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 nine months ended September 30, 2026, and 2025, 45,653 and 154,449, weighted average unvested RSUs, respectively, were excluded from the calculation of diluted EPS because the effect was anti-dilutive.


	Three months ended September 30,			Nine Months Ended September 30,
		2026		2025		2026		2025
Earnings
Net Income (Loss)		$	(919)	$	13,778	$	(173,414)	$	(20,809)
Less: Preferred stock dividends		5,326		5,326		15,978		15,978
Less: Participating securities' share in earnings		172		373		700		1,109
Net income (loss) attributable to common stockholders, basic and diluted		$	(6,417)	$	8,079	$	(190,092)	$	(37,896)

Shares
Weighted average common shares outstanding		57,215,600		65,636,805		61,151,991		67,041,089
Add: Weighted average deferred stock units		433,050		239,922		417,260		226,299
Diluted weighted average common shares outstanding		57,648,650		65,876,727		61,569,251		67,267,388

Net income (loss) attributable to common stockholders, per:
Basic and diluted common share		$	(0.11)	$	0.12	$	(3.09)	$	(0.56)