Kkr Real Estate Finance Trust Inc. · NYSE:KREF
Kkr Real Estate Finance Trust — Q2 2026 Earnings Presentation
29 slides from Kkr Real Estate Finance Trust's earnings presentation, Jul 22, 2026
Slide 1: Second Quarter 2026 Supplemental Information
Second Quarter 2026 Supplemental Information July 21, 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 $4.5 B $7.0 B 17% Loan Portfolio Financing Capacity KKR Ownership in KREF 100% 60% 79% $758 B Senior Loans Multifamily & Fully Non-Mark-to-Market (2) Global AUM(4) Industria
Slide 4: Second Quarter 2026 Highlights
Second Quarter 2026 Highlights • 2Q 2026 Net loss(1) of ($1.95) per diluted share (includes a loan loss provision(2) of ($1.92) per diluted share) Financials • 2Q 2026 Distributable loss(3) of ($0.58) per diluted share (includes a realized loss of ($0.68) per diluted share) • Book Value per Share (“
Slide 5: 2Q'26 Financial Summary
2Q'26 Financial Summary Income Statement Balance Sheet ($ in Millions) 2Q'26 ($ in Millions) 2Q'26 Net interest income $18.2 Commercial real estate loans, net $4,151.6 Real estate assets (2) 717.6 Other income 2.8 Consolidated VIE assets, CMBS trusts 1,241.3 Provision for loan losses (119.8) Cash 83
Slide 6: 2Q'26 Loan Originations – Case Studies
2Q'26 Loan Originations – Case Studies Investment Spain Multifamily Portfolio Los Angeles Multifamily Portfolio California Office Portfolio Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan(1) Floating-Rate Senior Loan Loan Size $158 million(2) $154 million $36 million(3) Location Variou
Slide 7: KREF Loan Portfolio by the Numbers
KREF Loan Portfolio by the Numbers Investment Type Interest Rate Type Geography Fixed 2% 4% 9% Senior 6% Loans 100% 6% Washington, D.C. Floating 98% 15% 8% 11% 13% Property Type Other U.S. <4%: 17% Hospitality Other 3% 3% (2) Life Science (1) 13% Multifamily Industrial 46% 14% 7% Office Class-B Offi
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 199.4 194.4 116.3 182 0.0 Chicago, IL Jul-19 Refinance 105.0 90.7 53.8 87 2.1 Risk-Rated 5: Total / Weigh
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: Portfolio Credit Quality Overview
Portfolio Credit Quality Overview Loan-to-Value(1) Risk Rating Distribution Loan 0 2 41 4 4 Count 37% 74% 24% 1Q '26 15% 16% 8% 14% 6% 6% 0% 0 - 60% 60 - 65% 65 - 70% 70 - 75% 75 - 80% 1 2 3 4 5 Weighted Average LTV : 66% (2) Weighted Average Risk Rating : 3.3 (2) Loan 0 2 39 1 5 Count 39% 78% 2Q '2
Slide 12: Watch List Migrations Quarter-over-Quarter
Watch List Migrations Quarter-over-Quarter In 2Q'26, KREF had three risk rating downgrades, including one new addition to the watch list, two resolutions and one loan reclassified as held-for-sale 1Q'26 Watch List Intra-Quarter Activity 2Q'26 Watch List Total Principal: $704 million Risk Rating: 5 T
Slide 13: Case Studies: Watch List Loans
Case Studies: Watch List Loans Investment Boston Life Science Minneapolis Office San Diego Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date August 2022 November 2017 October 2021 418k RSF Class-A Two Class-A Office Buildings Collater
Slide 14: Case Studies: Watch List Loans cont.
Case Studies: Watch List Loans cont. Investment Chicago Office Carrollton Multifamily Dallas Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date July 2019 April 2022 April 2022 Class-A Office Building Collateral 320-unit Multifamily 356
Slide 15: Overview of Real Estate Assets
Overview of Real Estate Assets Equity(1) of approximately $535 million ($9.07 per share) was held in our Real Estate Assets Real Estate Owned Square Footage/ Investment Amount(2) Investment Amount Location Property Type Acquisition Date Units ($ in millions) per Square Foot/ Unit Mountain View, CA C
Slide 16: Financing Overview: 79% Non-Mark-To-Market
Financing Overview: 79% Non-Mark-To-Market Diversified financing sources totaling $7.0 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 $278 $160 $78 $917 Capacity $600 $500 $398(1) $150 $1,648 Collateral: Loans / 7 Loans / $596 7 Loans / $496 2 Loans / $213 4 Loans / $180 20 Loans / $1,484 Principal Balance Final
Slide 18: Liquidity Overview
Liquidity Overview In addition to the available liquidity below, KREF had $626 million of total unencumbered assets(1) as of June 30, 2026 Sources of Available Liquidity (4) ($ in Millions) $800 $700 $34 $600 $500 $350 $400 $722 $688 $300 $83 $200 $338 $255 $100 $— Cash & Loan Principal Repayments U
Slide 19: Earnings Sensitivity to Change in Benchmark Rates
Earnings Sensitivity to Change in Benchmark Rates 98% floating-rate loan portfolio indexed to benchmark rates Quarterly Net Interest Income Per Share Sensitivity to Change in Benchmark Rates Term SOFR: 3.65% ($ Impact Per Share) EURIBOR: 2.20% SONIA: 3.73% As of June 30, 2026 0.04 0.03 $0.02 0.02 0.
Slide 20: Appendix
Appendix KREF
Slide 21: 2Q'26 Portfolio Details
2Q'26 Portfolio Details ($ 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: 2Q'26 Portfolio Details
2Q'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: 2Q'26 Portfolio Details
2Q'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 2, the total whole loan has an outstandi
Slide 24: 2Q'26 Portfolio Activity
2Q'26 Portfolio Activity Loan Portfolio Activity ($ in Millions) (1) Future Funding Obligations(2) Real Estate Assets, CMBS Investments & Other (1) Includes a $126 million transfer to REO, $42 million in loan write-offs and a $3 million unrealized loss on FX translation (2) Future funding obligation
Slide 25: Fully Extended Loan Maturities
Fully Extended Loan Maturities Fully extended weighted average loan maturity of 1.9 years Fully Extended Loan Maturities ($ in Millions) $2,000 $1,778 $1,500 $1,000 $930 $863 $500 $484 $421 $24 $0 2026 2027 2028 2029 2030 2031 Note: Based on current principal amount 25
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets (in thousands - except share and per share data) June 30, 2026 December 31, 2025 Assets Cash and cash equivalents $ 83,058 $ 84,617 Commercial real estate loans, held-for-investment 4,373,120 5,347,756 Less: Allowance for credit losses (291,916) (201,924) Commercial real
Slide 27: Consolidated Statements of Income
Consolidated Statements of Income (in thousands - except share and per share data) Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Net Interest Income Interest income $ 85,487 $ 95,906 $ 112,272 Interest expense 67,305 69,717 82,101 Total net interest income 18,182 26,189 30,171 Other
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, 2026 Share(1) March 31, 2026 Share(1) June 30, 2025 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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