# EDGAR Filing Document

**Accession Number:** 0001631596
**File Stem:** 0001628280-25-045722
**Filing Date:** 2025-10
**Character Count:** 335972
**Document Hash:** 8acd820530a1aba960a721dcbc55ab51
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-045722.hdr.sgml**: 20251021

**ACCESSION NUMBER**: 0001628280-25-045722

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 107

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251021

**DATE AS OF CHANGE**: 20251021

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KKR Real Estate Finance Trust Inc.
- **CENTRAL INDEX KEY:** 0001631596
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 472009094
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38082
- **FILM NUMBER:** 251407646

**BUSINESS ADDRESS:**
- **STREET 1:** 30 HUDSON YARDS
- **STREET 2:** SUITE 7500
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001
- **BUSINESS PHONE:** 212-750-8300

**MAIL ADDRESS:**
- **STREET 1:** 30 HUDSON YARDS
- **STREET 2:** SUITE 7500
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001

?xml version='1.0' encoding='ASCII'? kref-20250930

---

| |
|:---|
| **UNITED STATES** |
| **SECURITIES AND EXCHANGE COMMISSION** |
| **Washington, D.C. 20549** |

---

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly period ended September 30, 2025

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from ________________ to ________________

<u>Commission File Number: 001-38082</u>

---

| | |
|:---|:---|
| ![kreflogoa23.jpg](kref-20250930_g1.jpg) | ![kreflogoa23.jpg](kref-20250930_g1.jpg) |
| **KKR Real Estate Finance Trust Inc.** | **KKR Real Estate Finance Trust Inc.** |
| (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) |
| Maryland | 47-2009094 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| 30 Hudson Yards, | Suite 7500 | New York, | NY | 10001 |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

(212) 750-8300

 (Registrant's telephone number, including area code)

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common stock, par value $0.01 per share | KREF | New York Stock Exchange |
| 6.50% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share | KREF PRA | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).&nbsp;&nbsp;&nbsp;&nbsp;☒ Yes&nbsp;&nbsp;&nbsp;&nbsp;☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;Large accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;☐&nbsp;&nbsp;&nbsp;&nbsp;Accelerated filer&nbsp;&nbsp;&nbsp;&nbsp;☒

&nbsp;&nbsp;&nbsp;&nbsp;Non-accelerated filer &nbsp;&nbsp;&nbsp;&nbsp;☐&nbsp;&nbsp;&nbsp;&nbsp;Smaller reporting company&nbsp;&nbsp;&nbsp;&nbsp;☐

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp;☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. &nbsp;&nbsp;&nbsp;&nbsp;☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;☐ Yes&nbsp;&nbsp;&nbsp;&nbsp;☒ No

**The number of shares of the registrant's common stock, par value $0.01 per share, outstanding as of October 17, 2025 was 65,488,680.**

------

**KKR REAL ESTATE FINANCE TRUST INC.**

**FORM 10-Q**

**FOR THE QUARTER ENDED SEPTEMBER 30, 2025**

**INDEX**

---

| | |
|:---|:---|
| | **PAGE** |
| <u>[Part I - Financial Information](#ic4a86cffb702488faf27b8eb9959aae7_16)</u> | <u>[5](#ic4a86cffb702488faf27b8eb9959aae7_16)</u> |
| &nbsp;&nbsp;<u>[Item 1. Condensed Consolidated Financial Statements (Unaudited)](#ic4a86cffb702488faf27b8eb9959aae7_19)</u> | <u>[5](#ic4a86cffb702488faf27b8eb9959aae7_19)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Balance Sheets (Unaudited) as of](#ic4a86cffb702488faf27b8eb9959aae7_22)[September](#ic4a86cffb702488faf27b8eb9959aae7_22)[30, 2025 and December 31, 2024](#ic4a86cffb702488faf27b8eb9959aae7_22)</u> | <u>[5](#ic4a86cffb702488faf27b8eb9959aae7_22)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Income (Unaudited) for the Three and](#ic4a86cffb702488faf27b8eb9959aae7_25)[Nine](#ic4a86cffb702488faf27b8eb9959aae7_25)[Months Ended](#ic4a86cffb702488faf27b8eb9959aae7_25)[September](#ic4a86cffb702488faf27b8eb9959aae7_25)[30, 2025 and 2024](#ic4a86cffb702488faf27b8eb9959aae7_25)</u> | <u>[6](#ic4a86cffb702488faf27b8eb9959aae7_25)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three and](#ic4a86cffb702488faf27b8eb9959aae7_28)[Ni](#ic4a86cffb702488faf27b8eb9959aae7_28)[n](#ic4a86cffb702488faf27b8eb9959aae7_28)[e](#ic4a86cffb702488faf27b8eb9959aae7_28)[Months Ended](#ic4a86cffb702488faf27b8eb9959aae7_28)[September](#ic4a86cffb702488faf27b8eb9959aae7_28)[30, 2025 and 2024](#ic4a86cffb702488faf27b8eb9959aae7_28)</u> | <u>[7](#ic4a86cffb702488faf27b8eb9959aae7_28)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Condensed Consolidated Statements of Cash Flows (Unaudited) for the](#ic4a86cffb702488faf27b8eb9959aae7_31)[Nin](#ic4a86cffb702488faf27b8eb9959aae7_31)[e](#ic4a86cffb702488faf27b8eb9959aae7_31)[Months Ended](#ic4a86cffb702488faf27b8eb9959aae7_31)[September](#ic4a86cffb702488faf27b8eb9959aae7_31)[30, 2025 and 2024](#ic4a86cffb702488faf27b8eb9959aae7_31)</u> | <u>[9](#ic4a86cffb702488faf27b8eb9959aae7_31)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Notes to Condensed Consolidated Financial Statements (Unaudited)](#ic4a86cffb702488faf27b8eb9959aae7_34)</u> | <u>[11](#ic4a86cffb702488faf27b8eb9959aae7_34)</u> |
| &nbsp;&nbsp;<u>[Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#ic4a86cffb702488faf27b8eb9959aae7_124)</u> | <u>[49](#ic4a86cffb702488faf27b8eb9959aae7_124)</u> |
| &nbsp;&nbsp;<u>[Item 3. Quantitative and Qualitative Disclosures about Market Risk](#ic4a86cffb702488faf27b8eb9959aae7_172)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_217)</u> |
| &nbsp;&nbsp;<u>[Item 4. Controls and Procedures](#ic4a86cffb702488faf27b8eb9959aae7_181)</u> | <u>[74](#ic4a86cffb702488faf27b8eb9959aae7_181)</u> |
| <u>[Part II - Other Information](#ic4a86cffb702488faf27b8eb9959aae7_202)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_202)</u> |
| &nbsp;&nbsp;<u>[Item 1. Legal Proceedings](#ic4a86cffb702488faf27b8eb9959aae7_205)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_205)</u> |
| &nbsp;&nbsp;<u>[Item 1A. Risk Factors](#ic4a86cffb702488faf27b8eb9959aae7_208)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_208)</u> |
| &nbsp;&nbsp;<u>[Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#ic4a86cffb702488faf27b8eb9959aae7_211)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_211)</u> |
| &nbsp;&nbsp;<u>[Item 3. Defaults Upon Senior Securities](#ic4a86cffb702488faf27b8eb9959aae7_217)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_217)</u> |
| &nbsp;&nbsp;<u>[Item 4. Mine Safety Disclosures](#ic4a86cffb702488faf27b8eb9959aae7_220)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_220)</u> |
| &nbsp;&nbsp;<u>[Item 5. Other Information](#ic4a86cffb702488faf27b8eb9959aae7_223)</u> | <u>[75](#ic4a86cffb702488faf27b8eb9959aae7_223)</u> |
| &nbsp;&nbsp;<u>[Item 6. Exhibits](#ic4a86cffb702488faf27b8eb9959aae7_226)</u> | <u>[76](#ic4a86cffb702488faf27b8eb9959aae7_226)</u> |
| <u>[Signatures](#ic4a86cffb702488faf27b8eb9959aae7_229)</u> | <u>[77](#ic4a86cffb702488faf27b8eb9959aae7_229)</u> |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

There are many factors that may cause our actual results to differ materially from the forward-looking statements, including factors set forth under Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the "Form 10-K") and Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Form 10-Q, as such factors may be updated from time to time in our other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov and on the investor relations section of our website at www.kkrreit.com. You should evaluate all forward-looking statements made in this Form 10-Q in the context of these risks and uncertainties.

We caution you that the risks, uncertainties and other factors referenced below may not contain all of the risks, uncertainties and other factors that are important to you. In addition, we cannot assure you that we will realize the results, benefits or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected. All forward-looking statements in this Form 10-Q apply only as of the date made and are expressly qualified in their entirety by the cautionary statements included in this Form 10-Q and in other filings we make with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Except where the context requires otherwise, the terms "Company," "we," "us," "our" and "KREF" refer to KKR Real Estate Finance Trust Inc., a Maryland corporation, and its subsidiaries; "Manager" refers to KKR Real Estate Finance Manager LLC, a Delaware limited liability company, our external manager; and "KKR" refers to KKR & Co. Inc., a Delaware corporation, and its subsidiaries.

**SUMMARY OF MATERIAL RISKS**

The following is a summary of the risk factors associated with investing in our securities. You should read this summary together with a more detailed description of these risks in the "Risk Factors" section of this report and in other filings that we make from time to time with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the general political, economic, competitive, and other conditions in the United States and in any foreign jurisdictions in which we invest and their impact on our loan portfolio, financial condition and business operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in interest rates and credit spreads could reduce our ability to generate income on our loans and other investments, which could lead to a significant decrease in our results of operations, cash flows and the market value of our investments and could materially impair our ability to pay distributions to our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse developments in the real estate and real estate capital markets could negatively impact our performance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse legislative or regulatory developments, including with respect to tax laws, securities laws, and the laws governing financial and lending institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse developments in the availability of attractive loan and other investment opportunities whether they are due to competition, regulation or otherwise, could adversely affect our results of operations;

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse economic trends and changes in economic conditions, including as a result of heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, increased tariffs and trade tensions, geopolitical conditions, labor shortages, currency fluctuations and challenges in global supply chains;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• events giving rise to increases in our current expected credit loss reserve;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced demand for office, multifamily or retail space, and/or hybrid work schedules which allow work from remote locations other than the employer's office premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our results of operations, financial condition, liquidity position, and business could be adversely impacted if we experience (i) difficulty accessing financing or raising capital, including due to a significant dislocation in or shut-down of the capital markets, (ii) a reduction in the yield on our investments, (iii) an increase in the cost of our financing, (iv) an inability to borrow incremental amounts or an obligation to repay amounts under our financing arrangements, or (v) defaults by borrowers in paying debt service on outstanding loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• deterioration in the performance of the properties securing our investments that may cause deterioration in the performance of our investments, adversely impact certain of our financing arrangements and our liquidity, risks in collection of contractual interest payments, and potentially, principal losses to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty or delays in redeploying the proceeds from repayments of our existing investments may cause our financial performance to decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acts of God such as hurricanes, earthquakes and other natural disasters, pandemics, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/or losses to us or the owners and operators of the real estate securing our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased competition from entities engaged in mortgage lending and/or investing in our target assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conflicts with KKR and its affiliates, including our Manager, could result in decisions that are not in the best interests of our stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are dependent on our Manager and its access to KKR's investment professionals and resources. We may not find a suitable replacement for the Manager if the Management Agreement is terminated, or if key personnel leave the employment of KKR or otherwise become unavailable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes and our exclusion from registration under the Investment Company Act of 1940, as amended (the "Investment Company Act"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• authoritative accounting principles generally accepted in the United States of America ("GAAP") or policy changes from such standard-setting bodies such as the Financial Accounting Standards Board (the "FASB"), the Securities and Exchange Commission (the "SEC"), the Internal Revenue Service, the New York Stock Exchange and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**PART I — FINANCIAL INFORMATION**

**ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**KKR Real Estate Finance Trust Inc. and Subsidiaries** 

 **Condensed Consolidated Balance Sheets (Unaudited)**

(Amounts in thousands, except share and per share data)

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **Assets** | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $204094 | $104933 |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans, held-for-investment | 5296610 | 5888622 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Allowance for credit losses | (157344) | (117103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans, held-for-investment, net | 5139266 | 5771519 |
| &nbsp;&nbsp;&nbsp;Real estate owned, held for investment, net | 338937 | 262479 |
| &nbsp;&nbsp;&nbsp;Real estate owned assets, held for sale | 127871 | 56554 |
| &nbsp;&nbsp;&nbsp;Equity method investment, real estate asset | 92741 | 81708 |
| &nbsp;&nbsp;&nbsp;Equity method investment, CMBS B-Pieces | 35540 | 35598 |
| &nbsp;&nbsp;&nbsp;Variable interest entity assets, CMBS trust, at fair value | 505820 | **—** |
| &nbsp;&nbsp;&nbsp;Accrued interest receivable | 25745 | 28754 |
| &nbsp;&nbsp;&nbsp;Other assets | 14960 | 8853 |
| **Total Assets** | $**6484974** | $**6350398** |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;Secured financing agreements, net | $2699119 | $2798674 |
| &nbsp;&nbsp;&nbsp;Collateralized loan obligations, net | 1324409 | 1766104 |
| &nbsp;&nbsp;&nbsp;Secured term loan, net | 633541 | 333853 |
| &nbsp;&nbsp;&nbsp;Dividends payable | 16307 | 17178 |
| &nbsp;&nbsp;&nbsp;Accrued interest payable | 12680 | 19939 |
| &nbsp;&nbsp;&nbsp;Real estate owned liabilities, held for sale | 1132 | 1328 |
| &nbsp;&nbsp;&nbsp;Variable interest entity liabilities, CMBS trust, at fair value | 496703 |  |
| &nbsp;&nbsp;&nbsp;Due to affiliates | 6092 | 5919 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 12878 | 8524 |
| **Total Liabilities** | **5202861** | **4951519** |
| **Commitments and Contingencies (Note 13)** | **—** | **—** |
| **Equity** |  |  |
| &nbsp;&nbsp;Preferred Stock, $0.01 par value, 50,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A cumulative redeemable preferred stock, (13,110,000 shares issued and outstanding as of September 30, 2025 and December 31, 2024); liquidation preference of $327,750, or $25.00 per share | 131 | 131 |
| &nbsp;&nbsp;Common stock, $0.01 par value, 300,000,000 authorized (65,227,255 and 68,713,596 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) | 652 | 686 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 1687029 | 1714684 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (458049) | (370471) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total KKR Real Estate Finance Trust Inc. Stockholders' Equity** | 1229763 | 1345030 |
| &nbsp;&nbsp;Noncontrolling interests in equity of consolidated joint ventures | 52350 | 53849 |
| **Total Equity** | **1282113** | **1398879** |
| **Total Liabilities and Equity** | $**6484974** | $**6350398** |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**KKR Real Estate Finance Trust Inc. and Subsidiaries** 

 **Condensed Consolidated Statements of Income (Unaudited)**

(Amounts in thousands, except share and per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Interest Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $108019 | $140150 | $334258 | $441019 |
| &nbsp;&nbsp;&nbsp;Interest expense | 82685 | 103145 | 247412 | 324437 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net interest income | 25334 | 37005 | 86846 | 116582 |
| **Other Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue from real estate owned operations | 4742 | 8539 | 11656 | 19302 |
| &nbsp;&nbsp;&nbsp;Income (loss) from equity method investments | (105) | 156 | (925) | 1619 |
| &nbsp;&nbsp;&nbsp;Change in net assets of consolidated variable interest entity, CMBS trust | 347 |  | 388 |  |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sale of investments |  |  | 1192 | (615) |
| &nbsp;&nbsp;&nbsp;Other miscellaneous income | 1096 | 1320 | 3344 | 4544 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income | 6080 | 10015 | 15655 | 24850 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Provision for credit losses, net | 975 | 38200 | 75686 | 76011 |
| &nbsp;&nbsp;&nbsp;Expenses from real estate owned operations | 7302 | 5488 | 18954 | 17378 |
| &nbsp;&nbsp;&nbsp;Management fee to affiliate | 5619 | 5901 | 17153 | 18614 |
| &nbsp;&nbsp;&nbsp;General and administrative | 4746 | 4668 | 14258 | 14455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 18642 | 54257 | 126051 | 126458 |
| **Income (Loss) Before Income Taxes** | **12772** | **(7237)** | **(23550)** | **14974** |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 91 |  | 203 |
| **Net Income (Loss)** | **12772** | **(7328)** | **(23550)** | **14771** |
| &nbsp;&nbsp;Net income (loss) attributable to noncontrolling interests | (1006) | 60 | (2741) | (565) |
| **Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries** | **13778** | **(7388)** | **(20809)** | **15336** |
| &nbsp;&nbsp;&nbsp;Preferred stock dividends | 5326 | 5326 | 15978 | 15978 |
| &nbsp;&nbsp;&nbsp;Participating securities' share in earnings | 373 | 277 | 1109 | 865 |
| **Net Income (Loss) Attributable to Common Stockholders** | $**8079** | $**(12991)** | $**(37896)** | $**(1507)** |
| **Net Income (Loss) Per Share of Common Stock** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | $0.12 | $(0.19) | $(0.56) | $(0.02) |
| **Weighted Average Number of Shares of Common Stock Outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | 65876727 | 69434938 | 67267388 | 69414990 |
| **Dividends Declared per Share of Common Stock** | $0.25 | $0.25 | $0.75 | $0.75 |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**KKR Real Estate Finance Trust Inc. and Subsidiaries**

 **Condensed Consolidated Statements of Changes in Equity (Unaudited)**

(Amounts in thousands, except share data)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series A Preferred Stock** | **Series A Preferred Stock** | **Common Stock** | **Common Stock** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Repurchased Stock** | **Total KKR Real Estate Finance Trust Inc. Stockholders' Equity** | **Noncontrolling Interests in Equity of Consolidated Joint Ventures** | **Total Equity** |
| | **Shares** | **Par Value** | **Shares** | **Par Value** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Repurchased Stock** | **Total KKR Real Estate Finance Trust Inc. Stockholders' Equity** | **Noncontrolling Interests in Equity of Consolidated Joint Ventures** | **Total Equity** |
| **Balance at December 31, 2024** | **13110000** | $**131** | **68713596** | $**686** | $**1714684** | $**(370471)** | $**—** | $**1345030** | $**53849** | $**1398879** |
| &nbsp;&nbsp;&nbsp;Repurchase and retirement of common stock |  |  | (889100) | (8) | (9823) |  |  | (9831) |  | (9831) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation, net |  |  |  |  | 2127 |  |  | 2127 |  | 2127 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | (4861) |  | (4861) | (888) | (5749) |
| &nbsp;&nbsp;&nbsp;Contribution by noncontrolling interests |  |  |  |  |  |  |  |  | 774 | 774 |
| &nbsp;&nbsp;Series A preferred dividends declared, $0.41 per share |  |  |  |  |  | (5326) |  | (5326) |  | (5326) |
| &nbsp;&nbsp;Common dividends declared, $0.25 per share |  |  |  |  |  | (16956) |  | (16956) |  | (16956) |
| &nbsp;&nbsp;Participating security dividends declared, $0.25 per share |  |  |  |  |  | (363) |  | (363) |  | (363) |
| **Balance at March 31, 2025** | **13110000** | $**131** | **67824496** | $**678** | $**1706988** | $**(397977)** | $**—** | $**1309820** | $**53735** | $**1363555** |
| &nbsp;&nbsp;&nbsp;Repurchase and retirement of common stock |  |  | (2170904) | (21) | (20043) |  |  | (20064) |  | (20064) |
| &nbsp;&nbsp;&nbsp;Stock-based compensation, net |  |  | 22540 | \* | 2141 |  |  | 2141 |  | 2141 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | (29726) |  | (29726) | (847) | (30573) |
| &nbsp;&nbsp;&nbsp;Contribution by noncontrolling interests |  |  |  |  |  |  |  |  | 201 | 201 |
| &nbsp;&nbsp;Series A preferred dividends declared, $0.41 per share |  |  |  |  |  | (5326) |  | (5326) |  | (5326) |
| &nbsp;&nbsp;Common dividends declared, $0.25 per share |  |  |  |  |  | (16419) |  | (16419) |  | (16419) |
| &nbsp;&nbsp;Participating security dividends declared, $0.25 per share |  |  |  |  |  | (373) |  | (373) |  | (373) |
| **Balance at June 30, 2025** | **13110000** | $**131** | **65676132** | $**657** | $**1689086** | $**(449821)** | $**—** | $**1240053** | $**53089** | $**1293142** |
| &nbsp;&nbsp;&nbsp;Repurchase and retirement of common stock | **—** | **—** | **(448877)** | (5) | (4231) |  |  | (4236) |  | (4236) |
| &nbsp;&nbsp;Stock-based compensation, net | **—** | **—** | **—** |  | 2174 |  |  | 2174 |  | 2174 |
| &nbsp;&nbsp;Net income (loss) | **—** | **—** | **—** |  |  | 13778 |  | 13778 | (1006) | 12772 |
| &nbsp;&nbsp;Contribution by noncontrolling interest |  |  |  |  |  |  |  |  | 267 | 267 |
| &nbsp;&nbsp;Series A preferred dividends declared, $0.41 per share |  |  |  |  |  | (5326) |  | (5326) |  | (5326) |
| &nbsp;&nbsp;Common dividends declared, $0.25 per share |  |  |  |  |  | (16307) |  | (16307) |  | (16307) |
| &nbsp;&nbsp;Participating security dividends declared, $0.25 per share |  |  |  |  |  | (373) |  | (373) |  | (373) |
| **Balance at September 30, 2025** | **13110000** | $**131** | **65227255** | $**652** | $**1687029** | $**(458049)** | $**—** | $**1229763** | $**52350** | $**1282113** |

---

\* Rounds to zero.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series A Preferred Stock** | **Series A Preferred Stock** | **Common Stock** | **Common Stock** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Repurchased Stock** | **Total KKR Real Estate Finance Trust Inc. Stockholders' Equity** | **Noncontrolling Interests in Equity of Consolidated Joint Ventures** | **Total Equity** |
| | **Shares** | **Par Value** | **Shares** | **Par Value** | **Additional Paid-In Capital** | **Accumulated Deficit** | **Repurchased Stock** | **Total KKR Real Estate Finance Trust Inc. Stockholders' Equity** | **Noncontrolling Interests in Equity of Consolidated Joint Ventures** | **Total Equity** |
| **Balance at December 31, 2023** | **13110000** | $**131** | **69313860** | $**693** | $**1815077** | $**(314370)** | $**(96764)** | $**1404767** | $**(585)** | $**1404182** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation, net |  |  |  |  | 2296 |  |  | 2296 |  | 2296 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | (3108) |  | (3108) | (321) | (3429) |
| &nbsp;&nbsp;Series A preferred dividends declared, $0.41 per share |  |  |  |  |  | (5326) |  | (5326) |  | (5326) |
| &nbsp;&nbsp;Common dividends declared, $0.25 per share |  |  |  |  |  | (17328) |  | (17328) |  | (17328) |
| &nbsp;&nbsp;Participating security dividends declared, $0.25 per share |  |  |  |  |  | (305) |  | (305) |  | (305) |
| **Balance at March 31, 2024** | **13110000** | $**131** | **69313860** | $**693** | $**1817373** | $**(340437)** | $**(96764)** | $**1380996** | $**(906)** | $**1380090** |
| &nbsp;&nbsp;&nbsp;Retirement of repurchased stock |  |  |  |  | (96764) |  | 96764 |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation, net |  |  | 19348 | \* | 2225 |  |  | 2225 |  | 2225 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | 25832 |  | 25832 | (304) | 25528 |
| &nbsp;&nbsp;&nbsp;Contribution by noncontrolling interests |  |  |  |  |  |  |  |  | 54331 | 54331 |
| &nbsp;&nbsp;Series A preferred dividends declared, $0.41 per share |  |  |  |  |  | (5326) |  | (5326) |  | (5326) |
| &nbsp;&nbsp;Common dividends declared, $0.25 per share |  |  |  |  |  | (17333) |  | (17333) |  | (17333) |
| &nbsp;&nbsp;Participating security dividends declared, $0.25 per share |  |  |  |  |  | (283) |  | (283) |  | (283) |
| **Balance at June 30, 2024** | **13110000** | $**131** | **69333208** | $**693** | $**1722834** | $**(337547)** | $**—** | $**1386111** | $**53121** | $**1439232** |
| &nbsp;&nbsp;&nbsp;Stock-based compensation, net |  |  |  |  | 2180 |  |  | 2180 |  | 2180 |
| &nbsp;&nbsp;&nbsp;Net income (loss) |  |  |  |  |  | (7388) |  | (7388) | 60 | (7328) |
| &nbsp;&nbsp;&nbsp;Contribution by noncontrolling interests |  |  |  |  |  |  |  |  | 233 | 233 |
| &nbsp;&nbsp;Series A preferred dividends declared, $0.41 per share |  |  |  |  |  | (5326) |  | (5326) |  | (5326) |
| &nbsp;&nbsp;Common dividends declared, $0.25 per share |  |  |  |  |  | (17333) |  | (17333) |  | (17333) |
| &nbsp;&nbsp;Participating security dividends declared, $0.25 per share |  |  |  |  |  | (277) |  | (277) |  | (277) |
| **Balance at September 30, 2024** | **13110000** | $**131** | **69333208** | $**693** | $**1725014** | $**(367871)** | $**—** | $**1357967** | $**53414** | $**1411381** |

---

\* Rounds to zero.

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**KKR Real Estate Finance Trust Inc. and Subsidiaries** 

**Condensed Consolidated Statements of Cash Flows (Unaudited)**

(Amounts in thousands)

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| **Cash Flows From Operating Activities** |  |  |
| &nbsp;&nbsp;Net income (loss) | $(23550) | $14771 |
| &nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accretion of deferred loan fees and discounts | (12104) | (13448) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment-in-kind interest | (1181) | (603) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred debt issuance costs and discounts | 10833 | 13073 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Income) loss from equity method investments | 3097 | 642 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net assets of consolidated variable interest entity, CMBS trust | (96) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for credit losses, net | 75686 | 76011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1711 | 488 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 6442 | 6702 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of investments | (1192) | 615 |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Assets related to real estate owned, held for sale, net of liabilities | (1529) | 3239 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest receivable, net | 3008 | 8650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | 1209 | 1400 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest payable | (7259) | 2556 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to affiliates | 174 | (622) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 299 | 767 |
| **Net cash provided by (used in) operating activities** | **55548** | **114241** |
| **Cash Flows From Investing Activities** |  |  |
| &nbsp;&nbsp;Proceeds from principal repayments of commercial real estate loans | 1112490 | 959175 |
| &nbsp;&nbsp;Originations and fundings of commercial real estate loans | (706368) | (239883) |
| &nbsp;&nbsp;Capital expenditures on real estate owned | (2875) | (8086) |
| &nbsp;&nbsp;Payment to acquire real estate owned | (10651) | (363) |
| &nbsp;&nbsp;Net proceeds (payment) on sale of real estate owned, held for investment | 5866 |  |
| &nbsp;&nbsp;Net proceeds (payment) on sale of real estate owned, held for sale | 24395 | (1092) |
| &nbsp;&nbsp;Payment to acquire equity method investment, real estate asset |  | (627) |
| &nbsp;&nbsp;Contributions to equity method investment, real estate asset | (14072) | (484) |
| &nbsp;&nbsp;Payment to acquire interests in CMBS trust | (9021) | **—** |
| **Net cash provided by (used in) investing activities** | **399764** | **708640** |
| **Cash Flows From Financing Activities** |  |  |
| &nbsp;&nbsp;Proceeds from borrowings under secured financing agreements | 1288799 | 464387 |
| &nbsp;&nbsp;Proceeds from issuance of secured term loan | 310765 |  |
| &nbsp;&nbsp;Proceeds from noncontrolling interest contributions | 1242 | 233 |
| &nbsp;&nbsp;Principal repayments on borrowings under secured financing agreements | (1386916) | (1237963) |
| &nbsp;&nbsp;Principal repayments on borrowings under collateralized loan obligations | (441752) |  |
| &nbsp;&nbsp;Principal repayments on borrowings under secured term loan | (3000) |  |
| &nbsp;&nbsp;Payments of debt and collateralized debt obligation issuance costs | (23199) | (6264) |
| &nbsp;&nbsp;Payments of common stock dividends | (50553) | (64466) |
| &nbsp;&nbsp;Payments of preferred stock dividends | (15978) | (15978) |
| &nbsp;&nbsp;Payments to repurchase common stock | (34131) |  |
| **Net cash provided by (used in) financing activities** | **(354723)** | **(860051)** |
| **Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash** | 100589 | (37170) |
| **Cash, Cash Equivalents and Restricted Cash at Beginning of Period** | 106547 | 148313 |
| **Cash, Cash Equivalents and Restricted Cash at End of Period** | $**207136** | $**111143** |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| **Reconciliation of cash, cash equivalents and restricted cash** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $204094 | $108795 |
| &nbsp;&nbsp;Restricted cash (Note 9) | 3042 | 2348 |
| **Total cash, cash equivalents and restricted cash shown in the Condensed Consolidated Statements of Cash Flows** | $**207136** | $**111143** |
| **Supplemental Disclosure of Cash Flow Information** |  |  |
| &nbsp;&nbsp;Cash paid during the period for interest | $243838 | $308807 |
| &nbsp;&nbsp;Cash paid during the period for income taxes | 1 | 248 |
| **Supplemental Schedule of Non-Cash Investing and Financing Activities** |  |  |
| &nbsp;&nbsp;Dividend declared, not yet paid | 16307 | 17333 |
| &nbsp;&nbsp;Loan principal repayments held by a servicer | 1500 | 10000 |
| &nbsp;&nbsp;Deferred financing costs, not yet paid | 517 | 1747 |
| &nbsp;&nbsp;Acquisition of real estate owned | 164900 | 175000 |
| &nbsp;&nbsp;Acquisition of other assets related to real estate owned | 1385 | 240 |
| &nbsp;&nbsp;Assumption of other liabilities related to real estate owned | (2081) | (807) |
| &nbsp;&nbsp;Transfer of senior loan to real estate owned | 162865 | 120052 |
| &nbsp;&nbsp;Consolidation of variable interest entities, CMBS Trust (incremental assets and liabilities) | 482974 |  |
| &nbsp;&nbsp;Noncontrolling interest contribution to real estate owned |  | 54331 |
| &nbsp;&nbsp;Transfer of senior loan to equity method investment, real estate asset |  | 82008 |
| &nbsp;&nbsp;Sale of real estate owned, held for sale, net of closing costs |  | 28948 |
| &nbsp;&nbsp;Seller financing provided on sale of real estate owned, held for sale, net |  | 30040 |
| &nbsp;&nbsp;Loan funding held in escrow |  | 7325 |

---

See Notes to Condensed Consolidated Financial Statements.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 1. Business and Organization**

KKR Real Estate Finance Trust Inc. (together with its consolidated subsidiaries, referred to throughout this report as the "Company" or "KREF") is a Maryland corporation that was formed and commenced operations on October 2, 2014 as a mortgage real estate investment trust ("REIT") that focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate ("CRE") assets.

KREF has elected and intends to maintain its qualification to be taxed as a REIT under the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), for U.S. federal income tax purposes. As such, KREF will generally not be subject to U.S. federal income tax on that portion of its income that it distributes to stockholders if it distributes at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. See Note 17 regarding taxes applicable to KREF.

KREF is externally managed by KKR Real Estate Finance Manager LLC ("Manager"), an indirect subsidiary of KKR & Co. Inc. (together with its subsidiaries, "KKR"), through a management agreement ("Management Agreement") pursuant to which the Manager provides a management team and other professionals who are responsible for implementing KREF's business strategy, subject to the supervision of KREF's board of directors. For its services, the Manager is entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement (Note 15).

As of September 30, 2025, KKR beneficially owned 10,000,001 shares, or 15.3% of KREF's outstanding common stock.

KREF's principal business activities are related to the origination and purchase of credit investments related to commercial real estate. KREF's Chief Executive Officer is the Chief Operating Decision Maker ("CODM") who allocates resources and assesses financial performance. The CODM reviews net income (loss) attributable to KREF and assesses the performance of KREF's current portfolio of leveraged and unleveraged commercial real estate loans and makes operating decisions accordingly. As a result, KREF conducts its business as a single operating segment. All expense categories on the Condensed Consolidated Statements of Operations are significant and there are no other significant segment expenses that would require disclosure.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 2. Summary of Significant Accounting Policies**

***Basis of Presentation*** — The unaudited condensed consolidated financial statements and accompanying notes of KREF are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and instructions to Form 10-Q. The condensed consolidated financial statements, including the accompanying notes, are unaudited and exclude some of the disclosures required in annual financial statements. The condensed consolidated financial statements include the accounts of KREF and its consolidated subsidiaries, and all intercompany transactions and balances have been eliminated. In the opinion of management, all adjustments considered necessary for a fair presentation of KREF's financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with KREF's Annual Report on Form 10-K.

***Use of Estimates*** — The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Such estimates include, but are not limited to, the determination of allowance for credit loss, asset impairment or loan write-off, and fair value recorded or disclosed. Actual results could materially differ from those estimates.

***Consolidation*** — KREF consolidates those entities that (i) it controls through either majority ownership or voting rights or (ii) management determines that KREF is the primary beneficiary of entities deemed to be variable interest entities ("VIEs").

***Variable Interest Entities*** — VIEs are entities (i) in which equity investors do not have an interest with the characteristics of a controlling financial interest, (ii) that do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or (iii) established with non-substantive voting rights. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and that has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could be potentially significant to the VIE (Note 10).

To assess whether KREF has the power to direct the activities of a VIE that most significantly impact the VIE's economic performance, KREF considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE's economic performance; and second, identifying which party, if any, has power to direct those activities. To assess whether KREF has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE, KREF considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE.

*Commercial Mortgage-Backed Securities* — KREF consolidates trusts that issue beneficial ownership interests in commercial real estate loans (commonly referred to as commercial mortgage-backed securities, or "CMBS") when management determines that such trusts are VIEs and that KREF is the primary beneficiary of such VIEs.

Management believes that the performance of the commercial real estate loans underlying CMBS issuances most significantly impact the economic performance of such trusts, and the primary beneficiary is generally the party that has the power to direct activities that most significantly affect those assets' performance. The subordinated tranches with first loss risk typically form the controlling class, which grants the holder the unilateral right to appoint and remove the special servicer of these trusts. The special servicer plays a critical role in mitigating credit losses by managing delinquent loans.

KREF holds non-investment grade and unrated subordinate tranches, including the controlling class, in the CMBS trust it consolidates. These tranches expose KREF to first loss risk and entitle it to potential residual returns. As the controlling class holder, KREF has the unilateral right to appoint and remove the special servicer and management has concluded that KREF is the primary beneficiary and therefore, consolidates these CMBS trusts. All assets and liabilities of the consolidated CMBS trusts are recorded on KREF's condensed consolidated financial statements. The difference between the consolidated trusts' assets and liabilities represents KREF's interest in the CMBS trusts.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

Assets of a consolidated CMBS trust can only be used to settle the obligations of that trust. These assets are not individually accessible to the CMBS bondholders, and the trust's liabilities are non-recourse to KREF or any other bondholders. The assets of the consolidated trust, primarily commercial mortgage loans and related interest accruals, are presented within "Variable interest entity assets, CMBS trust, at fair value", and the liabilities of the consolidated trust, primarily obligations to the external CMBS holders and related interest accruals, are presented within "Variable interest entity liabilities, CMBS trust, at fair value" on the Condensed Consolidated Balance Sheets.

KREF elected the fair value option for the initial and subsequent recognition of the assets and liabilities of the consolidated CMBS trust. This approach provides users of the financial statements with more relevant information about the effects of credit risk and other market factors on KREF's investment in CMBS. Since changes in fair value incorporate the interest income and expense of the CMBS trust, management does not consider the separate presentation of the components of fair value changes to be relevant. Management has elected to present these components in aggregate within "Change in net assets of consolidated variable interest entity, CMBS trust" in the Condensed Consolidated Statements of Income.

*Collateralized Loan Obligations* — KREF consolidates collateralized loan obligations ("CLOs") when it determines that the CLO issuers are VIEs and that KREF is the primary beneficiary of such VIEs.

The collateral assets of KREF's CLOs, comprised of a pool of loan participations, are included in "Commercial real estate loans, held-for-investment, net" on the Condensed Consolidated Balance Sheets. The liabilities of KREF's consolidated CLOs consist solely of obligations to the senior CLO noteholders, excluding subordinated CLO tranches held by KREF as such interests are eliminated in consolidation, and are presented in "Collateralized loan obligations, net" on the Condensed Consolidated Balance Sheets. The collateral assets of the CLOs can only be used to settle the obligations of the consolidated CLOs. The interest income from the CLOs' collateral assets and the interest expense on the CLOs' liabilities are presented on a gross basis in "Interest income" and "Interest expense", respectively, in KREF's Condensed Consolidated Statements of Income.

*Real Estate Owned Joint Venture* — KREF has two joint ventures that hold the majority of KREF's investments in real estate owned ("REO") and determined the joint ventures to be VIEs (Note 10). KREF owns a majority of the equity interests in the joint ventures and participates in the profits and losses. Management concluded that KREF is the primary beneficiary of the joint ventures as KREF holds decision-making power over the activities that most significantly impact the economic performance and has the obligation to absorb losses or the right to receive benefits that could be potentially significant to the joint ventures.

***Noncontrolling Interests*** — Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than KREF. These noncontrolling interests do not include redemption features and are presented as "Noncontrolling interests in equity of consolidated joint ventures" on the Condensed Consolidated Balance Sheets.

***Equity Method Investments*** — Investments are accounted for under the equity method when KREF has significant influence over the operations of an investee but does not consolidate that investment. Equity method investments, for which management has not elected a fair value option, are initially recorded at cost and subsequently adjusted for KREF's share of net income or loss and cash contributions and distributions each period.

KREF classifies distributions received from equity method investees using the cumulative earnings approach. Distributions received up to the cumulative earnings from each equity method investee are considered returns on investment and presented within "Cash Flows from Operating Activities" in the Condensed Consolidated Statements of Cash Flows; excess distributions received are considered returns of investment and presented within "Cash Flows From Investing Activities" in the Condensed Consolidated Statements of Cash Flows.

***Fair Value*** — GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation.

Level 1 —&nbsp;&nbsp;&nbsp;&nbsp;Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

Level 2 —&nbsp;&nbsp;&nbsp;&nbsp;Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability.

Level 3 —&nbsp;&nbsp;&nbsp;&nbsp;Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

KREF follows this hierarchy for its financial instruments. The classifications are based on the lowest level of input that is significant to the fair value measurement.

*Valuation Process* — The Manager reviews the valuation of Level 3 financial instruments as part of KKR's quarterly process. KKR's valuation process for Level 3 measurements, as described below, subjected valuations to the review and oversight of various committees. KKR has a global valuation committee assisted by the asset class-specific valuation committees, including a real estate valuation committee that reviews and approves all preliminary Level 3 valuations for real estate assets, including the financial instruments held by KREF. The global valuation committee is responsible for coordinating and implementing KKR's valuation process to ensure consistency in the application of valuation principles across portfolio investments and between periods. All Level 3 valuations are also subject to approval by the global valuation committee.

*Valuation of Commercial Real Estate Loans* — Management considers KREF's commercial real estate loans to be Level 3 assets in the fair value hierarchy as such assets are illiquid, structured investments that are specific to the sponsor, underlying property and its operating performance (Note 16). For financial statement disclosure purposes, on a quarterly basis, management generally engages an independent valuation firm to estimate the fair value of each loan categorized as a Level 3 asset. These loans are generally valued using a discounted cash flow model based on assumptions regarding the collection of principal and interest and estimated market rates. Management reviews the quarterly loan valuation estimates provided by the independent valuation firm. For collateral dependent loans, KREF may apply alternative valuation methods based on the fair value of the underlying collateral. Determination of collateral value involves significant judgment, including assumptions regarding capitalization rates, discount rates, leasing, occupancy rates, and other factors.

*Valuation of Variable Interest Entity, CMBS Trust* — Management classifies the financial assets and liabilities of consolidated CMBS trusts as Level 3 within the fair value hierarchy and has elected the fair value option for these financial instruments within the trusts. KREF has adopted the measurement alternative under Accounting Standards Codification ("ASC") Topic 810, which permits measurement of both the financial assets and liabilities of consolidated CMBS trusts based on the fair value of the financial liabilities, as these are considered more observable than the fair value of the related assets. Accordingly, KREF presents the CMBS issued by the consolidated trusts, excluding any portion retained by KREF, as financial liabilities measured at fair value in its condensed consolidated financial statements. The financial assets of these consolidated CMBS trusts are measured as the aggregated fair value of the liabilities of these trusts, including those held by KREF. Under this approach, "Change in net assets of consolidated variable interest entity, CMBS trust" in the Condensed Consolidated Statements of Income reflects KREF's economic interest in the consolidated CMBS trusts, including (i) change in fair value of CMBS held by KREF, (ii) interest and servicing fees income earned from the CMBS trusts, and (iii) any other residual returns or losses attributable to KREF (Note 8).

*Valuation of CLO Consolidated VIEs* — Management estimates the fair value of the CLO liabilities using prices obtained from an independent valuation firm. If prices received from the independent valuation firm are inconsistent with values determined in connection with management's independent review, management makes inquiries to the independent valuation firm about the prices received and related methods. In the event management determines the price obtained from an independent valuation firm to be unreliable or an inaccurate representation of the fair value of the CLO liabilities (based on considerations given to observable market data), management then compiles evidence independently and presents the independent valuation firm with such evidence supporting a different value. As a result, the independent valuation firm may revise their price after evaluating any additional evidence.

However, if management continues to disagree with the price from the independent valuation firm, in light of evidence that management compiled independently and believes to be compelling, valuations are then prepared using inputs based on non-binding broker quotes obtained from independent, well-known, major financial brokers that are CLO market makers. In validating any non-binding broker quote used in this circumstance, management compares the non-binding quote to the observable market data points in addition to understanding the valuation methodologies used by the market makers. These market participants may utilize a similar methodology as the independent valuation firm to value the CLO liabilities, with the

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

key input of expected yield determined independently based on both observable and unobservable factors. To avoid reliance on any single broker-dealer, management receives a minimum of two non-binding quotes, of which the average is used.

*Other Valuation Matters* — For Level 3 financial assets originated, or otherwise acquired, and financial liabilities assumed during the current calendar quarter that were conducted in an orderly transaction with an unrelated party, management generally believes that the transaction price provides the most observable indication of fair value given the illiquid nature of these financial instruments, unless management is aware of any circumstances that may cause a material change in the fair value through the remainder of the reporting period. For instance, significant changes to the underlying property or its planned operations may cause material changes in the fair value of commercial real estate loans acquired, or originated, by KREF.

KREF's determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of a financial instrument in the form of a range, management selects a value within the range provided by the independent valuation firm, generally the midpoint, to assess the reasonableness of management's estimated fair value for that financial instrument.

Refer to Note 16 for additional information regarding the valuation of KREF's financial assets and liabilities.

***Transfer of Financial Assets and Financing Agreements*** — KREF will, from time to time, transfer loans, securities and other assets as well as finance assets in the form of secured borrowings. In each case, management evaluates whether the transaction constitutes a sale through legal isolation of the transferred financial asset from KREF, the ability of the transferee to pledge or exchange the transferred asset without constraint and the transfer of control of the transferred asset. For transfers that constitute sales, KREF (i) recognizes the financial assets it retains and liabilities it has incurred, if any, (ii) derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished and (iii) recognizes a realized gain, or loss, based upon the excess, or deficient, proceeds received over the carrying value of the transferred asset. KREF does not recognize a gain, or loss, on interests retained, if any, where management elected the fair value option prior to sale.

***Balance Sheet Measurement***

*Cash and Cash Equivalents and Restricted Cash* — KREF considers cash equivalents as highly liquid short-term investments with maturities of 90 days or less when purchased. KREF maintains its cash deposits with major financial institutions. Substantially all such amounts on deposit exceed insured limits.

*Commercial Real Estate Loans Held-For-Investment and Allowance for Credit Losses* — KREF recognizes its investments in commercial real estate loans based on management's intent, and KREF's ability, to hold those investments through their contractual maturity. Management classifies those loans that management does not intend to sell in the foreseeable future, and KREF is able to hold until maturity, as held-for-investment. Loans that are held-for-investment are carried at their aggregate outstanding principal, net of applicable (i) unamortized origination or acquisition premiums and discounts, (ii) unamortized deferred nonrefundable fees and other direct loan origination costs, and (iii) allowance for credit losses, net of write-offs of uncollectible loans. If a loan is determined to be uncollectible, management writes off the uncollectible portion of the loan balance through a charge to "Allowance for credit losses" and the respective loan balance. KREF applies the interest method to amortize origination or acquisition premiums and discounts and deferred nonrefundable fees or other direct loan origination costs, or on a straight-line basis when it approximates the interest method. Loans for which management elects the fair value option at the time of origination, or acquisition, are carried at fair value on a recurring basis.

KREF recognizes and measures the allowance for credit losses under the Current Expected Credit Loss ("CECL") model, which requires a reporting entity to estimate expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance sheet credit exposures such as unfunded loan commitments. The allowance for credit losses is deducted from the respective loans' amortized cost basis on KREF's Condensed Consolidated Balance Sheets. The allowance for credit losses attributed to unfunded loan commitments is included in "Other liabilities" on the Condensed Consolidated Balance Sheets (Note 9).

Commencing in the second quarter of 2024, KREF estimated CECL reserves using the Weighted-Average Remaining Maturity, or the WARM method, which has been identified as a loss-rate method for estimating CECL reserves under GAAP. Under the

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

WARM method, KREF references historical loan loss data across a comparable data set and applies such loss rate to each loan over its expected remaining term, taking into consideration expected economic conditions over the relevant timeframe.

To arrive at a CECL reserve using the WARM method, KREF considers various factors including (i) historical loss experience in the commercial real estate lending market, (ii) timing of expected repayments and expected loan future funding, and (iii) KREF's view of the current and future macroeconomic environment for a reasonable and supportable forecast period. KREF derives a historical loss rate predominately based on a CMBS database with historical losses since 1998 provided by a third party. KREF focuses on the most relevant subset of CMBS data that is determined to be the most comparable to its own portfolio. The historical loss rate is further adjusted to consider expected macroeconomic conditions, such as commercial real estate price indices, unemployment rates and market liquidity, over reasonable and supportable forecast periods. There is significant uncertainty related to future macroeconomic conditions. Therefore, KREF also considers other loan specific credit quality factors such as the risk rating of the loan, a near-term maturity, nature of construction loans, and economic conditions specific to the property type of the underlying collateral.

For collateral dependent loans for which KREF determines foreclosure of the collateral is probable, KREF measures the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral dependent loans for which KREF determines foreclosure is not probable, KREF applies a practical expedient to estimate expected losses using the difference between the collateral's fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. A loan is determined to be collateral dependent if (i) a borrower or sponsor is experiencing financial difficulty, and (ii) the loan is expected to be substantially repaid through the sale of the underlying collateral. Such determination requires the use of significant judgment and can be based on several factors subject to uncertainty. Considerations used in determination of financial difficulty may include, but are not limited to, whether the borrower's operating cash flow is sufficient to cover the current and future debt service requirements, the borrower's ability to refinance the loan, market liquidity and other circumstances that can affect the borrower's ability to satisfy its contractual obligations under the loan agreement.

KREF may adopt other acceptable alternative approaches to estimate the CECL reserve in the future based on factors such as, but not limited to, the type of loan, the underlying collateral and the availability of relevant historical market loan loss data.

*Commercial Real Estate Loans, Held-For-Sale* — Loans that KREF originates or acquires, which KREF is unable to hold, or management intends to sell or otherwise dispose of, in the foreseeable future are classified as held-for-sale and are carried at the lower of amortized cost or fair market value.

*Real Estate Owned* — To maximize recovery from a defaulted loan, KREF may assume legal title or physical possession of the underlying collateral through foreclosure or the execution of a deed in lieu of foreclosure. Foreclosed properties are initially recognized at fair value in accordance with ASC 805 on KREF's Condensed Consolidated Balance Sheets as "Real Estate Owned" when KREF assumes legal title or physical possession. KREF's cost basis in REO equals the estimated fair value on the acquisition date. The value of acquired REO is allocated based on the relative fair values of assets acquired and liabilities assumed, including, but not limited to, land, building, furniture and fixtures, and intangibles.

REO assets held for investment, except for land, are depreciated or amortized using the straight-line method over estimated useful lives of up to 40 years for buildings, up to 15 years for land and building improvements, and the remaining lease terms for lease intangibles. Renovations and/or replacements that improve or extend the life of the REO asset are capitalized and depreciated over their estimated useful lives. The cost of ordinary repairs and maintenance are expensed as incurred.

REO assets are classified as held for sale in the period when they meet the criteria under ASC 360. Once a REO is classified as held for sale, depreciation is suspended and the asset is reported at the lower of its carrying value or fair value less cost to sell. The actual sales price of the REO could differ from the estimated fair value. If circumstances arise that were previously considered unlikely and, as a result, KREF decides not to sell the real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for investment, and (ii) its estimated fair value at the time of reclassification.

REO assets are evaluated for impairment on a quarterly basis. KREF considers the following factors when performing the impairment analysis: (i) significant underperformance relative to anticipated operating results; (ii) significant negative industry and economic outlook or trends; (iii) expected material costs necessary to extend the life or operate the REO asset; and (iv)

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

KREF's ability to hold and dispose of the REO asset in the ordinary course of business. A REO asset is considered for impairment when the sum of estimated future undiscounted cash flows to be generated by the REO asset over the estimated remaining holding period is less than the carrying value of such REO asset. An impairment charge is recorded when the carrying value of the REO exceeds the fair value. When determining the fair value of a REO asset, KREF makes certain assumptions including, but not limited to, projected operating cash flows, comparable selling prices and projected cash flows from the eventual disposition of the REO asset.

For all REO assets (Note 4), KREF may opportunistically transact as suitable opportunities emerge.

*Secured Financing Agreements* — KREF's secured financing agreements, including uncommitted repurchase facilities, term lending agreements, warehouse facility, asset specific financings and term loan facility, are treated as floating-rate collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs (Note 5). Included within KREF's secured financing agreements is KREF's corporate revolving credit agreement ("Revolver"), which is full recourse to certain guarantor wholly-owned subsidiaries of KREF.

*Secured Term Loan, Net* — KREF records its secured term loan at its contractual amount, net of unamortized original issuance discount and deferred financing costs (Note 7) on its Condensed Consolidated Balance Sheets. Any original issuance discount or deferred financing costs are amortized through the maturity date of the secured term loan as additional non-cash interest expense.

*Dividends Payable* — KREF records dividends payable on its common stock and preferred stock upon declaration of such dividends. In September 2025, KREF's board of directors declared a dividend of $0.25 per share of common stock to stockholders of record as of September 30, 2025, which was accrued in "Dividends payable" on KREF's Condensed Consolidated Balance Sheets as of September 30, 2025 and was subsequently paid on October 15, 2025. In July 2025, KREF's board of directors declared a dividend of $0.41 per each issued and outstanding share of the Company's 6.50% Series A Cumulative Redeemable Preferred Stock, which represents an annual dividend of $1.625 per share. The dividend was paid on September 15, 2025 to KREF's preferred stockholders of record as of August 29, 2025.

*Repurchased Stock* — KREF accounts for repurchases of its common stock based on the settlement date and presents repurchased stock in "Repurchased stock" on its Condensed Consolidated Balance Sheets (Note 11). Payments for stock repurchases that are not yet settled as of the reporting date are presented within "Other assets" on the Condensed Consolidated Balance Sheets. Retirement of repurchased stock is recorded as an offset to "Additional paid-in capital" on the Condensed Consolidated Balance Sheets. As of September 30, 2025, all shares repurchased by KREF were retired.

***Income Recognition***

*Interest Income* — KREF accrues interest income on loans based on the outstanding principal amount and contractual terms of the loan. Interest income also includes origination fees, direct loan origination costs and related exit fees for loans that KREF originates, but where management did not elect the fair value option, as a yield adjustment using the interest method over the loan term, or on a straight line basis when it approximates the interest method. KREF expenses origination fees and direct loan origination costs for loans acquired, but not originated, by KREF as well as loans for which management elected the fair value option, as incurred.

*Revenue from Real Estate Owned Operations* — Revenue from REO operations is primarily comprised of rental income, including base rent and reimbursements of property operating expenses. For leases that have fixed and measurable base rent escalations, KREF recognizes base rent on a straight-line basis over the non-cancelable lease terms. The difference between such rental income earned and the cash rent amount is recorded as straight-line rent receivable and presented within "Other assets" on the Condensed Consolidated Balance Sheets. Reimbursement of property operating expenses arises from tenant leases which provide for the recovery of certain operating expenses and real estate taxes of the respective property. This revenue is accrued in the same periods as the expenses are incurred. Rental income is presented within "Revenue from real estate owned operations" in the Condensed Consolidated Statements of Income.

*Other Income* — KREF recognizes interest income earned on its cash balances and miscellaneous fee income in "Other miscellaneous income" on its Condensed Consolidated Statements of Income.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

*Gain (Loss) on Sale of Investments* — KREF recognizes the excess, or deficiency, of net proceeds received less the net carrying value of investments sold, as gains or losses, respectively.

***Expense Recognition***

*Commercial Real Estate Loans, Held-For-Investment —* For each loan in KREF's portfolio, management performs an evaluation, at least quarterly, of credit quality indicators of loans classified as held***-***for-investment using applicable loan, property, market and sponsor information obtained from borrowers, loan servicers and local market participants. Such indicators may include the net present value of the underlying collateral, property operating cash flows, the sponsor's financial wherewithal and competency in managing the property, macroeconomic trends, and property submarket—specific economic factors. The evaluation of these credit quality indicators requires significant judgment by management to determine whether failure to collect contractual amounts is probable.

If management deems that it is probable that KREF will be unable to collect all amounts owed according to the contractual terms of a loan, deterioration in credit quality of that loan is indicated. Management evaluates all available facts and circumstances that might impact KREF's ability to collect outstanding loan balances when determining loan write-offs. These facts and circumstances may vary and may include, but are not limited to, (i) the underlying collateral performance and/or value, (ii) communications with the borrower, (iii) compliance with debt covenants, (iv) events of default by the borrower, or (v) other facts that impact the borrower's ability to pay the contractual amounts due under the terms of the loan.

If management considers a loan to be uncollectible, management writes off the loan through a charge to "Allowance for credit losses" based on the present value of expected future cash flows discounted at the loan's contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. Significant judgment is required in determining collectability and in estimating the resulting credit loss, and actual losses, if any, could materially differ from those estimates.

Loans are placed on nonaccrual status when principal or interest is 90 days or more past due unless the loan is both well secured and in the process of collection, or when repayment of interest and principal is, in management's judgment, in doubt. Interest received on loans placed on nonaccrual status may be accounted for under the cost-recovery method under certain circumstances, whereby interest collected on a loan is a reduction to its amortized cost. Management may return a loan to accrual status when repayment of principal and interest is reasonably assured.

In certain circumstances, KREF may also modify terms of a loan agreement to accommodate a borrower experiencing financial difficulty. Such modifications typically include interest rate reductions, payment extension and modification of loan covenants.

In conjunction with reviewing commercial real estate loans held-for-investment for impairment, KREF evaluates its commercial real estate loans at least once per quarter, assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, underlying real estate performance, values of comparable properties, durability and quality of property cash flows, sponsor experience and financial wherewithal, and the existence of a risk-mitigating loan structure. Additional key considerations include debt service coverage ratios, loan structure, real estate and credit market dynamics, and risk of default or principal loss. Based on a five-point scale, KREF's loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1 (Very Low Risk); 2 (Low Risk); 3 (Medium Risk); 4 (High Risk/Potential for Loss); and 5 (Impaired/Loss Likely).

*Commercial Real Estate Loans, Held-For-Sale* — For commercial real estate loans held-for-sale, KREF applies the lower of cost or fair market value, and may be required, from time to time, to record an impairment.

*Accrued Interest Receivables* — KREF elected not to measure an allowance for credit losses for accrued interest receivables. KREF generally writes off an accrued interest receivable balance when interest is 90 days or more past due unless the loan is both well secured and in the process of collection. Write-offs of accrued interest receivable are recognized as "Provision for (reversal of) credit losses, net" in the Condensed Consolidated Statements of Income.

*Tenant Receivables* — KREF periodically reviews its REO tenant receivables for collectability, taking into consideration changes in factors such as the tenant's payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area where the property is located. Tenant receivables, including receivables arising from the straight-lining of rents, are written-off directly when management deems that the collectability of substantially all future lease payments from a specified lease is not probable, at which point, KREF will begin recognizing

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

revenue on a cash basis, based on actual amounts received (Note 4). Any receivables that are deemed to be uncollectible are recognized as a reduction to "Revenue from real estate owned operations" in the Condensed Consolidated Statements of Income.

*Interest Expense* — KREF expenses contractual interest due in accordance with KREF's financing agreements as incurred.

*Deferred Debt Issuance Costs* — KREF capitalizes and amortizes deferred financing costs incurred in connection with financing arrangements over their respective expected term using the interest method, or on a straight line basis when it approximates the interest method. KREF presents such expensed amounts, as well as deferred amounts written off, as additional interest expense in its Condensed Consolidated Statements of Income.

*General and Administrative Expenses* — KREF expenses general and administrative costs, including legal and audit fees, insurance premiums, and other costs as incurred.

*Management and Incentive Compensation to Affiliate* — KREF expenses management fees and incentive compensation earned by the Manager on a quarterly basis in accordance with the Management Agreement (Note 15).

*Income Taxes* — Certain activities of KREF are conducted through joint ventures that are formed as limited liability companies, taxed as partnerships, and consolidated by KREF. Some of these joint ventures are subject to state and local income taxes, based on the tax jurisdictions in which they operate. In addition, certain activities of KREF are conducted through taxable REIT subsidiaries consolidated by KREF. Taxable REIT subsidiaries are subject to federal, state and local income taxes (Note 17).

As of September 30, 2025 and December 31, 2024, KREF did not have any material deferred tax assets or liabilities arising from future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in accordance with GAAP and their respective tax bases.

KREF recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes in KREF's Condensed Consolidated Statements of Income. As of September 30, 2025, KREF did not have any material uncertain tax positions.

***Stock-Based Compensation***

KREF's stock-based compensation consists of awards issued to employees of the Manager or its affiliates that vest over the life of the awards, as well as restricted stock units issued to certain members of KREF's board of directors. KREF recognizes the compensation cost of stock-based awards to its directors and employees of the Manager or its affiliates on a straight-line basis over the awards' term at their grant date fair value. Certain stock-based awards are entitled to nonforfeitable dividends, at the same rate as those declared on the common stock, during the vesting period. Such nonforfeitable dividends are deducted from "Retained earnings (Accumulated deficit)" in the condensed consolidated financial statements. KREF accounts for forfeitures as they occur. Refer to Note 12 for additional information.

***Earnings per Share***

KREF calculates basic earnings per share ("EPS") using the two-class method, which defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities. The two-class method is an allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights. Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of common stock outstanding for the period.

KREF presents diluted EPS under the more dilutive of the treasury stock and if-converted methods or the two-class method. Under the treasury stock and if-converted methods, the denominator includes weighted average common stock outstanding plus the incremental dilutive shares issuable from restricted stock units and an assumed conversion of convertible instruments. The numerator includes any changes in income (loss) attributable to common stockholders that would result from the assumed conversion of these potential shares of common stock. Refer to Note 13 for additional discussion of earnings per share.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

***Recent Accounting Pronouncements***

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)*, which requires a public business entity to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. The guidance is effective for KREF in its 2027 annual reporting. The guidance is applied prospectively and may be applied retrospectively. KREF is evaluating the impact of ASU 2024-03.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 3. Commercial Real Estate Loans**

The following table summarizes KREF's investments in commercial real estate loans as of September 30, 2025 and December 31, 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **Weighted Average**<sup>(C)</sup> | **Weighted Average**<sup>(C)</sup> | **Weighted Average**<sup>(C)</sup> |
|<br>**Loan Type** |<br>**Outstanding Principal** |<br>**Amortized Cost**<sup>(A)</sup> |<br>**Carrying Value**<sup>(B)</sup> |<br>**Loan Count** | **Floating Rate Loan %** | **Coupon**<sup>(D)</sup> | **Life (Years)**<sup>(E)</sup> |
| **<u>September 30, 2025</u>** | | | | | | | |
| &nbsp;&nbsp;<u>Loans held-for-investment</u><sup>(F)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior loans | $5310411 | $5296610 | $5139266 | 52 | 98.6% | 7.4% | 1.7 |
| **<u>December 31, 2024</u>** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;<u>Loans held-for-investment</u><sup>(F)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior loans | $5900163 | $5888622 | $5771519 | 51 | 98.6% | 7.5% | 2.0 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Amortized cost represents the outstanding loan principal, net of applicable unamortized discounts, loan origination fees, cost recovery interest and write-offs on uncollectible loan balances.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Carrying value represents the loan amortized cost, net of applicable allowance for credit losses.

(C)&nbsp;&nbsp;&nbsp;&nbsp;Average weighted by outstanding loan principal.

(D)&nbsp;&nbsp;&nbsp;&nbsp;Weighted average coupon assumes the greater of applicable index rate, or the applicable contractual rate floor. Excludes loans on nonaccrual status.

(E)&nbsp;&nbsp;&nbsp;&nbsp;The weighted average life assumes all extension options are exercised by the borrowers.

(F)&nbsp;&nbsp;&nbsp;&nbsp;Excludes fully written off loans.

***Activity*** — For the nine months ended September 30, 2025, the loan portfolio activity was as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Amortized Cost** | **Allowance for <br>Credit Losses** | **Carrying Value** |
| **Balance at December 31, 2024** | $**5888622** | $**(117103)** | $**5771519** |
| &nbsp;&nbsp;Originations and future fundings, net<sup>(A)</sup> | 706368 |  | 706368 |
| &nbsp;&nbsp;&nbsp;Proceeds from loan repayments | (1113990) |  | (1113990) |
| &nbsp;&nbsp;&nbsp;Accretion of loan discount and other amortization, net | 12104 |  | 12104 |
| &nbsp;&nbsp;&nbsp;Payment-in-kind interest | 1181 |  | 1181 |
| &nbsp;&nbsp;&nbsp;(Provision for) Reversal of credit losses |  | (75069) | (75069) |
| &nbsp;&nbsp;&nbsp;Write-offs charged | (34828) | 34828 |  |
| &nbsp;&nbsp;Transfer to real estate owned | (162847) |  | (162847) |
| **Balance at September 30, 2025** | $**5296610** | $**(157344)** | $**5139266** |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans.

As of September 30, 2025 and December 31, 2024, there were $9.5 million and $7.3 million, respectively, of unamortized origination discounts and deferred fees included in "Commercial real estate loans, held-for-investment, net" on the Condensed Consolidated Balance Sheets.

KREF may enter into loan modifications that include, among other changes, incremental capital contributions or partial repayments from certain borrowers, repurposing of reserves, and a temporary partial deferral of coupon as payment-in-kind interest ("PIK Interest"), which is capitalized, compounded, and added to the outstanding principal balance of the respective loans.

In June 2024, KREF modified a risk-rated 5 mezzanine office loan located in Boston, MA, with an outstanding principal balance of $37.5 million. The terms of the modification included, among others, a restructure of the mezzanine loan into (i) a $12.5 million senior mezzanine note and (ii) a $25.0 million junior mezzanine note which is subordinate to a new $10.0 million sponsor interest. The senior and junior mezzanine notes earn a PIK interest rate of S+7.0% and have a maximum maturity of February 2028. Both mezzanine notes were deemed uncollectible and written off in June 2024.

In December 2024, KREF modified a risk-rated 5 senior life science loan located in San Carlos, CA, with an outstanding principal balance of $103.2 million. The terms of the modification included a $13.1 million principal repayment, and a restructure of the $90.1 million senior loan (after the $13.1 million repayment) into (i) a $89.1 million committed senior mortgage loan (with $34.9 million in unfunded commitment), and (ii) a $35.9 million subordinated note which is subordinate to

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

a new $20.0 million sponsor interest. The restructured senior loan earns a coupon rate of S+1.00% and has a new term of three years. The $35.9 million subordinated note was deemed uncollectible and written off in December 2024. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $60.1 million was risk-rated 3 as of September 30, 2025.

***Loan Risk Ratings*** — KREF evaluates its commercial real estate loan portfolio at least once per quarter and assesses the risk factors of each loan and assigns a risk rating based on a variety of factors. Loans are rated "1" (Very Low Risk) through "5" (Impaired/Loss Likely), which ratings are defined in Note 2.

The following tables summarize the carrying value of the loan portfolio based on KREF's internal risk ratings:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>**Risk Rating** | **Number of Loans**<sup>(A)</sup> | **Carrying Value** | **Outstanding Principal** | **Outstanding Principal %** | **Number of Loans**<sup>(A)</sup> | **Carrying Value** | **Outstanding Principal** | **Outstanding Principal %** |
| 1 |  | $— | $— | —% |  | $— | $— | —% |
| 2 | 3 | 465393 | 465264 | 9 |  |  |  |  |
| 3 | 44 | 4175536 | 4185101 | 78 | 47 | 5393333 | 5400698 | 92 |
| 4 | 3 | 301488 | 301565 | 6 | 2 | 193687 | 193727 | 3 |
| 5 | 2 | 354193 | 358481 | 7 | 2 | 301602 | 305738 | 5 |
| Total loan receivable | 52 | $5296610 | $5310411 | 100% | 51 | $5888622 | $5900163 | 100% |
| Allowance for credit losses | Allowance for credit losses | (157344) |  |  |  | (117103) |  |  |
| Loan receivable, net |  | $5139266 |  |  |  | $5771519 |  |  |

---

\* Numbers presented may not foot due to rounding.

(A)&nbsp;&nbsp;&nbsp;&nbsp;Excludes fully written off loans.

As of September 30, 2025, the average risk rating of KREF's portfolio was 3.1, weighted by outstanding loan principal, consistent with that as of December 31, 2024.

***Loan Vintage*** — The following tables present the amortized cost of the loan portfolio by KREF's internal risk rating and year of origination. The risk ratings are updated as of September 30, 2025 and December 31, 2024 in the corresponding table.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| **Risk Rating** | **Number of Loans**<sup>(B)</sup> | **Outstanding Principal**<sup>(B)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> |
| **Risk Rating** | **Number of Loans**<sup>(B)</sup> | **Outstanding Principal**<sup>(B)</sup> | **2025** | **2024** | **2023** | **2022** | **2021** | **Prior** | **Total** |
| Commercial Real Estate Loans | Commercial Real Estate Loans | Commercial Real Estate Loans |  |  |  |  |  |  |  |
| 1 |  | $— | $— | $— | $— | $— | $— | $— | $— |
| 2 | 3 | 465264 |  |  |  |  | 465393 |  | 465393 |
| 3 | 44 | 4185101 | 584781 | 84572 | 115106 | 1416832 | 1836059 | 138186 | 4175536 |
| 4 | 3 | 301565 |  |  | 90671 |  | 210817 |  | 301488 |
| 5 | 2 | 358481 |  |  |  |  | 164081 | 190112 | 354193 |
|  | 52 | $5310411 | $584781 | $84572 | $205777 | $1416832 | $2676350 | $328298 | $5296610 |
| Year-to-date gross write-offs charged | Year-to-date gross write-offs charged | Year-to-date gross write-offs charged | $— | $— | $— | $34828 | $— | $— | $34828 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Risk Rating** | **Number of Loans**<sup>(B)</sup> | **Outstanding Principal**<sup>(B)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> | **Amortized Cost by Year of Origination**<sup>(A)</sup> |
| **Risk Rating** | **Number of Loans**<sup>(B)</sup> | **Outstanding Principal**<sup>(B)</sup> | **2024** | **2023** | **2022** | **2021** | **2020** | **Prior** | **Total** |
| Commercial Real Estate Loans | Commercial Real Estate Loans | Commercial Real Estate Loans |  |  |  |  |  |  |  |
| 1 |  | $— | $— | $— | $— | $— | $— | $— | $— |
| 2 |  |  |  |  |  |  |  |  |  |
| 3 | 47 | 5400698 | 85151 | 205586 | 1600399 | 3007464 | 150638 | 344095 | 5393333 |
| 4 | 2 | 193727 |  |  | 84425 | 109262 |  |  | 193687 |
| 5 | 2 | 305738 |  |  | 111490 |  |  | 190112 | 301602 |
|  | 51 | $5900163 | $85151 | $205586 | $1796314 | $3116726 | $150638 | $534207 | $5888622 |
| Year-to-date gross write-offs charged | Year-to-date gross write-offs charged | Year-to-date gross write-offs charged | $— | $— | $35902 | $136037 | $1832 | $— | $173771 |
| Year-to-date gross write-offs recovered | Year-to-date gross write-offs recovered | Year-to-date gross write-offs recovered | $— | $— | $— | $— | $— | $225 | $225 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Represents the date a loan was originated or acquired. Origination dates are subsequently updated to reflect material loan modifications.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Excludes fully written off loans.

***Allowance for Credit Losses —*** The following tables present the changes to the allowance for credit losses for the nine months ended September 30, 2025 and 2024, respectively:

---

| | | | |
|:---|:---|:---|:---|
| | **Commercial <br>Real Estate Loans** | **Unfunded Loan Commitments** | **Total** |
| **Balance at December 31, 2024** | $**117103** | $**2478** | $**119581** |
| &nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses, net | 75069 | 617 | 75686 |
| &nbsp;&nbsp;&nbsp;Write-offs charged | (34828) |  | (34828) |
| **Balance at September 30, 2025** | $**157344** | $**3095** | $**160439** |

---

---

| | | | |
|:---|:---|:---|:---|
| | **Commercial <br>Real Estate Loans** | **Unfunded Loan Commitments** | **Total** |
| **Balance at December 31, 2023** | $**210470** | $**2052** | $**212522** |
| &nbsp;&nbsp;&nbsp;Provision for (reversal of) credit losses, net | 75187 | 824 | 76011 |
| &nbsp;&nbsp;&nbsp;Write-offs charged | (137869) |  | (137869) |
| &nbsp;&nbsp;&nbsp;Write-off recovered | 225 |  | 225 |
| **Balance at September 30, 2024** | $**148013** | $**2876** | $**150889** |

---

As of September 30, 2025, the allowance for credit losses was $160.4 million. The CECL provision of $75.7 million for the nine months ended September 30, 2025 was due primarily to additional reserves for risk-rated 5 loans in the life science and office sectors.

KREF had a risk-rated 5 senior office loan located in Minneapolis, MN, originated in November 2017. The property is located in a challenged leasing market. As of September 30, 2025, the loan had an outstanding principal balance of $194.4 million, an unfunded commitment of $5.0 million and an amortized cost of $190.1 million. In June 2025, the loan's maximum maturity was extended to July 2026. Since June 2023, the loan has been on nonaccrual status. During the three and nine months ended September 30, 2025, KREF recognized $2.0 million and $6.0 million, respectively, of interest income on this loan.

KREF had a risk-rated 5 senior life science loan located in Boston, MA, originated in April 2021. As of September 30, 2025, the loan had an outstanding principal balance and amortized cost of $164.1 million with an unfunded commitment of $2.1 million. The loan's maturity is February 2026. In June 2025, this loan was placed on nonaccrual status. During the three and nine months ended September 30, 2025, KREF recognized $1.3 million and $7.3 million, respectively, of interest income on this loan.

The 5-rated loans were determined to be collateral dependent as of September 30, 2025. KREF estimated expected losses based on the loan's collateral fair value, which was determined by applying a capitalization rate between 9.4% and 10.3% and a discount rate of 11.0%.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

As of September 30, 2024, the allowance for credit losses was $150.9 million. The CECL provision of $76.0 million for the nine months ended September 30, 2024 was primarily due to additional reserves on risk-rated 5 senior loans in the office and life science sectors.

***Concentration of Credit Risk*** — The following tables present the geographies and property types of collateral underlying KREF's commercial real estate loans as a percentage of the loans' principal amounts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** | | **September 30, 2025** | **December 31, 2024** |
| **<u>Geography</u>**<sup>(A)</sup> | **<u>Geography</u>**<sup>(A)</sup> | | **<u>Collateral Property Type</u>**<sup>(A)</sup> | **<u>Collateral Property Type</u>**<sup>(A)</sup> | |
| &nbsp;&nbsp;&nbsp;California | 16.9% | 16.9% | &nbsp;&nbsp;&nbsp;Multifamily | 41.8% | 46.7% |
| &nbsp;&nbsp;&nbsp;Texas | 15.3 | 15.1 | &nbsp;&nbsp;&nbsp;Office | 21.2 | 19.2 |
| &nbsp;&nbsp;&nbsp;Florida | 12.6 | 8.7 | &nbsp;&nbsp;&nbsp;Industrial | 15.9 | 13.4 |
| &nbsp;&nbsp;&nbsp;Massachusetts | 12.1 | 13.1 | &nbsp;&nbsp;&nbsp;Life Science | 13.7 | 11.7 |
| &nbsp;&nbsp;&nbsp;North Carolina | 6.5 | 5.3 | &nbsp;&nbsp;&nbsp;Hospitality | 4.8 | 4.2 |
| &nbsp;&nbsp;&nbsp;Washington D.C. | 5.3 | 4.6 | &nbsp;&nbsp;&nbsp;Student Housing | 2.1 | 1.9 |
| &nbsp;&nbsp;&nbsp;Pennsylvania | 4.7 | 4.5 | &nbsp;&nbsp;&nbsp;Mixed Use | 0.5 | 0.5 |
| &nbsp;&nbsp;&nbsp;New York | 4.3 | 4.5 | &nbsp;&nbsp;&nbsp;Self-Storage |  | 2.5 |
| &nbsp;&nbsp;&nbsp;Washington | 4.2 | 4.0 | &nbsp;&nbsp;&nbsp;Total | 100.0% | 100.0% |
| &nbsp;&nbsp;&nbsp;Minnesota | 3.7 | 3.3 |  |  |  |
| &nbsp;&nbsp;&nbsp;Nevada | 2.9 | 2.6 |  |  |  |
| &nbsp;&nbsp;&nbsp;Virginia | 2.2 | 8.6 |  |  |  |
| &nbsp;&nbsp;&nbsp;Georgia | 2.1 | 2.7 |  |  |  |
| &nbsp;&nbsp;&nbsp;Arizona | 1.9 | 0.5 |  |  |  |
| &nbsp;&nbsp;&nbsp;Illinois | 1.7 | 1.5 |  |  |  |
| &nbsp;&nbsp;&nbsp;Tennessee | 1.4 | 1.1 |  |  |  |
| &nbsp;&nbsp;&nbsp;Colorado | 1.3 | 1.2 |  |  |  |
| &nbsp;&nbsp;&nbsp;Other U.S. | 0.9 | 1.8 |  |  |  |
| &nbsp;&nbsp;&nbsp;Total | 100.0% | 100.0% |  |  |  |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Excludes fully written off loans

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 4. Real Estate Owned** 

***Real Estate Owned, Held For Investment***

*Portland, OR Retail / Redevelopment —* In December 2021, KREF took title to a Portland retail property and accounted for the property on a consolidated basis (Note 10). The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, KREF recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. KREF contributed a portion of the REO asset to a joint venture (the "REO JV") with a third party local developer ("JV Partner"), whereby KREF had a 90% interest and the JV Partner had a 10% interest. The JV Partner's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Condensed Consolidated Balance Sheets.

In June 2025, KREF sold a portion of the property for $6.0 million and recognized a realized gain of $0.7 million after closing costs. In September 2025, to support the ongoing redevelopment of the property, the REO JV acquired an adjacent parcel for $9.1 million.

*Mountain View, CA Office —* In June 2024, KREF and a KKR affiliate took title to a Mountain View office property through a deed-in-lieu of foreclosure ("DIL") and KREF accounted for the property on a consolidated basis (Note 10). KREF and the KKR affiliate's interest in the property was 68.9% and 31.1%, respectively. The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, KREF recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. The KKR affiliate's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Condensed Consolidated Balance Sheets.

*Raleigh, NC Multifamily* — In August 2025, KREF took title to a Raleigh multifamily property and accounted for the property through an assignment-in-lieu of foreclosure ("AIL"). The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, KREF recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. As a result, KREF recognized a $14.4 million loan write-off for the difference between the loan amortized cost of $85.5 million and the fair value of the REO's net assets of $71.8 million, less closing costs.

***Real Estate Owned, Held For Sale***

*Philadelphia, PA Office —* In December 2023, KREF took title to a Philadelphia office portfolio through a DIL. The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, KREF recorded the portfolio and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.

In June 2024, KREF sold a portion of the portfolio and provided financing to the buyer through a senior loan. The senior loan had an outstanding principal balance of $24.4 million ($77.7 million total commitment) as of September 30, 2025 and earned a coupon rate of S+4.0%, with a maximum maturity of July 2029, assuming all extension options are exercised. The senior loan is presented within "Commercial real estate loans, held-for-investment, net" on the Condensed Consolidated Balance Sheets.

In May 2025, KREF sold a portion of the portfolio for $25.3 million and recognized a realized gain of $0.5 million after closing costs. As of September 30, 2025, there was one office property remaining.

*West Hollywood, CA Condo —* In April 2025, KREF took title to a West Hollywood multifamily property through an AIL. The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, KREF recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. As a result, KREF recognized a $20.4 million loan write-off for the difference between the loan amortized cost of $112.5 million and the fair value of the REO's net assets of $92.9 million, less closing costs.

As of September 30, 2025, the Philadelphia, PA Office and West Hollywood, CA Condo properties met the criteria to be classified as held for sale under ASC 360. As such, depreciation and amortization on the properties and related lease intangibles were suspended.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

***Leases —*** KREF assumed certain legacy lease arrangements upon the acquisition of the REO assets and subsequently entered into lease arrangements. These arrangements entitle KREF to receive contractual rent payments during the lease periods and tenant reimbursements for certain property operating expenses, including common area costs, insurance, utilities and real estate taxes. KREF elects the practical expedient to not separate the lease and non-lease components of the rent payments and accounts for these lease arrangements as operating leases.

The following table presents the REO assets and liabilities included on KREF's Condensed Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **<u>Real estate owned, held for investment</u>** | | |
| **Assets** | | |
| &nbsp;&nbsp;Real estate owned - land | $207190 | $192652 |
| &nbsp;&nbsp;Real estate owned - land improvements | 10733 | 9586 |
| &nbsp;&nbsp;Real estate owned - buildings | 117317 | 58642 |
| &nbsp;&nbsp;Real estate owned - building improvements | 4997 | 2582 |
| &nbsp;&nbsp;Real estate owned - furniture and fixtures | 1394 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate owned | 341631 | 263462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: Accumulated depreciation | (2694) | (983) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate owned, net | 338937 | 262479 |
| &nbsp;&nbsp;Cash<sup>(A)</sup> | 1887 | 747 |
| &nbsp;&nbsp;In-place lease intangibles<sup>(B)</sup> | 84 | 134 |
| &nbsp;&nbsp;Tenant receivables<sup>(B)</sup> | 89 | 188 |
| &nbsp;&nbsp;Other assets<sup>(B)</sup> | 1729 | 2329 |
| Total | $342726 | $265877 |
| **Liabilities** |  |  |
| &nbsp;&nbsp;Unfavorable lease intangibles<sup>(C)</sup> | $456 | $730 |
| &nbsp;&nbsp;Other liabilities<sup>(C)</sup> | 7479 | 3568 |
| Total | $7935 | $4298 |
| **<u>Real estate owned, held for sale</u>** |  |  |
| **Assets** |  |  |
| &nbsp;&nbsp;Real estate owned, held for sale | $116062 | $45127 |
| &nbsp;&nbsp;In-place lease intangibles | 7678 | 7887 |
| &nbsp;&nbsp;Favorable lease intangibles | 2663 | 2663 |
| &nbsp;&nbsp;Tenant receivables | 399 |  |
| &nbsp;&nbsp;Other assets | 1069 | 877 |
| Total | $127871 | $56554 |
| **Liabilities** |  |  |
| &nbsp;&nbsp;Unfavorable lease intangibles | $167 | $378 |
| &nbsp;&nbsp;Other liabilities | 965 | 950 |
| Total | $1132 | $1328 |

---

(A) &nbsp;&nbsp;&nbsp;&nbsp;Included in "Cash and cash equivalents" on the Condensed Consolidated Balance Sheets.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Included in "Other assets" on the Condensed Consolidated Balance Sheets.

(C)&nbsp;&nbsp;&nbsp;&nbsp;Included in "Other liabilities" on the Condensed Consolidated Balance Sheets.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

The following table presents the REO operations and related income (loss) included in KREF's Condensed Consolidated Statements of Income:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Rental income | $4343 | $2430 | $9467 | $11634 |
| Other operating income<sup>(A)</sup> | 399 | 6152 | 2189 | 7705 |
| &nbsp;&nbsp;Revenue from REO operations | 4742 | 8582 | 11656 | 19339 |
| Operating expense | (6572) | (5000) | (17243) | (16890) |
| Depreciation expense | (730) | (488) | (1711) | (488) |
| &nbsp;&nbsp;Expenses from REO operations | (7302) | (5488) | (18954) | (17378) |
| Total | $(2560) | $3094 | $(7298) | $1961 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Includes $5.3 million of insurance proceeds received during the third quarter of 2024. Includes $43 thousand and $37 thousand of "Other miscellaneous income" on the Condensed Consolidated Statement of Income during the three and nine months ended September 30, 2024.&nbsp;&nbsp;&nbsp;&nbsp;

The following table presents the amortization of REO, held for investment lease intangibles included on KREF's Condensed Consolidated Statements of Income:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| |<br>**Income Statement Location** | **2025** | **2024** | **2025** | **2024** |
| **<u>Asset</u>** |  |  |  |  |  |
| &nbsp;&nbsp;In-place lease intangibles | Expenses from real estate owned operations | $17 | $17 | $51 | $51 |
| **<u>Liability</u>** |  |  |  |  |  |
| &nbsp;&nbsp;Unfavorable lease intangibles | Revenue from real estate owned operations | 91 | 91 | 274 | 274 |

---

The following table presents the amortization of lease intangibles related to REO, held for investment for each of the succeeding fiscal years:

---

| | | |
|:---|:---|:---|
| **Year** | **In-place Lease <br>Intangible Assets** | **Unfavorable Lease <br>Intangible Liabilities** |
| 2025 | 17 | 91 |
| 2026 | 67 | 365 |

---

***Future Minimum Lease Payments*** — The following table presents the future minimum lease payments to be collected under non-cancelable operating leases, excluding tenant reimbursements of expenses:

---

| | |
|:---|:---|
| **Year** | **Contractual <br>Lease Payments** |
| 2025 | $3473 |
| 2026 | 8535 |
| 2027 | 4949 |
| 2028 | 3546 |
| 2029 | 2528 |
| Thereafter | 5169 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 5. Debt Obligations**

The following table summarizes KREF's secured financing arrangements in place as of September 30, 2025 and December 31, 2024:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** |
| | **Facility** | **Facility** | **Facility** | **Facility** | **Facility** | **Facility** | **Collateral** | **Collateral** | **Facility** |
| | **Current Maturity** | **Final Stated Maturity**<sup>(A)</sup> | **Maximum Facility Size** | **Outstanding Principal** | **Carrying Value**<sup>(B)</sup> | **Weighted Average Funding Cost**<sup>(C)</sup> | **Outstanding Principal** | **Carrying Value** | **Carrying Value**<sup>(B)</sup> |
| **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> | **Master Repurchase Agreements**<sup>(D)</sup> |
| Wells Fargo | Sep 2027 | Sep 2029 | $1000000 | $594382 | $592611 | 5.9% | $852849 | $839481 | $650621 |
| Morgan Stanley | Jul 2027 | Jul 2027 | 500000 | 308922 | 307820 | 6.7 | 521423 | 515009 | 276875 |
| Goldman Sachs | Dec 2025 | Dec 2027 | 400000 | 187406 | 186764 | 6.9 | 330393 | 328062 | 107973 |
| **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** | **Term Loan Facility** |
| KREF Lending VII<sup>(E)</sup> | Match-term | Match-term | 1000000 | 527166 | 527085 | 6.2 | 683316 | 675566 | 553834 |
| **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** | **Term Lending Agreements** |
| KREF Lending IX | Match-term | Match-term | 332657 | 317158 | 316703 | 5.8 | 440101 | 437989 | 437002 |
| KREF Lending XV | Match-term | Match-term | 300000 | 238576 | 237253 | 5.7 | 298220 | 292840 |  |
| KREF Lending XVI | Match-term | Match-term | 100000 | 100000 | 98991 | 5.9 | 125000 | 122623 |  |
| BMO Facility | Match-term | Match-term | 300000 | 74899 | 74823 | 5.9 | 95611 | 94468 | 74727 |
| KREF Lending XII | Match-term | Match-term | 150000 |  | (9) |  |  |  | 99233 |
| KREF Lending V | Match-term | Match-Term |  |  |  |  |  |  | 177408 |
| **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** | **Warehouse Facility** |
| HSBC Facility | Mar 2026 | Mar 2026 | 500000 |  |  |  |  |  | (12) |
| **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** | **Asset Specific Financing** |
| KREF Lending XIII | Oct 2026 | Oct 2027 | 265625 | 195198 | 194459 | 7.5 | 229644 | 226580 | 193285 |
| KREF Lending XI | Mar 2026 | Mar 2026 | 90000 | 90000 | 90000 | 6.9 | 125000 | 123587 | 99967 |
| KREF Lending XIV | Oct 2026 | Oct 2027 | 125000 | 73070 | 72619 | 7.2 | 91337 | 89955 | 47761 |
| **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** | **Revolving Credit Agreement** |
| Revolver<sup>(F)</sup> | Mar 2030 | Mar 2030 | 700000 |  |  |  | n.a. | n.a. | 80000 |
| Total / Weighted Average | Total / Weighted Average |  | $5763282 | $2706777 | $2699119 | 6.3% |  |  | $2798674 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Final Stated Maturity is determined based on the maximum maturity of the underlying financing agreements or corresponding loans, assuming all extension options in KREF's discretion are exercised. The weighted average life of the match-term facilities was 1.3 and 2.1 years, based on the current and final stated maturities, respectively, of the average weighted outstanding principal of collateral loans as of September 30, 2025.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Net of $7.7 million and $6.2 million unamortized deferred financing costs as of September 30, 2025 and December 31, 2024, respectively.

(C)&nbsp;&nbsp;&nbsp;&nbsp;Including deferred financing costs and applicable index in effect as of September 30, 2025. Average weighted by the outstanding principal of the facility.

(D)&nbsp;&nbsp;&nbsp;&nbsp;As of September 30, 2025 and December 31, 2024, the percentage of the outstanding principal of the collateral sold and not borrowed under these repurchase agreements, or average "haircut" weighted by outstanding principal of collateral, was 36.0% and 34.9%, respectively (or 34.5% and 32.1%, respectively, if KREF had borrowed the maximum amount approved by its repurchase agreement counterparties as of such dates).

(E)&nbsp;&nbsp;&nbsp;&nbsp;The term loan facility provides asset-based financing on a non-mark-to-market basis with match-term up to five years, with an additional two-year extension available to KREF.

(F)&nbsp;&nbsp;&nbsp;&nbsp;Borrowing capacity under the Revolver increased from $610.0 million to $660.0 million in March 2025, and further increased to $700.0 million in September 2025. As of September 30, 2025, the revolver carrying value excluded $6.2 million unamortized debt issuance costs presented within "Other assets" on KREF's Condensed Consolidated Balance Sheets.

As of September 30, 2025 and December 31, 2024, KREF had outstanding master repurchase agreements, term lending agreements and warehouse facility where the amount at risk with any individual counterparty, or group of related counterparties, exceeded 10.0% of KREF's stockholders' equity. The amount at risk under these arrangements is the net counterparty exposure, defined as the excess of the carrying amount (or market value, if higher than the carrying amount, for repurchase agreements) of the assets sold under agreement to repurchase, including accrued interest receivable plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability, adjusted for accrued interest payable.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

The following table summarizes certain characteristics of KREF's repurchase agreements where the amount at risk with any individual counterparty, or group of related counterparties, exceeded 10.0% of KREF's stockholders' equity as of September 30, 2025 and December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Outstanding <br>Principal** | **Net Counterparty Exposure** | **Percent of Stockholders' Equity** | **Weighted Average** <br>**Life (Years)**<sup>(A)</sup> |
| **<u>September 30, 2025</u>** | | | | |
| &nbsp;&nbsp;&nbsp;Morgan Stanley | $626080 | $330976 | 26.9% | 1.6 |
| &nbsp;&nbsp;&nbsp;Wells Fargo | 594382 | 255639 | 20.8 | 2.1 |
| &nbsp;&nbsp;&nbsp;Goldman Sachs | $187406 | $143032 | 11.6% | 1.1 |
| &nbsp;&nbsp;&nbsp;Total / Weighted Average | $1407868 | $729647 | 59.3% | 1.7 |
| **<u>December 31, 2024</u>** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Morgan Stanley | $755455 | $316833 | 23.5% | 1.6 |
| &nbsp;&nbsp;&nbsp;Wells Fargo | 651922 | 282980 | 21.0 | 2.3 |
| &nbsp;&nbsp;&nbsp;Total / Weighted Average | $1407377 | $599813 | 44.5% | 1.9 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Average weighted by the outstanding principal of borrowings under the secured financing agreement.

Debt obligations included in the tables above are obligations of KREF's consolidated subsidiaries, which own the related collateral, and such collateral is generally not available to other creditors of KREF.

While KREF is generally not required to post margin under certain repurchase agreement terms for changes in general capital market conditions such as changes in credit spreads or interest rates, KREF may be required to post margin for changes in conditions to specific loans that serve as collateral for those repurchase agreements. Such changes may include declines in the appraised value of property that secures a loan or a negative change in the borrower's ability or willingness to repay a loan. To the extent that KREF is required to post margin, KREF's liquidity could be significantly impacted. Both KREF and its lenders work cooperatively to monitor the performance of the properties and operations related to KREF's loan investments to mitigate investment-specific credit risks. Additionally, KREF incorporates terms in the loans it originates to further mitigate risks related to loan nonperformance.

***Activity*** — For the nine months ended September 30, 2025, the activity related to the carrying value of KREF's secured financing agreements were as follows:

---

| | |
|:---|:---|
| | **Secured Financing Agreements, Net** |
| **Balance as of December 31, 2024** | $**2798674** |
| &nbsp;&nbsp;&nbsp;Principal borrowings | 1288799 |
| &nbsp;&nbsp;&nbsp;Principal repayments | (1386916) |
| &nbsp;&nbsp;&nbsp;Deferred debt issuance costs | (7802) |
| &nbsp;&nbsp;&nbsp;Amortization of deferred debt issuance costs | 6364 |
| **Balance as of September 30, 2025** | $**2699119** |

---

***Maturities*** — KREF's secured financing arrangements in place as of September 30, 2025 had contractual maturities as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Year** | **Nonrecourse**<sup>(A)</sup> | **Recourse**<sup>(A)(B)</sup> | **Total** |
| 2025 | $16701 | $5567 | $22268 |
| 2026 | 377124 | 29329 | 406453 |
| 2027 | 1276325 | 281424 | 1557749 |
| 2028 | 189943 | 28567 | 218510 |
| 2029 | 77416 | 25805 | 103221 |
| 2030 | 313932 | 84644 | 398576 |
|  | $2251441 | $455336 | $2706777 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Represents the earlier of (i) the maximum maturity of the underlying loans pledged as collateral or (ii) the maximum maturity of the respective financing agreements.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Except for the Revolver, which is full recourse, amounts borrowed are subject to a maximum 25.0% recourse limit. The Revolver matures in March 2030.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

***Covenants*** — KREF is required to comply with customary loan covenants and event of default provisions related to its secured financing agreements and Revolver, including, but not limited to, negative covenants relating to restrictions on operations with respect to KREF's status as a REIT, and financial covenants. Such financial covenants include a trailing four quarter interest income to interest expense ratio covenant (1.3 to 1.0 beginning September 30, 2024 through June 30, 2026, then 1.4 to 1.0 thereafter); a consolidated tangible net worth covenant (75.0% of the aggregate cash proceeds of any equity issuances made and any capital contributions received by KREF and certain subsidiaries, or up to approximately $1.3 billion depending upon the facility); a total indebtedness covenant (83.3% of KREF's Total Assets, as defined in the applicable financing agreements) and a cash liquidity covenant (the greater of (i) $10.0 million or (ii) 5.0% of KREF's recourse indebtedness; from September 30, 2024 and through June 30, 2026 the Revolver has a minimum cash liquidity covenant of $75.0 million).

As of September 30, 2025 and December 31, 2024, KREF was in compliance with its financial debt covenants.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 6. Collateralized Loan Obligations** 

In August 2021, KREF financed a pool of loan participations from its existing loan portfolio through a managed CLO ("KREF 2021-FL2"). In February 2022, KREF financed a pool of loan participations from its existing multifamily loan portfolio through a managed CLO ("KREF 2022-FL3"). The CLOs provide KREF with match-term financing on a non-mark-to-market and non-recourse basis.

The following tables outline CLO collateral assets and respective borrowing as of September 30, 2025 and December 31, 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** |
| | **Facility** | **Facility** | **Facility** | **Facility** | **Facility** | **Collateral** | **Collateral** | **Facility** |
| | **Wtd. Avg. Term**<sup>(A)</sup> | **Maximum Facility Size** | **Outstanding Principal** | **Carrying Value** | **Wtd. Avg. Funding Cost**<sup>(B)</sup> | **Outstanding Principal** | **Carrying Value** | **Carrying Value** |
| KREF 2021-FL2 | February 2039 | $735614 | $735614 | $735544 | 5.7% | $940364 | $903095 | $930070 |
| KREF 2022-FL3 | February 2039 | 588865 | 588865 | 588865 | 5.9 | 741365 | 739099 | 836034 |
| Total |  | $1324479 | $1324479 | $1324409 | 5.8% | $1681729 | $1642194 | $1766104 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;The term of the CLO notes represents the rated final distribution date. Repayments of CLO notes are dependent on timing of underlying collateral loan asset repayments post reinvestment period.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Including deferred financing costs and applicable index in effect as of September 30, 2025. Average weighted by the outstanding principal of the facility.

The following table presents the CLO assets and liabilities included in KREF's Condensed Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **<u>Assets</u>** | | |
| Commercial real estate loans, held-for-investment | $1681309 | $2123347 |
| &nbsp;&nbsp;&nbsp;Less: Allowance for credit losses | (39115) | (20005) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate loans, held-for-investment, net | 1642194 | 2103342 |
| Accrued interest receivable | 7549 | 9785 |
| Other assets | 192 | 155 |
| &nbsp;&nbsp;Total | $1649935 | $2113282 |
| **<u>Liabilities</u>** |  |  |
| Collateralized loan obligations | $1324479 | $1766231 |
| Deferred financing costs | (70) | (127) |
| &nbsp;&nbsp;Collateralized loan obligations, net | 1324409 | 1766104 |
| Accrued interest payable | 2795 | 4097 |
| &nbsp;&nbsp;Total | $1327204 | $1770201 |

---

The following table presents the components of net interest income of CLOs included in KREF's Condensed Consolidated Statements of Income:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Interest income | $32307 | $48468 | $103522 | $146163 |
| Interest expense | 21822 | 34009 | 69164 | 102127 |
| &nbsp;&nbsp;Net interest income | $10485 | $14459 | $34358 | $44036 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 7. Secured Term Loan, Net**

In March 2025, KREF refinanced the existing secured term loan of $339.5 million with a new $550.0 million secured term loan due March 2032. The transaction was accounted for as a partial debt extinguishment under GAAP. In September 2025, KREF further upsized the secured term loan to $650.0 million and reduced the spread by 0.75% to S+2.5%. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments starting June 30, 2025. The secured term loan contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates, and is secured by KREF level guarantees and does not include asset-based collateral.

Upon the completion of the secured term loan transactions, KREF recorded a $1.1 million issuance discount and $11.4 million in issuance costs. The loan issuance discount and issuance costs were capitalized and amortized into interest expense over the term of the secured term loan. Inclusive of the discount and issuance cost amortization, KREF's total cost of the secured term loan was S+2.9%, subject to the applicable SOFR floor, as of September 30, 2025.

The following table summarizes KREF's secured term loan as of September 30, 2025 and December 31, 2024, respectively:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Principal | $648375 | $339500 |
| Deferred financing costs | (11934) | (2988) |
| Unamortized discount | (2900) | (2659) |
| Carrying value | $633541 | $333853 |

---

***Covenants*** — KREF is required to comply with customary loan covenants and event of default provisions related to its secured term loan that include, but are not limited to, negative covenants relating to restrictions on operations with respect to KREF's status as a REIT, and financial covenants. Such financial covenants include a minimum consolidated tangible net worth of $650.0 million and a maximum Total Debt to Total Assets Ratio, as defined in the secured term loan agreements, of 83.3%. KREF was in compliance with such covenants as of September 30, 2025 and December 31, 2024.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 8. Variable Interest Entity Assets and Liabilities, CMBS Trust, at Fair Value**

As of September 30, 2025, KREF owned CMBS B-Pieces with an outstanding principal balance of $19.5 million and an estimated fair value of $9.1 million

KREF has consolidated the CMBS trust from June 18, 2025 (the date of acquisition) through September 30, 2025 after determining that the trust was a VIE and that KREF was the primary beneficiary of such VIE. KREF irrevocably elected the fair value option for the consolidated CMBS trust, and therefore, (i) reported the assets and liabilities of the trust at fair value on the Condensed Consolidated Balance Sheets, (ii) recognized changes in the trust's net assets, including fair value adjustments, in the Condensed Consolidated Statements of Income, and (iii) presented cash interest received by the trust, net of cash interest paid on CMBS not held by KREF, as operating cash flows in the Condensed Consolidated Statements of Cash Flow.

The following table presents the assets and liabilities of the consolidated CMBS trust:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **<u>Assets</u>** | | |
| Commercial real estate loans, at fair value | $503418 | $— |
| Accrued interest receivable | 2402 |  |
| &nbsp;&nbsp;&nbsp;Variable interest entity assets, CMBS trust, at fair value | $505820 | $— |
| **<u>Liabilities</u>** |  |  |
| Commercial mortgage-backed securities, at fair value | $494397 | $— |
| Accrued interest payable | 2306 |  |
| &nbsp;&nbsp;&nbsp;Variable interest entity liabilities, CMBS trust, at fair value | $496703 | $— |

---

The following table presents the change in net assets of the consolidated CMBS trust:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net interest income | $293 | $— | $334 | $— |
| Unrealized gain (loss) | 54 |  | 54 |  |
| &nbsp;&nbsp;Change in net assets of consolidated variable interest entity, CMBS trust | $347 | $— | $388 | $— |

---

See Note 16 for additional information regarding the valuation of financial assets and liabilities of KREF's consolidated CMBS trust.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

***Concentration of Credit Risk*** — The following tables present the geographies and property types of collateral underlying the consolidated CMBS trust, as a percentage of the collateral outstanding principal amounts:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** | | **September 30, 2025** | **December 31, 2024** |
| **<u>Geography</u>** | **<u>Geography</u>** | | **<u>Collateral Property Type</u>** | **<u>Collateral Property Type</u>** | |
| &nbsp;&nbsp;&nbsp;New York | 46.2% | —% | &nbsp;&nbsp;&nbsp;Office | 26.6% | —% |
| &nbsp;&nbsp;&nbsp;California | 17.4 |  | &nbsp;&nbsp;&nbsp;Retail | 24.1 |  |
| &nbsp;&nbsp;&nbsp;Oregon | 10.0 |  | &nbsp;&nbsp;&nbsp;Co-op | 22.8 |  |
| &nbsp;&nbsp;&nbsp;Maryland | 9.9 |  | &nbsp;&nbsp;&nbsp;Mixed Use | 13.0 |  |
| &nbsp;&nbsp;&nbsp;Arizona | 5.1 |  | &nbsp;&nbsp;&nbsp;Multifamily | 11.7 |  |
| &nbsp;&nbsp;&nbsp;North Carolina | 2.2 |  | &nbsp;&nbsp;&nbsp;Self-Storage | 1.8 |  |
| &nbsp;&nbsp;&nbsp;Florida | 1.4 |  | &nbsp;&nbsp;&nbsp;Total | 100.0% | —% |
| &nbsp;&nbsp;&nbsp;Tennessee | 1.2 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Alabama | 1.1 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Georgia | 1.0 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Ohio | 1.0 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other U.S. | 3.5 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total | 100.0% | —% |  |  |  |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 9. Other Assets and Liabilities**

The following tables present the components of KREF's other assets and other liabilities as of September 30, 2025 and December 31, 2024, respectively:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **<u>Other assets</u>** | | |
| Restricted cash | $3042 | $1614 |
| Deferred financing cost, Revolver | 6242 | 2811 |
| Loan principal repayments held by a servicer | 1500 |  |
| Assets related to real estate owned, held for investment | 1902 | 2651 |
| Other | 2274 | 1777 |
| &nbsp;&nbsp;Total | $14960 | $8853 |
| **<u>Other liabilities</u>** |  |  |
| Liabilities related to real estate owned, held for investment | $7935 | $4298 |
| Allowance for credit losses on unfunded commitments | 3095 | 2478 |
| Other | 1848 | 1748 |
| &nbsp;&nbsp;Total | $12878 | $8524 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 10. Consolidation and Equity Method Investments**

***Consolidated Variable Interest Entity, CMBS Trust***

KREF consolidates CMBS trusts when it determines that such trusts are VIEs and that KREF is the primary beneficiary of such VIEs (Note 8). Management considers KREF to be the primary beneficiary of such CMBS trusts as KREF has the ability to control the most significant activities of the trusts, the obligation to absorb losses, and the right to receive benefits of the trusts through the CMBS B-Pieces.

***Consolidated Variable Interest Entity, CLOs***

KREF consolidates CLOs when it determines that CLO issuers, wholly-owned subsidiaries of KREF, are VIEs and that KREF is the primary beneficiary of such VIEs (Note 6). Management considers KREF to be the primary beneficiary of the CLO issuers as KREF has the ability to control the most significant activities of the CLO issuers, the obligation to absorb losses, and the right to receive benefits of the CLOs through the subordinate interests the CLO issuers own.

***Consolidated Real Estate Owned Joint Ventures***

*Portland, OR Retail / Redevelopment* — In December 2021, KREF took title to a Portland retail property and contributed a portion of the REO asset to a REO JV with a JV Partner, where KREF had a 90% interest and the JV Partner had a 10% interest. Management determined the REO JV to be a VIE as the REO JV has insufficient equity-at-risk and concluded that KREF is the primary beneficiary of the REO JV as KREF holds decision-making power over the activities that most significantly impact the economic performance and has the obligation to absorb losses, or the right to receive benefits, that could be potentially significant to the REO JV. As of September 30, 2025, KREF had a priority of distributions up to $79.7 million before the JV Partner can participate in the economics of the REO JV.

*Mountain View, CA Office —* In June 2024, KREF and a KKR affiliate took title to a Mountain View office property. The property was held in a joint venture where KREF and the KKR affiliate held a 68.9% and 31.1% interest, respectively, and shared decision-making. Management determined the joint venture to be a VIE as the joint venture was established with non-substantive voting rights and concluded that KREF is the primary beneficiary of the joint venture as KREF holds decision-making power over the activities that most significantly impact the economic performance and has the obligation to absorb losses, or the right to receive benefits, that could be potentially significant to the joint venture.

***Equity Method Investment, Real Estate Asset***

*Seattle, WA Life Science —* In June 2024, KREF and a KKR affiliate, took title to a Seattle life science property through a deed-in-lieu of foreclosure under a Tenant-in-Common ("TIC") agreement. Under the TIC agreement, KREF and the KKR affiliate held an economic interest of 74.6% and 25.4%, respectively, and shared decision-making. Under ASC 970-810, KREF accounted for the TIC agreement as an undivided interest in the property and recorded an equity method investment based on KREF's share of the estimated fair value of the property's net assets.

***Equity Method Investment, CMBS B-Pieces***

As of September 30, 2025, KREF held a 3.5% interest in RECOP I, an unconsolidated VIE of which KREF is not the primary beneficiary. The aggregator vehicle in which KREF invests is controlled and advised by affiliates of the Manager. RECOP I primarily acquired junior tranches of CMBS newly issued by third parties. KREF will not pay any fees to RECOP I, but KREF bears its pro rata share of RECOP I's expenses. KREF reported its share of the net asset value of RECOP I in its Condensed Consolidated Balance Sheets, presented as "Equity method investment, CMBS B-Pieces" and its share of net income, presented as "Income (loss) from equity method investment" in the Condensed Consolidated Statements of Income.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 11. Equity** 

***Authorized Capital*** — On October 2, 2014, KREF's board of directors authorized KREF to issue up to 350,000,000 shares of stock, at $0.01 par value per share, consisting of 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, subject to certain restrictions on transfer and ownership of shares. Restrictions placed on the transfer and ownership of shares relate to KREF's REIT qualification requirements.

***Common Stock*** — As of September 30, 2025, there were 65,227,255 common shares issued and outstanding, which included 1,237,074 net shares of common stock issued in connection with vested restricted stock units.

***Share Repurchase Program*** — Under KREF's current share repurchase program, which has no expiration date, KREF may repurchase up to an aggregate of $100.0 million of its common stock effective as of February 3, 2023, of which up to $50.0 million may be repurchased under a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act, and provide for repurchases of common stock when the market price per share is below book value per share (calculated in accordance with GAAP as of the end of the most recent quarterly period for which financial statements are available), and the remaining $50.0 million may be used for repurchases in the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any common stock repurchases will be determined by KREF in its discretion and will depend on a variety of factors, including legal requirements, price, liquidity and economic considerations, and market conditions. The program does not require KREF to repurchase any specific number of shares of common stock. The program does not have an expiration date and may be suspended, modified or discontinued at any time.

During the nine months ended September 30, 2025, KREF repurchased and retired 3,508,881 shares of its common stock under the repurchase program at an average price per share of $9.70 for a total of $34.0 million. As of September 30, 2025, KREF had $56.0 million of remaining capacity to repurchase shares under the program.

***At the Market Stock Offering Program*** — In February 2019, KREF entered into an equity distribution agreement with certain sales agents, pursuant to which KREF may sell, from time to time, up to an aggregate sales price of $100.0 million of its common stock pursuant to a continuous offering program (the "ATM"). Sales of KREF's common stock made pursuant to the ATM may be made in negotiated transactions or transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act of 1933, as amended. The timing and amount of actual sales will depend on a variety of factors including market conditions, the trading price of KREF's common stock, KREF's capital needs, and KREF's determination of the appropriate sources of funding to meet such needs.

During the nine months ended September 30, 2025, KREF did not issue or sell any shares of common stock under the ATM. As of September 30, 2025, $93.2 million remained available for issuance under the ATM.

***6.50% Series A Cumulative Redeemable Preferred Stock*** — The perpetual Series A Preferred Stock is redeemable, at KREF's option, at a liquidation price of $327.8 million, or $25.00 per share, plus accrued and unpaid dividends commencing in April 2026. Dividends on the Series A Preferred Stock are payable quarterly at a rate of 6.50% per annum of the $25.00 liquidation preference, which is equivalent to $1.625 per annum per share. With respect to dividend rights and liquidation, the Series A Preferred Stock ranks senior to KREF's common stock.

***Noncontrolling Interests*** — Noncontrolling interests represent an interest held by investors other than KREF in consolidated joint ventures that hold KREF's real estate asset investments. KREF and the noncontrolling interest holders typically contribute to the joint ventures' ongoing operating shortfalls and capital expenditures on a pari passu basis. Distributions from the joint ventures are allocated between KREF and the noncontrolling interest holders based on contractual terms and waterfalls as outlined in the joint venture agreements.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

***Dividends*** — During the nine months ended September 30, 2025 and 2024, KREF's board of directors declared the following dividends on shares of its common stock:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Amount** | **Amount** |
|<br>**Declaration Date** |<br>**Record Date** |<br>**Payment Date** | **Per Share** | **Total** |
| **2025** |  |  |  |  |
| March 14, 2025 | March 31, 2025 | April 15, 2025 | $0.25 | $16956 |
| June 10, 2025 | June 30, 2025 | July 15, 2025 | 0.25 | 16419 |
| September 11, 2025 | September 30, 2025 | October 15, 2025 | 0.25 | 16307 |
|  |  |  |  | $49682 |
| **2024** |  |  |  |  |
| February 1, 2024 | March 28, 2024 | April 15, 2024 | $0.25 | $17328 |
| June 13, 2024 | June 28, 2024 | July 15, 2024 | 0.25 | 17333 |
| September 13, 2024 | September 30, 2024 | October 15, 2024 | 0.25 | 17333 |
|  |  |  |  | $51994 |

---

During the nine months ended September 30, 2025 and 2024, KREF's board of directors declared the following dividends on shares of its Series A Preferred Stock:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Amount** | **Amount** |
|<br>**Declaration Date** |<br>**Record Date** |<br>**Payment Date** | **Per Share** | **Total** |
| **2025** |  |  |  |  |
| January 31, 2025 | February 28, 2025 | March 14, 2025 | $0.41 | $5326 |
| April 21, 2025 | May 30, 2025 | June 13, 2025 | 0.41 | 5326 |
| July 17, 2025 | August 29, 2025 | September 15, 2025 | 0.41 | 5326 |
|  |  |  |  | $15978 |
| **2024** |  |  |  |  |
| February 1, 2024 | February 29, 2024 | March 15, 2024 | $0.41 | $5326 |
| April 19, 2024 | May 31, 2024 | June 14, 2024 | 0.41 | 5326 |
| July 19, 2024 | August 30, 2024 | September 13, 2024 | 0.41 | 5326 |
|  |  |  |  | $15978 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 12. Stock-based Compensation** 

KREF is externally managed by the Manager and does not currently have any employees. However, as of September 30, 2025, certain individuals employed by the Manager and affiliates of the Manager and certain members of KREF's board of directors were compensated, in part, through the issuance of stock-based awards.

The KKR Real Estate Finance Trust Inc. 2025 Omnibus Incentive Plan was adopted on April 25, 2025 (the "Incentive Plan") and replaced the Amended and Restated KKR Real Estate Finance Trust Inc. 2016 Omnibus Incentive Plan (the "Prior Plan"). Outstanding awards previously granted under the Prior Plan as of the date of approval by our shareholders of the Incentive Plan remain outstanding pursuant to the terms of the Prior Plan. However, following the approval of the Incentive Plan, no new awards will be made under the Prior Plan.

Under the Incentive Plan, a total of 2,750,000 shares of common stock, will be available for awards to certain members of KREF's board of directors and employees of the Manager or its affiliates, none of whom are KREF employees. No awards may be granted under the Incentive Plan on or after April 25, 2035. The Incentive Plan will continue to apply to awards granted prior to such date. During the nine months ended September 30, 2025 and 2024, 61,935 and 56,350 restricted stock unit ("RSU") awards were granted to KREF's directors and employees of the Manager or its affiliates under the Prior Plan.

RSUs awarded to employees of the Manager or its affiliates, generally vest over three consecutive one-year periods and awards to certain members of KREF's board of directors generally vest over a one-year period, pursuant to the terms of the respective award agreements and the terms of the Incentive Plan. All outstanding RSU awards were entitled to nonforfeitable dividends during the vesting periods, at the same rate as those declared on the common stock. As of September 30, 2025, 2,750,000 shares of common stock remained available for awards under the Incentive Plan.

The following table summarizes the activity in KREF's outstanding RSUs and the weighted-average grant date fair value per RSU:

---

| | | |
|:---|:---|:---|
| | **Restricted Stock Units** | **Weighted Average Grant Date Fair Value Per RSU**<sup>(A)</sup> |
| **Unvested as of December 31, 2024** | 1248813 | $12.35 |
| Granted | 61935 | 8.88 |
| Vested | (56350) | 9.76 |
| Forfeited / cancelled | (1250) | 11.27 |
| **Unvested as of September 30, 2025** | 1253148 | $12.30 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;The grant-date fair value is based upon the closing price of KREF's common stock at the date of grant.

KREF expects the unvested RSUs outstanding to vest during the following years:

---

| | |
|:---|:---|
| **Year** | **Restricted Stock Units** |
| 2025 | 573624 |
| 2026 | 471607 |
| 2027 | 207917 |
| Total | 1253148 |

---

KREF recognizes the compensation cost of RSUs awarded to employees of the Manager, or one or more of its affiliates, on a straight-line basis over the awards' term at their grant date fair value, consistent with the RSUs awarded to certain members of KREF's board of directors.

During the three and nine months ended September 30, 2025, KREF recognized $2.2 million and $6.4 million respectively, of stock-based compensation expense included in "General and administrative" expense in the Condensed Consolidated Statements of Income. During the three and nine months ended September 30, 2024, KREF recognized $2.2 million and $6.7 million respectively, of stock-based compensation expense included in "General and administrative" expense in the Condensed Consolidated Statements of Income. As of September 30, 2025, there was $7.7 million of total unrecognized stock-

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

based compensation expense related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 0.9 year.

Upon any payment of shares as a result of restricted stock unit vesting, the related personal tax withholding obligation will generally be satisfied by KREF, reducing the number of shares to be delivered by a number of shares necessary to satisfy the related applicable personal tax withholding obligation. The amount results in a cash payment related to this personal tax liability and a corresponding reduction to "Additional paid-in capital" in the Condensed Consolidated Statement of Changes in Equity.

***Directors and Officers Deferral Plan*** — In March 2022, KREF's board of directors adopted the KKR Real Estate Finance Trust Inc. Directors and Officers Deferral Plan (the "Deferral Plan"). Pursuant to the Deferral Plan, participants may elect to defer receipt of all or a portion of any shares of KREF's common stock issuable upon vesting of any RSU granted to such participant in 25% increments. Deferred stock units ("DSU") credited to a participant are non-voting but shall be entitled to dividend equivalent payments upon payment of dividends on shares of KREF's common stock in the same form and amount equal to the amount of such dividends and are not subject to deferral under the Deferral Plan.

During the nine months ended September 30, 2025, 33,810 vested RSUs were deferred under the Deferral Plan. As of September 30, 2025, there were 239,922 DSUs outstanding.

***Participating Securities' Share in Earnings*** — During the nine months ended September 30, 2025 and 2024, KREF declared $1.1 million and $0.9 million, respectively, of nonforfeitable dividends on unvested RSUs and outstanding DSUs. Such nonforfeitable dividends were deducted from "Retained earnings (Accumulated deficit)" in the Condensed Consolidated Statement of Changes in Equity.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 13. Earnings (Loss) per Share** 

***Earnings (Loss) per Share*** — KREF calculates its basic EPS using the two-class method, which defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities. Under the two-class method earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights. Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average common stock outstanding for the period.

KREF presents diluted EPS under the more dilutive of the treasury stock and if-converted methods or the two-class method. Under the treasury stock and if-converted methods, the denominator includes weighted average common stock outstanding plus the incremental dilutive shares issuable from restricted stock units and an assumed conversion of the Convertible Notes (for the periods in which such notes were outstanding). The numerator includes any changes in income (loss) that would result from the assumed conversion of these potential shares of common stock.

For the nine months ended September 30, 2025 and 2024, 154,449 and 47,314 weighted average unvested RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive.

The following table illustrates the computation of basic and diluted EPS for the three and nine months ended September 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Earnings** |  |  |  |  |
| Net Income (Loss) | $13778 | $(7388) | $(20809) | $15336 |
| Less: Preferred stock dividends | 5326 | 5326 | 15978 | 15978 |
| Less: Participating securities' share in earnings | 373 | 277 | 1109 | 865 |
| &nbsp;&nbsp;Net income (loss) attributable to common stockholders, basic and diluted | $8079 | $(12991) | $(37896) | $(1507) |
| **Shares** |  |  |  |  |
| Weighted average common shares outstanding | 65636805 | 69333208 | 67041089 | 69325229 |
| Add: Weighted average deferred stock units | 239922 | 101730 | 226299 | 89761 |
| &nbsp;&nbsp;&nbsp;Diluted weighted average common shares outstanding | 65876727 | 69434938 | 67267388 | 69414990 |
| Net income (loss) attributable to common stockholders, per: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted common share | $0.12 | $(0.19) | $(0.56) | $(0.02) |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 14. Commitments and Contingencies** 

As of September 30, 2025, KREF was subject to the following commitments and contingencies:

***Litigation*** — From time to time, KREF may be involved in various claims and legal actions arising in the ordinary course of business. KREF establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.

As of September 30, 2025, KREF was not involved in any material legal proceedings regarding claims or legal actions against KREF.

***Indemnifications*** — In the normal course of business, KREF enters into contracts that contain a variety of representations and warranties that provide general indemnifications and other indemnities relating to contractual performance. In addition, certain of KREF's subsidiaries have provided certain indemnities relating to environmental and other matters and has provided nonrecourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of certain real estate investments that KREF has made. KREF's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against KREF that have not yet occurred. However, KREF expects the risk of material loss to be low.

***Capital Commitments*** — As of September 30, 2025, KREF had future funding commitments of $426.3 million related to its investments in commercial real estate loans. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum credit metrics or executions of new leases before advances are made to the borrower.

In January 2017, KREF committed $40.0 million to invest in an aggregator vehicle alongside RECOP I. The two-year investment period for RECOP I ended in April 2019. As of September 30, 2025, KREF had a remaining commitment of $4.3 million to RECOP I.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 15. Related Party Transactions** 

***Management Agreement***

The Management Agreement between KREF and the Manager is subject to certain termination and nonrenewal rights, which in the case of KREF are exercisable by a two-thirds vote by the independent directors of KREF's board of directors. If the independent directors of KREF's board of directors decline to renew the Management Agreement other than for cause, KREF is required to pay the Manager a termination fee equal to three times the total 24-month trailing average annual management fee and incentive compensation earned by the Manager through the most recently completed calendar quarter.

Pursuant to the Management Agreement, the Manager, as agent to KREF and under the supervision of KREF's board of directors, manages the investments, subject to investment guidelines approved by KREF's board of directors; financing activities; and day-to-day business and affairs of KREF and its subsidiaries.

For its services to KREF, the Manager is entitled to a quarterly management fee equal to the greater of $62,500 or 0.375% of weighted average adjusted equity and quarterly incentive compensation equal to 20.0% of the excess of (a) the trailing 12-month distributable earnings (before incentive compensation payable to the Manager) over (b) 7.0% of the trailing 12-month weighted average adjusted equity ("Hurdle Rate"), less incentive compensation KREF already paid to the Manager with respect to the first three calendar quarters of such trailing 12-month period. The quarterly incentive compensation is calculated and paid in arrears with a one-quarter lag.

Adjusted equity generally represents the proceeds received by KREF and its subsidiaries from equity issuances, without duplication and net of offering costs, and distributable earnings, reduced by distributions, equity repurchases, and incentive compensation paid. Distributable earnings generally represent the net income, or loss, attributable to equity interests in KREF and its subsidiaries, without duplication, as well as realized losses not otherwise included in such net income, or loss, excluding non-cash equity compensation expense, incentive compensation, depreciation and amortization and unrealized gains or losses, from and after the effective date to the end of the most recently completed calendar quarter. KREF's board of directors, after majority approval by independent directors, may also exclude one-time events pursuant to changes in GAAP and certain material non-cash income or expense items from distributable earnings. For purposes of calculating incentive compensation, adjusted equity excludes: (i) the effects of equity issued by KREF and its subsidiaries that provides for fixed distributions or other debt characteristics and (ii) unrealized provision for (reversal of) credit losses.

KREF is also required to reimburse the Manager or its affiliates for documented costs and expenses incurred by it and its affiliates on behalf of KREF, except those specifically required to be borne by the Manager under the Management Agreement. The Manager is responsible for, and KREF does not reimburse the Manager or its affiliates for, the expenses related to investment personnel of the Manager and its affiliates who provide services to KREF. However, KREF does reimburse the Manager for KREF's allocable share of compensation paid to certain of the Manager's non-investment personnel, based on the percentage of time devoted by such personnel to KREF's affairs.

***Affiliate Services***

In connection with the ATM and various financing arrangements, and in consideration for its services as a structuring and placement agent, KKR Capital Markets LLC ("KCM"), an affiliate of KKR, is entitled to receive commissions for the shares of KREF common stock that KCM sells and structuring fees generally based on a contractual percentage of the respective financing provided under each facility.

KREF has entered into various agreements with K-Star Asset Management LLC ("K-Star"), an affiliate of KKR, in connection with KREF's investments, including but not limited to due diligence and value-add services. Under the agreements, K-Star is entitled to receive certain fees in consideration for its services.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

The following table summarizes the fees incurred in connection with the Management Agreement and various affiliate services:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | | **2025** | **2024** | **2025** | **2024** |
| Manager | Management fees | $5619 | $5901 | $17153 | $18614 |
| Manager | Expense reimbursements | 1073 | 890 | 3701 | 2967 |
| KCM | Structuring fees | 1604 |  | 6655 |  |
| K-Star | Diligence and servicing fees | 124 |  | 319 |  |
| Total |  | $8420 | $6791 | $27828 | $21581 |

---

Management fees are paid one quarter in arrears and, together with any accrued expense reimbursements, KCM and K-Star fees, are included within "Due to affiliates" in the Condensed Consolidated Balance Sheets.

***Real Estate Owned and Equity Method Investment, Real Estate Asset***

In June 2024, KREF and a KKR affiliate took title to a Mountain View, CA office property. The property was held in a joint venture where KREF and the KKR affiliate held a 68.9% and 31.1% interest, respectively, and shared decision-making (Note 10).

In June 2024, KREF and a KKR affiliate took title to a Seattle, WA life science property through a deed-in-lieu of foreclosure under a TIC agreement. Under the TIC agreement, KREF and the KKR affiliate held an economic interest of 74.6% and 25.4%, respectively, and shared decision-making (Note 10).

***Consolidated CMBS Trust***

In June 2025, KREF and a KKR affiliate invested in securities issued by a CMBS trust controlled and consolidated by KREF (Note 8). As of September 30, 2025, the CMBS securities held by the KKR affiliate had a fair value of $54.6 million and was presented within "Variable interest entity liabilities, CMBS trust, at fair value" on the Condensed Consolidated Balance Sheets.

***Co-Borrowing Financing Facility***

In June 2025, KREF, through a wholly owned subsidiary ("KREF Borrower"), and a KKR affiliate, through a wholly owned subsidiary ("Other KKR Borrower"), entered into a term lending financing facility with a financial institution ("KREF Lending XVI Facility"). Currently the facility is collateralized by one loan investment, but could be expanded in the future to include more loan investments. In such event, all loan investments thereunder would be cross-collateralized. An affiliate of KREF Borrower ("KREF Guarantor") guarantees the obligations of KREF Borrower, and an affiliate of Other KKR Borrower guarantees the obligations of Other KKR Borrower, with each respective guarantor's liability capped at its respective borrower's share of the KREF Lending XVI Facility. As of September 30, 2025, KREF's share of the outstanding financing principal was 50%, or $100.0 million.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 16. Fair Value of Financial Instruments**

The carrying values and fair values of KREF's financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value, as of September 30, 2025, were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
| |<br>**Principal Balance** |<br>**Amortized Cost** |<br>**Carrying Value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets** | | | | | | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $204094 | $204094 | $204094 | $204094 | $— | $— | $204094 |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans, held-for-investment, net | 5310411 | 5296610 | 5139266 |  |  | 5150536 | 5150536 |
| &nbsp;&nbsp;&nbsp;Variable interest entity assets, CMBS trust, at fair value | 490457 | 489134 | 503418 |  |  | 503418 | 503418 |
| Total | $6004962 | $5989838 | $5846778 | $204094 | $— | $5653954 | $5858048 |
| **Liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Secured financing agreements, net | $2706777 | $2699119 | $2699119 | $— | $— | $2699119 | $2699119 |
| &nbsp;&nbsp;&nbsp;Collateralized loan obligations, net | 1324479 | 1324409 | 1324409 |  |  | 1314678 | 1314678 |
| &nbsp;&nbsp;&nbsp;Secured term loan, net | 648375 | 633541 | 633541 |  | 647973 |  | 647973 |
| &nbsp;&nbsp;&nbsp;Variable interest entity liabilities, CMBS trust, at fair value | 470961 | 480167 | 494397 |  |  | 494397 | 494397 |
| Total | $5150592 | $5137236 | $5151466 | $— | $647973 | $4508194 | $5156167 |

---

The carrying values and fair values of KREF's financial assets recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2024, were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Fair Value** | **Fair Value** | **Fair Value** | **Fair Value** |
| |<br>**Principal Balance** |<br>**Amortized Cost** |<br>**Carrying Value** | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Assets** | | | | | | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $104933 | $104933 | $104933 | $104933 | $— | $— | $104933 |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans, held-for-investment, net | 5900163 | 5888622 | 5771519 |  |  | 5768648 | 5768648 |
| Total | $6005096 | $5993555 | $5876452 | $104933 | $— | $5768648 | $5873581 |
| **Liabilities** |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Secured financing agreements, net | $2804895 | $2798674 | $2798674 | $— | $— | $2798674 | $2798674 |
| &nbsp;&nbsp;&nbsp;Collateralized loan obligations, net | 1766231 | 1766104 | 1766104 |  |  | 1745561 | 1745561 |
| &nbsp;&nbsp;&nbsp;Secured term loan, net | 339500 | 333853 | 333853 |  | 341198 |  | 341198 |
| Total | $4910626 | $4898631 | $4898631 | $— | $341198 | $4544235 | $4885433 |

---

The following table presents the activities of Level 3 financial assets and liabilities recorded at fair value:

---

| | | | |
|:---|:---|:---|:---|
| | **Variable interest entity assets, CMBS trust, at fair value** | **Variable interest entity liabilities, CMBS trust, at fair value** | **Net** |
| **Balance as of December 31, 2024** | $— | $— | $— |
| Purchases and sales/repayments |  |  |  |
| &nbsp;&nbsp;Purchase | 8967 |  | 8967 |
| &nbsp;&nbsp;Consolidation of CMBS trust | 480666 | 480666 |  |
| &nbsp;&nbsp;Repayments | (499) | (499) |  |
| Gains (losses) included in net income |  |  |  |
| &nbsp;&nbsp;Unrealized gain (loss) included in change in net assets of consolidated variable interest entity, CMBS trust | 14284 | 14230 | 54 |
| Other<sup>(A)</sup> | 2402 | 2306 | 96 |
| **Balance as of September 30, 2025** | $505820 | $496703 | $9117 |

---

(A) &nbsp;&nbsp;&nbsp;&nbsp;Primarily consists of changes in accrued interest.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

The following table contains the Level 3 inputs used to value assets and liabilities on a recurring and nonrecurring basis or where KREF discloses fair value as of September 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Fair Value** | **Valuation Methodologies** | **Unobservable Inputs** | **Weighted Average**<sup>(A)</sup> | **Range** |
| **Assets** | | | | | |
| &nbsp;&nbsp;&nbsp;Commercial real estate loans, held-for-investment | $5150536 | Discounted cash flow | Discount margin | 4.0% | 2.4% - 5.7% |
|  |  |  | Discount rate | 11.0% | n.a. |
|  |  |  | Capitalization rate | 9.9% | 9.4% - 10.3% |
| &nbsp;&nbsp;&nbsp;Variable interest entity assets, CMBS trust, at fair value | 503418 | Discounted cash flow | Yield | 6.1% | 4.3% - 32.9% |
|  |  |  | Duration | 6.9 | 2.3 - 7.3 |
| **Liabilities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Variable interest entity liabilities, CMBS trust, at fair value | $494397 | Discounted cash flow | Yield | 6.1% | 4.3% - 32.9% |
|  |  |  | Duration | 6.9 | 2.3 - 7.3 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Represents the average of the input value, weighted by the unpaid principal balance of the financial instrument.

***Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis***

Certain assets not measured at fair value on an ongoing basis but subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment, are measured at fair value on a nonrecurring basis. KREF measures commercial real estate loans held-for-sale at the lower of cost or fair value and may be required, from time to time, to record a nonrecurring fair value adjustment. KREF measures commercial real estate loans held-for-investment at amortized cost, but may be required, from time to time, to record a nonrecurring fair value adjustment in the form of a CECL allowance.

***Assets and Liabilities for Which Fair Value is Only Disclosed***

KREF does not carry its secured financing agreements at fair value as management did not elect the fair value option for these liabilities. As of September 30, 2025, the fair value of KREF's financing facilities approximated their respective carrying value.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 17. Income Taxes** 

KREF has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ended December 31, 2014. A REIT is generally not subject to U.S. federal and state income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. A REIT will also be subject to a nondeductible excise tax to the extent certain percentages of its taxable income are not distributed within specified dates. While KREF expects to distribute at least 90% of its net taxable income for the foreseeable future, KREF will continue to evaluate its capital and liquidity needs in light of existing economic and market conditions.

KREF consolidates subsidiaries that incur U.S. federal, state and local income taxes, based on the tax jurisdiction in which each subsidiary operates. There were no material deferred tax assets or liabilities as of September 30, 2025 and December 31, 2024.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u> 

**KKR Real Estate Finance Trust Inc.**

**Notes to Condensed Consolidated Financial Statements**

(amount in tables in thousands, except per share amounts)

**Note 18. Subsequent Event**

In October 2025, KREF paid $16.3 million in dividends on its common stock, or $0.25 per share, with respect to the third quarter of 2025, to stockholders of record on September 30, 2025.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto appearing elsewhere in this Form 10-Q. The historical consolidated financial data below reflects the historical results and financial position of KREF. In addition, this discussion and analysis contains forward-looking statements and involves numerous risks and uncertainties, including those described under Part I, Item 1A. "Risk Factors" in the Form 10-K and under "Cautionary Note Regarding Forward-Looking Statements." Actual results may differ materially from those contained in any forward-looking statements.*

**Overview**

***Our Company and Our Investment Strategy***

We are a real estate finance company that focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate ("CRE") assets. We are a Maryland corporation that was formed and commenced operations on October 2, 2014, and we have elected to qualify as a REIT for U.S. federal income tax purposes. Our investment strategy is to originate or acquire transitional senior loans collateralized by institutional-quality CRE assets that are owned and operated by experienced and well-capitalized sponsors and located in top markets with strong underlying fundamentals. The assets in which we invest include senior loans, mezzanine loans, preferred equity and commercial mortgage-backed securities ("CMBS") and other real estate-related securities. Our investment allocation strategy is influenced by prevailing market conditions at the time we invest, including interest rate, economic and credit market conditions. In addition, we may invest in assets other than our target assets in the future, in each case subject to maintaining our qualification as a REIT for U.S. federal income tax purposes and our exclusion from registration under the Investment Company Act. Our investment objective is capital preservation and generating attractive risk-adjusted returns for our stockholders over the long term, primarily through dividends.

***Our Manager***

We are externally managed by our Manager, KKR Real Estate Finance Manager LLC, an indirect subsidiary of KKR & Co. Inc. KKR is a leading global investment firm with an over 45-year history of leadership, innovation, and investment excellence. KKR manages multiple alternative asset classes, including private equity, real estate, energy, infrastructure and credit, with strategic manager partnerships that manage hedge funds. Our Manager manages our investments and our day-to-day business and affairs in conformity with our investment guidelines and other policies that are approved and monitored by our board of directors. Our Manager is responsible for, among other matters, (i) the selection, origination or purchase and sale of our portfolio investments, (ii) our financing activities and (iii) providing us with investment advisory services. Our Manager is also responsible for our day-to-day operations and performs (or causes to be performed) such services and activities relating to our investments and business and affairs as may be appropriate. Our investment decisions are approved by an investment committee of our Manager that is comprised of senior investment professionals of KKR, including senior investment professionals of KKR's global real estate group. For a summary of certain terms of the management agreement, see Note 15 to our condensed consolidated financial statements included in this Form 10-Q.

***Macroeconomic Environment***

The last several quarters have been marked by significant volatility in global markets, driven by inflation, elevated interest rates, slowing economic growth, increased tariffs, trade tensions, geopolitical conditions, and political and regulatory uncertainty. These conditions have adversely impacted, and may continue to adversely impact, the U.S. and global economies, the real estate industry and our borrowers, and the performance of the properties securing our loans. Collectively, these market dynamics pose challenges to commercial real estate values and transaction activity, which have resulted in lower demand for office space and elevated levels of vacancy and default rates.

Although the Federal Reserve lowered interest rates by 50 basis points in September 2024, by 25 basis points in November 2024, by 25 basis points in December 2024 and by 25 basis points in September 2025, interest rates remain elevated and the timing, direction and extent of any future interest rate changes remain uncertain. Although higher interest rates will generally correlate to increases in our net income, increases in interest rates may adversely affect our existing borrowers and the cost of financing their properties and lead to nonperformance. Higher interest rates may also adversely impact real estate asset values and increase our interest expense, which expense may not be fully offset by any resulting increase in interest income.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**Key Financial Measures and Indicators**

As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per share, dividends declared, Distributable Earnings and book value per share.

***Earnings (Loss) Per Share and Dividends Declared***

The following table sets forth the calculation of basic and diluted net income (loss) per share and dividends declared per share (amounts in thousands, except share and per share data):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** |
| | **September 30, 2025** | **June 30, 2025** |
| **Net income (loss) attributable to common stockholders** | $8079 | $(35425) |
| **Weighted-average number of shares of common stock outstanding, basic and diluted** | 65876727 | 67191309 |
| **Net income (loss) per share, basic and diluted** | $0.12 | $(0.53) |
| **Dividends declared per share** | $0.25 | $0.25 |

---

***Distributable Earnings***

Distributable Earnings, a measure that is not prepared in accordance with GAAP, is a key indicator of our ability to generate sufficient income to pay our quarterly dividends and in determining the amount of such dividends, which is the primary focus of yield/income investors who comprise a significant portion of our investor base. Accordingly, we believe providing Distributable Earnings on a supplemental basis to our net income as determined in accordance with GAAP is helpful to our stockholders in assessing the overall performance of our business.

We define Distributable Earnings as net income (loss) attributable to our stockholders or, without duplication, owners of our subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items agreed upon after discussions between our Manager and our board of directors and after approval by a majority of our independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings only applies to debt investments related to real estate to the extent we foreclose upon the property or properties underlying such debt investments.

While Distributable Earnings excludes the impact of our unrealized current provision for (reversal of) credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is generally determined (i) upon the resolution of a loan (i.e. when the loan is repaid, fully or partially, or, in the case of foreclosure, when the underlying asset is sold), or (ii) if, in our determination, it is nearly certain that all amounts due under a loan will not be collected.

Distributable Earnings should not be considered as a substitute for GAAP net income or taxable income. We caution readers that our methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, our reported Distributable Earnings may not be comparable to similar measures presented by other REITs.

We also use Distributable Earnings (before incentive compensation payable to our Manager) to determine the management and incentive compensation we pay our Manager. For its services to KREF, our Manager is entitled to a quarterly management fee equal to the greater of $62,500 or 0.375% of weighted average adjusted equity and quarterly incentive compensation equal to 20.0% of the excess of (a) the trailing 12-month Distributable Earnings (before incentive compensation payable to our Manager) over (b) 7.0% of the trailing 12-month weighted average adjusted equity ("Hurdle Rate"), less incentive compensation KREF already paid to the Manager with respect to the first three calendar quarters of such trailing 12-month period. For purposes of calculating incentive compensation under our Management Agreement, adjusted equity excludes: (i) the effects of equity issued that provides for fixed distributions or other debt characteristics and (ii) the unrealized provision for (reversal of) credit losses. The quarterly incentive compensation is calculated and paid in arrears with a three-month lag.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

The following table provides a reconciliation of GAAP net income attributable to common stockholders to Distributable Earnings (amounts in thousands, except share and per share data):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | | **Three Months Ended** | |
| | **September 30, 2025** | **Per Diluted**<br>**Share\*** | **June 30, 2025** | **Per Diluted**<br>**Share\*** |
| **Net Income (Loss) Attributable to Common Stockholders** | $8079 | $0.12 | $(35425) | $(0.53) |
| **Adjustments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-cash equity compensation expense | 2174 | 0.03 | 2141 | 0.03 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 981 | 0.01 | 740 | 0.01 |
| &nbsp;&nbsp;&nbsp;Unrealized (gains) or losses, net | (65) |  | 238 |  |
| &nbsp;&nbsp;&nbsp;Provision for credit losses, net | 975 | 0.01 | 49848 | 0.74 |
| &nbsp;&nbsp;&nbsp;Gain on sale of investments |  |  | (1192) | (0.02) |
| **Distributable Earnings before realized gains or losses** | $12144 | $0.18 | $16350 | $0.24 |
| &nbsp;&nbsp;&nbsp;Realized loss on loan write-offs, net | (14394) | (0.22) | (20434) | (0.30) |
| &nbsp;&nbsp;&nbsp;Realized gain on sale of investments |  |  | 1192 | 0.02 |
| **Distributable Earnings (Loss)** | $(2250) | $(0.03) | $(2892) | $(0.04) |
| **Diluted weighted average common shares outstanding** | 65876727 |  | 67191309 |  |

---

\* Per share amounts presented may not foot due to rounding.

***Book Value per Share***

We believe that book value per share is helpful to stockholders in evaluating the growth of our company as we have scaled our equity capital base and continue to invest in our target assets.

The following table calculates our book value per share (amounts in thousands, except share and per share data):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| **KKR Real Estate Finance Trust Inc. stockholders' equity** | $1229763 | $1345030 |
| &nbsp;&nbsp;Series A preferred stock (liquidation preference of $25.00 per share) | (327750) | (327750) |
| **Common stockholders' equity** | $902013 | $1017280 |
| **Shares of common stock issued and outstanding at period end** | 65227255 | 68713596 |
| &nbsp;&nbsp;Add: Deferred stock units | 239922 | 206112 |
| **Total shares outstanding at period end** | 65467177 | 68919708 |
| **Book value per share** | $13.78 | $14.76 |

---

Book value as of September 30, 2025 included the impact of an estimated CECL allowance of $160.4 million, or ($2.45) per share. See Note 2 — Summary of Significant Accounting Policies, to our condensed consolidated financial statements included in this Form 10-Q for detailed discussion of allowance for credit losses.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**Our Portfolio**

We have established a $5,850.8 million portfolio of diversified investments, consisting primarily of senior commercial real estate loans as of September 30, 2025.

During the three months ended September 30, 2025, we collected 100% of interest payments due on our loan portfolio. As of September 30, 2025, the average risk rating of our loan portfolio was 3.1, weighted by loan outstanding principal. As of September 30, 2025, the average loan commitment in our portfolio was $110.3 million and multifamily and industrial loans comprised 58% of our loan portfolio.

In addition, we owned Real Estate Assets with an investment amount of $495.8 million, comprised of the acquired properties (directly or indirectly) and capitalized redevelopment costs, as of September 30, 2025. These properties are reflected on our Condensed Consolidated Balance Sheets.

We have executed on our primary investment strategy of originating floating-rate transitional senior loans and, as we continue to scale our loan portfolio, we expect that our originations will be heavily weighted toward floating-rate loans. As of September 30, 2025, substantially all of our loans by outstanding principal earned a floating rate of interest. We expect the majority of our future investment activity to focus on originating floating-rate senior loans that we finance with our repurchase and other financing facilities. As of September 30, 2025, all of our investments were located in the United States.

The following charts illustrate the diversification and composition of our loan portfolio as of September 30, 2025, based on type of investment, interest rate, underlying property type, geographic location, vintage and LTV:

![MD&A Loan Portfolio Charts - 3Q'25.jpg](kref-20250930_g2.jpg)

(A)&nbsp;&nbsp;&nbsp;&nbsp;Charts are based on outstanding principal of our commercial real estate loans. Excludes fully written off loans and loans held in consolidated CMBS trust.

(B)&nbsp;&nbsp;&nbsp;&nbsp;We classify a loan as life science if more than 50% of the gross leasable area is leased to, or will be converted to, life science-related space.

(C)&nbsp;&nbsp;&nbsp;&nbsp;"Other" property type includes Student Housing (2%) and Mixed Use (<1%).

(D)&nbsp;&nbsp;&nbsp;&nbsp;LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated. Weighted average LTV excludes risk-rated 5 loans.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

The following table details our quarterly loan activity (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **September 30, 2025** | **June 30, 2025** | **March 31, 2025** | **December 31, 2024** |
| Loan originations | $131850 | $210650 | $376270 | $— |
| Loan fundings | $84149 | $230232 | $405667 | $53044 |
| Loan repayments | (479658) | (450053) | (183595) | (457033) |
| Net fundings | (395509) | (219821) | 222072 | (403989) |
| PIK interest | 410 | 369 | 402 | 388 |
| Net write-offs | (14394) | (20434) |  | (35902) |
| Transfer to REO | (71081) | (91766) |  |  |
| Total activity | $(480574) | $(331652) | $222474 | $(439503) |

---

The following table details overall statistics for our loan portfolio as of September 30, 2025 (amounts in thousands):

---

| | | | |
|:---|:---|:---|:---|
| | **Outstanding Principal** | **Outstanding Principal** | **Outstanding Principal** |
| | **Total** | **Floating Rate Loans** | **Fixed Rate Loans**<sup>(A)</sup> |
| Number of loans<sup>(B)</sup> | 52 | 52 |  |
| Principal balance | $5310411 | $5236011 | $74400 |
| Amortized cost | 5296610 | 5222210 | 74400 |
| Unfunded loan commitments | 426348 | 421348 | 5000 |
| Weighted average cash coupon<sup>(C)</sup> | 7.4% | S + 3.3% | \* |
| Weighted average all-in yield<sup>(C)</sup> | 7.8% | S + 3.6% | \* |
| Weighted average maximum maturity (years)<sup>(D)</sup> | 1.7 | 1.7 | 0.8 |
| Weighted average LTV<sup>(E)</sup> | 65% | 65% | n.a. |

---

\*&nbsp;&nbsp;&nbsp;&nbsp;Rounds to zero

(A)&nbsp;&nbsp;&nbsp;&nbsp;Represents a mezzanine loan with a commitment of $79.4 million accompanying a senior loan. $74.4 million of loan principal was funded and on nonaccrual status as of September 30, 2025. Refer to Note 3 to our condensed consolidated financial statements for additional information.

(B) &nbsp;&nbsp;&nbsp;&nbsp;Excludes fully written off loans.&nbsp;&nbsp;&nbsp;&nbsp;

(C) &nbsp;&nbsp;&nbsp;&nbsp;In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs and purchase discounts. Weighted average cash coupon and all-in yield excludes loans on nonaccrual status.

(D) &nbsp;&nbsp;&nbsp;&nbsp;Maximum maturity assumes all extension options are exercised by the borrower; however, our loans may be repaid prior to such date.

(E) &nbsp;&nbsp;&nbsp;&nbsp;LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated. Weighted average LTV excludes risk-rated 5 loans.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

The table below sets forth additional information relating to our portfolio as of September 30, 2025 (amounts in millions):

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Investment**<sup>(A)</sup> | **Location** | **Property Type** | **Investment Date** | **Total Whole Loan**<sup>(B)</sup> | **Committed Principal/Investment Amount** | **Outstanding Principal/ Investment Amount** | **Net Equity**<sup>(C)</sup> | **Coupon**<sup>(D)(E)</sup> | **Coupon**<sup>(D)(E)</sup> | **Max Remaining Term (Years)**<sup>(D)(F)</sup> | **Loan/Investment Per SF / Unit / Key**<sup>(G)</sup> | **Origination LTV**<sup>(D)(H)</sup> | **Risk Rating** |
| | **Senior Loans** | **Senior Loans** | **Senior Loans** | **Senior Loans** | | | | | | | | | | |
| 1 | Senior Loan | Boston, MA | Life Science | 8/3/2022 | $312.5 | $312.5 | $229.6 | $33.8 | + | 4.2% | 1.9 | $747 / SF | 56% | 3 |
| 2 | Senior Loan | Bellevue, WA | Office | 9/13/2021 | 520.8 | 260.4 | 224.6 | 55.9 | + | 3.7 | 1.5 | $851 / SF | 63 | 3 |
| 3 | Senior Loan | Various | Industrial | 4/28/2022 | 504.5 | 252.3 | 252.3 | 64.1 | + | 2.7 | 1.6 | $98 / SF | 64 | 3 |
| 4 | Senior Loan | Bronx, NY | Industrial | 8/27/2021 | 381.2 | 228.7 | 217.2 | 56.0 | + | 8.2 | 0.4 | $277 / SF | 52 | 3 |
| 5 | Senior Loan | Los Angeles, CA | Multifamily | 2/19/2021 | 220.0 | 220.0 | 220.0 | 46.6 | + | 2.9 | 0.4 | $410,430 / unit | 68 | 3 |
| 6 | Senior Loan | Minneapolis, MN | Office | 11/13/2017 | 199.4 | 199.4 | 194.4 | 96.2 | + | 2.3 | 0.8 | $182 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. | 5 |
| 7 | Senior Loan | The Woodlands, TX | Hospitality | 9/15/2021 | 181.4 | 181.4 | 181.4 | 38.7 | + | 4.3 | 1.0 | $199,513 / key | 64 | 2 |
| 8 | Senior Loan | Washington, D.C. | Office | 11/9/2021 | 181.0 | 181.0 | 179.5 | 71.2 | + | 3.1 | 2.2 | $503 / SF | 55 | 3 |
| 9 | Senior Loan | West Palm Beach, FL | Multifamily | 12/29/2021 | 171.5 | 171.5 | 171.4 | 36.5 | + | 2.8 | 1.3 | $211,091 / unit | 73 | 2 |
| 10 | Senior Loan | Boston, MA | Life Science | 4/27/2021 | 332.3 | 166.2 | 164.1 | 59.8 | + | 3.7 | 0.4 | $681 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. | 5 |
| 11 | Senior Loan | Redwood City, CA | Life Science | 9/30/2022 | 580.9 | 145.2 | 91.3 | 17.9 | + | 4.5 | 2.0 | $886 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53 | 3 |
| 12 | Senior Loan | Plano, TX | Office | 2/6/2020 | 141.1 | 141.1 | 137.1 | 30.3 | + | 4.1 | 0.9 | $189 / SF | 64 | 3 |
| 13 | Senior Loan | Raleigh, NC | Industrial | 6/24/2025 | 407.6 | 125.0 | 125.0 | 23.9 | + | 2.4 | 4.8 | $152 / SF | 71 | 3 |
| 14 | Senior Loan | Various | Industrial | 6/15/2022 | 240.4 | 120.2 | 106.0 | 27.0 | + | 2.9 | 1.8 | $130 / SF | 51 | 3 |
| 15 | Senior Loan | Arlington, VA | Multifamily | 1/20/2022 | 119.3 | 119.3 | 119.3 | 27.5 | + | 3.1 | 1.4 | $397,644 / unit | 65 | 3 |
| 16 | Senior Loan | Cambridge, MA | Life Science | 12/22/2021 | 401.3 | 115.7 | 97.6 | 25.2 | + | 4.0 | 1.3 | $1,072 / SF | 51 | 4 |
| 17 | Senior Loan | San Diego, CA | Multifamily | 10/20/2021 | 115.4 | 115.4 | 113.3 | 41.4 | + | 3.6 | 1.1 | $490,310 / unit | 71 | 4 |
| 18 | Senior Loan | Philadelphia, PA | Office | 6/19/2018 | 114.3 | 114.3 | 114.3 | 25.9 | + | 2.8 | 1.4 | $117 / SF | 71 | 3 |
| 19 | Senior Loan | Pittsburgh, PA | Student Housing | 6/8/2021 | 112.5 | 112.5 | 112.5 | 21.8 | + | 3.0 | 0.7 | $155,602 / unit | 74 | 2 |
| 20 | Senior Loan | Chicago, IL | Office | 7/15/2019 | 105.0 | 105.0 | 90.7 | 53.8 | + | 2.3 | 2.9 | $87 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;59 | 4 |
| 21 | Senior Loan | Las Vegas, NV | Multifamily | 12/28/2021 | 101.1 | 101.1 | 101.1 | 21.3 | + | 2.8 | 1.3 | $191,460 / unit | 61 | 3 |
| 22 | Senior Loan | Washington, D.C. | Office | 1/13/2022 | 228.5 | 100.0 | 99.9 | 15.0 | + | 3.3 | 2.4 | $365 / SF | 55 | 3 |
| 23 | Senior Loan | Cary, NC | Multifamily | 11/21/2022 | 100.0 | 100.0 | 95.3 | 21.5 | + | 3.4 | 2.2 | $244,275 / unit | 63 | 3 |
| 24 | Senior Loan | Boston, MA | Industrial | 6/28/2022 | 273.2 | 95.7 | 95.6 | 20.1 | + | 2.7 | 2.8 | $197 / SF | 52 | 3 |
| 25 | Senior Loan | Orlando, FL | Multifamily | 12/14/2021 | 95.4 | 95.4 | 95.4 | 24.7 | + | 3.1 | 1.3 | $251,715 / unit | 74 | 3 |
| 26 | Senior Loan | Brandon, FL | Multifamily | 1/13/2022 | 90.3 | 90.3 | 74.5 | 22.2 | + | 3.1 | 1.4 | $193,377 / unit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;75 | 3 |
| 27 | Senior Loan | Brisbane, CA | Life Science | 7/22/2021 | 89.8 | 89.8 | 82.3 | 23.4 | + | 3.4 | 2.9 | $711 / SF | 71 | 3 |
| 28 | Senior Loan | San Carlos, CA | Life Science | 2/1/2022 | 139.7 | 89.1 | 60.1 | 21.6 | + | 1.0 | 2.1 | $410 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68 | 3 |
| 29 | Senior Loan | Dallas, TX | Office | 1/22/2021 | 87.0 | 87.0 | 87.0 | 18.9 | + | 3.4 | 0.4 | $294 / SF | 65 | 3 |
| 30 | Senior Loan | North Palm Beach, FL | Multifamily | 5/22/2025 | 85.7 | 85.7 | 85.4 | 16.3 | + | 2.3 | 4.7 | $341,600 / unit | 72 | 3 |
| 31 | Senior Loan | Various | Multifamily | 1/31/2025 | 142.2 | 85.3 | 84.4 | 20.6 | + | 3.0 | 4.4 | $212,490 / unit | 70 | 3 |
| 32 | Senior Loan | Miami, FL | Multifamily | 10/14/2021 | 84.5 | 84.5 | 84.5 | 20.5 | + | 2.9 | 1.1 | $287,415 / unit | 76 | 3 |
| 33 | Senior Loan | Phoenix, AZ | Multifamily | 3/26/2025 | 79.0 | 79.0 | 79.0 | 15.2 | + | 2.3 | 4.5 | $312,332 / unit | 69 | 3 |
| 34 | Senior Loan | Dallas, TX | Multifamily | 12/23/2021 | 78.4 | 78.4 | 78.4 | 18.7 | + | 2.9 | 1.3 | $241,164 / unit | 67 | 3 |
| 35 | Senior Loan | Philadelphia, PA | Mixed Use | 6/28/2024 | 77.7 | 77.7 | 24.4 | 8.8 | + | 4.0 | 3.8 | $75 / SF | 72 | 3 |
| 36 | Senior Loan | Nashville, TN | Hospitality | 1/6/2025 | 75.8 | 75.8 | 75.0 | 14.4 | + | 3.3 | 4.3 | $326,087 / key | 64 | 3 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Investment**<sup>(A)</sup> | **Location** | **Property Type** | **Investment Date** | **Total Whole Loan**<sup>(B)</sup> | **Committed Principal/Investment Amount** | **Outstanding Principal/ Investment Amount** | **Net Equity**<sup>(C)</sup> | **Coupon**<sup>(D)(E)</sup> | **Coupon**<sup>(D)(E)</sup> | **Max Remaining Term (Years)**<sup>(D)(F)</sup> | **Loan/Investment Per SF / Unit / Key**<sup>(G)</sup> | **Origination LTV**<sup>(D)(H)</sup> | **Risk Rating** |
| 37 | Senior Loan | Delray Beach, FL | Multifamily | 3/26/2025 | 73.0 | 73.0 | 73.0 | 14.1 | + | 2.3 | 4.5 | $257,042 / unit | 71 | 3 |
| 38 | Senior Loan | Melville, NY | Multifamily | 7/25/2025 | 142.1 | 71.1 | 7.6 | 6.9 | + | 3.9 | 4.9 | $475,251 / unit | 55 | 3 |
| 39 | Senior Loan | Hollywood, FL | Multifamily | 12/20/2021 | 71.0 | 71.0 | 71.0 | 15.8 | + | 2.8 | 1.3 | $287,449 / unit | 74 | 3 |
| 40 | Senior Loan | Charlotte, NC | Multifamily | 12/14/2021 | 70.3 | 70.3 | 68.0 | 14.0 | + | 3.1 | 1.3 | $184,712 / unit | 74 | 3 |
| 41 | Senior Loan | Denver, CO | Multifamily | 9/14/2021 | 70.3 | 70.3 | 70.3 | 14.5 | + | 2.8 | 1.0 | $290,496 / unit | 78 | 3 |
| 42 | Senior Loan | Plano, TX | Multifamily | 3/31/2022 | 63.3 | 63.3 | 63.3 | 29.6 | + | 2.8 | 1.9 | $238,000 / unit | 75 | 3 |
| 43 | Senior Loan | Dallas, TX | Multifamily | 8/18/2021 | 63.1 | 63.1 | 63.1 | 14.5 | + | 3.9 | 0.9 | $175,278 / unit | 70 | 3 |
| 44 | Senior Loan | Atlanta, GA | Multifamily | 9/16/2025 | 60.8 | 60.8 | 60.8 | 11.6 | + | 2.4 | 5.0 | $211,847 / unit | 67 | 3 |
| 45 | Senior Loan | Durham, NC | Multifamily | 12/15/2021 | 59.5 | 59.5 | 57.9 | 23.7 | + | 2.8 | 2.3 | $167,965 / unit | 67 | 3 |
| 46 | Senior Loan | San Antonio, TX | Multifamily | 4/20/2022 | 57.6 | 57.6 | 56.4 | 15.3 | + | 2.7 | 1.6 | $164,950 / unit | 79 | 3 |
| 47 | Senior Loan | Sharon, MA | Multifamily | 12/1/2021 | 51.9 | 51.9 | 51.9 | 10.7 | + | 2.9 | 1.2 | $270,443 / unit | 70 | 3 |
| 48 | Senior Loan | Atlanta, GA | Multifamily | 12/10/2021 | 51.4 | 51.4 | 51.4 | 13.0 | + | 3.0 | 1.3 | $170,197 / unit | 67 | 3 |
| 49 | Senior Loan | Reno, NV | Industrial | 4/28/2022 | 140.4 | 50.5 | 50.5 | 11.5 | + | 2.7 | 1.6 | $117 / SF | 74 | 3 |
| 50 | Senior Loan | Carrollton, TX | Multifamily | 4/1/2022 | 43.7 | 43.7 | 43.7 | 20.5 | + | 2.9 | 1.9 | $136,478 / unit | 74 | 3 |
| 51 | Senior Loan | Dallas, TX | Multifamily | 4/1/2022 | 42.4 | 42.4 | 42.4 | 20.4 | + | 2.9 | 0.2 | $119,144 / unit | 73 | 3 |
| 52 | Senior Loan | Georgetown, TX | Multifamily | 12/16/2021 | 35.2 | 35.2 | 35.2 | 8.8 | + | 3.4 | 1.3 | $167,381 / unit | 68 | 3 |
|  | **Total/Weighted Average <br>Senior Loans Unlevered** | **Total/Weighted Average <br>Senior Loans Unlevered** | **Total/Weighted Average <br>Senior Loans Unlevered** | **Total/Weighted Average <br>Senior Loans Unlevered** | $**8266.5** | $**5736.8** | $**5310.4** | $**1401.4** | + | **3.3%** | **1.7** |  | **65%** | **3.1** |
|  | **Real Estate Assets** | **Real Estate Assets** | **Real Estate Assets** | **Real Estate Assets** |  |  |  |  |  |  |  |  |  |  |
| 1 | Real Estate Owned | Mountain View, CA | Office | 6/28/2024 | n.a. | $121 | $121 | $121 |  | n.a. | n.a. | $391 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. |  |
| 2 | Real Estate Owned | Portland, OR | Retail / Redevelopment | 12/16/2021 | n.a. | 94.5 | 94.5 | 94.5 |  | n.a. | n.a. | n.a. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. |  |
| 3 | Real Estate Owned | West Hollywood, CA | Condo | 4/15/2025 | n.a. | 94.2 | 94.2 | 39.2 |  | n.a. | n.a. | $2,527,027 / unit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. |  |
| 4 | Equity Method Investment<sup>(I)</sup> | Seattle, WA | Life Science | 6/28/2024 | n.a. | 92.7 | 92.7 | 51.7 |  | n.a. | n.a. | $583 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. |  |
| 5 | Real Estate Owned | Raleigh, NC | Multifamily | 8/12/2025 | n.a. | 71.5 | 71.5 | 31.5 |  | n.a. | n.a. | $223,438 / unit | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. |  |
| 6 | Real Estate Owned | Philadelphia, PA | Office | 12/22/2023 | n.a. | 21.9 | 21.9 | 21.9 |  | n.a. | n.a. | $104 / SF | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n.a. |  |
|  | **Total/Weighted Average <br>Real Estate Assets** | **Total/Weighted Average <br>Real Estate Assets** | **Total/Weighted Average <br>Real Estate Assets** | **Total/Weighted Average <br>Real Estate Assets** |  | $**495.8** | $**495.8** | $**359.7** |  |  |  |  |  |  |
|  | **CMBS Investments** | **CMBS Investments** | **CMBS Investments** | **CMBS Investments** |  |  |  |  |  |  |  |  |  |  |
| 1 | CMBS B-Pieces<sup>(J)</sup> | Various | Various | 2/13/2017 | n.a. | $40 | $35.5 | $35.5 |  | 4.8% | 3.7 |  | 58% |  |
| 2 | CMBS B-Pieces | Various | Various | 6/18/2025 | n.a. | 9.1 | 9.1 | 9.1 |  | 5.9 | 9.5 |  | 42 |  |
|  | **Total/Weighted Average <br>CMBS Investments** | **Total/Weighted Average <br>CMBS Investments** | **Total/Weighted Average <br>CMBS Investments** | **Total/Weighted Average <br>CMBS Investments** |  | $**49.1** | $**44.6** | $**44.6** |  | **5.0%** | **4.9** |  | **55%** |  |
|  | **Grand Total / Weighted Average** | **Grand Total / Weighted Average** | **Grand Total / Weighted Average** | **Grand Total / Weighted Average** |  | $**6281.6** | $**5850.8** | $**1805.8** |  | **7.4%** | **1.8** |  | **65%** | **3.1** |

---

\*&nbsp;&nbsp;&nbsp;&nbsp;Numbers presented may not foot due to rounding.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

(A)&nbsp;&nbsp;&nbsp;&nbsp;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 fully funded senior mortgage loan of $120.0 million, at an interest rate of S+2.25% and (ii) a mezzanine note with a commitment of $79.4 million, of which $74.4 million was funded as of September 30, 2025, at a fixed interest rate of 4.5%. The mezzanine note interest is payment-in-kind ("PIK Interest"), which is capitalized, compounded, and added to the outstanding principal balance of the respective loan.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Total Whole Loan represents the total commitment of the entire loan originated, including participations by KKR affiliated entities.

(C)&nbsp;&nbsp;&nbsp;&nbsp;Net equity reflects (i) the amortized cost basis of our loans, net of borrowings; (ii) Real Estate Owned ("REO"), net of borrowings and noncontrolling interests, and (iii) the investment amount of equity method investments, net of borrowings.

(D)&nbsp;&nbsp;&nbsp;&nbsp;Weighted average is weighted by the current principal amount of our loans and the investment amount of CMBS investments. Weighted average LTV excludes risk-rated 5 loans and weighted average coupon excludes loans on nonaccrual status.

(E)&nbsp;&nbsp;&nbsp;&nbsp;Coupon expressed as spread over Term SOFR.

(F)&nbsp;&nbsp;&nbsp;&nbsp;Maximum remaining term (years) assumes all extension options are exercised, if applicable.

(G)&nbsp;&nbsp;&nbsp;&nbsp;Loan Per SF / Unit / Key is based on the current principal amount divided by the current SF / Unit / Key. For Senior Loans 1, 2, 4, 11, 16 and 38, Loan Per SF / Unit / Key is calculated as the total commitment amount of the loan divided by the proposed SF / Unit / Key.

(H)&nbsp;&nbsp;&nbsp;&nbsp;For senior loans, LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated; for mezzanine loans, LTV is based on the initial balance of the whole loan divided by the as-is appraised value as of the date the loan was originated; for CMBS investments, LTV is based on the weighted average LTV of the underlying loan pool at issuance. Weighted Average LTV excludes risk-rated 5 loans.

For Senior Loans 1, 2, 4, 11, 16 and 38, LTV is calculated as the total commitment amount of the loan divided by the as-stabilized value as of the date the loan was originated.

(I)&nbsp;&nbsp;&nbsp;&nbsp;Represents real estate assets held through a Tenant-in-Common ("TIC") agreement between us and a KKR affiliate. We hold a 74.6% economic interest in the real estate assets and share decision-making with the KKR affiliate under the TIC agreement.

(J) &nbsp;&nbsp;&nbsp;&nbsp;Represents our investment in an aggregator vehicle that invests in CMBS B-Pieces. Committed principal represents our total commitment to the aggregator vehicle whereas current principal represents the current funded amount.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

***Portfolio Surveillance and Credit Quality***

Our Manager actively manages our portfolio and assesses the risk of any deterioration in credit quality by quarterly evaluating the performance of the underlying property, the valuation of comparable assets as well as the financial wherewithal of the associated borrower. Our loan documents generally give us the right to receive regular property, borrower and guarantor financial statements; approve annual budgets and tenant leases; and enforce loan covenants and remedies. In addition, our Manager evaluates the macroeconomic environment, prevailing real estate fundamentals and micro-market dynamics where the underlying property is located. Through site inspections, local market experts and various data sources, as part of its risk assessment, our Manager monitors criteria such as new supply and tenant demand, market occupancy and rental rate trends, and capitalization rates and valuation trends.

We maintain a robust asset management relationship with our borrowers and have utilized these relationships to maximize the performance of our portfolio, including during periods of volatility.

We believe our loan sponsors are generally committed to supporting assets collateralizing our loans through additional equity investments, and that we will benefit from our long-standing core business model of originating senior loans collateralized by large assets in major markets with experienced, well-capitalized institutional sponsors. While we believe the principal amounts of our loans are generally adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of certain investments.

In addition to ongoing asset management, our Manager performs a quarterly review of our portfolio whereby each loan is assigned a risk rating of 1 through 5, from lowest risk to highest risk. Our Manager is responsible for reviewing, assigning and updating the risk ratings for each loan at least once per quarter. The risk ratings are based on many factors, including, but not limited to, underlying real estate performance, values of comparable properties, durability and quality of property cash flows, sponsor experience and financial wherewithal, and the existence of a risk-mitigating loan structure. Additional key considerations include debt service coverage ratios, real estate and credit market dynamics, and risk of default or principal loss. In performing this review and assigning a risk rating with respect to each loan, our Manager assesses these various factors holistically and considers these factors on a case-by-case basis, determining whether to give additional weight to any of these factors based upon the specific facts and circumstances of each loan. Based on a five-point scale, our loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1 (Very Low Risk); 2 (Low Risk); 3 (Medium Risk); 4 (High Risk/Potential for Loss); and 5 (Impaired/Loss Likely).

As of September 30, 2025, the average risk rating of our portfolio was 3.1, weighted by outstanding loan principal, consistent with that as of December 31, 2024.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>**Risk Rating** | **Number of Loans**<sup>(A)</sup> | **Carrying Value** | **Outstanding Principal** | **Outstanding Principal %\*** | **Number of Loans**<sup>(A)</sup> | **Carrying Value** | **Outstanding Principal** | **Outstanding Principal %\*** |
| 1 |  | $— | $— | —% |  | $— | $— | —% |
| 2 | 3 | 465393 | 465264 | 9 |  |  |  |  |
| 3 | 44 | 4175536 | 4185101 | 78 | 47 | 5393333 | 5400698 | 92 |
| 4 | 3 | 301488 | 301565 | 6 | 2 | 193687 | 193727 | 3 |
| 5 | 2 | 354193 | 358481 | 7 | 2 | 301602 | 305738 | 5 |
| Total loan receivable | 52 | $5296610 | $5310411 | 100% | 51 | $5888622 | $5900163 | 100% |
| Allowance for credit losses | Allowance for credit losses | (157344) |  |  |  | (117103) |  |  |
| Loan receivable, net |  | $5139266 |  |  |  | $5771519 |  |  |

---

\* Numbers presented may not foot due to rounding.

(A)&nbsp;&nbsp;&nbsp;&nbsp;Excludes fully written off loans.

In June 2024, we modified a risk-rated 5 mezzanine office loan located in Boston, MA, with an outstanding principal balance of $37.5 million. The terms of the modification included, among others, a restructure of the mezzanine loan into (i) a $12.5 million senior mezzanine note and (ii) a $25.0 million junior mezzanine note which is subordinate to a new $10.0 million sponsor interest. The senior and junior mezzanine notes earn a PIK interest rate of S+7.0% and have a maximum maturity of February 2028. Both mezzanine notes were deemed uncollectible and written off in June 2024.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

In December 2024, we modified a risk-rated 5 senior life science loan located in San Carlos, CA, with an outstanding principal balance of $103.2 million. The terms of the modification included a $13.1 million principal repayment, and a restructure of the $90.1 million senior loan (after the $13.1 million repayment) into (i) a $89.1 million committed senior mortgage loan (with $34.9 million in unfunded commitment), and (ii) a $35.9 million subordinated note which is subordinate to a new $20.0 million sponsor interest. The restructured senior loan earns a coupon rate of S+1.00% and has a new term of three years. The $35.9 million subordinated note was deemed uncollectible and written off in December 2024. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $60.1 million was risk-rated 3 as of September 30, 2025.

*CMBS B-Piece Investments*

Our Manager has processes and procedures in place to monitor and assess the credit quality of our CMBS B-Piece investments and promote the regular and active management of these investments. This includes reviewing the performance of the real estate assets underlying the loans that collateralize the investments and determining the impact of such performance on the credit and return profile of the investments. Our Manager holds monthly surveillance calls with the special servicer of our CMBS B-Piece investments to monitor the performance of our portfolio and discuss issues associated with the loans underlying our CMBS B-Piece investments. At each meeting, our Manager is provided with a due diligence submission for each loan underlying our CMBS B-Piece investments, which includes both property-level and loan-level information. These meetings assist our Manager in monitoring our portfolio, identifying any potential loan issues, determining if a re-underwriting of any loan is warranted and examining the timing and severity of any potential losses or impairments.

***Total Financing***

Our financing arrangements include our term loan facility, term lending agreements, collateralized loan obligations, secured term loan, warehouse facility, asset specific financing, corporate revolving credit agreement ("Revolver"), non-consolidated senior interest (collectively "Non-Mark-to-Market Financing Sources") and master repurchase agreements.

Our Non-Mark-to-Market Financing Sources, which accounted for 77% of our total financing as of September 30, 2025, are not subject to credit or capital markets mark-to-market provisions. The remaining 23% of our total financing, which is comprised of three master repurchase agreements, are only subject to credit marks.

We plan to expand and diversify our financing sources, especially those sources that provide non-mark-to-market financing, reducing our exposure to market volatility.

The following table summarizes our financing agreements (amounts in thousands):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **December 31, 2024** |
| | | **Borrowings** | **Borrowings** | **Borrowings** | **Collateral** | **Borrowings** |
| |<br>**Non-/Mark-to-Market** | **Maximum Facility Size**<sup>(A)</sup> | **Outstanding Principal** | **Available**<sup>(B)</sup> | **Outstanding Principal** | **Outstanding Principal** |
| Master Repurchase Agreements | Mark-to-Credit | $1900000 | $1090710 | $25981 | $1704665 | $1038066 |
| Collateralized Loan Obligations | Non-Mark-to-Market | 1324479 | 1324479 |  | 1681729 | 1766231 |
| Term Lending Agreements | Non-Mark-to-Market | 1182657 | 730633 | 2932 | 958932 | 789647 |
| Term Loan Facility | Non-Mark-to-Market | 1000000 | 527166 |  | 683316 | 553966 |
| Warehouse Facility | Non-Mark-to-Market | 500000 |  |  |  |  |
| Asset Specific Financing | Non-Mark-to-Market | 480625 | 358268 |  | 445981 | 343216 |
| Revolver | Non-Mark-to-Market | 700000 |  | 700000 | n.a. | 80000 |
| Secured Term Loan | Non-Mark-to-Market | 648375 | 648375 |  | n.a. | 339500 |
| Total leverage |  | $7736136 | $4679631 | $728913 |  | $4910626 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;Maximum facility size represents the largest amount of borrowings available under a given facility once sufficient collateral assets have been approved by the lender and pledged by us.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Available borrowings represents the undrawn amount we could draw under the terms of each credit facility, based on collateral already approved and pledged.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

*Master Repurchase Agreements*

We utilize master repurchase facilities to finance the origination of senior loans. After a mortgage asset is identified by us, the lender agrees to advance a certain percentage of the principal of the mortgage to us in exchange for a secured interest in the mortgage. We have not received any margin calls on any of our master repurchase facilities to date.

Repurchase agreements effectively allow us to borrow against loans and participations that we own in an amount generally equal to (i) the market value of such loans and/or participations multiplied by (ii) the applicable advance rate. Under these agreements, we sell our loans and participations to a counterparty and agree to repurchase the same loans and participations from the counterparty at a price equal to the original sales price plus an interest factor. The transaction is treated as a secured loan from the financial institution for GAAP purposes. During the term of a repurchase agreement, we receive the principal and interest on the related loans and participations and pay interest to the lender under the master repurchase agreement. At any point in time, the amounts and the cost of our repurchase borrowings will be based upon the assets being financed—higher risk assets will result in lower advance rates (i.e., levels of leverage) at higher borrowing costs and vice versa. In addition, these facilities include various financial covenants and limited recourse guarantees, including those described below.

Each of our existing master repurchase facilities includes "credit mark-to-market" features. "Credit mark-to-market" provisions in repurchase facilities are designed to keep the lenders' credit exposure generally constant as a percentage of the underlying collateral value of the assets pledged as security to them. If the credit underlying collateral value decreases, the gross amount of leverage available to us will be reduced as our assets are marked-to-market, which would reduce our liquidity. The lender under the applicable repurchase facility sets the valuation and any revaluation of the collateral assets in its sole, good faith discretion. As a contractual matter, the lender has the right to reset the value of the assets at any time based on then-current market conditions, but the market convention is to reassess valuations on a monthly, quarterly and annual basis using the financial information delivered pursuant to the facility documentation regarding the real property, borrower and guarantor under such underlying loans. Generally, if the lender determines (subject to certain conditions) that the market value of the collateral in a repurchase transaction has decreased by more than a defined minimum amount, the lender may require us to provide additional collateral or lead to margin calls that may require us to repay all or a portion of the funds advanced. We closely monitor our liquidity and intend to maintain sufficient liquidity on our balance sheet in order to meet any margin calls in the event of any significant decreases in asset values. As of September 30, 2025, the weighted average haircut under our repurchase agreements was 36.0% (or 34.5%, if we had borrowed the maximum amount approved by its repurchase agreement counterparties as of such dates). In addition, our existing master repurchase facilities are not entirely term-matched financings and may mature before our CRE debt investments that represent underlying collateral to those financings. As we negotiate renewals and extensions of these liabilities, we may experience lower advance rates and higher pricing under the renewed or extended agreements.

*Term Lending Agreements*

Our term lending agreements provide us with asset-based financing on a non-mark-to-market basis, are match-term to the underlying loans and are partial recourse.

*Term Loan Facility*

Our term loan facility provides us with asset-based financing on a non-mark-to-market basis, is match-term up to five years, with an additional two-year extension available, and is non-recourse.

*Warehouse Facility* 

Our warehouse facility provides us with asset-based financing on a non-mark-to-market basis, has a current facility maturity of March 2026, and is partial recourse.

*Asset Specific Financing*

Our asset specific financing facilities provide us with asset-based financing on a non-mark-to-market basis, are match-term to the underlying loans and are non-recourse.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

*Revolving Credit Agreement*

In March 2025, we upsized our corporate revolving credit agreement ("Revolver"), administered by Morgan Stanley Senior Funding, Inc., to $660.0 million and extended the maturity date to March 2030. In September 2025, we further upsized our Revolver to $700.0 million. We may use our Revolver as a source of financing, which is designed to provide short-term liquidity to originate or de-lever loans, pay operating expenses and borrow amounts for general corporate purposes. Our Revolver is secured by corporate level guarantees and includes net equity interests in the investment portfolio.

*Collateralized Loan Obligations*

In 2021, we financed a pool of loan participations from our existing loan portfolio through a managed collateralized loan obligation ("CLO" or "KREF 2021-FL2") and, in 2022, we financed a pool of loan participations from our existing multifamily loan portfolio through a managed CLO ("KREF 2022-FL3"). The CLOs provide us with match-term financing on a non-mark-to-market and non-recourse basis.

*Secured Term Loan*

In March 2025, we refinanced our existing term loan of $339.5 million with a new $550.0 million secured term loan due March 2032. In September 2025, we upsized our secured term loan to $650.0 million and reduced the spread by 0.75% to S+2.5%. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. The secured term loan contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates, and is secured by corporate level guarantees and does not include asset-based collateral.

Refer to Notes 2 and 7 to our condensed consolidated financial statements for additional discussion of our secured term loan.

***Covenants*** — Each of our repurchase facilities, term lending agreements, warehouse facility and our Revolver contain customary terms and conditions, including, but not limited to, negative covenants relating to restrictions on our operations with respect to our status as a REIT, and financial covenants, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** a trailing four quarter interest income to interest expense ratio covenant (1.3 to 1.0 beginning September 30, 2024 through June 30, 2026, then 1.4 to 1.0 thereafter);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a consolidated tangible net worth covenant (75.0% of the aggregate net cash proceeds of any equity issuances made and any capital contributions received by us and KKR Real Estate Finance Holdings L.P. (our "Operating Partnership") or up to approximately $1.3 billion, depending on the agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a total indebtedness covenant (83.3% of our Total Assets, as defined in the applicable financing agreements); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a cash liquidity covenant (the greater of (i) $10.0 million or (ii) 5.0% of KREF's recourse indebtedness; from September 30, 2024 and through June 30, 2026 the Revolver has a minimum cash liquidity covenant of $75.0 million)

With respect to our secured term loan, we are required to comply with customary loan covenants and event of default provisions that include, but are not limited to, negative covenants relating to restrictions on operations with respect to our status as a REIT, and financial covenants. Such financial covenants include a minimum consolidated tangible net worth of $650.0 million and a maximum total debt to total assets ratio of 83.3%.

As of September 30, 2025, we were in compliance with the covenants of our financing facilities.

*Non-Consolidated Senior Interests*

In certain instances, we finance our loans through the non-recourse sale of a senior loan interest that is not included in our condensed consolidated financial statements. These non-consolidated senior interests provide structural leverage on a non-mark-to-market, match-term basis for our net investments, which are typically reflected in the form of mezzanine loans or other subordinate interests on our condensed consolidated balance sheets and in our condensed consolidated statement of income. We had no outstanding financing through non-consolidated senior interests as of September 30, 2025.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

***Guarantees*** — In connection with our financing arrangements, including master repurchase agreements, term lending agreements, and asset specific financing, our Operating Partnership has entered into a limited guarantee in favor of each lender, under which our Operating Partnership guarantees the obligations of the borrower under the respective financing agreement (i) in the case of certain defaults, up to a maximum liability of 25.0% of the then-outstanding repurchase price of the eligible loans, participations or securities, as applicable, or (ii) up to a maximum liability of 100.0% in the case of certain "bad boy" defaults. The borrower in each case is a special purpose subsidiary of ours. In addition, some guarantees include certain full recourse insolvency-related trigger events.

With respect to our Revolver, amounts borrowed are full recourse to certain guarantor wholly-owned subsidiaries of ours.

***Variable Interest Entity Liabilities***

In connection with our investments in CMBS B-Pieces, we consolidate these CMBS trusts that hold the pools of senior loans underlying the CMBS because we determined such trusts are VIEs and we are the primary beneficiary of such VIEs. As a result of the consolidation, our financial statements include the liabilities of the consolidated CMBS trusts. However, these liabilities are not recourse to us, and our risk of loss is limited to the value of our investment in the related CMBS B-Pieces. See Note 8 to the condensed consolidated financial statements for additional information on these liabilities as of September 30, 2025.

***Real Estate Assets, Held For Investment***

*Portland, OR Retail* ***/*** *Redevelopment* ***—*** In December 2021, we took title a Portland retail property and recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. We contributed a portion of the REO asset to a joint venture (the "REO JV") with a third party local developer ("JV Partner"), whereby we had a 90% interest and the JV Partner had a 10% interest. The JV Partner's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Condensed Consolidated Balance Sheets. In June 2025, we sold a portion of the property for $6.0 million and recognized a realized gain of $0.7 million after closing costs. As of September 30, 2025, we have a priority of distributions up to $79.7 million before the JV Partner can participate in the economics of the REO JV.

*Mountain View, CA Office* ***—*** In June 2024, we and the KKR affiliate took title to a Mountain View office property through a deed-in-lieu of foreclosure ("DIL") and we accounted for the property on a consolidated basis. Ours and the KKR affiliate's interest in the property were 68.9% and 31.1%, respectively. We recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. The KKR affiliate's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Condensed Consolidated Balance Sheets.

*Raleigh, NC Multifamily* — In August 2025, we took title to a Raleigh multifamily property and accounted for the property through an assignment-in-lieu of foreclosure ("AIL"). We recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.

***Real Estate Assets, Held For Sale***

As of September 30, 2025, the Philadelphia, PA Office and West Hollywood, CA Condo properties met the criteria to be classified as held for sale under ASC 360. As such, depreciation and amortization on the properties and related lease intangibles were suspended.

*Philadelphia, PA Office* ***—*** In December 2023, we took title to a Philadelphia office portfolio through a DIL and recorded the portfolio and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.

In June 2024, we sold a portion of the portfolio and provided financing to the buyer through a senior loan. The senior loan had an outstanding principal balance of $24.4 million ($77.7 million total commitment) as of September 30, 2025 and earned a coupon rate of S+4.0% with a maximum maturity of July 2029, assuming all extension options are exercised. The senior loan is presented within "Commercial real estate loans, held-for-investment, net" on the Condensed Consolidated Balance Sheets.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

In May 2025, we sold a portion of the portfolio for $25.3 million and recognized a realized gain of $0.5 million after closing costs. As of September 30, 2025, there was one office property remaining.

*West Hollywood, CA Condo —* In April 2025, we took title to a West Hollywood multifamily property through an AIL. We recorded the property and its net assets on the Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.

***Real Estate Asset, Equity Method Investment***

*Seattle, WA Life Science* ***—*** In June 2024, we and the KKR affiliates took title to a Seattle life science property through a DIL under a Tenant-in-Common ("TIC") agreement. Under the TIC agreement, we and the KKR affiliate held an economic interest of 74.6% and 25.4%, respectively, and shared decision-making. Under ASC 970-810, we accounted for the TIC agreement as an undivided interest in the property and recorded an equity method investment based on our share of the estimated fair value of the property's net assets.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**Results of Operations** 

***Three Months Ended September 30, 2025 Compared to Three Months Ended June 30, 2025***

The following table summarizes the changes in our results of operations for three months ended September 30, 2025 and June 30, 2025 (amounts in thousands, except per share data):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **September 30, 2025** | **June 30, 2025** | **Dollars** | **Percentage** |
| **Net Interest Income** | | | | |
| &nbsp;&nbsp;&nbsp;Interest income | $108019 | $112272 | $(4253) | (4)% |
| &nbsp;&nbsp;&nbsp;Interest expense | 82685 | 82101 | 584 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net interest income | 25334 | 30171 | (4837) | (16) |
| **Other Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue from real estate owned operations | 4742 | 4025 | 717 | 18 |
| &nbsp;&nbsp;&nbsp;Income (loss) from equity method investments | (105) | (619) | 514 | 83 |
| &nbsp;&nbsp;&nbsp;Change in net assets of consolidated variable interest entity, CMBS trust | 347 | 41 | 306 | 746 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sale of investments |  | 1192 | (1192) | (100) |
| &nbsp;&nbsp;&nbsp;Other miscellaneous income | 1096 | 1061 | 35 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income | 6080 | 5700 | 380 | 7 |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Provision for credit losses, net | 975 | 49848 | (48873) | (98) |
| &nbsp;&nbsp;&nbsp;Expenses from real estate owned operations | 7302 | 6178 | 1124 | 18 |
| &nbsp;&nbsp;&nbsp;Management fee to affiliate | 5619 | 5737 | (118) | (2) |
| &nbsp;&nbsp;&nbsp;General and administrative | 4746 | 4681 | 65 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 18642 | 66444 | (47802) | (72) |
| **Income (Loss) Before Income Taxes** | **12772** | **(30573)** | **43345** | **142** |
| &nbsp;&nbsp;&nbsp;Income tax expense |  |  |  |  |
| **Net Income (Loss)** | **12772** | **(30573)** | **43345** | **142** |
| &nbsp;&nbsp;Net income (loss) attributable to noncontrolling interests | (1006) | (847) | (159) | (19) |
| **Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries** | **13778** | **(29726)** | **43504** | **146** |
| &nbsp;&nbsp;&nbsp;Preferred stock dividends | 5326 | 5326 |  |  |
| &nbsp;&nbsp;&nbsp;Participating securities' share in earnings | 373 | 373 |  |  |
| **Net Income (Loss) Attributable to Common Stockholders** | $**8079** | $**(35425)** | $**43504** | **123** |
| **Net Income (Loss) Per Share of Common Stock** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | $0.12 | $(0.53) | $0.65 | 123 |
| **Weighted Average Number of Shares of Common Stock Outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | 65876727 | 67191309 | (1314582) | (2) |
| **Dividends Declared per Share of Common Stock** | $0.25 | $0.25 | $— |  |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

*Net Interest Income* 

Net interest income decreased by $4.8 million during the three months ended September 30, 2025, as compared to the preceding three-month period. This decrease was due primarily to loans on nonaccrual status and a decline in overall portfolio size. We recorded $4.3 million of deferred loan fees and origination discounts accreted into interest income during the three months ended September 30, 2025, as compared to $4.4 million during the preceding period. In addition, we recorded $4.7 million of deferred financing costs amortization into interest expense during the three months ended September 30, 2025, as compared to $3.0 million for the preceding period.

*Other Income*

Total other income increased by $0.4 million during the three months ended September 30, 2025, as compared to the preceding period.

*Operating Expenses*

Total operating expenses decreased by $47.8 million during the three months ended September 30, 2025, as compared to the preceding period. This decrease was primarily due to a $48.9 million change in the provision for credit losses. The provision for credit losses during the three months ended June 30, 2025 was due primarily to additional reserves for risk-rated 5 loans in the office and life science sectors.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

 ***Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024***

The following table summarizes the changes in our results of operations for the nine months ended September 30, 2025 and 2024 (amounts in thousands, except per share data):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Increase (Decrease)** | **Increase (Decrease)** |
| | **2025** | **2024** | **Dollars** | **Percentage** |
| **Net Interest Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $334258 | $441019 | $(106761) | (24)% |
| &nbsp;&nbsp;&nbsp;Interest expense | 247412 | 324437 | (77025) | (24) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net interest income | 86846 | 116582 | (29736) | (26) |
| **Other Income** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Revenue from real estate owned operations | 11656 | 19302 | (7646) | (40) |
| &nbsp;&nbsp;&nbsp;Income (loss) from equity method investments | (925) | 1619 | (2544) | (157) |
| &nbsp;&nbsp;&nbsp;Change in net assets of consolidated variable interest entity, CMBS trust | 388 |  | 388 | 100 |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sale of investments | 1192 | (615) | 1807 | 294 |
| &nbsp;&nbsp;&nbsp;Other miscellaneous income | 3344 | 4544 | (1200) | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income | 15655 | 24850 | (9195) | (37) |
| **Operating Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Provision for credit losses, net | 75686 | 76011 | (325) |  |
| &nbsp;&nbsp;&nbsp;Expenses from real estate owned operations | 18954 | 17378 | 1576 | 9 |
| &nbsp;&nbsp;&nbsp;Management fee to affiliate | 17153 | 18614 | (1461) | (8) |
| &nbsp;&nbsp;&nbsp;General and administrative | 14258 | 14455 | (197) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 126051 | 126458 | (407) |  |
| **Income (Loss) Before Income Taxes** | **(23550)** | **14974** | **(38524)** | **(257)** |
| &nbsp;&nbsp;&nbsp;Income tax expense |  | 203 | (203) | (100) |
| **Net Income (Loss)** | **(23550)** | **14771** | **(38321)** | **(259)** |
| &nbsp;&nbsp;Net income (loss) attributable to noncontrolling interests | (2741) | (565) | (2176) | (385) |
| **Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries** | **(20809)** | **15336** | **(36145)** | **(236)** |
| &nbsp;&nbsp;&nbsp;Preferred stock dividends | 15978 | 15978 |  |  |
| &nbsp;&nbsp;&nbsp;Participating securities' share in earnings | 1109 | 865 | 244 | 28 |
| **Net Income (Loss) Attributable to Common Stockholders** | $**(37896)** | $**(1507)** | $**(36389)** | **(2415)** |
| **Net Income (Loss) Per Share of Common Stock** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | $(0.56) | $(0.02) | $(0.54) | (2700) |
| **Weighted Average Number of Shares of Common Stock Outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted | 67267388 | 69414990 | (2147602) | (3) |
| **Dividends Declared per Share of Common Stock** | $0.75 | $0.75 | $— |  |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

*Net Interest Income*

Net interest income decreased by $29.7 million during the nine months ended September 30, 2025, as compared to the corresponding period in the prior year. This decrease was due primarily to a reduced loan portfolio size as a result of repayments or other resolutions and lower index rates. We recorded $12.1 million of deferred loan fees and origination discounts accreted into interest income during the nine months ended September 30, 2025, as compared to $13.5 million during the prior year period. In addition, we recorded $10.8 million of deferred financing costs amortization into interest expense during the nine months ended September 30, 2025, as compared to $13.1 million during the prior year period.

*Other Income*

Total other income decreased by $9.2 million during the nine months ended September 30, 2025, as compared to the prior year period. This decrease was due primarily to a $7.6 million decrease in revenue from REO operations and a $3.0 million operating loss related to our real estate asset equity method investment, which was partially offset by a $1.2 million gain on sale of REO investments during the current period.

*Operating Expenses*

Total operating expenses increased by $0.4 million during the nine months ended September 30, 2025, as compared to the prior year period.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**Liquidity and Capital Resources** 

***Overview***

We have capitalized our business to date primarily through the issuance and sale of our common stock and preferred stock, borrowings from three master repurchase agreements, and borrowings from our Non-Mark-to-Market Financing Sources, which were comprised of collateralized loan obligations, term lending agreements, term loan facility, secured term loan, asset specific financing, warehouse facility, and corporate Revolver. Our Non-Mark-to-Market Financing Sources, which accounted for 77% of our total financing as of September 30, 2025, are not subject to credit or capital markets mark-to-market provisions. The remaining 23% of our total financing, which are comprised of three master repurchase agreements, are only subject to credit marks.

Our primary sources of liquidity include $204.1 million of cash on our Condensed Consolidated Balance Sheets, $700.0 million of available capacity on our corporate Revolver, $28.9 million of available borrowings under our financing arrangements based on existing collateral, and cash flows from operations. In addition, we had $300.6 million of total unencumbered assets, including $215.5 million of real estate owned assets, $44.6 million of CMBS investments and $40.5 million of unencumbered senior loans, that can be financed, as of September 30, 2025. Our corporate Revolver and secured term loan are secured by corporate level guarantees and include net equity interests in the investment portfolio. We may seek additional sources of liquidity from syndicated financing, other borrowings (including borrowings not related to a specific investment) and future offerings of equity and debt securities.

Our primary liquidity needs include our ongoing commitments to repay the principal and interest on our borrowings and to pay other financing costs, financing our assets, meeting future funding obligations, making distributions to our stockholders, funding our operations that includes making payments to our Manager in accordance with the management agreement, and other general business needs. We believe that our cash position and sources of liquidity will be sufficient to meet anticipated requirements for financing, operating and other expenditures in both the short- and long-term, based on current conditions.

As described in Note 10 to our condensed consolidated financial statements, we have off-balance sheet arrangements related to VIEs that we account for by either consolidating or by using the equity method of accounting when we hold an economic interest or have a capital commitment. Our maximum risk of loss associated with our interests in these VIEs is limited to the carrying value of our net investment in such entities and any unfunded capital commitments. As of September 30, 2025, we held $9.1 million of net investment in a consolidated CMBS trust and $35.5 million of interests in a CMBS equity method investment.

To facilitate future offerings of equity, debt and other securities, we have in place an effective shelf registration statement (the "Shelf") with the SEC. The amount of securities that may be issued pursuant to this Shelf is not to exceed $750 million. The securities covered by this Shelf include: (i) common stock, (ii) preferred stock, (iii) depository shares, (iv) debt securities, (v) warrants, (vi) subscription rights, (vii) purchase contracts, and (viii) units. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in detail in a prospectus supplement, or other offering material, at the time of any offering.

We have also entered into an equity distribution agreement with certain sales agents, pursuant to which we may sell, from time to time, up to an aggregate sales price of $100.0 million of our common stock, pursuant to a continuous offering program (the "ATM"), under the Shelf. Sales of our common stock made pursuant to the ATM may be made in negotiated transactions or transactions that are deemed to be "at the market" offerings as defined in Rule 415 under the Securities Act. During the nine months ended September 30, 2025, we did not sell any shares of common stock under the ATM. As of September 30, 2025, $93.2 million remained available for issuance under the ATM.

See Notes 5, 6, 7 and 11 to our condensed consolidated financial statements for additional details regarding our secured financing agreements, collateralized loan obligations, secured term loan and stock activity.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

***Debt-to-Equity Ratio and Total Leverage Ratio***

The following table presents our debt-to-equity ratio and total leverage ratio:

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Debt-to-equity ratio<sup>(A)</sup> | 1.8x | 1.6x |
| Total leverage ratio<sup>(B)</sup> | 3.6x | 3.6x |

---

(A) &nbsp;&nbsp;&nbsp;&nbsp;Represents (i) total outstanding debt agreements (excluding non-recourse facilities) and secured term loan, less cash to (ii) KREF's stockholders' equity, in each case, at period end.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Represents (i) total outstanding debt agreements, secured term loan, and collateralized loan obligations, less cash to (ii) KREF's stockholders' equity, in each case, at period end.

***Sources of Liquidity***

Our primary sources of liquidity include cash and cash equivalents and available borrowings under our secured financing agreements, inclusive of our Revolver. Amounts available under these sources as of the date presented are summarized in the following table (amounts in thousands):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Cash and cash equivalents | $204094 | $104933 |
| Available borrowings under revolving credit agreement | 700000 | 530000 |
| Available borrowings under financing arrangements | 28913 | 49879 |
| Total | $933007 | $684812 |

---

We also had $300.6 million of total unencumbered assets, including $215.5 million of real estate owned assets, $44.6 million of CMBS investments and $40.5 million of unencumbered senior loans as of September 30, 2025. In addition to our primary sources of liquidity, we have the ability to access further liquidity through our ATM program and public offerings of debt and equity securities. Our existing loan portfolio also provides us with liquidity as loans are repaid or sold, in whole or in part, and the proceeds from repayment become available for us to invest.

***Cash Flows***

The following table sets forth changes in cash and cash equivalents for the nine months ended September 30, 2025 and 2024 (amounts in thousands):

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| Cash Flows From Operating Activities | $55548 | $114241 |
| Cash Flows From Investing Activities | 399764 | 708640 |
| Cash Flows From Financing Activities | (354723) | (860051) |
| Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | $100589 | $(37170) |

---

*Cash Flows from Operating Activities* 

Our cash flows from operating activities were primarily driven by our net interest income, which is a result of the income generated by our investments less financing costs. The following table sets forth interest received from, and paid for, our investments (amounts in thousands):

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| **Interest Received:** |  |  |
| &nbsp;&nbsp;Senior Loans | 323742 | 435597 |
| &nbsp;&nbsp;Net assets of consolidated variable interest entity, CMBS trust | 292 |  |
| Total | 324034 | 435597 |
| **Interest paid:** |  |  |
| &nbsp;&nbsp;Senior Loans | 243838 | 308807 |
| Net interest collections | $80196 | $126790 |

---

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

Our net interest collections were partially offset by cash used to pay management fees, as follows (amounts in thousands):

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| Management Fees to affiliate | $17452 | $19236 |

---

*Cash Flows from Investing Activities*

Our cash flows from investing activities primarily consisted of cash inflows from loan repayments and net proceeds from the sale of real estate owned, partially offset by cash outflows for loan originations and funding commitments under existing loan investments. During the nine months ended September 30, 2025, we received $1,112.5 million from the repayments of CRE loans, received net proceeds of $24.4 million from the sale of REO investments and funded $706.4 million of CRE loans.

During the nine months ended September 30, 2024, we funded $239.9 million of CRE loans and we received $959.2 million from the repayments of CRE loans.

*Cash Flows from Financing Activities*

During the nine months ended September 30, 2025, our cash flows from financing activities were primarily driven by repayments of $1,386.9 million on our secured financing agreements and repayments of $441.8 million on our collateralized loan obligations, partially offset by borrowing proceeds of $1,288.8 million under our secured financing agreements and proceeds of $310.8 million issued under our secured term loan.

During the nine months ended September 30, 2024, our cash flows from financing activities were primarily driven by (i) repayments of $1,238.0 million under our secured financing agreements and (ii) payment of $80.4 million in dividends, partially offset by borrowing proceeds of $464.4 million under our secured financing agreements.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**Contractual Obligations and Commitments** 

The following table presents our contractual obligations and commitments (including interest payments) as of September 30, 2025 (amounts in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Total** | **Less than 1 year** | **1 to 3 years** | **3 to 5 years** | **Thereafter** |
| Master Repurchase Facilities<sup>(A)</sup> | $1090710 | $91417 | $896072 | $103221 | $— |
| Term Lending Agreements<sup>(A)</sup> | 730633 | 15654 | 376403 | 289936 | 48640 |
| Warehouse Facility |  |  |  |  |  |
| Term Loan Facility | 527166 | 78556 | 388610 | 60000 |  |
| Asset Specific Facility | 358267 | 90000 | 268267 |  |  |
| Revolver<sup>(B)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;Total secured financing agreements | 2706776 | 275627 | 1929352 | 453157 | 48640 |
| Collateralized Loan Obligations | 1324479 |  |  |  | 1324479 |
| Secured Term Loan | 648375 | 6500 | 13000 | 13000 | 615875 |
| Interest payable<sup>(C)</sup> | 985862 | 276206 | 376329 | 271537 | 61790 |
| Future funding obligations<sup>(D)</sup> | 426348 | 312181 | 106429 | 7738 |  |
| CMBS investments | 4324 | 4324 |  |  |  |
| Total | $6096164 | $874838 | $2425110 | $745432 | $2050784 |

---

(A)&nbsp;&nbsp;&nbsp;&nbsp;The allocation of repurchase facilities and term lending agreements is based on the earlier of (i) the maximum maturity of the underlying loans pledged as collateral or (ii) the maximum maturity of the respective financing agreements. Amounts borrowed are subject to a maximum 25.0% recourse limit.

(B)&nbsp;&nbsp;&nbsp;&nbsp;Any amounts borrowed are full recourse to certain subsidiaries of KREF. Amounts are estimated based on the amount outstanding under the Revolver and the interest rate in effect as of September 30, 2025. This is only an estimate as actual amounts borrowed, the timing of repayments and interest rates may vary over time. The Revolver matures in March 2030.

(C)&nbsp;&nbsp;&nbsp;&nbsp;The amounts are estimated by assuming the amounts outstanding under these facilities and the interest rates in effect as of September 30, 2025 will remain constant into the future. The actual amounts borrowed and rates may vary over time.

(D)&nbsp;&nbsp;&nbsp;&nbsp;We have future funding obligations related to our investments in senior loans. These future funding obligations primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Generally, funding obligations are subject to certain conditions that must be met, such as customary construction draw certifications, minimum debt service coverage ratios, minimal debt yield tests, or executions of new leases before advances are made to the borrower. As such, the allocation of our future funding obligations is based on the earlier of the expected funding or commitment expiration date.

We are required to pay our Manager a base management fee, an incentive fee and reimbursements for certain expenses pursuant to our management agreement. The table above does not include the amounts payable to our Manager under our management agreement as they are not fixed and determinable. See Note 15 to our condensed consolidated financial statements included in this Form 10-Q for additional terms and details of the fees payable under our management agreement.

As a REIT, we generally must distribute at least 90% of our REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, to stockholders in the form of dividends to comply with the REIT provisions of the Code. Our taxable income does not necessarily equal our net income as calculated in accordance with GAAP, or our Distributable Earnings as described above under "Key Financial Measures and Indicators — Distributable Earnings".

**Subsequent Events**

Our subsequent events are detailed in Note 18 to our condensed consolidated financial statements.

**Critical Accounting Policies and Use of Estimates**

Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires our Manager to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. There have been no material changes to our Critical Accounting Policies and Use of Estimates described in our Annual Report on Form 10-K.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

***Allowance for Credit Losses***

We originate and purchase CRE debt and related instruments generally to be held as long-term investments at amortized cost. We recognize and measure the allowance for credit losses under the Current Expected Credit Loss ("CECL") model, which requires us to estimate expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance sheet credit exposures such as unfunded loan commitments. The allowance for credit losses is deducted from the respective loans' amortized cost basis on our Condensed Consolidated Balance Sheets. The allowance for credit losses attributed to unfunded loan commitments is included in "Other liabilities" on the Condensed Consolidated Balance Sheets.

We have estimated CECL reserves using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as a loss-rate method for estimating CECL reserves by the Financial Accounting Standards Board ("FASB"). In estimating a CECL reserve using the WARM method, we reference historical loan loss data across a comparable data set and apply such loss rate to each loan over its expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. In certain instances, we might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral and availability of relevant historical market loan loss data.

To arrive at a CECL reserve using the WARM method, we considered various factors including (i) historical loss experience in the commercial real estate lending market, (ii) timing of expected repayments and expected loan future funding, (iii) and our current and future view of the macroeconomic environment for a reasonable and supportable forecast period. We derive a historical loss rate predominately based on a CMBS database with historical losses since 1998 provided by a third party. We focus on the most relevant subset of CMBS data that is determined to be the most comparable to our own portfolio. The historical loss rate is further adjusted to consider expected macroeconomic conditions, such as commercial real estate price indices, unemployment rates and market liquidity, over reasonable and supportable forecast periods. There is significant uncertainty related to future macroeconomic conditions. Therefore, we also consider other loan specific credit quality factors such as the risk rating of the loan, a near-term maturity, nature of construction loans, and economic conditions specific to the property type of the underlying collateral.

For collateral dependent loans that we determine foreclosure of the collateral is probable, we measure the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral dependent loans where we determine foreclosure is not probable, we apply a practical expedient to estimate expected losses using the difference between the collateral's fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. A loan is determined to be collateral dependent if (i) a borrower or sponsor is experiencing financial difficulty, and (ii) the loan is expected to be substantially repaid through the sale of the underlying collateral; such determination requires the use of significant judgment and can be based on several factors subject to uncertainty. Considerations used in determination of financial difficulty may include, but are not limited to, whether the borrower's operating cash flow is sufficient to cover the current and future debt service requirements, the borrower's ability to refinance the loan, market liquidity and other circumstances that can affect the borrower's ability to satisfy its contractual obligations under the loan agreement.

Refer to Note 2 to our condensed consolidated financial statements for the description of our significant accounting policies.

***Recent Accounting Pronouncements***

In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)*, which requires a public business entity to provide disaggregated disclosures, in the notes to the financial statements, of certain categories of expenses that are included in expense line items on the face of the income statement. The guidance is effective for our 2027 annual reporting. The guidance is applied prospectively and may be applied retrospectively. We are evaluating the impact of ASU 2024-03.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

We seek to manage our risks related to the credit quality of our assets, interest rates, liquidity, prepayment rates and market value, while at the same time seeking to provide an opportunity to stockholders to realize attractive risk-adjusted returns. While risks are inherent in any business enterprise, we seek to quantify and justify risks in light of available returns and to maintain capital levels consistent with the risks we undertake.

**Credit Risk**

Our investments are subject to credit risk, including the risk of default. The performance and value of our investments depend upon the sponsors' ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay interest and principal due to us. To monitor this risk, we review our investment portfolio and are in regular contact with the sponsors, monitoring performance of the collateral and enforcing our rights as necessary.

Inflation, rising interest rates and increasing costs may dampen consumer spending and slow corporate profit growth, which may negatively impact the value of underlying real estate collateral relating to our investments and impair our borrowers' ability to execute on their business plans and potentially their ability to perform under the terms of their loan obligations. These risks may be exacerbated by recent changes in global tariff policies and escalating global trade tensions, which have introduced uncertainty in supply chains and material costs and have contributed to significant market volatility.

**Credit Yield Risk**

Credit yields measure the return demanded on financial instruments by the lending market based on their risk of default. Increasing supply of credit-sensitive financial instruments and reduced demand will generally cause the market to require a higher yield on such financial instruments, resulting in a lower price for the financial instruments we hold.

**Interest Rate Risk**

The composition of our investments is such that rising interest rates will increase our net income, while declining interest rates will generally decrease our net income. Rate floors relating to our loan portfolio may offset some of the impact from declining rates. There can be no assurance that we will continue to utilize rate floors. There can be no assurance of how our net income may be affected in future quarters, which will depend on, among other things, the interest rate environment and our then-current portfolio.

In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates, there is also the risk of non-performance on floating-rate assets. In the case of a significant increase in interest rates, the cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may contribute to non-performance or, in severe cases, default.

The Federal Reserve lowered interest rates three times during 2024 and once during September 2025, with future rate cuts expected. Interest rates remain elevated and the timing, direction and extent of any future interest rate changes remain uncertain. In a period of declining interest rates, our interest income on floating-rate investments would generally decrease, while any decrease in the interest we are charged on our floating-rate debt may be subject to floors and may not compensate for such decrease in interest income. However, rate floors relating to our loan portfolio may offset some of the impact from declining rates. In addition, interest we are charged on fixed-rate debt would not change.

As of September 30, 2025, our accruing loan portfolio and related portfolio financing earned or paid a floating rate of interest indexed to Term SOFR. Accordingly, our interest income and expense will generally change directionally with index rates; however, in certain circumstances, rate floors relating to our loan portfolio may partially offset the impact from changing rates. As of September 30, 2025, a 50 basis point and a 100 basis point decrease in the index rates would decrease our expected cash flows by approximately $0.7 million and $0.8 million, or ($0.01) and ($0.01) per common share, respectively, for the following three-month period. Conversely, a 50 basis point and a 100 basis point increase in the index rates would increase our expected cash flows by approximately $0.7 million and $1.3 million, or $0.01 and $0.02 per common share, respectively, for the same period.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**Prepayment Risk**

Prepayment risk is the risk that principal will be repaid at an earlier date than anticipated, potentially causing the return on certain investments to be less than expected. As we receive prepayments of principal on our assets, any premiums paid on such assets are amortized against interest income. In general, an increase in prepayment rates accelerates the amortization of purchase premiums, thereby reducing the interest income earned on the assets. Conversely, discounts on such assets are accreted into interest income. In general, an increase in prepayment rates accelerates the accretion of purchase discounts, thereby increasing the interest income earned on the assets. Additionally, we may not be able to reinvest the principal repaid at the same or higher yield of the original investment.

Higher interest rates imposed by the Federal Reserve may lead to a decrease in prepayment speeds and an increase in the number of our borrowers who exercise extension options, which could extend beyond the term of certain secured financing agreements we use to finance our loan investments. This could have a negative impact on our results of operations, and in some situations, we may be forced to sell assets to maintain adequate liquidity, which could cause us to incur losses.

**Financing Risk**

We finance our target assets using our repurchase facilities, term lending agreements, term loan facility, warehouse facility, asset based financing, revolving credit agreement, collateralized loan obligations, secured term loan and through syndicating senior participations in our originated senior loans. Over time, as market conditions change, we may use other forms of leverage in addition to these methods of financing. Weakness or volatility in the financial markets, the CRE and mortgage markets or the economy generally could adversely affect one or more of our lenders or potential lenders and could cause one or more of our lenders or potential lenders to be unwilling or unable to provide us with financing, or to decrease the amount of our available financing through a market to market, or to increase the costs of that financing.

**Real Estate Risk**

The market values of commercial real estate assets are subject to volatility and may be adversely affected by a number of factors, including, but not limited to, national, regional and local economic conditions (which may be adversely affected by industry slowdowns and other factors); local real estate conditions; changes or continued weakness in specific industry segments; construction quality, age and design; demographic factors; and retroactive changes to building or similar codes. In addition, decreases in property values reduce the value of the collateral and the potential proceeds available to a borrower to repay the underlying loans, which could also cause us to suffer losses.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

We maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that the information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurances of achieving the desired controls.

As of September 30, 2025, we carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of September 30, 2025, our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

**Changes in Internal Control over Financial Reporting**

No change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during the quarter ended September 30, 2025 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**PART II — OTHER INFORMATION**

**ITEM 1. LEGAL PROCEEDINGS**

The section entitled "*Litigation*" appearing in Note 14 of our condensed consolidated financial statements included in this Form 10-Q is incorporated herein by reference.

**ITEM 1A. RISK FACTORS**

For information regarding the risk factors that could affect the Company's business, results of operations, financial condition and liquidity, see the information under Part I, Item 1A. "Risk Factors" in the Form 10-K, which is accessible on the SEC's website at <u>www.sec.gov</u>. There have been no material changes to the risk factors previously disclosed in the Form 10-K.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

***Issuer Purchases of Equity Securities***

Under the Company's current share repurchase program, which was originally announced on May 9, 2018, and subsequently extended and/or increased on June 17, 2019, June 15, 2020 and February 3, 2023, we may repurchase up to an aggregate of $100.0 million of our common stock effective as of February 3, 2023, of which up to $50.0 million may be repurchased under a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act, and provide for repurchases of common stock when the market price per share is below book value per share (calculated in accordance with GAAP as of end of the most recent quarterly period for which financial statements are available), and the remaining $50.0 million may be used for repurchases in the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any common stock repurchases will be determined by us in our discretion and will depend on a variety of factors, including legal requirements, price and economic considerations, and market conditions. The program does not require us to repurchase any specific number of shares of common stock. The program does not have an expiration date and may be suspended, modified or discontinued at any time.

The following table sets forth information regarding purchases of shares of our common stock during the three months ended September 30, 2025 (amounts in thousands, except share and per share data):

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Period Beginning** | **Period Ending** | **Total number of shares purchased** | **Average price paid per share** | **Total number of shares purchased as part of publicly announced program** | **Amounts paid for shares purchased as part of publicly announced program** | **Approximate dollar value of shares that may yet be purchased under the program** |
| July 1, 2025 | July 31, 2025 |  | $— | 9904755 | $— | $60196 |
| August 1, 2025 | August 31, 2025 |  |  | 9904755 |  | 60196 |
| September 1, 2025 | September 30, 2025 | 448877 | 9.41 | 10353632 | 4222 | 55974 |
| Total/Average |  | 448877 | $9.41 |  | $4222 |  |

---

As of September 30, 2025, we had $56.0 million of remaining capacity to repurchase shares under the program.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

None.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| | **Exhibit Description** |
| 10.1\* | <u>[Amendment No. 1 to Term Loan Credit Agreement, dated as of September 8, 2025, by and among KREF Holdings X LLC, KKR Real Estate Financing Holdings L.P., the guarantors from time to time party thereto, the lenders from time to time party thereto and Goldman Sachs USA, as administrative agent.](ef20056824_ex10-1.htm)</u> |
| 10.2\* | <u>[Lender Joinder Agreement No. 9, dated as of April 19, 2022, to the Credit Agreement among KREF Holdings X LLC, KKR Real Estate Finance Holdings L.P., Morgan Stanley Senior Funding Inc., as administrative agent, and the new lenders party thereto.](ef20056824_ex10-2.htm)</u> |
| 10.3\* | <u>[Lender Joinder Agreement No. 10, dated as of September 10, 2025, to the Credit Agreement among KREF Holdings X LLC, KKR Real Estate Finance Holdings L.P., Morgan Stanley Senior Funding Inc., as administrative agent, and the new lenders party thereto.](ef20056824_ex10-3.htm)</u> |
| 31.1 | <u>[Certificate of Matthew A. Salem, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a202509-exhibit311.htm)</u> |
| 31.2 | <u>[Certificate of Kendra L. Decious, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](a202509-exhibit312.htm)</u> |
| 32.1 | <u>[Certificate of Matthew A. Salem, Chief Executive Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).](a202509-exhibit321.htm)</u> |
| 32.2 | <u>[Certificate of Kendra L. Decious, Chief Financial Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).](a202509-exhibit322.htm)</u> |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL and contained in Exhibit 101. |

---

\* Certain information contained in this agreement has been omitted because it is not material and is the type that the registrant treats as private or confidential.

------

<u>[**Table of Contents**](#ic4a86cffb702488faf27b8eb9959aae7_10)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | **KKR REAL ESTATE FINANCE TRUST INC.** | **KKR REAL ESTATE FINANCE TRUST INC.** |
| Date: | October 21, 2025 | By: | /s/ Matthew A. Salem |
|  |  |  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Matthew A. Salem |
|  |  |  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer) |
| Date: | October 21, 2025 | By: | /s/ Kendra L. Decious |
|  |  |  | Name:&nbsp;&nbsp;&nbsp;&nbsp;Kendra L. Decious |
|  |  |  | Title:&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer and Treasurer |
|  |  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Financial and Accounting Officer) |

---

## Exhibit 10.1

------

#### Exhibit 10.1<br>Execution Version

#### <br>

#### AMENDMENT NO. 1
AMENDMENT NO. 1, dated as of September 8, 2025 (this "**Amendment**"), to the Term Loan Credit Agreement, dated as of March 5, 2025, among KREF Holdings X LLC (the "**Borrower**"), KKR Real Estate Finance Holdings L.P. ("**Opco**"), the Guarantors party thereto from time to time, the lenders party thereto from time to time and Goldman Sachs Bank USA ("**GS**"), in its capacities as administrative agent for the Lenders and collateral agent for the Secured Parties (in such capacities, the "**Administrative Agent**") (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the "**Existing Credit Agreement**"), among the Borrower, Opco, the Guarantors party hereto, the 2025 Repricing Term Lenders (as defined below), the 2025 Incremental Term Lenders (as defined below) and GS, as the Administrative Agent.

The Existing Credit Agreement, as amended by this Amendment, is referred to in this Amendment as the "**Amended Credit Agreement**". Capitalized terms used but not defined herein have the meaning provided in the Existing Credit Agreement.

<u>PRELIMINARY STATEMENTS</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, pursuant to the Existing Credit Agreement, the Existing Term Lenders (as defined below) have made Initial Term Loans to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, (a) the Borrower intends to obtain Replacement Term Loans pursuant to this Amendment, the proceeds of which will be used to prepay in full the Initial Term Loans outstanding under the Existing Credit Agreement as of the Amendment No. 1 Effective Date (as defined below) immediately prior to giving effect to this Amendment (the "**Existing Term Loans**"; and the Initial Term Lenders holding such Existing Term Loans, the "**Existing Term Lenders**") and (b) Section 9.02(c) of the Existing Credit Agreement provides that the Administrative Agent, the Borrower and the lenders providing the relevant Replacement Term Loans may amend the Existing Credit Agreement to permit the refinancing of the Existing Term Loans with a replacement term loan tranche thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, each Existing Term Lender that elects "Cashless Settlement Option" via LendAmend (such election, a "**Cashless Conversion Election**", each such Existing Term Lender making a Cashless Conversion Election, a "**Cashless Conversion Lender**") will be deemed to have (a) agreed to the terms of this Amendment and the Amended Credit Agreement and (b) converted 100% of the outstanding principal amount (or such lesser amount as elected by the Administrative Agent) of its existing Initial Term Loans into an equal principal amount of 2025 Repricing Term Loans (as defined below) in accordance with the terms of, and subject to the conditions of, this Amendment and the Amended Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, the Borrower has requested that the lender set forth on the signature page hereto as the "2025 Repricing Term Lender" (together with the Existing Term Lenders set forth on the signature pages hereto that elected "Cashless Settlement Option", in such capacity, the "**2025 Repricing Term Lenders**") extend credit to the Borrower in the form of Replacement Term Loans on the Amendment No. 1 Effective Date in an aggregate principal amount, together with the aggregate principal amount of Replacement Term Loans for which Cashless Conversion Lenders exchange their Initial Term Loans, of $548,625,000 (the "**2025 Repricing Term Loans**"), in accordance with the terms and conditions set forth in this Amendment and in the Amended Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, each 2025 Repricing Term Lender has indicated its willingness to lend 2025 Repricing Term Loans in the aggregate principal amount specified opposite its name on <u>Schedule I</u> attached hereto in accordance with the terms of this Amendment and subject to the conditions set forth in this

------

Amendment, the proceeds of which will be used by the Borrower to prepay the Existing Term Loans on the Amendment No. 1 Effective Date and to pay related fees, cost, expenses and original issue discount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, pursuant to Section 2.22 of the Amended Credit Agreement (prior to giving effect to the Incremental Term Loan Amendments (as defined below)), the Borrower has requested that the lenders set forth on the signature pages hereto as the "2025 Incremental Term Lenders" (in such capacity, the "**2025 Incremental Term Lenders**" and, together with the 2025 Repricing Term Lenders, the "**2025 Replacement Term Lenders**") extend credit to the Borrower in the form of Incremental Term Loans on the Amendment No. 1 Effective Date in an aggregate principal amount of $101,375,000 (the "**2025 Incremental Term Loans**" and, together with the 2025 Repricing Term Loans, the "**2025 Replacement Term Loans**"), in accordance with the terms and conditions set forth in this Amendment and in the Amended Credit Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, each 2025 Incremental Term Lender has indicated its willingness to lend 2025 Incremental Term Loans in an aggregate principal amount specified opposite such lender's name on <u>Schedule I</u> attached hereto in accordance with the terms of this Amendment and subject to the conditions set forth in this Amendment, the proceeds of which will be used for general corporate purposes, to repay Indebtedness outstanding under the Revolving Credit Agreement and for any other purpose not prohibited by the terms of the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) WHEREAS, (i) Goldman Sachs Bank USA, KKR Capital Markets LLC, Morgan Stanley Senior Funding, Inc., MUFG Bank, Ltd., Wells Fargo Securities, LLC, Barclays Bank PLC, HSBC Securities (USA) Inc., JPMorgan Chase Bank, N.A., M&T Bank, Mizuho Bank, Ltd., Raymond James & Associates, Inc., BMO Capital Markets Corp., Natixis, New York Branch and UBS Securities LLC have agreed to act as joint lead arrangers and joint bookrunners (collectively, the "**Lead Arrangers**") in respect of the 2025 Repricing Term Loans and the 2025 Incremental Term Loans and (ii) Capital One, National Association and U.S. Bank National Association have agreed to act as co-managers in respect of the 2025 Repricing Term Loans and the 2025 Incremental Term Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&nbsp;&nbsp;&nbsp; WHEREAS, the Borrower has requested, and the Lenders party hereto have agreed, to amend the Existing Credit Agreement in accordance with the terms of this Amendment and subject to the conditions set forth in this Amendment and the Amended Credit Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Amendment and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows:

**SECTION 1.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Defined Terms; References.* Unless otherwise specifically defined in this Amendment, each term used in this Amendment that is defined in the Existing Credit Agreement has the meaning assigned to such term in the Existing Credit Agreement.

**SECTION 2.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2025 Repricing Term Lenders and 2025 Repricing Term Loans*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions set forth herein, each 2025 Repricing Term Lender hereby agrees to make 2025 Repricing Term Loans in the aggregate principal amount specified opposite its name on <u>Schedule I</u> attached hereto at the Amendment No. 1 Repricing Effective Time (as defined below). The commitment of each 2025 Repricing Term Lender pursuant to this <u>Section 2(a)</u> shall terminate upon the funding of (or, in the case of each Cashless Conversion Lender, converting (on a cashless basis) such Cashless Conversion Lender's Initial Term Loans into an equivalent principal amount of) the 2025 Repricing Term Loans on the Amendment No. 1 Effective Date. Once repaid, the 2025 Repricing

------

Term Loans may not be reborrowed. The 2025 Repricing Term Loans shall have the terms set forth in this Amendment and in the Amended Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions set forth herein, on the Amendment No. 1 Effective Date (i) each 2025 Repricing Term Lender shall become a "2025 Replacement Term Lender", a "Term Lender" and a "Lender" under the Amended Credit Agreement and (ii) each 2025 Repricing Term Lender shall have all the rights and obligations of a "2025 Replacement Term Lender", a "Term Lender" and a "Lender" holding a Term Loan under the Amended Credit Agreement and other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the Amendment No. 1 Effective Date, each Existing Term Lender (in its capacity as such, but not in any other capacity) shall cease to be a Lender party to the Existing Credit Agreement (and, for the avoidance of doubt, shall not be a party to the Amended Credit Agreement with respect to Initial Term Loans (except to the extent that it shall (A) subsequently become party thereto pursuant to an Assignment and Assumption entered into with any Lender in accordance with the terms of the Amended Credit Agreement, (B) remain a party thereto as a Cashless Conversion Lender pursuant to a cashless settlement mechanism in accordance with this Amendment, Section 1.09 and Section 9.02(c) of the Existing Credit Agreement or (C) subsequently become party thereto through other means in accordance with the terms and provisions of the Amended Credit Agreement)), and all accrued and unpaid fees and other amounts payable under the Existing Credit Agreement for the account of each Existing Term Lender shall be due and payable on the Amendment No. 1 Effective Date.

**SECTION 3.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2025 Incremental Term Lenders and 2025 Incremental Term Loans.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions set forth herein, each 2025 Incremental Term Lender hereby agrees to make 2025 Incremental Term Loans in an aggregate principal amount specified opposite its name on <u>Schedule I</u> attached hereto at the Amendment No. 1 Incremental Effective Time (as defined below). The commitment of the 2025 Incremental Term Lenders pursuant to this <u>Section 3(a)</u> shall terminate upon the funding of the 2025 Incremental Term Loans on the Amendment No. 1 Effective Date. Once repaid, the 2025 Incremental Term Loans may not be reborrowed. The 2025 Incremental Term Loans shall have the terms set forth in this Amendment and in the Amended Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions set forth herein, on the Amendment No. 1 Effective Date, (i) each 2025 Incremental Term Lender shall become a "2025 Replacement Term Lender", a "Term Lender" and a "Lender" under the Amended Credit Agreement and (ii) each 2025 Incremental Term Lender shall have all the rights and obligations of a "2025 Replacement Term Lender", a "Term Lender" and a "Lender" holding a Term Loan under the Amended Credit Agreement and other Loan Documents.

**SECTION 4.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *2025 Replacement Term Lenders and 2025 Replacement Term Loans.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With effect from the effectiveness of this Amendment, (1) each 2025 Repricing Term Loan made on the Amendment No. 1 Effective Date in accordance with <u>Section 2(a)</u> and (2) each 2025 Incremental Term Loan made on the Amendment No. 1 Effective Date in accordance with <u>Section 3(a)</u> shall, in each case, constitute for all purposes of the Existing Credit Agreement as amended hereby, a "2025 Replacement Term Loan" made pursuant to the Amended Credit Agreement (it being understood that the 2025 Repricing Term Loans and the 2025 Incremental Term Loans shall constitute a single Class of Loans on the Amendment No. 1 Effective Date for all purposes under the Amended Credit Agreement). The initial Interest Period applicable to the 2025 Replacement Term Loans shall commence on the Amendment No. 1 Effective Date and end on September 11, 2025, and each of the Administrative Agent and the 2025 Replacement Term Lenders hereby consents to such Interest Period.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The 2025 Replacement Term Loans may from time to time be Term Benchmark Loans or ABR Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Section 2.03 of the Amended Credit Agreement. The Applicable Margin shall be a percentage per annum equal to, in the case of (x) Term Benchmark Loans, 2.50% and (y) ABR Loans, 1.50%.

**SECTION 5.**&nbsp;&nbsp;&nbsp;&nbsp; *Amendments*. With effect from and after the Amendment No. 1 Effective Date, the Existing Credit Agreement is hereby amended in accordance with <u>Exhibit A</u> hereto by deleting the stricken text (indicated textually in the same manner as the following example: stricken text) and inserting the double-underlined text (indicated textually in the same manner as the following example: **<u>double-underlined text</u>**), in each case in the place where such text appears therein; <u>provided</u> that it is understood and agreed that the amendments necessary to establish the 2025 Repricing Term Loan and the changes relating thereto (collectively, the "**Repricing Term Loan Amendments**") shall take effect immediately prior to the amendments necessary to establish the 2025 Incremental Term Loans and the changes relating thereto (collectively, the "**Incremental Term Loan Amendments**").

**SECTION 6.**&nbsp;&nbsp;&nbsp;&nbsp; *Representations and Warranties.* To induce the other parties hereto to enter into this Amendment, the Borrower hereby represents and warrants to the Administrative Agent and the Lenders party hereto that, as of the Amendment No. 1 Effective Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The execution, delivery and performance of this Amendment is within each applicable Loan Party's corporate or other organizational power and have been duly authorized by all necessary corporate or other organizational action of such Loan Party. This Amendment has been duly executed and delivered by each Loan Party and is a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to the Legal Reservations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The execution and delivery of this Amendment by each Loan Party and the performance by such Loan Party (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in full force and effect, (ii) in connection with the Perfection Requirements or (iii) such consents, approvals, registrations, filings, or other actions the failure to obtain or make which could not be reasonably expected to have a Material Adverse Effect, (b) will not violate any (i) of such Loan Party's Organizational Documents or (ii) Requirement of Law applicable to such Loan Party which violation, in the case of this <u>clause (b)(ii)</u>, could reasonably be expected to have a Material Adverse Effect and (c) will not violate or result in a default under any material Contractual Obligation to which such Loan Party is a party which violation, in the case of this <u>clause (c)</u>, could reasonably be expected to result in a Material Adverse Effect.

**SECTION 7.**&nbsp;&nbsp;&nbsp;&nbsp; *Conditions to Effectiveness*. This Amendment will become effective on the date (the "**Amendment No. 1 Effective Date**") on which each of the Amendment No. 1 Repricing Effective Time and the Amendment No. 1 Incremental Effective Time shall have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Conditions to Effectiveness of Repricing Term Loan Amendments</u>. The effectiveness of the Repricing Term Loan Amendments is subject to the satisfaction (or waiver) of the following conditions (the time at which such conditions are satisfied or waived, the "**Amendment No. 1 Repricing Effective Time**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent shall have received from each of the Loan Parties and each 2025 Repricing Term Lender a counterpart of this Amendment signed on behalf of such party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent shall have received, on behalf of each 2025

------

Repricing Term Lender, the executed legal opinion of Simpson Thacher & Bartlett LLP, counsel to the Loan Parties, and the Loan Parties hereby instruct such counsel to deliver such legal opinion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower shall have paid to (i) the Administrative Agent, for the ratable account of the Existing Term Lenders, all accrued and unpaid interest on their Existing Term Loans through but excluding the Amendment No. 1 Effective Date, (ii) the Administrative Agent, the Lead Arrangers and the Lenders hereto the fees in the amounts previously agreed in writing to be paid on the Amendment No. 1 Effective Date and (iii) the Lead Arrangers and the Administrative Agent all reasonable costs and expenses (including, without limitation, the reasonable fees, charges and disbursements of Milbank LLP, counsel for the Lead Arrangers and the Administrative Agent) of the Lead Arrangers and the Administrative Agent for which invoices have been presented at least two Business Days prior to the Amendment No. 1 Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent (or its counsel) shall have received (i) a certificate of each Loan Party, dated as of the date hereof and executed by a secretary, assistant secretary or other similarly-titled Responsible Officer thereof, which shall (A) certify that (x) attached thereto is a true and complete copy of the certificate or articles of incorporation, formation or organization of such Loan Party, as applicable, certified by the relevant authority of its jurisdiction of organization, which certificate or articles of incorporation, formation or organization of such Loan Party, as applicable, have not been amended (except as attached thereto) since the date reflected thereon, (y) attached thereto is a true and correct copy of the by-laws or operating, management, partnership or similar agreement of such Loan Party, as applicable, together with all amendments thereto since the Closing Date and such by-laws or operating, management, partnership or similar agreement are in full force and effect and (z) attached thereto is a true and complete copy of the resolutions or written consent, as applicable, of its board of directors, board of managers, sole member, manager or other applicable governing body authorizing the execution and delivery of the Loan Documents, which resolutions or consent have not been modified, rescinded or amended (other than as attached thereto) and are in full force and effect, and (B) identify by name and title and bear the signatures of the officers, managers, directors or authorized signatories of such Loan Party, as applicable, authorized to sign the Loan Documents to which such Loan Party, as applicable, is a party and (ii) a good standing (or equivalent) certificate for such Loan Party, as applicable, from the relevant authority of its jurisdiction of organization, dated as of a recent date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower shall have previously delivered to the Administrative Agent (i) a Borrowing Request in respect of the 2025 Repricing Term Loans in accordance with Section 2.03 of the Existing Credit Agreement and (ii) a notice of prepayment in respect of the Existing Term Loans meeting the requirements of Section 2.11 of the Existing Credit Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp; no Event of Default under Section 7.01(a), (f) or (g) of the Existing Credit Agreement shall exist immediately prior to or after giving effect to the 2025 Repricing Term Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp; <u>Conditions to Effectiveness of Incremental Term Loan Amendments</u>. The effectiveness of the Incremental Term Loan Amendments is subject to the satisfaction (or waiver) of the following conditions (the time at which such conditions are satisfied or waived, the "**Amendment No. 1 Incremental Effective Time**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Amendment No. 1 Repricing Effective Time shall have occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent shall have received from each 2025 Incremental Term Lender a counterpart of this Amendment signed on behalf of such party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent shall have received, on behalf of the 2025

------

Incremental Term Lenders, the executed legal opinion of Simpson Thacher & Bartlett LLP, counsel to the Loan Parties, and the Loan Parties hereby instruct such counsel to deliver such legal opinion (which opinion may, for the avoidance of doubt, be combined with the opinion required pursuant to <u>Section 7(a)(ii)</u> above);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower shall have paid to the Administrative Agent and the 2025 Incremental Term Lenders all fees previously agreed in writing to be paid on the Amendment No. 1 Effective Date in connection with the 2025 Incremental Term Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp; the Borrower shall have previously delivered to the Administrative Agent a Borrowing Request in respect of the 2025 Incremental Term Loans (it being understood that such Borrowing Request may be combined with the Borrowing Request required pursuant to <u>Section 7(a)(v)</u> above);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp; no Event of Default shall have occurred and be continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp; the Specified Representations shall be true and correct in all material respects on and as of the date of this Amendment; <u>provided</u> that (I) in the case of any Specified Representation which expressly relates to a given date or period, such representation and warranty shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be and (II) if any Specified Representation is qualified by or subject to a "material adverse effect," "material adverse change" or similar term or qualification, such Specified Representation shall be true and correct in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent shall have received a certificate of the Borrower signed by a Responsible Officer thereof (A) certifying and attaching a copy of the resolutions adopted by the governing body of the Borrower consenting to the 2025 Incremental Term Loans and (B) certifying that the conditions set forth in the immediately preceding subclauses <u>(vi</u>) and <u>(vii</u>) have been satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent shall have received a Solvency Certificate from the chief financial officer of the Borrower certifying as to the matters set forth therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp; the Administrative Agent and the 2025 Incremental Term Lenders shall have received, at least three Business Days prior to the Amendment No. 1 Effective Date to the extent reasonably requested in writing by such Person at least ten Business Days prior to the Amendment No. 1 Effective Date, all documentation and other information about each Loan Party as shall have been so reasonably requested in writing by such Person as required by U.S. regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act, and a beneficial ownership certification from the Borrower in accordance with the requirements of 31 C.F.R. § 1010.230.

**SECTION 8.**&nbsp;&nbsp;&nbsp;&nbsp; *Waiver*. The Administrative Agent hereby waives the processing and recordation fee provided for in Section 9.05(b)(ii)(C) of the Amended Credit Agreement in connection with any assignment of 2025 Repricing Term Loans for the general primary syndication of the 2025 Repricing Term Loans.

**SECTION 9.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Notice.* For purposes of the Amended Credit Agreement, the initial notice addresses of the 2025 Replacement Term Lenders shall be as separately identified to the Administrative Agent.

**SECTION 10.**&nbsp;&nbsp;&nbsp;&nbsp; *Tax Forms; Administrative Questionnaire.* To the extent required by the Administrative Agent from the 2025 Replacement Term Lenders, delivered herewith to the Administrative

------

Agent are (1) such forms, certificates or other evidence with respect to United States federal income tax withholding matters and (2) such lenders' Administrative Questionnaire, in each case, as the 2025 Replacement Term Lenders may be required to deliver to the Administrative Agent pursuant to the Existing Credit Agreement.

**SECTION 11.**&nbsp;&nbsp;&nbsp;&nbsp; *Recordation.* Upon execution and delivery hereof, the Administrative Agent will record the 2025 Replacement Term Loans made by the 2025 Replacement Term Lenders in the Register.

**SECTION 12.**&nbsp;&nbsp;&nbsp;&nbsp; *Amendment, Modification and Waiver.* This Amendment may not be amended, restated, supplemented, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

**SECTION 13.**&nbsp;&nbsp;&nbsp;&nbsp; *Entire Agreement.* This Amendment, the Existing Credit Agreement and the other Loan Documents constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

**SECTION 14.**&nbsp;&nbsp;&nbsp;&nbsp; *GOVERNING LAW; SUBMISSION TO JURISDICTION*. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. Section 9.10 of the Existing Credit Agreement is hereby incorporated into this Amendment *mutatis mutandis*.

**SECTION 15.**&nbsp;&nbsp;&nbsp;&nbsp; *Severability*. Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

**SECTION 16.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Counterparts*. This Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Any signature to this Amendment may be delivered by facsimile, electronic mail (including pdf) or as any electronic signature complying with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or any other similar state laws based on the Uniform Electronic Transactions Act or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and electronic signatures or the keeping of records in electronic form shall be valid and effective for all purposes to the fullest extent permitted by applicable law. For the avoidance of doubt, the foregoing also applies to any amendment, extension or renewal of this Amendment. Each of the parties hereto hereby represents and warrants to the other parties hereto that it has the corporate capacity and authority to execute this Amendment through electronic means and there are no restrictions for doing so in such party's constitutive documents, including having the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system.

**SECTION 17.**&nbsp;&nbsp;&nbsp;&nbsp; *WAIVER OF JURY TRIAL .* EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY) DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS

------

AMENDMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

**SECTION 18.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Loan Document.* On and after the Amendment No. 1 Effective Date, this Amendment shall constitute a "Loan Document" for all purposes of the Existing Credit Agreement and the other Loan Documents (it being understood that for the avoidance of doubt this Amendment may be amended, restated, supplemented, modified or waived solely by the parties hereto as set forth in <u>Section 12</u> above). It is understood and agreed that (1) the Repricing Term Loan Amendments hereunder shall, collectively, constitute a "Refinancing Amendment" (as defined in the Existing Credit Agreement) and (2) the Incremental Term Loan Amendments hereunder shall, collectively, constitute an "Incremental Facility Amendment" (as defined in the Existing Credit Agreement).

**SECTION 19.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *Certain Consequences of Effectiveness; Reaffirmation.* Except as expressly set forth herein, (i) this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, or any other Secured Party, in each case under the Existing Credit Agreement or any other Loan Document, and (ii) shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Existing Credit Agreement or any other provision of either such agreement or any other Loan Document. Each and every term, condition, obligation, covenant and agreement contained in the Existing Credit Agreement or any other Loan Document is hereby ratified and re-affirmed in all respects and shall continue in full force and effect. Each Loan Party reaffirms its obligations under the Loan Documents to which it is party and the validity of the Liens granted by it pursuant to the Collateral Documents. From and after the Amendment No. 1 Effective Date, all references to the Existing Credit Agreement in any Loan Document and all references in the Existing Credit Agreement to "this Agreement," "hereunder," "hereof" or words of like import referring to the Existing Credit Agreement, shall, unless expressly provided otherwise, refer to the Existing Credit Agreement as amended by this Amendment. Each of the Loan Parties hereby consents to this Amendment and confirms that all obligations of such Loan Party under the Loan Documents to which such Loan Party is a party shall continue to apply to the Existing Credit Agreement as amended by this Amendment.

[SIGNATURE PAGES FOLLOW]

------

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

---

| | |
|:---|:---|
| Jointly and severally: | Jointly and severally: |
| **KREF HOLDINGS X LLC** | **KREF HOLDINGS X LLC** |
| By:  | <u>/s/ Patrick Mattson</u> |
| Name: Patrick Mattson | Name: Patrick Mattson |
| Title: Authorized Signatory | Title: Authorized Signatory |

---

---

| | |
|:---|:---|
| **KKR REAL ESTATE FINANCE HOLDINGS L.P.** | **KKR REAL ESTATE FINANCE HOLDINGS L.P.** |
| By:  | <u>/s/ Patrick Mattson</u> |
| Name: Patrick Mattson | Name: Patrick Mattson |
| Title: Authorized Signatory | Title: Authorized Signatory |

---

---

| |
|:---|
| **KREF CAPITAL LLC** |
| **KREF CAPITAL REO LLC** |
| **KREF CAPITAL TRS LLC** |
| **KREF LLOYD CENTER MANAGER LLC** |
| **KREF MEZZ HOLDINGS LLC** |
| **KREF SECURITIES HOLDINGS, LLC** |
| **KREF SECURITIES HOLDINGS II, LLC** |
| **KREF SECURITIES HOLDINGS III LLC** |
| **KREF SECURITIES HOLDINGS IV LLC** |
| **KREF SECURITIES HOLDINGS V LLC** |
| **LLOYD OUTPARCEL HOLDINGS LLC** |
| **REFH SR MEZZ LLC,** |
| each as a Guarantor |

---

---

| | |
|:---|:---|
| By:  | <u>/s/ Patrick Mattson</u> |
| Name: Patrick Mattson | Name: Patrick Mattson |
| Title: Authorized Signatory | Title: Authorized Signatory |

---

[Signature Page to Amendment No. 1]

------

---

| |
|:---|
| **GOLDMAN SACHS BANK USA**, |
| as Administrative Agent, a 2025 Repricing Term Lender <br>|
| and a 2025 Incremental Term Lender |

---

---

| | |
|:---|:---|
| By:  | <u>/s/ Thomas Manning</u> |
| Name: Thomas Manning | Name: Thomas Manning |
| Title: Authorized Signatory | Title: Authorized Signatory |

---

---

| | |
|:---|:---|
| **GOLDMAN SACHS BANK USA,** | **GOLDMAN SACHS BANK USA,** |
| as a 2025 Incremental Term Lender | as a 2025 Incremental Term Lender |
| By:  | <u>/s/ Thomas Manning</u> |
| Name: Thomas Manning | Name: Thomas Manning |
| Title: Authorized Signatory | Title: Authorized Signatory |

---

------

## Exhibit 10.2

------

**Exhibit 10.2**<br>

Execution Version

#### LENDER JOINDER AGREEMENT NO. 9
April 19, 2022

Reference is made to the Credit Agreement, dated as of December 20, 2018 (as amended by that certain Sixth Amendment, date as of July 26, 2020 and that certain Seventh Amendment dated as of March 16, 2022 and as further amended, restated, amended and restated, supplemented or otherwise modified, refinanced or replaced from time to time, the "**Credit Agreement**"; the terms defined therein being used herein as therein defined), among KKR Real Estate Finance Holdings L.P., a Delaware limited partnership ("**Opco**"), KREF Holdings X LLC, a Delaware limited liability company (the "**Borrower**"), the Guarantors from time to time party thereto, the lending institutions from time to time party thereto and Morgan Stanley Senior Funding, Inc. ("**MSSF**"), as Administrative Agent and Swingline Lender.

Upon execution and delivery of this Lender Joinder Agreement No. 9 (this "**Lender Joinder Agreement**") by the parties hereto, [\*\*] (the "**New Lender**") hereby becomes a Lender under the Credit Agreement having the Commitment set forth in <u>Schedule 1</u> hereto, effective as of the date hereof and agrees to be bound by the provisions of the Credit Agreement, and the New Lender's Commitments shall be part of the same series of revolving commitments as the Consenting Commitments. This Lender Joinder Agreement shall constitute the notice required to be delivered by the Borrower to the Administrative Agent pursuant to Section 2.21 of the Credit Agreement.

It is understood and agreed that, after giving effect to this Lender Joinder Agreement, Schedule 2.01 to the Credit Agreement will be amended and replaced with <u>Schedule 2</u> hereto, which shall be Schedule 2.01 to the Credit Agreement for all purposes therein.

The New Lender (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Lender Joinder Agreement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to become a Lender, (iii) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Lender Joinder Agreement on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender and (iv) if it is a Non-U.S. Lender, attached to this Lender Joinder Agreement is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the undersigned, and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

------

THIS LENDER JOINDER AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

This Lender Joinder Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page hereof by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

------

Accepted and agreed:

---

| | | |
|:---|:---|:---|
| KREF HOLDINGS X LLC, | KREF HOLDINGS X LLC, | KREF HOLDINGS X LLC, |
| as Borrower | as Borrower | as Borrower |
| By: | &nbsp;&nbsp;&nbsp; /s/ Patrick Mattson | &nbsp;&nbsp;&nbsp; /s/ Patrick Mattson |
|  | Name:<br>| Patrick Mattson |
|  | Title:<br>| Authorized Signatory |

---

[Signature Page to Lender Joinder Agreement]

------

Accepted and agreed:

---

| | | |
|:---|:---|:---|
| MORGAN STANLEY SENIOR FUNDING, INC., | MORGAN STANLEY SENIOR FUNDING, INC., | MORGAN STANLEY SENIOR FUNDING, INC., |
| as Administrative Agent and Swingline Lender | as Administrative Agent and Swingline Lender | as Administrative Agent and Swingline Lender |
| By: | &nbsp;&nbsp;&nbsp; /s/ Lisa Hanson | &nbsp;&nbsp;&nbsp; /s/ Lisa Hanson |
|  | Name: | Lisa Hanson |
|  | Title:<br>| VP |

---

[Signature Page to Lender Joinder Agreement]

------

#### SCHEDULE 2
<u>Revolving Credit Commitments</u>

---

| | |
|:---|:---|
| **Name of Lender** | **Revolving Credit Commitment** |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| Total: | $610000000 |

---

------

## Exhibit 10.3

------

#### Exhibit 10.3 <br>

#### <br>

#### Execution Version

#### LENDER JOINDER AGREEMENT NO. 10
September 10, 2025

Reference is made to the Credit Agreement, dated as of December 20, 2018 (as amended, restated, amended and restated, supplemented or otherwise modified, refinanced or replaced from time to time, the "**Credit Agreement**"; the terms defined therein being used herein as therein defined), among KKR Real Estate Finance Holdings L.P., a Delaware limited partnership ("**Opco**"), KREF Holdings X LLC, a Delaware limited liability company (the "**Borrower**"), the Guarantors from time to time party thereto, the lending institutions from time to time party thereto and Morgan Stanley Senior Funding, Inc. ("**MSSF**"), as Administrative Agent.

Upon execution and delivery of this Lender Joinder Agreement No. 10 (this "**Lender Joinder Agreement**") by the parties hereto, [\*\*] (the "**Increasing Lender**") hereby agrees to increase its Commitment under the Credit Agreement (such increase, an "**Additional Commitment**") in the amount set forth under such Lender's name in <u>Schedule 1</u> hereto, effective as of the date hereof. This Lender Joinder Agreement shall constitute the notice required to be delivered by the Borrower to the Administrative Agent pursuant to Section 2.21 of the Credit Agreement.

It is understood and agreed that, after giving effect to this Lender Joinder Agreement, Schedule 2.01 to the Credit Agreement will be amended and replaced with <u>Schedule 2</u> hereto, which shall be Schedule 2.01 to the Credit Agreement for all purposes therein.

The Increasing Lender (a) represents and warrants that it has full power and authority, and has taken all action necessary, to execute and deliver this Lender Joinder Agreement and to consummate the transactions contemplated hereby and to increase its Commitment under the Credit Agreement and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents and (ii) it will perform in accordance with their terms all of the obligations by which the terms of the Loan Documents are required to be performed by it as a Lender.

THIS LENDER JOINDER AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

This Lender Joinder Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page hereof by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

------

IN WITNESS WHEREOF, the parties hereto have caused this Lender Joinder Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date first written above.

Accepted and agreed:

---

| | |
|:---|:---|
| KREF HOLDINGS X LLC, | KREF HOLDINGS X LLC, |
| as Borrower | as Borrower |
| By: | <u>/s/ Patrick Mattson</u> |
| Name: | Patrick Mattson |
| Title: | Authorized Signatory |

---

[Signature Pace to Lender Joinder Agreement]

------

Accepted and agreed:

---

| | |
|:---|:---|
| MORGAN STANLEY SENIOR FUNDING, INC., | MORGAN STANLEY SENIOR FUNDING, INC., |
| as Administrative Agent | as Administrative Agent |
| By: | <u>/s/ Jennifer DeFazio</u> |
| Name: | Jennifer DeFazio |
| Title: | Authorized Signatory |

---

[Signature Page to Lender Joinder Agreement]

------

#### SCHEDULE 2

#### Revolving Credit Commitments

---

| | |
|:---|:---|
| **Name of Lender** | **Revolving Credit Commitment** |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| [\*\*] | [\*\*] |
| **Total:** | **$700000000** |

---

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF CHIEF EXECUTIVE OFFICER**

I, Matthew A. Salem, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 of KKR Real Estate Finance Trust Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| By: | /s/ Matthew A. Salem |
|  | Matthew A. Salem |
|  | Chief Executive Officer and Director |
|  | (Principal Executive Officer) |
|  | October 21, 2025 |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF CHIEF FINANCIAL OFFICER**

I, Kendra L. Decious, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025 of KKR Real Estate Finance Trust Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| By: | /s/ Kendra L. Decious |
|  | Kendra L. Decious |
|  | Chief Financial Officer |
|  | (Principal Financial Officer) |
|  | October 21, 2025 |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY**

**ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of KKR Real Estate Finance Trust Inc. (the "Company") for the quarterly period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Matthew A. Salem, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| By: | /s/ Matthew A. Salem |
|  | Matthew A. Salem |
|  | Chief Executive Officer and Director |
|  | (Principal Executive Officer) |

---

October 21, 2025

*\*&nbsp;&nbsp;&nbsp;&nbsp;The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.*

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY**

**ACT OF 2002**

In connection with the Quarterly Report on Form 10-Q of KKR Real Estate Finance Trust Inc. (the "Company") for the quarterly period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kendra L. Decious, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| By: | /s/ Kendra L. Decious |
|  | Kendra L. Decious |
|  | Chief Financial Officer |
|  | (Principal Financial Officer) |

---

October 21, 2025

*\*&nbsp;&nbsp;&nbsp;&nbsp;The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.*

<br>