Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q3 2025 Earnings Presentation
29 slides from Kkr Real Estate Finance Trust's earnings presentation, Oct 22, 2025
Slide 1: Third Quarter 2025 Supplemental Information
Third Quarter 2025 Supplemental Information OCTOBER 21, 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 $5.3 B $7.7 B 15% Loan Portfolio Financing Capacity KKR Ownership in KREF 100% 58% 77% $686 B Senior Loans Multifamily & Fully Non-Mark-to-Market (2) Global AUM(4)
Slide 4: Third Quarter 2025 Highlights
Third Quarter 2025 Highlights • 3Q 2025 Net Income(1) of $0.12 per diluted share • 3Q 2025 Distributable loss(2) of ($0.03) per diluted share (includes a realized loss of $14 million, or ($0.22) per diluted share) Financials • Book Value per Share (“BVPS”) of $13.78 per share (includes a CECL allowa
Slide 5: 3Q'25 Financial Summary
3Q'25 Financial Summary Income Statement Balance Sheet ($ in Millions) 3Q'25 ($ in Millions) 3Q'25 Net interest income $25.3 Commercial real estate loans, net $5,139.3 Real estate assets (2) 559.5 Other income 6.1 VIE assets, CMBS trust 505.8 Provision for credit losses (1.0) Cash 204.1 Operating ex
Slide 6: Recent Operating Performance
Recent Operating Performance Net Income and Distributable Earnings Dividends and Book Value Per Share ($ in Millions) 3Q'24 2Q'25 3Q'25 3Q'24 2Q'25 3Q'25 Net income (loss): Dividend per share: ($13.0) ($35.4) $8.1 $0.25 $0.25 $0.25 Distributable earnings (loss): Dividend yield on book value per shar
Slide 7: 3Q'25 Loan Originations – Case Studies
3Q'25 Loan Originations – Case Studies Investment Long Island Multifamily Atlanta Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $71 million(1) $61 million Location Melville, NY Atlanta, GA 299-Unit Class A 287-Unit Class A Collateral Multifamily Rental Property
Slide 8: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Total Portfolio(1) Investment Type Interest Rate Type ($ in Millions) $7,916 Fixed $7,752 1% $6,792 $6,272 $5,851 Senior Loans 100% Floating 99% Property Type 4Q'21 4Q'22 4Q'23 4Q'24 3Q'25 Hospitality Other 5% 2% (3) Geography Life Science 14% (2) 4% 12% Multifamil
Slide 9: Portfolio Credit Quality Overview
Portfolio Credit Quality Overview Collected 100% of interest payments due on the loan portfolio in 3Q'25 Loan-to-Value(1) Risk Rating Distribution Loan 0 3 2 3 Count 45 81% 28% 25% 21% 22% 2Q '25 4% 8% 8% 0% 3% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 1 2 3 4 5 Weighted Average LTV : 66% (2) Weig
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 3Q'25, KREF had one loan with a risk rating downgrade added to the watch list and resolved one watch list loan 2Q'25 Watch List Intra-Quarter Activity 3Q'25 Watch List Total Principal: $443 million Risk Rating: 5 Total Principal: $358 million Minneapolis
Slide 12: Case Studies: Watch List Loans
Case Studies: Watch List Loans Investment Minneapolis Office Boston Life Science Loan Type Floating-Rate Senior Loan(1) Floating-Rate Senior Loan Investment Date November 2017 April 2021 Two Class-A Office Buildings Two Buildings Collateral totaling 1.1mm SF totaling 482k SF Loan Purpose Refinance A
Slide 13: Case Studies: Watch List Loans cont.
Case Studies: Watch List Loans cont. Investment Cambridge Life Science San Diego Multifamily Chicago Office Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date December 2021 October 2021 July 2019 Class-A Lab & Office Building Class-A Office Buildi
Slide 14: Overview of Real Estate Assets
Overview of Real Estate Assets Equity(1) of approximately $370 million ($5.65 per share) was held in our Real Estate Assets Real Estate Owned Square Footage/ Investment Amount(2) Investment Amount Location Property Type Acquisition Date Units ($ in millions) per Square Foot/ Unit Mountain View, CA C
Slide 15: Financing Overview: 77% Non-Mark-To-Market
Financing Overview: 77% Non-Mark-To-Market Diversified financing sources totaling $7.7 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 Term Credi
Slide 16: Financing Overview: Term Credit Facilities
Financing Overview: Term Credit Facilities ($ in Millions) Total or Counterparty Weighted Average Drawn $594 $309 $187 $1,091 Capacity $1,000 $500 $400 $1,900 Collateral: Loans / Principal 8 Loans / $853 8 Loans / $521 7 Loans / $330 23 Loans / $1,705 Balance Final Stated Maturity(1) September 2029
Slide 17: Liquidity Overview
Liquidity Overview In addition to the available liquidity below, KREF had $301 million of total unencumbered assets(1) as of September 30, 2025 Sources of Available Liquidity (4) ($ in Millions) $1,000 $900 $29 $800 $700 $600 $700 $500 $904 $933 $400 $300 $200 $100 $204 $204 $0 Cash Undrawn Approved
Slide 18: Earnings Sensitivity to Change in SOFR
Earnings Sensitivity to Change in SOFR 99% floating-rate loan portfolio indexed to Term SOFR Quarterly Net Interest Income Per Share Sensitivity to Change in Market Rates Term SOFR = 4.13% ($ Impact Per Share) As of September 30, 2025 0.04 0.03 $0.02 0.02 $0.01 0.01 $0.00 0.00 (0.01) ($0.01) ($0.01)
Slide 19: Appendix
Appendix KREF
Slide 20: 3Q'25 Portfolio Details
3Q'25 Portfolio Details ($ 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: 3Q'25 Portfolio Details
3Q'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: 3Q'25 Portfolio Details
3Q'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 6, the total whole loan is $199.4 million, including (i) a
Slide 23: 3Q'25 Portfolio Activity
3Q'25 Portfolio Activity Loan Portfolio Activity ($ in Millions) (1) Future Funding Obligations(2) Real Estate Assets & CMBS Investments (1) Includes a $71 million transfer to REO and a $14 million write-off (2) Future funding obligations are generally contingent upon certain events and may not resu
Slide 24: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 1.7 years Fully Extended Loan Maturities ($ in Millions) $3,000 $2,500 $2,530 $2,000 $1,697 $1,500 $1,000 $500 $590 $426 $42 $24 $0 2025 2026 2027 2028 2029 2030 Note: Based on current principal amount. Excludes real est
Slide 25: KREF Debt Maturities
KREF Debt Maturities No final facility maturities until 2027 and no corporate debt due until 2030 The table below may represent estimated earlier repayments based on the maturity dates of underlying loan collateral Upcoming Debt Maturities by Year ($ in Millions) $2,000 $1,500 $1,558 $1,000 $648 $50
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) September 30, 2025 December 31, 2024 Assets Cash and cash equivalents $ 204,094 $ 104,933 Commercial real estate loans, held-for-investment 5,296,610 5,888,622 Less: Allowance for credit losses (157,344) (117,103) Commercia
Slide 27: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net Interest Income Interest income $ 108,019 $ 112,272 $ 140,150 $ 334,258 $ 441,019 Inte
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 September 30, Per Diluted Per Diluted September 30, Per Diluted 2025 Share(1) June 30, 2025 Share(1) 2024 Share(1) Net Income (Loss) Attributable to Common St
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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