KKR Real Estate Finance Trust Inc.

Previous wording

Although the Federal Reserve lowered interest rates three times during 2024 and three times in 2025, interest rates remain elevated and the timing, direction and extent of any future interest rate changes remain uncertain. Although higher interest rates will generally correlate to increases in our net income, increases in interest rates may adversely affect our existing borrowers and the cost of financing their properties and lead to nonperformance. Higher interest rates may also adversely impact real estate asset values and increase our interest expense, which expense may not be fully offset by any resulting increase in interest income.

Current wording

Although the Federal Reserve lowered interest rates three times during 2024 and three times in 2025, the Federal Reserve raised interest rates in September 2026 and indicated the potential for additional increases before the end of calendar year 2026. Interest rates remain elevated and the timing, direction and extent of any future interest rate changes remain uncertain. Although higher interest rates will generally correlate to increases in our net income, increases in interest rates may adversely affect our existing borrowers and the cost of financing their properties and lead to nonperformance. Higher interest rates may also adversely impact real estate asset values and increase our interest expense, which expense may not be fully offset by any resulting increase in interest income.

Previous wording

While Distributable Earnings excludes the impact of our unrealized current provision for (reversal of) credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is generally 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) if, in our determination, it is nearly certain that all amounts due under a loan will not be collected.

Current wording

While Distributable Earnings excludes the impact of our unrealized provision for (reversal of) loan losses (includes unrealized losses on loans held-for-investment and loans held-for-sale), any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is generally determined (i) upon the resolution of a loan (i.e. when the loan is repaid, fully or partially, sold, or, in the case of foreclosure, when the underlying asset is sold), or (ii) if, in our determination, it is nearly certain that all amounts due under a loan will not be collected.

Previous wording

We also use Distributable Earnings (before incentive compensation payable to our Manager) to determine the management and incentive compensation we pay our Manager. For its services to KREF, our Manager is entitled to a quarterly management fee equal to the greater of $62,500 or 0.375% of weighted average adjusted equity and quarterly incentive compensation equal to 20.0% of the excess of (a) the trailing 12-month Distributable Earnings (before incentive compensation payable to our Manager) over (b) 7.0% of the trailing 12-month weighted average adjusted equity (“Hurdle Rate”), less incentive compensation KREF already paid to the Manager with respect to the first three calendar quarters of such trailing 12-month period. For purposes of calculating incentive compensation under our Management Agreement, adjusted equity excludes: (i) the effects of equity issued that provides for fixed distributions or other debt characteristics and (ii) the unrealized provision for (reversal of) credit losses. The quarterly incentive compensation is calculated and paid in arrears with a three-month lag.

Current wording

We also use Distributable Earnings (before incentive compensation payable to our Manager) to determine the management and incentive compensation we pay our Manager. For its services to KREF, our Manager is entitled to a quarterly management fee equal to the greater of $62,500 or 0.375% of weighted average adjusted equity and quarterly incentive compensation equal to 20.0% of the excess of (a) the trailing 12-month Distributable Earnings (before incentive compensation payable to our Manager) over (b) 7.0% of the trailing 12-month weighted average adjusted equity (“Hurdle Rate”), less incentive compensation KREF already paid to the Manager with respect to the first three calendar quarters of such trailing 12-month period. For purposes of calculating incentive compensation under our Management Agreement, adjusted equity excludes: (i) the effects of equity issued that provides for fixed distributions or other debt characteristics and (ii) the unrealized provision for (reversal of) loan losses. The quarterly incentive compensation is calculated and paid in arrears with a three-month lag.

Previous wording

We believe that book value per share is helpful to stockholders in evaluating the growth of our company as we have scaled our equity capital base and continue to invest in our target assets.

Current wording

We believe that book value per share is helpful to stockholders in evaluating the growth of our company.

Previous wording

Book value as of June 30, 2026 included the impact of accumulated depreciation of $8.0 million, or ($0.14) per share. As of June 30, 2026, our undepreciated book value per share was $10.38.

Current wording

Book value as of September 30, 2026 included the impact of accumulated depreciation of $11.4 million, or ($0.20) per share. As of September 30, 2026, our undepreciated book value per share was $10.34.

Previous wording

We have established a $5,248.7 million portfolio of diversified investments, consisting primarily of senior commercial real estate loans as of June 30, 2026.

Current wording

We have established a $3,904.5 million portfolio of diversified investments, consisting primarily of senior commercial real estate loans as of September 30, 2026.

Previous wording

As of June 30, 2026, the average risk rating of our loan portfolio was 3.3, weighted by loan outstanding principal. As of June 30, 2026, the average loan commitment in our portfolio was $101.3 million and multifamily and industrial loans comprised 60% of our loan portfolio.

Current wording

As of September 30, 2026, the average risk rating of our loan portfolio was 3.2, weighted by loan outstanding principal. As of September 30, 2026, the average loan commitment in our portfolio was $92.3 million and multifamily and industrial loans comprised 57% of our loan portfolio.

Previous wording

In addition, we owned Real Estate Assets with an investment amount of $648.3 million, comprised of the acquired properties (directly or indirectly) and capitalized redevelopment costs, as of June 30, 2026. These properties are reflected on our Condensed Consolidated Balance Sheets.

Current wording

In addition, we owned Real Estate Assets with an investment amount of $653.1 million, comprised of the acquired properties (directly or indirectly) and capitalized costs, as of September 30, 2026. These properties are reflected on our Condensed 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 June 30, 2026, 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 June 30, 2026, all of our investments were located in the United States and Europe.

Current wording

We have executed on our primary investment strategy of originating floating-rate transitional senior loans and we expect that our originations will be heavily weighted toward floating-rate loans. As of September 30, 2026, 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 September 30, 2026, all of our investments were located in the United States and Europe.

Previous wording

(C) "Other" property type includes Student Housing (3%) and Mixed Use (<1%).

Current wording

(C) "Other" property type includes Senior Housing (3%) and Mixed Use (<1%).

Previous wording

(B) Total Whole Loan represents the total commitment of the entire loan originated, including participations by KKR affiliated entities. KREF has been the sole or lead investor across all of its originations since its 2015 inception. As of March 31, 2026, KKR's investment portfolio has less than 0.5% overlap with KREF's portfolio on a KKR AUM basis. Global Atlantic’s investment portfolio has less than 1% overlap with KREF's portfolio on a Global Atlantic AUM basis.

Current wording

(B) Total Whole Loan represents the total commitment of the entire loan originated, including participations by KKR affiliated entities. As of June 30, 2026, KKR's investment portfolio has less than 0.5% overlap with KREF's portfolio on a KKR AUM basis. Global Atlantic’s investment portfolio has less than 1% overlap with KREF's portfolio on a Global Atlantic AUM basis.

Previous wording

For Senior Loan 2, the total whole loan 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 June 30, 2026, at a fixed interest rate of 4.5% PIK.

Current wording

For Senior Loan 1, the total whole loan 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 September 30, 2026, at a fixed interest rate of 4.5% PIK.

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 1, 8, 20 and 35, 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 5, 12 and 26, Loan Per SF / Unit / Key is calculated as the total commitment amount of the loan divided by the proposed SF / Unit / Key.

Previous wording

In March 2026, we modified a risk-rated 5 senior life science loan located in Cambridge, MA, with an outstanding principal balance of $100.4 million. The terms of the modification included a $20.2 million principal repayment, and a restructure of the $80.2 million senior loan (after the $20.2 million repayment) into (i) a $62.9 million committed senior mortgage loan (with $35.5 million in unfunded commitment), and (ii) a $17.3 million subordinated note which is subordinate to a new $14.4 million sponsor interest. The restructured senior loan earns a coupon rate of S+3.7% and has a new term of five years. The $17.3 million subordinated note was deemed uncollectible and written off in March 2026. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $65.8 million was risk-rated 3 as of June 30, 2026.

Current wording

In March 2026, we modified a risk-rated 5 senior life science loan located in Cambridge, MA, with an outstanding principal balance of $100.4 million. The terms of the modification included a $20.2 million principal repayment, and a restructure of the $80.2 million senior loan (after the $20.2 million repayment) into (i) a $62.9 million committed senior mortgage loan (with $35.5 million in unfunded commitment), and (ii) a $17.3 million subordinated note which is subordinate to a new $14.4 million sponsor interest. The restructured senior loan earns a coupon rate of S+3.7% and has a new term of five years. The $17.3 million subordinated note was deemed uncollectible and written off in March 2026. The loan modification was accounted for as a new loan for GAAP purposes. The restructured senior loan with an outstanding principal balance of $66.4 million was risk-rated 3 as of September 30, 2026.

Previous wording

Our financing arrangements include our term loan facility, term lending agreements, collateralized loan obligations, secured term loan, warehouse facility, asset specific financing, corporate revolving credit agreement ("Revolver"), non-consolidated senior interest (collectively “Non-Mark-to-Market Financing Sources”) and master repurchase agreements.

Current wording

Our financing arrangements include our term loan facility, term lending agreements, secured term loan, warehouse facility, asset specific financing, corporate revolving credit agreement ("Revolver"), non-consolidated senior interest (collectively “Non-Mark-to-Market Financing Sources”) and master repurchase agreements.

Previous wording

Our Non-Mark-to-Market Financing Sources, which accounted for 79% of our total financing as of June 30, 2026, are not subject to credit or capital markets mark-to-market provisions. The remaining 21% of our total financing, which is comprised of four 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 September 30, 2026, are not subject to credit or capital markets mark-to-market provisions. The remaining 26% of our total financing, which is comprised of four master repurchase agreements, are only subject to credit marks.

Previous 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.

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 commercial real estate 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

Refer to Notes 2 and 7 to our condensed consolidated financial statements for additional discussion of our secured term loan.

Current wording

Refer to Notes 2 and 6 to our condensed consolidated financial statements for additional discussion of our secured term loan.

Previous wording

In 2021, we financed a pool of loan participations from our existing loan portfolio through a managed collateralized loan obligation ("CLO" or "KREF 2021-FL2") and, in 2022, we financed a pool of loan participations from our existing multifamily loan portfolio through a managed CLO ("KREF 2022-FL3"). The CLOs provide us with match-term financing on a non-mark-to-market and non-recourse basis.

Current wording

In 2021, we financed a pool of loan participations from our existing loan portfolio through a managed collateralized loan obligation ("CLO" or "KREF 2021-FL2") and, in 2022, we financed a pool of loan participations from our existing multifamily loan portfolio through a managed CLO ("KREF 2022-FL3"). The CLOs provided us with match-term financing on a non-mark-to-market and non-recourse basis.

Previous wording

Covenants— Each of our repurchase facilities, term lending agreements, warehouse facility and our Revolver contain customary terms and conditions, including, but not limited to, negative covenants relating to restrictions on our operations with respect to our status as a REIT, and financial covenants, such as:

Current wording

Covenants— Each of our repurchase facilities, term lending agreements, warehouse facility, asset specific financing, and our Revolver contain customary terms and conditions, including, but not limited to, negative covenants relating to restrictions on our operations with respect to our status as a REIT, and financial covenants, such as:

Previous 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 Condensed 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 Condensed Consolidated Balance Sheets. In June 2025, we sold a portion of the property for $6.0 million and recognized a realized gain of

Current wording

Portland, OR Retail /Redevelopment—In December 2021, we took title to a Portland retail property and recorded the property and its net assets on the Condensed 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 Condensed Consolidated Balance Sheets. As of September 30, 2026, we have a priority of distributions up to $84.9 million before the JV Partner can participate in the economics of the REO JV.

Previous 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 Condensed 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.

Current wording

Mountain View, CA Office —In June 2024, we and a 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. Our interest 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 Condensed 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, 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 Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. Portions of the portfolio were sold in June 2024 and May 2025. The May 2025 sale resulted in a realized gain of $0.5 million. As of June 30, 2026, there was one office property remaining.

Current wording

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 Condensed Consolidated Balance Sheets based on the estimated fair value of acquired assets and assumed liabilities. Portions of the portfolio were sold in June 2024 and May 2025. As of September 30, 2026, there was one office property remaining.

Previous wording

Seattle, WA Life Science — In June 2024, we and the KKR affiliates took title to a Seattle life science property through a DIL under a Tenant-in-Common ("TIC") agreement. Under the TIC agreement, we and the KKR affiliate held an economic interest of 74.6% and 25.4%, respectively, and shared decision-making. Under ASC 970-810, we accounted for the TIC agreement as an undivided interest in the property and recorded an equity method investment based on our share of the estimated fair value of the property's net assets.

Current wording

Seattle, WA Life Science — In June 2024, we and a KKR affiliate took title to a Seattle life science property through a DIL under a Tenant-in-Common ("TIC") agreement. Under the TIC agreement, we and the KKR affiliate held an economic interest of 74.6% and 25.4%, respectively, and shared decision-making. Under ASC 970-810, we accounted for the TIC agreement as an undivided interest in the property and recorded an equity method investment based on our share of the estimated fair value of the property's net assets.

Previous wording

Net interest income decreased by $8.0 million during the three months ended June 30, 2026, as compared to the preceding three-month period. This decrease was due to a reduced loan portfolio size as a result of repayments or other resolutions and loans on nonaccrual status. We recorded $2.6 million of deferred loan fees and origination discounts accreted into interest income during the three months ended June 30, 2026, as compared to $4.1 million during the preceding period. In addition, we recorded $2.8 million of deferred financing costs amortization into interest expense during the three months ended June 30, 2026, as compared to $3.5 million for the preceding period.

Current wording

Net interest income decreased by $3.6 million during the three months ended September 30, 2026, as compared to the preceding three-month period. This decrease was due to a reduction in portfolio size as a result of repayments and other resolutions and loans on nonaccrual status. We recorded $3.3 million of deferred loan fees and origination discounts accreted into interest income during the three months ended September 30, 2026, as compared to $2.6 million during the preceding period. In addition, we recorded $2.8 million of deferred financing costs amortization into interest expense during the three months ended September 30, 2026, consistent with the preceding period.

Previous wording

Total other income decreased by $5.6 million during the three months ended June 30, 2026, as compared to the preceding period. This decrease was driven by current period losses on foreign currency forward contracts of $4.2 million partially offset by gains on foreign currency translation of $1.5 million.

Current wording

Total other income increased by $7.2 million during the three months ended September 30, 2026, as compared to the preceding period. This increase was driven by the commencement of a lease at an REO property and current period gains on foreign forward contracts, partially offset by foreign currency translation losses.

Previous wording

Total operating expenses increased by $46.5 million during the three months ended June 30, 2026, as compared to the preceding period. This increase was primarily due to a change in the provision for credit losses and change in fair value related primarily to office loans.

Current wording

Total operating expenses decreased by $113.0 million during the three months ended September 30, 2026, as compared to the preceding period. This decrease was primarily due to a change in the provision for credit losses, and a change in the loss on a commercial real estate loan, held-for-sale.

Previous wording

Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025

Current wording

Nine Months Ended September 30, 2026 Compared to Nine Months Ended September 30, 2025

Previous wording

The following table summarizes the changes in our results of operations for the six months ended June 30, 2026 and June 30, 2025 (amounts in thousands, except per share data):

Current wording

The following table summarizes the changes in our results of operations for the nine months ended September 30, 2026 and September 30, 2025 (amounts in thousands, except per share data):

Previous wording

Net interest income decreased by $17.1 million during the six months ended June 30, 2026, as compared to the corresponding period in the prior year. This decrease was due primarily to a reduced loan portfolio size as a result of repayments or other resolutions and lower index rates. We recorded $6.7 million of deferred loan fees and origination discounts accreted into interest income during the six months ended June 30, 2026, as compared to $7.8 million during the prior year period. In addition, we recorded $6.3 million of deferred financing costs amortization into interest expense during the six months ended June 30, 2026, as compared to $6.1 million during the prior year period.

Current wording

Net interest income decreased by $27.9 million during the nine months ended September 30, 2026, as compared to the corresponding period in the prior year. This decrease was due primarily to a reduction in portfolio size as a result of repayments and other resolutions, and a decrease in benchmark rates. We recorded $10.0 million of deferred loan fees and origination discounts accreted into interest income during the nine months ended September 30, 2026, as compared to $12.1 million during the prior year period. In addition, we recorded $9.1 million of deferred financing costs amortization into interest expense during the nine months ended September 30, 2026, as compared to $10.8 million during the prior year period.

Previous wording

Total other income increased by $1.6 million during the six months ended June 30, 2026, as compared to the prior year period. This increase was due primarily to a $2.4 million increase in revenue from REO operations and gains on foreign currency forward contracts of $2.7 million, partially offset by losses on foreign currency translation of $3.9 million.

Current wording

Total other income increased by $5.5 million during the nine months ended September 30, 2026, as compared to the prior year period. This increase was due primarily to a $4.8 million increase in revenue from REO operations.

Previous wording

Total operating expenses increased by $122.6 million during the six months ended June 30, 2026, as compared to the prior year period. This increase was primarily due to a change in the provision for credit losses and change in fair value related primarily to office loans.

Current wording

Total operating expenses increased by $129.3 million during the nine months ended September 30, 2026, as compared to the prior year period. This increase was primarily due to a change in the provision for credit losses and a loss on a commercial real estate loan, held-for-sale.

Previous wording

We have capitalized our business to date primarily through the issuance and sale of our common stock and preferred stock, borrowings from four master repurchase agreements, and borrowings from our Non-Mark-to-Market Financing Sources, which were comprised of collateralized loan obligations, term lending agreements, term loan facility, secured term loan, asset specific financing, warehouse facility, and Revolver. Our Non-Mark-to-Market Financing Sources, which accounted for 79% of our total financing as of June 30, 2026, are not subject to credit or capital markets mark-to-market provisions. The remaining 21% of our total financing, which are comprised of four master repurchase agreements, are only subject to credit marks.

Current wording

We have capitalized our business to date primarily through the issuance and sale of our common stock and preferred stock, borrowings from four master repurchase agreements, and borrowings from our Non-Mark-to-Market Financing Sources, which were comprised of term lending agreements, term loan facility, asset specific financing, warehouse facility, Revolver, and secured term loan. Our Non-Mark-to-Market Financing Sources, which accounted for 74% of our total financing as of September 30, 2026, are not subject to credit or capital markets mark-to-market provisions. The remaining 26% of our total financing, which are comprised of four master repurchase agreements, are only subject to credit marks.

Previous wording

Our primary sources of liquidity include $83.1 million of cash on our Condensed Consolidated Balance Sheets, $350.0 million of available capacity on our Revolver, $33.8 million of available borrowings under our financing arrangements based on existing collateral, and cash flows from operations. In addition, we had $625.9 million of total unencumbered assets, including $359.9 million of real estate owned assets, $85.0 million of CMBS investments and $181.0 million of unencumbered senior loans, that can be financed, as of June 30, 2026. Our Revolver and secured term loan are secured by corporate level guarantees and include net equity interests in the investment portfolio. We may seek additional sources of liquidity from syndicated financing, other borrowings (including borrowings not related to a specific investment) and future offerings of equity and debt securities.

Current wording

Our primary sources of liquidity include $165.9 million of cash on our Condensed Consolidated Balance Sheets, $600.0 million of available capacity on our Revolver, $34.2 million of available borrowings under our financing arrangements based on existing collateral, and cash flows from operations. In addition, we had $639.5 million of total unencumbered assets, including $366.1 million of real estate owned assets, $85.3 million of CMBS investments and $188.1 million of unencumbered senior loans, that can be financed, as of September 30, 2026. Our Revolver and secured term loan are secured by corporate level guarantees and include net equity interests in the investment portfolio. We may seek additional sources of liquidity from syndicated financing, other borrowings (including borrowings not related to a specific investment) and future offerings of equity and debt securities.

Previous wording

Our primary liquidity needs include our ongoing commitments to repay the principal and interest on our borrowings and to pay other financing costs, financing our assets, meeting future funding obligations, making distributions to our stockholders, funding our operations that includes making payments to our Manager in accordance with the management agreement, and other general business needs. We believe that our cash position and sources of liquidity will be sufficient to meet anticipated requirements for financing, operating and other expenditures in both the short- and long-term, based on current conditions.

Current wording

Our primary liquidity needs include our ongoing commitments to repay the principal and interest on our borrowings and to pay other financing costs, financing our assets, meeting future funding obligations, making distributions to our stockholders, funding our operations that includes making payments to our Manager in accordance with the management agreement, and other general business needs. As part of our operations, we may also from time to time purchase our outstanding debt or equity through open market purchases, privately negotiated transactions or otherwise. Purchases or retirements of debt and/or purchases of equity, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material. We believe that our cash position and sources of liquidity will be sufficient to meet anticipated requirements for financing, operating and other expenditures in both the short- and long-term, based on current conditions.

Previous wording

As described in Note 11 to our condensed consolidated financial statements, we have off-balance sheet arrangements related to VIEs that we account for by either consolidating or by using the equity method of accounting when we hold an economic interest or have a capital commitment. Our maximum risk of loss associated with our interests in these VIEs is limited to the carrying value of our net investment in such entities and any unfunded capital commitments. As of June 30, 2026, we held $24.1 million of net investments in consolidated CMBS trusts, and $33.8 million of interests in a CMBS equity method investment.

Current wording

As described in Note 11 to our condensed consolidated financial statements, we have off-balance sheet arrangements related to VIEs that we account for by either consolidating or by using the equity method of accounting when we hold an economic interest or have a capital commitment. Our maximum risk of loss associated with our interests in these VIEs is limited to the carrying value of our net investment in such entities and any unfunded capital commitments. As of September 30, 2026, we held $24.2 million of net investments in consolidated CMBS trusts, and $34.1 million of interests in a CMBS equity method investment.

Previous wording

We have also entered into an equity distribution agreement with certain sales agents, pursuant to which we may sell, from time to time, up to an aggregate sales price of $100.0 million of our common stock, pursuant to a continuous offering program (the “ATM”), under the Shelf. Sales of our common stock made pursuant to the ATM may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act. During the six months ended June 30, 2026, we did not sell any shares of common stock under the ATM. As of June 30, 2026, $93.2 million remained available for issuance under the ATM.

Current wording

We have also entered into an equity distribution agreement with certain sales agents, pursuant to which we may sell, from time to time, up to an aggregate sales price of $100.0 million of our common stock, pursuant to a continuous offering program (the “ATM”), under the Shelf. Sales of our common stock made pursuant to the ATM may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act. During the nine months ended September 30, 2026, we did not sell any shares of common stock under the ATM. As of September 30, 2026, $93.2 million remained available for issuance under the ATM.

Previous wording

See Notes 5, 6, 7 and 12 to our condensed consolidated financial statements for additional details regarding our secured financing agreements, collateralized loan obligations, secured term loan and stock activity.

Current wording

See Notes 5, 6, 7, and 12 to our condensed consolidated financial statements for additional details regarding our secured financing agreements, secured term loan, collateralized loan obligations and stock activity.

Previous wording

(B) Represents (i) total outstanding debt agreements, secured term loan and collateralized loan obligations, less cash (including loan principal repayments held by servicer); to (ii) KREF's stockholders' equity, in each case, at period end.

Current wording

(B) Represents (i) total outstanding debt agreements, and secured term loan, less cash (including loan principal repayments held by servicer); to (ii) KREF's stockholders' equity, in each case, at period end.

Previous wording

(A) Loan principal repayments held by a servicer at December 31, 2025 were received in January 2026.

Current wording

(A) Loan principal repayments held by a servicer at September 30, 2026 were received in October 2026; those held at December 31, 2025 were received in January 2026.