#1KKR REAL ESTATE FINANCE TRUST Investor Presentation | November 2021 RUKE#2Legal 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", the "Company", "we", or "us"). This presentation is not and shall not be construed as an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities, any investment advice or any other service by KREF. Nothing in this presentation constitutes the provision of any tax, accounting, financial, investment, regulatory, legal or other advice by KREF or its advisors. This presentation may not be referenced, quoted or linked by website by any third party, in whole or in part, except as agreed to in writing by KREF. 2 This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current views with respect to, among other things, its future operations and financial performance. You can identify these forward looking statements by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, in particular due to the uncertainties created by the COVID-19 pandemic, including the projected impact of COVID-19 on our business, financial performance and operating results. The forward-looking statements are based on the Company's beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control. Such forward-looking statements are subject to various risks and uncertainties, including, among other things: the severity and duration of the COVID-19 pandemic; potential risks and uncertainties relating to the ultimate geographic spread of COVID-19; actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the potential negative impacts of COVID-19 on the global economy and the impacts of COVID-19 on the Company's financial condition and business operations; adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise; the general political, economic and competitive conditions in the United States and in any foreign jurisdictions in which we invest; the level and volatility of prevailing interest rates and credit spreads; adverse changes in the real estate and real estate capital markets; difficulty or delays in redeploying the proceeds from repayments of our existing investments; general volatility of the securities markets in which we participate; changes in our business, investment strategies or target assets; deterioration in the performance of the properties securing our investments that may cause deterioration in the performance of our investments and, potentially, principal losses to us; acts of God such as hurricanes, earthquakes and other natural disasters, pandemics such as COVID-19, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/or losses to us or the owners and operators of the real estate securing our investments; the adequacy of collateral securing our investments and declines in the fair value of our investments; difficulty in obtaining financing or raising capital; difficulty in successfully managing our growth, including integrating new assets into our existing systems; reductions in the yield on our investments and increases in the cost of our financing; defaults by borrowers in paying debt service on outstanding indebtedness; the availability of qualified personnel and our relationship with our Manager; subsidiaries of KKR & Co. Inc. control us and KKR's interests may conflict with those of our stockholders in the future; the cost of operating our platform, including, but not limited to, the cost of operating a real estate investment platform; adverse legislative or regulatory developments; our qualification as a real estate investment trust for U.S. federal income tax purposes and our exclusion from registration under the Investment Company Act of 1940, as amended; and authoritative accounting principles generally accepted in the United States of America or policy changes from such standard-setting bodies such as the Financial Accounting Standards Board, the Securities and Exchange Commission (the "SEC"), the Internal Revenue Service, the New York Stock Exchange and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business; and other risks and uncertainties, including those described under Part I-Item 1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in this presentation. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this presentation and in the Company's filings with the SEC. All forward looking statements in this presentation speak only as of November 10, 2021. KREF undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law. All financial information in this presentation is as of September 30, 2021 unless otherwise indicated. This presentation also includes non-GAAP financial measures, including Distributable Earnings and Distributable Earnings per Diluted Share. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with U.S. GAAP. KKR REAL ESTATE FINANCE TRUST#3KKR Real Estate Finance Trust Inc. Overview Best In Class Portfolio $5.8 Billion Investment Portfolio 98% Senior Loans $136 Million Average Loan Commitment(1) 71% Multifamily & Office 98% Performing Purpose built portfolio of senior loans secured primarily by transitional, institutional multifamily and office properties owned by high quality sponsors. Conservative Balance Sheet $6.7 Billion Financing Capacity 81% Fully Non-Mark-to-Market(2) $516 Million Current Liquidity (3) Conservative liability management focused on diversified non-mark-to-market financing capacity KREF's Manager Fully Integrated with KKR 23% KKR Ownership in KREF(4) $459 Billion $25 Billion Global AUM Balance Sheet ~$38 Billion Real Estate AUM(5) 135+ Real Estate Professionals(4) One firm culture that rewards investment discipline, creativity, determination and patience and emphasizes the sharing of information, resources, expertise and best practices (1) (2) Average loan commitment is inclusive of the unfunded commitment. Based on outstanding face amount of secured financing, including non-consolidated senior interests, and excludes convertible notes and the corporate revolving credit facility. 100% of financings are non-mark-to-capital markets marks. (3) Includes $307.7 million in cash, $185.0 million undrawn corporate revolver capacity, and $18.1 million of available borrowings based on existing collateral. (4) As of November 2021. (5) Figures represent AUM across all KKR real estate transactions. 3 KKR REAL ESTATE FINANCE TRUST#41 Investment Highlights 2 KKR 4 Cycle Tested, Experienced Leadership Team Sponsorship 3 Differentiated Investment Strategy 息 E Mi 4 Best in Class Investment Portfolio $ KKR Real Estate Finance Trust ("KREF") benefits from its Hir .. integration within KKR's broader Real Estate platform ** 5 % Conservative Liability Management 6 Earnings Power from LIBOR Floors KKR REAL ESTATE FINANCE TRUST#5KKR Sponsorship LO 5 KKR REAL ESTATE FINANCE TRUST#6KKR Platform - A Leading Global Asset Manager KKR Founded 1976 (1) $459bn Assets Under Management KKR operates with a single culture that rewards investment discipline, creativity, determination and patience and emphasizes the sharing of information, resources, expertise and best practices across offices and asset classes. (2) (3) 6 $25bn Internal Balance Sheet ~757 Investment Professionals 0000 21 / 15 Cities / Countries KKR Real Estate Attributes ~$38 billion in AUM in Real Estate strategies globally(¹) 135+ dedicated Real Estate investment and asset management professionals (2) across 12 cities in 9 countries Strategic Growth Vertical: ~$3.2 billion of KKR balance sheet and employee capital committed across KKR real estate strategies (3) Figures represent AUM across all KKR real estate transactions since 2011; strategies include Real Estate Partners Americas, Real Estate Partners Europe, Asia Real Estate Partners, Property Partners Americas, Real Estate Credit, Global Atlantic assets, Real Estate NBFC, Private Equity funds, Special Situations, trophy single tenant investments in KKR Credit accounts, Balance Sheet investments and a pro rata portion of DRM's AUM ($424 million). KKR does not act as an investment adviser to Drawbridge or any of its portfolio investments. Please see the Important Information at the beginning of this presentation for additional information regarding KKR's investment in DRM and Drawbridge and the calculation of AUM. As of November 2021. Includes investment and asset management professionals. Inception to date Balance Sheet commitments include Balance Sheet, KKR Financial Holdings LLC ("KFN") and KKR Employee Commitments to all RE transactions since inception of dedicated RE business in March 2011 including transactions in Special Situations and Asian Private Equity funds. KKR REAL ESTATE FINANCE TRUST#7Integrated Americas Real Estate Platform (2) (3) (4) 7 Integrated Real Estate Platform ● Differentiated access to information and enhanced relevance in RE capital markets One leadership team Scaled portfolio: own or lend on ~$130bn of RE assets RE Equity ~$16bn of asset value(¹) RE Senior Loans ~$19bn loan portfolio ~$32bn of collateral value(2) RE CMBS Securities ~$49bn principal loan balance ~$81bn underlying asset value(2) REPA I / II / III: opportunistic KPPA: core+ KREST: core+ KREF: primarily senior loans on transitional properties in the top 15 MSAS ROX(3): real estate opportunistic credit Global Atlantic(4): primarily senior loans RECOP I / II: primarily non-IG conduit CMBS RESTAC: SASB CMBS Global Atlantic(4): Liquid IG and Non-IG CMBS (1) Represents current portfolio in Real Estate Partners Americas ("REPA I"), Real Estate Partners Americas II ("REPA II,") KPPA, KKR Financial Holdings ("KFN"), separately managed accounts, KKR-managed co-investment vehicles, third party co-investment capital, KKR employees, equity investments in KKR Real Estate Select Trust ("KREST"), and trophy single tenant investments in KKR Credit accounts. Represents total gross asset value. Figures include all closed transactions and transactions that have been committed to and are under contract as of September 30, 2021. Any transactions that have not closed are subject to customary closing conditions. There can be no assurance that commitment amounts will be fully deployed and there can be no assurance that these transactions will be consummated, and if consummated, will be consummated on the terms and price herein. Represents implied value based on weighted average LTV of respective strategies. Represents real estate credit allocation within the KKR Dislocation Opportunities Fund LP. On February 1, 2021, KKR completed its acquisition of Global Atlantic. KKR holds all of the voting interests in Global Atlantic and owns 61.5% of the economic equity interests in Global Atlantic, following the completion of certain post-closing purchase KKR price adjustments in the second quarter of 2021. Global Atlantic conducts its insurance business through its subsidiaries that are regulated insurance companies. REAL ESTATE FINANCE TRUST#8KREF Integration with KKR KREF differentiates itself by seeking opportunities where it has sourcing, underwriting and execution advantages through KKR's brand, industry knowledge, relationships and deep bench of investment professionals KKR Private Equity $105BN of AUM, ~199 professionals globally, 100+ portfolio companies globally KKR Global Macro & Asset Allocation ~30 professionals globally, insight on macro market observations and MSA analytics KKR Senior Advisors(¹) ~70 advisors globally, including three dedicated real estate advisors ® KKR REAL ESTATE FINANCE TRUST % 18 (1) Senior Advisors, Industry Advisors and KKR Advisors are engaged as consultants and are not employees of KKR. 8 KKR Credit $185BN of AUM, ~166 professionals globally, sourcing & UW synergies KKR Capital Markets ~51 professionals globally, sourcing and structuring expertise KKR Public Affairs ~23 professionals globally, stakeholder relations Integration Drives Meaningful Benefits to KREF $ Deep network of direct relationships to source high-quality investments Differentiated credit assessment capabilities Solutions provider for complex business plans offering speed and certainty Best-in-class financing creates attractive risk- adjusted returns KKR REAL ESTATE FINANCE TRUST#9Experienced Leadership Team 9 KKR REAL ESTATE FINANCE TRUST#10KKR Real Estate Credit Investment Committee 10 Diversity of Manager's Investment Committee creates a thorough vetting process ● ● KREF Management Team ● MATT SALEM CEO KREF Partner & Head of Real Estate Credit Joined KKR in 2015 Formerly at Rialto Capital Management and Goldman Sachs JENNY BOX Partner & Co-Head of Special Situations Americas • Joined KKR in 2019 Formerly at Oaktree and Blackstone ● ● ● ● PATRICK MATTSON President & COO KREF Managing Director & COO of Real Estate Credit Joined KKR in 2015 Formerly at Rialto Capital Management and Morgan Stanley BILLY BUTCHER Partner & Chief Operating Officer of Global Real Estate Joined KKR in 2004 Formerly at Goldman Sachs ● ● ● RALPH ROSENBERG Chairman of KREF Board Partner & Global Head of Real Estate KREF Directors Joined KKR in 2011 Formerly at Eton Park and Goldman Sachs ROGER MORALES Partner & Head of Real Estate Acquisitions Americas Joined KKR in 2011 Formerly at Eton Park and Vornado Realty Trust ● ● ● CHRIS LEE Vice Chairman of KREF Board Partner & Head of Real Estate Americas Joined KKR in 2012 Formerly at Apollo Global Management and Goldman Sachs JUSTIN PATTNER Partner & Head of Real Estate Equity Americas Joined KKR in 2011 Formerly at Eton Park and Lubert Adler KKR REAL ESTATE FINANCE TRUST#11KKR Real Estate Finance Trust Team Leadership Team Senior Investment Team JOEL TRAUT Managing Director Head of Originations RALPH ROSENBERG Chairman of the Board Joined KKR in 2015 Formerly a Director at GE Capital Real Estate with over 18 years industry experience Asset Management 11 CHRISTINE PATTERSON Director Head of Asset Management Joined KKR in 2018 Formerly a Principal at Blackstone with over 20 years industry experience JULIA BUTLER Managing Director Northeast & Midwest Regions Joined KKR in 2017 Formerly an Executive VP at iStar with over 18 years industry experience JASON KELLEY CHRIS LEE Vice Chairman of the Board Director New York Portfolio Management PAUL FINE Director Northeast & Northwest Regions Joined KKR in 2015 Formerly a Director at CCRE with over 14 years industry experience Legal Joined KKR in 2021 Formerly head of credit for the real estate credit group at Global Atlantic with over 20 years industry experience MATT SALEM Chief Executive Officer RACHEL HUNTER-GOLDMAN Director Northeast and Southeast Regions Joined KKR in 2021 Formerly a Principal at Apollo Global Management with over 9 years industry experience VINCENT NAPOLITANO Director General Counsel & Secretary Joined KKR in 2020 Formerly an Associate at Skadden, Arps with over 10 years industry experience PATRICK MATTSON President & Chief Operating Officer IAN MCCONNELL Director West Coast Region Joined KKR in 2020 Formerly a Senior VP at Starwood Property Trust with over 15 years industry experience Capital Markets & Investor Relations JACK SWITALA Principal Investor Relations & Equity Capital Markets Joined KKR in 2021 Formerly a Vice President at Wells Fargo Securities with over 8 years industry experience MOSTAFA NAGATY Chief Financial Officer & Treasurer ADAM SIMON Director Northeast & Southwest Regions Joined KKR in 2015 Formerly a VP at Rialto Capital Management with over 14 years industry experience 50 + JULIAN HODGEMAN Principal Southeast & Southwest Regions Joined KKR in 2015 Formerly an associate at Rialto Capital Management with over 11 years industry experience Investment Professionals Finance, Investor Relations & Capital Markets Professionals KKR REAL ESTATE FINANCE TRUST#12Differentiated Investment Strategy 12 KKR REAL ESTATE FINANCE TRUST#13Differentiated, Conservative Investment Strategy Lending on institutional quality real estate owned by high-quality sponsors in the most liquid markets Institutional Quality Commercial Real Estate R Average Loan Size $136mm % of Portfolio Office / Multifamily Loans 71% Average Occupancy of Office / Multifamily Loans 81% Construction Loans * 5% Most Liquid Markets, with Strong Underlying Fundamentals Top 15 MSAS 81% Top 20 MSAS 92% Note: The data above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. (1) 1/1/2020 9/30/2021. 13 High-Quality, Experienced & Well-Capitalized Sponsors Select Examples: AUM, Top 10 Publicly Traded Global Asset Manager $100bn+ Market Capitalization, Top 5 Global Investment Bank $50bn+ Units, Top Regional Multifamily Developer and Operator 15,000+ 2020 2021 YTD Repeat Borrowers(¹) 45% KKR REAL ESTATE FINANCE TRUST#14Conservative Portfolio Construction 100% 80% 60% 40% 20% 0% ($ in Millions) $150 $100 $50 $0 27% 6% 67% At IPO $62 At IPO Investment Portfolio <1% 99% 3Q'20 $148 <2% 3Q'20 98% Average Loan Commitment(¹) 3Q'21 Senior Loan Non-Senior/ Other Loan Securities $136 3Q'21 Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine/other loans. (1) Average loan commitment is inclusive of the unfunded commitment. 14 100% 80% 60% 40% 20% 0% 25% 20% 15% 10% 5% 0% 62% 31% At IPO 23% Property Type At IPO 83% 8% 3Q'20 9% 71% 3Q'20 8% Future Funding as a Percentage of Total Commitments 3Q'21 ■Multifamily and Office Hospitality and Retail 17% 3Q'21 KKR REAL ESTATE FINANCE TRUST#15Targeted Strike Zone 15 Representative Terms on Newly-Originated Senior Loans Loan Size $50-$400 million Collateral Primarily Transitional CRE Properties Sponsorship Well-Established, Capitalized & Experienced Geographies Top 30 U.S. Markets Property Types Multifamily, Office, Life Science, Industrial, Hospitality, Retail, and Other Commercial Property Types Loan-to-Value Typically 75% or less Maturity 2-3 years with Extension Options Representative Pricing L+2.75 -4.00% with LIBOR Floors Fees Typically 1.00% Upfront Discount + Extension Fees --- Key Attributes of KREF's Investments Primarily Larger, Floating-Rate Senior Loans Institutional Sponsors Major Markets High-Quality Real Estate KKR REAL ESTATE FINANCE TRUST#16Rigorous Investment Screening and Selection Process Over the last twelve months, KREF screened $121.0 billion of financing opportunities and originated $3.6 billion (3%) of senior loans (1) LTM as of 9/30/21, values represent approximations. 16 Large opportunity set funneled through rigorous screening and approval process Rigorous Screening The "KKR Edge" Deals Screened: $121.0bn (¹) Total Underwritten: $37.6bn(¹) Total Quoted: $30.5bn (1) Total Closed(¹): $3.6bn Multidisciplinary Review KKR REAL ESTATE FINANCE TRUST#17Best In Class Investment Portfolio 17 KKR REAL ESTATE FINANCE TRUST#18KREF Loan Portfolio by the Numbers Current Portfolio: $6.0 billion (1) Including net funding and repayment activity subsequent to quarter-end $1,812 3Q'17 13% Total Portfolio Growth $3,383 3Q'18 7% $5,221 3Q'19 Geography (2) 13% 5% $5,035 3Q'20 13% 9% 7% $5% ($ in Millions) $5,826 3Q'21 12% Other <5%, 16% Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. (1) As of October 22, 2021. Investment Type(3) Class-B 11% Senior Loans 99.1% (4) KREF classifies a loan as life science if more than 50% of the gross leasable area is leased to, or will be converted to, life science-related space. (5) Office property certification % is based on current principal loan balance. See description for LEED certification in the appendix. 18 Class-A 89% Mezz/Other 0.9% Condo Student (Residential) Housing 4% 3% Industrial 5% Hospitality 6% Office (5) Life Science (4) 7% Property Type MARINA LEED OREL 82% Office 27% Interest Rate Type Retail 2% Multifamily 44% Floating 99.9% Single Family Rental <1% Class-B 16% Multifamily (2) Map excludes $5.5 million Midwest Mezzanine portfolio and $31.6 million real estate corporate loan. (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous junior participations in senior loans where KREF has financed a loan with structural leverage through the non-recourse sale of a corresponding first mortgage and excludes vertical loan syndications. Class-A 84% Fixed 0.1% KKR REAL ESTATE FINANCE TRUST#19Multifamily and Office Loan Overview Multifamily: 44% of Loan Portfolio $125 mm Average Loan Size 63% W.A. Occupancy at Closing 69% W.A. LTV 89% (¹) W.A. Occupancy Current 1% Construction Loans Property Locations 2018 Median Year Built Note: Data as of September 30, 2021. (1) Based on most recent data available from our borrowers as of September 30, 2021. 19 Office: 27% of Loan Portfolio $172 mm Average Loan Size 68% W.A. Occupancy at Closing 66% W.A. LTV 70%(¹) W.A. Occupancy Current 2% Co-Working Exposure 6.3 years W.A. Remaining Lease Term Property Locations KKR REAL ESTATE FINANCE TRUST#20Case Studies: Largest Three Multifamily Loans Investment Loan Type Investment Date Collateral Location Committed Amount Current Principal Amount Basis Coupon LTV(¹) Max Remaining Term (Yrs.) Asset Photos Arlington Multifamily Floating-Rate Senior Loan September 2021 912-unit Class-B+ and 198-unit Class-A Multifamily Arlington, VA $381 million $353 million $318k / unit L + 3.2% 69% 5.0 CRYSTAL TOWERS (1) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. 20 Los Angeles Multifamily Floating-Rate Senior Loan February 2021 536-unit Class-A Multifamily Los Angeles, CA $260 million $248 million $463k / unit L + 3.6% 68% 4.4 Sunbelt Multifamily Portfolio Floating-Rate Senior Loan May 2019 3-Property, 1,070-Unit, Class-A Multifamily Various $217 million $215 million $201k / unit L + 3.1% 74% 2.7 KKR REAL ESTATE FINANCE TRUST#21Case Studies: Largest Three Office Loans Investment Loan Type Investment Date Collateral Location Committed Amount Current Principal Amount Basis Coupon LTV(¹) Max Remaining Term (Yrs.) Asset Photos (1) 21 Bellevue Office Floating-Rate Senior Loan September 2021 Class-A Office Totaling 609k SF Bellevue, WA $260 million $47 million $155 / SF L + 3.6% 63% 5.5 Mountain View Office Floating-Rate Senior Loan July 2021 Five Class-A Office Buildings Totaling 446k SF Mountain View, CA $250 million $182 million $592 / SF L + 3.3% 73% 4.9 Minneapolis Office Floating-Rate Senior Loan November 2017 Two Class-A Office Buildings Totaling 1.1mm SF Minneapolis, MN $194 million $194 million $179 / SF L + 3.8% 65% 1.2 LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. For the Bellevue Office, a Class A development project, LTV is based on the appraised as stabilized estimated value upon completion. KKR REAL ESTATE FINANCE TRUST#22Portfolio Credit Quality Remains Strong • Collected 97.4% of interest payments due on loan portfolio and 100% on loans rated 4 or better (% of total loan portfolio) 2Q'21 12% 0% - 60% 3Q'21 16% 0% - 60% 1- 27% 60% - 65% 21% 60% - 65% Loan-to-Value(1,2) 20% 65% - 70% 24% 65% - 70% 29% 70% - 75% 29% 70% - 75% Weighted Average LTV(3): 67% 12% 75% - 80% Weighted Average LTV(3): 67% 10% 75% - 80% I (% of loan portfolio) 2Q'21 0% 1 0 3Q'21 0% 1 4% 2 1 Risk Rating Distribution 9% 2 3 87% 3 42 Loan Count 82% 3 43 7% 4 4 7% 4 4 Weighted Average Risk Rating (³): 3.1 2% Loan Count (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 or by the current principal amount as of the date of the most recent as-is appraised value, except as noted on page 35. (2) Includes non-consolidated senior interests and excludes vertical loan syndications, real estate corporate loan, and a non-performing 5-rated loan that was placed on non-accrual status in October 2020 and is currently in restructuring discussions. (3) Weighted average is weighted by current principal amount. 22 5 2 Weighted Average Risk Rating (³): 3.0 2% 5 2 KKR REAL ESTATE FINANCE TRUST#23Case Studies: Watch List Loans(¹) (Risk Rating 4 & 5) Investment Loan Type Investment Date Collateral Loan Purpose Location Committed Amount Current Principal Amount Loan Basis Coupon LTV(3) Max Remaining Term (Yrs.) Loan Risk Rating Portland Retail (2) Floating-Rate Senior Loan October 2015 1.1M Square Foot Retail Center Refinance Portland, OR $110 million $110 million $101 / SF (2) (4) 0.0 5 New York Condo Floating-Rate Senior Loan December 2018 126-Unit Class-A Residential Condominium Acquisition New York, NY $235 million $207 million $1,292 / SF L + 3.6% 71% 2.3 4 Brooklyn Hotel Floating-Rate Senior Loan January 2019 196-Key Hotel Refinance Brooklyn, NY $77 million $77 million $393k / key L + 2.9% 69% 2.4 4 Queens Industrial Floating-Rate Senior Loan July 2017 Two Class-B Buildings Totaling 595k RSF Acquisition Queens, NY $70 million $67 million $111 / SF L + 3.0% 77% 0.9 4 (1) Excludes $5.5 million mezzanine loan risk-rated 5. (2) Loan was placed on non-accrual status in October 2020, and has a $40.3 million CECL reserve as of September 30, 2021. (3) LTV is based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value. (4) The Portland retail loan is a non-performing 5-rated loan that was placed on non-accrual status in October 2020 and is currently in restructuring discussions. 23 New York Condo Floating-Rate Senior Loan August 2017 7 Luxury Residential Condominiums Refinance New York, NY $42 million $42 million $1,343 / SF L + 4.2% 73% 0.5 4 KKR REAL ESTATE FINANCE TRUST#24Conservative Liability Management 24 KKR REAL ESTATE FINANCE TRUST#25Liability Management: 81% Non-Mark-To-Market IPO Term Credit Facilities 100% 0% Non-MTM Conservative liability management focused on growing diversified non-mark-to-market financing capacity Outstanding Secured Financing(¹) 3Q'20 Asset Specific Financing 1% Senior Loan Interests 4% Secured Term Loan 7% Term Credit Facilities 22% Collateralized Loan Obligation 20% Term Loan Facility 24% Term Lending Agreement 22% 78% Non-MTM Asset Specific Financing 1% Secured Term Loan 7% Senior Loan. Interests 7% (1) Based on outstanding face amount of asset level secured financing, including non-consolidated senior interests, and excludes convertible notes and the corporate revolving credit facility. (2) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions. 25 Term Credit Facilities 19% Term Loan Facility 20% 3Q'21 Collateralized Loan Obligations 24% Term Lending Agreements 22% 81% Non-MTM KKR REAL ESTATE FINANCE TRUST#26Diversified Financing Sources Totaling $6.7 Billion ($ in Millions) Term Credit Facilities Term Lending Agreements Warehouse Facility Asset Specific Financing Secured Term Loan Convertible Notes Corporate Revolving Credit Facility Total Corporate Obligations Term Loan Facility Collateralized Loan Obligations Total Leverage Summary of Outstanding Financing Outstanding Face Amount Weighted Avg. Coupon L+1.7% Maximum Capacity $1,840 $1,213 $500 $300 $298 $144 $335 $4,630 $1,000 $1,095 $6,725 $847 $1,008 $0 $60 $298 $144 $150 $2,507 $904 $1,095 $4,506 L+1.8% n/a L+1.7% L+4.8% (2) 6.1% L+2.0% L+1.6% L+1.3% (1) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions. (2) Secured term loan is open for repricing following its first anniversary. Advance Rate 66.7% 82.1% n/a 78.9% 82.0% 84.3% Non- MTM (1) (3) Represents (i) total outstanding debt agreements (excluding non-recourse term loan facility), secured term loan and convertible notes, less cash to (ii) total permanent equity, in each case, at period end. (4) Represents (i) total outstanding debt agreements, secured term loan, convertible notes, and collateralized loan obligation, less cash to (ii) total permanent equity, in each case, at period end. (5) Based on outstanding face amount of secured financing, including non-consolidated senior interests, which result from non-recourse sales of senior loan interest in loans KREF originated, and excludes convertible notes and the corporate revolving credit facility. 26 1.8x 0.1x 1.7x Leverage Ratios 3.4x 0.2x 3.2x Debt-to-Equity Total Leverage Ratio (3) Ratio (4) CECL Impact Pre-CECL KKR REAL ESTATE FINANCE TRUST#27Financing Overview: Term Credit Facilities ($ in Millions) Counterparty Drawn Capacity Collateral: Loans / Principal Balance Final Stated Maturity (¹) Weighted Average Pricing Weighted Average Advance Mark-to-market (1) Based on extended maturity date. (2) Based on principal balance of financing. 27 WELLS FARGO $495 $1,000 7 Loans / $753 September 2026 L + 1.4% 65.7% Credit Only Morgan Stanley $260 $600 5 Loans / $360 December 2022 L + 2.0% 72.2% Credit Only Goldman Sachs $92 $240 5 Loans / $157 October 2023 L + 2.4% 58.9% Credit Only Property Type(2): Total / Weighted Average Retail 2% Student Housing 7% $847 $1,840 17 Loans / $1,270 L + 1.7% 66.7% Life Condo Science Single Family 2% 1% Industrial 17% Multi- family 33% Rental 1% Office 37% KKR REAL ESTATE FINANCE TRUST#28Liquidity Overview • In addition to the available liquidity below, KREF had $373.7 million of unencumbered senior loans that can be pledged to financing facilities subject to lender approval, as of September 30, 2021. Sources of Available Liquidity ($ in Millions) $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $307.7 Cash $185.0 Undrawn Corporate Revolver $18.1 Approved and Undrawn (¹) Credit Capacity $5.4 Loan Repayment Receivable (2) $516.2 Total Available Liquidity (1) Represents under-levered amounts under financing facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender's consent is required for us to (re)borrow these amounts. (2) Represents net proceeds from loan repayment held by the servicer as of September 30, 2021. Such amount was remitted to KREF in October. 28 KKR REAL ESTATE FINANCE TRUST#29Earnings Power from LIBOR Floors 29 KKR REAL ESTATE FINANCE TRUST#30Portfolio Benefits from Attractive in the Money LIBOR Floors • 99.9% of the loan portfolio is indexed to one-month USD LIBOR • Portfolio benefits from current low rate environment given in-place LIBOR floors 50% of the portfolio is subject to a LIBOR floor of at least 0.75% ✓ Portfolio weighted average LIBOR floor of 1.00% ✓ Only 11% of total outstanding financing, including the Secured Term Loan, is subject to a LIBOR floor greater than 0.0% 30 $0.04 $0.02 $0.00 -$0.02 -$0.04 -$0.06 -$0.08 -$0.10 -$0.12 -$0.14 ($ Impact Per Share / Q) $0.01 $0.01 Net Interest Income Per Share Quarterly Sensitivity to LIBOR LIBOR = 0.00% LIBOR as of 9/30/2021 0.08% $0.00 ($0.03) 2Q21 Loan Portfolio 13Q21 Loan Portfolio LIBOR 0.25% ($0.02) 0.50% ($0.07) ($0.04) 0.75% ($0.10) ($0.06) 1.00% ($0.13) ($0.07) KKR REAL ESTATE FINANCE TRUST#31Recent Operating Performance Net income: Net Income (¹) and Distributable Earnings (2) 3Q'20 $0.56 $31.4 Distributable earnings: $32.5 $0.58 2Q¹21 $29.3 $30.4 $0.52 $0.54 3Q'21 $32.0 $34.5 $0.57 ($ in Millions) $0.62 3Q'20 2Q¹21 3Q'21 Net Income per Diluted Share Distributable Earnings per Diluted Share (1) Represents Net Income attributable to common stockholders. (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. 31 $0.43 3Q'20 Dividend per share: $19.89 $0.43 $0.43 Dividend yield on book value per share: 9.2% 9.1% $1.16 Dividends and Book Value Per Share $18.73 3Q'20 2Q'21 ■BVPS Post-CECL $19.96 $1.05 $18.91 2Q¹21 3Q'21 LCECL Impact $0.43 9.0% $20.16 $1.07 $19.09 3Q'21 KKR REAL ESTATE FINANCE TRUST#32Key Highlights Best in class investment portfolio - 71% multifamily and office; only 2% retail Conservative liability management - 81% diversified non-mark-to-market secured financing Strong liquidity position - Over $516 million of liquidity as of 9/30/21 (1) As of November 2021. 32 TE 11 E T C FE - E KKR REAL ESTATE FINANCE TRUST Fully integrated with KKR; aligned with shareholders - 23% ownership(¹); ~$38bn of real estate AUM Experienced leadership & asset management team - 75+ years of collective experience; portfolio of >50 loans Strong Distributable Earnings Coverage - 1.4x dividend coverage in Q3 2021; 1.3x dividend coverage in 2021 YTD KKR REAL ESTATE FINANCE TRUST#33Appendix 33 KKR REAL ESTATE FINANCE TRUST#34Portfolio Details Senior Loans (¹) 1 Senior Loan 2 Senior Loan 3 Senior Loan 4 Senior Loan 5 Senior Loan 6 Senior Loan Senior Loan Senior Loan Senior Loan (⁹) 10 Senior Loan 11 Senior Loan 12 Senior Loan 13. Senior Loan 14 Senior Loan 15. Senior Loan Senior Loan 16 17 Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan 7 8 9 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Senior Loan Senior Loan (10) Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan 35 Senior Loan 36 Senior Loan 37 Senior Loan 38 33 34 39 40 41 42 Investment 43 44 45 46 Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan 47 48 49 Total / Weighted Average Non-Senior Loans Location Arlington, VA Bellevue, WA Los Angeles, CA Boston, MA Mountain View, CA New York, NY Bronx, NY Various Various Minneapolis, MN Boston, MA Chicago, IL Denver, CO The Woodlands, TX Philadelphia, PA Washington, D.C. Chicago, IL Boston, MA Philadelphia, PA New York, NY Oakland, CA Plano, TX Boston, MA West Palm Beach, FL Fort Lauderdale, FL Fontana, CA Irving, TX Pittsburgh, PA Portland, OR San Diego, CA Denver, CO Brisbane, CA State College, PA Seattle, WA Denver, CO Dallas, TX New York, NY Seattle, WA Austin, TX Mesa, AZ Brooklyn, NY Phoenix, AZ Arlington, VA Denver, CO Queens, NY Washington, D.C. Dallas, TX Austin, TX New York, NY 1 Floating Rate Mezzanine 2 Fixed Rate Mezzanine (¹2) 3 Real Estate Corporate Loan (13) Total / Weighted Average CMBS Total / Weighted Average Portfolio Total / Weighted Average 3Q21 Outstanding Portfolio (14) *See footnotes on subsequent page 34 Westbury, NY Various n/a Property Type Multifamily Office Multifamily Life Science Office Condo (Resi) Industrial Multifamily Industrial Office Office Multifamily Multifamily Hospitality Office Office Office Life Science Office Multifamily Office Office Multifamily Multifamily Hospitality Industrial Multifamily Student Housing Retail Multifamily Industrial Life Science Student Housing Multifamily Multifamily Office Multifamily Office Multifamily Industrial Hospitality Single Family Rental Multifamily Multifamily Industrial Multifamily Multifamily Multifamily Condo (Resi) Multifamily Retail Multifamily Investment Date 9/30/2021 9/13/2021 2/19/2021 5/24/2018 7/14/2021 12/20/2018 8/27/2021 5/31/2019 6/30/2021 11/13/2017 2/4/2021 6/6/2019 8/13/2019 9/15/2021 4/11/2019 12/20/2019 7/15/2019 4/27/2021 6/19/2018 12/5/2018 10/23/2020 2/6/2020 3/29/2019 11/7/2018. 11/9/2018 5/11/2021 4/22/2021 6/8/2021 10/26/2015 2/3/2020 12/11/2020 7/22/2021 10/15/2019 9/7/2018 6/24/2021 1/22/2021 3/29/2018 3/20/2018 12/4/2020 5/4/2021 1/18/2019 4/22/2021 10/23/2020 9/14/2021 7/21/2017 12/4/2020 8/18/2021 9/12/2019 8/4/2017 1/27/2020 6/19/2015 12/11/2020 Total Whole Loan (2) 381.0 520.8 260.0 250.5 362.8 234.5 381.2 216.5 425.0 194.4 375.0 186.0 185.0 183.3 182.6 175.5 170.0 332.3 165.0 163.0 509.9 153.7 138.0 135.0 130.0 119.9 117.6 112.5 109.6 102.3 95.8 95.0 93.4 92.3 88.5 87.0 86.0 80.7 80.0 77.8 77.0 72.1 141.8 70.3 70.1 69.0 68.2 67.5 42.4 $8,527.8 17.0 5.5 79.1 $101.6 Committed Principal Amount (2) Principal Amount 381.0 260.4 260.0 250.5 250.0 234.5 228.7 216.5 212.5 194.4 187.5 186.0 185.0 183.3 182.6 175.5 170.0 166.2 165.0 163.0 159.7 153.7 138.0 135.0 130.0 119.9 117.6 112.5 109.6 102.3 95.8 95.0 93.4 92.3 88.5 87.0 86.0 80.7 80.0 77.8 77.0 72.1 70.9 70.3 70.1 69.0 68.2 67.5 42.4 $7,014.9 17.0 5.5 31.6 $54.1 $40.0 $7,109.0 Current 352.9 47.3 248.0 237.0 182.0 206.9 93.9 214.9 1.7 194.4 187.5 179.5 185.0 168.1 155.6 109.9 133.7 105.9 165.0 148.0 99.5 127.4 137.0 133.4 130.0 42.7 107.0 112.5 109.6 102.3 52.8 84.9 82.1 92.3 88.5 87.0 86.0 80.7 78.7 43.2 77.0 12.8 70.9 69.3 67.1 66.3 68.2 67.5 42.4 $5,736.3 17.0 5.5 31.6 $54.1 $35.7 $5,826.1 Net Equity (3) 78.7 12.6 48.9 48.8 43.7 36.0 92.1 37.1 (0.5) 33.2 37.3 32.3 41.5 166.7 23.3 26.6 22.9 15.9 71.5 22.4 15.7 31.6 56.7 21.9 24.3 13.4 17.7 16.8 89.6 14.9 15.5 16.1 24.3 16.0 16.1 21.0 13.2 13.3 12.5 17.2 16.9 5.0 11.4 12.0 17.0 10.3 9.6 10.4 27.8 $1,479.2 16.9 0.9 31.0 $48.8 $35.7 $1,563.7 Future Funding (4) 28.1 213.1 12.0 13.5 68.0 27.6 134.8 1.6 210.8 3.6 15.2 27.0 65.6 36.3 60.3 - 15.0 9.4 26.3 1.0 1.6 NOI 77.2 10.6 - 43.0 10.1 11.3 - - - 1.3 34.6 - 59.3 1.0 3.0 2.7 - $1,224.9 $0.0 $4.3 $1,229.2 Coupon (5) (6) L + 3.2% L + 3.6% L+ 3.6% L + 3.2% L + 3.3% L + 3.6% L+ 4.1% L + 3.1% L+ 5.4% L + 3.8% L+ 3.3% L+ 3.6% L + 2.8% L + 4.2% L + 2.6% L+3.4% L+3.3% L + 3.6% L + 2.5% L + 2.6% L+ 4.3% L + 2.7% L + 2.7% L + 2.9% L+3.4% L + 4.6% L + 3.3% L + 2.9% L + 5.5% L+ 3.3% L+ 3.8% L + 3.0% L + 2.7% L + 3.4% L+ 3.0% L +3.3% L + 4.0% L+ 4.1% L +3.7% L + 3.2% L + 2.9% L + 4.8% L+ 3.8% L+2.7% L+ 3.0% L + 3.5% L+ 3.8% L + 2.5% L + 4.2% L + 3.3% L + 9.0% 11.0% L + 12.0% 12.3% 4.8% 4.3% Max Remaining Term (Yrs) (5) (7) 5.0 5.5 4.4 2.3 4.9 2.3 4.9 2.7 4.8 1.2 4.4 2.7 2.9 5.0 2.6 3.3 2.9 4.6 1.8 2.2 4.1 3.4 2.5 2.1 2.2 4.7 4.6 4.7 0.0 3.4 4.3 4.9 3.1 1.9 4.8 4.4 1.5 1.5 3.2 4.6 2.4 4.6 4.0 5.0 0.9 4.2 4.9 2.9 0.5 3.3 2.8 3.8 4.2 3.7 7.7 3.3 Loan Per SF / Unit / Key $317,965 / unit $ 155 / SF $ 462,687 / unit $507/SF $ 592 / SF $1,292 / SF $ 114/SF $ 200,802 / unit $14/ SF $ 179/ SF $506/ SF $364,837 / unit $ 311,448 / unit $184,917/key $218 / SF $ 538 / SF $ 129 / SF $ 440 / SF $169/ SF $ 556,391 / unit $306/SF $ 177/ SF $ 351,282 / unit $ 164,321 / unit $ 375,723 / key $ 36 / SF $ 117,836 / unit $ 155,602 / bed $ 101 SF $ 442,965 / unit $35/ SF $ 733 / SF $ 68,782 / bed $ 515,571 / unit. $ 295,000/unit $288/ SF $ 462,366 / unit $ 468 / SF $ 201,695 / unit $50 / SF $ 392,879 / key $ 27,785 / unit $ 392,898 / unit $ 286,157/ unit $ 111 / SF $ 265,132 / unit $ 189,444 / unit $191,218 / unit $ 1,343/ SF(11) $ 451,477 / unit $ 45 / SF n/a LTV(5)(8) 69% 63% 68% 53% 73% 71% 52% 74% 76% 65% 71% 72% 54% 64% 68% 58% 59% 66% 71% 77% 65% 63% 63% 67% 66% 64% 70% 74% n/a 71% 61% 71% 64% 76% 77% 65% 63% 56% 77% 55% 69% 50% 73% 78% 77% 63% 70% 74% 73% 67% 64% n/a n/a n/a 58% 67% Risk Rating 3 3 3 2 3 4 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 5 3 3 3 3 3 3 3 2 3 3 3 4 3 3 3 4 3 3 3 4 3.0 3 5 3 3.2 3.0 $5,826.1 KKR REAL ESTATE FINANCE TRUST#35Portfolio Details Senior loans include senior mortgages and similar credit quality investments, including junior participations in our originated senior loans for which we have syndicated the senior participations and retained the junior participations for our portfolio and excludes vertical loan syndications. (1) (6) (7) (8) (9) ● For Senior Loan 21, the total whole loan is $509.9 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 31% of the loan or $159.7 million, of which $134.7 million in senior notes were syndicated to third party lenders. Post syndication, KREF retained a mezzanine loan with a total commitment of $25.0 million, of which $15.6 million was funded as of September 30, 2021, at an interest rate of L + 12.9%. (2) Total Whole Loan represents total commitment of the entire whole loan originated. Committed Principal Amount includes participations by KKR affiliated entities and third parties that are syndicated/sold. (3) Net equity reflects (i) the amortized cost basis of our loans, net of borrowings and (ii) the cost basis of our investment in RECOP I. (4) Represents Committed Principal Amount less Current Principal Amount on Senior Loans and $4.3 million of unfunded commitment to RECOP I. (5) Weighted averages are weighted by current principal amount for senior loans and non-senior loans and by net equity for our RECOP I CMBS B-Piece investment. Senior Loan 29 and Non-Senior Loans 2 and 3 are excluded from the weighted average LTV. 35 For Senior Loan 11, the total whole loan is $375.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 50% of the loan or $187.5 million, of which a $150.0 million senior note was syndicated to a third party lender. Post syndication, KREF retained a mezzanine loan with a total commitment of $37.5 million, fully funded as of September 30, 2021, at an interest rate of L + 7.9%. ● For Senior Loan 12, the total whole loan is $186.0 million, of which an $81.6 million senior note was syndicated to a third party lender. Post syndication, KREF retained the mezzanine loan and a 45% interest in the senior loan which both totaled $104.4 million commitment, of which $100.7 million was funded as of September 30, 2021, at a blended interest rate of L + 4.7%. For Senior Loan 9, the total whole loan facility is $425.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 50% of the facility or $212.5 million. The facility is comprised of individual cross-collateralized whole loans. As of September 30, 2021, there was one underlying senior loan in the facility with a commitment of $10.4 million and outstanding principal of $1.7 million. (10) Senior Loan 29 was placed on non-accrual status in October 2020. The loan has a $40.3 million CECL reserve as of September 30, 2021. The loan is currently in restructuring discussions. (11) For Senior Loan 49, Loan per SF of $1,343 is based on the allocated loan amount of the residential units. Excluding the value of the retail and parking components of the collateral, the Loan per SF is $1,894 based on allocating the full amount of the loan to only the residential units. (12) For Non-Senior Loan 2, Current Pri ipal Amount is gross of $4.7 million written-off (of amortized cost). (13) Non-Senior Loan 3 is a real estate corporate loan to a multifamily operator. (14) Represents Current Principal Amount of Senior Loans and Non-Senior Loans and Net Equity for our RECOP I CMBS B-Piece equity method investment. L = one-month USD LIBOR rate; greater of (i) spot one-month USD LIBOR rate of 0.08% and (ii) LIBOR floor, where applicable, included in portfolio-wide averages represented as fixed rates. Max remaining term (years) assumes all extension options are exercised, if applicable. For senior loans, loan-to-value ratio ("LTV") LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value; for Senior Loan 6, LTV is based on the initial loan amount divided by the appraised bulk sale value assuming a condo-conversion and no renovation; for Senior Loan 49, LTV is based on the current principal amount divided by the adjusted appraised gross sellout value net of sales cost; for mezzanine loans, LTV is based on the current balance of the whole loan dividend by the as-is appraised value as of the date the loan was originated; for RECOP I CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance; for Senior Loans 2, 7, 9, 26, 31, 40, 42 and Mezzanine Loan 1, LTV is calculated as the total commitment amount of the loan divided by the as-stabilized value as of the date the loan was originated. Senior Loan 29 is a non-performing 5-rated loan that was placed on non-accrual status in October 2020. The loan is currently in restructuring discussions. KKR REAL ESTATE FINANCE TRUST#36Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 3.3 years (1) ($ in Millions) $2,500 $2,000 $1,500 $1,000 $500 $0 $152.0 2021 (1) Excludes RECOP I CMBS B-Piece investment. 36 $261.5 2022 Fully Extended Loan Maturities (¹) $835.4 2023 $1,772.0 2024 $613.5 2025 $2,108.9 2026 $47.3 2027 KKR REAL ESTATE FINANCE TRUST#37Consolidated Balance Sheets (in thousands - except share and per share data) Assets Cash and cash equivalents Commercial real estate loans, held-for-investment Less: Allowance for credit losses Commercial real estate loans, held-for-investment, net Equity method investments Accrued interest receivable Other assets (1) Total Assets Liabilities and Equity Liabilities Secured financing agreements, net Collateralized loan obligations, net Secured term loan, net Convertible notes, net Loan participations sold, net Dividends payable Accrued interest payable Due to affiliates Accounts payable, accrued expenses and other liabilities (2) Total Liabilities Commitments and Contingencies Temporary Equity Redeemable preferred stock Permanent Equity Preferred Stock, 50,000,000 shares authorized Preferred stock, $0.01 par value (1 share issued and outstanding as of September 30, 2021 and December 31, 2020) Series A cumulative redeemable preferred stock, $0.01 par value, (6,900,000 and zero shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively; liquidation preference of $25.00 per share) Common stock, $0.01 par value, 300,000,000 authorized (59,537,806 and 59,519,754 shares issued; 55,637,480 and 55,619,428 shares outstanding as of September 30, 2021 and December 31, 2020, respectively) Additional paid-in capital Accumulated deficit Repurchased stock (3,900,326 shares repurchased as of September 30, 2021 and December 31, 2020) Total KKR Real Estate Finance Trust Inc. stockholders' equity Total Permanent Equity Total Liabilities and Equity September 30, 2021 $ $ $ 307,731 5,442,734 (58,807) 5,383,927 34,809 13,924 13,107 5,753,498 2,960,833 1,086,900 287,051 141,502 24,285 7,495 5,190 3,065 4,516,321 2,589 69 556 1,341,986 (47,024) (60,999) 1,234,588 1,234,588 5,753,498 $ (1) Includes $8.2 million and $15.9 million of loan repayment proceeds held by the servicer and receivable by KREF, as of September 30, 2021 and December 31, 2020, respectively. (2) Includes $0.9 million of expected loss reserve for unfunded loan commitments as of September 30, 2021 and December 31, 2020. 37 December 31, 2020 $ $ $ $ 110,832 4,844,534 (59,801) 4,784,733 33,651 15,412 20,984 4,965,612 2,574,747 810,000 288,028 140,465 66,232 24,287 5,381 6,243 4,823 3,920,206 1,852 556 1,169,695 (65,698) (60,999) 1,043,554 1,043,554 4,965,612 KKR REAL ESTATE FINANCE TRUST#38Consolidated Statements of Income (in thousands - except share and per share data) Net Interest Income Interest income Interest expense Total net interest income Other Income Income (loss) from equity method investments Other income Total other income (loss) Operating Expenses General and administrative Provision for (reversal of) credit losses, net Management fees to affiliate Incentive compensation to affiliate Total operating expenses Income (Loss) Before Income Taxes, Preferred Dividends and Redemption Value Adjustment Income tax expense Net Income (Loss) Preferred Stock dividends and redemption value adjustment Net Income (Loss) Attributable to Common Stockholders 38 Net Income (Loss) Per Share of Common Stock, Basic Net Income (Loss) Per Share of Common Stock, Diluted Weighted Average Number of Shares of Common Stock Outstanding, Basic Weighted Average Number of Shares of Common Stock Outstanding, Diluted Dividends Declared per Share of Common Stock September 30, 2021 $ $ A A $ 75,320 29,832 45,488 2,162 130 2,292 3,659 1,165 4,964 2,215 12,003 35,777 106 35,671 3,682 31,989 0.57 0.57 55,637,480 56,011,243 0.43 Three Months Ended $ $ June 30, 2021 67,149 26,958 40,191 1,256 100 1,356 3,688 (559) 4,835 2,403 10,367 31,180 103 31,077 1,813 29,264 0.53 0.52 55,632,322 55,907,086 0.43 September 30, 2020 $ $ $ $ 67,689 28,832 38,857 973 102 1,075 3,563 (126) 4,223 990 8,650 31,282 96 31,186 (165) 31,351 0.56 0.56 55,491,405 55,632,170 0.43 September 30, 2021 September 30, 2020 $ A Nine Months Ended $ 207,235 84,173 123,062 4,508 296 4,804 10,852 (982) 14,089 6,810 30,769 97,097 257 96,840 6,403 90,437 1.63 1.62 55,629,810 55,883,197 1.29 $ $ 205,987 98,477 107,510 (631) 658 27 11,376 53,782 12,740 3,845 81,743 25,794 255 25,539 762 24,777 0.44 0.44 56,107,765 56,187,461 1.29 KKR REAL ESTATE FINANCE TRUST#39Reconciliation of GAAP Net Income to Distributable Earnings (in thousands - except share and per share data) Net Income (Loss) Attributable to Common Stockholders Adjustments Non-cash equity compensation expense Unrealized (gains) or losses (¹)(2) Provision for (Reversal of) credit losses, net Non-cash convertible notes discount amortization Distributable Earnings (³) Weighted Average Shares Outstanding Basic Diluted Distributable Earnings per Weighted Average Share, Basic (³) Distributable Earnings per Weighted Average Share, Diluted (3) September 30, 2021 31,989 39 LA LA 2,027 (748) 1,165 91 34,524 55,637,480 56,011,243 0.62 0.62 Three Months Ended June 30, 2021 29,264 1,994 (364) (559) 90 30,425 55,632,322 55,907,086 0.55 0.54 September 30, 2020 31,351 1,390 (1) Includes $0.3 million, ($0.2) million, and ($0.3) million non-cash redemption value adjustment of our SNVPS during 3Q'21, 2Q'21 and 3Q'20, respectively. (2) Includes ($1.0) million, ($0.1) million, and $0.1 million of unrealized loss (gain) on RECOP I, an equity method investment, during 3Q'21, 2Q'21,and 3Q'20, respectively. (3) The Company has a $40.3 million, or $0.72 per share, allowance for credit losses against one 5-rated retail loan with an outstanding principal balance of $109.6 million as of September 30, 2021. Such unrealized loss has not been reflected in distributable earnings. (178) (126) 91 32,528 55,491,405 55,632,170 0.59 0.58 KKR REAL ESTATE FINANCE TRUST#40Key Definitions "Distributable Earnings": Commencing for all periods ending on or after December 31, 2020, the Company has elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental basis to KREF's net income as determined in accordance with GAAP as the Company believes it would be useful to investors in evaluating the Company's operating performance and its ability to pay its dividends. Distributable Earnings replaces the Company's prior presentation of Core Earnings, and Core Earnings presentations from prior reporting periods have been recast as Distributable Earnings. The Company defines Distributable Earnings as net income (loss) attributable to stockholders or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items agreed upon after discussions between the Company's Manager and board of directors and after approval by a majority of the independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings only applies to debt investments related to real estate to the extent the Company forecloses upon the property or properties underlying such debt investments. While Distributable Earnings excludes the impact of the unrealized current provision for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is 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) with respect to any amounts due under any loan, when such amount is determined to be non-collectible. Distributable Earnings should not be considered as a substitute for GAAP net income. The Company cautions readers that its methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITS to calculate the same or similar supplemental performance measures, and as a result, the Company's reported Distributable Earnings may not be comparable to similar measures presented by other REITS. LEED: LEED is the most widely used green building rating system in the world. LEED certification provides independent verification of a building or neighborhood's green features, allowing for the design, construction, operations and maintenance of resource-efficient, high-performing, healthy, cost-effective buildings. 40 KKR REAL ESTATE FINANCE TRUST