#1KKR REAL ESTATE FINANCE TRUST KKR Real Estate Finance Trust Inc. Fourth Quarter and Full Year 2021 Supplemental Information February 8, 202#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, 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 February 8, 2022. 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 December 31, 2021 unless otherwise indicated. This presentation also includes non-GAAP financial measures, including Distributable Earnings and Distributable Earnings per Diluted Share. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with U.S. GAAP. KKR REAL ESTATE FINANCE TRUST#3KKR Real Estate Finance Trust Inc. Overview Best In Class Portfolio $6.8 Billion Investment Portfolio 99% Senior Loans $131 Million Average Loan Size(¹) 74% Multifamily & Office 100% Performing Senior loans secured primarily by transitional, institutional multifamily and office properties owned by high quality sponsors. Conservative Balance Sheet (4) (5) Figures represent AUM across all KKR real estate transactions. 3 $6.7 Billion Financing Capacity 71% Fully Non-Mark-to-Market(2) $529 Million Current Liquidity (3) Conservative liability management focused on diversified non-mark-to-market financing KREF's Manager Fully Integrated with KKR (1) Average loan commitment is inclusive of the unfunded KREF commitment. (2) Based on outstanding face amount of secured financing, including non-consolidated senior interests, and excludes convertible notes and the corporate revolving credit facility. (3) Includes $271.5 million in cash, $200.0 million undrawn corporate revolver capacity, and $57.4 million of available borrowings based on existing collateral. As of December 31, 2021. 23% KKR Ownership in KREF $471 Billion $25 Billion Global AUM(4) Balance Sheet(4) $41 Billion Real Estate AUM(4) (5) 135+ 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 KKR REAL ESTATE FINANCE TRUST#4Fourth Quarter and Full Year 2021 Highlights Financials Originations 4 Portfolio Liquidity & Capitalization ● ● ● ● ● ● ● ● ● Net income(¹) of $0.59 and $2.21 per diluted share for 4Q and full year 2021, respectively Distributable Earnings(2) of ($0.05) and $1.63 per diluted share for 4Q and full year 2021, respectively. Distributable earnings is net of $32.9 million, or $0.55 and $0.58 per diluted share, of realized losses on loan write-offs for 4Q and full year 2021, respectively ● Book Value per Common Share(³) (“BVPS") of $19.37 per share, compared to $19.09 per share in 3Q'21, representing seven consecutive quarters of book value accretion Q4 record originations of 18 floating-rate senior loans totaling $1.8 billion with $1.5 billion of initial fundings Full year 2021 record originations of 37 floating-rate senior loans totaling $4.8 billion with $3.6 billion of initial fundings Subsequent to year-end, originated six floating-rate senior loans totaling $652.6 million with $433.9 million of initial fundings $6.8 billion predominantly senior loan portfolio ● Multifamily and office assets represent 74% of loan portfolio Weighted average risk rating of 2.9 Received $679.6 million in loan repayments Completed an accretive underwritten public offering of 5,547,361 common shares at $21.76 per share, resulting in $120.4 million of net proceeds. The offering was $0.22 per share accretive to BVPS. In February 2022, priced a $1.0 billion managed multifamily CLO. The CLO is expected to close on or around February 10, 2022 and will provide KREF with match-term financing on a non-mark-to-market and non-recourse basis, and features a two-year reinvestment period with an 84.75% advance rate at a weighted average running cost of capital of SOFR + 1.71%, before transaction costs. Note: Net income attributable to common stockholders per share and Distributable Earnings per share are based on diluted weighted average shares outstanding for the quarter ended December 31, 2021; book value per share is based on common shares outstanding as of December 31, 2021. (1) Represents Net Income attributable to common stockholders. Completed repricing of $297.8 million existing Term Loan B and a $52.2 million add-on, for an aggregate principal amount of $350.0 million. The new Term Loan B bears interest at L+3.50% and is subject to a LIBOR floor of 0.50%, which is an aggregate improvement of 1.75%. 71% of financing is fully non-mark-to-market and the remaining balance is only mark-to-credit $528.9 million of available liquidity, including $271.5 million of cash, and $200.0 million undrawn on the corporate revolver In January 2022, KREF completed an offering of additional 6,210,000 shares of its 6.5% Series A Cumulative Redeemable Preferred Stock at a liquidation preference of $25.00 per share, resulting in net proceeds of $151.2 million. (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. (3) Book value per share includes the year-to-date ("YTD") impact of a ($3.3) million, or ($0.05) per common share, non-cash redemption value adjustment to our redeemable Special Non-Voting Preferred Stock (SNVPS'). On October 1, 2021, KREF redeemed its SNVPS for a cash redemption value of $5.1 million, thus eliminating the cumulative negative impact of the SNPVS on KREF's book value. KKR REAL ESTATE FINANCE TRUST#54Q'21 Financial Summary Income Statement LO ($ in Millions) Net Interest Income Other Income Operating Expenses and Other Preferred stock dividends and redemption value adjustment Provision for credit losses Net Income Attributable to Common Stockholders Weighted Average Shares Outstanding, Diluted Net Income per Share, Diluted Distributable Earnings (¹) Distributable Earnings per Share, Diluted (¹) Dividend per Share 5 4Q21 $42.4 7.4 (12.7) (5.0) 3.1 $35.2 59,453,264 $0.59 ($2.9) ($0.05) $0.43 ($ in Millions) Total Portfolio Term Credit Facilities Term Lending Agreements Asset Specific Financing Revolving Credit Facility Secured Term Loan Convertible Notes Total Debt Term Loan Facility Collateralized Loan Obligations (1) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. (2) Represents the GAAP principal amount on senior and mezzanine/other loans, net equity in RECOP I, and one real estate owned retail asset. (3) Represents (i) total debt less cash to (ii) total permanent equity. (4) Represents (i) total leverage less cash to (ii) total permanent equity. Total Leverage Cash Total Permanent Equity Common Stockholders' Equity Debt-to-Equity Ratio (³) Total Leverage Ratio (4) Shares Outstanding Book Value per Share (5) (5) Book value per share includes (i) CECL credit loss allowance of ($23.7) million or ($0.39) per common share, and (iii) the YTD impact of ($3.3) million, or ($0.05) per common share, non-cash redemption value adjustment to our redeemable SNVPS. On October 1, 2021, KREF redeemed its SNVPS for a cash redemption value of $5.1 million, thus eliminating the cumulative negative impact of the SNPVS on KREF's book value. Balance Sheet 4Q21 $6,478.4(2) 1,554.8 1,117.6 60.0 135.0 350.0 143.8 $3,361.2 870.5 1,095.3 $5,327.0 271.5 1,361.6 1,188.9 2.3x 3.7x 61,370,732 $19.37 KKR REAL ESTATE FINANCE TRUST#6Recent Operating Performance 1Q'21 Net income: Net Income (¹) and Distributable Earnings (2) $29.2 Distributable earnings: $0.52 $30.4 $0.55 1Q'21 2Q¹21 $29.3 $30.4 $0.52 $0.54 2Q¹21 3Q'21 $32.0 $34.5 $0.57 $0.62 3Q'21 4Q'21 $35.2 ($2.9) $0.59 ($ in Millions) 4Q'21 ($0.05) Net Income per Diluted Share Distributable Earnings per Diluted Share (1) Represents Net Income attributable to common stockholders. (2) See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP. 6 $0.43 9.1% 1Q'21 Dividend per share: $0.43 $0.43 Dividend yield on book value per share: 9.1% $18.89 Dividends and Book Value Per Share 1Q¹21 2Q¹21 $18.91 3Q'21 2Q¹21 $0.43 9.0% $19.09 3Q'21 ■Book Value per Share 4Q¹21 $0.43 8.9% $19.37 4Q'21 KKR REAL ESTATE FINANCE TRUST#7Last Twelve Months Loan Activity ($ in Millions) I Future Funding I Obligations (2) I $5,470 $472 $4,998 4Q'20 Portfolio $576 $244 1Q¹21 1Q'21 Fundings Repayments (3) $5,784 $454 $5,330 1Q'21 Portfolio Portfolio Funding Activity - Outstanding Principal (¹) $559 $271 2Q¹21 2Q¹21 Fundings Repayments (3) $6,466 $848 $5,618 2Q¹21 Portfolio $1,143 3Q'21 3Q'21 Fundings Repayments (1) Includes capital committed to our investment in an aggregator vehicle that invests in CMBS and one real estate owned retail asset. (2) Future funding obligations are generally contingent upon certain events and may not result in investment by us. (3) Includes $0.4 million, $0.4 million, $0.5 million and $0.8 million PIK interest for 4Q'21, 3Q'21, 2Q'21 and 1Q'21, respectively. 7 $935 (3) $7,051 $1,225 $5,826 3Q'21 Portfolio $1,679 $680 (3) $33 4Q'21 4Q'21 4Q'21 Fundings Repayments Loan write-off $8,160 $1,368 $6,792 4Q'21 Portfolio KKR REAL ESTATE FINANCE TRUST#84Q'21 Loan Originations Investment Loan Type Loan Size Location Collateral Loan Purpose LTV(2) Investment Date Originations - Select Case Studies Asset Photos Washington, D.C. Office Floating-Rate Senior Loan $187.7 million Washington, D.C. Class-A Office totaling 357k SF Refinance 55% November 2021 West Palm Beach Multifamily Floating-Rate Senior Loan $171.5 million West Palm Beach, FL 812-unit Class-A Multifamily Refinance 73% December 2021 HERR (1) The total whole loan is $188.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 75% of the loan or $140.3 million. (2) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated. Seattle Life Science Floating-Rate Senior Loan $140.3 million(1) Seattle, WA Class-A Life Science totaling 210k SF Acquisition 69% October 2021 花拉·法出版 KKR REAL ESTATE FINANCE TRUST#94Q'21 Loan Originations - Select Case Studies Investment Loan Type Loan Size Location Collateral Loan Purpose LTV(3) Investment Date Asset Photos Dallas Office Floating-Rate Senior Loan $138.0 million Dallas, TX Class-A Office totaling 314k SF Refinance 68% December 2021 Cambridge Life Science Floating-Rate Senior Loan $115.7 million(1) Cambridge, MA Class-A Life Science totaling 374k SF Construction 51% December 2021 Doral Multifamily Floating-Rate Senior Loan $106.0 million (2) Doral, FL 631-unit Class-A Multifamily Acquisition 77% December 2021 Representative Photo (1) The total whole loan is $401.3 million, co-originated and co-funded by KREF and KKR affiliates. KREF's interest was 29% of the loan or $115.7 million. (2) The total whole loan is $212.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 50% of the loan or $106.0 million. (3) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the total commitment amount divided by the as-stabilized appraised value as of the date the loan was originated. 9 KKR REAL ESTATE FINANCE TRUST#10KREF Loan Portfolio by the Numbers Current Portfolio: $7.1 billion (¹) Including net funding and repayment activity subsequent to quarter-end $2,083 4Q'17 12% Total Portfolio Growth $4,134 4Q'18 $5,075 4Q'19 Geography (2) 14% 5% $4,998 4Q'20 11% 8% 6% $10% ($ in Millions) $6,792 4Q'21 12% Investment Type(3) Class-B 9% Senior Loans 99.4% (4) KREF classifies a loan as life science if more than 50% of the gross leasable area is leased to, or will be converted to, life science-related space. (5) Office property certification % is based on current principal loan balance. See description for LEED certification in the appendix. 10 Non-Senior 0.6% Class-A 91% Office (5) Industrial. 4% Hospitality 7% Life Science (4) 9% MELINARES Property Type LEED Condo (Residential) Housing Rental 4% 3% <1% 77% Interest Rate Type Student Single Family Office 28% Multifamily 46% Class-B 25% Floating 100.0% Other <5%, 22% Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans. (1) As of February 4, 2022. (2) Map excludes $5.5 million Midwest Mezzanine portfolio, $41.1 million real estate corporate loan, and one real estate owned retail asset with a net carrying value of $78.6 million. (3) Senior loans include senior mortgages and similar credit quality loans, including related contiguous junior participations in senior loans where KREF has financed a loan with structural leverage through the non-recourse sale of a corresponding first mortgage and excludes vertical loan syndications. Multifamily Class-A 75% KKR REAL ESTATE FINANCE TRUST#11Portfolio Credit Quality Remains Strong Collected 97.3% of interest payments due on loan portfolio and 100% on loans rated 4 or better (% of total loan portfolio) 3Q'21 16% 0% - 60% 4Q'21 14% 0% - 60% 21% 60% 65% 19% 60% - 65% Loan-to-Value(1,2) 24% 65% - 70% 28% 65% - 70% 29% 70% - 75% 31% 70% - 75% Weighted Average LTV(3): 67% 10% 75% - 80% Weighted Average LTV(3): 68% 8% 75% - 80% (% of loan portfolio) 3Q'21 (2) Includes non-consolidated senior interests and excludes vertical loan syndications and a real estate corporate loan. (3) Weighted average is weighted by current principal amount. (4) Excludes $5.5 million mezzanine loan risk-rated 5 that was fully written-off as of December 31, 2021. 11 0% 1 4Q'21 4% 1 9% 2 Risk Rating Distribution 6% 2 3 82% 3 43 Loan Count 84% 3 54 7% 4 4 6% 4 4 Weighted Average Risk Rating (3): 3.0 Loan Count (1) LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value, except as noted on page 20. 2% 5 2 Weighted Average Risk Rating (3) (4): 2.9 0% 5 KKR REAL ESTATE FINANCE TRUST#12Case Studies: Watch List Loans (Risk Rating 4 & 5) Investment Loan Type Investment Date Collateral Loan Purpose Location Committed Amount Current Pri al Amount Loan Basis Coupon LTV(¹) Max Remaining Term (Yrs.) Loan Risk Rating New York Condo Floating-Rate Senior Loan December 2018 126-Unit Class-A Residential Condominium Acquisition New York, NY $235 million $211 million $1,316 / SF L + 3.6% 71% 2.0 4 Queens Industrial Floating-Rate Senior Loan July 2017 Two Class-B Buildings Totaling 595k RSF Acquisition Queens, NY $70 million $68 million $112 / SF L + 3.0% 77% 0.6 4 New York Condo Floating-Rate Senior Loan August 2017 6 Luxury Residential Condominiums Refinance New York, NY $40 million $40 million $1,333 / SF L + 4.2% 73% 0.3 The $76.2 million Brooklyn hotel loan previously on the watch list repaid in full in January 2022. For the Portland retail loan previously on the watch list, KREF took title to the defaulted senior loan with an outstanding principal balance and net carrying value of $109.6 million and $69.3 million, respectively. Accordingly, KREF recognized an $8.2 million GAAP gain from reversal of the allowance for credit losses and recognized a $32.1 million realized loss on write-off through distributable earnings. (1) 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. 12 KKR REAL ESTATE FINANCE TRUST#13Financing Overview: 71% Non-Mark-To-Market Diversified financing sources totaling $6.7 billion with $1.4 billion of undrawn capacity Summary of Outstanding Financing ($ in Millions) Term Credit Facilities Term Lending Agreements Warehouse Facility Asset Specific Financing Secured Term Loan Convertible Notes Corporate Revolving Credit Facility Total Corporate Obligations Term Loan Facility Collateralized Loan Obligations Total Leverage Maximum Capacity $1,840 $1,172 $500 $300 $350 $144 $335 $4,641 $1,000 $1,095 $6,736 Outstanding Face Amount $1,555 $1,118 $0 $60 $350 $144 $135 $3,362 $870 $1,095 $5,327 Weighted Avg. Coupon L+1.6% L+1.8% n/a L+1.7% L+3.5% (5) 6.1% L+2.0% L+1.6% L+1.3% Advance Rate 69.7% 81.1% n/a 78.9% 80.7% 84.3% Non- MTM (1) (1) Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions. (2) Represents (i) total outstanding debt agreements (excluding non-recourse term loan facility), secured term loan and convertible notes, less cash to (ii) total permanent equity, in each case, at period end. (3) Represents (i) total outstanding debt agreements, secured term loan, convertible notes, and collateralized loan obligation, less cash to (ii) total permanent equity, in each case, at period end. (4) Based on outstanding face amount of secured financing, including non-consolidated senior interests, which result from non-recourse sales of senior loan interest in loans KREF originated, and excludes convertible notes and the corporate revolving credit facility. (5) Loan bears interest at L +3.5% and is subject to a LIBOR floor of 0.5%. 13 Asset Specific Financing 1% Senior Loan Interests 6% Leverage Ratios 2.3x Secured Term Loan 7% Debt-to-Equity Total Leverage Ratio (3) Ratio Outstanding Secured Financing(4) (2) 3.7x Term Credit Facilities 29% Term Lending Agreements 21% Collateralized Loan Obligations 20% Term Loan Facility 16% Non-Mark- to-Market 71% KKR REAL ESTATE FINANCE TRUST#14Financing Overview: Term Credit Facilities ($ in Millions) Counterparty Drawn Capacity Collateral: Loans / Principal Balance Final Stated Maturity (¹) Weighted Average Pricing Weighted Average Advance Mark-to-market (1) Based on extended maturity date. (2) Based on principal balance of financing. 14 WELLS FARGO $981 $1,000 14 Loans / $1,396 September 2026 L + 1.4% 70.3% Credit Only Morgan Stanley $384 $600 8 Loans / $552 December 2023 L +1.9% 69.5% Credit Only Goldman Sachs $191 $240 6 Loans / $282 October 2023 L + 2.0% 67.6% Credit Only Property Type(2): Total / Weighted Average $1,555 Student Housing 4% Life Science 7% Industrial 7% $1,840 28 Loans / $2,230 L + 1.6% 69.7% Condo 1%- Office 26% Single Family Rental <1% Multi- family 55% KKR REAL ESTATE FINANCE TRUST#15Liquidity Overview • In addition to the available liquidity below, KREF had $235.3 million of unencumbered senior loans that can be pledged to financing facilities subject to lender approval, as of December 31, 2021. Sources of Available Liquidity ($ in Millions) $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $271.5 Cash $200.0 Undrawn Corporate Revolver $57.4 Approved and Undrawn Credit Capacity (1) $528.9 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. 15 KKR REAL ESTATE FINANCE TRUST#16Portfolio Repositioning for Higher Rate Environment • 100% of the loan portfolio is indexed to one-month USD LIBOR • 54% of the portfolio is subject to a LIBOR floor of at least 0.25% and 9% of total outstanding financing, including the Secured Term Loan, is subject to a LIBOR floor greater than 0.0% • Portfolio weighted average LIBOR floor of 0.74% Ongoing portfolio rotation out of higher rate-floor loans is positioning KREF to benefit from a rising rate environment Net Interest Income Per Share Quarterly Sensitivity to LIBOR ● 16 $0.10 $0.05 $0.00 - $0.05 - $0.10 -$0.15 ($ Impact Per Share / Q) $0.02 $0.02 $0.02 LIBOR = 0.00% LIBOR as of 12/31/2021 0.10% 2021 Loan Portfolio $0.00 3Q21 Loan Portfolio LIBOR 0.25% ($0.03) ($0.02 ($0.01) 0.50% ■4Q21 Loan Portfolio ($0.07) ($0.02) ($0.04) 0.75% ($0.03) ($0.05) ($0.11) 1.00% ($0.04) ($0.06) ($0.14) KKR REAL ESTATE FINANCE TRUST#17Appendix 17 KKR REAL ESTATE FINANCE TRUST#18Portfolio Details ($ in Millions) # Senior Loans (¹) 1 Senior Loan Senior Loan Senior Loan 4 Senior Loan Senior Loan Senior Loan 2 3 56789 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Investment 10 11 12 Senior Loan 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 Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan 40 41 42 Senior Loan 45 46 47 48 49 50 Senior Loan Senior Loan (9) Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan 43 Senior Loan 44 Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Senior Loan Location Arlington, VA Bellevue, WA Los Angeles, CA Boston, MA Mountain View, CA New York, NY Bronx, NY Various Various Minneapolis, MN Washington, D.C. Boston, MA Chicago, IL *See footnotes on subsequent page 18 The Woodlands, TX Philadelphia, PA Washington, D.C. West Palm Beach, FL Chicago, IL Boston, MA Philadelphia, PA New York, NY Oakland, CA Plano, TX Seattle, WA Boston, MA Dallas, TX Fort Lauderdale, FL Fontana, CA Irving, TX Cambridge, MA Pittsburgh, PA Las Vegas, NV Doral, FL San Diego, CA Orlando, FL Brisbane, CA State College, PA Dallas, TX Miami, FL Denver, CO Dallas, TX Charlotte, NC New York, NY Mesa, AZ Hollywood, FL Seattle, WA Brooklyn, NY Phoenix, AZ Arlington, VA Denver, CO Property Type Multifamily Office Multifamily Life Science Office Condo (Resi) Industrial Multifamily Industrial Office Office Office Multifamily Hospitality Office Office Multifamily Office Life Science Office Multifamily Office Office Life Science Multifamily Office Hospitality Industrial Multifamily Life Science Student Housing Multifamily Multifamily Multifamily Multifamily Life Science Student Housing Multifamily Multifamily Multifamily Office Multifamily Multifamily Industrial Multifamily Office Hospitality Single Family Rental Multifamily Multifamily Investment Date 9/30/2021 9/13/2021 2/19/2021 5/24/2018 7/14/2021 12/20/2018 8/27/2021 5/31/2019 6/30/2021 11/13/2017 11/9/2021 2/4/2021 6/6/2019 9/15/2021 4/11/2019 12/20/2019 12/29/2021 7/15/2019 4/27/2021 6/19/2018 12/5/2018 10/23/2020 2/6/2020 10/1/2021 3/29/2019 12/10/2021 11/9/2018 5/11/2021 4/22/2021 12/22/2021 6/8/2021 12/28/2021 12/10/2021 10/20/2021 12/14/2021 7/22/2021 10/15/2019 12/23/2021 10/14/2021 6/24/2021 1/22/2021 12/14/2021 3/29/2018 5/4/2021 12/20/2021 3/20/2018 1/18/2019 4/22/2021 10/23/2020 9/14/2021 Total Whole Loan (2) $381.0 520.8 260.0 250.5 362.8 234.5 381.2 216.5 425.0 194.4 187.7 375.0 186.0 183.3 182.6 175.5 171.5 170.0 332.3 165.0 163.0 509.9 153.7 188.0 138.0 138.0 130.0 119.9 117.6 401.3 112.5 106.3 212.0 103.5 102.4 95.0 93.4 90.0 89.5 88.5 87.0 86.8 86.0 84.3 81.0 80.7 76.2 72.1 141.8 70.3 Committed Principal Amount (2) Principal Amount $381.0 260.4 260.0 250.5 250.0 234.5 228.7 216.5 212.5 194.4 187.7 187.5 186.0 183.3 182.6 175.5 171.5 170.0 166.2 165.0 163.0 159.7 153.7 140.3 138.0 138.0 130.0 119.9 117.6 115.7 112.5 106.3 106.0 103.5 102.4 95.0 93.4 90.0 89.5 88.5 87.0 86.8 86.0 84.3 81.0 80.7 76.2 72.1 70.9 70.3 Current $352.9 61.0 249.7 243.6 184.1 210.7 97.5 215.3 3.7 194.4 111.9 187.5 179.5 168.3 156.9 119.7 169.2 136.6 123.1 165.0 148.0 106.5 131.0 87.3 137.0 135.8 130.0 43.2 108.9 50.6 112.5 102.0 106.0 103.5 88.9 85.0 85.3 77.5 89.5 88.5 87.0 76.0 86.0 57.0 81.0 80.7 76.2 15.7 70.9 69.3 Net Equity (3) $78.8 26.4 50.8 55.4 45.9 40.0 95.8 37.7 1.0 32.8 26.7 37.4 32.4 29.8 24.6 36.5 70.6 25.9 33.3 72.1 22.3 16.8 19.8 21.1 29.5 24.8 24.1 14.0 17.1 11.5 16.9 24.5 25.6 18.3 21.2 16.3 27.6 18.7 20.5 16.2 21.1 18.1 13.2 23.9 19.4 13.4 16.2 8.1 11.5 12.0 Future Funding (4) $28.1 199.4 10.3 6.9 65.9 23.8 131.2 1.2 208.8 75.8 3.6 15.0 25.7 55.8 2.3 33.4 43.1 15.0 8.3 22.7 53.0 1.0 2.2 76.7 8.7 65.1 4.3 13.5 10.0 8.1 12.5 10.8 27.3 56.4 1.0 Coupon (5) (6) L + 3.2% L + 3.6% L + 3.6% L + 3.2% L + 3.3% L + 3.6% L + 4.1% L + 3.1% L + 5.4% L+ 3.8% L +3.3% L +3.3% L +3.6% L + 4.2% L + 2.6% L + 3.4% L + 2.7% L + 3.3% L + 3.6% L + 2.5% L + 2.6% L + 4.3% L + 2.7% L+ 3.1% L + 2.7% L + 3.6% L+3.4% L + 4.6% L +3.3% L + 3.9% L + 2.9% L + 2.7% L + 2.8% L + 2.8% L + 3.0% L + 3.0% L + 2.7% L + 2.8% L + 2.8% L + 3.0% L +3.3% L + 3.0% L + 4.0% L + 3.2% L + 3.0% L+ 4.1% L + 2.9% L + 4.8% L+ 3.8% L + 2.7% Max Remaining Term (Yrs) (5) (7) 4.8 5.3 4.2 2.0 4.6 2.0 4.7 2.4 4.5 0.9 4.9 4.1 2.4 4.8 2.4 3.0 5.0 2.6 4.4 1.5 1.9 3.9 3.1 4.8 2.3 4.9 1.9 4.4 4.4 5.0 4.4 5.0 4.9 4.9 5.0 4.6 2.9 5.0 4.9 4.5 4.1 5.0 1.3 4.4 5.0 1.3 2.1 4.4 3.8 4.8 Loan Per SF / Unit / Key $317,965 / unit $ 200 / SF $ 465,874 / unit $ 521 / SF $ 599 / SF $1,316 / SF $ 118 / SF $ 201,206 / unit $ 8/ SF $ 179 / SF $ 321 / SF $ 506 / SF $364,837 / unit $ 185,155 / key $ 219 / SF $ 586 / SF $ 208,405 / unit $ 131 / SF $ 511 / SF $ 169 / SF $ 556,391 / unit $ 306 / SF $ 182 / SF $ 555 / SF $ 351,282 / unit $ 432 / SF $375,723 / key $ 37 / SF $ 119,949 / unit $ 469 / SF $ 155,602 / bed $ 193,182 / unit $ 335,975 / unit $ 448,052 / unit $ 234,565 / unit $ 734 / SF $ 71,474/ bed $ 238,488 / unit $ 304,422 / unit $ 295,000/unit $ 288 / SF $206,522 / unit $ 462,366 / unit $ 66/ SF $327,935 / unit $ 468 / SF $ 389,000/ key $ 34,268 / unit $393,858 / unit $ 286,157 / unit LTV (5)(8) 69% 63% 68% 53% 73% 71% 52% 74% 74% 65% 55% 71% 72% 64% 68% 58% 73% 59% 66% 71% 77% 65% 63% 69% 63% 68% 66% 64% 70% 51% 74% 61% 77% 71% 74% 71% 64% 67% 76% 77% 65% 74% 63% 55% 74% 56% 69% 50% 73% 78% Risk Rating JWA Wwww 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 JWWA Www N 3 4 3 3 KKR REAL ESTATE FINANCE TRUST#19Portfolio Details ($ in Millions) # Senior Loans (1) Investment 51 Senior Loan 52 Senior Loan 53 Senior Loan 54 Senior Loan 55 Senior Loan 56 Senior Loan 57 Senior Loan 58 Senior Loan 59 Senior Loan 60 Senior Loan 61 Senior Loan (10) Total / Weighted Average Non-Senior Loans 1 Total / Weighted Average CMBS B-Pieces Real Estate Corporate Loan (¹1) 1 RECOP I(¹2) Total / Weighted Average Real Estate Owned 1 Real Estate Asset (13) Total / Weighted Average Portfolio Total / Weighted Average Location Queens, NY Washington, D.C. Dallas, TX Austin, TX Nashville, TN Atlanta, GA Durham, NC Sharon, MA Georgetown, TX New York, NY Denver, CO *See footnotes on subsequent page 19 n.a. Various Portland, OR Property Type Industrial Multifamily Multifamily Multifamily Hospitality Multifamily Multifamily Multifamily Multifamily Condo (Resi) Industrial Multifamily Various Retail Investment Date 7/21/2017 12/4/2020 8/18/2021 9/12/2019 12/9/2021 12/10/2021 12/15/2021 12/1/2021 12/16/2021 8/4/2017 12/11/2020 12/11/2020 2/13/2017 12/16/2021 Total Whole Loan (2) 70.1 69.0 68.2 67.5 66.0 61.5 60.0 56.9 41.8 39.9 28.8 $10,004.0 102.6 $102.6 n.a. n.a. Committed Principal Amount (2) Principal Amount 70.1 69.0 68.2 67.5 66.0 61.5 60.0 56.9 41.8 39.9 28.8 $8,051.8 41.1 $41.1 40.0 $40.0 n.a. $8,132.9 Current 67.5 66.3 68.2 67.5 64.3 55.4 50.0 56.9 41.8 39.9 10.7 $6,635.9 41.1 $41.1 35.7 $35.7 78.6 $78.6 $6,791.3 Net Equity (3) 17.3 10.3 9.6 10.5 9.7 13.3 49.4 13.8 41.4 20.4 10.3 $1,623.6 40.5 $40.5 35.7 $35.7 78.4 $78.4 $1,778.2 Future Funding (4) 2.6 2.7 1.7 6.1 10.0 18.1 $1,368.1 $0.0 4.3 $4.3 n.a. $1,372.4 Coupon (5) (6) L + 3.0% L + 3.5% L + 3.8% L + 2.5% L + 3.6% L + 2.9% L + 2.9% L + 2.8% L + 3.3% L + 4.2% L + 3.8% L + 3.2% L + 12.0% 12.3% 4.6% 4.6% n.a. 4.0% Max Remaining Term (Yrs) (5) (7) 0.6 3.9 4.7 2.7 5.0 5.0 5.0 4.9 5.0 0.3 4.0 3.6 4.0 4.0 7.4 7.4 n.a. 3.6 Loan Per SF / Unit / Key $ 112 / SF $ 265,132 / unit $ 189,444 / unit $191,218 / unit $ 279,498 key $ 183,542 / unit $ 144,795 / unit $ 296,484 / unit $ 199,048 / unit $ 1,333 / SF $ 21 / SF n/a n.a. n.a. LTV (5)(8) 77% 63% 70% 74% 68% 67% 67% 70% 68% 73% 61% 68% n.a. n.a. 58% 58% n.a. 68% Risk Rating 4 3 3 3 3 3 3 3 3 4 3 2.9 3 3.0 n.a. n.a. 2.9 KKR REAL ESTATE FINANCE TRUST#20Portfolio Details Senior loans include senior mortgages and similar credit quality investments, including junior participations in our originated senior loans for which we have syndicated the senior participations and retained the junior participations for our portfolio and excludes vertical loan syndications. (1) (9) ● For Senior Loan 22, the total whole loan is $509.9 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 31% of the loan or $159.7 million, of which $134.7 million in senior notes were syndicated to third party lenders. Post syndication, KREF retained a mezzanine loan with a total commitment of $25.0 million, of which $16.7 million was funded as of December 31, 2021, at an interest rate of L + 12.9%. (2) Total Whole Loan represents total commitment of the entire whole loan originated. Committed Principal Amount includes participations by KKR affiliated entities and third parties that are syndicated/sold. (3) Net equity reflects (i) the amortized cost basis of our loans, net of borrowings and (ii) the cost basis of our investment in RECOP I. (4) Represents Committed Principal Amount less Current Principal Amount on Senior Loans and $4.3 million of unfunded commitment to RECOP I. (5) Weighted averages are weighted by current principal amount for senior loans and non-senior loans and by net equity for our RECOP I CMBS B-Piece investment. Non-Senior Loan 1 is excluded from the weighted average LTV. (6) L = one-month USD LIBOR rate; greater of (i) spot one-month USD LIBOR rate of 0.10% and (ii) LIBOR floor, where applicable, included in portfolio-wide averages represented as fixed rates. (7) Max remaining term (years) assumes all extension options are exercised, if applicable. (8) For senior loans, loan-to-value ratio ("LTV") LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value; for Senior Loan 6, LTV is based on the initial loan amount divided by the appraised bulk sale value assuming a condo-conversion and no renovation; for Senior Loan 60, LTV is based on the current principal amount divided by the adjusted appraised gross sellout value net of sales cost; for mezzanine loans, LTV is based on the current balance of the whole loan dividend by the as-is appraised value as of the date the loan was originated; for RECOP I CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance; for Senior Loans 2, 7, 9, 28, 30, 44, 48, and 61 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. 20 For Senior Loan 12, the total whole loan is $375.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 50% of the loan or $187.5 million, of which a $150.0 million senior note was syndicated to a third party lender. Post syndication, KREF retained a mezzanine loan with a total commitment of $37.5 million, fully funded as of December 31, 2021, at an interest rate of L + 7.9%. ● For Senior Loan 13, the total whole loan is $186.0 million, of which an $81.6 million senior note was syndicated to a third party lender. Post syndication, KREF retained the mezzanine loan and a 45% interest in the senior loan which both totaled $104.4 million commitment, of which $100.7 million was funded as of December 31, 2021, at a blended interest rate of L + 4.7%. For Senior Loan 9, the total whole loan facility is $425.0 million, co-originated and co-funded by KREF and a KKR affiliate. KREF's interest was 50% of the facility or $212.5 million. The facility is comprised of individual cross-collateralized whole loans. As of December 31, 2021, there were three underlying senior loans in the facility with a commitment of $31.6 million and outstanding principal of $3.7 million. (10) For Senior Loan 60, Loan per SF of $1,333 is based on the allocated loan amount of the residential units. Excluding the value of the retail and parking components of the collateral, the Loan per SF is $1,926 based on allocating the full amount of the loan to only the residential units. (11) Non-Senior Loan 1 is a real estate corporate loan to a multifamily operator. (12) 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. (13) Took title to one defaulted senior retail loan with an outstanding principal balance and net carrying value of $109.6 million and $69.3 million, respectively. The property was recognized on KREF's balance sheet as REO with a carrying value of $78.6 million, which included the estimated fair value of the property and capitalized transaction costs. KKR REAL ESTATE FINANCE TRUST#21Fully Extended Loan Maturities • Fully extended weighted average loan maturity of 3.6 years (1) ($ in Millions) $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $301.8 2022 (1) Excludes RECOP I CMBS B-Piece investment. 21 $609.7 2023 Fully Extended Loan Maturities (¹) $1,508.6 2024 $535.5 2025 $2,803.9 2026 $917.7 2027 KKR REAL ESTATE FINANCE TRUST#22Consolidated 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 Equity method investments Accrued interest receivable Other assets (2) Total Assets Liabilities and Equity Liabilities Secured financing agreements, net Collateralized loan obligations, net Secured term loan, net Convertible notes, net Loan participations sold, net Dividends payable Accrued interest payable 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 shares authorized Preferred stock, $0.01 par value (zero and 1 share issued and outstanding as of December 31, 2021 and 2020, respectively) Series A cumulative redeemable preferred stock, $0.01 par value, (6,900,000 and zero shares issued and outstanding as of December 31, 2021 and 2020, respectively; liquidation preference of $25.00 per share) Common stock, $0.01 par value, 300,000,000 authorized (65,271,058 and 59,519,754 shares issued; 61,370,732 and 55,619,428 shares outstanding as of December 31, 2021 and 2020, respectively) Additional paid-in capital Accumulated deficit Repurchased stock (3,900,326 shares repurchased as of December 31, 2021 and 2020) Total KKR Real Estate Finance Trust Inc. stockholders' equity Noncontrolling interests in equity of consolidated joint venture Total Permanent Equity Total Liabilities and Equity December 31, 2021 $ $ $ $ 271,487 6,316,733 (22,244) 6,294,489 78,569 35,537 15,241 7,916 6,703,239 3,726,593 1,087,976 338,549 141,851 26,589 6,627 7,521 5,952 5,341,658 69 613 1,459,959 (38,208) (60,999) 1,361,434 147 1,361,581 6,703,239 December 31, 2020 $ $ $ $ 110,832 4,844,534 (59,801) 4,784,733 33,651 15,412 20,984 4,965,612 2,574,747 810,000 288,028 140,465 66,232 24,287 5,381 4,823 6,243 3,920,206 1,852 556 1,169,695 (65,698) (60,999) 1,043,554 1,043,554 4,965,612 (1) Includes $54.0 million and $0.0 million held in collateralized loan obligation as of December 31, 2021 and 2020, respectively. (2) Includes $0.0 million and $15.9 million of loan repayment proceeds held by the servicer and receivable by KREF, and $2.3 million and $0.0 million of restricted cash as of December 31, 2021 and 2020, respectively. (3) Includes $1.5 million and $0.9 million of expected loss reserve for unfunded loan commitments as of December 31, 2021 and 2020, respectively. 22 KKR REAL ESTATE FINANCE TRUST#23Consolidated Statements of Income (in thousands - except share and per share data) Net Interest Income Interest income Interest expense Total net interest income Other Income Income (loss) from equity method investments Gain (loss) on sale of 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 (reversal of) credit losses, net Management fees to affiliate Incentive compensation to affiliate Total operating expenses Income (Loss) Before Income Taxes, Preferred Dividends, Redemption Value Adjustment and Participating Securities' Share in Earnings Income tax expense Net Income (Loss) Preferred Stock dividends and redemption value adjustment Participating securities' share in earnings Net Income (Loss) Attributable to Common Stockholders 23 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 December 31, 2021 $ $ $ $ 72,715 30,266 42,449 1,863 5,126 390 7,379 3,383 (3,077) 5,289 3,463 9,058 40,770 427 40,343 4,966 179 35,198 Three Months Ended 59,364,672 59,453,264 September 30, 2021 $ $ 0.59 $ 0.59 $ 0.43 $ 75,320 29,832 45,488 2,162 130 2,292 3,659 1,165 4,964 2,215 12,003 35,777 106 35,671 3,682 31,989 December 31, 2020 $ $ 0.57 $ 0.57 $ 55,637,480 56,011,243 0.43 $ 63,201 28,835 34,366 1,168 86 1,254 2,862 (3,438) 4,252 2,929 6,605 29,015 157 28,858 82 28,776 December 31, 2021 55,619,428 55,669,230 0.43 $ $ 0.52 $ 0.52 $ $ 279,950 114,439 165,511 6,371 5,126 686 12,183 14,235 (4,059) 19,378 10,273 39,827 137,867 684 137,183 11,369 179 125,635 2.22 2.21 December 31, 2020 $ $ $ $ A A Year Ended 56,571,200 56,783,388 1.72 $ 269,188 127,312 141,876 537 744 1,281 14,238 50,344 16,992 6,774 88,348 54,809 412 54,397 844 53,553 0.96 0.96 55,985,014 56,057,237 1.72 December 31, 2019 $ $ $ SA VA $ $ 274,335 158,860 115,475 4,568 (2,688) 1,665 2,453 5,998 10,522 17,135 3,272 30,929 90,544 579 89,965 (527) 90,492 1.58 1.57 57,426,912 57,532,490 1.72 KKR REAL ESTATE FINANCE TRUST#24Reconciliation of GAAP Net Income to Distributable Earnings (in thousands - except share and per share data) Net Income (Loss) Attributable to Common Stockholders Adjustments Non-cash equity compensation expense Unrealized (gains) or losses (¹) Provision for (reversal of) credit losses, net Gain on redemption of non-voting manager units Non-cash convertible notes discount amortization Distributable Earnings before realized losses on loan write-offs Realized losses on loan write-offs (2) Distributable Earnings Weighted average number of shares of common stock outstanding, diluted (3) Year Ended December 31, 2021 125,635 7,428 1,059 (4,059) (5,126) 361 125,298 (32,905) 92,393 56,783,388 Per Diluted Share (4)(5) 2.21 0.13 0.02 (0.07) (0.09) 0.01 2.21 (0.58) 1.63 December 31, 2021 35,198 1,413 1,463 (3,077) (5,126) 91 29,962 (32,905) (2,943) 59,364,672 Three Months Ended September 30, 2021 31,989 2,027 (748) 1,165 91 34,524 34,524 56,011,243 June 30, 2021 29,264 1,994 (364) (559) 90 30,425 30,425 55,907,086 March 31, 2021 29,184 1,994 708 (1,588) 89 30,387 30,387 55,731,061 (1) Includes $3.3 million, $2.5 million, $0.3 million, ($0.2) million and $0.7 million non-cash redemption value adjustment of our SNVPS, and ($2.2), ($1.1) million, $1.0 million, ($0.1) million and $0.0 million of unrealized mark-to-market adjustment to our RECOP I's underlying CMBS investments during FY'21, 4Q'21, 3Q'21, 2Q'21 and 1Q'21, respectively. (2) Includes $32.1 million write-off on a defaulted senior retail loan which we took title of the underlying property and $0.9 million write-off of the remaining balance on an impaired mezzanine retail loan during the year ended December 31, 2021. (3) Includes 212,188, zero, 373,763, 274,764 and 111,633 dilutive restricted stock units for FY'21, 4Q'21, 3Q'21, 2Q'21 and 1Q'21, respectively. (4) FY 2021 Distributable Earnings per diluted share is $1.63 ($1.63 per basic share), however 2021 quarterly DE per diluted share totaled $1.66 per share ($1.67 per basic share). The $0.03 per share difference is a result of the impact of the October common offering on the WA number of shares for the year. (5) Numbers presented may not foot due to rounding. 24 KKR REAL ESTATE FINANCE TRUST#25Reconciliation of GAAP Net Income to Distributable Earnings (in thousands - except share and per share data) Net Income (Loss) Attributable to Common Stockholders Adjustments Non-cash equity compensation expense (1) Unrealized (gains) or losses Provision for (reversal of) credit losses, net Gain on redemption of non-voting manager units Non-cash convertible notes discount amortization Reversal of previously unrealized gain now realized Distributable Earnings before realized losses on loan write-offs Realized losses on loan write-offs (²) Distributable Earnings Weighted average number of shares of common stock outstanding, diluted (3) December 31, 2021 $ 125,635 7,428 1,059 (4,059) (5,126) 361 125,298 (32,905) 92,393 56,783,388 Per Diluted Share (4) $ 2.21 0.13 0.02 (0.07) (0.09) 0.01 2.21 (0.58) 1.63 Year Ended (3) Includes 212,188, 72,223 and 105,578 dilutive restricted stock units for the years ended December 31, 2021, 2020 and 2019, respectively. (4) Numbers presented may not foot due to rounding. 25 December 31, 2020 53,553 5,676 4,036 50,344 362 113,971 (4,650) 109,321 56,057,237 Per Diluted Share (4) $ 0.96 0.10 0.06 0.90 0.01 2.03 (0.08) 1.95 December 31, 2019 90,492 4,091 1,179 360 191 96,313 96,313 57,532,490 Per Diluted Share (4) 1.57 0.07 0.02 0.01 0.00 1.67 1.67 (1) Includes $3.3 million, $0.2 million and ($1.2) million non-cash redemption value adjustment of our SNVPS, and ($2.2) million, $3.9 million and $0.0 million of unrealized mark-to-market adjustment to our RECOP I's underlying CMBS investments during the years ended December 31, 2021, 2020 and 2019, respectively. (2) Includes $32.1 million write-off on a defaulted senior retail loan which we took title of the underlying property and $0.9 million write-off of the remaining balance on an impaired mezzanine retail loan during the year ended December 31, 2021. Includes $4.7 million write-off on a $5.5 million mezzanine retail loan, which was 5-rated and put on non-accrual status, during the year ended December 31, 2020. KKR REAL ESTATE FINANCE TRUST#26Key Definitions "Distributable Earnings": Commencing for all periods ending on or after December 31, 2020, the Company has elected to present Distributable Earnings, a measure that is not prepared in accordance with GAAP, as a supplemental basis to KREF's net income as determined in accordance with GAAP as the Company believes it would be useful to investors in evaluating the Company's operating performance and its ability to pay its dividends. Distributable Earnings replaces the Company's prior presentation of Core Earnings, and Core Earnings presentations from prior reporting periods have been recast as Distributable Earnings. The Company defines Distributable Earnings as net income (loss) attributable to stockholders or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items agreed upon after discussions between the Company's Manager and board of directors and after approval by a majority of the independent directors. The exclusion of depreciation and amortization from the calculation of Distributable Earnings only applies to debt investments related to real estate to the extent the Company forecloses upon the property or properties underlying such debt investments. While Distributable Earnings excludes the impact of the unrealized current provision for credit losses, any loan losses are charged off and realized through Distributable Earnings when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (i.e. when the loan is repaid, fully or partially, or in the case of foreclosure, when the underlying asset is sold), or (ii) with respect to any amounts due under any loan, when such amount is determined to be non-collectible. Distributable Earnings should not be considered as a substitute for GAAP net income. The Company cautions readers that its methodology for calculating Distributable Earnings may differ from the methodologies employed by other REITS to calculate the same or similar supplemental performance measures, and as a result, the Company's reported Distributable Earnings may not be comparable to similar measures presented by other REITS. LEED: LEED is the most widely used green building rating system in the world. LEED certification provides independent verification of a building or neighborhood's green features, allowing for the design, construction, operations and maintenance of resource-efficient, high-performing, healthy, cost-effective buildings. 26 KKR REAL ESTATE FINANCE TRUST