KKR Real Estate Finance Trust (KREF) - 2025 Q3 - Quarterly Results

Financial Performance - Reported net income attributable to common stockholders of $8.1 million, or $0.12 per diluted share, for Q3 2025, compared to a net loss of ($35.4) million, or ($0.53) per diluted share, for Q2 2025 [3] - Distributable Loss for Q3 2025 was ($2.3) million, or ($0.03) per diluted share, an improvement from a Distributable Loss of ($2.9) million, or ($0.04) per diluted share, in Q2 2025 [4] Liquidity and Borrowing Capacity - Liquidity position of $933.0 million as of September 30, 2025, including $204.1 million in cash and $700.0 million in undrawn capacity on the corporate revolving credit agreement [7] - Increased borrowing capacity of the corporate revolving credit facility by $40.0 million to $700.0 million, enhancing funding flexibility [6] Loan Portfolio - Originated and funded $131.9 million in floating-rate loans with a weighted average loan-to-value (LTV) ratio of 61% and a coupon of S+3.2% [7] - Current loan portfolio totals $5.3 billion, with 99% being floating rate and a weighted average unlevered all-in yield of 7.8% [7] - Resolved a risk-rated 5 loan by taking title to a multifamily property in Raleigh, NC, resulting in a realized loss of $14.4 million [7] - Collected 100% of interest payments due on the loan portfolio, with an average risk rating of 3.1 [7] Shareholder Value - Common book value of $902.0 million, or $13.78 per share, as of September 30, 2025, inclusive of a CECL allowance of $160.4 million [7] - Repurchased and retired 448,877 shares at an average price of $9.41 for a total of $4.2 million [7] Distributable Earnings - Distributable Earnings is a key indicator of the Company's ability to generate sufficient income to pay quarterly dividends, which is crucial for yield/income investors [21] - Distributable Earnings is defined as net income attributable to common stockholders, adjusted for certain non-cash items and one-time events, providing a clearer picture of performance [22] - The calculation of Distributable Earnings excludes non-cash equity compensation, depreciation, amortization, unrealized gains or losses, and specific non-cash items agreed upon by the board [22] - The Company warns that its methodology for calculating Distributable Earnings may differ from other REITs, making comparisons potentially misleading [23]