Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q1 2026 Earnings Presentation
29 slides from Kkr Real Estate Finance Trust's earnings presentation, Apr 23, 2026
Slide 1: First Quarter 2026 Supplemental Information
First Quarter 2026 Supplemental Information April 22, 2026
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% $744 B Senior Loans Multifamily & Fully Non-Mark-to-Market (2) Global AUM(4) Industria
Slide 4: First Quarter 2026 Highlights
First Quarter 2026 Highlights • 1Q 2026 Net loss(1) of ($0.96) per diluted share (includes a CECL provision of ($1.14) per diluted share) • 1Q 2026 Distributable loss(2) of ($0.06) per diluted share Financials (includes a realized loss of ($0.27) per diluted share) • Book Value per Share (“BVPS”) of
Slide 5: 1Q'26 Financial Summary
1Q'26 Financial Summary Income Statement Balance Sheet ($ in Millions) 1Q'26 ($ in Millions) 1Q'26 Net interest income $26.2 Commercial real estate loans, net $4,847.2 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 1
Slide 6: 1Q'26 Loan Originations – Case Study
1Q'26 Loan Originations – Case Study Investment United Kingdom Industrial Portfolio Loan Type Floating-Rate Senior Loan Loan Size $184 million(1) Location Various, United Kingdom Collateral 34 Industrial Properties totaling 5.7M SF Loan Purpose Refinance LTV(2) 72% Investment Date March 2026 Asset P
Slide 7: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Geography Investment Type Interest Rate Type Fixed 1% 4% 5% 12% Senior 5% Loans 5% Washington, D.C. 100% Floating 18% 7% 99% 11% 11% Other U.S. <4%: 15% Property Type Hospitality Other (2) 3% 2% Life Science (1) 14% Multifamily 41% Office 18% 6% Industrial Office(3
Slide 8: 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 9: 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 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(4) Investment Loan Development or Asset Committed Outstanding Net per Term N/A Location MSA Date Purpose Status Renovated Quality Principal Pri
Slide 11: Portfolio Credit Quality Overview
Portfolio Credit Quality Overview Loan-to-Value(1) Risk Rating Distribution Loan 0 2 46 1 4 Count 30% 82% 25% 20% 4Q '25 17% 8% 11% 0% 5% 2% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 1 2 3 4 5 Weighted Average LTV : 66% (2) Weighted Average Risk Rating : 3.2 (2) Loan 0 2 41 4 4 Count 37% 74% 1Q '2
Slide 12: Watch List Migrations Quarter-over-Quarter
Watch List Migrations Quarter-over-Quarter In 1Q'26, KREF had four risk rating downgrades, including four new additions to the watch list and one resolution 4Q'25 Watch List Intra-Quarter Activity 1Q'26 Watch List Total Principal: $572 million Risk Rating: 5 Total Principal: $704 million Minneapolis
Slide 13: 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 14: 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 15: Overview of Real Estate Assets
Overview of Real Estate Assets Proforma equity(1) of approximately $506 million ($7.83 per share) was held in our Real Estate Assets Real Estate Owned Square Footage/ Investment Amount(2) Investment Amount Location Property Type Acquisition Date Units ($ in millions) per Square Foot/ Unit Mountain V
Slide 16: 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) Principal Capacity Coupon(1) Rate MTM Amount Term Credi
Slide 17: 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 18: 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) $800 $700 $18 $600 $500 $400 $500 $635 $653 $300 $200 $100 $135 $135 $0 Cash Undrawn Approved and Undrawn Tot
Slide 19: Earnings Sensitivity to Change in Benchmark Rates
Earnings Sensitivity to Change in Benchmark Rates 99% floating-rate loan portfolio indexed to benchmark rates Quarterly Net Interest Income Per Share Sensitivity to Change in Benchmark Rates Term SOFR: 3.66% ($ Impact Per Share) EURIBOR: 2.08% SONIA: 3.73% As of March 31, 2026 0.04 0.03 0.02 $0.02 $
Slide 20: Appendix
Appendix KREF
Slide 21: 1Q'26 Portfolio Details
1Q'26 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: 1Q'26 Portfolio Details
1Q'26 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 23: 1Q'26 Portfolio Details
1Q'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. For Senior Loan 5, the total whole loan is on non-accrua
Slide 24: 1Q'26 Portfolio Activity
1Q'26 Portfolio Activity Loan Portfolio Activity ($ in Millions) (1) Future Funding Obligations(2) Real Estate Assets, CMBS Investments & Other (1) Includes a $17 million loan write-off and an $8 million unrealized loss on FX translation (2) Future funding obligations are generally contingent upon c
Slide 25: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 1.7 years Fully Extended Loan Maturities ($ in Millions) $2,500 $2,000 $2,078 $1,500 $1,430 $1,000 $854 $500 $420 $312 $24 $0 2026 2027 2028 2029 2030 2031 Note: Based on current principal amount. Excludes real estate ow
Slide 26: 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 27: 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 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 December 31, Per Diluted Per Diluted March 31, 2026 Share(1) 2025 Share(1) March 31, 2025 Share(1) Net Income (Loss) Attributable to Common Stockh
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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