KKR Real Estate Finance Trust Inc. (KREF) reported its financial results for the quarter ended September 30, 2026. The company recorded a net loss attributable to common stockholders of $6.4 million, or $0.11 per diluted share, for the three months ended September 30, 2026. This compares to a net loss of $121.8 million, or $1.95 per diluted share, for the prior quarter ended June 30, 2026.
The company also reported a Distributable Loss of $152.0 million, or $2.64 per diluted share, for the third quarter of 2026. This figure includes a realized loss on loan write-offs of $155.9 million and expenses related to a strategic review of $1.5 million, partially offset by non-cash equity compensation expense of $1.9 million and depreciation and amortization of $2.0 million.
As of September 30, 2026, KREF maintained a liquidity position of $853.5 million, which includes $165.9 million in cash and $600.0 million of undrawn capacity on its corporate revolving credit agreement. The company also reported a common book value of $582.5 million, or $10.14 per share, as of September 30, 2026.
In terms of portfolio activity, KREF originated and funded $157.0 million in new floating-rate senior loans with a weighted average loan-to-value ratio of 63% and a coupon of 2.6% over the applicable benchmark. The company received $1.2 billion in loan repayments during the third quarter, with year-to-date repayments totaling $2.4 billion. The current loan portfolio stands at $3.2 billion, with 98% of the loans floating-rate and a weighted average unlevered all-in yield of 7.0%.
The company resolved three watch list loans during the quarter, including a risk-rated 5 life science loan in Boston, MA, a risk-rated 5 loan in San Diego, CA, and a risk-rated 4 loan in Dallas, TX. Additionally, KREF redeemed both outstanding collateralized loan obligations, which included an aggregate of $564 million in investment-grade bonds. The company repurchased 1.6 million shares in July at an average price of $7.26 per share for a total of $11.3 million.
KREF will host a conference call to discuss its financial results on Thursday, October 29, 2026, at 11:00 a.m. Eastern Time. Members of the public can participate by dialing (800) 715-9871 or +1 (646) 307-1963, referencing pass code 7308915.
