#1KKR REAL ESTATE FINANCE TRUST Second Quarter 2023 Supplemental Information JULY 24, 2023#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 release contains 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. 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 general political, economic and competitive conditions in the United States and in any foreign jurisdictions in which the Company invests and their impact on the Company's loan portfolio, financial condition and business operations; accelerating inflationary trends, spurred by multiple factors including high commodity prices, a tight labor market, and low residential vacancy rates, may result further in interest rate increases and lead to increased market volatility; higher interest rates imposed by the Federal Reserve may lead to a decrease in prepayment speeds and an increase in the number of borrowers who exercise extension options, which could extend beyond the term of certain secured financing agreements the Company uses to finance its loan investments; the economic impact of escalating global trade tensions, the conflict between Russia and Ukraine, and the adoption or expansion of economic sanctions or trade restrictions; reduced demand for office, multifamily or retail space, including as a result of the COVID-19 pandemic and/or hybrid work schedules which allow work from remote locations other than the employer's office premises; the impact of, and market dislocations that may result from, governmental intervention in the economic and financial system or from regulatory reform of the oversight of financial markets; the failure of any banks with which the Company and/or the Company's borrowers have a commercial relationship could adversely affect, among other things, the Company or the Company's borrower's ability to access deposits or borrow from financial institutions on favorable terms; interest rate mismatches between the Company's target assets and any borrowings used to fund such assets; adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise, could adversely affect the Company's results of operations; 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 the Company's existing investments; general volatility of the securities markets in which the Company participates; changes in the Company's business, investment strategies or target assets; deterioration in the performance of the properties securing the Company's investments that may cause deterioration in the performance of the Company's investments, risks in collection of contractual interest payments, and potentially, principal losses to the Company; 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; the adequacy of collateral securing the Company's investments and declines in the fair value of the Company's investments; difficulty in obtaining financing or raising capital; difficulty in successfully managing the Company's growth, including integrating new assets into the Company's existing systems; reductions in the yield on the Company's investments and increases in the cost of the Company's financing; defaults by borrowers in paying debt service on outstanding indebtedness; the availability of qualified personnel and the Company's relationship with its Manager; subsidiaries of KKR & Co. Inc. have significant influence over the Company and KKR's interests may conflict with those of the Company's stockholders in the future; the cost of operating the Company's platform, including, but not limited to, the cost of operating a real estate investment platform; adverse legislative or regulatory developments; the Company's qualification as a real estate investment trust ("REIT") for U.S. federal income tax purposes and the Company's exclusion from registration under the Investment Company Act of 1940, as amended; authoritative accounting principles generally accepted in the United States of America ("GAAP") or policy changes from 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, 2022, 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 release. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this release and in the Company's filings with the SEC. All forward-looking statements in this release speak only as of the date of this release. The Company 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 forward looking statements in this presentation speak only as of July 24, 2023. 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 June 30, 2023 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. KREF 2#3KKR Real Estate Finance Trust Inc. Overview Best In Class Portfolio $7.9 B Investment Portfolio 100% Senior Loans $126 M Average Loan Size (¹) 56% Multifamily & Industrial 99% Interest Collected Senior loans secured primarily by transitional, institutional multifamily, office and industrial properties owned by high quality sponsors KREF Conservative Balance Sheet $8.9 B Financing Capacity 76% Fully Non-Mark-to-Market (²) $800 M Current Liquidity (³) Conservative liability management focused on diversified non-mark-to-market financing KREF's Manager Fully Integrated with KKR 14% KKR Ownership in KREF $510 B Global AUM(4) $65 B Real Estate AUM(4)(5) (1) Average loan size is inclusive of the unfunded commitment (2) Based on outstanding face amount of secured financing, including non-consolidated senior interests (3) Includes $208 million in cash, $560 million undrawn corporate revolver capacity and $32 million of available borrowings based on existing collateral (4) As of March 31, 2023 (5) Figures represent AUM across all KKR real estate transactions $25 B Balance Sheet (4) 150+ Real Estate Professionals (4) One firm culture that rewards investment discipline, creativity and determination and emphasizes the sharing of information, resources, expertise and best practices 3#4Second Quarter 2023 Highlights Financials Portfolio Liquidity & Capitalization (1) ● 2Q Net Loss of ($0.37) per diluted share ● ● ● ● ● ● ● (includes a CECL provision of $56 million, or ($0.82) per diluted share) 2Q Distributable Earnings (2) of $0.48 per diluted share QTD and YTD dividend coverage ratio of 1.1x Book Value per Share ("BVPS") of $16.38 per share, compared to $17.16 per share as of 10'23 (includes a CECL allowance of $228 million, or ($3.30) per share, representing 304 basis points of loan principal balance) $7.9 billion predominantly senior loan portfolio with a weighted average unlevered all-in yield (3) of 8.8% Multifamily and industrial assets represent 56% of loan portfolio ● ● ● Weighted average risk rating of 3.2 Funded $177 million for loans closed in previous quarters Received $339 million in loan repayments Collected 99% of interest payments due in 2Q Monitoring eight watch list loans, including seven office assets $800 million of available liquidity, including $208 million of cash and $560 million undrawn capacity on the corporate revolver Diversified financing sources totaling $8.9 billion with $2.8 billion of undrawn capacity 76% of secured financing is fully non-mark-to-market and the remaining balance is mark-to-credit only Repaid $144 million of convertible notes Upsized a $240 million term credit facility facility to $400 million No corporate debt or final facility maturities due until 4Q'25 (1) Represents Net Income or loss attributable to common stockholders (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP (3) Includes the amortization of deferred origination fees, loan origination costs and purchase discounts, and excludes loans accounted for under the cost recovery method KREF 4#52Q'23 Financial Summary ($ in Millions) Net Interest Income Other Income Income Statement Operating Expenses Provision for Credit Losses Preferred Stock Dividends Other Net Income (Loss) Attributable to Common Stockholders Net Income (Loss) per Share, Diluted Distributable Earnings (¹) Distributable Earnings per Share, Diluted (¹) Dividend per Share Diluted Weighted Average Shares Outstanding (4) (5) 2Q'23 $44.0 I I 7.0 (14.5) (56.3) I I I (5.3) (0.5) ($25.8) I ($0.37) I I $33.1 $0.48 $0.43 69,115,654 I ($ in Millions) Total Portfolio Term Credit Facilities Term Lending Agreements Secured Term Loan Corporate Revolving Credit Facility Total Debt Collateralized Loan Obligations Term Loan Facility Asset Specific Financing Total Leverage Cash Total Equity Common Shareholders' Equity Debt-to-Equity Ratio (³) (2) Balance Sheet Total Leverage Ratio (4) Book Value per Share (5) Shares Outstanding 2Q'23 $7,872.1 1,550.1 1,438.2 344.8 50.0 $3,383.1 1,942.8 565.7 220.2 $6,111.8 207.7 1,459.7 1,132.1 2.2x 4.0x $16.38 69,106,061 (1) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP (2) Represents the principal amount on our loan portfolio including non-consolidated senior interests, one real estate owned asset and CMBS B-Pieces held through an equity method investment (3) Represents (i) total outstanding debt agreements (excluding non-recourse facilities) and secured term loan, less cash to (ii) total permanent equity, in each case, at period end Represents (i) total outstanding debt agreements, secured term loan and collateralized loan obligations, less cash to (ii) total permanent equity, in each case, at period end Book value per share includes CECL allowance of $228 million or ($3.30) per share KREF 5#6Recent Operating Performance Net Income and Distributable Earnings ($ in Millions) 2Q'22 Net income (loss) (¹): $19.4 Distributable earnings (2). $33.1 $0.28 $0.48 2Q'22 1Q'23 ($30.8) $33.1 ($0.45) $0.48 1Q'23 2Q'23 ($25.8) $33.1 ($0.37) Net Income (Loss) per Diluted Share Distributable Earnings per Diluted Share $0.48 2Q'23 $0.43 Dividends and Book Value Per Share 2Q'22 Dividend per share: $0.43 (1) Represents Net income (loss) attributable to common stockholders (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP KREF $0.43 Dividend yield on book value per share: 8.9% 10.0% $19.36 1Q'23 2Q'22 $17.16 1Q'23 Book Value per Share 2Q'23 $0.43 10.5% $16.38 2Q'23 6#7Last Twelve Months Loan Activity ($ in Millions) I Future Funding Obligations(2) $9,300 | | $1,412 1 $7,888 $225 $387 Portfolio Funding Activity - Outstanding Principal(¹) $9,375 $1,649 $7,726 $424 $209 3Q'22 3Q'22 4Q'22 4Q'22 2Q'22 3Q'22 Portfolio Fundings Repayments Portfolio Fundings Repayments $25 4Q'22 Write-off I $9,460 $1,544 $7,916 4Q'22 Portfolio $204 $87 (1) Includes one real estate owned asset and CMBS B-Pieces held through an equity method investment (2) Future funding obligations are generally contingent upon certain events and may not result in investment by us KREF $9,381 $1,347 $8,034 $177 $339 1Q'23 2Q'23 2Q'23 1Q'23 1Q'23 Fundings Repayments Portfolio Fundings Repayments $9,071 I | $1,199 | I 1 $7,872 2Q'23 Portfolio 7#8KREF Loan Portfolio by the Numbers ($ in Millions) $4,952 2Q'19 18% Total Portfolio Growth $5,257 2Q'20 Other <5%: 23% $5,618 15% 2Q'21 Geography (¹) $7,888 2Q'22 5% 11% 5% L 7% $7,872 10% 2Q'23 - 6% Washington, D.C. Investment Type(²) Class-B 6% Senior Loans 100% Class-A 94% Office (5) 5% Life Science (3) 9% Industrial 14% Property Type Hospitality MARIN LEED NO 86% Interest Rate Type Fixed 1% Office 26% (4) Other 5% Multifamily 42% Floating 99% Multifamily Class-B 30% Class-A 70% Note: The charts above are based on total assets. Total assets reflect the principal amount of our loan portfolio (1) Map excludes one real estate owned asset with a net carrying value of $81 million 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 (3) 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 (4) "Other" property types include: 2% Condo (Residential), 1% Student Housing, 1% Single Family Rental and 1% Self-Storage (5) Office property certification % is based on current principal loan balance; see description for LEED certification in the Appendix KREF 8#91Q '23 2Q '23 Portfolio Credit Quality Overview Collected 99% of interest payments due on loan portfolio 22% 0 - 60% 25% 0 - 60% 20% Loan-to-Value(¹)(2) 60 - 65% 65 - 70% 70 - 75% Weighted Average LTV(³): 66% 21% 31% 60 - 65% 23% 29% 20% 4% 75 - 80% 5% 75-80% I Loan Count Loan Count 0 0% 1 0% 1 0 Risk Rating Distribution 0% 1 <1% 68 2 87% 2 4 Weighted Average Risk Rating (3): 3.2 3 62 83% 5 3 9% 5 10% 4 65 - 70% 70 - 75% Weighted Average LTV (³): 65% Note: The charts above are based on percentage of our loan portfolio (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 in the footnotes to the "Portfolio Details" Summary in the Appendix (2) Includes non-consolidated senior interests and excludes three 5 risk-rated loans (3) Weighted average is weighted by current principal amount KREF 2 Weighted Average Risk Rating (3): : 3.2 4% 5 3 7% 5 9#10Case Studies: Watch List Loans (Risk Rating 5) Investment Loan Type Investment Date Collateral Loan Purpose Location Committed Amount Current Principal Amount Loan Basis Coupon Max Remaining Term (Yrs.) Loan Risk Rating Mountain View Office Floating-Rate Senior Loan July 2021 Five Class-A Office Buildings totaling 446k SF Acquisition Mountain View, CA $250 million (¹) $200 million $651 / SF + 3.4% 3.1 5 Minneapolis Office Floating-Rate Senior Loan (2) November 2017 Two Class-A Office Buildings totaling 1.1mm SF Refinance Minneapolis, MN $199 million $194 million $182 / SF +2.3% (2) 2.0(²) 5 (2) (2) Philadelphia Office Floating-Rate Senior Loan April 2019 Four Office Building Portfolio totaling 711k SF Acquisition Philadelphia, PA $177 million $155 million $216 / SF + 2.6% 0.1 5 (1) The total whole loan is $363 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 69% of the loan or $250 million (2) In June 2023, KREF restructured the $194 million senior loan into a $120 million senior mortgage loan (fully funded) and a $79 million mezzanine note (with $5 million in unfunded commitment). The restructured senior loan earns a coupon rate of S+2.25% and the restructured mezzanine note earns a fixed 4.5% PIK interest rate. Post modification, the loan's maximum maturity is July 2025, assuming all extension options are exercised KREF 10#11Case Studies: Watch List Loans (Risk Rating 4) Investment Loan Type Investment Date Collateral Loan Purpose Location Committed Amount Current Principal Amount Loan Basis Coupon Max Remaining Term (Yrs.) Loan Risk Rating Washington, D.C. Office November 2021 Class-A Office totaling 357k SF Refinance Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan Floating-Rate Senior Loan February 2021 January 2022 Washington, D.C. $188 million $175 million $489 / SF +3.4% 3.4 Boston Office 4 Class-A Office totaling 741k SF Refinance Boston, MA $188 million $188 million (¹) $506 / SF + 3.4% 2.6 (1) 4 Washington, D.C. Office December 2019 Class-A Office totaling 204k SF Refinance Washington, D.C. $176 million $162 million $792 / SF + 3.5% 1.5 4 Chicago Office (1) Amounts include $150 million of non-consolidated senior interest. KREF's retained mezzanine position is $38 million KREF July 2019 Class-A Office totaling 1.0 million SF Refinance Chicago, IL $150 million $118 million $114/SF + 3.3% 1.1 West Hollywood Multifamily 4 37-unit Class-A Multifamily Refinance West Hollywood, CA $107 million $102 million $2,756,757 / unit + 3.1% 3.6 4 11#12Financing Overview: 76% Non-Mark-To-Market Diversified financing sources totaling $8.9 billion with $2.8 billion of undrawn capacity Summary of Outstanding Financing Maximum Capacity Outstanding Face Amount Weighted Avg. Coupon (¹) ($ in Millions) Term Credit Facilities Term Lending Agreements Warehouse Facility Secured Term Loan Corporate Revolving Credit Facility Total Debt Collateralized Loan Obligations Term Loan Facility Asset Specific Financing Total Leverage $2,000 $2,046 $500 $345 $610 $5,501 $1,943 $1,000 $491 $8,935 $1,550 $1,438 $0 $345 $50 $3,383 $1,943 $566 $220 $6,112 +1.9% +1.8% n/a +3.6% +2.0% +1.6% +1.9% +2.9% Advance Rate 67.7% 77.7% n/a 84.5% 80.0% 82.7% (1) Weighted average coupon expressed as spread over Term SOFR (2) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions Non- MTM (2) Revolver 1% Asset Specific 3% Leverage Ratios Debt-To-Equity Ratio (3) Senior Loan Interests 4% 2.2X Term Credit Facilities 24% 4.0x Secured Term Loan 5% Total Leverage Ratio (4) Outstanding Financing (5) Collateralized Loan Obligations 30% Term Lending Kerm Loan Agreements 23% Facility 9% Non-Mark- to-Market 76% (3) Represents (i) total outstanding debt agreements (excluding non-recourse facilities), and secured term loan, less cash to (ii) total permanent equity, in each case, at period end (4) Represents (i) total outstanding debt agreements, secured term loan, and collateralized loan obligation, less cash to (ii) total permanent equity, in each case, at period end (5) Based on outstanding face amount of secured financing, including non-consolidated senior interests, that resulted from non-recourse sales of senior loan interest in loans KREF originated KREF 12#13Financing Overview: Term Credit Facilities ($ in Millions) Counterparty Drawn Capacity Collateral: Loans / Principal Balance Final Stated Maturity(¹) (2) Weighted Average Pricing Weighted Average Advance Mark-to-market WELLS FARGO $682 $1,000 9 Loans / $951 September 2026 +1.6% 71.7% Credit Only (1) Based on extended maturity date (2) Weighted average pricing expressed as spread over Term SOFR (3) Based on principal balance of financing KREF Morgan Stanley $506 $600 11 Loans / $742 December 2025 + 2.0% 68.2% Credit Only Goldman Sachs $362 $400 8 Loans / $598 October 2025 +2.6% 60.6% Credit Only Total or Weighted Average $1,550 $2,000 28 Loans / $2,291 +1.9% 67.7% Property Type(3): Single Family Rental 3% Industrial 16% Life Science 16% Office 35% Multifamily 31% 13#14Liquidity Overview In addition to the available liquidity below, KREF had $18 million of unencumbered senior loans that can be pledged to financing facilities subject to lender approval as of June 30, 2023 ($ in Millions) $1,000 $900 (1) $800 $700 $600 $500 $400 $300 $200 $100 $0 $208 Cash Sources of Available Liquidity $560 Undrawn Corporate Revolver $32 Approved and Undrawn (1) Credit Capacity $800 Total Available Liquidity 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 KREF 14#15Portfolio Positioned for Rate Environment 99% floating-rate loan portfolio indexed to Term SOFR continues to benefit from a rising rate environment Term SOFR = 5.14% As of June 30, 2023 $0.15 $0.10 $0.05 $0.00 ($0.05) ($0.10) ($0.15) (1) Annual Net Interest Income Per Share Sensitivity to Change in Market Rates ($0.13) -1.00% ($0.07) -0.50% Note: Based on portfolio as of June 30, 2023 (1) Excludes loans accounted for under the cost recovery method KREF $0.00 0.00% Change in SOFR $0.07 +0.50% ($ Impact Per Share) $0.13 +1.00% 15#16Appendix KREF 16#17Portfolio Details ($ in Millions) # Senior Loans(9) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Investment (¹) 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. 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 (¹0) Senior Loan (¹1) Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Location Arlington, VA Boston, MA Bellevue, WA Los Angeles, CA Various Mountain View, CA Bronx, NY Various Minneapolis, MN Various Washington, D.C. Boston, MA Various The Woodlands, TX. Philadelphia, PA Washington, D.C. West Palm Beach, FL New York, NY Boston, MA Oakland, CA Plano, TX Chicago, IL Redwood City, CA Seattle, WA Dallas, TX Boston, MA Arlington, VA Fontana, CA Fort Lauderdale, FL San Carlos, CA Various. Philadelphia, PA Cambridge, MA Pittsburgh, PA Miami, FL West Hollywood, CA Las Vegas, NV San Diego, CA Orlando, FL Boston, MA Washington, D.C. Phoenix, AZ Cary, NC Brisbane, CA Brandon, FL Dallas, TX Miami, FL Dallas, TX Charlotte, NC San Antonio, TX Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan. Senior Loan *See footnotes on subsequent page KREF Property Type Multifamily Life Science Office Multifamily. Industrial Office Industrial Multifamily Office Industrial Office Office Self Storage Hospitality Office Office Multifamily Condo (Residential) Life Science Office Office Office Life Science Life Science Office Multifamily Multifamily Industrial Hospitality Life Science Industrial Office Life Science Student Housing Multifamily Multifamily Multifamily Multifamily Multifamily Industrial Office Industrial Multifamily Life Science Multifamily Multifamily Multifamily Office Multifamily Multifamily Investment Date 9/30/2021 8/3/2022 9/13/2021 2/19/2021 4/28/2022 7/14/2021 8/27/2021 5/31/2019 11/13/2017 6/15/2022 11/9/2021 2/4/2021 12/21/2022 9/15/2021 4/11/2019 12/20/2019 12/29/2021 12/20/2018 4/27/2021 10/23/2020 2/6/2020 7/15/2019 9/30/2022 10/1/2021 12/10/2021 3/29/2019 1/20/2022 5/11/2021 11/9/2018 2/1/2022 6/30/2021 6/19/2018 12/22/2021 6/8/2021 10/28/2022 1/26/2022 12/28/2021 10/20/2021 12/14/2021 6/28/2022 1/13/2022 1/13/2022 11/21/2022 7/22/2021 1/13/2022 12/23/2021 10/14/2021 1/22/2021 12/14/2021 6/1/2022 Total Whole Loan $381.0 312.5 260.4 260.0 252.3 250.0 228.7 206.5 199.4 187.8 187.7 375.0 371.6 183.3 176.7 175.5 171.5 169.4 332.3 509.9 150.7 150.0 580.7 188.0 138.0 137.0 135.3 132.0 130.0 195.9 242.0 116.5 401.3 112.5 110.4 107.0 106.3 103.5 102.4 285.5 228.5 195.3 100.0 95.0 90.3 90.0 89.5 87.0 86.8 246.5 Committed Principal Amount¹² $381.0 312.5 260.4 260.0 252.3 250.0 228.7 206.5 199.4 187.8 187.7 187.5 185.8 183.3 176.7 175.5 171.5 169.4 166.2 159.7 150.7 150.0 145.2 140.3 138.0 137.0 135.3 132.0 130.0 125.0 121.0 116.5 115.7 112.5 110.4 107.0 106.3 103.5 102.4 100.0 100.0 100.0 100.0 95.0 90.3 90.0 89.5 87.0 86.8 86.3 Current Principal Amount $367.6 141.4 148.6 250.0 252.3 200.2 181.3 206.5 194.4 167.2 174.6 187.5 66.0 178.7 154.7 161.9 170.7 166.2 153.0 139.9 150.7 118.4 0.0 115.2 138.0 137.0 131.9 101.8 130.0 93.8 86.5 111.9. 76.7 112.5 94.0 102.0 102.0 103.5 91.7 99.3 60.4 50.4 94.6 90.8 66.2 78.4 89.5 87.0 81.1 80.3 Net Equity (3) $73.1 18.8 35.9 38.7 49.9 65.2 38.8 39.2 89.0 33.1 51.7 37.5 21.2 32.7 100.0 71.7 25.7 60.5 30.6 22.0 23.1 21.4 (1.2) 33.8 25.6 28.1 30.5 35.1 24.2 27.4 29.0 18.8. 19.9 17.2 22.6 15.5 20.0 18.7 24.5 20.3 9.5 13.9 18.0 17.8 9.7 15.4 17.3 19.5 16.3 19.8 Coupon (4)(5) +3.3% +4.2% +3.7% +3.7% +2.7% +3.4% +4.2% +4.0% +2.3% +2.9% +3.4% +3.4% +3.8% +4.3% +2.6% +3.5% +2.8% +3.7% +3.7% +4.4% +2.8% +3.3% +4.5% +3.2% +3.7% +3.4% +2.9% +4.7% +3.5% +3.6% +5.5% +3.3% +4.0% +3.0% +3.8% +3.1% +2.8% +2.9% +3.1% +3.0% +3.3% +4.0% +3.4% +3.1% +3.1% +2.9% +2.9% +3.4% +3.1% +2.8% Max Remaining Term (Yrs)(4) 3.3 4.1 3.8 2.7 3.9 3.1 3.2 1.9 2.0 4.0 3.4 2.6 4.5 3.3 0.1 1.5 3.5 0.5 2.9 2.4 1.6 1.1 4.3 3.3 3.4 0.8 3.6 2.9 0.4 3.6 3.0 3.6 3.5 2.9 4.4 3.6 3.5 3.4 3.5 4.0 4.6 3.6 4.4 3.1 3.6 3.5 3.4 2.6 3.5 3.9 Loan Per SF / Unit / Key $331,144 / unit $747/ SF $855/SF $466,400/unit $98 / SF $651 / SF $277 / SF $192,991 / unit $182/SF $120 / SF $489 / SF $506/ SF $19,792 / unit $196,635 / key $216/SF $792/SF $210,275/unit $2,480,099 / unit $635 / SF $430 / SF $208/ SF $114/SF $885/SF $735/SF $439 / SF $351,282 / unit $439,817 / unit $113/SF $375,723/key $640 / SF $75/SF $114/SF $1,072/SF $155,602 / unit $333,333/unit $2,756,757 / unit $193,182 / unit $448,052 / unit $242,027/unit $198 / SF $221/SF $57/SF $242,484 / unit $784/SF $196,506 / unit $241,221/ unit $304,422 / unit $294 / SF $220,377 / unit $103,007/unit LTV(4)(8) 69% 56% 63% 68% 64% n.a. 52% 74% n.a. 50% 55% 71% 65% 64% n.a. 58% 73% 69% 66% 55% 63% 57% 53% 69% 68% 59% 78% 64% 66% 68% 62% 53% 51% 74% 51% 65% 61% 71% 74% 52% 55% 57% 63% 71% 75% 67% 76% 63% 74% 68% Risk Rating 3 3 3 3 3 5 3 3 5 3 4 4 3 3 5 4 3 3 3 3 3 4 3 3 3 3 3 3 3 3 3 3 3 3 3 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 17#18Portfolio Details ($ in Millions) Senior Loans Investment (¹) 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 Senior Loan. Senior Loan Senior Loan. Senior Loan. Senior Loan 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Total / Weighted Average CMBS B-Pieces 1 RECOP (12) Total / Weighted Average Real Estate Owned 1 Total / Weighted Average Real Estate Asset. Location KREF Scottsdale, AZ Raleigh, NC Hollywood, FL Phoenix, AZ Denver, CO Washington, D.C. Dallas, TX Manassas Park, VA Plano, TX Nashville, TN Atlanta, GA Durham, NC San Antonio, TX Sharon, MA Queens, NY Reno, NV Carrollton, TX Dallas, TX Georgetown, TX San Diego, CA Denver, CO Portland, OR Portfolio Total / Weighted Average *See footnotes on subsequent page Property Type Multifamily Multifamily Multifamily Single Family Rental Multifamily Multifamily Multifamily Multifamily Multifamily Hospitality Multifamily Multifamily. Multifamily Multifamily Industrial Industrial Multifamily Multifamily Multifamily Multifamily Industrial Retail Investment Date 5/9/2022 4/27/2022 12/20/2021 4/22/2021 9/14/2021 12/4/2020 8/18/2021 2/25/2022 3/31/2022 12/9/2021 12/10/2021 12/15/2021 4/20/2022 12/1/2021 2/22/2022 4/28/2022 4/1/2022 4/1/2022 12/16/2021 4/29/2022 12/11/2020 12/16/2021 Total Loawhole $169.0 82.9 81.0 72.1 70.3 69.0 68.2 68.0 67.8 66.0 61.5 60.0 57.6 56.9 55.3 140.4 48.5 43.9 41.8 203.0 15.4 12,689.8 n.a. n.a. Committed Principal Amount¹² $84.5 82.9 81.0 72.1 70.3 69.0 68.2 68.0 67.8 66.0 61.5 60.0 57.6 56.9 55.3 50.5 48.5 43.9 41.8 40.0 15.4 8,966.6 40.0 40.0 n.a. 9,006.6 Current Principal Amount $84.5 78.5 81.0 58.0 70.2 66.8 68.2 68.0 66.6 64.7 58.6 55.1 56.2 56.9 53.0 50.5 46.9 41.9 41.8 39.5 9.9 7,755.0 35.7 35.7 81.4 81.4 7,872.1 Net Equity (3) $12.9 15.6 15.0 14.3 12.2 10.6 10.1 13.3 18.2 10.0 15.3 11.3 10.4 8.4 14.0 11.3 13.1 10.8 10.2 6.4 6.0 1,796.5 35.7 35.7 81.4 81.4 1,913.6 Coupon (45) +2.9% +3.0% +3.1% +4.9% +2.8% +3.6% +3.9% +2.7% +2.8% +3.7% +3.0% +3.0% +2.7% +2.9% +4.0% +2.7% +2.9% +2.9% +3.4% +2.6% +3.8% +3.3% +4.8% +4.8% n.a. 8.5% Term (Yrs) 3.9 3.9 3.5 2.9 3.3 2.4 3.2 3.7 3.8 3.5 3.5 3.5 3.9 3.4 0.7 3.9 3.8 3.8 3.5 3.9 2.5 3.0 5.9 5.9 n.a. 3.0 Loan Per SF / Unit / Key(7) $457,995 / unit $245,294 / unit $327,935 / unit $157,092 / unit $290,216 / unit $267,000/unit $189,444 / unit $223,684 / unit $250,255/unit $281,237/key $194,112/unit $159,714 / unit $164,275 / unit $296,484 / unit $86 / SF $117/SF $146,612 / unit $117,693/unit $199,048 / unit $453,089 / unit $47 / SF n.a. n.a. LTV/41(8) 64% 68% 74% 50% 78% 63% 70% 73% 75% 68% 67% 67% 79% 70% 68% 74% 74% 73% 68% 63% 61% 65% 58% 58% n.a. 65% Risk Rating 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 3.2 n.a. n.a. 3.2 18#19Portfolio Details Our total portfolio represents the current principal amount on senior and mezzanine loans, net equity in RECOP I, which holds CMBS B-Piece investments, and net carrying value of our sole REO investment. Excludes one impaired mezzanine loan with an outstanding principal of $5.5 million that was fully written off. (1) (2) (3) (4) (5) (6) (8) (9) (10) (11) (12) For Senior Loan 9, the total whole loan is $199.4 million, including (i) a fully funded senior mortgage loan of $120.0 million, at an interest rate of S+2.25% and (ii) a mezzanine note with a commitment of $79.4 million, of which $74.4 million was funded as of June 30, 2023, at a fixed interest rate of 4.5%. The mezzanine note interest is payment-in-kind ("PIK Interest"), which is capitalized, compounded, and added to the outstanding principal balance of the respective loans. For Senior Loan 12, the total whole loan is $375.0 million, co-originated and co-funded by us and a KKR affiliate. Our interest was 50% of the loan or $187.5 million, of which $150.0 million in senior notes were syndicated to a third party. Post syndication, we retained a mezzanine loan with a commitment of $37.5 million, fully funded as of June 30, 2023, at an interest rate of S+8.0%. For Senior Loan 20, the total whole loan is $509.9 million, co-originated and co-funded by us and a KKR affiliate. Our 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, we retained a mezzanine loan with a commitment of $25.0 million, of which $21.9 million was funded as of June 30, 2023, at an interest rate of S+13.0% For Senior Loan 36, the total whole loan is $107.0 million, including (i) a fully funded senior mortgage loan of $102.0 million, at an interest rate of S+3.06%, (ii) a senior mezzanine note with an unfunded commitment of $4.2 million as of June 30, 2023, at a fixed interest rate of 10.0% and (iii) a junior mezzanine note with an unfunded commitment of $0.8 million as of June 30, 2023, at a fixed interest rate 10.0% with certain profit share provisions, as defined in the loan agreement. 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. Net equity reflects (i) the amortized cost basis of our loans, net of borrowings; and (ii) the cost basis of our investments in RECOP I and REO. Weighted average is weighted by the current principal amount for our senior and mezzanine loans and by net equity for our RECOP I CMBS B-Pieces. Risk-rated 5 loans are excluded from the weighted average LTV. Coupon expressed as spread over Term SOFR. Max remaining term (years) assumes all extension options are exercised, if applicable. Loan Per SF / Unit / Key is based on the current principal amount divided by the current SF / Unit / Key. For Senior Loans 2, 3, 7, 23, 28, 31, 33, 42, 54, and 71, Loan Per SF / Unit / Key is calculated as the total commitment amount of the loan divided by the proposed SF / Unit / Key. For senior loans, 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 mezzanine loans, LTV is based on the current balance of the whole loan divided by the as-is appraised value as of the date the loan was originated; for RECOPI CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance. Weighted Average LTV excludes risk rated-5 loans. For Senior Loans 18, LTV is based on the current principal amount divided by the adjusted appraised gross sellout value net of sales cost. For Senior Loans 2, 3, 7, 23, 28, 31, 33, 42, 54, and 71, 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 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 participations. For Senior Loan 31, the total whole loan facility is $242.0 million, co-originated and co-funded by us and a KKR affiliate. Our interest was 50% of the facility or $121.0 million. The facility is comprised of individual cross-collateralized whole loans. As of June 30, 2023, there were eight underlying senior loans in the facility with a commitment of $121.0 million and outstanding principal of $86.5 million. For Senior Loan 32, Total Whole Loan, Committed Principal Amount, and Current Principal Amount excludes junior mezzanine notes with a total outstanding principal of $25.0 million that was fully written off. Represents our investment in an aggregator vehicle alongside RECOP I that invests in CMBS B-Pieces. Committed principal represents our total commitment to the aggregator vehicle whereas current principal represents the current funded amount. KREF 19#20Fully Extended Loan Maturities Fully extended weighted average loan maturity of 3.0 years ($ in Millions) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $285 KREF 2023 $475 2024 Note: Excludes CMBS B-Pieces held through an equity method investment Fully Extended Loan Maturities $920 2025 $2,881 2026 $3,068 2027 $126 2028 20#21Consolidated Balance Sheets (in thousands - except share and per share data) Assets Cash and cash equivalents (¹) Commercial real estate loans, held-for-investment Less: Allowance for credit losses Commercial real estate loans, held-for-investment, net Real estate owned, net Accrued interest receivable Equity method investments Other assets Total Assets Liabilities and Equity Liabilities Secured financing agreements, net Collateralized loan obligations, net Secured term loan, net Convertible notes, net Dividends payable Accrued interest payable Other liabilities Due to affiliates Total Liabilities Commitments and Contingencies Equity Preferred Stock, $0.01 par value, 50,000,000 shares authorized Series A cumulative redeemable preferred stock, (13,110,000 shares issued and outstanding as of June 30, 2023 and December 31, 2022); liquidation preference of $25.00 per share Common stock, $0.01 par value, 300,000,000 authorized (75,091,757 and 75,080,707 shares issued; 69,106,061 and 69,095,011 shares outstanding; as of June 30, 2023 and December 31, 2022) Additional paid-in capital Accumulated deficit Repurchased stock (5,985,696 shares repurchased as of June 30, 2023 and December 31, 2022) Total KKR Real Estate Finance Trust Inc. stockholders' equity Noncontrolling interests in equity of consolidated joint venture Total Equity Total Liabilities and Equity (1) Includes $80 million and $151 million held in collateralized loan obligation as of June 30, 2023 and December 31, 2022, respectively KREF $ $ $ $ June 30, 2023 207,698 7,445,958 (223,767) 7,222,191 81,405 39,512 35,486 22,953 7,609,245 $ 3,807,758 1,939,703 336,105 29,716 18,265 9,635 8,328 6,149,510 131 691 1,813,309 (257,512) (96,764) 1,459,855 $ (120) 1,459,735 7,609,245 $ December 31, 2022 239,791 7,494,138 (106,974) 7,387,164 80,231 39,005 36,849 19,281 7,802,321 3,748,691 1,935,592 336,828 143,237 29,711 17,859 10,245 8,722 6,230,885 131 691 1,808,983 (141,503) (96,764) 1,571,538 (102) 1,571,436 7,802,321 21#22Consolidated Statements of Income Three Months Ended March 31, 2023 (in thousands - except share and per share data) Net Interest Income Interest income Interest expense Total net ineterest income Other income Revenue from real estate owned operations Income (loss) from equity method investments Other income Total other income Operating Expenses General and administrative Provision for (reversal of) credit losses, net Management fees to affiliate Incentive compensation to affiliate Expenses from real estate owned operations Total operating expenses Income (Loss) Before Income Taxes, Noncontrolling Interests, Preferred Dividends, and Participating Securities' Share in Earnings Income tax expense Net Income (Loss) Net income (loss) attributable to noncontrolling interests Net Income (Loss) Attributable to KREF Trust Inc. and Subsidiaries Preferred stock dividends Participating securities' shares in earnings Net Income (Loss) Attributable to Common Stockholders 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 KREF $ $ $ $ $ June 30, 2023 159,629 115,677 43,952 1,984 551 4,437 6,972 4,710 56,335 6,559 611 2,656 70,871 (19,947) 177 (20,124) (96) (20,028) 5,326 418 (25,772) $ (0.37) $ (0.37) $ 69,115,654 $ 69,115,654 0.43 $ 152,530 $ 105,976 46,554 2,246 (347) 2,711 4,610 4,690 60,467 6,523 1,811 2,758 76,249 (25,085) 169 (25,254) (177) (25,077) 5,326 407 (30,810) $ (0.45) $ (0.45) $ 69,095,011 69,095,011 0.43 $ June 30, 2022 90,603 44,733 45,870 1,833 1,035 1,237 4,105 4,308 11,798 6,506 2,368 24,980 24,995 24,995 (66) 25,061 5,326 341 19,394 0.28 0.28 68,549,049 68,549,049 0.43 $ $ $ $ $ Six Months Ended June 30, 2023 312,159 $ 221,653 90,506 4,230 204 7,148 11,582 9,400 116,802 13,082 2,422 5,414 147,120 (45,032) 346 (45,378) (273) (45,105) 10,652 825 (56,582) $ (0.82) $ (0.82) $ 69,105,389 69,105,389 0.86 $ June 30, 2022 163,833 77,192 86,641 4,462 2,921 3,152 10,535 8,754 10,580 12,513 4,922 36,769 60,407 60,407 (122) 60,529 10,652 687 49,190 0.75 0.74 65,832,841 72,149,015 0.86 22#23Reconciliation of GAAP Net Income (Loss) 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, net Provision for (reversal of) credit losses, net Non-cash convertible notes discount amortization Distributable Earnings before realized loss on loan write-offs Distributable Earnings Weighted average number of shares of common stock outstanding, diluted (1) Numbers presented may not foot due to rounding KREF June 30, 2023 $ $ $ (25,772) $ 2,174 292 56,335 44 33,073 $ 33,073 $ 69,115,654 Per Diluted Share (¹) March 31, 2023 (0.37) $ (30,810) $ 0.03 0.82 Three Months Ended 0.48 $ 0.48 $ 2,152 1,173 60,467 89 33,071 $ 33,071 $ 69,095,011 Per Diluted Share (¹) June 30, 2022 (0.45) $ 19,394 $ 0.03 0.02 0.88 0.48 $ 0.48 $ 2,040 (190) 11,798 90 33,132 $ 33,132 $ 68,549,049 Per Diluted Share (¹) 0.28 0.03 0.17 0.48 0.48 23#24Key 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. 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. KREF 24