Company: KEY-PI
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0000091576-25-000110
Chunk: 27

Company: KEYCORP /NEW/
Filing Date: 2025-08-05
Form: 10-Q
Item: Item 2
Chunk 27
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 $446 million, or 2.7%, driven by increases in nonowner-occupied commercial mortgages in various industries. Nonowner-occupied 

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properties, generally properties for which at least 50% of the debt service is provided by rental income from nonaffiliated third parties, represented 82% of total commercial real estate loans outstanding at June 30, 2025.

Since the global financial crisis in 2008, we have limited our construction business and reduced our overall construction loans from 42% to 17% of commercial real estate loans as of June 30, 2025. Construction loans provide a stream of funding for properties not fully leased at origination to support debt service payments over the term of the contract or project. As of June 30, 2025, 80% of our construction portfolio are multi-family project loans. Our office exposure only represents 4% of commercial real estate loans at period end.

As shown in Figure 9, our commercial real estate loan portfolio includes various property types and geographic locations of the underlying collateral. These loans include commercial mortgage and construction loans in both Consumer Bank and Commercial Bank.

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Figure 9. Commercial Real Estate Loans

 Geographic RegionTotalPercent ofTotalConstructionCommercialMortgageDollars in millionsWestSouthwestCentralMidwestSoutheastNortheastNationalJune 30, 2025Nonowner-occupied:Data Center$— $— $— $— $20 $— $535 $555 3.3 %$86 $468 Diversified1 — — 3 — 10 121 135 0.8 — 135 Industrial46 1 53 146 224 207 129 806 4.8 75 730 Land & Residential9 6 13 11 5 20 — 64 0.4 45 19 Lodging41 — 8 4 45 51 65 214 1.3 — 214 Medical Office36 — 31 1 20 90 79 257 1.5 — 257 Multifamily1,284 447 1,300 1,249 1,964 1,237 374 7,855 47.1 2,266 5,588 Office85 1 119 71 84 218 111