v3.26.1
Debt Obligations
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
The following table summarizes KREF's secured financing arrangements in place as of June 30, 2026 and December 31, 2025:

June 30, 2026December 31, 2025
FacilityCollateralFacility
Current Maturity
Final Stated Maturity(A)
Maximum Facility SizeOutstanding Principal
Carrying Value(B)
Weighted Average Funding Cost(C)
Outstanding PrincipalCarrying Value
Carrying Value(B)
Master Repurchase Agreements
Wells FargoSep 2027Sep 2029$600,000 $401,931 $401,244 5.5 %$595,573 $592,493 $578,569 
Morgan StanleyJul 2027Jul 2027500,000 277,528 277,523 5.8 495,699 454,656 308,388 
Morgan Stanley -
GBP/EUR		Nov 2031Nov 2032397,875 159,582 158,605 4.8 212,776 209,032 160,725 
Goldman SachsDec 2028Dec 2030150,000 78,433 77,939 6.1 179,996 169,772 169,451 
Term Loan Facility
KREF Lending VII(D)
Match-termMatch-term1,000,000 510,689 510,448 5.7 664,818 621,302 512,897 
Term Lending Agreements
KREF Lending IXMatch-termMatch-term267,998 262,735 262,659 5.7 368,274 367,867 271,455 
KREF Lending XVMatch-termMatch-term300,000 175,360 174,619 5.3 219,200 216,130 237,422 
KREF Lending XVIMatch-termMatch-term129,000 129,000 127,949 5.5 161,250 158,656 99,083 
KREF Lending XIX - GBPMatch-termMatch-term130,643 126,196 125,836 5.2 174,064 170,727 — 
KREF Lending XVIIMatch-termMatch-term250,000 94,407 93,382 5.3 122,151 119,560 89,178 
BMO FacilityMatch-termMatch-term300,000 71,126 71,086 5.4 90,795 90,047 71,063 
KREF Lending XIIMatch-termMatch-term150,000 — — — — — — 
Warehouse Facility
HSBC FacilityMar 2028Mar 2028250,000 — — — — — — 
Asset Specific Financing
KREF Lending XIIIAug 2026Aug 2027265,625 195,198 195,107 7.0 229,644 183,066 194,678 
KREF Lending XX - EURMay 2029May 2031131,282 114,486 113,864 4.4 134,690 131,765 — 
KREF Lending XIVOct 2026Oct 2027125,000 83,955 83,835 6.8 110,544 109,629 79,780 
KREF Lending XIn.a.n.a.— — — — — — 90,000 
Revolving Credit Agreement
Revolver(E)
Mar 2030Mar 2030700,000 350,000 350,000 5.9 n.a.n.a.— 
Total / Weighted Average$5,647,423 $3,030,626 $3,024,096 5.7 %$2,862,689 

(A)    Final Stated Maturity is determined based on the maximum maturity of the underlying financing agreements or corresponding loans, assuming all extension options in KREF's discretion are exercised. The weighted average life of the match-term facilities was 1.2 and 1.9 years, based on the current and final stated maturities, respectively, of the average weighted outstanding principal of collateral loans as of June 30, 2026.
(B)    Net of $6.5 million and $8.4 million unamortized deferred financing costs as of June 30, 2026 and December 31, 2025, respectively.
(C)    Including deferred financing costs and the applicable benchmarks of Term SOFR, SONIA or EURIBOR in effect as of June 30, 2026. Average weighted by the outstanding principal of the facility.
(D)    The term loan facility provides asset-based financing on a non-mark-to-market basis with match-term up to five years, with an additional two-year extension available to KREF.
(E)    As of June 30, 2026, the revolver carrying value excluded $5.3 million unamortized debt issuance costs presented within "Other assets" on KREF's Condensed Consolidated Balance Sheets.

As of June 30, 2026 and December 31, 2025, KREF had secured financing arrangements where the amount at risk with any individual counterparty, or group of related counterparties, exceeded 10.0% of KREF’s stockholders' equity. The amount at risk under these arrangements is the net counterparty exposure, defined as the excess of the carrying amount (or market value, if higher than the carrying amount, for repurchase agreements) of the assets sold under agreement to repurchase, including accrued interest receivable plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability, adjusted for accrued interest payable.
The following table summarizes certain characteristics of KREF's repurchase agreements where the amount at risk with any individual counterparty, or group of related counterparties, exceeded 10.0% of KREF’s stockholders' equity as of June 30, 2026 and December 31, 2025:

Outstanding
Principal		Net Counterparty ExposurePercent of Stockholders' Equity
Weighted Average
Life (Years)(A)
June 30, 2026
Morgan Stanley$699,845 $336,627 36.2 %1.5
Wells Fargo401,931 197,525 21.2 1.9
Goldman Sachs192,919 110,428 11.9 3.1
Total / Weighted Average$1,294,695 $644,580 69.3 %1.9
December 31, 2025
Morgan Stanley$742,301 $367,560 31.3 %2.1
Wells Fargo579,974 249,598 21.3 1.8
Goldman Sachs170,200 133,543 11.4 0.6
Total / Weighted Average$1,492,475 $750,701 64.0 %1.8

(A)    Average weighted by the outstanding principal of borrowings under the secured financing agreement.

Debt obligations included in the tables above are obligations of KREF’s consolidated subsidiaries, which own the related collateral, and such collateral is generally not available to other creditors of KREF.

While KREF is generally not required to post margin under certain repurchase agreement terms for changes in general capital market conditions such as changes in credit spreads or interest rates, KREF may be required to post margin for changes in conditions to specific loans that serve as collateral for those repurchase agreements. Such changes may include declines in the appraised value of property that secures a loan or a negative change in the borrower's ability or willingness to repay a loan. To the extent that KREF is required to post margin, KREF's liquidity could be significantly impacted. Both KREF and its lenders work cooperatively to monitor the performance of the properties and operations related to KREF's loan investments to mitigate investment-specific credit risks. Additionally, KREF incorporates terms in the loans it originates to further mitigate risks related to loan nonperformance.

Activity — For the six months ended June 30, 2026, the activity related to the carrying value of KREF’s secured financing agreements were as follows:
Secured Financing Agreements, Net
Balance as of December 31, 2025$2,862,689 
Principal borrowings851,097 
Principal repayments(682,787)
Deferred debt issuance costs(2,507)
Amortization of deferred debt issuance costs4,305 
 Loss (gain) on foreign currency translation(8,701)
Balance as of June 30, 2026
$3,024,096 
Maturities — KREF’s secured financing arrangements in place as of June 30, 2026 had contractual maturities as follows:

Year
Nonrecourse(A)
Recourse(A)(B)
Total
2026$319,197 $46,931 $366,128 
2027851,219 160,417 1,011,636 
2028185,366 27,271 212,637 
2029114,956 38,319 153,275 
2030493,551 468,544 962,095 
2031291,192 33,663 324,855 
$2,255,481 $775,145 $3,030,626 

(A)    Based on the type of facility, represents the earlier of (i) the maximum maturity of the underlying loans pledged as collateral or (ii) the maximum maturity of the respective financing agreements.
(B)    Except for the Revolver, which is full recourse, amounts borrowed are subject to a maximum 25.0% recourse limit. The Revolver matures in March 2030.

Covenants — KREF is required to comply with customary loan covenants and event of default provisions related to its secured financing agreements and Revolver, including, but not limited to, negative covenants relating to restrictions on operations with respect to KREF’s status as a REIT, and financial covenants. Such financial covenants include a trailing four quarter interest income to interest expense ratio covenant (1.3 to 1.0); a consolidated tangible net worth covenant ($1.0 billion or less, depending upon the facility, plus 75% of the aggregate cash proceeds of any equity issuances made and any capital contributions received by KREF and certain subsidiaries, less share repurchases); a total indebtedness covenant (83.3% of KREF's Total Assets, as defined in the applicable financing agreements) and a cash liquidity covenant (the greater of (i) $10.0 million or (ii) 5.0% of KREF's recourse indebtedness; the Revolver has a minimum cash liquidity covenant of $75.0 million).

As of June 30, 2026 and December 31, 2025, KREF was in compliance with its financial debt covenants.
Secured Term Loan, Net
In March 2025, KREF refinanced the existing secured term loan of $339.5 million with a new $550.0 million secured term loan due March 2032. The transaction was accounted for as a partial debt extinguishment under GAAP. In September 2025, KREF further upsized the secured term loan to $650.0 million and reduced the spread to S+2.5%. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments. The secured term loan contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates, and is secured by KREF level guarantees and does not include asset-based collateral.

Upon the completion of the secured term loan transactions, KREF recorded a $1.1 million issuance discount and $11.4 million in issuance costs. The loan issuance discount and issuance costs were capitalized and amortized into interest expense over the term of the secured term loan. Inclusive of the discount and issuance cost amortization, KREF’s total cost of the secured term loan was S+2.9%, subject to the applicable SOFR floor, as of June 30, 2026.

The following table summarizes KREF’s secured term loan as of June 30, 2026 and December 31, 2025, respectively:

June 30, 2026December 31, 2025
Principal$643,500 $646,750 
Deferred financing costs(10,514)(11,448)
Unamortized discount(2,562)(2,786)
Carrying value$630,424 $632,516 

Covenants — KREF is required to comply with customary loan covenants and event of default provisions related to its secured term loan that include, but are not limited to, negative covenants relating to restrictions on operations with respect to KREF’s status as a REIT, and financial covenants. Such financial covenants include a minimum consolidated tangible net worth of $650.0 million and a maximum Total Debt to Total Assets Ratio, as defined in the secured term loan agreements, of 83.3%. KREF was in compliance with such covenants as of June 30, 2026 and December 31, 2025.