KKR Real Estate Finance Trust (KREF) Investor presentation summary

Business overview and platform integration

• $4.5 billion senior loan portfolio focused on multifamily and industrial assets, with 100% senior loans and 60% of the portfolio in multifamily/industrial properties.

• Conservative balance sheet with $7.0 billion financing capacity and $722 million in current liquidity.

• Fully integrated with a global asset manager, leveraging $796 billion in global AUM and $84 billion in real estate AUM.

• 17% ownership by the manager, aligning interests with shareholders.

• Access to a deep network of investment professionals and differentiated sourcing, underwriting, and execution advantages.

Investment strategy and portfolio composition

• Focus on lending to institutional-quality real estate owned by high-quality sponsors in top U.S. markets.

• Average loan size is $101 million, with 90% average occupancy for multifamily loans and 3% of loans under construction.

• Portfolio is 98% floating-rate, indexed to benchmark rates, and 100% senior loans.

• Geographic diversification includes 11% European loan exposure.

• Targeting a reduction in legacy office exposure to under 10% by year-end 2026, with proactive resolution strategies for watch list and legacy assets.

Asset quality, risk management, and resolutions

• Weighted average loan-to-value (LTV) is 66%, with a weighted average risk rating of 3.3.

• Watch list migrations in 2026 included three downgrades, two resolutions, and one reclassification as held-for-sale.

• Case studies highlight active management of challenged loans in life science, office, and multifamily sectors.

• Real estate owned (REO) portfolio valued at $658 million, with value creation strategies including leasing, entitlement, and asset sales.

• Near- and medium-term resolutions focus on monetizing REO assets and stabilizing occupancy.