KKR Real Estate Finance Trust (KREF) investor relations material

Executive summary

• Independent directors formed a strategic review committee in July to assess alternatives, including a potential sale, merger, other transaction or continuation of the current strategy; timing and outcome remain uncertain.

• Year-to-date repayments reached $2.4B, exceeding the original full-year expectation; the loan portfolio contracted to $3.15B across 37 loans from $5.36B across 53 loans at year-end 2025.

• Q3 GAAP net loss attributable to common stockholders was $6.4M, or $0.11 per diluted share; Distributable Loss was $152.0M, or $2.64 per diluted share.

Financial highlights

• Q3 net interest income was $14.6M, versus $18.2M in Q2 and $25.3M in Q3 2025.

• Q3 realized loss on loan write-offs was $155.9M, or $2.70 per diluted share; excluding realized gains and losses and strategic-review expenses, Distributable Earnings were $5.2M, or $0.09 per diluted share.

• Book value was $10.14 per share at September 30; the declared Q3 common dividend was $0.10 per share.

• Nine-month net loss was $190.1M, or $3.09 per share, driven largely by credit-loss provision and a held-for-sale loan loss.

• Nine-month operating expenses rose $129.3M year over year to $255.4M, primarily due to a $150.0M credit-loss provision and $50.0M held-for-sale loan loss.

Outlook and guidance

• Priorities include resolving watch-list and legacy office exposures and positioning REO assets for monetization; originations are expected to remain measured rather than replace repayments dollar for dollar.

• Some asset monetizations expected before year-end may extend into H1 2027; reserves could rise near term as resolutions advance.

• Future investment activity is expected to focus primarily on floating-rate senior loans; leverage is expected to remain below its historical range in Q4.

• Strategic-review expenses, predominantly advisor fees, are ongoing and expected to increase in Q4 on a full-quarter basis; the review has no definitive completion timetable.

• Existing cash, borrowing capacity, operating cash flows and unencumbered assets are expected to meet anticipated financing and operating needs under current conditions.