KKR Real Estate Finance Trust Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net loss attributable to common stockholders of $6.4 million ($0.11 per diluted share) for the quarter ended September 30, 2026, compared to a net loss of $121.8 million ($1.95 per diluted share) for the quarter ended June 30, 2026.
• Reported Distributable Loss of $152.0 million ($2.64 per diluted share) for the quarter ended September 30, 2026, compared to a Distributable Loss of $36.4 million ($0.58 per diluted share) for the quarter ended June 30, 2026.
• Distributable Earnings before realized gains/losses and strategic review expenses were $5.2 million ($0.09 per share) for the quarter ended September 30, 2026, compared to $6.0 million ($0.10 per share) for the quarter ended June 30, 2026.
• Total leverage declined to 3.1x as of September 30, 2026.
• Common book value was $582.5 million ($10.14 per share) as of September 30, 2026, inclusive of net unrealized and realized loan losses of $6.6 million ($0.11 per share).
• Liquidity position totaled $853.5 million as of September 30, 2026, consisting of $165.9 million in cash, $53.4 million in loan principal repayments held by a servicer, and $600.0 million in undrawn capacity on the corporate revolving credit agreement.

Guidance and Future Outlook:

• Year-to-date loan repayments totaled $2.4 billion, exceeding original full-year expectations.
• No final facility maturities are due until 2027, and no corporate debt is due until 2030.
• Management indicated that repayment activity has meaningfully strengthened the balance sheet and enhanced financial flexibility.

Business Segments and Product Lines:

• The current loan portfolio totals $3.2 billion, with 98% floating-rate and a weighted average unlevered all-in yield of 7.0% as of September 30, 2026.
• Multifamily and industrial assets represent 57% of the loan portfolio.
• Originated and funded $157.0 million in two floating-rate senior loans with a weighted average appraised LTV of 63% and a coupon of 2.6% over the applicable benchmark.
• Funded $20.4 million in loan principal for existing loans during the quarter.
• Received $1.2 billion in loan repayments in the third quarter.
• The portfolio has a weighted average LTV at origination of 65% and an average risk rating of 3.2.
• Resolved three watch list loans: a risk-rated 5 life science loan in Boston, MA; a risk-rated 5 loan in San Diego, CA; and a risk-rated 4 loan in Dallas, TX.
• Financing sources are diversified totaling $5.5 billion, with $2.4 billion of undrawn capacity; 74% of secured financing is fully non-mark-to-market, with the remainder mark-to-credit only.
• Redeemed both outstanding collateralized loan obligations, including an aggregate of $564 million in investment-grade bonds.

Market and Competitive Landscape:

• The company operates as a real estate investment trust primarily originating or acquiring transitional senior loans collateralized by institutional-quality commercial real estate assets.
• The company is externally managed by KKR Real Estate Finance Manager LLC, an indirect subsidiary of KKR & Co. Inc., which reported $796.5 billion of assets under management as of June 30, 2026.

Risks and Challenges:

• Forward-looking statements highlight risks including the review of possible strategic alternatives for the company to enhance shareholder value by the board's strategic review committee.
• Risks include general political, economic, and competitive conditions, global economic trends (inflation, slower growth, recession), changes in fiscal and monetary policy, fluctuations in interest rates and credit spreads, labor shortages, currency fluctuations, and supply chain challenges.
• Potential risks include deterioration in the performance of properties securing investments, difficulty accessing financing or raising capital, and risks detailed in the company's Form 10-K.

Management Commentary and Tone:

• Matt Salem, CEO, stated the company made significant progress executing the action plan established at the beginning of the year, including the resolution of three additional watch list loans.
• Patrick Mattson, President and COO, noted that repayment activity remained strong and exceeded original full-year expectations, strengthening the balance sheet and reducing leverage.

Other Key Points:

• In July, the company repurchased 1.6 million shares at an average price of $7.26 per share for a total of $11.3 million.
• The company will host a conference call on October 29, 2026, at 11:00 a.m. Eastern Time to discuss results.
• A slide presentation with supplemental information is available on the company's investor relations website.
• The reconciliation of Distributable Earnings (Loss) to Net Income (Loss) includes adjustments for non-cash equity compensation, depreciation, unrealized gains/losses on investments and foreign currency, net unrealized and realized loan losses, and expenses related to strategic review.