8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2021

KKR Real Estate Finance Trust Inc.

(Exact name of registrant as specified in its charter) 

Maryland	001-38082	47-2009094
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

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

Registrant’s telephone number, including area code: (212) 750-8300

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐                 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐                 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐                 Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐                 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

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.  ☐

Item 2.02    Results of Operations and Financial Condition.

On October 25, 2021, KKR Real Estate Finance Trust Inc. (the “Company”) issued an earnings release and supplemental financial information announcing its financial results for the quarter ended September 30, 2021. The earnings release and supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, hereto and are incorporated herein by reference.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), unless it is specifically incorporated by reference therein.

Forward-Looking statements

This Report contains forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on the Company’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control. The forward-looking statements speak only as of the date of this Report or as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statements except as required by law. Information about factors affecting the Company and the forward-looking statements is available in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as such factors may be updated from time to time in the Company’s periodic filings with the Securities and Exchange Commission, which are available at www.sec.gov.

Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit No.	Description
99.1	Earnings Release dated October 25, 2021
99.2	Supplemental Financial Information for the quarter ended September 30, 2021
104	Cover Page Interactive Data File, formatted in Inline XBRL (embedded within the Inline XBRL document)

SIGNATURE

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 hereunto duly authorized.

KKR Real Estate Finance Trust Inc.
By:	/s/ Vincent J. Napolitano
	Name:    Vincent J. Napolitano
	Title:    General Counsel and Secretary

Date: October 25, 2021

EX-99.1

KKR REAL ESTATE FINANCE TRUST INC. REPORTS

THIRD QUARTER 2021 FINANCIAL RESULTS

New York, NY, October 25, 2021 - KKR Real Estate Finance Trust Inc. (the “Company” or “KREF”) (NYSE: KREF) today reported its financial results for the quarter ended September 30, 2021.

Reported net income attributable to common stockholders of $32.0 million, or $0.57 per diluted share of common stock, for the three months ended September 30, 2021, compared to $29.3 million, or $0.52 per diluted share of common stock, for the three months ended June 30, 2021.

Reported Distributable Earnings of $34.5 million, or $0.62 per diluted share of common stock, for the three months ended September 30, 2021, compared to $30.4 million, or $0.54 per diluted share of common stock, for the three months ended June 30, 2021.

Third Quarter 2021 Highlights

•Originated eight senior loans totaling $1,537.0 million, with a weighted average appraised loan-to-value ratio (“LTV”)(1)and coupon of 66% and L+3.5%, respectively. Received loan repayments of $934.9 million.

•Closed a $1.3 billion managed CLO with two-year reinvestment period providing $1.1 billion of non-mark financing equating to an 84.25% advance rate and a weighted average cost of capital of L+1.3% before transaction costs. Concurrently, repaid $767.0 million of outstanding notes under our 2018 CLO.

•Entered into a new $500.0 million term lending agreement, which provides asset-based financing on a non-mark-to-market basis with matched-term up to five years.

•$516.2 million liquidity position, including $307.7 million of cash and $185.0 million of undrawn capacity on the corporate revolving credit facility (“Revolver”), in addition to $528.0 million of unencumbered investments.

•Current loan portfolio:

•A record $5.8 billion funded portfolio that is 98.0%performing with a weighted average risk rating of 3.0.

•Multifamily and office loans comprise 71% of the portfolio, while hospitality and retail loans comprise 8%.

•99.9% floating-rate with a weighted average LTV of 67%.

•Book value per common share ("BVPS") accretion for six consecutive quarters. BVPS was $19.09 as of September 30, 2021, compared to $18.91 as of June 30, 2021.

Matt Salem, Chief Executive Officer of KREF, said: “KREF delivered another exceptional quarter with record distributable earnings and our sixth consecutive quarter of book value accretion. The scale of our platform, connectivity with KKR and deep relationships with institutional sponsors delivered strong investment activity with $1.5 billion originations for the third quarter.”

Patrick Mattson, President and Chief Operating Officer of KREF, added: “KREF’s affiliation with KKR continues to create market-leading financing solutions. During the quarter, KREF further diversified its financing through the addition of a new $500 million non-mark-to-market term facility and closing of a $1.3 billion managed CRE CLO.”

(1)LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value.

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Portfolio Performance

Collected 97.4%of interest payments due on loan portfolio for the three months ended September 30, 2021. As of September 30, 2021, the average risk rating of the Company's portfolio was 3.0(Average Risk), weighted by outstanding principal amount, as compared to 3.1 (Average Risk) as of June 30, 2021. As of September 30, 2021, 91.2% of the Company's loans was risk-rated 3 or better.

Third Quarter 2021 Investment Activity

Loan Originations

The Company committed capital and funded to the following floating-rate loans ($ in thousands):

Description/ Location	Property Type	Month Originated	Committed Principal Amount		Initial Principal Funded		Interest Rate (A)	Maturity Date(B)	LTV
Senior Loan, Mountain View, CA(D)	Office	July 2021	$	250,000	$	181,571	L + 3.3%	August 2026	73%
Senior Loan, Brisbane, CA	Life Science	July 2021	95,000		84,875		L + 3.0	August 2026	71
Senior Loan, Dallas, TX	Multifamily	August 2021	68,200		68,200		L + 3.8	September 2026	70
Senior Loan, Bronx, NY(E)	Industrial	August 2021	228,746		93,940		L + 4.1	September 2026	52
Senior Loan, Bellevue, WA(F)	Office	September 2021	260,416		43,157		L + 3.6	April 2027	63
Senior Loan, Denver, CO	Multifamily	September 2021	70,300		69,250		L + 2.7	October 2026	78
Senior Loan, The Woodlands, TX	Hospitality	September 2021	183,331		168,090		L + 4.2	October 2026	64
Senior Loan, Arlington, VA	Multifamily	September 2021	381,000		352,941		L + 3.2	October 2026	69
Total/ Weighted Average(C)			$	1,536,993	$	1,062,024	L + 3.5%		66%

(A)    Floating rate based on one-month USD LIBOR. The weighted average coupon is 3.6%, based on outstanding principal and inclusive of in-place LIBOR floors, as of September 30, 2021.

(B)    Maturity date assumes all extension options are exercised, if applicable.

(C)    Weighted average interest rate and LTV are based on committed principal amount of underlying loans.

(D)    The total whole loan is $362.8 million, co-originated by the Company and a KKR affiliate. The Company's interest is 68.9% of the loan.

(E)    The total whole loan is $381.2 million, co-originated by the Company and a KKR affiliate. The Company's interest is 60.0% of the loan.

(F)    The total whole loan is $520.8 million, co-originated by the Company and KKR affiliates. The Company's interest is 50.0% of the loan.

Quarter End Portfolio Summary

The following table sets forth certain information regarding the Company’s portfolio as of September 30, 2021 ($ in millions):

Investment	Committed Principal Amount(A)		Outstanding Principal Amount(A)		Amortized Cost(A)(B)		Carrying Value(A)(C)		Max Remaining Term (Years)(D)(E)	Weighted Average LTV(D)
Senior Loans	$	7,014.8	$	5,736.6	$	5,706.7	$	5,648.6	3.3	67%
Non-Senior Loans(F)	54.1		54.1		48.8		48.0		3.7	n.a.
CMBS B-Pieces(G)	40.0		35.7		35.7		34.5		7.7	58
Total/Weighted Average	$	7,108.9	$	5,826.4	$	5,791.2	$	5,731.1	3.3	67%

(A)    Senior loans include senior mortgages and similar credit quality investments, including junior participations in the Company's originated senior loans for which it has syndicated the senior participations and retained the junior participations for its portfolio and excludes vertical loan syndications.

(B)    Amortized cost represents the outstanding face amount of loan, net of applicable unamortized discounts, loan origination fees and write-offs.

(C)    Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses. Carrying value for CMBS B-Pieces, held through an equity method investment, is measured at fair value.

(D)    Weighted by outstanding principal amount for the Company's senior, mezzanine and real estate corporate loans and by net equity for its CMBS B-Piece investments through an aggregator vehicle. Weighted average LTV does not include (i) one fully funded corporate loan to a multifamily operator with an outstanding principal amount of $31.6 million and (ii) two non-performing 5-rated loans on non-accrual status; with a total outstanding principal of $115.1 million as of September 30, 2021.

(E)    Max remaining term (years) assumes all extension options are exercised, if applicable. 

(F)    Includes two fully funded mezzanine loans with an aggregate outstanding principal amount of $22.5 million and one fully funded corporate loan to a multifamily operator with an outstanding principal amount of $31.6 million as of September 30, 2021.

(G)    Represents an equity method investment in RECOP I, an aggregator vehicle that invests in CMBS B-Pieces.

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Non-GAAP Financial Measures

Reconciliation of Distributable Earnings to Net Income Attributable to Common Stockholders

The table below reconciles Distributable Earnings and related diluted per share amounts to net income attributable to common stockholders and related diluted per share amounts, respectively, for the three months ended September 30, 2021 and June 30, 2021 and the three months ended September 30, 2021 and 2020, respectively ($ in thousands, except per share data):

	Three Months Ended		Per Diluted Share(C)		Three Months Ended		Per Diluted Share(C)
	September 30, 2021				June 30, 2021
Net Income (Loss) Attributable to Common Stockholders	$	31,989	$	0.57	$	29,264	$	0.52
Adjustments
Non-cash equity compensation expense	2,027		0.04		1,994		0.04
Unrealized (gains) or losses(A)	(748)		(0.01)		(364)		(0.01)
Provision for (reversal of) credit losses, net	1,165		0.02		(559)		(0.01)
Non-cash convertible notes discount amortization	91		—		90		—
Distributable Earnings(B)	$	34,524	$	0.62	$	30,425	$	0.54
Weighted average number of shares of common stock outstanding, diluted	56,011,243				55,907,086

(A)    Includes $0.3 million and ($0.2) million non-cash redemption value adjustment of our Special Non-Voting Preferred Stock and ($1.0) million and ($0.1) million of unrealized mark-to-market adjustment to our RECOP I's underlying CMBS investments for the three months ended September 30, 2021 and June 30, 2021, respectively.

(B)    The Company has a $40.3 million, or $0.72 per share, allowance for credit losses against one 5-rated retail loan with an outstanding principal balance of $109.6 million as of September 30, 2021. Such unrealized allowance has not been reflected in distributable earnings.

(C)    Numbers presented may not foot due to rounding.

	Three Months Ended		Per Diluted Share(C)		Three Months Ended		Per Diluted Share(C)
	September 30, 2021				September 30, 2020
Net Income (Loss) Attributable to Common Stockholders	$	31,989	$	0.57	$	31,351	$	0.56
Adjustments
Non-cash equity compensation expense	2,027		0.04		1,390		0.02
Unrealized (gains) or losses(A)	(748)		(0.01)		(178)		—
Provision for (reversal of) credit losses, net	1,165		0.02		(126)		—
Non-cash convertible notes discount amortization	91		—		91		—
Distributable Earnings(B)	$	34,524	$	0.62	$	32,528	$	0.58
Weighted average number of shares of common stock outstanding, diluted	56,011,243				55,632,170

(A)    Includes $0.3 million and ($0.3) million non-cash redemption value adjustment of our Special Non-Voting Preferred Stock, and ($1.0) million and $0.1 million of unrealized mark-to-market adjustment to our RECOP I's underlying CMBS investments for the three months ended September 30, 2021 and 2020, respectively.

(B)    The Company has a $40.3 million, or $0.72 per share, allowance for credit losses against one 5-rated retail loan with an outstanding principal balance of $109.6 million as of September 30, 2021. Such unrealized allowance has not been reflected in distributable earnings.

(C)    Numbers presented may not foot due to rounding.

Book Value

The Company’s book value per share of common stock was $19.09 as of September 30, 2021, as compared to book value per share of common stock of $18.91 as of June 30, 2021.

Book value per share as of September 30, 2021 includes the impact of CECL allowanceof $59.7 million, or ($1.07) per common share, and is net of $6.2 million, or ($0.11) per common share, Series A Cumulative Redeemable Preferred Stock offering costs. See Note 2 — Summary of Significant Accounting Policies, to the Company's condensed consolidated financial statements included in the Form 10-Q for the period ended September 30, 2021 for detailed discussion of allowance for credit losses.

In addition, book value per share includes the impact of a $0.3 million, or ($0.00) per common share, non-cash redemption value adjustment to the redeemable Special Non-Voting Preferred Stock (“SNVPS”) for the three months ended September 30, 2021, resulting in a cumulative (since issuance of the SNVPS) decrease of $2.6 million, or ($0.05)per common share to the book value (“SNVPS Cumulative Impact”) as of September 30, 2021.

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See Note 10 — Equity, to the Company's condensed consolidated financial statements included in the Form 10-Q for the period ended September 30, 2021 for detailed discussion of the SNVPS.

Subsequent Events

The following events occurred subsequent to September 30, 2021:

Investing Activities

The Company originated the following senior loans:

Description/ Location	Property Type	Month Originated	Committed Principal Amount		Initial Principal Funded		Interest Rate (A)	Maturity Date(B)	LTV
Senior Loan, Seattle, WA(C)	Life Science	October 2021	$	140,262	$	87,000	L + 3.1%	October 2026	69%
Senior Loan, Miami, FL	Multifamily	October 2021	89,500		89,500		L + 2.8	November 2026	76
Senior Loan, San Diego, CA	Multifamily	October 2021	103,500		103,500		L + 2.8	November 2026	71
Total/ Weighted Average			$	333,262	$	280,000	L + 2.9%		72%

(A)    Floating rate based on one-month USD LIBOR.

(B)    Maturity date assumes all extension options are exercised, if applicable.

(C)    The total whole loan is $188.0 million, co-originated by the Company and a KKR affiliate. The Company's interest is 74.6% of the loan.

Loan Repayments

The Company received approximately $102.3 million from loan repayments.

Corporate Activities

Dividends

In October 2021, the Company paid $23.9 million in dividends on its common stock, or $0.43 per share, with respect to the third quarter of 2021, to stockholders of record on September 30, 2021.

Redemption of Special Non-Voting Preferred Stock

On October 1, 2021, the KKR Member exercised its Call Option to redeem the Non-Voting Manager Units, including the Non-Voting Manager Units held by KREF TRS, a wholly-owned subsidiary of the Company. Accordingly, KREF TRS received a cash call amount of $5.1 million and the Company concurrently redeemed the SNVPS which will result in book value accretion in the fourth quarter of $2.6 million, or $0.05 per common share, thus eliminating the cumulative negative impact of the SNPVS on book value.

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Teleconference Details:

The Company will host a conference call to discuss its financial results on Tuesday, October 26, 2021 at 9:00 a.m. Eastern Time. Members of the public who are interested in participating in the Company’s third quarter 2021 earnings teleconference call should dial from the U.S., (844) 784-1730, or from outside the U.S., +1 (412) 380-7410, shortly before 9:00 a.m. and reference the KKR Real Estate Finance Trust Inc. Teleconference Call; a pass code is not required. Please note the teleconference call will be available for replay beginning approximately two hours after the broadcast. To access the replay, callers from the U.S. should dial (877) 344-7529 and callers from outside the U.S. should dial +1 (412) 317-0088, and enter conference identification number 10160160.

Webcast:

The conference call will also be available on the Company’s website at www.kkrreit.com. To listen to a live broadcast, please go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the webcast will also be available for 30 days on the Company’s website.

Supplemental Information

The slide presentation accompanying this release and containing supplemental information about the Company’s financial results for the fiscal quarter ended September 30, 2021 may also be accessed through the investor relations section of the Company’s website at www.kkrreit.com.

About KKR Real Estate Finance Trust Inc.

KKR Real Estate Finance Trust Inc. (NYSE: KREF) is a real estate investment trust that primarily originates or acquires transitional senior loans collateralized by institutional-quality commercial real estate assets that are owned and operated by experienced and well-capitalized sponsors and located in liquid markets with strong underlying fundamentals. The Company's target assets also include mezzanine loans, preferred equity and other debt-oriented instruments with these characteristics. The Company is externally managed and advised by KKR Real Estate Finance Manager LLC, a registered investment adviser and an indirect subsidiary of KKR & Co. Inc., a leading global alternative investment firm with 45-year history of leadership, innovation and investment excellence and $429.0 billion of assets under management as of June 30, 2021.

Additional information can be found on the Company’s website at www.kkrreit.com.

Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company’s current views with respect to, among other things, its future 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, in particular due to the uncertainties created by the COVID-19 pandemic, including the projected impact of COVID-19 on the Company's business, financial performance and operating results. The forward-looking statements are based on the Company’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control. Such forward-looking statements are subject to various risks and uncertainties, including, among other things: the severity and duration of the COVID-19 pandemic; potential risks and uncertainties relating to the ultimate geographic spread of COVID-19; actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the potential negative impacts of COVID-19 on the global economy and the impacts of COVID-19 on the Company’s financial condition and business operations; adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise; the general political, economic and competitive conditions in the United States and in any foreign jurisdictions in which the Company invests; the level and volatility of prevailing interest rates and credit spreads; adverse changes in the real estate and real estate capital markets; difficulty or delays in redeploying the proceeds from repayments of existing investments; general volatility of the securities markets in which the Company participates; changes in the Company’s business, investment strategies or target assets; deterioration in the performance of the properties securing the Company’s investments that may cause deterioration in the performance of the Company’s investments and, potentially, principal losses to the Company; acts of God such as hurricanes, earthquakes and other natural disasters, pandemics such as COVID-19, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/or losses to the Company or the owners and operators of the real estate securing the Company’s investments; the adequacy

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of collateral securing the Company’s investments and declines in the fair value of the Company’s investments; difficulty in obtaining financing or raising capital; difficulty in successfully managing the Company’s growth, including integrating new assets into the Company’s existing systems; reductions in the yield on the Company’s investments and increases in the cost of the Company’s financing; defaults by borrowers in paying debt service on outstanding indebtedness; the availability of qualified personnel and the Company’s relationship with its manager, KKR Real Estate Finance Manager LLC; subsidiaries of KKR & Co. Inc. control the Company and KKR's interests may conflict with those of the Company’s stockholders in the future; the cost of operating the Company’s platform, including, but not limited to, the cost of operating a real estate investment platform; adverse legislative or regulatory developments; the Company’s qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes and its exclusion from registration under the Investment Company Act of 1940, as amended (the "Investment Company Act"); and 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 the Company is subject to, as well as their counterparts in any foreign jurisdictions where the Company might do business; and other risks and uncertainties, including those described under Part I-Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in this release. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this release and in the Company’s filings with the SEC. All forward-looking statements in this release speak only as of the date of this release. The Company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

CONTACT INFORMATION

Investor Relations:

KKR Real Estate Finance Trust Inc.

Jack Switala

Tel: +1-888-806-7781 (U.S.) / +1-212-763-9048 (Outside U.S.)

KREF-IR@kkr.com

Media:

Kohlberg Kravis Roberts & Co. L.P.

Cara Major or Miles Radcliffe-Trenner

Tel: +1-212-750-8300

media@kkr.com

Definitions:

“Loan-to-value ratio”: Generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value. For the CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool. 

“Distributable Earnings”: Distributable Earnings, a measure that is not prepared in accordance with GAAP, is a key indicator of its ability to generate sufficient income to pay its 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 the Company’s investor base. Accordingly, the Company’s believes providing Distributable Earnings on a supplemental basis to its net income as determined in accordance with GAAP is helpful to its stockholders in assessing the overall performance of the Company’s business.

The Company defines Distributable Earnings as net income (loss) attributable to stockholders or, without duplication, owners of the Company’s 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 the Company’s manager and board of directors and after approval by a majority of the Company’s 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 the Company forecloses upon the property or properties underlying such debt investments.

While Distributable Earnings excludes the impact of the Company’s unrealized current provision for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is

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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) with respect to any amount due under any loan, when such amount is determined to be non-collectible.

Distributable Earnings should not be considered as a substitute for GAAP net income. The Company cautions readers that its 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, the Company’s reported Distributable Earnings may not be comparable to similar measures presented by other REITs.

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KKR Real Estate Finance Trust Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

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

	September 30, 2021		December 31, 2020
Assets
Cash and cash equivalents	$	307,731	$	110,832
Commercial mortgage loans, held-for-investment	5,442,734		4,844,534
Less: Allowance for credit losses	(58,807)		(59,801)
Commercial mortgage loans, held-for-investment, net	5,383,927		4,784,733
Equity method investments	34,809		33,651
Accrued interest receivable	13,924		15,412
Other assets(A)	13,107		20,984
Total Assets	$	5,753,498	$	4,965,612
Liabilities and Equity
Liabilities
Secured financing agreements, net	$	2,960,833	$	2,574,747
Collateralized loan obligations, net	1,086,900		810,000
Secured term loan, net	287,051		288,028
Convertible notes, net	141,502		140,465
Loan participations sold, net	—		66,232
Dividends payable	24,285		24,287
Accrued interest payable	7,495		5,381
Due to affiliates	5,190		6,243
Accounts payable, accrued expenses and other liabilities(B)	3,065		4,823
Total Liabilities	4,516,321		3,920,206
Commitments and Contingencies	—		—
Temporary Equity
Redeemable preferred stock	2,589		1,852
Permanent Equity
Preferred Stock, 50,000,000 shares authorized
Preferred stock, $0.01 par value (1 share issued and outstanding as of September 30, 2021 and December 31, 2020)	—		—
Series A cumulative redeemable preferred stock, $0.01 par value (6,900,000 and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; liquidation preference of $25.00 per share)	69		—
Common stock, $0.01 par value, 300,000,000 authorized (59,537,806 and 59,519,754 shares issued; 55,637,480 and 55,619,428 shares outstanding as of September 30, 2021 and December 31, 2020, respectively)	556		556
Additional paid-in capital	1,341,986		1,169,695
Accumulated deficit	(47,024)		(65,698)
Repurchased stock (3,900,326 shares repurchased as of September 30, 2021 and December 31, 2020)	(60,999)		(60,999)
Total KKR Real Estate Finance Trust Inc. stockholders’ equity	1,234,588		1,043,554
Total Permanent Equity	1,234,588		1,043,554
Total Liabilities and Equity	$	5,753,498	$	4,965,612

(A)     Includes $8.2 million and $15.9 million of loan repayment proceeds held by servicer and receivable by KREF as of September 30, 2021 and December 31, 2020, respectively.

(B)     Includes $0.9 million of expected loss reserve for unfunded loan commitments as of September 30, 2021 and December 31, 2020.

8

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						Nine Months Ended
	September 30, 2021		June 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net Interest Income
Interest income	$	75,320	$	67,149	$	67,689	$	207,235	$	205,987
Interest expense	29,832		26,958		28,832		84,173		98,477
Total net interest income	45,488		40,191		38,857		123,062		107,510
Other Income
Income (loss) from equity method investments	2,162		1,256		973		4,508		(631)
Other income	130		100		102		296		658
Total other income (loss)	2,292		1,356		1,075		4,804		27
Operating Expenses
General and administrative	3,659		3,688		3,563		10,852		11,376
Provision for (reversal of) credit losses, net	1,165		(559)		(126)		(982)		53,782
Management fees to affiliate	4,964		4,835		4,223		14,089		12,740
Incentive compensation to affiliate	2,215		2,403		990		6,810		3,845
Total operating expenses	12,003		10,367		8,650		30,769		81,743
Income (Loss) Before Income Taxes, Preferred Dividends and Redemption Value Adjustment	35,777		31,180		31,282		97,097		25,794
Income tax expense	106		103		96		257		255
Net Income (Loss)	35,671		31,077		31,186		96,840		25,539
Preferred stock dividends and redemption value adjustment	3,682		1,813		(165)		6,403		762
Net Income (Loss) Attributable to Common Stockholders	$	31,989	$	29,264	$	31,351	$	90,437	$	24,777
Net Income (Loss) Per Share of Common Stock
Basic	$	0.57	$	0.53	$	0.56	$	1.63	$	0.44
Diluted	$	0.57	$	0.52	$	0.56	$	1.62	$	0.44
Weighted Average Number of Shares of Common Stock Outstanding
Basic	55,637,480		55,632,322		55,491,405		55,629,810		56,107,765
Diluted	56,011,243		55,907,086		55,632,170		55,883,197		56,187,461
Dividends Declared per Share of Common Stock	$	0.43	$	0.43	$	0.43	$	1.29	$	1.29

9

EX-99.2

KKR Real Estate Finance Trust Inc. Third Quarter 2021 Supplemental Information October 25, 2021

Legal Disclosures 2 This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the benefit of its stockholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR Real Estate Finance Trust Inc. and its subsidiaries (collectively, "KREF“ or the “Company”). This presentation is not and shall not be construed as an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities, any investment advice or any other service by KREF. Nothing in this presentation constitutes the provision of any tax, accounting, financial, investment, regulatory, legal or other advice by KREF or its advisors. This presentation may not be referenced, quoted or linked by website by any third party, in whole or in part, except as agreed to in writing by KREF. This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company’s current views with respect to, among other things, its future 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, in particular due to the uncertainties created by the COVID-19 pandemic, including the projected impact of COVID-19 on our business, financial performance and operating results. The forward-looking statements are based on the Company’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control. Such forward-looking statements are subject to various risks and uncertainties, including, among other things: the severity and duration of the COVID-19 pandemic; potential risks and uncertainties relating to the ultimate geographic spread of COVID-19; actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the potential negative impacts of COVID-19 on the global economy and the impacts of COVID-19 on the Company’s financial condition and business operations; deterioration in the performance of the properties securing our investments that may cause deterioration in the performance of our investments and, potentially, principal losses to us; difficulty or delays in redeploying the proceeds from repayments of our existing investments; the general political, economic and competitive conditions in the United States and in any foreign jurisdictions in which the Company invests; the level and volatility of prevailing interest rates and credit spreads; adverse changes in the real estate and real estate capital markets; general volatility of the securities markets in which the Company participates; changes in the Company’s business, investment strategies or target assets; difficulty in obtaining financing or raising capital; adverse legislative or regulatory developments; reductions in the yield on the Company’s investments and increases in the cost of the Company’s financing; acts of God such as hurricanes, earthquakes and other natural disasters, pandemics such as COVID-19, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/ or losses to the Company or the owners and operators of the real estate securing the Company’s investments; deterioration in the performance of properties securing the Company’s investments that may cause deterioration in the performance of the Company’s investments and, potentially, principal losses to the Company; defaults by borrowers in paying debt service on outstanding indebtedness; the adequacy of collateral securing the Company’s investments and declines in the fair value of the Company’s investments; adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise; difficulty in successfully managing the Company’s growth, including integrating new assets into the Company’s existing systems; the cost of operating the Company’s platform, including, but not limited to, the cost of operating a real estate investment platform and the cost of operating as a publicly traded company; the availability of qualified personnel and the Company’s relationship with our Manager; KKR controls the Company and its interests may conflict with those of the Company’s stockholders in the future; the Company’s qualification as a REIT for U.S. federal income tax purposes and the Company’s exclusion from registration under the Investment Company Act of 1940; authoritative GAAP or policy changes from such standard-setting bodies such as the Financial Accounting Standards Board, the Securities and Exchange Commission (the “SEC”), the Internal Revenue Service, the New York Stock Exchange and other authorities that the Company is subject to, as well as their counterparts in any foreign jurisdictions where the Company might do business; and other risks and uncertainties, including those described under Part I—Item 1A. “Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as such factors may be updated from time to time in the Company’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in this presentation. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this presentation and in the Company’s filings with the SEC. All forward looking statements in this presentation speak only as of October 25, 2021. KREF undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All financial information in this presentation is as of September 30, 2021 unless otherwise indicated. This presentation also includes non-GAAP financial measures, including Distributable Earnings and Distributable Earnings per Diluted Share. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with U.S. GAAP.

3 KKR Real Estate Finance Trust Inc. Overview Best In Class Portfolio Conservative Balance Sheet KREF’s Manager Fully Integrated with KKR $5.8 Billion Investment Portfolio 98% Senior Loans 71% Multifamily & Office $136 Million Average Loan Commitment(1) 98% Performing Purpose built portfolio of senior loans secured primarily by transitional, institutional multifamily and office properties owned by high quality sponsors. $6.7 Billion Financing Capacity 81% Fully Non-Mark-to-Market(2) Conservative liability management focused on diversified non-mark-to-market financing capacity 26% KKR Ownership in KREF $516 Million Current Liquidity(3) $429 Billion Global AUM(4) $24 Billion Balance Sheet(4) $33 Billion Real Estate AUM(4) (5) 130+ Real Estate Professionals(6) One firm culture that rewards investment discipline, creativity, determination and patience and emphasizes the sharing of information, resources, expertise and best practices (1) Average loan commitment is inclusive of the unfunded commitment. (2) Based on outstanding face amount of secured financing, including non-consolidated senior interests, and excludes convertible notes and the corporate revolving credit facility. 100% of financings are non-mark-to-capital markets marks. (3) Includes $307.7 million in cash, $185.0 million undrawn corporate revolver capacity, and $18.1 million of available borrowings based on existing collateral. (4) As of June 30, 2021. (5) Figures represent AUM across all KKR real estate transactions. (6) As of October 2021.

Third Quarter 2021 Highlights 4 • 3Q Net income(1) of $0.57 per diluted share and Distributable Earnings(2) of $0.62 per diluted share; 144% dividend coverage in 3Q • $6.4 million, or $0.09 per diluted share benefit from acceleration of loan and prepayment fees in connection with loan repayments • Book Value per Common Share(3) (“BVPS”) accretion for six consecutive quarters. BVPS of $19.09 per share, compared to $18.91 per share in 2Q’21. • $5.8 billion predominantly senior loan portfolio • Multifamily and office assets represent 71% of loan portfolio • Weighted average risk rating of 3.0 and collected 97.4% of interest payments due on loan portfolio • Received $934.9 million in loan repayments • Originated eight floating-rate senior loans totaling $1.5 billion with $1.1 billion of initial fundings • Subsequent to quarter-end, originated three floating-rate senior loans totaling $333.3 million Note: Net income attributable to common stockholders per share and Distributable Earnings per share are based on diluted weighted average shares outstanding for the quarter ended September 30, 2021; book value per share is based on common shares outstanding as of September 30, 2021. (1) Represents Net Income attributable to common stockholders. (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. (3) Book value per share includes the year-to-date (“YTD”) impact of a ($0.7) million, or ($0.01) per common share, non-cash redemption value adjustment to our redeemable Special Non-Voting Preferred Stock (‘SNVPS’), resulting in a cumulative (since issuance of the SNVPS) decrease of $2.6 million to our book value as of September 30, 2021. Financials Portfolio Originations Liquidity & Capitalization • Closed a $1.30 billion managed CLO with two-year reinvestment period providing $1.1 billion of non-mark-to-market financing equating to a 84.25% advance rate and a weighted average cost of capital of L+1.30%, before transaction costs. Concurrently, repaid $767.0 million of outstanding notes on the 2018 CLO. • Entered into a new $500.0 million term lending agreement, which provides asset-based financing on a non-mark-to-market basis with matched term up to five years • $516.2 million of available liquidity, including $307.7 million of cash, and $185.0 million undrawn on the corporate revolver • 81% of financing is fully non-mark-to-market and the remaining balance is only mark-to-credit

3Q'21 Financial Summary 5 (1) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. (2) Represents the GAAP principal amount on senior and mezzanine/other loans, and net equity in RECOP I. (3) Represents (i) total debt less cash to (ii) total permanent equity. The debt-to-equity ratio, adjusted for the impact of CECL allowance for credit losses, is 1.7x at 3Q'21. (4) Represents (i) total leverage less cash to (ii) total permanent equity. The total leverage ratio, adjusted for the impact of CECL allowance for credit losses, is 3.2x at 3Q'21. (5) Book value per share includes (i) CECL credit loss allowance of ($59.7) million or ($1.07) per common share, and (iii) the YTD impact of ($0.7) million, or ($0.01) per common share, non-cash redemption value adjustment to our redeemable SNVPS, resulting in a cumulative (since issuance of the SNVPS) decrease of $2.6 million to our book value as of September 30, 2021. Income Statement Balance Sheet ($ in Millions) ($ in Millions)3Q21 Net Interest Income $45.5 Other Income 2.3 Operating Expenses and Other (10.9) Preferred stock dividends and redemption value adjustment (3.7) Provision for credit losses (1.2) Net Income Attributable to Common Stockholders $32.0 Weighted Average Shares Outstanding, Diluted 56,011,243 Net Income per Share, Diluted $0.57 Distributable Earnings(1) $34.5 Distributable Earnings per Share, Diluted(1) $0.62 Dividend per Share $0.43 3Q21 Total Portfolio $5,513.7(2) Term Credit Facilities 847.0 Term Lending Agreements 1,008.3 Asset Specific Financing 60.0 Revolving Credit Facility 150.0 Secured Term Loan 297.8 Convertible Notes 143.8 Total Debt $2,506.9 Term Loan Facility 904.1 Collateralized Loan Obligations 1,095.3 Total Leverage $4,506.3 Cash 307.7 Total Permanent Equity 1,234.6 Common Stockholders’ Equity 1,062.1 Debt-to-Equity Ratio(3) 1.8x Total Leverage Ratio(4) 3.4x Shares Outstanding 55,637,480 Book Value per Share(5) $19.09

$18.73 $18.91 $19.09 $1.16 $1.05 $1.07 3Q'20 2Q'21 3Q'21 BVPS Post-CECL CECL Impact $19.89 Recent Operating Performance 6 (1) Represents Net Income attributable to common stockholders. (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. Net Income(1) and Distributable Earnings(2) $0.56 $0.52 $0.57 $0.58 $0.54 $0.62 3Q'20 2Q'21 3Q'21 Net Income per Diluted Share Distributable Earnings per Diluted Share Dividends and Book Value Per Share Dividend per share: Dividend yield on book value per share: Net income: Distributable earnings: 3Q'20 $31.4 $32.5 2Q'21 $29.3 $30.4 3Q'21 $32.0 $34.5 3Q'20 $0.43 9.2% 3Q'21 $0.43 9.0% 2Q'21 $0.43 9.1% $20.16$19.96 ($ in Millions) $0.43

67% 99% 98% 6% 27% 0% 20% 40% 60% 80% 100% At IPO 3Q'20 3Q'21 Senior Loan Non-Senior/ Other Loan Securities <2%<1% Conservative Portfolio Construction 7 $62 $148 $136 $0 $50 $100 $150 At IPO 3Q'20 3Q'21 Average Loan Commitment(1) 62% 83% 71% 31% 8% 8% 0% 20% 40% 60% 80% 100% At IPO 3Q'20 3Q'21 Multifamily and Office Hospitality and Retail 23% 9% 17% 0% 5% 10% 15% 20% 25% At IPO 3Q'20 3Q'21 Investment Portfolio Property Type Future Funding as a Percentage of Total Commitments ($ in Millions) Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine/other loans. (1) Average loan commitment is inclusive of the unfunded commitment.

$5,035 $4,998 $5,330 $5,618 $5,618 $5,618 $5,826 $5,826 $462 $498 $472 $576 $454 $559 $848 $1,143 $1,225 $535 $244 $271 $935 3Q'20 Portfolio 4Q'20 Fundings 4Q'20 Repayments 4Q'20 Portfolio 1Q'21 Fundings 1Q'21 Repayments 1Q'21 Portfolio 2Q'21 Fundings 2Q'21 Repayments 2Q'21 Portfolio 3Q'21 Fundings 3Q'21 Repayments 3Q'21 Portfolio(3) Last Twelve Months Loan Activity 8 (1) Includes capital committed to our investment in an aggregator vehicle that invests in CMBS. (2) Future funding obligations are generally contingent upon certain events and may not result in investment by us. (3) Includes $0.4 million, $0.5 million, $0.8 million and $1.9 million PIK interest for 3Q'21, 2Q'21, 1Q'21 and 4Q'20, respectively. Portfolio Funding Activity – Outstanding Principal(1) $5,470 Future Funding Obligations(2) $5,497 (3) $5,784 ($ in Millions) $6,466 (3) (3) $7,051

3Q’21 Loan Originations – Case Studies 9 Investment Mountain View Office Brisbane Life Science Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $250.0 million(1) $95.0 million Location Mountain View, CA Brisbane, CA Collateral Five Class-A Office Buildings totaling 446k SF Class-A Life Science and Office totaling 114k SF Loan Purpose Acquisition Refinance LTV(2) 73% 71% Investment Date July 2021 July 2021 Asset Photos (1) The total whole loan facility is $362.8 million, co-originated and co-funded by KREF and a KKR affiliate. KREF’s interest was 69% of the loan or $250.0 million. (2) LTV is generally based on initial loan amount divided by the as-is appraised value as of the date the loan was originated.

3Q’21 Loan Originations – Case Studies 10 Investment Multifamily Portfolio Bronx Industrial Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $68.2 million $228.8 million(1) Location Plano, TX Arlington, TX Bronx, NY Collateral 360-unit Class-A Multifamily Portfolio Class-A Industrial Facility totaling 1.4 million RSF Loan Purpose Acquisition Construction LTV(2) 70% 52% Investment Date August 2021 August 2021 Asset Photos (1) The total whole loan facility is $381.2 million, co-originated and co-funded by KREF and a KKR affiliate. KREF’s interest was 60% of the loan or $228.8 million. (2) LTV is generally based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. Representative Photo

3Q’21 Loan Originations – Case Studies 11 Investment Bellevue Office Denver Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $260.4 million(1) $70.3 million Location Bellevue, WA Denver, CO Collateral Class-A Office totaling 609k SF 242-unit Class-A Multifamily Loan Purpose Construction Acquisition LTV(2) 63% 78% Investment Date September 2021 September 2021 Asset Photos (1) The total whole loan facility is $520.8 million, co-originated and co-funded by KREF and a KKR affiliate. KREF’s interest was 50% of the loan or $260.4 million. (2) LTV is generally based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. Representative Photo

3Q’21 Loan Originations – Case Studies 12 Investment Hospitality Portfolio Arlington Multifamily Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Loan Size $168.1 million $381.0 million Location The Woodlands, TX Arlington, VA Collateral 909-key Full Service Hotel Portfolio 912-unit Class-B+ and 198-unit Class-A Multifamily Loan Purpose Acquisition Refinance LTV(1) 64% 69% Investment Date September 2021 September 2021 Asset Photos (1) LTV is generally based on initial loan amount divided by the as-is appraised value as of the date the loan was originated.

Multifamily 44% Office 27% Life Science 7% Hospitality 6% Industrial 5% Condo (Residential) 4% Student Housing 3% Retail 2% Single Family Rental <1% Floating 99.9% Fixed 0.1% Senior Loans 99.1% Mezz/Other 0.9% Class-A 84% Class-B 16% Multifamily Class-A 89% Class-B 11% KREF Loan Portfolio by the Numbers 13 Geography(2) Investment Type(3) Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. (1) As of October 22, 2021. (2) Map excludes $5.5 million Midwest Mezzanine portfolio and $31.6 million real estate corporate loan. (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous junior participations in senior loans where KREF has financed a loan with structural leverage through the non-recourse sale of a corresponding first mortgage and excludes vertical loan syndications. (4) KREF classifies 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. (5) Office property certification % is based on current principal loan balance. See description for LEED certification in the appendix. Property Type Interest Rate Type $1,812 $3,383 $5,221 $5,035 $5,826 3Q'17 3Q'18 3Q'19 3Q'20 3Q'21 Total Portfolio Growth Current Portfolio: $6.0 billion(1) Including net funding and repayment activity subsequent to quarter-end 13% 9% 5% 7% 5% 13% 13% 12% Other <5%, 16% ($ in Millions) 7% (4) 82% Office(5)

0% 9% 82% 7% 1 2 3 4 5 0% 4% 87% 7% 2% 1 2 3 4 5 Portfolio Credit Quality Remains Strong • Collected 97.4% of interest payments due on loan portfolio and 100% on loans rated 4 or better 14 Loan-to-Value(1,2) Risk Rating Distribution Weighted Average Risk Rating(3): 3.1 Weighted Average LTV(3): 67% (1) LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value, except as noted on page 22. (2) Includes non-consolidated senior interests and excludes vertical loan syndications, real estate corporate loan, and a non—performing 5-rated loan that was placed on non-accrual status in October 2020 and is currently in restructuring discussions. (3) Weighted average is weighted by current principal amount. (% of total loan portfolio) (% of loan portfolio) 3Q'21 Loan Count 0 23 443 Loan Count 0 21 442 2Q'21 3Q'21 2Q'21 Weighted Average LTV(3): 67% Weighted Average Risk Rating(3): 3.0 16% 21% 24% 29% 10% 0% - 60% 60% - 65% 65% - 70% 70% - 75% 75% - 80% 12% 27% 20% 29% 12% 0% - 60% 60% - 65% 65% - 70% 70% - 75% 75% - 80% 2%

Case Studies: Watch List Loans(1) (Risk Rating 4 & 5) 15 Investment Portland Retail(2) New York Condo Brooklyn Hotel Queens Industrial New York Condo Loan Type Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Investment Date October 2015 December 2018 January 2019 July 2017 August 2017 Collateral 1.1M Square Foot Retail Center 126-Unit Class-A Residential Condominium 196-Key Hotel Two Class–B Buildings Totaling 595k RSF 7 Luxury Residential Condominiums Loan Purpose Refinance Acquisition Refinance Acquisition Refinance Location Portland, OR New York, NY Brooklyn, NY Queens, NY New York, NY Committed Amount $110 million $235 million $77 million $70 million $42 million Current Principal Amount $110 million $207 million $77 million $67 million $42 million Loan Basis $101 / SF $1,292 / SF $393k / key $111 / SF $1,343 / SF Coupon (2) L + 3.6% L + 2.9% L + 3.0% L + 4.2% LTV(3) (4) 71% 69% 77% 73% Max Remaining Term (Yrs.) 0.0 2.3 2.4 0.9 0.5 Loan Risk Rating 5 4 4 4 4 (1) Excludes $5.5 million mezzanine loan risk-rated 5. (2) Loan was placed on non-accrual status in October 2020, and has a $40.3 million CECL reserve as of September 30, 2021. (3) LTV is based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value. (4) The Portland retail loan is a non-performing 5-rated loan that was placed on non-accrual status in October 2020 and is currently in restructuring discussions.

1.7x 3.2x 0.1x 0.2x Debt-to-Equity Ratio Total Leverage Ratio CECL Impact Pre-CECL Financing Overview: 81% Non-Mark-To-Market • Diversified financing sources totaling $6.7 billion with $2.2 billion of undrawn capacity 16 (1) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions. (2) Secured term loan is open for repricing following its first anniversary. (3) Represents (i) total outstanding debt agreements (excluding non-recourse term loan facility), secured term loan and convertible notes, less cash to (ii) total permanent equity, in each case, at period end. (4) Represents (i) total outstanding debt agreements, secured term loan, convertible notes, and collateralized loan obligation, less cash to (ii) total permanent equity, in each case, at period end. (5) Based on outstanding face amount of secured financing, including non-consolidated senior interests, which result from non-recourse sales of senior loan interest in loans KREF originated, and excludes convertible notes and the corporate revolving credit facility. Maximum Capacity Outstanding Face Amount Weighted Avg. Coupon Advance Rate Non- MTM Term Credit Facilities $1,840 $847 L+1.7% 66.7% (1) Term Lending Agreements $1,213 $1,008 L+1.8% 82.1%  Warehouse Facility $500 $0 n/a n/a  Asset Specific Financing $300 $60 L+1.7% 78.9%  Secured Term Loan $298 $298 L+4.8%(2) -  Convertible Notes $144 $144 6.1% -  Corporate Revolving Credit Facility $335 $150 L+2.0% -  Total Corporate Obligations $4,630 $2,507 Term Loan Facility $1,000 $904 L+1.6% 82.0%  Collateralized Loan Obligations $1,095 $1,095 L+1.3% 84.3%  Total Leverage $6,725 $4,506 ($ in Millions) Summary of Outstanding Financing Leverage Ratios Outstanding Secured Financing(5) Non-Mark- to-Market 81% (3) (4) 1.8x 3.4x Collateralized Loan Obligations 24% Term Lending Agreements 22%Term Loan Facility 20% Senior Loan Interests 7% Secured Term Loan 7% Asset Specific Financing 1% Term Credit Facilities 19%

Financing Overview: Term Credit Facilities 17 Counterparty Total / Weighted Average Drawn $495 $260 $92 $847 Capacity $1,000 $600 $240 $1,840 Collateral: Loans / Principal Balance 7 Loans / $753 5 Loans / $360 5 Loans / $157 17 Loans / $1,270 Final Stated Maturity(1) September 2026 December 2022 October 2023 - Weighted Average Pricing L + 1.4% L + 2.0% L + 2.4% L + 1.7% Weighted Average Advance 65.7% 72.2% 58.9% 66.7% Mark-to-market Credit Only Credit Only Credit Only - Property Type(2): ($ in Millions) Office 37% Multi- family 33% Industrial 17% Student Housing 7% Retail 2% Condo 2% Single Family Rental 1% Life Science 1% (1) Based on extended maturity date. (2) Based on principal balance of financing.

Liquidity Overview $307.7 $185.0 $18.1 $5.4 $516.2 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 Cash Undrawn Corporate Revolver Approved and Undrawn Credit Capacity Loan Repayment Receivable Total Available Liquidity(2) 18 ($ in Millions) (1) Represents under-levered amounts under financing facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender’s consent is required for us to (re)borrow these amounts. (2) Represents net proceeds from loan repayment held by the servicer as of September 30, 2021. Such amount was remitted to KREF in October. (1) Sources of Available Liquidity • In addition to the available liquidity below, KREF had $373.7 million of unencumbered senior loans that can be pledged to financing facilities subject to lender approval, as of September 30, 2021.

Portfolio Benefits from Attractive in the Money LIBOR Floors 19 • 99.9% of the loan portfolio is indexed to one-month USD LIBOR • Portfolio benefits from current low rate environment given in-place LIBOR floors  50% of the portfolio is subject to a LIBOR floor of at least 0.75%  Portfolio weighted average LIBOR floor of 1.00%  Only 11% of total outstanding financing, including the Secured Term Loan, is subject to a LIBOR floor greater than 0.0% Net Interest Income Per Share Quarterly Sensitivity to LIBOR 0.25% LIBOR as of 9/30/2021 ($ Impact Per Share / Q) 0.50% 0.75% 1.00%0.08% $0.00 LIBOR LIBOR = 0.00%

Appendix 20

# Investment Location Property Type Investment Date Total Whole Loan(2) Committed Principal Amount(2) Current Principal Amount Net Equity(3) Future Funding(4) Coupon(5)(6) Max Remaining Term (Yrs)(5)(7) Loan Per SF / Unit / Key LTV(5)(8) Risk Rating Senior Loans(1) 1 Senior Loan Arlington, VA Multifamily 9/30/2021 381.0 381.0 352.9 78.7 28.1 L + 3.2% 5.0 $ 317,965 / unit 69% 3 2 Senior Loan Bellevue, WA Office 9/13/2021 520.8 260.4 47.3 12.6 213.1 L + 3.6% 5.5 $ 155 / SF 63% 3 3 Senior Loan Los Angeles, CA Multifamily 2/19/2021 260.0 260.0 248.0 48.9 12.0 L + 3.6% 4.4 $ 462,687 / unit 68% 3 4 Senior Loan Boston, MA Life Science 5/24/2018 250.5 250.5 237.0 48.8 13.5 L + 3.2% 2.3 $ 507 / SF 53% 2 5 Senior Loan Mountain View, CA Office 7/14/2021 362.8 250.0 182.0 43.7 68.0 L + 3.3% 4.9 $ 592 / SF 73% 3 6 Senior Loan New York, NY Condo (Resi) 12/20/2018 234.5 234.5 206.9 36.0 27.6 L + 3.6% 2.3 $ 1,292 / SF 71% 4 7 Senior Loan Bronx, NY Industrial 8/27/2021 381.2 228.7 93.9 92.1 134.8 L + 4.1% 4.9 $ 114 / SF 52% 3 8 Senior Loan Various Multifamily 5/31/2019 216.5 216.5 214.9 37.1 1.6 L + 3.1% 2.7 $ 200,802 / unit 74% 3 9 Senior Loan(9) Various Industrial 6/30/2021 425.0 212.5 1.7 (0.5) 210.8 L + 5.4% 4.8 $ 14 / SF 76% 3 10 Senior Loan Minneapolis, MN Office 11/13/2017 194.4 194.4 194.4 33.2 - L + 3.8% 1.2 $ 179 / SF 65% 2 11 Senior Loan Boston, MA Office 2/4/2021 375.0 187.5 187.5 37.3 - L + 3.3% 4.4 $ 506 / SF 71% 3 12 Senior Loan Chicago, IL Multifamily 6/6/2019 186.0 186.0 179.5 32.3 3.6 L + 3.6% 2.7 $ 364,837 / unit 72% 3 13 Senior Loan Denver, CO Multifamily 8/13/2019 185.0 185.0 185.0 41.5 - L + 2.8% 2.9 $ 311,448 / unit 54% 3 14 Senior Loan The Woodlands, TX Hospitality 9/15/2021 183.3 183.3 168.1 166.7 15.2 L + 4.2% 5.0 $ 184,917 / key 64% 3 15 Senior Loan Philadelphia, PA Office 4/11/2019 182.6 182.6 155.6 23.3 27.0 L + 2.6% 2.6 $ 218 / SF 68% 3 16 Senior Loan Washington, D.C. Office 12/20/2019 175.5 175.5 109.9 26.6 65.6 L + 3.4% 3.3 $ 538 / SF 58% 3 17 Senior Loan Chicago, IL Office 7/15/2019 170.0 170.0 133.7 22.9 36.3 L + 3.3% 2.9 $ 129 / SF 59% 3 18 Senior Loan Boston, MA Life Science 4/27/2021 332.3 166.2 105.9 15.9 60.3 L + 3.6% 4.6 $ 440 / SF 66% 3 19 Senior Loan Philadelphia, PA Office 6/19/2018 165.0 165.0 165.0 71.5 - L + 2.5% 1.8 $ 169 / SF 71% 3 20 Senior Loan New York, NY Multifamily 12/5/2018 163.0 163.0 148.0 22.4 15.0 L + 2.6% 2.2 $ 556,391 / unit 77% 3 21 Senior Loan Oakland, CA Office 10/23/2020 509.9 159.7 99.5 15.7 9.4 L + 4.3% 4.1 $ 306 / SF 65% 3 22 Senior Loan Plano, TX Office 2/6/2020 153.7 153.7 127.4 31.6 26.3 L + 2.7% 3.4 $ 177 / SF 63% 3 23 Senior Loan Boston, MA Multifamily 3/29/2019 138.0 138.0 137.0 56.7 1.0 L + 2.7% 2.5 $ 351,282 / unit 63% 3 24 Senior Loan West Palm Beach, FL Multifamily 11/7/2018 135.0 135.0 133.4 21.9 1.6 L + 2.9% 2.1 $ 164,321 / unit 67% 3 25 Senior Loan Fort Lauderdale, FL Hospitality 11/9/2018 130.0 130.0 130.0 24.3 - L + 3.4% 2.2 $ 375,723 / key 66% 3 26 Senior Loan Fontana, CA Industrial 5/11/2021 119.9 119.9 42.7 13.4 77.2 L + 4.6% 4.7 $ 36 / SF 64% 3 27 Senior Loan Irving, TX Multifamily 4/22/2021 117.6 117.6 107.0 17.7 10.6 L + 3.3% 4.6 $ 117,836 / unit 70% 3 28 Senior Loan Pittsburgh, PA Student Housing 6/8/2021 112.5 112.5 112.5 16.8 - L + 2.9% 4.7 $ 155,602 / bed 74% 3 29 Senior Loan(10) Portland, OR Retail 10/26/2015 109.6 109.6 109.6 89.6 - L + 5.5% 0.0 $ 101 / SF n/a 5 30 Senior Loan San Diego, CA Multifamily 2/3/2020 102.3 102.3 102.3 14.9 - L + 3.3% 3.4 $ 442,965 / unit 71% 3 31 Senior Loan Denver, CO Industrial 12/11/2020 95.8 95.8 52.8 15.5 43.0 L + 3.8% 4.3 $ 35 / SF 61% 3 32 Senior Loan Brisbane, CA Life Science 7/22/2021 95.0 95.0 84.9 16.1 10.1 L + 3.0% 4.9 $ 733 / SF 71% 3 33 Senior Loan State College, PA Student Housing 10/15/2019 93.4 93.4 82.1 24.3 11.3 L + 2.7% 3.1 $ 68,782 / bed 64% 3 34 Senior Loan Seattle, WA Multifamily 9/7/2018 92.3 92.3 92.3 16.0 - L + 3.4% 1.9 $ 515,571 / unit 76% 3 35 Senior Loan Denver, CO Multifamily 6/24/2021 88.5 88.5 88.5 16.1 - L + 3.0% 4.8 $ 295,000 / unit 77% 3 36 Senior Loan Dallas, TX Office 1/22/2021 87.0 87.0 87.0 21.0 - L + 3.3% 4.4 $ 288 / SF 65% 3 37 Senior Loan New York, NY Multifamily 3/29/2018 86.0 86.0 86.0 13.2 - L + 4.0% 1.5 $ 462,366 / unit 63% 2 38 Senior Loan Seattle, WA Office 3/20/2018 80.7 80.7 80.7 13.3 - L + 4.1% 1.5 $ 468 / SF 56% 3 39 Senior Loan Austin, TX Multifamily 12/4/2020 80.0 80.0 78.7 12.5 1.3 L + 3.7% 3.2 $ 201,695 / unit 77% 3 40 Senior Loan Mesa, AZ Industrial 5/4/2021 77.8 77.8 43.2 17.2 34.6 L + 3.2% 4.6 $ 50 / SF 55% 3 41 Senior Loan Brooklyn, NY Hospitality 1/18/2019 77.0 77.0 77.0 16.9 - L + 2.9% 2.4 $ 392,879 / key 69% 4 42 Senior Loan Phoenix, AZ Single Family Rental 4/22/2021 72.1 72.1 12.8 5.0 59.3 L + 4.8% 4.6 $ 27,785 / unit 50% 3 43 Senior Loan Arlington, VA Multifamily 10/23/2020 141.8 70.9 70.9 11.4 - L + 3.8% 4.0 $ 392,898 / unit 73% 3 44 Senior Loan Denver, CO Multifamily 9/14/2021 70.3 70.3 69.3 12.0 1.0 L + 2.7% 5.0 $ 286,157 / unit 78% 3 45 Senior Loan Queens, NY Industrial 7/21/2017 70.1 70.1 67.1 17.0 3.0 L + 3.0% 0.9 $ 111 / SF 77% 4 46 Senior Loan Washington, D.C. Multifamily 12/4/2020 69.0 69.0 66.3 10.3 2.7 L + 3.5% 4.2 $ 265,132 / unit 63% 3 47 Senior Loan Dallas, TX Multifamily 8/18/2021 68.2 68.2 68.2 9.6 - L + 3.8% 4.9 $ 189,444 / unit 70% 3 48 Senior Loan Austin, TX Multifamily 9/12/2019 67.5 67.5 67.5 10.4 - L + 2.5% 2.9 $ 191,218 / unit 74% 3 49 Senior Loan New York, NY Condo (Resi) 8/4/2017 42.4 42.4 42.4 27.8 - L + 4.2% 0.5 $ 1,343 / SF 73% 4 Total / Weighted Average $8,527.8 $7,014.9 $5,736.3 $1,479.2 $1,224.9 L + 3.3% 3.3 67% 3.0 Non-Senior Loans 1 Floating Rate Mezzanine Westbury, NY Multifamily 1/27/2020 17.0 17.0 17.0 16.9 - L + 9.0% 2.8 $ 451,477 / unit 64% 3 2 Fixed Rate Mezzanine(12) Various Retail 6/19/2015 5.5 5.5 5.5 0.9 - 11.0% 3.8 $ 45 / SF n/a 5 3 Real Estate Corporate Loan(13) n/a Multifamily 12/11/2020 79.1 31.6 31.6 31.0 - L + 12.0% 4.2 n/a n/a 3 Total / Weighted Average $101.6 $54.1 $54.1 $48.8 $0.0 12.3% 3.7 n/a 3.2 CMBS Total / Weighted Average $40.0 $35.7 $35.7 $4.3 4.8% 7.7 58% Portfolio Total / Weighted Average $7,109.0 $5,826.1 $1,563.7 $1,229.2 4.3% 3.3 67% 3.0 3Q21 Outstanding Portfolio(14) $5,826.1 Portfolio Details 21 *See footnotes on subsequent page (11)

Portfolio Details (1) Senior loans include senior mortgages and similar credit quality investments, including junior participations in our originated senior loans for which we have syndicated the senior participations and retained the junior participations for our portfolio and excludes vertical loan syndications. • For Senior Loan 11, the total whole loan is $375.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF’s interest was 50% of the loan or $187.5 million, of which a $150.0 million senior note was syndicated to a third party lender. Post syndication, KREF retained a mezzanine loan with a total commitment of $37.5 million, fully funded as of September 30, 2021, at an interest rate of L + 7.9%. • For Senior Loan 12, the total whole loan is $186.0 million, of which an $81.6 million senior note was syndicated to a third party lender. Post syndication, KREF retained the mezzanine loan and a 45% interest in the senior loan which both totaled $104.4 million commitment, of which $100.7 million was funded as of September 30, 2021, at a blended interest rate of L + 4.7%. • For Senior Loan 21, the total whole loan is $509.9 million, co-originated and co-funded by KREF and a KKR affiliate. KREF’s interest was 31% of the loan or $159.7 million, of which $134.7 million in senior notes were syndicated to third party lenders. Post syndication, KREF retained a mezzanine loan with a total commitment of $25.0 million, of which $15.6 million was funded as of September 30, 2021, at an interest rate of L + 12.9%. (2) Total Whole Loan represents total commitment of the entire whole loan originated. Committed Principal Amount includes participations by KKR affiliated entities and third parties that are syndicated/sold. (3) Net equity reflects (i) the amortized cost basis of our loans, net of borrowings and (ii) the cost basis of our investment in RECOP I. (4) Represents Committed Principal Amount less Current Principal Amount on Senior Loans and $4.3 million of unfunded commitment to RECOP I. (5) Weighted averages are weighted by current principal amount for senior loans and non-senior loans and by net equity for our RECOP I CMBS B-Piece investment. Senior Loan 29 and Non-Senior Loans 2 and 3 are excluded from the weighted average LTV. (6) L = one-month USD LIBOR rate; greater of (i) spot one-month USD LIBOR rate of 0.08% and (ii) LIBOR floor, where applicable, included in portfolio-wide averages represented as fixed rates. (7) Max remaining term (years) assumes all extension options are exercised, if applicable. (8) For senior loans, loan-to-value ratio ("LTV") LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value; for Senior Loan 6, LTV is based on the initial loan amount divided by the appraised bulk sale value assuming a condo-conversion and no renovation; for Senior Loan 49, LTV is based on the current principal amount divided by the adjusted appraised gross sellout value net of sales cost; for mezzanine loans, LTV is based on the current balance of the whole loan dividend by the as-is appraised value as of the date the loan was originated; for RECOP I CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance; for Senior Loans 2, 7, 9, 26, 31, 40, 42 and Mezzanine Loan 1, 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. Senior Loan 29 is a non—performing 5-rated loan that was placed on non-accrual status in October 2020. The loan is currently in restructuring discussions. (9) For Senior Loan 9, the total whole loan facility is $425.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF’s interest was 50% of the facility or $212.5 million. The facility is comprised of individual cross-collateralized whole loans. As of September 30, 2021, there was one underlying senior loan in the facility with a commitment of $10.4 million and outstanding principal of $1.7 million. (10) Senior Loan 29 was placed on non-accrual status in October 2020. The loan has a $40.3 million CECL reserve as of September 30, 2021. The loan is currently in restructuring discussions. (11) For Senior Loan 49, Loan per SF of $1,343 is based on the allocated loan amount of the residential units. Excluding the value of the retail and parking components of the collateral, the Loan per SF is $1,894 based on allocating the full amount of the loan to only the residential units. (12) For Non-Senior Loan 1, Current Principal Amount is gross of $4.7 million written-off (of amortized cost). (13) Non-Senior Loan 3 is a real estate corporate loan to a multifamily operator. (14) Represents Current Principal Amount of Senior Loans and Non-Senior Loans and Net Equity for our RECOP I CMBS B-Piece equity method investment. 22

Fully Extended Loan Maturities 23 Fully Extended Loan Maturities(1) ($ in Millions) (1) Excludes RECOP I CMBS B-Piece investment. • Fully extended weighted average loan maturity of 3.3 years(1) $152.0 $261.5 $835.4 $1,772.0 $613.5 $2,108.9 $47.3 $0 $500 $1,000 $1,500 $2,000 $2,500 2021 2022 2023 2024 2025 2026 2027

24 Consolidated Balance Sheets (1) Includes $8.2 million and $15.9 million of loan repayment proceeds held by the servicer and receivable by KREF, as of September 30, 2021 and December 31, 2020, respectively. (2) Includes $0.9 million of expected loss reserve for unfunded loan commitments as of September 30, 2021 and December 31, 2020. (in thousands - except share and per share data) September 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 307,731 $ 110,832 Commercial real estate loans, held-for-investment 5,442,734 4,844,534 Less: Allowance for credit losses (58,807) (59,801) Commercial real estate loans, held-for-investment, net 5,383,927 4,784,733 Equity method investments 34,809 33,651 Accrued interest receivable 13,924 15,412 Other assets(1) 13,107 20,984 Total Assets $ 5,753,498 $ 4,965,612 Liabilities and Equity Liabilities Secured financing agreements, net $ 2,960,833 $ 2,574,747 Collateralized loan obligations, net 1,086,900 810,000 Secured term loan, net 287,051 288,028 Convertible notes, net 141,502 140,465 Loan participations sold, net - 66,232 Dividends payable 24,285 24,287 Accrued interest payable 7,495 5,381 Due to affiliates 5,190 6,243 Accounts payable, accrued expenses and other liabilities (2) 3,065 4,823 Total Liabilities 4,516,321 3,920,206 Commitments and Contingencies - - Temporary Equity Redeemable preferred stock 2,589 1,852 Permanent Equity Preferred Stock, 50,000,000 shares authorized Preferred stock, $0.01 par value (1 share issued and outstanding as of September 30, 2021 and December 31, 2020) - - Series A cumulative redeemable preferred stock, $0.01 par value, (6,900,000 and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; liquidation preference of $25.00 per share) 69 - Common stock, $0.01 par value, 300,000,000 authorized (59,537,806 and 59,519,754 shares issued; 55,637,480 and 55,619,428 shares outstanding as of September 30, 2021 and December 31, 2020, respectively) 556 556 Additional paid-in capital 1,341,986 1,169,695 Accumulated deficit (47,024) (65,698) Repurchased stock (3,900,326 shares repurchased as of September 30, 2021 and December 31, 2020) (60,999) (60,999) Total KKR Real Estate Finance Trust Inc. stockholders’ equity 1,234,588 1,043,554 Total Permanent Equity 1,234,588 1,043,554 Total Liabilities and Equity $ 5,753,498 $ 4,965,612

25 Consolidated Statements of Income (in thousands - except share and per share data) September 30, 2021 June 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Net Interest Income Interest income $ 75,320 $ 67,149 $ 67,689 $ 207,235 $ 205,987 Interest expense 29,832 26,958 28,832 84,173 98,477 Total net interest income 45,488 40,191 38,857 123,062 107,510 Other Income Income (loss) from equity method investments 2,162 1,256 973 4,508 (631) Other income 130 100 102 296 658 Total other income (loss) 2,292 1,356 1,075 4,804 27 Operating Expenses General and administrative 3,659 3,688 3,563 10,852 11,376 Provision for (reversal of) credit losses, net 1,165 (559) (126) (982) 53,782 Management fees to affiliate 4,964 4,835 4,223 14,089 12,740 Incentive compensation to affiliate 2,215 2,403 990 6,810 3,845 Total operating expenses 12,003 10,367 8,650 30,769 81,743 Income (Loss) Before Income Taxes, Preferred Dividends and Redemption Value Adjustment 35,777 31,180 31,282 97,097 25,794 Income tax expense 106 103 96 257 255 Net Income (Loss) 35,671 31,077 31,186 96,840 25,539 Preferred Stock dividends and redemption value adjustment 3,682 1,813 (165) 6,403 762 Net Income (Loss) Attributable to Common Stockholders $ 31,989 $ 29,264 $ 31,351 $ 90,437 $ 24,777 Net Income (Loss) Per Share of Common Stock, Basic $ 0.57 $ 0.53 $ 0.56 $ 1.63 $ 0.44 Net Income (Loss) Per Share of Common Stock, Diluted $ 0.57 $ 0.52 $ 0.56 $ 1.62 $ 0.44 Weighted Average Number of Shares of Common Stock Outstanding, Basic 55,637,480 55,632,322 55,491,405 55,629,810 56,107,765 Weighted Average Number of Shares of Common Stock Outstanding, Diluted 56,011,243 55,907,086 55,632,170 55,883,197 56,187,461 Dividends Declared per Share of Common Stock $ 0.43 $ 0.43 $ 0.43 $ 1.29 $ 1.29 Three Months Ended Nine Months Ended

Reconciliation of GAAP Net Income to Distributable Earnings 26 (1) Includes $0.3 million, ($0.2) million, and ($0.3) million non-cash redemption value adjustment of our SNVPS during 3Q'21, 2Q'21 and 3Q'20, respectively. (2) Includes ($1.0) million, ($0.1) million, and $0.1 million of unrealized loss (gain) on RECOP I, an equity method investment, during 3Q'21, 2Q'21,and 3Q'20, respectively. (3) The Company has a $40.3 million, or $0.72 per share, allowance for credit losses against one 5-rated retail loan with an outstanding principal balance of $109.6 million as of September 30, 2021. Such unrealized loss has not been reflected in distributable earnings. (in thousands - except share and per share data) September 30, 2021 June 30, 2021 September 30, 2020 Net Income (Loss) Attributable to Common Stockholders 31,989$ 29,264$ 31,351$ Adjustments Non-cash equity compensation expense 2,027 1,994 1,390 Unrealized (gains) or losses(1)(2) (748) (364) (178) Provision for (Reversal of) credit losses, net 1,165 (559) (126) Non-cash convertible notes discount amortization 91 90 91 Distributable Earnings(3) 34,524$ 30,425$ 32,528$ Weighted Average Shares Outstanding Basic 55,637,480 55,632,322 55,491,405 Diluted 56,011,243 55,907,086 55,632,170 Distributable Earnings per Weighted Average Share, Basic(3) 0.62$ 0.55$ 0.59$ Distributable Earnings per Weighted Average Share, Diluted(3) 0.62$ 0.54$ 0.58$ Three Months Ended

Key Definitions 27 “Distributable Earnings": Commencing for all periods ending on or after December 31, 2020, the Company has elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental basis to KREF’s net income as determined in accordance with GAAP as the Company believes it would be useful to investors in evaluating the Company’s operating performance and its ability to pay its dividends. Distributable Earnings replaces the Company’s prior presentation of Core Earnings, and Core Earnings presentations from prior reporting periods have been recast as Distributable Earnings. The Company defines Distributable Earnings as net income (loss) attributable to stockholders or, without duplication, owners of the Company's 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 the Company’s Manager and board of directors and after approval by a majority of the 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 the Company forecloses upon the property or properties underlying such debt investments. While Distributable Earnings excludes the impact of the unrealized current provision for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is 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) with respect to any amounts due under any loan, when such amount is determined to be non-collectible. Distributable Earnings should not be considered as a substitute for GAAP net income. The Company cautions readers that its 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, the Company’s reported Distributable Earnings may not be comparable to similar measures presented by other REITs. LEED: LEED the most widely used green building rating system in the world. LEED certification provides independent verification of a building or neighborhood’s green features, allowing for the design, construction, operations and maintenance of resource-efficient, high-performing, healthy, cost-effective buildings.

XML

Cover Page	Oct. 25, 2021
Cover [Line Items]
Document Type	8-K
Document Period End Date	Oct. 25, 2021
Entity Registrant Name	KKR Real Estate Finance Trust Inc.
Entity Incorporation, State or Country Code	MD
Entity File Number	001-38082
Entity Tax Identification Number	47-2009094
Entity Address, Address Line One	30 Hudson Yards,
Entity Address, Address Line Two	Suite 7500
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
City Area Code	212
Local Phone Number	750-8300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Central Index Key	0001631596
Amendment Flag	false
Common Stock
Cover [Line Items]
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	KREF
Security Exchange Name	NYSE
Series A Preferred Stock
Cover [Line Items]
Title of 12(b) Security	6.50% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share
Trading Symbol	KREF PRA
Security Exchange Name	NYSE