v3.26.3
Debt Obligations
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt Obligations Debt Obligations
The following table summarizes KREF's secured financing arrangements in place as of September 30, 2026 and December 31, 2025:

September 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 $375,453 $375,119 5.6 %$560,656 $558,730 $578,569 
Morgan StanleyJul 2027Jul 2027300,000 252,171 251,526 6.2 486,473 445,619 308,388 
Morgan Stanley -
GBP/EUR		Nov 2031Nov 2032397,995 159,653 158,737 4.9 212,870 209,396 160,725 
Goldman SachsDec 2028Dec 2030150,000 — (365)— 30,600 30,600 169,451 
Term Loan Facility
KREF Lending VII(D)
Match-termMatch-term1,000,000 615,984 615,431 5.9 774,692 770,583 512,897 
Term Lending Agreements
KREF Lending XVMatch-termMatch-term300,000 175,360 174,761 5.6 219,200 216,452 237,422 
KREF Lending XVIMatch-termMatch-term187,125 172,463 171,070 5.8 219,200 215,550 99,083 
KREF Lending XVIIMatch-termMatch-term250,000 161,542 160,239 5.6 206,342 202,305 89,178 
KREF Lending XIX - GBPMatch-termMatch-term130,682 126,234 125,433 5.4 174,116 171,052 — 
BMO FacilityMatch-termMatch-term300,000 71,126 71,096 5.7 90,795 90,165 71,063 
KREF Lending IXMatch-termMatch-term— — — — — — 271,455 
Warehouse Facility
HSBC FacilityMar 2028Mar 2028250,000 — — — — — — 
Asset Specific Financing
KREF Lending XX - EURMay 2029May 2031128,322 111,661 110,411 5.0 131,421 128,813 — 
KREF Lending XIVOct 2026Oct 2027125,000 83,955 83,947 6.7 113,552 112,845 79,780 
KREF Lending XIIIn.a.n.a.— — — — — — 194,678 
KREF Lending XIn.a.n.a.— — — — — — 90,000 
Revolving Credit Agreement
Revolver(E)
Mar 2030Mar 2030700,000 100,000 100,000 6.1  n.a.  n.a. — 
Total / Weighted Average$4,819,124 $2,405,602 $2,397,405 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 1.3 and 1.8 years, based on the current and final stated maturities, respectively, of the average weighted outstanding principal of collateral loans as of September 30, 2026.
(B)    Net of $8.2 million and $8.4 million unamortized deferred financing costs as of September 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 September 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 September 30, 2026, the revolver carrying value excluded $4.9 million unamortized debt issuance costs presented within "Other assets" on KREF's Condensed Consolidated Balance Sheets.

As of September 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 September 30, 2026 and December 31, 2025:
Outstanding
Principal		Net Counterparty ExposurePercent of Stockholders' Equity
Weighted Average
Life (Years)(A)
September 30, 2026
Morgan Stanley$411,824 $248,280 27.3 %2.0
Wells Fargo375,453 191,747 21.1 1.6
Total / Weighted Average$787,277 $440,027 48.4 %1.8
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 nine months ended September 30, 2026, the activity related to the carrying value of KREF’s secured financing agreements was as follows:
Secured Financing Agreements, Net
Balance as of December 31, 2025$2,862,689 
Principal borrowings1,500,844 
Principal repayments and other resolutions(A)
(1,956,435)
Deferred debt issuance costs(5,939)
Amortization of deferred debt issuance costs6,066 
 Loss (gain) on foreign currency translation(9,820)
Balance as of September 30, 2026
$2,397,405 

(A)    Includes a $182.5 million loan assignment in full satisfaction of secured financing.

Maturities — KREF’s secured financing arrangements in place as of September 30, 2026 had contractual maturities as follows:

Year
Nonrecourse(A)
Recourse(A)(B)
Total
2026$96,841 $— $96,841 
2027713,079 117,151 830,230 
2028185,366 27,271 212,637 
202990,798 30,266 121,064 
2030496,224 219,436 715,660 
2031368,728 60,442 429,170 
$1,951,036 $454,566 $2,405,602 
(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 September 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 September 30, 2026.

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

September 30, 2026December 31, 2025
Principal$641,875 $646,750 
Deferred financing costs(10,258)(11,448)
Unamortized discount(2,449)(2,786)
Carrying value$629,168 $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 September 30, 2026 and December 31, 2025.