KKR Real Estate Finance Trust Investor Presentation Deck
Reconciliation of GAAP Net Income to Core Earnings
(in thousands except share and per share data)
Net Income (Loss) Attributable to Common Stockholders
Adjustments
Non-cash equity compensation expense
Unrealized (gains) or losses
CECL provision for credit losses, net
Non-cash convertible notes discount amortization
Mezzanine loan write-off
Reversal of previously unrealized loss now realized (3)
Core Earnings (²)
Weighted Average Shares Outstanding
Basic
Diluted
(1)(2)
Core Earnings per Weighted Average Share, Basic (4)
Core Earnings per Weighted Average Share, Diluted (4)
September 30, 2020
31,351
1,390
(178)
(126)
91
32,528
55,491,405
55,632,170
0.59
0.58
Three Months Ended
June 30, 2020
28,590
1,374
973
(1,366)
90
(4,650)
25,011
55,491,937
55,504,077
0.45
0.45
• Although pursuant to the Company's Management Agreement, KREF calculates the incentive compensation and base management fees due to its Manager using Core
Earnings before incentive compensation, beginning with the first quarter of 2020, the Company revised its definition of Core Earnings for reporting purposes to be net
of incentive compensation.
September 30, 2019
23,617
(1) Includes ($0.3) million, $0.2 million and $0.1 million non-cash redemption value adjustment of our SNVPS during 3Q'20, 2Q'20 and 3Q'19, respectively.
(2) Includes $0.1 million and $0.8 million of unrealized loss on RECOP I, an equity method investment, during 3Q'20 and 2Q'20, respectively.
(3) Represents the add back of $0.4 million GAAP net loss recognized during 3Q'19, offset by $0.2 million of loss representing the difference between cost and sales proceeds.
(4) Recasted 3Q'19 Core Earnings per Weighted Average Share, Basic and Diluted, to reflect changes in the definition of Core Earnings for reporting purposes. See Appendix page 42 for definitions.
41
1,040
71
91
191
25,010
57,420,140
57,549,066
0.44
0.43
KKR
REAL ESTATE
FINANCE TRUSTView entire presentation