Commercial Real Estate Loans (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] |
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| Schedule of Activity of Loans Held-for-investment and Held-for-investment |
The following table summarizes investments in commercial real estate loans as of September 30, 2026 and December 31, 2025:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Weighted Average(C) | | Loan Type | | Outstanding Principal | | Amortized Cost(A) | | Carrying Value(B) | | Loan Count | | Floating Rate Loan % | | Coupon(D) | | Life (Years)(E) | | September 30, 2026 | | | | | | | | | | | | | | | Loans held-for-investment(F) | | | | | | | | | | | | | | | | Senior loans | | $ | 3,151,502 | | | $ | 3,137,554 | | | $ | 2,950,118 | | | 37 | | | 97.6 | % | | 6.7 | % | | 2.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | | | Loans held-for-investment(F) | | | | | | | | | | | | | | | | Senior loans | | $ | 5,361,863 | | | $ | 5,347,756 | | | $ | 5,145,832 | | | 53 | | | 98.6 | % | | 7.0 | % | | 1.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(A) Amortized cost represents the outstanding loan principal, net of applicable unamortized discounts, loan origination fees, cost recovery interest and write-offs on uncollectible loan balances. (B) Carrying value represents the loan amortized cost, net of applicable allowance for credit losses for loans held-for-investment. (C) Average weighted by outstanding loan principal. (D) Weighted average coupon assumes the greater of the applicable benchmark rates, or the applicable contractual rate floor. Excludes loans on nonaccrual status. (E) The weighted average life assumes all extension options are exercised by the borrowers. (F) Excludes fully written off loans. The following table presents the loan portfolio held-for-investment activity for the nine months ended September 30, 2026: | | | | | | | | | | | | | | | Carrying Value | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2025 | | $ | 5,145,832 | | | | | | Originations and future fundings, net(A) | | 771,354 | | | | | | | | | | | | | | | | | | | | Proceeds from loan repayments and other resolutions(B) | | (2,354,130) | | | | | | | Accretion of loan discount and other amortization, net | | 9,998 | | | | | | | | | | | | | | (Provision for) reversal of credit losses | | (151,107) | | | | | | | Transfer to loan held-for-sale | | (333,775) | | | | | | | | | | | | | | | | | | | | | | | | | | | | Transfer to real estate owned | | (125,609) | | | | | | | Gain (loss) on foreign currency translation | | (12,445) | | | | | | Balance at September 30, 2026 | | $ | 2,950,118 | | | | | |
(A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes a $182.5 million loan assignment in full satisfaction of secured financing. The following tables summarize the carrying value of the loan portfolio held-for-investment based on KREF's internal risk ratings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | Risk Rating | | Number of Loans(A) | | Carrying Value | | Outstanding Principal | | Outstanding Principal % | | Number of Loans(A) | | Carrying Value | | Outstanding Principal | | Outstanding Principal % | | | 1 | | — | | | $ | — | | | $ | — | | | — | % | | — | | | $ | — | | | $ | — | | | — | % | | | 2 | | — | | | — | | | — | | | — | | | 2 | | | 283,816 | | | 283,906 | | | 5 | | | | 3 | | 34 | | | 2,813,066 | | | 2,822,759 | | | 90 | | | 46 | | | 4,405,274 | | | 4,415,095 | | | 82 | | | | 4 | | — | | | — | | | — | | | — | | | 1 | | | 90,671 | | | 90,671 | | | 2 | | | | 5 | | 3 | | | 324,488 | | | 328,743 | | | 10 | | | 4 | | | 567,995 | | | 572,191 | | | 11 | | | | Total loan receivable | | 37 | | | $ | 3,137,554 | | | $ | 3,151,502 | | | 100 | % | | 53 | | | $ | 5,347,756 | | | $ | 5,361,863 | | | 100 | % | | | Allowance for credit losses | | (187,436) | | | | | | | | | (201,924) | | | | | | | | Loan receivable, net | | | | $ | 2,950,118 | | | | | | | | | $ | 5,145,832 | | | | | | |
* Numbers presented may not foot due to rounding. (A) Excludes fully written off loans.
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| Schedule of Amortized Cost of Loan Portfolio |
The following tables present the amortized cost of the loan portfolio held-for-investment by KREF's internal risk rating and year of origination. The risk ratings are updated as of September 30, 2026 and December 31, 2025 in the corresponding table. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | Risk Rating | | Number of Loans(B) | | Outstanding Principal(B) | | Amortized Cost by Year of Origination(A) | | | | 2026 | | 2025 | | 2024 | | 2023 | | 2022 | | Prior | | Total | | Commercial Real Estate Loans | | | | | | | | | | | | | | | | 1 | | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | 2 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3 | | 34 | | | 2,822,759 | | | 539,849 | | | 894,819 | | | 102,795 | | | — | | | 505,841 | | | 769,762 | | | 2,813,066 | | | 4 | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5 | | 3 | | | 328,743 | | | — | | | — | | | — | | | 90,671 | | | 43,705 | | | 190,112 | | | 324,488 | | | | 37 | | | $ | 3,151,502 | | | $ | 539,849 | | | $ | 894,819 | | | $ | 102,795 | | | $ | 90,671 | | | $ | 549,546 | | | $ | 959,874 | | | $ | 3,137,554 | | | Year-to-date gross write-offs charged | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 50,498 | | | $ | 115,043 | | | $ | 165,541 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | Risk Rating | | Number of Loans(B) | | Outstanding Principal(B) | | Amortized Cost by Year of Origination(A) | | | | 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior | | Total | | Commercial Real Estate Loans | | | | | | | | | | | | | | | | 1 | | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | 2 | | 2 | | | 283,906 | | | — | | | — | | | — | | | — | | | 283,816 | | | — | | | 283,816 | | | 3 | | 46 | | | 4,415,095 | | | 996,802 | | | 86,039 | | | 115,106 | | | 1,397,773 | | | 1,671,380 | | | 138,174 | | | 4,405,274 | | | 4 | | 1 | | | 90,671 | | | — | | | — | | | 90,671 | | | — | | | — | | | — | | | 90,671 | | | 5 | | 4 | | | 572,191 | | | — | | | — | | | — | | | — | | | 377,883 | | | 190,112 | | | 567,995 | | | | 53 | | | $ | 5,361,863 | | | $ | 996,802 | | | $ | 86,039 | | | $ | 205,777 | | | $ | 1,397,773 | | | $ | 2,333,079 | | | $ | 328,286 | | | $ | 5,347,756 | | | Year-to-date gross write-offs charged | | $ | — | | | $ | — | | | $ | — | | | $ | 34,828 | | | $ | — | | | $ | — | | | $ | 34,828 | | | | | | | | | | | | | | | | |
(A) Represents the date a loan was originated or acquired. Origination dates may be subsequently updated to reflect material loan modifications. (B) Excludes fully written off loans.
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| Schedule of Allowance for Credit Losses |
The following tables present the changes to the allowance for credit losses for the nine months ended September 30, 2026 and 2025, respectively: | | | | | | | | | | | | | | | | | | | | | | | Commercial
Real Estate Loans | | Unfunded Loan Commitments | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2025 | | $ | 201,924 | | | $ | 2,201 | | | $ | 204,125 | | | Provision for (reversal of) credit losses, net | | 151,107 | | | (1,097) | | | 150,010 | | | Write-offs charged | | (165,541) | | | — | | | (165,541) | | | | | | | | | | Gain (loss) on foreign currency translation | | (54) | | | 1 | | | (53) | | Balance at September 30, 2026 | | $ | 187,436 | | | $ | 1,105 | | | $ | 188,541 | |
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Real Estate Loans | | Unfunded Loan Commitments | | Total | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance at December 31, 2024 | | $ | 117,103 | | | $ | 2,478 | | | $ | 119,581 | | | Provision for (reversal of) credit losses, net | | 75,069 | | | 617 | | | 75,686 | | | Write-offs charged | | (34,828) | | | — | | | (34,828) | | | | | | | | | | | | | | | | Balance at September 30, 2025 | | $ | 157,344 | | | $ | 3,095 | | | $ | 160,439 | |
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| Schedule of Concentration of Risk, by Risk Factor |
The following tables present the geographies and property types of collateral underlying KREF's commercial real estate loans as a percentage of the loans' principal amounts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 |
| December 31, 2025 | | | | September 30, 2026 |
| December 31, 2025 | Geography(A) | | | | Collateral Property Type(A) | | | | California | | 10.8 | % | | 16.6 | % | | Multifamily | | 38.7 | % | | 40.3 | % | | North Carolina | | 10.8 | | | 6.4 | | | Office | | 24.1 | | | 22.8 | | | United Kingdom | | 10.4 | | | 2.9 | | | Industrial | | 18.4 | | | 17.9 | | | Florida | | 10.3 | | | 10.9 | | | Life Science | | 10.8 | | | 13.7 | | | Texas | | 9.3 | | | 12.0 | | | Hospitality | | 4.7 | | | 2.8 | | | Washington D.C. | | 8.9 | | | 5.2 | | | Senior Housing | | 2.5 | | | — | | | Minnesota | | 6.2 | | | 3.6 | | | Mixed Use | | 0.8 | | | 0.4 | | | Massachusetts | | 5.0 | | | 11.9 | | | Student Housing | | — | | | 2.1 | | | Nevada | | 4.8 | | | 2.8 | | | Total | | 100.0 | % | | 100.0 | % | | Spain | | 4.8 | | | — | | | | | | | | | Georgia | | 3.6 | | | 2.1 | | | | | | | | | New Jersey | | 3.0 | | | 1.9 | | | | | | | | | Illinois | | 2.9 | | | 1.7 | | | | | | | | | Tennessee | | 2.4 | | | 1.4 | | | | | | | | | Colorado | | 2.2 | | | 1.3 | | | | | | | | | New York | | 1.0 | | | 4.5 | | | | | | | | | Pennsylvania | | 0.8 | | | 4.7 | | | | | | | | | Other U.S. | | 1.6 | | | 0.8 | | | | | | | | | Other Europe | | 1.2 | | | 1.1 | | | | | | | | | Washington | | — | | | 4.2 | | | | | | | | | Virginia | | — | | | 2.2 | | | | | | | | | Arizona | | — | | | 1.8 | | | | | | | | | Total | | 100.0 | % | | 100.0 | % | | | | | | |
(A) Excludes fully written off loans 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: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2026 |
| December 31, 2025 | | | | September 30, 2026 | | December 31, 2025 | | Geography | | | | Collateral Property Type | | | | New York | | 39.7 | % | | 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 | | 4.1 | | | 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 | % | | | | | | |
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