Collateralized Loan Obligations

3 Months Ended

Mar. 31, 2026

In August 2021, KREF financed a pool of loan participations from its existing loan portfolio through a managed CLO ("KREF 2021-FL2"). In February 2022, KREF financed a pool of loan participations from its existing multifamily loan portfolio through a managed CLO ("KREF 2022-FL3"). The CLOs provide KREF with match-term financing on a non-mark-to-market and non-recourse basis.

The following tables outline CLO collateral assets and respective borrowing as of March 31, 2026 and December 31, 2025:


	March 31, 2026													December 31, 2025
	Facility									Collateral				Facility
	Wtd. Avg. Term(A)	Maximum Facility Size		Outstanding Principal		Carrying Value		Wtd. Avg. Funding Cost(B)		Outstanding Principal		Carrying Value		Carrying Value
KREF 2021-FL2	February 2039	$	566,582	$	566,582	$	566,558	5.3	%	$	771,332	$	691,534	$	654,964
KREF 2022-FL3	February 2039	499,552		499,552		499,490		5.6		652,052		650,414		543,368
Total		$	1,066,134	$	1,066,134	$	1,066,048	5.4	%	$	1,423,384	$	1,341,948	$	1,198,332

(A) The term of the CLO notes represents the rated final distribution date. Repayments of CLO notes are dependent on timing of underlying collateral loan asset repayments post reinvestment period.

(B) Including deferred financing costs and applicable index in effect as of March 31, 2026. Average weighted by the outstanding principal of the facility.

The following table presents the CLO assets and liabilities included in KREF’s Condensed Consolidated Balance Sheets:


	March 31, 2026		December 31, 2025
Assets

Commercial real estate loans, held-for-investment	$	1,202,641	$	1,513,255
Less: Allowance for credit losses	(80,683)		(43,027)
Commercial real estate loans, held-for-investment, net	1,121,958		1,470,228
Commercial real estate loan, held-for-sale	219,990		—


Other assets(A)	7,374		47,804
Total	$	1,349,322	$	1,518,032
Liabilities
Collateralized loan obligations	$	1,066,134	$	1,198,378
Deferred financing costs	(86)		(46)
Collateralized loan obligations, net	1,066,048		1,198,332


Other liabilities	2,276		2,548
Total	$	1,068,324	$	1,200,880

(A) Includes $42.0 million of loan repayment proceeds held at servicer as of December 31, 2025.

The following table presents the components of net interest income of CLOs included in KREF’s Condensed Consolidated Statements of Income:


	Three Months Ended March 31,
		2026		2025
Interest income		$	25,357	$	36,971
Interest expense		15,235		25,058
Net interest income		$	10,122	$	11,913

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

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+ Details

KKR Real Estate Finance Trust Inc. 10-Q