KREF consolidated the CMBS trusts after determining that such trusts were VIEs and that KREF was the primary beneficiary of such VIEs. KREF irrevocably elected the fair value option for the consolidated CMBS trusts, and therefore, (i) reported the assets and liabilities of the trusts at fair value on the Condensed Consolidated Balance Sheets, (ii) recognized changes in the trust's net assets, including fair value adjustments, in the Condensed Consolidated Statements of Income, and (iii) presented cash interest received by the trusts, net of cash interest paid on CMBS not held by KREF, as operating cash flows in the Condensed Consolidated Statements of Cash Flow.


	June 30, 2026		December 31, 2025
Assets
Commercial real estate loans, at fair value	$	1,235,061	$	502,751
Accrued interest receivable	6,238		2,479
Consolidated variable interest entities assets, CMBS trusts, at fair value	$	1,241,299	$	505,230
Liabilities
Commercial mortgage-backed securities, at fair value	$	1,210,942	$	493,680
Accrued interest payable	5,975		2,380
Consolidated variable interest entities liabilities, CMBS trusts, at fair value	$	1,216,917	$	496,060


	Three Months Ended June 30,			Six Months Ended June 30,
		2026			2025		2026		2025
Net interest income		$	789		$	41	$	1,177	$	41
Unrealized gain (loss)		47			—		98		—
Change in net assets of consolidated variable interest entities, CMBS trusts		$	836		$	41	$	1,275	$	41

Concentration of Credit Risk — The following tables present the geographies and property types of collateral underlying the consolidated CMBS trusts, as a percentage of the collateral outstanding principal amounts:


	June 30, 2026		December 31, 2025			June 30, 2026		December 31, 2025
Geography					Collateral Property Type
New York	39.8	%	46.2	%	Retail	27.9	%	24.1	%
California	14.8		17.4		Office	23.4		26.6
Arizona	8.7		5.1		Self-Storage	15.2		1.8
Maryland	7.2		9.9		Multifamily	12.4		11.7
Oregon	4.0		10.0		Mixed Use	10.3		13.0
Florida	3.2		1.4		Co-op	9.2		22.8
North Carolina	2.8		2.2		Hospitality	1.1		—
Texas	2.8		—		Manufactured Housing	0.5		—
Pennsylvania	2.3		—		Total	100.0	%	100.0	%
Ohio	1.7		1.0
Wisconsin	1.6		—
Tennessee	1.2		1.2
Massachusetts	1.2		—
Virginia	1.1		—
Missouri	1.1		—
Other	6.5		5.6
Total	100.0	%	100.0	%

KREF consolidates CMBS trusts when it determines that such trusts are VIEs and that KREF is the primary beneficiary of such VIEs (Note 8). Management considers KREF to be the primary beneficiary of such CMBS trusts as KREF has the ability to control the most significant activities of the trusts, the obligation to absorb losses, and the right to receive benefits of the trusts through the CMBS B-Pieces.

KREF consolidates CLOs when it determines that CLO issuers, wholly-owned subsidiaries of KREF, are VIEs and that KREF is the primary beneficiary of such VIEs (Note 6). Management considers KREF to be the primary beneficiary of the CLO issuers as KREF has the ability to control the most significant activities of the CLO issuers, the obligation to absorb losses, and the right to receive benefits of the CLOs through the subordinate interests the CLO issuers own.

Portland, OR Retail / Redevelopment — In December 2021, KREF took title to a Portland retail property and contributed a portion of the REO asset to a REO JV with a JV Partner, where KREF had a 90% interest and the JV Partner had a 10% interest. Management determined the REO JV to be a VIE as the REO JV has insufficient equity-at-risk and concluded that KREF is the primary beneficiary of the REO JV as KREF holds decision-making power over the activities that most significantly impact the economic performance and has the obligation to absorb losses, or the right to receive benefits, that could be potentially significant to the REO JV. As of June 30, 2026, KREF had a priority of distributions up to $83.6 million before the JV Partner can participate in the economics of the REO JV.

Mountain View, CA Office — In June 2024, KREF and a KKR affiliate took title to a Mountain View office property. The property was held in a joint venture where KREF and the KKR affiliate held a 68.9% and 31.1% interest, respectively, and shared decision-making. Management determined the joint venture to be a VIE as the joint venture was established with non-substantive voting rights and concluded that KREF is the primary beneficiary of the joint venture as KREF holds decision-making power over the activities that most significantly impact the economic performance and has the obligation to absorb losses, or the right to receive benefits, that could be potentially significant to the joint venture.


Equity Method Investments	June 30, 2026		December 31, 2025
Equity method investment, real estate assets	$	224,561	$	96,798
Equity method investment, CMBS B-Pieces	33,849		35,424
Equity method investment, unconsolidated entity	14,678		15,110
Total	$	273,088	$	147,332

Seattle, WA Life Science — In June 2024, KREF and a KKR affiliate took title to a Seattle life science property through a DIL under a Tenant-in-Common ("TIC") agreement. Under the TIC agreement, KREF and the KKR affiliate held an economic interest of 74.6% and 25.4%, respectively, and shared decision-making. Under ASC 970-810, KREF accounted for the TIC agreement as an undivided interest in the property and recorded an equity method investment based on KREF’s share of the estimated fair value of the property’s net assets.

Boston, MA Life Science — In June 2026, KREF and an unaffiliated third party took title to a Boston life science property through a DIL and contributed the property to a newly formed joint venture. KREF and the third party each held a 50%

economic interest and shared decision-making. KREF accounted for its investment in the joint venture under the equity method of accounting and recorded the investment based on KREF's share of the estimated fair value of the joint venture’s net assets.

As of June 30, 2026, KREF held a 3.5% interest in RECOP I, an unconsolidated VIE of which KREF is not the primary beneficiary. The aggregator vehicle in which KREF invests is controlled and advised by affiliates of the Manager. RECOP I primarily acquired junior tranches of CMBS newly issued by third parties. KREF will not pay any fees to RECOP I, but KREF bears its pro rata share of RECOP I's expenses. KREF reported its share of the net asset value of RECOP I in its Condensed Consolidated Balance Sheets, presented as “Equity method investments” and its share of net income, presented as “Income (loss) from equity method investments” in the Condensed Consolidated Statements of Income.

In October 2025, KREF acquired a 50% economic interest in an affiliated company, which invested in a senior mortgage loan that is collateralized by industrial properties in France. The affiliated company's investment in the underlying senior mortgage loan is 80% financed with a funding cost of EURIBOR + 1.6%. KREF does not have unilateral authority to direct the activities that most significantly impact the affiliated company's economic performance. Accordingly, KREF reported the net investment value of the economic interest in its Condensed Consolidated Balance Sheets, presented as “Equity method investments”, and its share of net income, presented as “Income (loss) from equity method investments”, on the Condensed Consolidated Statements of Income.