KKR Real Estate Finance Trust Inc.
For the period ended Dec 31, 2025. Filed Feb 3, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Feb 3, 2026
KREF$5.66-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-02-03.
0001631596-25-000012
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2025-12-31; filed 2026-02-03.
0001628280-26-005092
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 211 previous paragraphs and 209 current paragraphs.
114 unchanged; 62 reworded; 29 added; 33 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 17 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (29)
Current report
•Distributable Earnings of $26.3 million, or $0.39 per diluted share of common stock
Current report
•Common book value of $844.8 million, or $13.04 per share, as of December 31, 2025, inclusive of a CECL allowance of $204.1 million, or ($3.15) per share; the CECL allowance increased for the year ended December 31, 2025 primarily due to additional reserves for risk-rated 5 loans of $119.4 million, or ($1.79) per share
Current report
•Originated and funded $1.1 billion and $1.0 billion, respectively, relating to twelve floating-rate loans, including two European loans, with a weighted average LTV(1)of 68% and coupon of 2.8% over applicable benchmark; and funded $96.1 million in loan principal for existing loans
Current report
•Received $1.5 billion in loan repayments
Current report
•Sold certain real estate owned assets, including a parking garage in Philadelphia, PA and a retail/redevelopment parcel in Portland, OR, for a combined gain of $1.2 million
Current report
•Refinanced and upsized the secured term loan from $339.5 million to $650.0 million, reduced the spread from S+3.50% to S+2.50%, and extended the maturity to March 2032
Current report
•Increased the borrowing capacity of the corporate revolving credit facility by $90.0 million to $700.0 million and extended the maturity date until 2030
Current report
•Entered into three term lending agreements totaling $650.0 million, which provide match-term financing on a non-mark-to-market basis, and a new £300.0 million term credit agreement to finance European originations
Current report
(A) Charts are based on outstanding principal of our commercial real estate loans. Excludes fully written off loans, loans held in consolidated CMBS trust, and equity method investment, unconsolidated entity.
Current report
ended December 31, 2024.
Current report
(K) Represents our 50% economic interest in an affiliated company, which is invested in a senior mortgage loan that is collateralized by industrial properties located in France. The underlying senior mortgage loan with an outstanding principal balance of €65.2 million, has a coupon of 2.8%, term to maturity of 2.8 years and LTV of 69%. The affiliated company's investment in the underlying senior mortgage loan is 80% financed with a funding cost of EURIBOR + 1.6%. KREF does not have unilateral authority to direct the activities that most significantly impact the affiliated company's economic performance.
Current report
Our term lending agreements provide us with asset-based financing on a non-mark-to-market basis, are match-term to the underlying loans and are partial recourse.
Current report
Our asset specific financing facilities provide us with asset-based financing on a non-mark-to-market basis, are match-term to the underlying loans and are non-recourse.
Current report
In March 2025, we refinanced our existing term loan of $339.5 million with a new $550.0 million secured term loan due March 2032. In September 2025, we upsized our secured term loan to $650.0 million and reduced the spread to S+2.5%. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. The secured term loan contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates, and is secured by corporate level guarantees and does not include asset-based collateral.
Current report
Raleigh, NC Multifamily — In August 2025, we took title to a Raleigh multifamily property and accounted for the property through an assignment-in-lieu of foreclosure ("AIL"). We recorded the property and its net assets on the Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.
Current report
Philadelphia, PA Office —In December 2023, we took title to a Philadelphia office portfolio through a DIL and recorded the portfolio and its net assets on the Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.
Current report
In May 2025, we sold a portion of the portfolio for $25.3 million and recognized a realized gain of $0.5 million after closing costs. As of December 31, 2025, there was one office property remaining.
Current report
West Hollywood, CA Condo — In April 2025, we took title to a West Hollywood multifamily property through an AIL. We recorded the property and its net assets on the Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities.
Current report
Real Estate Asset, Equity Method Investment
Current report
Variable Interest Entity Liabilities
Current report
In connection with our investments in CMBS B-Pieces, we consolidated the CMBS trust that holds the pools of senior loans underlying the CMBS because we determined such trust is a VIE and we are the primary beneficiary of such VIE. As a result of the consolidation, our financial statements include the liabilities of the consolidated CMBS trust. However, the liabilities are not recourse to us, and our risk of loss is limited to the value of our investment in the related CMBS B-Pieces. See Note 8 to the consolidated financial statements for additional information on these liabilities as of December 31, 2025.
Current report
Unconsolidated Entity, Equity Method Investment
Current report
In October 2025, we acquired a 50% economic interest in an affiliated company, which invested in a senior mortgage loan that is collateralized by industrial properties in France. The affiliated company's investment in the underlying senior mortgage loan is 80% financed, with a funding cost of EURIBOR + 1.6%. We do not have unilateral authority to direct the activities that most significantly impact the affiliated company's economic performance. Accordingly, we reported the net investment value of the economic interest in our Consolidated Balance Sheets, presented as “Equity method investment, unconsolidated entity” and our share of net income, presented as “Income (loss) from equity method investments” on the Consolidated Statements of Income.
Current report
Total other income decreased by $7.0 million during the year ended December 31, 2025, as compared to the prior year. This decrease was primarily due to a $6.3 million decrease in revenue from REO Operations.
Current report
(A) Loan principal repayments held by a servicer at December 31, 2025 were received in January 2026.
Current report
During the year ended December 31, 2025, our cash flows from financing activities were primarily driven by repayments of $1,655.2 million on our secured financing agreements and repayments of $567.9 million on our collateralized loan obligations, partially offset by borrowing proceeds of $1,717.3 million under our secured financing agreements and proceeds of $310.8 million issued under our secured term loan.
Current report
We are also required to settle our foreign exchange contracts with our derivative counterparties upon maturity which, depending on exchange rate movements, may result in cash received from or due to the respective counterparty. The table above does not include these amounts as they are not fixed and determinable. Refer to Note 10 to our consolidated financial statements for details regarding our derivative contracts.
Current report
In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270)—Narrow-Scope Improvements, which provides a clearer framework and more consistent application of interim disclosure requirements for public business entities. The guidance is effective for our 2027 annual reporting. The guidance is applied prospectively and may be applied retrospectively. Adoption is not expected to have a material impact on our consolidated financial statements.
Current report
In December 2025, the FASB issued ASU No. 2025-12, Codification Improvements, which refines existing guidance to further enhance the interpretation and application of the Codification. The guidance is effective for our 2026 annual reporting. The guidance is applied prospectively and may be applied retrospectively. Adoption is not expected to have a material impact on our consolidated financial statements.
Removed paragraphs (33)
Previous report
•Distributable Loss of $70.7 million, or ($1.02) per diluted share of common stock
Previous report
•Declared dividends of $1.00 per common share. The fourth quarter dividend of $0.25 per common share produced an annualized yield of 9.9% on our closing stock price as of December 31, 2024
Previous report
•Funded $333.3 million for loans closed in previous years and received loan repayments of $1.5 billion
Previous report
•Multifamily and industrial assets represent 60% of loan portfolio
Previous report
•Repaid $1.0 billion in financing, net, reducing our total leverage ratio to 3.6x
Previous report
•Extended the final maturity of a $1.0 billion term credit facility to September 2029
Previous report
(B) Includes (i) a $35.9 million write-off of a subordinated loan during the three months ended December 31, 2024; (ii) a $1.8 million write-off on a senior loan repaid during the three months ended September 30, 2024; and (iii) a combined $98.5 million write-off on two senior loans and a $37.5 million write-off of a mezzanine loan during the three months ended June 30, 2024. Includes a $58.7 million write-off on a senior loan during the three months ended December 31, 2023, and a $15.0 million write-off of a subordinated loan during the three months ended September 30, 2023.
Previous report
The charts above are based on total loan exposure of our commercial real estate loans.
Previous report
(A) Excludes: (i) Real Estate Assets, (ii) CMBS B-Pieces and (iii) fully written off loans.
Previous report
(A) Includes a repayment of $38.6 million of non-consolidated senior interests as our retained mezzanine loan was fully repaid during the three months ended September 30, 2024. Includes $4.7 million of cost recovery interest applied as a reduction to loan principal during the three months ended December 31, 2023.
Previous report
(B) Includes a $35.9 million write-off of a subordinated loan during the three months ended December 31, 2024, a $1.8 million write-off on a senior loan repaid during the three months ended September 30, 2024, and a combined $98.5 million write-off on two senior loans and a $37.5 million write-off of a mezzanine loan during the three months ended June 30, 2024. Includes a $58.7 million write-off on a senior loan during the three months ended December 31, 2023, and a $15.0 million write-off of a subordinated loan during the three months ended September 30, 2023.
Previous report
(C) Unfunded commitments will primarily be funded to finance property improvements and renovations or lease-related expenditures by the borrowers. These future commitments may be funded over the term of each loan, subject in certain cases to an expiration date.
Previous report
For Senior Loan 23, the total whole loan is $112.2 million, including (i) a fully funded senior mortgage loan of $102.0 million, at an interest rate of S+3.06%, (ii) a senior mezzanine note with $8.6 million funded as of December 31, 2024, at a fixed interest rate of 10.0% and (iii) a fully funded junior mezzanine note of $0.8 million, at a fixed interest rate of 10.0% with certain profit share provisions, as defined in the loan agreement.
Previous report
(B) In certain instances, we finance our loans through the non-recourse sale of a senior interest that is not included in the consolidated financial statements. Total loan exposure includes the entire loan we originated and financed, including $188.6 million of such non-consolidated interests as of December 31, 2023.
Previous report
In January 2023, we modified a risk-rated 5 senior office loan located in Philadelphia, PA, with an outstanding principal balance of $161.0 million. The terms of the modification included, among others, a $25.0 million principal repayment and a restructure of the $136.0 million senior loan (after the $25.0 million repayment) into (i) a $116.5 million committed senior mortgage loan (with $5.5 million in unfunded commitment) and (ii) a $25.0 million junior mezzanine note. The restructured senior loan earns a coupon rate of S+2.75% and has a new term of up to four years, assuming all extension options are exercised. The $25.0 million junior mezzanine note is subordinate to a new $41.5 million committed senior mezzanine note held by the sponsor (with $16.5 million in unfunded commitment) and was deemed uncollectible and written off in December 2022. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $114.3 million was risk-rated 3 as of December 31, 2024.
Previous report
In June 2023, we modified a risk-rated 5 senior office loan located in Minneapolis, MN, with an outstanding principal balance of $194.4 million. The terms of the modification included, among others, a restructure of the $194.4 million senior loan into (i) a $120.0 million senior mortgage loan (fully funded) and (ii) a $79.4 million mezzanine note (with $5.0 million in unfunded commitment). The restructured senior loan earns a coupon rate of S+2.25% and the mezzanine note earns a fixed 4.5% PIK interest rate. Post modification, the whole loan’s maximum maturity is July 2025, assuming all extension options are exercised. The restructured whole loan with an outstanding principal balance of $194.4 million was risk-rated 5 as of December 31, 2024.
Previous report
In September 2023, we modified a risk-rated 4 senior office loan located in Chicago, IL, with an outstanding principal balance of $118.4 million. The terms of the modification included, among others, a $15.0 million principal repayment, a $15.0 million reduction in unfunded loan commitment, and a restructure of the $103.4 million senior loan (after the $15.0 million repayment) into (i) a $105.0 million committed senior mortgage loan (with $16.6 million in unfunded commitment) and (ii) a $15.0 million subordinated note which is subordinate to a new $18.5 million sponsor interest. The restructured senior loan earns a coupon rate of S+2.25% and has a new term of five years. The $15.0 million subordinated note was deemed uncollectible and written off in September 2023. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $90.5 million was risk-rated 3 as of December 31, 2024.
Previous report
In 2018, we entered into a loan financing facility with BMO Harris Bank ("BMO Facility”) with a current borrowing capacity of $300.0 million. The facility provides financing on a non-mark-to-market basis with match-term up to five years with partial recourse to us.
Previous report
In 2019, we entered into a Master Repurchase and Securities Contract Agreement ("KREF Lending V Facility") with Morgan Stanley Mortgage Capital Holdings LLC ("Administrative Agent"), as administrative agent on behalf of Morgan Stanley Bank, N.A. ("Initial Buyer"), which provides non-mark-to-market financing. The facility has a current maturity of June 2025, subject to an additional one-year extension option. The Initial Buyer subsequently syndicated a portion of the facility to multiple financial institutions and held 22.7% of the total commitment as of December 31, 2024.
Previous report
In 2021, we entered into a Master Repurchase and Securities Contract Agreement with a financial institution (“KREF Lending IX Facility”) with a current borrowing capacity of $460.9 million. The facility, which provides financing on a non-mark-to-market basis with partial recourse to us, has a three-year draw period and match-term to the underlying loans. In May 2024, the lender assigned its rights and obligations under the KREF Lending IX Facility to another financial institution.
Previous report
In 2022, we entered into a $350.0 million Master Repurchase Agreement and Securities Contract with a financial institution (“KREF Lending XII Facility”). The facility, which provides financing on a non-mark-to-market basis with partial recourse to KREF, has a two-year draw period and match-term to the underlying loans. In addition, we have the option to increase the facility amount to $500.0 million.
Previous report
In 2022, we entered into a $100.0 million loan financing facility with a financial institution ("KREF Lending XI Facility"), a $265.6 million loan financing facility with a financial institution ("KREF Lending XIII Facility") and a $125.0 million loan financing facility with a financial institution ("KREF Lending XIV Facility"). The facilities provide non-recourse match-term asset-based financing on a non-mark-to-market basis.
Previous report
The following table outlines the CLO collateral assets and respective borrowing (dollars in thousands):
Previous report
(A) The term of the CLO notes represents the rated final distribution date. Repayments of CLO notes are dependent on timing of underlying collateral loan asset repayments post the reinvestment period.
Previous report
(B) Including deferred financing costs and applicable index in effect as of December 31, 2024. Average weighted by the outstanding principal of the facility.
Previous report
In 2020, we entered into a $300.0 million secured term loan at a price of 97.5%. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. In 2021, we completed a $52.2 million add-on, which was issued at par, for an aggregate principal amount of $350.0 million. The secured term loan bears coupon interest at Adjusted Term SOFR, as defined in the secured term loan agreements, plus a 3.50% margin, and is subject to a 0.50% SOFR floor.
Previous report
Real Estate Assets
Previous report
Net interest income decreased by $4.3 million, during the year ended December 31, 2023, as compared to the prior year. This decrease was primarily due to the suspension of interest income accrual on loans accounted for under the cost recovery method. Otherwise, both interest income and interest expense increased due to higher index rates. During the year ended December 31, 2023, $9.8 million of interest collections on nonaccrual loans were applied as a cost reduction to the loan amortized cost.
Previous report
Total other income increased by $2.0 million during the year ended December 31, 2023, as compared to the prior year. This increase was primarily due to a $6.7 million increase in interest income earned on our cash balances, as compared to the prior year, resulting from higher market rates. The increase was partially offset by (i) a $3.2 million change in an unrealized mark-to-market adjustment on our RECOP I's underlying CMBS investments, as compared to the prior year, and (ii) a nonrecurring $1.3 million of profit sharing income in connection with the repayment of an industrial senior loan during the prior year.
Previous report
The banking sector and financial market recently witnessed significant volatility resulting from multiple bank failures. While we maintained no accounts at these failed banks, substantially all of our cash currently on deposit with other major financial institutions exceeds insured limits. We limit exposure relating to our short-term financial instruments by diversifying these financial instruments among various counterparties. Generally, deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore we believe bear minimal credit risk.
Previous report
During the year ended December 31, 2023, our cash flows from financing activities were primarily driven by (i) repayments of $791.3 million under our financing agreements, (ii) payment of $143.8 million to redeem convertible notes, and (iii) payments of $140.2 million in dividends, partially offset by proceeds from borrowings under our financing agreements of $811.1 million.
Previous report
Recently Adopted Accounting Standards
Previous report
In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures required under ASC 280. The guidance is effective for our 2024 annual reporting. The guidance is applied retrospectively to all periods presented in the financial statements, unless it is impracticable. We adopted ASU 2023-07 in the year ended December 31, 2024 and the adoption did not have a material impact on our consolidated financial statements.
Reworded paragraphs (62)
Previous wording
•Net Income Attributable to Common Stockholders of $13.1 million, or $0.19 per diluted share of common stock
Current wording
•Net Loss Attributable to Common Stockholders of $69.9 million, or ($1.05) per diluted share of common stock
Previous wording
•Repurchased 859,055 shares at an average price per share of $11.64 for a total of $10.0 million
Current wording
•Repurchased 4,629,824 shares at an average price per share of $9.35 for a total of $43.3 million
Previous wording
•$6.3 billion predominantly floating-rate senior loan portfolio with a weighted average unlevered all-in-yield(1) of 7.8% as of December 31, 2024
Current wording
•$5.9 billion predominantly floating-rate senior loan portfolio with a weighted average unlevered all-in-yield(2) of 7.3% as of December 31, 2025
Previous wording
•Took title to an office property and a life science property through deed-in-lieu of foreclosure, and wrote off uncollectible mezzanine/subordinated loans; these loan resolutions resulted in net realized losses of $173.5 million, or ($2.50) per diluted share of common stock
Current wording
•Took title to multifamily properties in West Hollywood, CA and Raleigh, NC through deed-in-lieu of foreclosures; these loan resolutions resulted in net realized losses of $34.8 million, or ($0.52) per diluted share of common stock
Previous wording
•Non-mark-to-market financing was $3.9 billion as of December 31, 2024, representing 79% of our secured financing.
Current wording
•Non-mark-to-market financing was $3.5 billion as of December 31, 2025, representing 74% of our secured financing.
Previous wording
(A) Numbers presented may not foot due to rounding.
Current wording
Per share amounts presented may not foot due to rounding.
Previous wording
Book value as of December 31, 2024 included the impact of an estimated CECL credit loss allowance of $119.6 million, or ($1.74) per share. See Note 2 — Summary of Significant Accounting Policies, to our consolidated financial statements included in this Form 10-K for detailed discussion of allowance for credit losses.
Current wording
Book value as of December 31, 2025 included the impact of an estimated CECL allowance of $204.1 million, or ($3.15) per share and accumulated depreciation of $5.1 million, or ($0.08) per share. See Note 2 — Summary of Significant Accounting Policies, to our consolidated financial statements included in this Form 10-K for detailed discussion of allowance for credit losses.
Previous wording
We have established a $6,271.6 million portfolio of diversified investments, consisting primarily of senior commercial real estate loans as of December 31, 2024.
Current wording
We have established a $5,924.2 million portfolio of diversified investments, consisting primarily of senior commercial real estate loans as of December 31, 2025.
Previous wording
During the year ended December 31, 2024, we collected 98% of interest payments due on our loan portfolio. As of December 31, 2024, the average risk rating of our loan portfolio was 3.1, weighted by total loan exposure. As of December 31, 2024, the average loan commitment in our portfolio was $124.6 million and multifamily and industrial loans comprised 60% of our loan portfolio.
Current wording
During the year ended December 31, 2025, we collected 100% of interest payments due on our loan portfolio. As of December 31, 2025, the average risk rating of our loan portfolio was 3.2, weighted by loan outstanding principal. As of December 31, 2025, the average loan commitment in our portfolio was $109.0 million and multifamily and industrial loans comprised 58% of our loan portfolio.
Previous wording
In addition, we owned Real Estate Assets with an investment amount of $335.8 million, comprised of the acquired properties (directly or indirectly) and capitalized redevelopment costs, as of December 31, 2024. These properties are reflected on our Consolidated Balance Sheets.
Current wording
In addition, we owned Real Estate Assets with an investment amount of $502.6 million, comprised of the acquired properties (directly or indirectly) and capitalized redevelopment costs, as of December 31, 2025. These properties are reflected on our Consolidated Balance Sheets.
Previous wording
We have executed on our primary investment strategy of originating floating-rate transitional senior loans and, as we continue to scale our loan portfolio, we expect that our originations will be heavily weighted toward floating-rate loans. As of December 31, 2024, substantially all of our loans by total loan exposure earned a floating rate of interest. We expect the majority of our future investment activity to focus on originating floating-rate senior loans that we finance with our repurchase and other financing facilities, with a secondary focus on originating floating-rate loans for which we syndicate a senior position and retain a subordinated interest for our portfolio. As of December 31, 2024, all of our investments were located in the United States.
Current wording
We have executed on our primary investment strategy of originating floating-rate transitional senior loans and, as we continue to scale our loan portfolio, we expect that our originations will be heavily weighted toward floating-rate loans. As of December 31, 2025, substantially all of our loans by outstanding principal earned a floating rate of interest. We expect the majority of our future investment activity to focus on originating floating-rate senior loans that we finance with our repurchase and other financing facilities. As of December 31, 2025, all of our investments were located in the United States and Europe.
Previous wording
(C) "Other" property type includes Self-Storage (2%), Student Housing (2%) and Mixed Use (1%).
Current wording
(C) "Other" property type includes Student Housing (2%) and Mixed Use (<1%).
Previous wording
The following table details our quarterly loan activity (dollars in thousands):
Current wording
The following table details our quarterly loan activity (amounts in thousands):
Previous wording
(C) Represents a removal of $150.0 million of non-consolidated senior interests as our retained mezzanine loan was written-off during the three months ended June 30, 2024.
Current wording
(A) Represents a removal of $150.0 million of non-consolidated senior interests as our retained mezzanine loan was written-off during the year
Previous wording
The following table details overall statistics for our loan portfolio as of December 31, 2024 (dollars in thousands):
Current wording
The following table details overall statistics for our loan portfolio as of December 31, 2025 (amounts in thousands):
Previous wording
(A) Represents mezzanine loans with commitments of $79.4 million and $10.2 million, respectively, accompanying two senior loans. $83.7 million of loan principal was funded, of which $74.4 million was placed on nonaccrual status, as of December 31, 2024. The remaining $9.3 million funded principal earned a fixed interest rate of 10.0% as of December 31, 2024. Refer to Note 3 to our consolidated financial statements for additional information.
Current wording
(A) Represents a mezzanine loan with a commitment of $79.4 million accompanying a senior loan. $74.4 million of loan principal was funded and on nonaccrual status as of December 31, 2025. Refer to Note 3 to our consolidated financial statements for additional information.
Previous wording
(D)In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs and purchase discounts.
Current wording
(C)In addition to cash coupon, all-in yield includes the amortization of deferred origination fees, loan origination costs and purchase discounts. Weighted average cash coupon and all-in yield excludes loans on nonaccrual status.
Previous wording
The table below sets forth additional information relating to our portfolio as of December 31, 2024 (dollars in millions):
Current wording
The table below sets forth additional information relating to our portfolio as of December 31, 2025 (amounts in millions):
Previous wording
(A) Our total portfolio represents the current principal amount or investment amount on senior and mezzanine loans, real estate assets and other investments. Excludes loans that were fully written off.
Current wording
(A) Our total portfolio represents the current principal amount or investment amount on senior and mezzanine loans, real estate assets, CMBS investments and other investments. Excludes loans that were fully written off.
Previous wording
For Senior Loan 8, the total whole loan is $199.4 million, including (i) a fully funded senior mortgage loan of $120.0 million, at an interest rate of S+2.25% and (ii) a mezzanine note with a commitment of $79.4 million, of which $74.4 million was funded as of December 31, 2024, at a fixed interest rate of 4.5%. The mezzanine note interest is payment-in-kind (“PIK Interest”), which is capitalized, compounded, and added to the outstanding principal balance of the respective loan.
Current wording
For Senior Loan 6, the total whole loan is on non-accrual and has an outstanding principal balance of $194.4 million, including (i) a fully funded senior mortgage loan of $120.0 million, at an interest rate of S+2.25% and (ii) a mezzanine note with a commitment of $79.4 million, of which $74.4 million was funded as of December 31, 2025, at a fixed interest rate of 4.5% PIK.
Previous wording
(C) Net equity reflects (i) the amortized cost basis of our loans, net of borrowings; (ii) Real Estate Owned ("REO"), net of borrowings and noncontrolling interests, and (iii) the investment amount of equity method investments, net of borrowings.
Current wording
(C) Net equity reflects (i) the amortized cost basis of our loans, net of borrowings; (ii) real estate assets, net of borrowings and noncontrolling interests, and (iii) the investment amount of equity method investments, net of borrowings.
Previous wording
(D) Weighted average is weighted by the current principal amount for our senior and mezzanine loans and by the investment amount of CMBS B-Pieces. Risk-rated 5 loans are excluded from the weighted average LTV.
Current wording
(D) Weighted average is weighted by the current principal amount of our loans and the investment amount of CMBS investments. Weighted average LTV excludes risk-rated 5 loans and weighted average coupon excludes loans on nonaccrual status.
Previous wording
(E) Coupon expressed as spread over Term SOFR.
Current wording
(E) Coupon expressed as spread over Term SOFR, SONIA or EURIBOR.
Previous wording
(G) Loan Per SF / Unit / Key is based on the current principal amount divided by the current SF / Unit / Key. For Senior Loans 2, 3, 5, 16 and 19, Loan Per SF / Unit / Key is calculated as the total commitment amount of the loan divided by the proposed SF / Unit / Key.
Current wording
(G) Loan Per SF / Unit / Key is based on the current principal amount divided by the current SF / Unit / Key. For Senior Loans 1, 2, 4, 10, 16 and 39, Loan Per SF / Unit / Key is calculated as the total commitment amount of the loan divided by the proposed SF / Unit / Key.
Previous wording
(H) For senior loans, LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated; for mezzanine loans, LTV is based on the initial balance of the whole loan divided by the as-is appraised value as of the date the loan was originated; for CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance. Weighted Average LTV excludes risk-rated 5 loans.
Current wording
(H) For senior loans, LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated; for mezzanine loans, LTV is based on the initial balance of the whole loan divided by the as-is appraised value as of the date the loan was originated; for CMBS investments, LTV is based on the weighted average LTV of the underlying loan pool at issuance. Weighted Average LTV excludes risk-rated 5 loans.
Previous wording
For Senior Loans 2, 3, 5, 16 and 19, 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. For senior loans where an appraisal has been obtained post origination, the LTV, presented as follows, is calculated based on the current principal amount divided by the as-is appraised value as of the new appraisal date: Senior Loan 15 (64%); Senior Loan 17 (64%); Senior Loan 18 (78%); Senior Loan 20 (64%); Senior Loan 24 (57%); Senior Loan 25 (75%); Senior Loan 28 (83%); Senior Loan 30 (70%); Senior Loan 33 (81%); Senior Loan 34 (63%); and Senior Loan 39 (81%).
Current wording
For Senior Loans 1, 2, 4, 10, 16 and 39, 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.
Previous wording
As of December 31, 2024, the average risk rating of our portfolio was 3.1, weig hted by total loan exposure, as compared to 3.2 as of December 31, 2023.
Current wording
As of December 31, 2025, the average risk rating of KREF's portfolio was 3.2, weighted by outstanding loan principal, as compared to 3.1 as of December 31, 2024.
Previous wording
In December 2024, we modified a risk-rated 5 senior life science loan located in San Carlos, CA, with an outstanding principal balance of $103.2 million. The terms of the modification included a $13.1 million principal repayment, and a restructure of the $90.1 million senior loan (after the $13.1 million repayment) into (i) a $89.1 million committed senior mortgage loan (with $34.9 million in unfunded commitment), and (ii) a $35.9 million subordinated note which is subordinate to a new $20.0 million sponsor interest. The restructured senior loan earns a coupon rate of S+1.00% and has a new term of three years. The $35.9 million subordinated note was deemed uncollectible and written off in December 2024. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $55.1 million was risk-rated 3 as of December 31, 2024.
Current wording
In December 2024, we modified a risk-rated 5 senior life science loan located in San Carlos, CA, with an outstanding principal balance of $103.2 million. The terms of the modification included a $13.1 million principal repayment, and a restructure of the $90.1 million senior loan (after the $13.1 million repayment) into (i) a $89.1 million committed senior mortgage loan (with $34.9 million in unfunded commitment), and (ii) a $35.9 million subordinated note which is subordinate to a new $20.0 million sponsor interest. The restructured senior loan earns a coupon rate of S+1.00% and has a new term of three years. The $35.9 million subordinated note was deemed uncollectible and written off in December 2024. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $61.6 million was risk-rated 3 as of December 31, 2025.
Previous wording
Our current CMBS exposure is through an equity method investment. Our Manager has processes and procedures in place to monitor and assess the credit quality of our CMBS B-Piece investments and promote the regular and active management of these investments. This includes reviewing the performance of the real estate assets underlying the loans that collateralize the investments and determining the impact of such performance on the credit and return profile of the investments. Our Manager holds monthly surveillance calls with the special servicer of our CMBS B-Piece investments to monitor the performance of our portfolio and discuss issues associated with the loans underlying our CMBS B-Piece investments. At each meeting, our Manager is provided with a due diligence submission for each loan underlying our CMBS B-Piece investments, which includes both property-level and loan-level information. These meetings assist our Manager in monitoring our portfolio, identifying any potential loan issues, determining if a re-underwriting of any loan is warranted and examining the timing and severity of any potential losses or impairments.
Current wording
Our Manager has processes and procedures in place to monitor and assess the credit quality of our CMBS B-Piece investments and promote the regular and active management of these investments. This includes reviewing the performance of the real estate assets underlying the loans that collateralize the investments and determining the impact of such performance on the credit and return profile of the investments. Our Manager holds monthly surveillance calls with the special servicer of our CMBS B-Piece investments to monitor the performance of our portfolio and discuss issues associated with the loans underlying our CMBS B-Piece investments. At each meeting, our Manager is provided with a due diligence submission for each loan underlying our CMBS B-Piece investments, which includes both property-level and loan-level information. These meetings assist our Manager in monitoring our portfolio, identifying any potential loan issues, determining if a re-underwriting of any loan is warranted and examining the timing and severity of any potential losses or impairments.
Previous wording
Our Non-Mark-to-Market Financing Sources, which accounted for 79% of our total financing as of December 31, 2024, are not subject to credit or capital markets mark-to-market provisions. The remaining 21% of our total financing, which is comprised of three master repurchase agreements, are only subject to credit marks.
Current wording
Our Non-Mark-to-Market Financing Sources, which accounted for 74% of our total financing as of December 31, 2025, are not subject to credit or capital markets mark-to-market provisions. The remaining 26% of our total financing, which is comprised of three master repurchase agreements, are only subject to credit marks.
Previous wording
The following table summarizes our financing agreements (dollars in thousands):
Current wording
The following table summarizes our financing agreements (amounts in thousands):
Previous wording
As a contractual matter, the lender has the right to reset the value of the assets at any time based on then-current market conditions, but the market convention is to reassess valuations on a monthly, quarterly and annual basis using the financial information delivered pursuant to the facility documentation regarding the real property, borrower and guarantor under such underlying loans. Generally, if the lender determines (subject to certain conditions) that the market value of the collateral in a repurchase transaction has decreased by more than a defined minimum amount, the lender may require us to provide additional collateral or lead to margin calls that may require us to repay all or a portion of the funds advanced. We closely monitor our liquidity and intend to maintain sufficient liquidity on our balance sheet in order to meet any margin calls in the event of any significant decreases in asset values. As of December 31, 2024, the weighted average haircut under our repurchase agreements was 34.9% (or 32.1%, if we had borrowed the maximum amount approved by its repurchase agreement counterparties as of such dates). In addition, our existing master repurchase facilities are not entirely term-matched financings and may mature before our CRE debt investments that represent underlying collateral to those financings. As we negotiate renewals and extensions of these liabilities, we may experience lower advance rates and higher pricing under the renewed or extended agreements.
Current wording
Each of our existing master repurchase facilities includes "credit mark-to-market" features. "Credit mark-to-market" provisions in repurchase facilities are designed to keep the lenders' credit exposure generally constant as a percentage of the underlying collateral value of the assets pledged as security to them. If the credit underlying collateral value decreases, the gross amount of leverage available to us will be reduced as our assets are marked-to-market, which would reduce our liquidity. The lender under the applicable repurchase facility sets the valuation and any revaluation of the collateral assets in its sole, good faith discretion. As a contractual matter, the lender has the right to reset the value of the assets at any time based on then-current market conditions, but the market convention is to reassess valuations on a monthly, quarterly and annual basis using the financial information delivered pursuant to the facility documentation regarding the real property, borrower and guarantor under such underlying loans. Generally, if the lender determines (subject to certain conditions) that the market value of the collateral in a repurchase transaction has decreased by more than a defined minimum amount, the lender may require us to provide additional collateral or lead to margin calls that may require us to repay all or a portion of the funds advanced. We closely monitor our liquidity and intend to maintain sufficient liquidity on our balance sheet in order to meet any margin calls in the event of any significant decreases in asset values. In addition, our existing master repurchase facilities are not entirely term-matched financings and may mature before our CRE debt investments that represent underlying collateral to those financings. As we negotiate renewals and extensions of these liabilities, we may experience lower advance rates and higher pricing under the renewed or extended agreements.
Previous wording
In 2018, we entered into a term loan financing agreement with third party lenders with a current borrowing capacity of $1.0 billion (“Term Loan Facility”). The facility provides us with asset-based financing on a non-mark-to-market basis with match-term up to five years, with additional two-year extension available, and is non-recourse to us.
Current wording
Our term loan facility provides us with asset-based financing on a non-mark-to-market basis, is match-term up to five years, with an additional two-year extension available, and is non-recourse.
Previous wording
In 2020, we entered into a $500.0 million Loan and Security Agreement with HSBC Bank USA, National Association (“HSBC Facility”) with a current facility maturity date of March 2026. The facility provides warehouse financing on a non-mark-to-market basis with partial recourse to us.
Current wording
Our warehouse facility provides us with asset-based financing on a non-mark-to-market basis, has a current facility maturity of March 2026, and is partial recourse.
Previous wording
In 2022, we upsized our corporate revolving credit agreement (“Revolver”), administered by Morgan Stanley Senior Funding, Inc., to $610.0 million and extended the maturity date to March 2027. We may use our Revolver as a source of financing, which is designed to provide short-term liquidity to originate or de-lever loans, pay operating expenses and borrow amounts for general corporate purposes. Our Revolver is secured by corporate level guarantees and includes net equity interests in the investment portfolio.
Current wording
In March 2025, we upsized our Revolver, administered by Morgan Stanley Senior Funding, Inc., to $660.0 million and extended the maturity date to March 2030. In September 2025, we further upsized our Revolver to $700.0 million. We may use our Revolver as a source of financing, which is designed to provide short-term liquidity to originate or de-lever loans, pay operating expenses and borrow amounts for general corporate purposes. Our Revolver is secured by corporate level guarantees and includes net equity interests in the investment portfolio.
Previous wording
The secured term loan matures on September 1, 2027 and contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates. Our secured term loan is secured by corporate level guarantees and does not include asset-based collateral. Refer to Notes 2 and 7 to our consolidated financial statements for additional discussion of our secured term loan.
Current wording
Refer to Notes 2 and 7 to our consolidated financial statements for additional discussion of our secured term loan.
Previous wording
•a consolidated tangible net worth covenant (75.0% of the aggregate net cash proceeds of any equity issuances made and any capital contributions received by us and KKR Real Estate Finance Holdings L.P. (our "Operating Partnership") or up to approximately $1,300.2 million, depending on the agreement;
Current wording
•a consolidated tangible net worth covenant (75.0% of the aggregate net cash proceeds of any equity issuances made and any capital contributions received by us and KKR Real Estate Finance Holdings L.P. (our "Operating Partnership") or up to approximately $1.3 billion, depending on the agreement;
Previous wording
Portland Retail /Redevelopment—In 2015, we originated a $177.0 million senior loan secured by a retail property in Portland, OR. In December 2021, we took title to the retail property and accounted for the property on a consolidated basis. The transaction was accounted for as an asset acquisition under Accounting Standards Codification ("ASC") 805. Accordingly, we recorded the property on the Consolidated Balance Sheets as real estate owned ("REO") with a carrying value of $78.6 million, which included the estimated fair value of the property. We contributed a portion of the REO asset with a carrying value of $68.9 million to a joint venture (the "REO JV") with a third party local developer (“JV Partner”), whereby we had a 90% interest and the JV Partner had a 10% interest. The JV Partner's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Consolidated Balance Sheets. As of December 31, 2024, we have a priority of distributions up to $79.7 million before the JV Partner can participate in the economics of the REO JV.
Current wording
Portland, OR Retail /Redevelopment—In December 2021, we took title a Portland retail property and recorded the property and its net assets on the Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. We contributed a portion of the REO asset to a joint venture (the "REO JV") with a third party local developer (“JV Partner”), whereby we had a 90% interest and the JV Partner had a 10% interest. The JV Partner's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Consolidated Balance Sheets. In June 2025, we sold a portion of the property for $6.0 million and recognized a realized gain of $0.7 million after closing costs. As of December 31, 2025, we have a priority of distributions up to $81.1 million before the JV Partner can participate in the economics of the REO JV.
Previous wording
Mountain View Office —In 2021, we co-originated with a KKR affiliate a $362.8 million senior loan secured by an office property in Mountain View, CA. Our interest was 68.9% of the loan or $250.0 million. In June 2024, we and the KKR affiliate took title to the office property through a DIL and we accounted for the property on a consolidated basis. The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, we recorded the property and its net assets on the Consolidated Balance Sheets with an estimated fair value of $174.7 million, which included $175.0 million of REO held for investment and ($0.3) million of net working capital. As a result, we recognized a $79.9 million loan write-off for the difference between our interest in the amortized cost of the foreclosed loan and our share of the fair value of the REO’s net assets and closing costs. The KKR affiliate's interest in the property was 31.1%, or $54.3 million, upon DIL and was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Consolidated Balance Sheets.
Current wording
Mountain View, CA Office —In June 2024, we and the KKR affiliate took title to a Mountain View office property through a deed-in-lieu of foreclosure ("DIL") and we accounted for the property on a consolidated basis. Ours and the KKR affiliate's interest in the property were 68.9% and 31.1%, respectively. We recorded the property and its net assets on the Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. The KKR affiliate's interest in the property was presented within "Noncontrolling interests in equity of consolidated joint ventures" on the Consolidated Balance Sheets.
Previous wording
Philadelphia Office / Garage —In 2019, we originated a $182.6 million senior loan secured by an office portfolio in Philadelphia, PA. In December 2023, we received a $6.0 million partial repayment and then took title to the office property through a deed-in-lieu of foreclosure ("DIL"). The transaction was accounted for as an asset acquisition under ASC 805. Accordingly, we recorded the portfolio and its net assets on the Consolidated Balance Sheets with an estimated fair value of $86.4 million, which included $1.3 million of cash received and $76.5 million, $24.6 million and $15.9 million allocated to REO held for sale, lease intangible and other assets, and leasing and other liabilities, respectively. As a result, we recognized a $58.7 million loan write-off for the difference between the amortized cost of the foreclosed loan and the fair value of the REO’s net assets.
Current wording
Real Estate Assets, Held For Sale
Showing the first 40 of 62 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
(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.
Current report — wording carried from elsewhere
Real Estate Assets, Held For Investment
Current report — wording carried from elsewhere
Total operating expenses increased by $39.1 million during the year ended December 31, 2025, as compared to the prior year period. This increase was primarily due to a $38.8 million change in the provision for credit losses and an increase in expenses from REO Operations, which were partially offset by a decrease in management fees to related parties. The change in provision for credit losses during the year ended December 31, 2025 was due primarily to incremental reserves on risk-rated 5 loans compared to the prior year.
Current report — wording carried from elsewhere
The historical loss rate is further adjusted to consider expected macroeconomic conditions, such as commercial real estate price indices, unemployment rates and market liquidity, over reasonable and supportable forecast periods. There is significant uncertainty related to future macroeconomic conditions. Therefore, we also consider other loan specific credit quality factors such as the risk rating of the loan, a near-term maturity, nature of construction loans, and economic conditions specific to the property type of the underlying collateral.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Each of our existing master repurchase facilities includes "credit mark-to-market" features. "Credit mark-to-market" provisions in repurchase facilities are designed to keep the lenders' credit exposure generally constant as a percentage of the underlying collateral value of the assets pledged as security to them. If the credit underlying collateral value decreases, the gross amount of leverage available to us will be reduced as our assets are marked-to-market, which would reduce our liquidity. The lender under the applicable repurchase facility sets the valuation and any revaluation of the collateral assets in its sole, good faith discretion.
Previous report — wording carried elsewhere
Total operating expenses increased by $66.3 million during the year ended December 31, 2023, as compared to the prior year period. This increase was primarily due to a net increase of $62.7 million in the provision for credit losses.