Mattson added that total financing capacity was $8.2 billion, including $3.5 billion of undrawn capacity, and said 74% of the company’s financing remains non-mark-to-market. He also said KREF has no final facility maturities until 2027 and no corporate debt due until 2030.Chief Executive Officer Matt Salem said the company “made significant progress strengthening our liquidity position throughout 2025,” pointing to multiple capital markets actions. In March, KREF closed a 7-year, $550 million Term Loan B, w ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a GAAP net loss of $32 million or $0.49 per share, with a book value of $13.04 as of December 31 [3] - Distributable earnings were $14 million or $0.22 per share, and a cash dividend of $0.25 was paid for Q4 [3] Business Line Data and Key Metrics Changes - New originations in Q4 totaled $424 million, surpassing repayments of $380 million, indicating a positive trend in loan origination [8] - Over 75% of new originations during the year were concentrated in multifamily and industrial loans, sectors with resilient fundamentals [5] Market Data and Key Metrics Changes - The company ended the year with over $880 million in liquidity, including $85 million in cash and $700 million in undrawn capacity on the corporate revolver [9] - Total financing capacity was $8.2 billion, with a debt-to-equity ratio of 2.2 times and a total leverage ratio of 3.9 times, consistent with target ranges [9] Company Strategy and Development Direction - The company aims to strengthen its liquidity position and has closed a $650 million Term Loan B, reducing the coupon to SOFR plus 250 basis points [4] - A focus on geographic diversification was highlighted, with the first loan in Europe closed, positioning the company to capitalize on relative value across the U.S. and Europe [5] - The company plans to implement an aggressive resolution strategy for watchlist assets and select office assets to compress the discount of stock price to book value [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market improving and highlighted the importance of executing business plans to unlock value in the REO portfolio [6][7] - The dividend policy is under active evaluation as part of broader capital allocation discussions, balancing near-term earnings visibility with long-term shareholder value [7] Other Important Information - The company downgraded certain loans to risk rating 5, resulting in total incremental CECL provisions of $44 million during the quarter [8] - The weighted average risk rating on the portfolio is 3.2, indicating a moderate level of risk across the loan portfolio [9] Q&A Session All Questions and Answers Question: Discussion on accelerating resolutions on watchlist and REO assets - Management acknowledged progress on REO and emphasized the goal of liquidating assets to create a cleaner portfolio, which could lead to better market recognition [12][14] Question: What does success look like by the end of 2026? - Success is defined as monetizing or liquidating the majority of the watchlist and addressing office portfolio issues, with a focus on clarity and resolution [16][18] Question: Concerns about loans that are under-earning in 2026 - Management indicated that while some assets are underperforming, contractual payments are being made, and there is potential upside from resolving REO assets [25][27] Question: Dividend policy and financial analysis - Management confirmed that dividend decisions will be based on empirical financial analysis rather than market sentiment [28][29] Question: Insights on commercial real estate credit demand - Management noted increased allocations to real estate credit and equity, with a shift towards opportunistic and value-add investments [48][50] Question: Impact of rate cuts on REO assets - Management observed that rate cuts are helping liquidity in the market, although the overall sentiment for real estate remains positive [54][55] Question: View on the office sector and attractive loan characteristics - Management emphasized a high bar for office loans, focusing on newer, high-quality assets with stable cash flows [58][59] Question: Expectations for originations and repayments - Management indicated that originations will align with repayments as they execute their resolution strategy, with REO sales potentially increasing portfolio size [60][61]

KKR Real Estate Finance Trust (NYSE:KREF) Q4 2025 Earnings call February 04, 2026 10:00 AM ET Company ParticipantsJack Switala - Head of Investor RelationsMatt Salem - CEOPatrick Mattson - President and COOThomas Catherwood - Managing DirectorConference Call ParticipantsChristopher Muller - AnalystGabriel Poggi - AnalystJade Rahmani - AnalystRichard Shane - AnalystOperatorGood morning and welcome to the KKR Real Estate Finance Trust Incorporated 4th Quarter 2025 Financial Results Conference Call. All partic ...

KKR Real Estate Finance Trust (NYSE:KREF) Q4 2025 Earnings call February 04, 2026 10:00 AM ET Speaker5Good morning and welcome to the KKR Real Estate Finance Trust Incorporated 4th Quarter 2025 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your tel ...

Fourth Quarter & Full Year 2025 Supplemental Information FEBRUARY 3, 2026 Legal Disclosures This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the benefit of its stockholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR Real Estate Finance Trust Inc. and its subsidiaries (collectively, "KREF" or the "Company"). This presentation is not and shall not be construed as an offer ...

KKR Real Estate Finance (KREF) reported $25.79 million in revenue for the quarter ended December 2025, representing a year-over-year decline of 26.6%. EPS of $0.22 for the same period compares to $0.31 a year ago.The reported revenue represents a surprise of -0.07% over the Zacks Consensus Estimate of $25.81 million. With the consensus EPS estimate being $0.13, the EPS surprise was +69.23%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectatio ...

KKR Real Estate Finance (KREF) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +69.23%. A quarter ago, it was expected that this real estate finance company would post earnings of $0.01 per share when it actually produced a loss of $0.03, delivering a surprise of -400%.Over the last f ...

Capital Structure and Investment Portfolio - Total committed capital base reached $838.1 million, fully drawn prior to the IPO which generated net proceeds of $225.9 million on May 5, 2017 [20]. - As of December 31, 2025, the aggregate investment portfolio totaled $5,924.2 million, primarily comprised of $5,361.9 million in senior commercial real estate loans [32]. - KKR reported $723.2 billion of assets under management (AUM) as of September 30, 2025, providing significant advantages in sourcing and managing investments [24]. - KKR Real Estate had $84.6 billion of AUM as of September 30, 2025, enhancing the company's access to capital and strategic partnerships [25]. - The company has raised an additional $438.1 million in equity commitments from third-party investors and employees, enhancing its capital base [20]. - The portfolio includes $502.6 million net investment in real estate owned assets (REO) and $44.6 million in CMBS investments [32]. Investment Strategy - The company focuses on originating floating-rate transitional senior loans, with expectations for future investment activity to be heavily weighted toward these loans [32]. - The investment strategy includes targeting loans collateralized by institutional-quality real estate assets located in top markets [27]. - The company’s investment strategy focuses on floating-rate senior loans, which are expected to earn attractive risk-adjusted yields in a rising interest rate environment [52]. Financing and Leverage - Non-Mark-to-Market financing represented 74% of the company's secured financing, totaling $3.5 billion as of December 31, 2025 [44]. - The company refinanced and upsized its secured term loan from $339.5 million to $650.0 million, reducing the spread from S+3.50% to S+2.50% [48]. - The total leverage ratio as of December 31, 2025, was 3.9-to-1, with plans to maintain appropriate leverage levels for the portfolio [50]. - The company’s total portfolio financing outstanding principal was $4.716 billion, with a maximum capacity of $8.207 billion [45]. Regulatory and Operational Considerations - The company operates as a REIT, allowing it to avoid U.S. federal income taxes on distributed net taxable income [22]. - The company expects to continue operating as a REIT, which may limit its expansion opportunities and the manner in which it conducts operations [57]. - The company elected to be treated as a REIT for U.S. federal income tax purposes starting from the taxable year ended December 31, 2014, and expects to continue qualifying as a REIT [57]. - The company may need to forego attractive opportunities to comply with REIT requirements, potentially limiting its expansion [57]. - The company may face risks related to its REIT status and other tax considerations that could impact its operations and financial condition [58]. Competition and Market Environment - The company competes with various institutional lenders and investors, which may affect its ability to generate satisfactory returns [59]. - The company faces competition from various institutional lenders and investors, including other REITs and specialty finance companies, which may limit its ability to generate satisfactory returns [59]. - Changes in the financial regulatory regime could increase competition for investment opportunities previously unavailable to banks and financial institutions [60]. - The company competes with several other REITs that may have overlapping investment objectives and lower costs of funds [59]. Management and Decision-Making - The investment committee includes experienced professionals with over 25 years of commercial real estate experience, ensuring informed decision-making [26]. - The company is externally managed and does not have any employees, with executive officers being employees of the Manager or its affiliates [61]. - The company believes that access to its Manager's and KKR's professionals provides competitive advantages in assessing risks and determining appropriate pricing for investments [60]. Financial Reporting and Transparency - As of December 31, 2025, the company reported a common book value impacted by a CECL allowance of $204.1 million and accumulated depreciation of $5.1 million [36]. - As of December 31, 2025, the company's floating-rate loan portfolio and financing arrangements are benchmarked to Term SOFR, SONIA, or EURIBOR [56]. - The company’s SEC filings are available on its website and can be accessed by investors for financial information [61].

KKR REAL ESTATE FINANCE TRUST INC. REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS New York, NY, February 3, 2026 - KKR Real Estate Finance Trust Inc. (the "Company" or "KREF") (NYSE: KREF) today reported its financial results for the year ended December 31, 2025. Reported net loss attributable to common stockholders of ($32.0) million and ($69.9) million, or ($0.49) and ($1.05) per diluted share of common stock, for the three months and year ended December 31, 2025, respectively. Reported Distr ...

The market expects KKR Real Estate Finance (KREF) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 3, might help the stock move higher if these key numb ...