property Locations Risk Rating Distribution Risk Rating 5 21% Risk Rating 3 56% Risk
Slide 19: KREF Office Loan Portfolio Overview
KREF Office Loan Portfolio Overview Investment Committed Loan Max Term Location Date Loan Purpose Principal Outstanding Principal Net Equity per SF(1) (Years)(2) Minneapolis, MN Nov-17 Refinance $199.4 $194.4 $102.0 $182 0.3 Risk-Rated 5: Total / Weighted Average $199.4 $194.4 $102.0 0.3 Philadelphi
Slide 20: Life Science Loan Portfolio Overview
Life Science Loan Portfolio Overview 100% of KREF’s loan exposure is located in the top two Life Science markets Development Status(4) Year Built Loan Max Investment Loan Development or Asset Committed Outstanding Net per Term Location MSA Date Purpose Status Renovated Quality Principal Principal Eq
Slide 21: Portfolio Credit Quality Overview
Portfolio Credit Quality Overview Loan-to-Value(1) Risk Rating Distribution Loan Count 0 2 46 1 4 4Q '25 Weighted Average LTV(2): 66% Weighted Average Risk Rating(2): 3.2 Loan Count 0 2 41 4 4 1Q '26 Weighted Average LTV(2): 66% Weighted Average Risk Rating(2): 3.3 Note: The charts above are based o
Slide 22: Watch List Migrations Quarter-over-Quarter
Watch List Migrations Quarter-over-Quarter In 1Q'26, KREF had four risk rating downgrades 4Q'25 Watch List Intra-Quarter Activity 1Q'26 Watch List Total Principal: $572 million Risk Rating: 5 Total Principal: $704 million Minneapolis Office Minneapolis Office Boston Life Science Boston Life Science
Slide 23: Case Studies: Watch List Loans
Case Studies: Watch List Loans Investment Boston Life Science Minneapolis Office Boston Life Science San Diego Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date August 2022 November 2017 April 2021 October 20
Slide 24: Case Studies: Watch List Loans cont.
Case Studies: Watch List Loans cont. Investment Philadelphia Office Chicago Office Carrollton Multifamily Georgetown Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date June 2018 July 2019 April 2022 December 2
Slide 25: Overview of Real Estate Assets
Overview of Real Estate Assets Proforma equity(1) of approximately $506 million ($7.83 per share) was held in our Real Estate Assets Real Estate Owned Location Property Type Acquisition Date Square Footage/ Investment Amount(2) Investment Amount Units ($ in millions) per Square Foot/ Unit Mountain V
Slide 26: Real Estate Assets Value Creation Strategy
Real Estate Assets Value Creation Strategy Office – Mountain View, CA Retail / Redevelopment – Portland, OR Life Science – Seattle, WA • Asset: 449,006 square foot, 4 building, Class A • Asset: Retail / Redevelopment property; $95 • Asset: 213,056 square foot Class A property; $97 campus situated on
Slide 27: Real Estate Assets Value Creation Strategy
Real Estate Assets Value Creation Strategy Office – Philadelphia, PA Luxury Condo – West Hollywood, CA Multifamily – Raleigh, NC • Asset: 13-story, 210,528 square foot office • Asset: 4-story, 37-unit, 93,000 SF (123,000 SF • Asset: 320-unit, 350,000 square foot apartment (including ground level ret
Slide 28: Conservative Liability Management
Conservative Liability Management
Slide 29: Financing Overview: 77% Non-Mark-To-Market
Financing Overview: 77% Non-Mark-To-Market Diversified financing sources totaling $7.2 billion with $2.6 billion of undrawn capacity Summary of Outstanding Financing Leverage Ratios Outstanding Maximum Weighted Avg. Advance Non- ($ in Millions) Capacity Principal Coupon(1) Rate MTM Amount (2) Term C
Slide 30: Financing Overview: Term Credit Facilities
Financing Overview: Term Credit Facilities ($ in Millions) Total or Counterparty Weighted Average U.S. Europe Drawn $402 $309 $160 $148 $1,018 Capacity $600 $500 $397(1) $150 $1,647 Collateral: Loans / 8 Loans / $594 8 Loans / $528 2 Loans / $213 5 Loans / $272 22 Loans / $1,607 Principal Balance Fi
Slide 31: Liquidity Overview
Liquidity Overview In addition to the available liquidity below, KREF had $535 million of total unencumbered assets(1) as of March 31, 2026 Sources of Available Liquidity (4) ($ in Millions) (2) (1) Unencumbered assets includes $231 million of unencumbered senior loans, $217 million of real estate o
Slide 32: Earnings Sensitivity to Change in Benchmark Rates
Earnings Sensitivity to Change in Benchmark Rates 99% floating-rate loan portfolio indexed to benchmark rates Quarterly Net Interest Income Per Share Sensitivity to Change in Benchmark Rates Term SOFR: 3.66% ($ Impact Per Share) EURIBOR: 2.08% SONIA: 3.73% As of March 31, 2026 Change in Benchmark Ra
Slide 33: 1Q'26 Financial Summary
1Q’26 Financial Summary Income Statement Balance Sheet ($ in Millions) 1Q'26 ($ in Millions) 1Q'26 Commercial real estate loans, net $4,847.2 Net interest income $26.2 Real estate assets(2) 568.5 Other income 8.4 Consolidated VIE assets, CMBS trusts 1,272.2 Provision for credit losses (73.5) Cash 13
Slide 34: Key Highlights
Key Highlights Fully integrated with KKR; aligned with shareholders – Defensive investment portfolio – 63% Multifamily and 16% ownership; $84 billion of real estate AUM Industrial Scaled investment portfolio – $5.1 billion senior loan Experienced leadership & asset management team – portfolio 75+ ye
Slide 35: Appendix
Appendix
Slide 36: Portfolio Details
Portfolio Details ($ in Millions) Committed Outstanding Investment Total Whole Net Max Loan / Origination Risk # Investment(1) Location Property Type Principal / Principal / Coupon(4)(5) Date Loan(2) Equity(3) Remaining Investment Per LTV(4)(8) Rating Investment Investment Term (Yrs)(4)(6) SF / Unit
Slide 37: Portfolio Details
Portfolio Details ($ in Millions) Committed Outstanding Max Loan / # Investment(1) Location Property Type Investment Total Whole Principal / Principal / Net Coupon(4)(5) Origination Risk Date Loan(2) Equity(3) Remaining Investment Per LTV(4)(8) Rating Investment Investment Term (Yrs)(4)(6) SF / Unit
Slide 38: Portfolio Details
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. For Senior Loan 5, the total whole loan is on non-accrual and h
Slide 39: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 1.7 years Fully Extended Loan Maturities ($ in Millions) Note: Based on current principal amount. Excludes real estate owned and equity method investments 39
Slide 40: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) March 31, 2026 December 31, 2025 Assets Cash and cash equivalents $ 135,437 $ 84,617 Commercial real estate loans, held-for-investment 4,885,906 5,347,756 Less: Allowance for credit losses (258,679) (201,924) Commercial rea
Slide 41: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Net Interest Income Interest income $ 95,906 $ 101,341 $ 113,967 Interest expense 69,717 75,549 82,626 Total net interest income 26,189 25,792 31,341
Slide 42: 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 December 31, March 31, 2026 Per Diluted Share(1) 2025 Per Diluted Share(1) March 31, 2025 Per Diluted Share(1) Net Income (Loss) Attributable to Common Stockh
Slide 43: 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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