KKR Real Estate Finance Trust : Supplemental Information for the Quarter Ended June 30th, 2020

KKR Real Estate Finance Trust Inc.

2nd Quarter 2020 Supplemental Information

August 3, 2020

Legal Disclosures

This presentation has been prepared for KKR Real Estate Finance Trust Inc. (NYSE: KREF) for the benefit of its stockholders. This presentation is solely for informational purposes in connection with evaluating the business, operations and financial results of KKR Real Estate Finance Trust Inc. and its subsidiaries (collectively, "KREF" or the "Company"). This presentation is not and shall not be construed as an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities, any investment advice or any other service by KREF. Nothing in this presentation constitutes the provision of any tax, accounting, financial, investment, regulatory, legal or other advice by KREF or its advisors. This presentation may not be referenced, quoted or linked by website by any third party, in whole or in part, except as agreed to in writing by KREF.

This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current views with respect to, among other things, its future operations and financial performance. You can identify these forward looking statements by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. By their nature, forward-looking statements speak only as of the date they are made, are not statements of historical fact or guarantees of future performance and are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify, in particular due to the uncertainties created by the COVID-19 pandemic, including the projected impact of COVID-19 on our business, financial performance and operating results. The forward-looking statements are based on the Company's beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to the Company or are within its control. Such forward-looking statements are subject to various risks and uncertainties, including, among other things: the severity and duration of the COVID-19 pandemic; potential risks and uncertainties relating to the ultimate geographic spread of COVID-19; actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact; the potential negative impacts of COVID-19 on the global economy and the impacts of COVID-19 on the Company's financial condition and business operations; deterioration in the performance of the properties securing our investments that may cause deterioration in the performance of our investments and, potentially, principal losses to us; difficulty or delays in redeploying the proceeds from repayments of our existing investments; the general political, economic and competitive conditions in the United States and in any foreign jurisdictions in which the Company invests; the level and volatility of prevailing interest rates and credit spreads; adverse changes in the real estate and real estate capital markets; general volatility of the securities markets in which the Company participates; changes in the Company's business, investment strategies or target assets; difficulty in obtaining financing or raising capital; adverse legislative or regulatory developments; reductions in the yield on the Company's investments and increases in the cost of the Company's financing; acts of God such as hurricanes, earthquakes and other natural disasters, pandemics such as COVID-19, acts of war and/or terrorism and other events that may cause unanticipated and uninsured performance declines and/ or losses to the Company or the owners and operators of the real estate securing the Company's investments; deterioration in the performance of properties securing the Company's investments that may cause deterioration in the performance of the Company's investments and, potentially, principal losses to the Company; defaults by borrowers in paying debt service on outstanding indebtedness; the adequacy of collateral securing the Company's investments and declines in the fair value of the Company's investments; adverse developments in the availability of desirable investment opportunities whether they are due to competition, regulation or otherwise; difficulty in successfully managing the Company's growth, including integrating new assets into the Company's existing systems; the cost of operating the Company's platform, including, but not limited to, the cost of operating a real estate investment platform and the cost of operating as a publicly traded company; the availability of qualified personnel and the Company's relationship with our Manager; KKR controls the Company and its interests may conflict with those of the Company's stockholders in the future; the Company's qualification as a REIT for U.S. federal income tax purposes and the Company's exclusion from registration under the Investment Company Act of 1940; authoritative GAAP or policy changes from such standard-setting bodies such as the Financial Accounting Standards Board, the Securities and Exchange Commission (the "SEC"), the Internal Revenue Service, the New York Stock Exchange and other authorities that the Company is subject to, as well as their counterparts in any foreign jurisdictions where the Company might do business; and other risks and uncertainties, including those described under Part I-Item 1A. "Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and under Part II - Item 1A. "Risk Factors" of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, as such factors may be updated from time to time in the Company's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in this presentation. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and information included in this presentation and in the Company's filings with the SEC.

All forward looking statements in this presentation speak only as of August 3, 2020. KREF undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

All financial information in this presentation is as of June 30, 2020 unless otherwise indicated.

This presentation also includes non-GAAP financial measures, including Core Earnings and Core Earnings per Diluted Share. Such non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with

U.S. GAAP.

2

KKR Real Estate Finance Trust Inc. Overview

Best In Class

Investment Portfolio

$5.3 Billion

Investment Portfolio

99.5%	81%
Senior Loans	Multifamily & Office

$134 Million	8.9%
Average Loan Size	Unfunded

Purpose built portfolio focused on senior loans on institutional real estate and sponsorship secured predominantly by lighter transitional, multifamily and office properties

Conservative & Diverse

Balance Sheet

$6.1 Billion

Financing Capacity

73%

Fully Non-Mark-to-Market(1)

$431 Million

Current Liquidity(2)

Conservative liability management focused on diversified non-mark-to-market financing

capacity

Fully Integrated with KKR

36%

KKR Ownership in KREF

$207 Billion	$19 Billion
Global AUM	Internal
	Balance Sheet

$11 Billion	85
Real Estate AUM(3)	Real Estate
	Professionals

One firm culture that rewards investment discipline, creativity, determination and patience and emphasizes the sharing of information, resources, expertise and best practices

1. Based on outstanding face amount of asset level secured financing and excludes convertible notes and the corporate revolving credit facility. Note: 100% of financings are non-mark-to-capital markets marks.
2. Comprised of $127.3 million in cash, $285.0 million undrawn corporate revolver capacity and $18.8 million approved and undrawn secured financing facilities as of June 30, 2020.
3. Figures represent AUM across all KKR real estate transactions since 2011; strategies include Real Estate Partners Americas, Real Estate Partners Europe, Asia Real Estate Partners, Property Partners Americas, Real Estate Credit, Real Estate NBFC, Private Equity funds, Special Situations, trophy single tenant investments in KKR Credit accounts, Balance Sheet investments and a pro rata portion of Drawbridge Realty's AUM ($495 million). KKR does not act as an investment adviser to Drawbridge or any of its portfolio investments.

3

2Q'20 Key Highlights

• Net income(1) of $0.52 per diluted share, Core Earnings(2) of $0.45 per diluted share and book value(3) of $18.57 per

	share
	• Portfolio benefits from low LIBOR given in-place floors; approximately 98% of the portfolio is subject to LIBOR floor
Financials	of at least 0.95%

• • Book value(3) per share inclusive of ($1.16) per share CECL credit loss allowance
• Repurchased approximately 389 thousand shares at an average price of $14.92 for a total of $5.8 million
• • Year-to-date,repurchased approximately 2 million shares at an average price of $12.27 for a total of $25.0 million
• $431.1 million of available liquidity(4)

Liquidity &	• 73% of outstanding secured financing is fully non-mark-to-market and the remaining balance is only mark-to-credit
Capitalization	• Net borrowed $67.7 million on secured financing facilities and repaid $285.0 million on corporate revolver
	• $5.3 billion predominantly senior loan portfolio
	• Weighted average LTV of 66%(5) and weighted average risk rating of 3.1
Portfolio	• Multifamily and office assets represent 81% of loan portfolio; only 8% of portfolio is comprised of hospitality and
	retail asset classes

• Collected 99.8% and 99.8% of interest payments due on loan portfolio in 2Q'20 and July 2020, respectively

Note: Net income attributable to common stockholders per share and Core Earnings per share are based on diluted weighted average shares outstanding for the quarter ended June 30, 2020; book value per share is based on shares outstanding as of June 30, 2020.

1. Represents Net Income attributable to common stockholders.
2. See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP.
3. Book value per share includes the year-to-date ("YTD") impact of a ($0.6) million, or ($0.01) per common share, non-cash redemption value adjustment to our redeemable Special Non-Voting Preferred Stock ('SNVPS'), resulting in a cumulative (since issuance of the SNVPS) decrease of $2.3 million to our book value as of June 30, 2020.
4. Comprised of $127.3 million in cash, $285.0 million undrawn corporate revolver capacity and $18.8 million approved and undrawn secured financing facilities as of June 30, 2020.
5. LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value.

4

2Q'20 Financial Summary

Income Statement		Balance Sheet

($ in Millions)	2Q20
Net Interest Income	$36.7
Other Income	0.4
Operating Expenses and Other	(9.9)
CECL Provision for Credit Loss, Net	1.4
Net Income Attributable to Common Stockholders	$28.6
Weighted Average Shares Outstanding, Diluted	55,504,077
Net Income per Share, Diluted	$0.52
Core Earnings(1)	$25.9
Core Earnings per Share, Diluted(1)	$0.45
Dividend per Share	$0.43

($ in Millions)		2Q20
Total Portfolio	$5,256.8
Term Credit Facilities	1,087.8
Term Lending Agreement	900.0
Asset Specific Financing	82.3
Warehouse Facility	57.6
Revolving Credit Agreements	50.0
Convertible Notes	143.8
Total Debt	$2,321.5
Term Loan Facility	984.9
Collateralized Loan Obligation	810.0
Senior Loan Interests(2)	143.6
Total Leverage	$4,260.0
Cash	127.3
Total Permanent Equity	1,030.2
Debt-to-Equity Ratio(3)		2.1x
Total Leverage Ratio(4)		4.0x
Shares Outstanding	55,491,405
Book Value per Share(5)
	$18.57

1. See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP.
2. Includes loans financed through the non-recourse sale of a senior interest that is not included in our GAAP consolidated financial statements.
3. Represents (i) total debt less cash to (ii) total permanent equity. The debt-to-equity ratio, adjusted for the impact of CECL allowance for credit losses, is 2.0x at 2Q'20.
4. Represents (i) total leverage less cash to (ii) total permanent equity. The total leverage ratio, adjusted for the impact of CECL allowance for credit losses, is 3.8x at 2Q'20.
5. Book value per share includes (i) CECL credit loss allowance of ($64.3) million or ($1.16) per common share, (ii) write-off of ($4.7) million or ($0.08) per common share on the Company's $5.5 million mezzanine loan, and (iii) the YTD impact of ($0.6) million, or ($0.01) per common share, non-cash redemption value adjustment to our redeemable SNVPS, resulting in a cumulative (since issuance of the SNVPS) decrease of $2.3 million to our book value as of June 30, 2020.

5

Recent Operating Performance

Net Income(2) and Core Earnings(1)

2Q'19

1Q'20

2Q'20 ($ in Millions)

Net income:

	$17.4	($35.2)	$28.6
Core earnings:
	$20.5	$25.3	$25.0
			$0.52
		$0.44	$0.45
$0.30	$0.36

2Q'19

1Q'20

2Q'20

($0.61)

	Net Income per Diluted Share		Core Earnings per Diluted Share

Dividends and Book Value Per Share

2Q'19	1Q'20			2Q'20
Dividend per share:
$0.43					$0.43	$0.43
Dividend yield on book value per share:
8.8%					9.3%	9.3%
$19.54					$19.57	$19.73
					$1.22	$1.16
					$18.45	$18.57
2Q'19	1Q'20			2Q'20
		BVPS Post-CECL		CECL Impact

1. See Appendix for definition and reconciliation to financial results prepared in accordance with GAAP.
2. Represents Net Income attributable to common stockholders.
3. Book value per share includes the YTD impact of ($0.6) million, or ($0.01) per common share, non-cash redemption value adjustment to our redeemable SNVPS, resulting in a cumulative (since issuance of the SNVPS) decrease of $2.3 million to our book value as of June 30, 2020.

6

Conservative Portfolio Construction

				Investment Portfolio Evolution											Property Type Evolution
100%				<3%	<1%						100%
		27%																			86%				81%
80%																	80%
																		62%
			6%														Securities	60%													Multifamily
60%																																and Office
											99%					Mezz Loan
								97%																									Hospitality and
															Senior Loan
40%																	40%				31%												Retail
		67%
20%																	20%
																								7%				8%
0%																		0%
		At IPO					4Q'18				2Q'20
															At IPO			4Q'18	2Q'20

Larger Average Loan Size

($ in Millions)

$150

$100

								$134
$50				$100
		$50
$0
		At IPO				4Q'18				2Q'20

Future Funding as a Percentage of Total Commitments

25%

20%

15%

10%	23%
		10%
5%			9%
0%
	At IPO		4Q'18		2Q'20

Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans.

7

Last Twelve Months Loan Activity

Portfolio Funding Activity - Outstanding Principal(2)

($ in Millions)

Future Funding

Obligations(3)

$5,489			$5,777			$5,696			$5,826			$5,769
$537	$473	$204	$556	$619	$765	$621	$338	$180	$593	$78	$54	$512
$4,952			$5,221			$5,075		$5,233	$5,233			$5,257
2Q'19	3Q'19	3Q'19	3Q'19	4Q'19	4Q'19	4Q'19	1Q'20	1Q'20	1Q'20	2Q'20	2Q'20	2Q'20
Portfolio	Fundings	Repayments(4)	Portfolio	Fundings	Repayments(5)	Portfolio	Fundings	Repayments	Portfolio	Fundings(6)	Repayments	Portfolio(7)

1. See Appendix for definition.
2. Includes capital committed to our investment in an aggregator vehicle that invests in CMBS.
3. Future funding obligations are generally contingent upon certain events and may not result in investment by us.
4. Includes sale of residual direct CMBS B-Piece investments with an initial cost of $10.0 million.
5. Includes vertical loan syndications.
6. Includes $1.0 million PIK interest.
7. Gross of write-off of $4.7 million on a $5.5 million mezzanine loan.

8

KREF Loan Portfolio by the Numbers

Total Portfolio Growth

($ in Millions)

Current Portfolio:

$5.3 billion(2)

$4,952

$5,257

Including net funding and repayment

activity subsequent to quarter-end

$2,960

$1,265

2Q'17

2Q'18

2Q'19

2Q'20

Geography(3)

7%

Investment Type(4)		Interest Rate Type
Mezz		Fixed
0.5%	0.1%

Senior	Floating
Loans	99.9%
99.5%

Property Type

Hospitality	Industrial
3%
4%	Student
Retail		Housing
	1%
4%

Condo

(Residential)

21%	7%

6%

Multifamily

		9%
	12%	7%
7%
	6%
		5%
Other <5%, 20%

Office 53% 28%

Office

Multifamily

Class-B

25%Class-B

13%

Class-A	Class-A
75%
87%

Note: The charts above are based on total assets. Total assets reflect the principal amount of our senior and mezzanine loans.

1. LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value. See page 21 for additional details.
2. As of July 31, 2020.
3. Map does not include Midwest Mezzanine portfolio ($5.5 million).
4. Senior loans include senior mortgages and similar credit quality loans, including related contiguous junior participations in senior loans where KREF has financed a loan with structural leverage through the non-recourse sale of a corresponding first mortgage and excludes vertical loan syndications.

9

Multifamily and Office Loan Overview

Multifamily		Office
53% of Loan Portfolio		28% of Loan Portfolio

$146 mm	67%	<1%		$147 mm	64%	<1%
Average Loan Size	W.A. LTV	Construction	Average Loan Size	W.A. LTV	Co-Working Exposure
53%		74%	2014		72%		78%	6.3 years
W.A. Occupancy	W.A. Occupancy	W.A. Year Built	W.A. Occupancy	W.A. Occupancy	W.A. Remaining
at Closing	Current			at Closing	Current	Lease Term
			Property Locations					Property Locations

10

Case Studies: Largest Three Multifamily Loans

Investment	Brooklyn Multifamily	Chicago Multifamily	Arlington Multifamily
Loan Type	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan
Investment Date	May 2019	June 2019	June 2019
Collateral	857-UnitClass-A Luxury Multifamily	800-UnitClass-A Luxury Multifamily	1,100-UnitClass-A Multifamily
Location	Brooklyn, NY	Chicago, IL	Arlington, VA
Committed Amount	$386 million	$340 million	$274 million
Current Principal Amount	$375 million	$335 million	$265 million
Basis	$438k / unit	$418k / unit	$239k / unit
Coupon	L + 2.7%	L + 2.8%	L + 2.5%
LTV(1)	51%	75%	70%
Max Remaining Term (Yrs.)	3.9	6.0	4.0

Asset Photos

(1) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated.

11

Case Studies: Largest Three Office Loans

Investment	Boston Office	Plano Office	Minneapolis Office
Loan Type	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan
Investment Date	May 2018	February 2020	November 2017
Collateral	Class-B+ Office	Four Class-A- Office Buildings	Two Class-A Office Buildings
Totaling 474k SF	Totaling 930k SF	Totaling 1.1mm SF
Location	Boston, MA	Plano, TX	Minneapolis, MN
Committed Amount	$227 million	$227 million	$194 million
Current Principal Amount	$207 million	$177 million	$189 million
Basis	$447 / SF	$190 / SF	$178 / SF
Coupon	L + 2.4%	L + 2.7%	L + 3.8%
LTV(1)	68%	64%	63%
Max Remaining Term (Yrs.)	2.9	4.6	2.4

Asset Photos

(1) LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated.

12

Portfolio Credit Quality Remains Very Strong

• Loan portfolio is 99.9% performing

				Loan-to-Value(1,2)
(% of total portfolio)
							Weighted Average
	1Q'20
							LTV(3): 66%
				28%		27%
20%				17%
								8%
0% - 60%			60% - 65%	65% - 70%	70% - 75%	75% - 80%
							Weighted Average
	2Q'20
							LTV(3): 66%
				28%		27%
20%				17%
								8%
0% - 60%			60% - 65%	65% - 70%	70% - 75%	75% - 80%

Risk Rating Distribution(2)

(% of portfolio)

Weighted Average

1Q'20Risk Rating(3): 3.0

77%

	3%		6%			14%
						0%
	1		2	3	4	5
	2		3	28	7	0
							Loan Count
										Weighted Average
		2Q'20				76%
							Risk Rating(3): 3.1

							16%
	3%	5%					0.1%
	1	2	3	4	5
	2	2	27	7	1

Loan Count

1. LTV is generally based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value.
2. Includes non-consolidated senior interests and excludes vertical loan syndications.
3. Weighted average is weighted by current principal amount for our senior and mezzanine loans.

13

Case Studies: Watch List Loans(1) (Risk Rated-4)

Investment	New York Condo	Ft. Lauderdale Hotel	New York Condo	Portland Retail	San Diego, Multifamily	Brooklyn Hotel	Queens Industrial
Loan Type	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan	Floating-Rate Senior Loan
Investment	December 2018	November 2018	August 2017	October 2015	February 2020	January 2019	July 2017
Date
Collateral	126-UnitClass-A	346-Key	40-Unit Luxury Residential	1.1M Square Foot Retail	231-UnitClass-A	196-Key Hotel	Two Class-B Buildings
Residential Condominium	Full-Service Hotel	Condominium	Center	Multifamily	Totaling 595k RSF
Loan	Acquisition	Refinance	Refinance	Refinance	Acquisition	Refinance	Acquisition
Purpose
Location	New York, NY	Ft. Lauderdale, FL	New York, NY	Portland, OR	San Diego, CA	Brooklyn, NY	Queens, NY
Committed	$235 million	$151 million	$131 million	$125 million	$106 million	$76 million	$75 million
Amount
Current
Principal	$194 million	$141 million	$131 million	$125 million	$106 million	$76 million	$66 million
Amount
Loan Basis	$1,213 / SF	$406k / key	$1,841 / SF	$115 / SF	$459k / unit	$390k / key	$116 / SF
Spread	L + 3.6%	L + 2.9%	L + 4.7%	L + 5.5%	L + 3.3%	L + 2.9%	L + 3.0%
LTV(2)	71%	62%	53%	61%	71%	69%	64%
Max
Remaining	3.5	3.4	1.3	0.4	4.6	3.6	2.1
Term (Yrs.)

1. Excludes $5.5 million mezzanine loan risk-rated 5.
2. LTV based on initial loan amount divided by the as-is appraised value as of the date the loan was originated.

14

Financing Overview: 73% Non-Mark-To-Market

• Diversified financing sources totaling $6.1 billion with $1.9 billion of undrawn capacity

Summary of Outstanding Financing

($ in Millions)	Maximum	Outstanding	Weighted Avg.	Advance	Non-
	Capacity	Face Amount	Coupon	Rate	MTM
Term Credit Facilities	$2,000	$1,088	L+1.7%	71.5%	- (2)
Term Lending	$900	$900	L+1.9%	79.9%	
Agreement
					
Warehouse Facility	$500	$58	L+1.5%	75.0%
Asset Specific	$300	$82	L+1.7%	76.6%	
Financing
Convertible	$144	$144	6.1%	-	
Notes
Corporate Revolving	$335	$50	L+2.0%	-	
Credit Facility
Total Corporate	$4,179	$2,322
Obligations
Term Loan Facility	$1,000	$985	L+1.6%	82.9%	
Collateralized Loan	$810	$810	L+1.4%	81.0%	
Obligation
Senior Loan	$144	$144	L+1.6%	80.0%	
Interests(1)
Total Leverage	$6,133	$4,261

1. Includes $143.6 million of Non-Consolidated Senior Interests, which result from non-recourse sales of senior loan interest in loans KREF originated.
2. Term credit facilities are marked to credit only and not subject to capital markets mark-to-market provisions.
3. Represents (i) facilities outstanding face amount (excluding non-recourse term loan facility), and convertible notes less cash to (ii) total permanent equity, in each case, at period end. The debt-to-equity ratio, adjusted for the impact of CECL allowance for credit losses, is 2.0x at 2Q'20.
4. Represents (i) facilities outstanding face amount, convertible notes, loan participations sold (excluding pari passu and vertical loan syndications), non-consolidated senior loan interests, and collateralized loan obligation less cash to (ii) total permanent equity, in each case, at period end. The total leverage ratio, adjusted for the impact of CECL allowance for credit losses, is 3.8x at 2Q'20.
5. Based on outstanding face amount of secured financing and excludes convertible notes and the corporate revolving credit facility.

15

Leverage Ratios

4.0x

0.2x

2.1x

CECL Impact

0.1x

3.8x

Pre-CECL

2.0x

Debt-to-Equity

Total Leverage

Ratio (3)

Ratio (4)

Outstanding Secured Financing(5)

Warehouse	Term Credit	Term Loan
Facility	Facility
Facilities
1%	24%
27%
Asset Specific		Term Lending
Financing		Agreement
2%	Collateralized	22%
Senior Loan	Loan Obligation
20%		Non-Mark-
Interests
		to-Market
4%
	73%

Financing Overview: Term Credit Facilities

($ in Millions)

Counterparty				Total / Weighted Average
Drawn	$469	$419	$200			$1,088
Capacity	$1,000	$600	$400			$2,000
Collateral: Loans / Principal	5 Loans / $658	3 Loans / $558	3 Loans / $306		11 Loans / $1,522
Balance
Stated Maturity	November 2023	December 2022	October 2021(1)			-
Weighted Average Pricing	L + 1.5%	L + 1.8%	L + 1.9%			L + 1.7%
Weighted Average Advance	71.3%	75.0%	65.4%			71.5%
Mark-to-market	Credit Only	Credit Only	Credit Only(2)			-
				Condo	Student Housing
				4%
					9%
				Office
			Property Type:	10%
						Multi-
				Retail		family
					62%
				15%

1. Does not reflect KREF's option to extend the maturity date to October 2023 subject to certain extension conditions.
2. Facility benefits from a margin holiday through December 2020.

16

Liquidity Overview

Sources of Available Liquidity

($ in Millions) $500.0

$450.0

$400.0 $350.0 $300.0

$250.0 $200.0 $150.0

$100.0 $50.0 $0.0

$431.1

$18.8

$285.0

$127.3

Cash	Undrawn	Approved and Undrawn	Total Available Liquidity
	Corporate Revolver	Credit Capacity	(1)

1. Represents under-levered amounts under financing facilities. While these amounts were previously contractually approved and/or drawn, in certain cases, the lender's consent is required for us to (re)borrow these amounts.

17

Rate Floors Provide Protection in a Declining Rate Environment

• 99.9% of the portfolio is indexed to one-month USD LIBOR
• Portfolio benefits from decreasing rates given in place LIBOR floors
• • 98% of the portfolio is subject to a LIBOR floor of at least 0.95%
  • 5% of total outstanding financing is subject to a LIBOR floor greater than 0.0%

Net Interest Income Per Share Sensitivity to LIBOR Movements(1)

($ Impact Per Share / Q)

$0.18

$0.16

$0.14

$0.12

$0.10

$0.08

$0.06

$0.04

$0.02

$0.00

LIBOR as of	$0.16
6/30/2020
$0.13

$0.12

$0.08

$0.04

LIBOR as of 3/31/2020

$0.00

0.99%

0.75%

0.50%

0.25%

0.16%

0.00%

LIBOR

(1) Portfolio as of June 30, 2020.

18

Appendix

19

Portfolio Details

#	Investment	Location	Property Type	Investment	Committed	Current	Net	Future	(4)(5)	Max Remaining	Loan Per			(4)(7)	Risk
Date	Principal Amount	Principal Amount	Equity(2)	Funding(3)	Coupon	Term (Yrs)(4)(6)	SF / Unit / Key		LTV		Rating
Senior Loans(1)
1	Senior Loan	Brooklyn, NY	Multifamily	5/22/2019	$386.0	$375.1	$91.9	$10.9	L + 2.7%	3.9	$ 437,738 / unit	51%	3
2	Senior Loan	Chicago, IL	Multifamily	6/28/2019	340.0	334.6	82.7	5.4	L + 2.8%	6.0	$ 418,289 / unit	75%	3
3	Senior Loan	Arlington, VA	Multifamily	6/28/2019	273.5	265.1	65.4	8.4	L + 2.5%	4.0	$ 238,843 / unit	70%	3
4	Senior Loan	New York, NY	Condo (Resi)	12/20/2018	234.5	194.3	37.0	40.2	L + 3.6%	3.5	$ 1,213	/ SF	71%	4
5	Senior Loan	Boston, MA	Office	5/23/2018	227.3	207.0	36.7	20.3	L + 2.4%	2.9	$ 447	/ SF	68%	3
6	Senior Loan	Plano, TX	Office	2/6/2020	226.5	176.8	32.7	49.7	L + 2.7%	4.6	$ 190	/ SF	64%	3
7	Senior Loan	Various	Multifamily	5/31/2019	216.5	208.5	39.2	8.0	L + 3.5%	3.9	$ 194,882 / unit	74%	3
8	Senior Loan	Minneapolis, MN	Office	11/13/2017	194.4	189.2	34.7	5.2	L + 3.8%	2.4	$ 178	/ SF	63%	2
9	Senior Loan	Chicago, IL	Multifamily	6/6/2019	186.0	179.5	35.3	1.3	L + 2.7%	3.9	$ 364,837 / unit	74%	3
10	Senior Loan	Denver, CO	Multifamily	8/13/2019	185.0	161.1	34.7	23.9	L + 2.8%	4.2	$ 271,167 / unit	64%	3
11	Senior Loan	Irvine, CA	Office	11/15/2019	183.3	155.9	39.3	27.4	L + 2.9%	4.4	$ 256	/ SF	66%	3
12	Senior Loan	Philadelphia, PA	Office	4/11/2019	182.6	153.9	24.3	28.7	L + 2.6%	3.9	$ 218	/ SF	65%	3
13	Senior Loan	Washington, D.C.	Office	12/20/2019	175.5	53.0	11.9	122.5	L + 3.4%	4.5	$ 320	/ SF	58%	3
14	Senior Loan	Seattle, WA	Office	9/13/2018	172.0	168.0	29.8	4.0	L + 3.8%	3.3	$ 490	/ SF	62%	3
15	Senior Loan	Chicago, IL	Office	7/15/2019	170.0	130.7	25.5	39.3	L + 3.3%	4.1	$ 126	/ SF	59%	3
16	Senior Loan	Philadelphia, PA	Office	6/19/2018	165.0	157.3	29.6	7.7	L + 2.5%	3.0	$ 162	/ SF	71%	3
17	Senior Loan	New York, NY	Multifamily	12/5/2018	163.0	148.0	23.1	15.0	L + 2.6%	3.4	$ 556,391 / unit	67%	3
18	Senior Loan	Fort Lauderdale, FL	Hospitality	11/9/2018	150.6	140.6	27.8	10.0	L + 2.9%	3.4	$ 406,239 / key	62%	4
19	Senior Loan	North Bergen, NJ	Multifamily	10/23/2017	150.0	150.0	37.8	-	L + 3.2%	2.4	$ 468,750 / unit	57%	3
20	Senior Loan	Various	Retail	12/19/2019	147.0	102.2	25.0	44.8	L + 2.6%	5.1	$ 76	/ SF	55%	3
21	Senior Loan	Boston, MA	Multifamily	3/29/2019	138.0	137.0	22.1	1.0	L + 2.7%	3.8	$ 351,282 / unit	63%	3
22	Senior Loan	West Palm Beach, FL	Multifamily	11/7/2018	135.0	131.6	20.9	3.4	L + 2.9%	3.4	$ 162,108 / unit	73%	3
23	Senior Loan	New York, NY	Condo (Resi)	8/4/2017	131.0	131.0	58.0	-	L + 4.7%	1.3	$ 1,841	/ SF (9)	53%	4
24	Senior Loan	Portland, OR	Retail	10/26/2015	125.0	125.0	49.9	-	L + 5.5%	0.4	$ 115	/ SF	61%	4
25	Senior Loan	San Diego, CA	Multifamily	2/3/2020	106.0	106.0	21.5	-	L + 3.3%	4.6	$ 458,874 / unit	71%	4
26	Senior Loan	State College, PA	Student Housing	10/15/2019	93.4	69.4	16.9	24.0	L + 2.7%	4.4	$ 54,620 / bed	64%	3
27	Senior Loan	Seattle, WA	Multifamily	9/7/2018	92.3	92.3	16.7	-	L + 2.6%	3.2	$ 515,571 / unit	76%	3
28	Senior Loan	Los Angeles, CA	Multifamily	12/11/2019	91.0	91.0	18.9	-	L + 2.8%	2.5	$ 421,220 / unit	72%	3
29	Senior Loan	New York, NY	Multifamily	3/29/2018	86.0	86.0	14.4	-	L + 2.6%	2.8	$ 462,366 / unit	48%	1
30	Senior Loan	Seattle, WA	Office	3/20/2018	80.7	80.7	14.6	-	L + 3.6%	2.8	$ 473	/ SF	61%	3
31	Senior Loan	Philadelphia, PA	Multifamily	10/30/2018	77.0	77.0	12.9	-	L + 2.7%	3.4	$ 150,980 / unit	73%	3
32	Senior Loan	Brooklyn, NY	Hospitality	1/18/2019	76.4	76.4	16.0	-	L + 2.9%	3.6	$ 389,633 / key	69%	4
33	Senior Loan	Queens, NY	Industrial	7/21/2017	75.1	66.3	12.2	8.8	L + 3.0%	2.1	$ 116	/ SF	64%	4
34	Senior Loan	Atlanta, GA	Industrial	7/24/2018	74.5	73.3	17.0	1.2	L + 2.7%	3.1	$ 67	/ SF	74%	1
35	Senior Loan	Herndon, VA	Multifamily	12/23/2019	73.9	72.8	11.7	1.1	L + 2.5%	4.5	$ 247,700 / unit	72%	3
36	Senior Loan	Austin, TX	Multifamily	9/12/2019	67.5	67.5	12.3	-	L + 2.5%	4.2	$ 190,678 / unit	75%	3
37	Senior Loan	Atlanta, GA	Multifamily	8/9/2019	61.5	61.5	11.2	-	L + 3.0%	4.2	$ 170,833 / unit	74%	2
Total / Weighted Average				$5,713.0	$5,195.6	$1,111.6	$512.2	L + 3.0%	3.7			66%	3.1
Mezzanine Loans
1	Floating Rate Mezzanine	Westbury, NY	Multifamily	1/27/2020	20.0	20.0	19.9	-	L + 9.0%	4.1	$ 464,135 / unit	66%	3
2	Fixed Rate Mezzanine(1 0 )	Various	Retail	6/8/2015	5.5	5.5	0.9	-	11.0%	5.0	$ 46	/ SF	72%	5
Total / Weighted Average				$25.5	$25.5	$20.8	$0.0	11.0%	4.3			67%	3.4
CMBS
Total / Weighted Average				$40.0	$35.7	$35.7	$4.3	4.7%	9.0			58%
Portfolio Total / Weighted Average			$5,778.5	$5,256.8	$1,168.1	$516.5	4.8%	3.7			66%	3.1
2Q20 Outstanding Portfolio(8)														$5,256.8

*See footnotes on subsequent page

20

Portfolio Details

1. Senior loans include senior mortgages and similar credit quality investments, including junior participations in our originated senior loans for which we have syndicated the senior participations and retained the junior participations for our portfolio and excludes vertical loan syndications.
2. Net equity reflects (i) the amortized cost basis of our loans, net of borrowings and (ii) the cost basis of our investment in RECOP I.
3. Represents Committed Principal Amount less Current Principal Amount on Senior Loans and $4.3 million of remaining commitment to RECOP I.
4. Weighted averages are weighted by current principal amount for senior loans and mezzanine loans and by net equity for our RECOP I CMBS B-Piece investment.
5. L = one-month USD LIBOR rate; greater of (i) spot one-month USD LIBOR rate of 0.16% and (ii) LIBOR floor, where applicable, included in portfolio-wide averages represented as fixed rates.
6. Max remaining term (years) assumes all extension options are exercised, if applicable.
7. For senior loans, loan-to-value ratio ("LTV") LTV is based on the initial loan amount divided by the as-is appraised value as of the date the loan was originated or by the current principal amount as of the date of the most recent as-is appraised value; for Senior Loan 4, LTV is based on the initial loan amount divided by the appraised bulk sale value assuming a condo-conversion and no renovation; for Senior Loan 23, LTV is based on the current principal amount divided by the adjusted appraised gross sellout value net of sales cost; for mezzanine loans, LTV is based on the current balance of the whole loan dividend by the as-is appraised value as of the date the loan was originated; for RECOP I CMBS B-Pieces, LTV is based on the weighted average LTV of the underlying loan pool at issuance.
8. Represents Current Principal Amount of Senior Loans and Mezzanine Loans and Net Equity for our RECOP I CMBS B-Piece investment.
9. For Senior Loan 23, Loan per SF of $1,841 is based on the allocated loan amount of the residential units. Excluding the value of the retail and parking components of the collateral, the Loan per SF is $2,086 based on allocating the full amount of the loan to only the residential units.
10. For Mezzanine Loan 2, Current Principal Amount is gross of $4.7 million write-off (of amortized cost) in 2Q'20.

21

Fully Extended Loan Maturities

• Fully extended weighted average loan maturity of 3.7 years(1)

Fully Extended Loan Maturities(1)

($ in Millions)

$2,500									$2,255.9
$2,000							$1,452.8
$1,500
$1,000					$405.5					$516.3
$500
										$334.6
	$125.0	$131.0
$0
2020	2021	2022	2023	2024	2025	2026

(1) Excludes RECOP I CMBS B-Piece investment.

22

Consolidated Balance Sheets

(in thousands - except share and per share data)
		June 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	127,250	$	67,619
Commercial mortgage loans, held-for-investment		5,113,531			4,931,042
Less: Allowance for credit losses		(62,399)			-
Commercial mortgage loans, held-for-investment, net		5,051,132			4,931,042
Equity method investments		33,606			37,469
Accrued interest receivable		16,860			16,305
Other assets		6,759			4,583
Total Assets	$	5,235,607	$	5,057,018
Liabilities and Equity
Liabilities
Secured financing agreements, net	$	3,152,652	$	2,884,887
Collateralized loan obligation, net		806,645			803,376
Convertible notes, net		139,766			139,075
Loan participations sold, net		64,978			64,966
Dividends payable		24,097			25,036
Accrued interest payable		4,275			6,686
Accounts payable, accrued expenses and other liabilities (1)		5,763			3,363
Due to affiliates		4,928			5,917
Total Liabilities		4,203,104			3,933,306

Commitments and Contingencies

Temporary Equity

Redeemable preferred stock

Permanent Equity

Preferred stock, 50,000,000 authorized (1 share with par value of $0.01 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively)

Common stock, 300,000,000 authorized (55,838,032 and 57,486,583 shares with par value of $0.01 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively)

Additional paid-in capital

Accumulated deficit

Repurchased stock, 3,511,240 and 1,862,689 shares repurchased as of March 31, 2020 and December 31, 2019, respectively

2,275		1,694
-	-
555	575
1,168,720	1,165,995
(78,048)	(8,594)
(60,999)	(35,958)

Total KKR Real Estate Finance Trust Inc. stockholders' equity		1,030,228			1,122,018
Total Permanent Equity		1,030,228			1,122,018
Total Liabilities and Equity	$	5,235,607	$	5,057,018

(1) Includes $1.9 million and $0.0 million of reserve for unfunded loan commitments at June 30, 2020 and December 31, 2019, respectively.

23

Consolidated Statements of Income

(in thousands - except share and per share data)			Three Months Ended					Six Months Ended
	June 30, 2020		March 31, 2020	June 30, 2019		June 30, 2020		June 30, 2019
Net Interest Income
Interest income	$	67,219	$	71,079		$	62,944	$	138,298	$	127,695
Interest expense		30,563			39,082			37,089			69,645			71,931
Total net interest income		36,656			31,997			25,855			68,653			55,764
Other Income
Income (loss) from equity method investments		297			(1,901)			868			(1,604)			1,993
Change in net assets related to CMBS consolidated variable interest entities		-			-			(1,551)			-			(1,209)
Other income		196			360			671			556			1,153
Total other income (loss)		493			(1,541)			(12)			(1,048)			1,937
Operating Expenses
General and administrative		4,046			3,767			2,781			7,813			5,142
Provision for credit losses, net		(1,366)			55,274			-			53,908			-
Management fees to affiliate		4,218			4,299			4,288			8,517			8,575
Incentive compensation to affiliate		1,249			1,606			1,145			2,855			2,098
Total operating expenses		8,147			64,946			8,214			73,093			15,815
Income (Loss) Before Income Taxes, Preferred Dividends and Redemption
Value Adjustment		29,002			(34,490)			17,629			(5,488)			41,886
Income tax expense (benefit)		77			82			280			159			289
Net Income (Loss)		28,925			(34,572)			17,349			(5,647)			41,597
Preferred Stock Dividends and Redemption Value Adjustment		335			592			(32)			927			(489)
Net Income (Loss) Attributable to Common Stockholders	$	28,590	$	(35,164)		$	17,381	$	(6,574)	$	42,086
Net Income (Loss) Per Share of Common Stock, Basic	$	0.52	$	(0.61)		$	0.30	$	(0.12)	$	0.73
Net Income (Loss) Per Share of Common Stock, Diluted	$	0.52	$	(0.61)		$	0.30	$	(0.12)	$	0.73
Weighted Average Number of Shares of Common Stock Outstanding, Basic		55,491,937			57,346,726			57,412,522			56,419,332			57,400,023
Weighted Average Number of Shares of Common Stock Outstanding, Diluted		55,504,077			57,346,726			57,507,219			56,419,332			57,492,296
Dividends Declared per Share of Common Stock	$	0.43	$	0.43		$	0.43	$	0.86	$	0.86

24

Reconciliation of GAAP Net Income to Core Earnings

(in thousands - except share and per share data)			Three Months Ended
	June 30, 2020		March 31, 2020	June 30, 2019
Net Income (Loss) Attributable to Common Stockholders	$	28,590	$	(35,164)		$	17,381
Adjustments
Non-cash equity compensation expense		1,374			1,607			1,043
Unrealized (gains) or losses(1)(2)		973			3,444			1,979
CECL provision for credit losses, net		(1,366)			55,274			-
Non-cash convertible notes discount amortization		90			90			90
Mezzanine loan write-off		(4,650)			-			-
Core Earnings(2)	$	25,011	$	25,251		$	20,493
Weighted Average Shares Outstanding
Basic		55,491,937			57,346,726			57,412,522
Diluted		55,504,077			57,432,611			57,507,219
Core Earnings per Weighted Average Share, Basic(3)	$	0.45	$	0.44		$	0.36
Core Earnings per Weighted Average Share, Diluted(3)	$	0.45	$	0.44		$	0.36

• Although pursuant to the Company's Management Agreement, KREF calculates the incentive compensation and base management fees due to its Manager using Core Earnings before incentive compensation, beginning with the first quarter of 2020, The Company revised its definition of Core Earnings for reporting purposes to be net of incentive compensation, since the Company believes this is a more meaningful presentation of the economic performance of its common stock.

1. Includes $0.2 million, $0.4 million and ($0.2) million non-cash redemption value adjustment of our SNVPS during 2Q'20, 1Q'20 and 2Q'19, respectively.
2. Includes $0.8 million and $3.0 million of unrealized loss on RECOP I, an equity method investment, during 2Q'20 and 1Q'20, respectively. Includes $2.2 million of unrealized loss on CMBS B-Pieces during 2Q'19.
3. Recasted 2Q'19 Core Earnings per Weighted Average Share, Basic and Diluted, to reflect changes in the definition of Core Earnings for reporting purposes. See Appendix page 26 for definitions.

25

Key Definitions

• "Core Earnings": Used by the Company to evaluate the Company's performance excluding the effects of certain transactions and GAAP adjustments the Company believes are not necessarily indicative of the current loan activity and operations. Core Earnings is a measure that is not prepared in accordance with GAAP. The Company defines Core Earnings for reporting purposes as net income (loss) attributable to stockholders or, without duplication, owners of the Company's subsidiaries, computed in accordance with GAAP, including realized losses not otherwise included in GAAP net income (loss) and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) any unrealized gains or losses or other similar non-cash items that are included in net income for the applicable reporting period, regardless of whether such items are included in other comprehensive income or loss, or in net income, and (iv) one-time events pursuant to changes in GAAP and certain material non-cash income or expense items after discussions between the Company's Manager and board of directors and after approval by a majority of the independent directors. The exclusion of depreciation and amortization from the calculation of Core Earnings only applies to debt investments related to real estate to the extent the Company forecloses upon the property or properties underlying such debt investments.
• The Company believes that providing Core Earnings on a supplemental basis to its net income as determined in accordance with GAAP is helpful to stockholders in assessing the overall performance of the Company's business. Although pursuant to the Management Agreement with its Manager, the Company calculates the incentive compensation and base management fees due to its Manager using Core Earnings before incentive compensation, beginning with the first quarter of 2020, the Company revised its definition of Core Earnings for reporting purposes to be net of incentive compensation, since the Company believes this is a more meaningful presentation of the economic performance of its common stock.
• Core Earnings should not be considered as a substitute for GAAP net income. The Company cautions readers that its methodology for calculating Core Earnings may differ from the methodologies employed by other REITs to calculate the same or similar supplemental performance measures, and as a result, the Company's reported Core Earnings may not be comparable to similar measures presented by other REITs.
• "IRR": IRR is the annualized effective compounded return rate that accounts for the time-value of money and represents the rate of return on an investment over a holding period expressed as a percentage of the investment. It is the discount rate that makes the net present value of all cash outflows (the costs of investment) equal to the net present value of cash inflows (returns on investment). It is derived from the negative and positive cash flows resulting from or produced by each transaction (or for a transaction involving more than one investment, cash flows resulting from or produced by each of the investments), whether positive, such as investment returns, or negative, such as transaction expenses or other costs of investment, taking into account the dates on which such cash flows occurred or are expected to occur, and compounding interest accordingly. The weighted average underwritten IRR for the investments shown reflects the returns underwritten by KKR Real Estate Finance Manager LLC, the Company's external manager, taking into account certain assumptions around leverage up to no more than the maximum approved advance rate, and calculated on a weighted average basis assuming no dispositions, early prepayments or defaults but assuming that extension options are exercised and that the cost of borrowings remains constant over the remaining term. With respect to certain loans included in the weighted average underwritten IRR shown, the calculation assumes certain estimates with respect to the timing and magnitude of the initial and future fundings for the total loan commitment and associated loan repayments, and assumes no defaults. With respect to certain loans included in the weighted average underwritten IRR shown, the calculation assumes the one-month spot USD LIBOR as of the date the loan was originated. There can be no assurance that the actual weighted average IRRs will equal the weighted average underwritten IRRs shown.

26