KKR Real Estate Finance Trust Inc.KREF
KKR Real Estate Finance Trust Inc. Debt Disclosure
Debt Obligations
The following table summarizes KREF's secured financing arrangements in place as of December 31, 2025 and December 31, 2024:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Facility | Collateral | Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current Maturity | Final Stated Maturity(A) | Maximum Facility Size | Outstanding Principal | Carrying Value(B) | Weighted Average Funding Cost(C) | Outstanding Principal | Carrying Value | Carrying Value(B) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Master Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wells Fargo | Sep 2027 | Sep 2029 | $ | 1,000,000 | $ | 579,974 | $ | 578,569 | 5.4 | % | $ | 853,382 | $ | 824,136 | $ | 650,621 | ||||||||||||||||||||||||||||||||||||||||
| Morgan Stanley | Jul 2027 | Jul 2027 | 500,000 | 308,922 | 308,388 | 6.4 | 523,062 | 516,624 | 276,875 | |||||||||||||||||||||||||||||||||||||||||||||||
| Goldman Sachs | Dec 2026 | Dec 2027 | 400,000 | 170,200 | 169,451 | 6.1 | 303,796 | 302,811 | 107,973 | |||||||||||||||||||||||||||||||||||||||||||||||
| Morgan Stanley - GBP/EUR | Nov 2031 | Nov 2032 | 404,250 | 161,610 | 160,725 | 4.7 | 215,480 | 211,088 | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Term Loan Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
KREF Lending VII(D) | Match-term | Match-term | 1,000,000 | 513,202 | 512,897 | 5.8 | 667,680 | 637,187 | 553,834 | |||||||||||||||||||||||||||||||||||||||||||||||
| Term Lending Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending IX | Match-term | Match-term | 277,032 | 271,769 | 271,455 | 5.8 | 379,046 | 377,610 | 437,002 | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XV | Match-term | Match-term | 300,000 | 238,576 | 237,422 | 5.9 | 298,220 | 293,254 | — | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XVI | Match-term | Match-term | 100,000 | 100,000 | 99,083 | 5.1 | 125,000 | 122,759 | — | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XVII | Match-term | Match-term | 250,000 | 90,352 | 89,178 | 5.3 | 114,812 | 111,947 | — | |||||||||||||||||||||||||||||||||||||||||||||||
| BMO Facility | Match-term | Match-term | 300,000 | 71,126 | 71,063 | 5.5 | 90,795 | 89,801 | 74,727 | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XII | Match-term | Match-term | 150,000 | — | — | — | — | — | 99,233 | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending V | Match-term | Match-Term | — | — | — | — | — | — | 177,408 | |||||||||||||||||||||||||||||||||||||||||||||||
| Warehouse Facility | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HSBC Facility | Mar 2026 | Mar 2026 | 500,000 | — | — | — | — | — | (12) | |||||||||||||||||||||||||||||||||||||||||||||||
| Asset Specific Financing | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XIII | Oct 2026 | Oct 2027 | 265,625 | 195,198 | 194,678 | 7.4 | 229,644 | 226,983 | 193,285 | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XI | Mar 2026 | Mar 2026 | 90,000 | 90,000 | 90,000 | 6.4 | 125,000 | 124,419 | 99,967 | |||||||||||||||||||||||||||||||||||||||||||||||
| KREF Lending XIV | Oct 2026 | Oct 2027 | 125,000 | 80,120 | 79,780 | 6.9 | 100,150 | 98,875 | 47,761 | |||||||||||||||||||||||||||||||||||||||||||||||
| Revolving Credit Agreement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolver(E) | Mar 2030 | Mar 2030 | 700,000 | — | — | — | n.a. | n.a. | 80,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total / Weighted Average | $ | 6,361,907 | $ | 2,871,049 | $ | 2,862,689 | 5.9 | % | $ | 2,798,674 | ||||||||||||||||||||||||||||||||||||||||||||||
(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 1.4 and 2.3 years, based on the current and final stated maturities, respectively, of the average weighted outstanding principal of collateral loans as of December 31, 2025.
(B) Net of $8.4 million and $6.2 million unamortized deferred financing costs as of December 31, 2025 and December 31, 2024, respectively.
(C) Including deferred financing costs and the applicable benchmarks of Term SOFR, SONIA or EURIBOR in effect as of December 31, 2025. 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) Borrowing capacity under the Revolver increased from $610.0 million to $660.0 million in March 2025, and further increased to $700.0 million in September 2025. As of December 31, 2025, the revolver carrying value excluded $5.9 million unamortized debt issuance costs presented within "Other assets" on KREF's Consolidated Balance Sheets.
As of December 31, 2025 and December 31, 2024, 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 December 31, 2025 and December 31, 2024:
| Outstanding Principal | Net Counterparty Exposure | Percent of Stockholders' Equity | Weighted Average Life (Years)(A) | |||||||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||||||||
| Morgan Stanley | $ | 742,301 | $ | 367,560 | 31.3 | % | 2.1 | |||||||||||||||||||
| Wells Fargo | 579,974 | 249,598 | 21.3 | 1.8 | ||||||||||||||||||||||
| Goldman Sachs | 170,200 | 133,543 | 11.4 | 0.6 | ||||||||||||||||||||||
| Total / Weighted Average | $ | 1,492,475 | $ | 750,701 | 64.0 | % | 1.8 | |||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||
| Morgan Stanley | $ | 755,455 | $ | 316,833 | 23.5 | % | 1.6 | |||||||||||||||||||
| Wells Fargo | 651,922 | 282,980 | 21.0 | 2.3 | ||||||||||||||||||||||
| Total / Weighted Average | $ | 1,407,377 | $ | 599,813 | 44.5 | % | 1.9 | |||||||||||||||||||
(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 years ended December 31, 2025 and 2024, the activity related to the carrying value of KREF’s secured financing agreements were as follows:
| Secured Financing Agreements, Net | ||||||||
| Balance as of December 31, 2023 | $ | 3,782,419 | ||||||
| Principal borrowings | 601,861 | |||||||
| Principal repayments | (1,591,031) | |||||||
| Deferred debt issuance costs | (4,734) | |||||||
| Amortization of deferred debt issuance costs | 10,159 | |||||||
| Balance as of December 31, 2024 | $ | 2,798,674 | ||||||
| Principal borrowings | 1,717,334 | |||||||
| Principal repayments | (1,655,189) | |||||||
| Deferred debt issuance costs | (11,145) | |||||||
| Amortization of deferred debt issuance costs | 9,018 | |||||||
| Loss (gain) on foreign currency translation | 3,997 | |||||||
| Balance as of December 31, 2025 | $ | 2,862,689 | ||||||
Maturities — KREF’s secured financing arrangements in place as of December 31, 2025 had contractual maturities as follows:
| Year | Nonrecourse(A) | Recourse(A)(B) | Total | |||||||||||||||||
| 2026 | $ | 305,541 | $ | 32,422 | $ | 337,963 | ||||||||||||||
| 2027 | 1,227,812 | 264,999 | 1,492,811 | |||||||||||||||||
| 2028 | 185,713 | 27,271 | 212,984 | |||||||||||||||||
| 2029 | 77,416 | 25,805 | 103,221 | |||||||||||||||||
| 2030 | 534,789 | 133,753 | 668,542 | |||||||||||||||||
| 2031 | 41,646 | 13,882 | 55,528 | |||||||||||||||||
| $ | 2,372,917 | $ | 498,132 | $ | 2,871,049 | |||||||||||||||
(A) 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 beginning September 30, 2024 through June 30, 2026, then 1.4 to 1.0 thereafter); a consolidated tangible net worth covenant (75.0% of the aggregate cash proceeds of any equity issuances made and any capital contributions received by KREF and certain subsidiaries, or up to approximately $1.3 billion depending upon the facility); 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; from September 30, 2024 and through June 30, 2026 the Revolver has a minimum cash liquidity covenant of $75.0 million).
As of December 31, 2025 and 2024, KREF was in compliance with its financial debt covenants.
Secured Term Loan, NetIn 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 December 31, 2025.
The following table summarizes KREF’s secured term loan as of December 31, 2025 and 2024, respectively:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Principal | $ | 646,750 | $ | 339,500 | ||||||||||
| Deferred financing costs | (11,448) | (2,988) | ||||||||||||
| Unamortized discount | (2,786) | (2,659) | ||||||||||||
| Carrying value | $ | 632,516 | $ | 333,853 | ||||||||||
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 December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 3, 2026 | Showing above |
| 2024 | Feb 3, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 8, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 20, 2019 | |
| 2017 | Feb 28, 2018 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.