Earnings (Loss) per Share — KREF calculates its basic EPS using the two-class method, which defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities. Under the two-class method earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights. Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average common stock outstanding for the period.

KREF presents diluted EPS under the more dilutive of the treasury stock and if-converted methods or the two-class method. Under the treasury stock and if-converted methods, the denominator includes weighted average common stock outstanding plus the incremental dilutive shares issuable from restricted stock units and an assumed conversion of the Convertible Notes (for the periods in which such notes were outstanding). The numerator includes any changes in income (loss) that would result from the assumed conversion of these potential shares of common stock.

For the six months ended June 30, 2026, and 2025, 31,355 and 69,416, weighted average unvested RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive.


	Three Months Ended June 30,			Six Months Ended June 30,
		2026		2025		2026		2025
Earnings
Net Income (Loss)		$	(116,355)	$	(29,726)	$	(172,495)	$	(34,587)
Less: Preferred stock dividends		5,326		5,326		10,652		10,652
Less: Participating securities' share in earnings		113		373		528		736
Net income (loss) attributable to common stockholders, basic and diluted		$	(121,794)	$	(35,425)	$	(183,675)	$	(45,975)

Shares
Weighted average common shares outstanding		62,040,735		66,958,818		63,152,808		67,754,869
Add: Weighted average deferred stock units		422,433		232,491		409,234		219,374
Diluted weighted average common shares outstanding		62,463,168		67,191,309		63,562,042		67,974,243

Net income (loss) attributable to common stockholders, per:
Basic and diluted common share		$	(1.95)	$	(0.53)	$	(2.89)	$	(0.68)