v3.26.1
Collateralized Loan Obligations
 6 Months Ended
Jun. 30, 2026
Transfers and Servicing [Abstract]  
Collateralized Loan Obligations Collateralized Loan Obligations
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 June 30, 2026 and December 31, 2025:

June 30, 2026December 31, 2025
FacilityCollateralFacility
Wtd. Avg. Term(A)
Maximum Facility SizeOutstanding PrincipalCarrying Value
Wtd. Avg. Funding Cost(B)
Outstanding PrincipalCarrying ValueCarrying Value
KREF 2021-FL2February 2039$327,124 $327,124 $327,124 5.6 %$531,874 $425,058 $654,964 
KREF 2022-FL3February 2039333,237 333,237 333,218 5.8 483,740 482,684 543,368 
Total$660,361 $660,361 $660,342 5.7 %$1,015,614 $907,742 $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 June 30, 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:

June 30, 2026December 31, 2025
Assets
Commercial real estate loans, held-for-investment$944,758 $1,513,255 
Less: Allowance for credit losses(107,371)(43,027)
Commercial real estate loans, held-for-investment, net837,387 1,470,228 
Commercial real estate loan, held-for-sale70,355 — 
Other assets(A)
5,963 47,804 
Total$913,705 $1,518,032 
Liabilities
Collateralized loan obligations$660,361 $1,198,378 
Deferred financing costs(19)(46)
Collateralized loan obligations, net660,342 1,198,332 
Other liabilities1,184 2,548 
Total$661,526 $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 June 30,Six Months Ended June 30,
2026202520262025
Interest income$18,941 $34,244 $44,298 $71,215 
Interest expense
11,822 22,284 27,057 47,342 
Net interest income$7,119 $11,960 $17,241 $23,873