Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Investor Presentation (May 2025)
44 slides from Kkr Real Estate Finance Trust's investor presentation, May 2025
Slide 1: Investor Presentation
Investor Presentation M AY 2 0 2 5
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 $6.1 B $8.3 B 15% Loan Portfolio Financing Capacity KKR Ownership in KREF 100% 61% 78% $664 B Senior Loans Multifamily & Fully Non-Mark-to-Market(2) Global AUM(4) I
Slide 4: Investment Highlights
Investment Highlights 4 3 5 Differentiated Best in Class 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 K
Slide 5: KKR Sponsorship
KKR Sponsorship
Slide 6: KKR Platform – A Leading Global Asset Manager
KKR Platform – A Leading Global Asset Manager Founded 1976 $664 B 780+ 28 / 19 Assets Under Management Investment Professionals Cities / Countries KKR Real Assets Attributes $81+ billion in AUM in Real Estate strategies and $84 billion in KKR operates with a single culture that AUM in Infrastructure
Slide 7: Integrated Global Real Estate Platform
Integrated Global Real Estate Platform Founded in 2011 and fully integrated across both Real Estate Debt and Equity, as well as the Americas, Europe, and Asia Real Estate Loans $59B of Collateral Value(1) Integrated Real Estate Platform Own or lend on Real Estate $257B RE assets Real Estate Equity C
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 $115B of AUM, 200 $84B of
Slide 9: Experienced Leadership Team
Experienced Leadership Team
Slide 10: KKR Real Estate Credit Investment Committee
KKR Real Estate Credit Investment Committee Diversity of Manager’s Investment Committee creates a thorough vetting process US Investment Committee Matt Salem Patrick Mattson Ralph Rosenberg Chris Lee CEO KREF President & COO KREF Chairman of KREF Board Vice Chairman of KREF Board Member of KREF Boar
Slide 11: KKR Real Estate Finance Trust Team
KKR Real Estate Finance Trust Team Leadership Team Ralph Rosenberg Chris Lee Matt Salem Patrick Mattson Kendra Decious Chairman of the Board Vice Chairman of the Board Chief Executive Officer President Chief Financial Officer Member of the Board Chief Operating Officer Treasurer Senior Investment Te
Slide 12: Differentiated Investment Strategy
Differentiated Investment Strategy
Slide 13: Differentiated, Conservative Investment Strategy
Differentiated, Conservative Investment Strategy Lending on institutional quality real estate owned by high-quality sponsors in top markets Institutional Quality Top Markets with High-Quality, Experienced & Commercial Real Estate Strong Underlying Fundamentals Well-Capitalized Sponsors Select Exampl
Slide 14: Best In Class Investment Portfolio
Best In Class Investment Portfolio
Slide 15: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Total Portfolio(1) Investment Type Interest Rate Type ($ in Millions) Property Type (3) Geography (2) 4% 4% 14% 4% 5% Washington, D.C. Office(4) Multifamily 8% 18% 5% 13% 100% 10% Other <4%: 15% (1) Includes loans, real estate owned and equity method investments (2
Slide 16: Repayment Activity
Repayment Activity KREF Full & Partial Repayment Activity 2024 Repayments by Property Type ($ in billions) Life Science Other $1.5 1% 1% Single Family Rental 5% $1.3 Hospitality 9% Multifamily 27% $0.8 Condo (Resi) $0.7 10% Industrial Office 23% 24% 2021 2022 2023 2024 Note: 1Q’25 repayment activity
Slide 17: Multifamily Loan Overview
Multifamily Loan Overview Multifamily: 48% of Loan Portfolio Risk Rating Distribution Risk Rating 5 $100 M 69% 0% 7% Risk Rating 2 Average Loan Size(1) W.A. LTV(2) Construction Loans Risk Rating 4 6% 4% 86% 91% 2014 W.A. Occupancy W.A. Occupancy Median Year Built at Closing Current(3) Property Locat
Slide 18: Office Loan Overview
Office Loan Overview Office: 18% of Loan Portfolio $149 M 62% 1.4% Average Loan Size(1) W.A. LTV(2) Co-Working Exposure 57% 85% 8.8 years W.A. Occupancy W.A. Occupancy W.A. Remaining at Closing Current(3) Lease Term Property Locations Risk Rating Distribution 5-Rated Office 17% 3-Rated Office 83% (1
Slide 19: Office Loan Summary
Office Loan Summary KREF Office Loan Portfolio Risk-Rated 3 Assets Current Current Loan Investment Loan Commitment Principal per SF Max Term Location Date Purpose ($ Millions) ($ Millions) ($) (Years) Bellevue, WA Chicago, IL Philadelphia, PA Washington, D.C. Minneapolis, MN Nov-17 Refinance $199.4
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(3) 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 Collected 100% of interest payments due on the loan portfolio in 1Q'25 Loan-to-Value(1) Risk Rating Distribution Loan 47 Count 0 0 2 2 4Q '24 Weighted Average LTV(2): 65% Weighted Average Risk Rating(2): 3.1 Loan Count 0 2 47 2 3 1Q '25 Weighted Average LTV(2): 65%
Slide 22: Watch List Migrations Quarter-over-Quarter
Watch List Migrations Quarter-over-Quarter In 1Q'25, KREF had two risk rating downgrades, including one new addition to the watch list 4Q'24 Watch List Intra-Quarter Activity 1Q'25 Watch List Total Principal: $306 million Risk Rating: 5 Total Principal: $392 million Minneapolis Office Minneapolis Of
Slide 23: Case Studies: Watch List Loans
Case Studies: Watch List Loans Investment Minneapolis Office West Hollywood Multifamily Raleigh Multifamily Loan Type Floating-Rate Senior Loan(1) Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date November 2017 January 2022 April 2022 Collateral Two Class-A Office Buildings 37-unit
Slide 24: Case Studies: Watch List Loans cont.
Case Studies: Watch List Loans cont. Investment Boston Life Science San Diego Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date April 2021 October 2021 Collateral Two Buildings 231-unit Class-A Multifamily totaling 482k SF Loan Purpose Refinance Refinance Loca
Slide 25: Overview of Real Estate Assets
Overview of Real Estate Assets Proforma equity(1) of approximately $389 million ($5.71 per share) was held in our Real Estate Assets Real Estate Owned Location Property Type Acquisition Date Square Footage/ Investment Amount(2) Investment Amount Units ($ 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 • Asset: 445,967 square foot, 4 building, Class A campus situated on 19.6 • Asset: Retail / Redevelopment property; $89 million investment acres; $121 million investment(1) • Strategy: Execute
Slide 27: Real Estate Assets Value Creation Strategy
Real Estate Assets Value Creation Strategy Life Science – Seattle, WA Office / Garage – Philadelphia, PA • Asset: 211,555 square foot Class A property; $82 million investment • Office Asset: 13-story, 210,942 square foot office (including ground level • Strategy: Lease building to multi tenant users
Slide 28: Conservative Liability Management
Conservative Liability Management
Slide 29: Financing Overview: 78% Non-Mark-To-Market
Financing Overview: 78% Non-Mark-To-Market Diversified financing sources totaling $8.3 billion with $3.1 billion of undrawn capacity Summary of Outstanding Financing Leverage Ratios Outstanding Maximum Weighted Avg. Advance Non- ($ in Millions) Principal Capacity Coupon(1) Rate MTM Amount (2) Term C
Slide 30: KREF Debt Maturities
KREF Debt Maturities No final facility maturities until 2026 and no corporate debt due until 2030 Upcoming Debt Maturities by Year ($ in Millions) Note: Does not include collateralized loan obligations (CLOs). Maturity year represents the earlier of (i) the maximum maturity of the underlying loans p
Slide 31: Financing Overview: Term Credit Facilities
Financing Overview: Term Credit Facilities ($ in Millions) Counterparty Total or Weighted Average Drawn $761 $270 $109 $1,140 Capacity $1,000 $600 $400 $2,000 Collateral: Loans / Principal 10 Loans / $1,093 7 Loans / $398 4 Loans / $204 21 Loans / $1,695 Balance Final Stated Maturity(1) September 20
Slide 32: Liquidity Overview
Liquidity Overview In addition to the available liquidity below, KREF had $350 million of total unencumbered assets(1) as of March 31, 2025 Sources of Available Liquidity (4) ($ in Millions) (2) (1) Unencumbered assets includes $210 million of real estate owned assets, $104 million of unencumbered s
Slide 33: Earnings Sensitivity to Change in SOFR
Earnings Sensitivity to Change in SOFR 99% floating-rate loan portfolio indexed to Term SOFR Quarterly Net Interest Income Per Share Sensitivity to Change in Market Rates(1) Term SOFR = 4.32% ($ Impact Per Share) As of March 31, 2025 Change in SOFR Note: Based on portfolio as of March 31, 2025 33
Slide 34: Recent Operating Performance
Recent Operating Performance Net Income and Distributable Earnings Dividends and Book Value Per Share ($ in Millions) 1Q'24 4Q'24 1Q'25 1Q'24 4Q'24 1Q'25 Net income (loss): Dividend per share: ($8.7) $14.6 ($10.6) $0.25 $0.25 $0.25 Distributable earnings (loss): Dividend yield on book value per shar
Slide 35: Key Highlights
Key Highlights Best in class investment portfolio – 61% Fully integrated with KKR; aligned with Multifamily and Industrial shareholders – 15% ownership; $81+ billion of real estate AUM Scaled investment portfolio – $6.1 billion senior Experienced leadership & asset management loan portfolio team – 7
Slide 36: Appendix
Appendix
Slide 37: Portfolio Details
Portfolio Details ($ 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 38: 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 Remaining Investment Per Date Loan(2) Investment Investment Equity(3) LTV(4)(8) Rating Term (Yrs)(4)(6) SF / Unit
Slide 39: Portfolio Details
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 $199.4 million, including (i) a fully
Slide 40: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 2.0 years Fully Extended Loan Maturities ($ in Millions) Note: Based on current principal amount. Excludes real estate owned and equity method investments 40
Slide 41: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) March 31, 2025 December 31, 2024 Assets Cash and cash equivalents $ 106,411 $ 104,933 Commercial real estate loans, held-for-investment 6,108,987 5,888,622 Less: Allowance for credit losses (142,337) (117,103) Commercial re
Slide 42: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net Interest Income Interest income $ 113,967 $ 123,610 $ 151,620 Interest expense 82,626 88,476 112,476 Total net interest income 31,341 35,134 39,14
Slide 43: 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, 2025 Per Diluted Share(1) 2024 Per Diluted Share(1) March 31, 2024 Per Diluted Share(1) Net Income (Loss) Attributable to Common Stockh
Slide 44: 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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