Each section shows one table with flagged decisions: the table as printed, the extraction output with the flagged cells highlighted — red where the page contradicts the output (defect), gold where the output could not be verified against the page (unverified), green where the extraction added a conventional label the page does not print (total_label_added / header_label_added) — and the reasoning recorded for each. Printed text that reached no output cell is listed as 'header_text_dropped'.
| Item | PAGE |
|---|---|
| Part I - Financial Information | 5 |
| Item 1. Condensed Consolidated Financial Statements (Unaudited) | 5 |
| Condensed Consolidated Balance Sheets (Unaudited) as of March 31, 2026 and December 31, 2025 | 5 |
| Condensed Consolidated Statements of Income (Unaudited) for the Three Months Ended March 31, 2026 and 2025 | 6 |
| Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three Months Ended March 31, 2026 and 2025 | 7 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2026 and 2025 | 8 |
| Notes to Condensed Consolidated Financial Statements (Unaudited) | 10 |
| Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 51 |
| Item 3. Quantitative and Qualitative Disclosures about Market Risk | 75 |
| Item 4. Controls and Procedures | 77 |
| Part II - Other Information | 78 |
| Item 1. Legal Proceedings | 78 |
| Item 1A. Risk Factors | 78 |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 78 |
| Item 3. Defaults Upon Senior Securities | 78 |
| Item 4. Mine Safety Disclosures | 78 |
| Item 5. Other Information | 78 |
| Item 6. Exhibits | 79 |
| Signatures | 80 |
| Line Item | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $ 135,437 | $ 84,617 |
| Commercial real estate loans, held-for-investment | 4,885,906 | 5,347,756 |
| Less: Allowance for credit losses | (258,679) | (201,924) |
| Commercial real estate loans, held-for-investment, net | 4,627,227 | 5,145,832 |
| Commercial real estate loan, held-for-sale | 219,990 | — |
| Real estate owned, held for investment, net | 340,002 | 338,595 |
| Real estate owned assets, held for sale | 131,595 | 130,188 |
| Equity method investments | 147,290 | 147,332 |
| Investments in CMBS securities | 26,800 | — |
| Consolidated variable interest entities assets, CMBS trusts, at fair value | 1,272,193 | 505,230 |
| Other assets | 49,561 | 112,849 |
| Total Assets | $ 6,950,095 | $ 6,464,643 |
| Liabilities and Equity | ||
| Liabilities | ||
| Secured financing agreements, net | $ 2,801,204 | $ 2,862,689 |
| Collateralized loan obligations, net | 1,066,048 | 1,198,332 |
| Secured term loan, net | 631,478 | 632,516 |
| Real estate owned liabilities, held for sale | 2,970 | 3,867 |
| Consolidated variable interest entities liabilities, CMBS trusts, at fair value | 1,247,858 | 496,060 |
| Due to related parties | 5,515 | 6,506 |
| Other liabilities | 42,134 | 39,469 |
| Total Liabilities | 5,797,207 | 5,239,439 |
| Commitments and Contingencies (Note 13) | — | — |
| Equity | ||
| Preferred Stock, $0.01 par value, 50,000,000 shares authorized | ||
| Series A cumulative redeemable preferred stock, (13,110,000 shares issued and outstanding as of March 31, 2026 and December 31, 2025); liquidation preference of $327,750, or $25.00 per share | 131 | 131 |
| Common stock, $0.01 par value, 300,000,000 authorized (64,275,643 shares issued and outstanding as of March 31, 2026; 65,488,680 shares issued and 64,367,737 shares outstanding as of December 31, 2025) | 643 | 644 |
| Additional paid-in capital | 1,678,950 | 1,687,168 |
| Accumulated deficit | (584,080) | (506,130) |
| Repurchased stock (1,120,943 shares repurchased as of December 31, 2025) | — | (9,263) |
| Total KKR Real Estate Finance Trust Inc. Stockholders' Equity | 1,095,644 | 1,172,550 |
| Noncontrolling interests in equity of consolidated joint ventures | 57,244 | 52,654 |
| Total Equity | 1,152,888 | 1,225,204 |
| Total Liabilities and Equity | $ 6,950,095 | $ 6,464,643 |
| Risk Rating | Number of Loans(B) | Outstanding Principal(B) | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total |
|---|---|---|---|---|---|---|---|---|---|
| Commercial Real Estate Loans | |||||||||
| 1 | — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — |
| 2 | 2 | 283,906 | — | — | — | — | — | 283,870 | 283,870 |
| 3 | 41 | 3,847,751 | 236,049 | 920,903 | 90,630 | — | 1,131,556 | 1,459,415 | 3,838,553 |
| 4 | 4 | 283,774 | — | — | — | 205,776 | 43,620 | 35,151 | 284,547 |
| 5 | 4 | 703,510 | — | — | — | — | 229,318 | 469,608 | 698,926 |
| Total | 51 | $ 5,118,941 | $ 236,049 | $ 920,903 | $ 90,630 | $ 205,776 | $ 1,404,494 | $ 2,248,044 | $ 5,105,896 |
| Year-to-date gross write-offs charged | $ — | $ — | $ — | $ — | $ — | $ 17,292 | $ 17,292 |
| Risk Rating | Number of Loans(B) | Outstanding Principal(B) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total |
|---|---|---|---|---|---|---|---|---|---|
| Commercial Real Estate Loans | |||||||||
| 1 | — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — |
| 2 | 2 | 283,906 | — | — | — | — | 283,816 | — | 283,816 |
| 3 | 46 | 4,415,095 | 996,802 | 86,039 | 115,106 | 1,397,773 | 1,671,380 | 138,174 | 4,405,274 |
| 4 | 1 | 90,671 | — | — | 90,671 | — | — | — | 90,671 |
| 5 | 4 | 572,191 | — | — | — | — | 377,883 | 190,112 | 567,995 |
| Total | 53 | $ 5,361,863 | $ 996,802 | $ 86,039 | $ 205,777 | $ 1,397,773 | $ 2,333,079 | $ 328,286 | $ 5,347,756 |
| Year-to-date gross write-offs charged | $ — | $ — | $ — | $ 34,828 | $ — | $ — | $ 34,828 |
| Asset/Liability | Income Statement Location | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|---|
| Asset | |||
| In-place lease intangibles | Expenses from real estate owned operations | $ 17 | $ 17 |
| Liability | |||
| Unfavorable lease intangibles | Revenue from real estate owned operations | 91 | 91 |
| Year | Contractual Lease Payments |
|---|---|
| 2026 | $ 7,427 |
| 2027 | 5,079 |
| 2028 | 3,644 |
| 2029 | 2,814 |
| 2030 | 2,266 |
| Thereafter | 5,975 |
| Item | Secured Financing Agreements, Net |
|---|---|
| Balance as of December 31, 2025 | $ 2,862,689 |
| Principal borrowings | 239,677 |
| Principal repayments | (300,147) |
| Deferred debt issuance costs | (676) |
| Amortization of deferred debt issuance costs | 2,559 |
| Loss (gain) on foreign currency translation | (2,898) |
| Balance as of March 31, 2026 | $ 2,801,204 |
| Year | Nonrecourse(A) | Recourse(A)(B) | Total |
|---|---|---|---|
| 2026 | $ 304,851 | $ 32,500 | $ 337,351 |
| 2027 | 1,043,379 | 202,242 | 1,245,621 |
| 2028 | 185,366 | 27,271 | 212,637 |
| 2029 | 114,956 | 38,319 | 153,275 |
| 2030 | 485,905 | 317,457 | 803,362 |
| 2031 | 41,571 | 13,857 | 55,428 |
| Total | $ 2,176,028 | $ 631,646 | $ 2,807,674 |
| Geography | March 31, 2026 | December 31, 2025 |
|---|---|---|
| New York | 39.8 % | 46.2 % |
| California | 14.8 | 17.4 |
| Arizona | 8.7 | 5.1 |
| Maryland | 7.2 | 9.9 |
| Oregon | 4.0 | 10.0 |
| Florida | 3.2 | 1.4 |
| North Carolina | 2.8 | 2.2 |
| Texas | 2.8 | — |
| Pennsylvania | 2.3 | — |
| Ohio | 1.7 | 1.0 |
| Wisconsin | 1.6 | — |
| Tennessee | 1.2 | 1.2 |
| Massachusetts | 1.2 | — |
| Virginia | 1.1 | — |
| Missouri | 1.1 | — |
| Other | 6.5 | 5.6 |
| Total | 100.0 % | 100.0 % |
| Restricted Stock Units | Weighted Average Grant Date Fair Value Per RSU(A) | |
|---|---|---|
| Unvested as of December 31, 2025 | 1,295,796 | $ 10.14 |
| Granted | — | — |
| Vested | — | — |
| Forfeited / cancelled | (32,418) | 11.28 |
| Unvested as of March 31, 2026 | 1,263,378 | $ 10.11 |
| Related Party | Fee Description | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|---|
| Manager | Management fees | $ 5,511 | $ 5,797 |
| Manager | Expense reimbursements | 1,432 | 1,483 |
| KCM | Structuring fees | — | 425 |
| K-Star | Diligence and servicing fees | 55 | — |
| Total | $ 6,998 | $ 7,705 |
| Item | Principal Balance | Amortized Cost | Carrying Value | Fair Value Level 1 | Fair Value Level 2 | Fair Value Level 3 | Fair Value Total |
|---|---|---|---|---|---|---|---|
| Assets | |||||||
| Cash and cash equivalents | $ 135,437 | $ 135,437 | $ 135,437 | $ 135,437 | $ — | $ — | $ 135,437 |
| Commercial real estate loans, held-for-investment, net | 4,898,951 | 4,885,906 | 4,627,227 | — | — | 4,641,012 | 4,641,012 |
| Commercial real estate loans, held for sale | 219,990 | 219,990 | 219,990 | — | — | 219,990 | 219,990 |
| Consolidated variable interest entities assets, CMBS trusts, at fair value | 1,218,593 | 1,254,366 | 1,265,973 | — | — | 1,265,973 | 1,265,973 |
| Investments in CMBS securities | 26,800 | 26,800 | 26,800 | — | — | 26,800 | 26,800 |
| Foreign currency forward contracts(A) | 5,591 | 5,591 | 5,591 | — | 5,591 | — | 5,591 |
| Total | $ 6,505,362 | $ 6,528,090 | $ 6,281,018 | $ 135,437 | $ 5,591 | $ 6,153,775 | $ 6,294,803 |
| Liabilities | |||||||
| Secured financing agreements, net | $ 2,807,674 | $ 2,801,204 | $ 2,801,204 | $ — | $ — | $ 2,801,204 | $ 2,801,204 |
| Collateralized loan obligations, net | 1,066,134 | 1,066,048 | 1,066,048 | — | — | 1,061,872 | 1,061,872 |
| Secured term loan, net | 645,125 | 631,478 | 631,478 | — | 641,093 | — | 641,093 |
| Consolidated variable interest entities liabilities, CMBS trusts, at fair value | 1,169,320 | 1,230,449 | 1,241,901 | — | — | 1,241,901 | 1,241,901 |
| Total | $ 5,688,253 | $ 5,729,179 | $ 5,740,631 | $ — | $ 641,093 | $ 5,104,977 | $ 5,746,070 |
| Item | Fair Value | Valuation Methodologies | Unobservable Inputs | Weighted Average(A) | Range |
|---|---|---|---|---|---|
| Assets | |||||
| Commercial real estate loans, held-for-investment | $ 4,641,012 | Discounted cash flow | Discount margin | 3.7% | 2.4% - 5.6% |
| Capitalization rate | 8.4% | 5.5% - 11.3% | |||
| Discount rate | 10.8% | 8.8% - 12.5% | |||
| Consolidated variable interest entities assets, CMBS trusts, at fair value | 1,265,973 | Discounted cash flow | Yield | 6.1% | 4.3%- 33.9% |
| Duration (years) | 6.7 | 2.1 - 7.0 | |||
| Liabilities | |||||
| Consolidated variable interest entities liabilities, CMBS trusts, at fair value | $ 1,241,901 | Discounted cash flow | Yield | 6.1% | 4.3% - 33.9% |
| Duration (years) | 6.7 | 2.1 - 7.0 |
| Risk Rating | Number of Loans(A) | Carrying Value | Outstanding Principal | Outstanding Principal % | Number of Loans(A) | Carrying Value | Outstanding Principal | Outstanding Principal % |
|---|---|---|---|---|---|---|---|---|
| 1 | — | $ — | $ — | — % | — | $ — | $ — | — % |
| 2 | 2 | 283,870 | 283,906 | 6 | 2 | 283,816 | 283,906 | 5 |
| 3 | 41 | 3,838,553 | 3,847,751 | 74 | 46 | 4,405,274 | 4,415,095 | 82 |
| 4 | 4 | 284,547 | 283,774 | 6 | 1 | 90,671 | 90,671 | 2 |
| 5 | 4 | 698,926 | 703,510 | 14 | 4 | 567,995 | 572,191 | 11 |
| Total loan receivable | 51 | $ 5,105,896 | $ 5,118,941 | 100 % | 53 | $ 5,347,756 | $ 5,361,863 | 100 % |
| Allowance for credit losses | (258,679) | (201,924) | ||||||
| Loan receivable, net | $ 4,847,217 | $ 5,145,832 |
| Three Months Ended March 31, 2026 | Three Months Ended December 31, 2025 | Increase (Decrease) Dollars | Increase (Decrease) Percentage | |
|---|---|---|---|---|
| Net Interest Income | ||||
| Interest income | $ 95,906 | $ 101,341 | $ (5,435) | (5) % |
| Interest expense | 69,717 | 75,549 | (5,832) | (8) |
| Total net interest income | 26,189 | 25,792 | 397 | 2 |
| Other Income | ||||
| Revenue from real estate owned operations | 4,944 | 4,866 | 78 | 2 |
| Income (loss) from equity method investments | 657 | 413 | 244 | 59 |
| Change in net assets of consolidated variable interest entities, CMBS trusts | 439 | 342 | 97 | 28 |
| Gain (loss) on foreign currency translation | (5,377) | 1,190 | (6,567) | (552) |
| Gain (loss) on foreign currency forward contracts | 6,853 | (1,265) | 8,118 | 642 |
| Other miscellaneous income | 894 | 1,302 | (408) | (31) |
| Total other income | 8,410 | 6,848 | 1,562 | 23 |
| Operating Expenses | ||||
| Provision for credit losses, net | 73,541 | 43,686 | 29,855 | 68 |
| Expenses from real estate owned operations | 8,122 | 6,721 | 1,401 | 21 |
| Management fee to related parties | 5,511 | 5,524 | (13) | — |
| General and administrative | 4,584 | 3,804 | 780 | 21 |
| Total operating expenses | 91,758 | 59,735 | 32,023 | 54 |
| Income (Loss) Before Income Taxes | (57,159) | (27,095) | (30,064) | 111 |
| Income tax expense | — | (156) | 156 | 100 |
| Net Income (Loss) | (57,159) | (26,939) | (30,220) | 112 |
| Net income (loss) attributable to noncontrolling interests | (1,019) | (697) | (322) | (46) |
| Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries | (56,140) | (26,242) | (29,898) | 114 |
| Preferred stock dividends | 5,326 | 5,326 | — | — |
| Participating securities' share in earnings | 415 | 421 | (6) | (1) |
| Net Income (Loss) Attributable to Common Stockholders | $ (61,881) | $ (31,989) | $ (29,892) | 93 |
| Net Income (Loss) Per Share of Common Stock | ||||
| Basic and Diluted | $ (0.96) | $ (0.49) | $ (0.47) | 96 |
| Weighted Average Number of Shares of Common Stock Outstanding | ||||
| Basic and Diluted | 64,673,125 | 65,442,561 | (769,436) | (1) |
| Dividends Declared per Share of Common Stock | $ 0.25 | $ 0.25 | $ — | — |
| Line Item | 2026 | 2025 | Dollars | Percentage |
|---|---|---|---|---|
| Net Interest Income | ||||
| Interest income | $ 95,906 | $ 113,967 | $ (18,061) | (16) % |
| Interest expense | 69,717 | 82,626 | (12,909) | (16) |
| Total net interest income | 26,189 | 31,341 | (5,152) | (16) |
| Other Income | ||||
| Revenue from real estate owned operations | 4,944 | 2,889 | 2,055 | 71 |
| Income (loss) from equity method investments | 657 | (201) | 858 | 427 |
| Change in net assets of consolidated variable interest entities, CMBS trusts | 439 | — | 439 | 100 |
| Gain (loss) on foreign currency translation | (5,377) | — | (5,377) | 100 |
| Gain (loss) on foreign currency forward contracts | 6,853 | — | 6,853 | 100 |
| Other miscellaneous income | 894 | 1,187 | (293) | (25) |
| Total other income | 8,410 | 3,875 | 4,535 | 117 |
| Operating Expenses | ||||
| Provision for credit losses, net | 73,541 | 24,863 | 48,678 | 196 |
| Expenses from real estate owned operations | 8,122 | 5,474 | 2,648 | 48 |
| Management fee to related parties | 5,511 | 5,797 | (286) | (5) |
| General and administrative | 4,584 | 4,831 | (247) | (5) |
| Total operating expenses | 91,758 | 40,965 | 50,793 | 124 |
| Income (Loss) Before Income Taxes | (57,159) | (5,749) | (51,410) | 894 |
| Income tax expense | — | — | — | — |
| Net Income (Loss) | (57,159) | (5,749) | (51,410) | 894 |
| Net income (loss) attributable to noncontrolling interests | (1,019) | (888) | (131) | (15) |
| Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries | (56,140) | (4,861) | (51,279) | 1,055 |
| Preferred stock dividends | 5,326 | 5,326 | — | — |
| Participating securities' share in earnings | 415 | 363 | 52 | 14 |
| Net Income (Loss) Attributable to Common Stockholders | $ (61,881) | $ (10,550) | $ (51,331) | (487) |
| Net Income (Loss) Per Share of Common Stock | ||||
| Basic and Diluted | $ (0.96) | $ (0.15) | $ (0.81) | (540) |
| Weighted Average Number of Shares of Common Stock Outstanding | ||||
| Basic and Diluted | 64,673,125 | 68,765,877 | (4,092,752) | (6) |
| Dividends Declared per Share of Common Stock | $ 0.25 | $ 0.25 | $ — | — |
| Item | Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 |
|---|---|---|
| Management Fees to related parties | $ 5,524 | $ 5,919 |
| Item | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | Thereafter |
|---|---|---|---|---|---|
| Master Repurchase Facilities(A) | $ 1,017,980 | $ 319,785 | $ 385,374 | $ 312,821 | $ — |
| Term Lending Agreements(A) | 708,607 | 65,315 | 277,580 | 365,712 | — |
| Warehouse Facility | — | — | — | — | — |
| Term Loan Facility | 511,934 | 117,352 | 261,050 | 133,532 | — |
| Asset Specific Facility | 369,153 | 90,000 | 279,153 | — | — |
| Revolver(B) | 200,000 | 200,000 | — | — | — |
| Total secured financing agreements | 2,807,674 | 792,452 | 1,203,157 | 812,065 | — |
| Collateralized Loan Obligations | 1,066,134 | — | — | — | 1,066,134 |
| Secured Term Loan | 645,125 | 6,500 | 13,000 | 13,000 | 612,625 |
| Interest payable(C) | 767,936 | 222,359 | 279,264 | 218,624 | 47,689 |
| Future funding obligations(D) | 379,593 | 256,015 | 123,578 | — | — |
| Equity method investment, CMBS B-Pieces | 4,324 | 4,324 | — | — | — |
| Total | $ 5,670,786 | $ 1,281,650 | $ 1,618,999 | $ 1,043,689 | $ 1,726,448 |
| Exhibit No. | Exhibit Description |
|---|---|
| 10.1 | Fifth Amendment to Guaranty Agreement, effective as of March 31, 2026, between KKR Real Estate Finance Holdings L.P. and Morgan Stanley Bank, N.A. |
| 10.2 | Fourth Amendment to Guaranty Agreement, effective as of March 31, 2026, between KKR Real Estate Finance Holdings L.P. and Morgan Stanley Bank, N.A. (as the assignee of all the rights and obligations of MUFG Bank Ltd. under the Program Documents). |
| 10.3 | Eleventh Amendment, dated as of March 31, 2026, to the Credit Agreement among KREF Holdings X LLC, KKR Real Estate Finance Holdings L.P., the lenders party thereto and Morgan Stanley Senior Funding Inc., as administrative agent. |
| 10.4 | Amendment No. 9 to Guarantee Agreement, dated as of March 31, 2026 between Wells Fargo Bank, National Association and KKR Real Estate Finance Holdings L.P. |
| 31.1 | Certificate of Matthew A. Salem, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 | Certificate of Kendra L. Decious, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | Certificate of Matthew A. Salem, Chief Executive Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith). |
| 32.2 | Certificate of Kendra L. Decious, Chief Financial Officer, pursuant to Section 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith). |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File, formatted in Inline XBRL and contained in Exhibit 101. |