#1A HID LUTP T UNING INTENDE ATENTAT ETE THE BANE BISTAIN ST FRESE KKR REAL ESTATE FINANCE TRUST KKR Real Estate Finance Trust Inc. Investor Presentation | November 2020 Hi#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" or the "Company"). 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. 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; 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; difficulty or delays in redeploying the proceeds from repayments of our existing investments; the general political, economic and competitive conditions in the United States and in any foreign jurisdictions in which the Company invests; the level and volatility of prevailing interest rates and credit spreads; adverse changes in the real estate and real estate capital markets; general volatility of the securities markets in which the Company participates; changes in the Company's business, investment strategies or target assets; difficulty in obtaining financing or raising capital; adverse legislative or regulatory developments; reductions in the yield on the Company's investments and increases in the cost of the Company's financing; 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 the Company or the owners and operators of the real estate securing the Company's investments; deterioration in the performance of properties securing the Company's investments that may cause deterioration in the performance of the Company's investments and, potentially, principal losses to the Company; defaults by borrowers in paying debt service on outstanding indebtedness; the adequacy of collateral securing the Company's investments and declines in the fair value of the Company's investments; adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise; difficulty in successfully managing the Company's growth, including integrating new assets into the Company's existing systems; the cost of operating the Company's platform, including, but not limited to, the cost of operating a real estate investment platform and the cost of operating as a publicly traded company; the availability of qualified personnel and the Company's relationship with our Manager; KKR controls the Company and its interests may conflict with those of the Company's stockholders in the future; the Company's qualification as a REIT for U.S. federal income tax purposes and the Company's exclusion from registration under the Investment Company Act of 1940; authoritative GAAP 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 the Company is subject to, as well as their counterparts in any foreign jurisdictions where the Company 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, 2019, and under Part II - Item 1A. "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 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 October 26, 2020. 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, 2020 unless otherwise indicated. This presentation also includes non-GAAP financial measures, including Core Earnings and Core 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. 2 KKR REAL ESTATE FINANCE TRUST#3KKR Real Estate Finance Trust Inc. Overview Best In Class Portfolio $5.0 Billion Investment Portfolio 3 99.5% Senior Loans $135 Million Average Loan Size 83% Multifamily & Office 8.5% Unfunded Purpose built portfolio focused on senior loans on institutional real estate and sponsorship secured predominantly by lighter transitional, multifamily and office properties Conservative & Diverse Balance Sheet $6.4 Billion Financing Capacity 78% Fully Non-Mark-to-Market(¹) $701 Million Current Liquidity (2) Conservative liability management focused on diversified non-mark-to-market financing capacity Fully Integrated with KKR 36% KKR Ownership in KREF $234 Billion $19 Billion Global AUM Balance Sheet $14 Billion Real Estate AUM (3) 90 Real Estate Professionals One firm culture that rewards investment discipline, creativity, determination and patience and emphasizes the sharing of information, resources, expertise and best practices (1) Based on outstanding face amount of secured financing and excludes convertible notes and the corporate revolving credit facility. 100% of financings are non-mark-to-capital markets marks. (2) Comprised of $301.4 million in cash (inclusive of $12.0 million of cash in our CLO), $335.0 million undrawn corporate revolver capacity, $22.2 million approved and undrawn secured financing facilities, and $42.0 million of loan repayment proceeds held with the servicer and receivable by our CLO as of September 30, 2020. (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, 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 Drawbridge Realty's AUM ($495 million). KKR does not act as an investment adviser to Drawbridge or any of its portfolio investments. KKR REAL ESTATE FINANCE TRUST#41 Investment Highlights 2 KKR Cycle Tested, Experienced Leadership Team Sponsorship 3 Differentiated Investment Strategy 息 E 4 Best in Class Investment Portfolio $ KKR Real Estate Finance Trust FEA ("KREF") is a differentiated company fully integrated within KKR Real Estate ✔ 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 ~$234bn Assets Under Management ~$19bn Internal Balance Sheet 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. 6 ~480 Investment Professionals BB 0000 20/15 Cities / Countries KKR Real Estate Attributes ~$14 billion in AUM in Real Estate strategies globally(¹) ~90 dedicated Real Estate investment and asset management professionals (2) across 11 cities in 8 countries Strategic Growth Vertical: ~$2.7+ billion of KKR balance sheet and employee capital committed across KKR real estate strategies (3) (1) 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, 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 ($495 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. (2) As of September 2020. Includes investment and asset management professionals. (3) 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 (1) Integrated Real Estate Platform ● Differentiated access to information and enhanced relevance in RE capital markets One leadership team Scaled portfolio: own or lend on ~$80bn of RE assets RE Equity ~$11bn of asset value(¹) RE Senior Loans $5bn loan portfolio $8bn of collateral value(2) RE CMBS Securities $36bn principal loan balance $62bn underlying asset value(2) REPA I / II / III: opportunistic KPPA: core plus KREF: primarily senior loans on transitional properties in primarily the top 10 MSAS ROX: real estate opportunistic credit RECOP I / II: primarily newly originated conduit CMBS B-pieces RESTAC: stabilized properties Represents current portfolio in REPA I, REPA II, KPPA, KFN, separately managed accounts, KKR-managed co-investment vehicles, third party co-investment capital, KKR employees, and trophy single tenant investments in KKR Credit accounts as of September 30, 2020. Figures include all closed transactions and transactions that have been committed to and are under contract as of September 30, 2020. Any transactions that have not closed are subject to customary closing conditions. Asset value represents total purchase price at closing. 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. (2) Represents implied value based on weighted average LTV of respective strategies. 7 KKR 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 ~$74BN of AUM, ~200 professionals globally, 100+ portfolio. companies globally KKR Global Macro & Asset Allocation ~24 professionals globally, insight on macro market observations and MSA analytics KKR Senior Advisors(¹) ~58 advisors globally, including four dedicated real estate advisors ® KKR REAL ESTATE FINANCE TRUST % LC (1) Senior Advisors, Industry Advisors and KKR Advisors are engaged as consultants and are not employees of KKR. 8 KKR Credit ~$75BN of AUM, ~144 professionals globally, sourcing & UW synergies KKR Capital Markets ~41 professionals globally, sourcing and structuring expertise KKR Public Affairs ~18 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 Co-Head Joined KKR in 2015 Formerly at Rialto Capital Management and Goldman Sachs JENNY BOX Partner & 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 RALPH ROSENBERG Chairman of the Board Investment Team JOEL TRAUT Managing Director Head of Originations Joined KKR in 2015 Formerly a Director at GE Capital Real Estate with over 18 years industry experience PAUL FINE Director Northeast & Northwest Regions 11 Joined KKR in 2015 Formerly a Director at CCRE with over 14 years industry experience HAS CHRIS LEE Vice Chairman of the Board JULIA BUTLER Managing Director Northeast & Midwest Regions Joined KKR in 2017 Formerly an Executive VP at iStar with over 18 years industry experience ADAM SIMON Director Northeast & Southwest Regions Joined KKR in 2015 Formerly a VP at Rialto Capital Management with over 14 years industry experience MATT SALEM Chief Executive Officer Asset Management CHRISTINE PATTERSON Director Head of Asset Management Joined KKR in 2018 Formerly a Principal at Blackstone with over 20 years industry experience Robert Elson Principal (Houston) Julian Hodgeman Principal (New York) C Investor Relations & Capital Markets PATRICK MATTSON President & Chief Operating Officer MICHAEL SHAPIRO Director Investor Relations / Equity & Debt Capital Markets Joined KKR in 2018 Formerly a Director at Wells Fargo Securities with over 13 years industry experience Jackie Lee Principal (New York Steven Schenkein Principal (New York ROBERT DUSEL Director Debt & Equity Capital Markets Joined KKR in 2015 Formerly a VP at Hudson Advisors / Lone Star with over 14 years industry experience Merrin White Principal (New York) Carlos Barrios Associate (Houston) Mostafa Nagaty Chief Financial Officer & Treasurer Legal VINCENT NAPOLIATANO Director Corporate Counsel & Secretary Joined KKR in 2020 Formerly an Associate at Skadden, Arps with over 10 years industry experience Erin Carlson Associate (Houston) Duncan Chalfant Associate (New York) Eric Smith Associate (New York 22 Turner Trapp Associate (New York) Investment professionals (12 team members at IPO) supported by fulsome finance and capital markets professionals Brad Tukel Associate (New York) Jessica Haghani Analyst (New York) Elana Fortson Analyst (New York) 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 $135 m % of Portfolio Office / Multifamily Loans 83% Average Occupancy of Office / Multifamily Loans 75% Construction Loans * <1% Most Liquid Markets, with Strong Underlying Fundamentals Top 10 MSAS 84% Top 30 MSAS 90% Note: The data above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. 13 High-Quality, Experienced & Well-Capitalized Sponsors Select Examples: G AUM, Top 10 Publicly Traded Global Asset Manager $100 b+ Market Capitalization, Top 5 Global Investment Bank $50 b+ Units, Top Regional Multifamily Developer and Operator 15,000+ 2019 Repeat Borrowers 35% KKR REAL ESTATE FINANCE TRUST#14Conservative Portfolio Construction 100% 80% 60% 40% 20% 0% ($ in Millions) $150 $100 $50 $0 27% 6% 67% At IPO $50 Investment Portfolio Evolution At IPO <3% 97% 4Q'18 $100 <1% 4Q'18 99% Larger Average Loan Size 3Q'20 Securities Mezz Loan Senior Loan $135 3Q'20 100% Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. 14 80% 60% 40% 20% 0% 25% 20% 15% 10% 5% 0% 62% 31% At IPO 23% Property Type Evolution At IPO 86% 7% 4Q'18 10% 83% 4Q'18 8% Future Funding as a Percentage of Total Commitments 3Q'20 Multifamily and Office Hospitality and Retail 9% 3Q'20 KKR REAL ESTATE FINANCE TRUST#15Targeted Strike Zone 15 Representative Terms on Newly-Originated Senior Loans Loan Size $50-$400 million Collateral Primarily Light Transitional CRE Properties Sponsorship Well-Established, Capitalized & Experienced Geographies Top 30 U.S. Markets Property Types Multifamily, Office, 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 + 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 O KKR REAL ESTATE FINANCE TRUST#16Rigorous Investment Screening and Selection Process Over the last twelve months, KREF screened $42.2 billion of financing opportunities and originated $1.3 billion (3%) of senior loans (1) LTM as of 9/30/20, values represent approximations. (2) Total Closed represents LTM as of 9/30/20. 16 Large opportunity set funneled through rigorous screening and approval process Rigorous Screening The "KKR Edge" Deals Screened: $42.2 BN(¹) Total Underwritten: $10.6 BN (¹) Total Quoted: $5.4 BN (¹) Total Closed (²): $1.3 BN 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: $5.2 billion (2) Including net funding and repayment activity subsequent to quarter-end $1,812 3Q'17 7% 7% Total Portfolio Growth Other <5%, 16% $3,383 3Q'18 $5,221 6% 3Q'19 Geography (3) 13% 22% 9% 7% $6% ($ in Millions) $5,035 3Q'20 8% Investment Type(4) Mezz 0.5% Class-B 25% Senior Loans 99.5% Hospitality 4% Condo (Residential) 6% Office Class-A 75% Property Type Student Housing 1% Retail 4% Office 30% Multifamily 53% Interest Rate Type Floating 99.9% Industrial 1% Class-B 14% Multifamily Class-A 86% Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. (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. See page 37 for additional details. (2) As of October 23, 2020. (3) Map excludes Midwest Mezzanine portfolio ($5.5 million). (4) 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. 18 Fixed 0.1% KKR REAL ESTATE FINANCE TRUST#19October Loan Originations Investment Loan Type Loan Size Location Collateral Loan Purpose LTV(4) Investment Date Asset Photos (4) 19 - Denver Multifamily Floating-Rate Senior Loan $40.0 million(1) Denver, CO Case Studies 168-unit Class-A Multifamily Refinance 49% October 2020 Arlington Multifamily Floating-Rate Senior Loan $70.9 million (2) Arlington, VA 360-unit Class-A Multifamily Refinance 73% October 2020 (1) The total whole loan maximum face amount is $80.0 million, co-originated and co-funded by KREF and a KKR fund on a pari passu basis. KREF's interest is 50% of the loan. (2) The total whole loan maximum face amount is $141.8 million, co-originated and co-funded by KREF and a KKR fund on a pari passu basis. KREF's interest is 50% of the loan. (3) The total whole loan maximum face amount is $509.9 million, co-originated and co-funded by KREF and a KKR fund, of which $280.0 million senior notes were concurrently syndicated to third party lenders. The Company's interest is 31% of the non-syndicated loan. LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. Oakland Office Floating-Rate Senior Loan $159.7 million (3) Oakland, CA Class-A Office Portfolio totaling 1.0 mm SF Acquisition 65% October 2020 KKR REAL ESTATE FINANCE TRUST#20Multifamily and Office Loan Overview Multifamily 53% of Loan Portfolio $146 mm Average Loan Size 53% W.A. Occupancy at Closing EEL Note: Data as of June 30, 2020. 20 67% W.A. LTV 74% W.A. Occupancy Current <1% Construction 2014 W.A. Year Built Property Locations $147 mm Average Loan Size 72% W.A. Occupancy at Closing Office 30% of Loan Portfolio 64% W.A. LTV 78% W.A. Occupancy Current <1% Co-Working Exposure 6.3 years W.A. Remaining Lease Term Property Locations KKR REAL ESTATE FINANCE TRUST#21Case 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.) Brooklyn Multifamily Floating-Rate Senior Loan Asset Photos May 2019 857-Unit Class-A Luxury Multifamily Brooklyn, NY $386 million $379 million $438k / unit L + 2.7% 51% 3.7 JA (1) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. 21 Chicago Multifamily Floating-Rate Senior Loan June 2019 800-Unit Class-A Luxury Multifamily Chicago, IL $340 million $335 million $418k / unit L + 2.8% 75% 5.8 Arlington Multifamily Floating-Rate Senior Loan June 2019 1,100-Unit Class-A Multifamily Arlington, VA $279 million $271 million $239k / unit L + 2.5% 70% 3.8 KKR REAL ESTATE FINANCE TRUST#22Case 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 Boston Office Floating-Rate Senior Loan EGEBEE May 2018 Class-B+ Office Totaling 474k SF Boston, MA $227 million $207 million $447 / SF L + 2.4% 68% 2.7 www (1) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. 22 Plano Office Floating-Rate Senior Loan February 2020 Four Class-A- Office Buildings Totaling 930k SF Plano, TX $227 million $183 million $190 / SF L + 2.7% 64% 4.4 Minneapolis Office Floating-Rate Senior Loan November 2017 Two Class-A Office Buildings Totaling 1.1mm SF Minneapolis, MN $194 million $192 million $178 / SF L + 3.8% 63% 2.2 KKR REAL ESTATE FINANCE TRUST#23Portfolio Credit Quality Remains Strong • Loan portfolio is 99.9% performing (% of total portfolio) 2Q'20 20% 0% - 60% 3Q'20 17% 0% - 60% 28% 60% 65% 29% 60% -65% Loan-to-Value(1,2) 17% 65% - 70% 18% 65% - 70% 27% 70% - 75% 27% 70% - 75% Weighted Average LTV(3): 66% 8% 75% - 80% Weighted Average LTV(3): 66% 9% 75% - 80% (% of portfolio) 2Q'20 3% 1 2 3Q'20 0% 1 Risk Rating Distribution (²) 5% 2 2 5% 2 2 76% 3 27 Loan Count 79% 3 27 Loan Count 16% 4 7 14% 4 Weighted Average Risk Rating (3): 3.1 0.1% (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. (2) Includes non-consolidated senior interests and excludes vertical loan syndications. (3) Weighted average is weighted by current principal amount for our senior and mezzanine loans. 23 5 1 Weighted Average Risk Rating (3): 3.1 2% 5 2 KKR REAL ESTATE FINANCE TRUST#24Case 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 Spread LTV(2) Max Remaining Term (Yrs.) Loan Risk Rating Portland Retail October 2015 1.1M Square Foot Retail Center Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Refinance Portland, OR $110 million $110 million $101 / SF L + 5.5% 61% 0.1 New York Condo 5 December 2018 126-Unit Class-A Residential Condominium Acquisition New York, NY $235 million $196 million $1,227 / SF L + 3.6% 71% 3.3 Ft. Lauderdale Hotel 4 November 2018 346-Key Full-Service Hotel Refinance Ft. Lauderdale, FL $151 million $141 million $408k / key L + 2.9% 62% 3.2 4 New York Condo (1) Excludes $5.5 million mezzanine loan risk-rated 5. (2) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. 24 August 2017 16 Luxury Residential Condominiums Refinance New York, NY $102 million $102 million $1,720 / SF L + 4.7% 53% 1.0 4 San Diego, Multifamily Floating-Rate Senior Loan Floating-Rate Senior Loan February 2020 231-Unit Class-A Multifamily Acquisition San Diego, CA $102 million $102 million $443k / unit L + 3.3% 71% 4.4 Brooklyn Hotel 4 January 2019 196-Key Hotel Refinance Brooklyn, NY $76 million $76 million $390k/ key L + 2.9% 69% 3.4 4 Queens Industrial Floating-Rate Senior Loan July 2017 Two Class-B Buildings Totaling 595k RSF Acquisition Queens, NY $70 million $67 million $117 / SF L + 3.0% 64% 1.8 4 KKR REAL ESTATE FINANCE TRUST#25Conservative Liability Management 25 KKR REAL ESTATE FINANCE TRUST#26Liability Management: 78% Non-Mark-To-Credit IPO Term Credit Facilities 100% (2) 0% Non-MTC Conservative liability management focused on growing diversified non-mark-to-credit financing capacity Outstanding Secured Financing(¹) Asset Specific Financing 2% 4Q'18 Term Credit Facilities (2 (2) 40% Senior Loan Interests 5% CLO 28% Term Loan Facility 26% 60% Non-MTC (1) Based on outstanding face amount of asset level secured financing 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. 26 Asset Specific Financing 1%. Senior Loan Interests 4% Secured Term. Loan 7% 3Q'20 Term Credit Facilities 22% Collateralized Loan Obligation 20% Term Lending Agreement 22% 78% Non-MTC Term Loan Facility 24% KKR REAL ESTATE FINANCE TRUST#27Diversified Financing Sources Totaling $6.4 Billion ($ in Millions) Term Credit Facilities Term Lending Agreement Warehouse Facility Asset Specific Financing Secured Term Loan Convertible Notes Corporate Revolving Credit Facility Total Corporate Obligations Term Loan Facility Collateralized Loan Obligation Senior Loan Interests (1) Total Leverage Summary of Outstanding Financing Outstanding Face Amount Weighted Avg. Coupon $911 L+1.6% $900 Maximum Capacity $2,000 $900 $500 $300 $300 $144 $335 $4,479 $1,000 $810 $144 $6,433 $0 $60 $300 $144 $0 $2,315 $982 $810 $144 $4,251 L+1.9% n/a L+1.7% L+4.8% 6.1% L+2.0% L+1.6% L+1.4% L+1.6% Advance Rate 65.9% 81.2% n/a 78.9% 82.4% 81.0% 80.0% Non- MTM (2) (1) Includes $143.6 million of Non-Consolidated Senior Interests, which result from non-recourse sales of senior loan interest in loans KREF originated. (2) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions. (3) Represents (i) facilities outstanding face amount (excluding non-recourse term loan facility), secured term loan, and convertible notes less cash to (ii) total permanent equity, in each case, at period end. (4) Represents (i) facilities outstanding face amount, secured term loan, convertible notes, loan participations sold (excluding vertical loan syndications), non-consolidated senior loan interests, and collateralized loan obligation less cash to (ii) total permanent equity, in each case, at period end. (5) Based on outstanding face amount of secured financing and excludes convertible notes and the corporate revolving credit facility. 27 1.9x 0.1x 1.8x Leverage Ratios 3.8x I 0.2x 3.6x I Debt-to-Equity Ratio Total Leverage Ratio (3) (4) CECL Impact Pre-CECL KKR REAL ESTATE FINANCE TRUST#28Financing Overview: Term Credit Facilities ($ in Millions) Counterparty Drawn Capacity Collateral: Loans / Principal Balance Stated Maturity Weighted Average Pricing Weighted Average Advance Mark-to-market WELLS FARGO $414 $1,000 5 Loans / $654 November 2023 L + 1.4% 63.4% Credit Only (1) Facility capacity steps down to $240 million on October 30, 2020. (2) Facility benefits from a margin holiday through December 2020. (3) Based on principal balance of financing. 28 Morgan Stanley $419 $600 3 Loans / $568 December 2022 L + 1.8% 73.7% Credit Only Goldman Sachs $78 $400(1) 2 Loans / $161 October 2023 L + 1.9% 48.4% Credit Only (2) Property Type(3): Total / Weighted Average Retail 10% Office 12% $911 $2,000 10 Loans / $1,383 L + 1.6% 65.9% Student Condo 4% Housing 6% Multi- family 68% KKR REAL ESTATE FINANCE TRUST#29Liquidity Overview ($ in Millions) $800.0 $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $301.4 Cash $335.0 Undrawn Corporate Revolver Sources of Available Liquidity $22.2 Approved and Undrawn Credit Capacity (1) $42.0 (2) Represents proceeds from loan repayment held by the servicer and receivable by our CLO as of September 30, 2020. 29 Loan Repayment Receivable (2) $700.6 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. KKR REAL ESTATE FINANCE TRUST#30Earnings Power from LIBOR Floors 30 KKR REAL ESTATE FINANCE TRUST#31Rate Floors Provide Earnings Benefit in a Declining Rate Environment • 99.9% of the portfolio is indexed to one-month USD LIBOR • Portfolio benefits from current low rate environment given in place LIBOR floors ✓ 98% of the portfolio is subject to a LIBOR floor of at least 0.95% ✓✓ 9% of total outstanding financing including the Secured Term Loan is subject to a LIBOR floor greater than 0.0% ✓ Portfolio weighted average floor of 1.86% Net Interest Income Per Share Sensitivity to LIBOR(¹) $0.04 $0.02 $0.00 -$0.02 -$0.04 -$0.06 -$0.08 -$0.10 -$0.12 -$0.14 -$0.16 ($ Impact Per Share / Q) $0.02 LIBOR = 0.00% (1) Portfolio as of September 30, 2020. 31 LIBOR as of 9/30/2020 0.15% $0.00 0.25% -$0.02 LIBOR 0.50% -$0.06 0.75% - $0.10 1.00% -$0.14 KKR REAL ESTATE FINANCE TRUST#32Recent Operating Performance 3Q'19 Net income: $23.6 Core earnings: $25.0 $0.41 Net Income (¹) and Core Earnings (2) $0.43 2Q'20 3Q'19 Net Income per Diluted Share $28.6 $25.0 $0.52 $0.45 3Q'20 ($ in Millions) $31.4 $32.5 $0.56 2Q'20 3Q'20 ■Core Earnings per Diluted Share Dividend per Share $0.58 (1) Represents Net Income attributable to common stockholders. (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. 32 $0.43 $19.54 Dividends and Book Value Per Share 3Q'19 Dividend per share: $0.43 $0.43 Dividend yield on book value per share: 8.8% 9.3% 3Q'19 2Q'20 ■BVPS Post-CECL $19.73 $1.16 $18.57 2Q'20 3Q'20 LCECL Impact $0.43 9.2% $19.89 $1.16 $18.73 3Q'20 KKR REAL ESTATE FINANCE TRUST#33Key Highlights Best in class investment portfolio - 83% multifamily and office; only 8% hospitality and retail FF Conservative liability management - 78% diversified non-mark-to-credit secured financing Strong liquidity position Over $700 million of liquidity as of 9/30/20 33 - NU S DEL 1111 D - Fully integrated with KKR; aligned with shareholders - 36% ownership; ~$12b of real estate AUM KKR REAL ESTATE FINANCE TRUST Experienced leadership & asset management team - 75+ years of experience; manageable portfolio of <40 loans Benefiting from decreasing interest rates - 98% of the portfolio is subject to a LIBOR floor of at least 0.95% KKR REAL ESTATE FINANCE TRUST#34Appendix 34 KKR REAL ESTATE FINANCE TRUST#353Q'20 Financial Summary ($ in Millions) Net Interest Income Other Income Income Statement Operating Expenses and Other CECL Provision for Credit Loss, Net Net Income Attributable to Common Stockholders Weighted Average Shares Outstanding, Diluted Net Income per Share, Diluted Core Earnings (1) Core Earnings per Share, Diluted (¹) Dividend per Share 35 3Q20 $38.9 1.1 (8.7) 0.1 $31.4 55,632,170 $0.56 $32.5 $0.58 $0.43 ($ in Millions) Total Portfolio Term Credit Facilities Term Lending Agreement Asset Specific Financing Secured Term Loan Convertible Notes Total Debt Term Loan Facility Collateralized Loan Obligation Senior Loan Interests (²) Total Leverage Cash Total Permanent Equity Debt-to-Equity Ratio (³) Total Leverage Ratio (4) Shares Outstanding Book Value per Share (5) Balance Sheet (1) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. (2) Includes loans financed through the non-recourse sale of a senior interest that is not included in our GAAP consolidated financial statements. (3) Represents (i) total debt less cash to (ii) total permanent equity. The debt-to-equity ratio, adjusted for the impact of CECL allowance for credit losses, is 1.8x at 3Q'20. (4) Represents (i) total leverage less cash to (ii) total permanent equity. The total leverage ratio, adjusted for the impact of CECL allowance for credit losses, is 3.6x at 3Q'20. (5) Book value per share includes (i) CECL credit loss allowance of ($64.1) million or ($1.16) per common share, (ii) write-off of ($4.7) million or ($0.08) per common share on the Company's $5.5 million mezzanine loan, and (iii) the YTD impact of ($0.3) million, or $0.01 per common share, non-cash redemption value adjustment to our redeemable SNVPS, resulting in a cumulative (since issuance of the SNVPS) decrease of $2.0 million to our book value as of September 30, 2020. 3Q20 $5,034.5 910.8 900.0 60.0 300.0 143.8 $2,314.6 982.0 810.0 143.6 $4,250.2 301.4 1,039.1 1.9x 3.8x 55,491,405 $18.73 KKR REAL ESTATE FINANCE TRUST#36Portfolio Details # Senior Loans (1) Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan 10 Senior Loan 11 Senior Loan Senior Loan 12 13 Senior Loan 14 Senior Loan 15 Senior Loan 16 Senior Loan 17 Senior Loan 18 Senior Loan 19 Senior Loan 20 Senior Loan 21 Senior Loan 22 Senior Loan 23 Senior Loan 24 Senior Loan 25 Senior Loan 26 Senior Loan 27 Senior Loan 28 Senior Loan 29 Senior Loan 30 Senior Loan 31 Senior Loan 32 Senior Loan 33 Senior Loan 34 Senior Loan 35 Senior Loan Total / Weighted Average Mezzanine Loans HHEESSA ENH Investment 4 9 Floating Rate Mezzanine Fixed Rate Mezzanine (10) Location Brooklyn, NY Chicago, IL Arlington, VA New York, NY Boston, MA Plano, TX Various Minneapolis, MN Chicago, IL Denver, CO Irvine, CA Philadelphia, PA Washington, D.C. Seattle, WA Chicago, IL Philadelphia, PA New York, NY Fort Lauderdale, FL Various 1 2 Total / Weighted Average CMBS Total / Weighted Average Portfolio Total / Weighted Average 3Q20 Outstanding Portfolio (8) Boston, MA West Palm Beach, FL Portland, OR San Diego, CA New York, NY State College, PA Seattle, WA Los Angeles, CA New York, NY Seattle, WA Philadelphia, PA Brooklyn, NY Herndon, VA Queens, NY Austin, TX Atlanta, GA Westbury, NY Various *See footnotes on subsequent page 36 Property Type Multifamily Multifamily Multifamily Condo (Resi) Office Office Multifamily Office Multifamily Multifamily Office Office Office Office Office Office Multifamily Hospitality Retail Multifamily Multifamily Retail Multifamily Condo (Resi) Student Housing Multifamily Multifamily Multifamily Office Multifamily Hospitality Multifamily Industrial Multifamily Multifamily Multifamily Retail Investment Date 5/22/2019 6/28/2019 6/28/2019 12/20/2018 5/23/2018 2/6/2020 5/31/2019 11/13/2017 6/6/2019 8/13/2019 11/15/2019 4/11/2019 12/20/2019 9/13/2018 7/15/2019 6/19/2018 12/5/2018 11/9/2018 12/19/2019 3/29/2019 11/7/2018 10/26/2015 2/3/2020 8/4/2017 10/15/2019 9/7/2018 12/11/2019 3/29/2018 3/20/2018 10/30/2018 1/18/2019 12/23/2019 7/21/2017 9/12/2019 8/9/2019 1/27/2020 6/8/2015 Committed Principal Amount $386.0 340.0 278.8 234.5 227.3 226.5 216.5 194.4 186.0 185.0 183.3 182.6 175.5 172.0 170.0 165.0 163.0 151.2 147.0 138.0 135.0 109.6 102.3 101.7 93.4 92.3 91.0 86.0 80.7 77.0 76.4 73.9 70.1 67.5 61.5 $5,441.0 20.0 5.5 $25.5 $40.0 $5,506.5 Current Principal Amount $379.0 334.6 270.5 196.5 207.3 182.8 208.5 191.8 179.5 169.4 161.1 154.4 59.2 168.0 131.2 164.1 148.0 141.2 102.2 137.0 131.6 109.6 102.3 101.7 69.6 92.3 91.0 86.0 80.7 77.0 76.4 73.0 66.7 67.5 61.5 $4,973.2 20.0 5.5 $25.5 $35.7 $5,034.4 Net Equity (2) $96.1 73.4 70.9 39.3 37.2 31.6 35.3 35.2 35.4 48.1 44.7 24.9 18.2 30.0 21.9 36.4 23.2 28.5 25.1 22.2 21.0 89.5 20.8 67.8 17.2 16.8 19.0 14.5 14.6 13.0 16.0 11.9 66.6 12.4 11.3 $1,190.0 19.9 0.9 $20.8 $35.7 $1,246.5 Future Funding (3) $7.0 5.4 8.3 38.0 20.0 43.7 8.0 2.6 1.3 15.6 22.2 28.2 116.3 4.0 38.8 0.9 15.0 10.0 44.8 1.0 3.4 23.8 0.9 3.4 - $462.6 $0.0 $4.3 $466.9 Coupon (4) (5) L + 2.7% L + 2.8% L + 2.6% L + 3.6% L+2.4% L + 2.7% L + 3.5% L + 3.8% L+2.7% L + 2.8% L + 2.9% L + 2.6% L + 3.4% L + 3.8% L + 3.3% L+2.5% L + 2.6% L + 2.9% L + 2.6% L + 2.7% L + 2.9% L + 5.5% L + 3.3% L + 4.7% L + 2.7% L + 2.6% L + 2.8% L + 2.6% L + 3.6% L + 2.7% L + 2.9% L + 2.5% L + 3.0% L + 2.5% L + 3.0% L + 3.0% L + 9.0% 11.0% 11.0% 4.8% 4.8% Max Remaining Term (Yrs) (4) (6) 3.7 5.8 3.8 3.3 2.7 4.4 3.7 2.2 3.7 3.9 4.1 3.6 4.3 3.0 3.9 2.8 3.2 3.2 4.9 3.5 3.1 0.1 4.4 1.0 4.1 2.9 2.3 2.5 2.5 3.1 3.4 4.3 1.8 4.0 3.9 3.5 3.8 4.8 4.0 8.7 3.5 Loan Per SF / Unit / Key $ 442,278 / unit $ 418,289 / unit $ 243,698 / unit $ 1,227 / SF $ 447 / SF $ 197 / SF $ 194,882 / unit $ 180 / SF $364,837 / unit $285,202 / unit $ 264 / SF $219/ SF $ 290 / SF $ 490 / SF $ 126 / SF $ 169 / SF $ 556,391 / unit $ 407,993 / key $76 / SF $ 351,282 / unit $ 162,108 / unit $ 101 / SF $ 442,965 / unit $ 1,720 / SF $ 54,762 / bed $ 515,571 / unit $ 421,296 / unit $ 462,366 / unit $ 473 / SF $ 150,980 / unit $ 389,578 / key $ 248,395 / unit $ 117 / SF $ 190,678 / unit $ 170,833 / unit $ 464,135 / unit $ 45/ SF (9) LTV(4)(7) 51% 75% 70% 71% 68% 64% 74% 63% 74% 64% 66% 65% 58% 62% 59% 71% 67% 62% 55% 63% 73% 61% 71% 53% 64% 76% 72% 48% 61% 73% 69% 72% 64% 75% 74% 66% 66% 71% 67% 58% 66% Risk Rating 3 3 3 4 3 3 3 2 3 3 3 3 3 3 3 3 3 4 3 3 3 5 4 4 3 3 3 3 3 3 4 3 4 3 2 3.1 3 5 3.4 3.1 $5,034.4 KKR REAL ESTATE FINANCE TRUST#37Portfolio Details (1) 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. (2) 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. (3) Represents Committed Principal Amount less Current Principal Amount on Senior Loans and $4.3 million of unfunded commitment to RECOP I. (4) Weighted averages are weighted by current principal amount for senior loans and mezzanine loans and by net equity for our RECOP I CMBS B-Piece investment. (5) L = one-month USD LIBOR rate; greater of (i) spot one-month USD LIBOR rate of 0.15% and (ii) LIBOR floor, where applicable, included in portfolio-wide averages represented as fixed rates. (6) Max remaining term (years) assumes all extension options are exercised, if applicable. (7) For senior loans, loan-to-value ratio ("LTV") 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; for Senior Loan 4, 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 24, 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 div end by the as-is appraised va as of the date the loan was originated; for RECOP CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance. (8) Represents Current Principal Amount of Senior Loans and Mezzanine Loans and Net Equity for our RECOP I CMBS B-Piece investment. (9) For Senior Loan 24, Loan per SF of $1,720 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 $2,018 based on allocating the full amount of the loan to only the residential units. (10) For Mezzanine Loan 2, Current Principal Amount is gross of $4.7 million written-off (of amortized cost). 37 KKR REAL ESTATE FINANCE TRUST#38Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 3.5 years (1) ($ in Millions) $2,500 $2,000 $1,500 $1,000 $500 $0 $109.6 2020 (1) Excludes RECOP I CMBS B-Piece investment. 38 $101.7 2021 Fully Extended Loan Maturities (¹) $258.6 2022 $1,387.2 2023 $2,282.1 2024 $525.1 2025 $334.6 2026 KKR REAL ESTATE FINANCE TRUST#39Consolidated Balance Sheets (in thousands - except share and per share data) Assets Cash and cash equivalents(¹) Commercial mortgage loans, held-for-investment Less: Allowance for credit losses Commercial mortgage loans, held-for-investment, net Equity method investments Accrued interest receivable Other assets(2) Total Assets Liabilities and Equity Liabilities Secured financing agreements, net Collateralized loan obligation, net Secured term loan, net Convertible notes, net Loan participations sold, net Dividends payable Accrued interest payable Accounts payable, accrued expenses and other liabilities (3) Due to affiliates Total Liabilities Commitments and Contingencies Temporary Equity Redeemable preferred stock Permanent Equity Preferred stock, 50,000,000 authorized (1 share with par value of $0.01 issued and outstanding as of September 30, 2020 and December 31, 2019) Common stock, 300,000,000 authorized (55,491,405 and 57,486,583 shares with par value of $0.01 issued and outstanding as of September 30, 2020 and December 31, 2019, respectively) Additional paid-in capital Accumulated deficit Repurchased stock, 3,900,326 and 1,862,689 shares repurchased as of September 30, 2020 and December 31, 2019, respectively Total KKR Real Estate Finance Trust Inc. stockholders' equity Total Permanent Equity Total Liabilities and Equity September 30, 2020 $ $ $ 301,375 4,895,974 (62,735) 4,833,239 33,468 15,566 48,217 5,231,865 1,951 555 December 31, 2019 2,846,350 $ 808,311 287,878 140,115 66,226 24,138 7,586 5,076 5,127 4,190,807 $ (1) Includes $12.0 million and $0.0 million held in collateralized loan obligations as of September 30, 2020 and December 31, 2019, respectively. (2) Includes $42.0 million and $0.0 million of loan repayment proceeds held with the servicer and receivable by the CLO as of September 30, 2020 and December 31, 2019, respectively. (3) Includes $1.4 million and $0.0 million of reserve for unfunded loan commitments as of September 30, 2020 and December 31, 2019, respectively. 39 $ 1,170,110 (70,559) (60,999) 1,039,107 1,039,107 5,231,865 $ 67,619 4,931,042 4,931,042 37,469 16,305 4,583 5,057,018 2,884,887 803,376 139,075 64,966 25,036 6,686 3,363 5,917 3,933,306 1,694 575 1,165,995 (8,594) (35,958) 1,122,018 1,122,018 5,057,018 KKR REAL ESTATE FINANCE TRUST#40Consolidated Statements of Income (in thousands - except share and per share data) Net Interest Income Interest income Interest expense Total net interest income Other Income (Loss) gain on sale of investments Income (loss) from equity method investments Change in net assets related to CMBS consolidated variable interest entities Other income Total other income (loss) Operating Expenses General and administrative Provision for 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 (benefit) Net Income (Loss) Preferred Stock Dividends and Redemption Value Adjustment Net Income (Loss) Attributable to Common Stockholders 40 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, 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 Three Months Ended June 30, 2020 0.43 $ 67,219 30,563 36,656 297 196 493 4,046 (1,366) 4,218 1,249 8,147 29,002 77 28,925 335 28,590 0.52 0.52 55,491,937 55,504,077 September 30, 2019 $ 0.43 $ 74,223 45,596 28,627 (429) 1,321 544 853 2,289 2,704 4,280 6,984 23,932 77 23,855 238 23,617 0.41 0.41 57,420,140 57,549,066 0.43 September 30, 2020 $ Nine Months Ended September 30, 2019 $ 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 $ 201,918 117,527 84,391 (2,759) 3,314 1,665 2,006 4,226 7,846 12,855 2,098 22,799 65,818 366 65,452 (251) 65,703 1.14 1.14 57,406,802 57,511,292 1.29 KKR REAL ESTATE FINANCE TRUST#41Reconciliation of GAAP Net Income to Core 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 CECL provision for credit losses, net Non-cash convertible notes discount amortization Mezzanine loan write-off Reversal of previously unrealized loss now realized (3) Core Earnings (²) Weighted Average Shares Outstanding Basic Diluted (1)(2) Core Earnings per Weighted Average Share, Basic (4) Core Earnings per Weighted Average Share, Diluted (4) September 30, 2020 31,351 1,390 (178) (126) 91 32,528 55,491,405 55,632,170 0.59 0.58 Three Months Ended June 30, 2020 28,590 1,374 973 (1,366) 90 (4,650) 25,011 55,491,937 55,504,077 0.45 0.45 • Although pursuant to the Company's Management Agreement, KREF calculates the incentive compensation and base management fees due to its Manager using Core Earnings before incentive compensation, beginning with the first quarter of 2020, the Company revised its definition of Core Earnings for reporting purposes to be net of incentive compensation. September 30, 2019 23,617 (1) Includes ($0.3) million, $0.2 million and $0.1 million non-cash redemption value adjustment of our SNVPS during 3Q'20, 2Q'20 and 3Q'19, respectively. (2) Includes $0.1 million and $0.8 million of unrealized loss on RECOP I, an equity method investment, during 3Q'20 and 2Q'20, respectively. (3) Represents the add back of $0.4 million GAAP net loss recognized during 3Q'19, offset by $0.2 million of loss representing the difference between cost and sales proceeds. (4) Recasted 3Q'19 Core Earnings per Weighted Average Share, Basic and Diluted, to reflect changes in the definition of Core Earnings for reporting purposes. See Appendix page 42 for definitions. 41 1,040 71 91 191 25,010 57,420,140 57,549,066 0.44 0.43 KKR REAL ESTATE FINANCE TRUST#42Key Definitions "Core Earnings": Used by the Company to evaluate the Company's performance excluding the effects of certain transactions and GAAP adjustments the Company believes are not necessarily indicative of the current loan activity and operations. Core Earnings is a measure that is not prepared in accordance with GAAP. The Company defines Core Earnings for reporting purposes 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 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 Core 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. ● ● 42 The Company believes that providing Core Earnings on a supplemental basis to its net income as determined in accordance with GAAP is helpful to stockholders in assessing the overall performance of the Company's business. Although pursuant to the Management Agreement with its Manager, the Company calculates the incentive compensation and base management fees due to its Manager using Core Earnings before incentive compensation, beginning with the first quarter of 2020, the Company revised its definition of Core Earnings for reporting purposes to be net of incentive compensation. Core Earnings should not be considered as a substitute for GAAP net income. The Company cautions readers that its methodology for calculating Core 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 Core Earnings may not be comparable to similar measures presented by other REITS. KKR REAL ESTATE FINANCE TRUST