KKR Real Estate Finance Trust Results Presentation Deck slide image

KKR Real Estate Finance Trust Results Presentation Deck

Reconciliation 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
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