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KKR Real Estate Finance Trust (KREF)

Cover Page

Cover Page - USD ($) $ in Millions12 Months Ended
Dec. 31, 2019Feb. 14, 2020Jun. 28, 2019
Cover page.
Document Type10-K
Document Annual Reporttrue
Document Period End DateDec. 31,
2019
Document Transition Reportfalse
Entity File Number001-38082
Entity Registrant NameKKR Real Estate Finance Trust Inc.
Entity Incorporation, State or Country CodeMD
Entity Tax Identification Number47-2009094
Entity Address, Address Line One9 West 57th Street,
Entity Address, Address Line TwoSuite 4200
Entity Address, City or TownNew York,
Entity Address, State or ProvinceNY
Entity Address, Postal Zip Code10019
City Area Code212
Local Phone Number750-8300
Title of 12(b) SecurityCommon stock, par value $0.01 per share
Trading SymbolKREF
Security Exchange NameNYSE
Entity Well-known Seasoned IssuerNo
Entity Voluntary FilersNo
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryAccelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companytrue
Entity Shell Companyfalse
Entity Public Float $ 478.3
Entity Common Stock, Shares Outstanding57,486,583
Entity Central Index Key0001631596
Amendment Flagfalse
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2019
Document Fiscal Period FocusFY
Entity Ex Transition Periodtrue

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Assets
Cash and cash equivalents $ 67,619 $ 86,531
Commercial mortgage loans, held-for-investment, net4,931,042 4,001,820
Equity method investments37,469 30,734
Accrued interest receivable16,305 16,178
Other assets4,583 3,596
Commercial mortgage loans held in variable interest entities, at fair value0 1,092,986
Total Assets5,057,018 5,231,845
Liabilities
Secured financing agreements, net2,884,887 1,951,049
Collateralized loan obligation, net803,376 800,346
Convertible notes, net139,075 137,688
Loan participations sold, net64,966 85,465
Accounts payable, accrued expenses and other liabilities3,363 4,529
Dividends payable25,036 25,097
Accrued interest payable6,686 7,516
Due to affiliates5,917 4,712
Variable interest entity liabilities, at fair value0 1,080,255
Total Liabilities3,933,306 4,096,657
Commitments and Contingencies (Note 11)
Temporary Equity
Redeemable preferred stock1,694 2,846
Permanent Equity
Preferred stock, 50,000,000 authorized (1 share with par value of $0.01 issued and outstanding as of December 31, 2019 and 2018)0 0
Common stock, 300,000,000 authorized (57,486,583 and 57,596,217 shares with par value of $0.01 issued and outstanding as of December 31, 2019 and 2018, respectively)575 576
Additional paid-in capital1,165,995 1,163,845
Accumulated deficit(8,594)(225)
Repurchased stock, 1,862,689 and 1,649,880 shares repurchased as of December 31, 2019 and 2018, respectively(35,958)(31,854)
Total KKR Real Estate Finance Trust Inc. stockholders’ equity1,122,018 1,132,342
Total Permanent Equity1,122,018 1,132,342
Total Liabilities and Equity $ 5,057,018 $ 5,231,845

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / sharesDec. 31, 2019Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock authorized (shares)50,000,000 50,000,000
Preferred stock par value (usd per share) $ 0.01 $ 0.01
Preferred stock issued (shares)1 1
Preferred stock outstanding (shares)1 1
Common stock authorized (shares)300,000,000 300,000,000
Common stock par value (usd per share) $ 0.01 $ 0.01
Number of shares issued (shares)57,486,583 57,596,217
Common stock outstanding (shares)57,486,583 57,596,217
Treasury stock, held (shares)1,862,689 1,649,880

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Net Interest Income
Interest income $ 274,335 $ 183,575 $ 83,145
Interest expense158,860 85,017 21,224
Total net interest income115,475 98,558 61,921
Other Income
(Loss) gain on sale of investments(2,688)13,000 0
Change in net assets related to CMBS consolidated variable interest entities1,665 2,588 15,845
Income from equity method investments4,568 3,065 875
Other income2,453 1,440 968
Total other income (loss)5,998 20,093 17,688
Operating Expenses
General and administrative10,522 7,812 4,936
Management fees to affiliate17,135 16,346 13,492
Incentive compensation to affiliate3,272 4,756 0
Total operating expenses30,929 28,914 18,428
Income (Loss) Before Income Taxes, Noncontrolling Interests and Preferred Dividends90,544 89,737 61,181
Income tax expense (benefit)579 (70)1,102
Net Income (Loss)89,965 89,807 60,079
Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture0 63 216
Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture0 0 801
Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries89,965 89,744 59,062
Preferred Stock Dividends and Redemption Value Adjustment(527)2,451 244
Net Income (Loss) Attributable to Common Stockholders $ 90,492 $ 87,293 $ 58,818
Net Income (Loss) Per Share of Common Stock
Basic (usd per share) $ 1.58 $ 1.58 $ 1.30
Diluted (usd per share) $ 1.57 $ 1.58 $ 1.30
Weighted Average Number of Shares of Common Stock Outstanding
Basic (shares)57,426,912 55,136,548 45,320,358
Diluted (shares)57,532,490 55,171,061 45,321,360
Dividends Declared per Share of Common Stock (usd per share) $ 1.72 $ 1.69 $ 1.62

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in ThousandsTotalRedeemable Noncontrolling Interests in Equity of Consolidated Joint VentureRedeemable Preferred StockPreferred StockCommon StockAdditional Paid-In CapitalRetained Earnings (Accumulated Deficit)Repurchased StockTotal KKR Real Estate Finance Trust Inc. Stockholders' EquityNoncontrolling Interests in Equity of Consolidated Joint Venture
Ending balance (shares) at Dec. 31, 2016126 24,158,392
Ending balance at Dec. 31, 2016 $ 505,037 $ 125 $ 242 $ 479,417 $ 17,914 $ 0 $ 497,698 $ 7,339
Ending balance at Dec. 31, 2016 $ 3,030 $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock (shares)29,553,446
Issuance of stock580,306 $ 295 580,011 580,306
Repurchase of common stock (shares)(26,398)
Repurchase of common stock(523)(523)(523)
Redemption of preferred stock (shares)(125)
Redemption of preferred stock(125) $ (125)(125)
Offering costs(6,642)(6,642)(6,642)
Preferred dividends declared, per share(6)(6)(6)
Common dividends declared(70,452)(70,452)(70,452)
Equity compensation65 65 65
Net income (loss)59,625 58,824 58,824 801
Ending balance (shares) at Dec. 31, 20171 53,685,440
Ending balance at Dec. 31, 20171,059,145 $ 0 $ 537 1,052,851 6,280 (523)1,059,145 0
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of stock949
Preferred dividends declared, per share(238)
Capital distributions(8,140)(8,140)
Capital distributions and redemptions(156)
Net income (loss)216 238
Ending balance at Dec. 31, 20173,090 949
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock (shares)5,500,000
Issuance of stock $ 109,500 $ 55 109,445 109,500
Repurchase of common stock (shares)(1,623,482)(1,623,482)
Repurchase of common stock $ (31,347) $ (16)(31,331)(31,347)
Offering costs(1,823)(1,823)(1,823)
Common dividends declared(93,798)(93,798)(93,798)
Equity component of convertible notes1,800 1,800 1,800
Adjustment of redeemable preferred stock to redemption value(1,897)(1,897)(1,897)
Stock-based compensation (shares)34,259
Stock-based compensation1,572 1,572 1,572
Net income (loss)89,190 89,190 89,190
Ending balance (shares) at Dec. 31, 20181 57,596,217
Ending balance at Dec. 31, 20181,132,342 $ 0 $ 576 1,163,845 (225)(31,854)1,132,342 0
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred dividends declared, per share(554)
Adjustment of redeemable preferred stock to redemption value1,897
Capital distributions and redemptions(3,153)
Net income (loss)63 554
Ending balance at Dec. 31, 2018 $ 2,846 0 2,846
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (shares)(212,809)(212,809)
Repurchase of common stock $ (4,106) $ (2)(4,104)(4,106)
Offering costs(518)(518)(518)
Common dividends declared(98,860)(98,860)(98,860)
Adjustment of redeemable preferred stock to redemption value1,152 1,152 1,152
Stock-based compensation (shares)103,175
Stock-based compensation2,669 $ 1 2,668 2,669
Net income (loss)89,339 89,339 89,339
Ending balance (shares) at Dec. 31, 20191 57,486,583
Ending balance at Dec. 31, 20191,122,018 $ 0 $ 575 $ 1,165,995 $ (8,594) $ (35,958) $ 1,122,018 $ 0
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred dividends declared, per share(624)
Adjustment of redeemable preferred stock to redemption value(1,152)
Capital distributions(1,400)
Net income (loss)624
Ending balance at Dec. 31, 2019 $ 1,694 $ 0 $ 1,694

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - $ / sharesSep. 13, 2019Jun. 14, 2019Mar. 18, 2019Dec. 17, 2018Sep. 10, 2018May 07, 2018Mar. 09, 2018Dec. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Statement of Stockholders' Equity [Abstract]
Dividends Declared per Share of Common Stock (usd per share) $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.40 $ 0.43 $ 1.72 $ 1.69 $ 1.62

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Cash Flows From Operating Activities
Net income (loss) $ 89,965 $ 89,807 $ 60,079
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of deferred debt issuance costs and discounts16,765 8,590 3,142
Accretion of net deferred loan fees and discounts(20,217)(10,524)(3,588)
Interest paid-in-kind0 0 (864)
Change in non-cash net assets of consolidated variable interest entities0 2,564 (3,375)
Loss (Gain) on sale of investment securities2,688 (13,000)0
(Income) from equity method investments(1,420)(1,406)(875)
Stock-based compensation expense4,091 1,973 65
Origination and purchase of commercial loans, held-for-sale0 0 (91,475)
Proceeds from sale of commercial loans, held-for-sale0 0 91,467
Changes in operating assets and liabilities:
Accrued interest receivable, net61 (6,914)(5,453)
Other assets321 (1,708)2,792
Due to affiliates167 (1,231)2,714
Accounts payable, accrued expenses and other liabilities122 2,786 (1,858)
Accrued interest payable(830)5,893 1,030
Net cash provided by (used in) operating activities91,713 76,830 53,801
Cash Flows From Investing Activities
Proceeds from sales of commercial mortgage-backed securities9,784 112,747 0
Proceeds from sale/syndication and principal repayments of commercial mortgage loans, held-for-investment1,934,893 446,336 94,600
Proceeds from principal repayments of preferred interest in joint venture, held-to-maturity0 0 37,310
Origination of commercial mortgage loans, held-for-investment(2,864,810)(2,540,685)(1,201,778)
Investment in commercial mortgage-backed securities, equity method investee(6,245)(15,611)(33,588)
Proceeds from commercial mortgage-backed securities, equity method investee19,779
Purchase of Available-for-Sale debt securities(94,007)
Sales of Available-for-Sale debt securities94,071 0 0
Net cash provided by (used in) investing activities(926,314)(1,997,213)(1,083,677)
Cash Flows From Financing Activities
Proceeds from borrowings under secured financing agreements3,217,859 2,311,140 984,197
Proceeds from issuance of collateralized loan obligation0 810,000 0
Net proceeds from issuance of convertible notes0 139,438 0
Proceeds from issuances of common stock0 109,500 581,255
Redemption of preferred stock0 0 (125)
Payments of common stock dividends(98,954)(88,847)(50,579)
Payments of preferred stock dividends(592)(386)(137)
Principal repayments on borrowings under secured financing agreements(2,284,819)(1,314,812)(460,432)
Payments of debt and collateralized debt obligation issuance costs(12,060)(26,418)(3,412)
Payments of stock issuance costs(1,254)(1,324)(4,898)
Payments to reacquire common stock(4,106)(31,347)(523)
Tax withholding on stock-based compensation(385)(397)0
Net cash provided by (used in) financing activities815,689 1,903,394 1,037,050
Net Increase (Decrease) in Cash, Cash Equivalents(18,912)(16,989)7,174
Cash, Cash Equivalents at Beginning of Period86,531 103,520 96,346
Cash, Cash Equivalents at End of Period67,619 86,531 103,520
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest146,156 66,775 17,322
Cash paid during the period for income taxes398 755 806
Supplemental Schedule of Non-Cash Investing and Financing Activities
Loan principal payments held by servicer0 0 4,557
Dividend declared, not yet paid25,036 25,097 19,981
Payoff of loan participations sold and commercial mortgage loans, held-for-investment150,880 0 0
Deferred financing costs, not yet paid503 0 0
Deconsolidation of variable interest entities (assets and liabilities)1,047,346 4,048,378 0
Redeemable Noncontrolling Interest
Cash Flows From Financing Activities
Payments to Noncontrolling Interests0 (3,153)(156)
Noncontrolling Interest
Cash Flows From Financing Activities
Payments to Noncontrolling Interests $ 0 $ 0 $ (8,140)

Business and Organization

Business and Organization12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization Business and Organization KKR Real Estate Finance Trust Inc. (together with its consolidated subsidiaries, referred to throughout this report as the "Company", " KREF ", "we", "us" and "our") is a Maryland corporation that was formed and commenced operations on October 2, 2014 as a mortgage " real estate investment trust " (" REIT ") that focuses primarily on originating and acquiring senior loans secured by commercial real estate ("CRE") assets. KREF has elected and intends to maintain its qualification to be taxed as a REIT under the requirements of the Internal Revenue Code of 1986, as amended (the " Internal Revenue Code "), for U.S. federal income tax purposes. As such, KREF will generally not be subject to U.S. federal income tax on that portion of its income that it distributes to stockholders if it distributes at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. See Note 14 regarding taxes applicable to KREF . KREF is externally managed by KKR Real Estate Finance Manager LLC (" Manager "), an indirect subsidiary of KKR & Co. Inc. (together with its subsidiaries, " KKR "), through a management agreement (" Management Agreement ") pursuant to which the Manager provides a management team and other professionals who are responsible for implementing KREF ’s business strategy, subject to the supervision of KREF ’s board of directors. For its services, the Manager is entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement (Note 12 ). As of December 31, 2019 , KKR beneficially owned 22,008,616 shares of KREF 's common stock, of which 2,008,616 shares were held by KKR on behalf of a third-party investor. KREF 's principal business activities are related to the origination and purchase of credit investments related to CRE. Management assesses the performance of KREF 's current portfolio of leveraged and unleveraged commercial mortgage loans and commercial mortgage-backed securities (" CMBS ") as a whole and makes operating decisions accordingly. As a result, management presents KREF 's operations within a single reporting segment.

Summary of Significant Accounti

Summary of Significant Accounting Policies12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesSummary of Significant Accounting Policies Basis of Presentation — The accompanying consolidated financial statements and related notes of KREF are prepared in accordance with accounting principles generally accepted in the United States of America (" GAAP "). The consolidated financial statements include the accounts of KREF and its consolidated subsidiaries, and all intercompany transactions and balances have been eliminated. The classification of proceeds from sale of commercial mortgage loans was updated in the prior period presentation to conform to the current period presentation on the Company’s consolidated statements of cash flows. Consolidation — KREF consolidates those entities for which (i) it controls significant operating, financial and investing decisions of the entity or (ii) management determines that KREF is the primary beneficiary of entities deemed to be variable interest entities (" VIE s"). Variable Interest Entities — VIE s are defined as entities in which equity investors do not have an interest with the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party that has the power to direct the activities of the VIE that most significantly impact its economic performance and that has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could be potentially significant to the VIE (Note 8 ). To assess whether KREF has the power to direct the activities of a VIE that most significantly impact the VIE ’s economic performance, KREF considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE ’s economic performance; and second, identifying which party, if any, has power to direct those activities. To assess whether KREF has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE , KREF considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE . Collateralized Loan Obligation — KREF consolidates a collateralized loan obligation that closed in November 2018 (“ KREF 2018-FL1” or “CLO”) (Note 5 ). Management determined that KREF 2018-FL1 Ltd. and KREF 2018-FL1 LLC (the "CLO Issuers"), wholly-owned subsidiaries of KREF , were VIEs and that KREF was the primary beneficiary. KREF is the primary beneficiary of the VIEs since it has the ability to control the most significant activities of the CLO Issuers through ownership of non-investment grade rated subordinated controlling tranches, has the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to these entities. As a result, KREF consolidates the CLO Issuers. The collateral assets of the CLO, comprised of a pool of loan participations (Note 5 ) are included in “Commercial mortgage loans, held-for-investment, net” on the accompanying Consolidated Balance Sheets. The liabilities of KREF 's consolidated CLO Issuers consist solely of obligations to the senior CLO noteholders, excluding subordinated CLO tranches held by KREF as such interests are eliminated in consolidation, are presented in “Collateralized loan obligation, net” in the accompanying Consolidated Balance Sheets. The collateral assets of the CLO can only be used to settle the obligations of the consolidated CLO. The interest income from the CLO collateral assets and the interest expense on the CLO liabilities are presented on a gross basis in “Interest income” and “Interest expense”, respectively, in KREF 's Consolidated Statements of Income. CMBS — KREF consolidates those trusts that issue beneficial ownership interests in mortgage loans secured by CRE (commonly known as CMBS ) when KREF holds a variable interest in, and management considers KREF to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impacts the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to the greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint and remove the special servicer for the trust. The special servicer is responsible for the servicing and administration of delinquent and nonperforming loans as well as real estate owned (" REO ") properties held as collateral delivered on foreclosed loans. While the special servicer cannot prevent losses, its services to the trust are designed to mitigate credit losses to holders of the CMBS . For any CMBS trust that KREF consolidates, KREF holds an unrated tranche that represents the most subordinated tranche of the CMBS issued by that trust, which include the controlling class. As the holder of the most subordinate tranche, KREF is in a first loss position and has the right to receive benefits. As the holder of the controlling class, KREF has the ability to unilaterally appoint and remove the special servicer for the trust. In these cases, management considers KREF to be the primary beneficiary and consolidates that CMBS trust. For VIE s in which management determines KREF is the primary beneficiary, all of the underlying assets, liabilities and equity of the trusts are recorded on KREF 's books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these trusts is eliminated in consolidation. Management elected the fair value option for KREF 's initial and subsequent recognition of the assets and liabilities of KREF 's consolidated CMBS VIE s in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS beneficially held by KREF 's stockholders. Since the changes in fair value include the interest income and interest expense associated with these CMBS VIE s, management does not consider the separate presentation of the components of fair value changes to be relevant. Management has elected to present these items in aggregate as " Other Income — Change in net assets related to CMBS consolidated variable interest entities " in the accompanying Consolidated Statements of Income; the residual difference between the fair value of the trust's assets and liabilities represents KREF 's beneficial interest in the CMBS VIE s. Management separately presents the assets and liabilities of KREF 's consolidated VIE s as individual line items on KREF 's Consolidated Balance Sheets for entities in which the VIE s assets can only be used to settle the VIE ’s obligations. The liabilities of KREF 's consolidated VIE s consist solely of obligations to the CMBS holders of the consolidated trust, excluding CMBS held by KREF as such interests are eliminated in consolidation, and the interest accrued thereon, presented as "Liabilities — Variable interest entity liabilities, at fair value ." The assets of KREF 's consolidated VIEs consist principally of commercial mortgage loans and the interest accrued thereon, and are likewise presented as a single line item entitled " Assets — Commercial mortgage loans held in variable interest entities, at fair value ." Assets of a CMBS trust, as a whole, can only be used to settle the obligations of the consolidated CMBS VIE . The assets of KREF 's CMBS VIE s are not individually accessible by, and obligations of the CMBS VIE s are not recourse to, the bondholders. KREF derives the fair value of its Level 3 CMBS VIE assets from its Level 3 CMBS VIE liabilities, which management considers to possess more observable market value data than the CMBS VIE assets. See "— Fair Value — Valuation of CMBS Consolidated VIEs " for additional discussion regarding management's valuation of consolidated CMBS VIE s. During the three months ended September 30, 2019, KREF sold the remaining directly held CMBS investments, including an unrated tranche that represented the most subordinated tranche of the CMBS issued by that trust, including the controlling class. Accordingly, KREF deconsolidated the respective CMBS trust as of December 31, 2019 (Note 8 ). Noncontrolling Interests — Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than KREF . Those noncontrolling interests that allow the holder to redeem before liquidation or termination of the entity that issued those interests are considered redeemable noncontrolling interests. The redeemable noncontrolling interests issued by subsidiaries of KREF are subject to certain restrictions and require KREF to transfer assets or issue equity to satisfy the redemption. As KREF does not control the circumstances under which the noncontrolling interests may redeem their interests, management considers these redeemable noncontrolling interests as temporary equity, presented as " Temporary Equity — Redeemable noncontrolling interests in equity of consolidated joint venture " in the accompanying Consolidated Balance Sheets and their share of " Net Income (Loss) " as " Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture " in the Consolidated Statements of Income. KREF recorded the redeemable noncontrolling interests at fair value upon issuance by subsidiaries of KREF , and adjusts the carrying value of such interests to equal their respective redemption values at each subsequent reporting period date if KREF determines the noncontrolling interests are redeemable or probable to become redeemable. Temporary Equity — KREF determined that the Special Non-Voting Preferred Stock (“SNVPS”) became redeemable in the second quarter of 2018. As a result, starting with the second quarter of 2018, KREF adjusts the carrying value of the SNVPS to its redemption value quarterly. Accordingly, KREF adjusted the carrying value of the SNVPS to its redemption value of $1.7 million as of December 31, 2019 and recorded a ($1.2) million non-cash redemption value adjustment to the SNVPS (“SNVPS Redemption Value Adjustment”) during the year ended December 31, 2019 . Such adjustment is treated similar to a dividend on preferred stock for GAAP purposes, accordingly, the SNVPS Redemption Value Adjustment is therefore deducted from (or added back to) “Net Income (loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries” to arrive at “Net Income (Loss) Attributable to Common Stockholders” on KREF 's Consolidated Statements of Income. Equity method investments — Investments are accounted for under the equity method when KREF has significant influence over the operations of an investee, but KREF does not consolidate that investment. Equity method investments, for which management has not elected a fair value option, are initially recorded at cost and subsequently adjusted for KREF 's share of net income or loss and cash contributions and distributions each period. Management determined that KREF 's investment in the Manager is an interest in a VIE as KREF did not have substantive participating or kick-out rights. KREF does not have the power to direct activities and the obligation to absorb losses of the Manager that could be significant to the Manager . KREF accounts for its investment in the Manager using the equity method since KREF is not the primary beneficiary of the Manager (Note 8 ). Management determined that its investment in an aggregator vehicle alongside KKR Real Estate Credit Opportunity Partners L.P. (" RECOP I ") is an interest in a VIE , however KREF is not the primary beneficiary and does not have substantive participating or kick-out rights. Management elected the fair value option for KREF 's investment in RECOP I . KREF records its share of net asset value in RECOP I as “ Equity method investments ” in its Consolidated Balance Sheets and its share of unrealized gains or losses in " Income from equity method investments " in its Consolidated Statements of Income. KREF classifies distributions received from equity method investees using the cumulative earnings approach. Distributions received up to the cumulative earnings from each equity method investee are considered returns on investment and presented within “Cash Flows from Operating Activities” in the Consolidated Statements of Cash Flows; excess distributions received are considered returns of investment and presented within “Cash Flows from Investing Activities” in the Consolidated Statements of Cash Flows. Use of Estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management makes subjective estimates to project cash flows KREF expects to receive on its investments in loans and securities as well as the related market discount rates, which significantly impacts the interest income, impairments, allowance for loan loss and fair values recorded or disclosed. Actual results could differ from those estimates. Fair Value — GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 - Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. KREF follows this hierarchy for its financial instruments. The classifications are based on the lowest level of input that is significant to the fair value measurement. Estimates of fair value for cash and cash equivalents, restricted cash, and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Valuation Process — The Manager reviews the valuation of Level 3 financial instruments as part of KKR 's quarterly process. As of December 31, 2019 , KKR’s valuation process for Level 3 measurements, as described below, subjected valuations to the review and oversight of various committees. KKR has a global valuation committee assisted by the asset class-specific valuation committees, including a real estate valuation committee that reviews and approves all preliminary Level 3 valuations for real estate assets, including the financial instruments held by KREF . The global valuation committee is responsible for coordinating and implementing KKR ’s valuation process to ensure consistency in the application of valuation principles across portfolio investments and between periods. All Level 3 valuations are also subject to approval by the global valuation committee. Valuation of Commercial Mortgage Loans and Participation Sold — Management generally considers KREF 's commercial mortgage loans Level 3 assets in the fair value hierarchy as such assets are illiquid, structured investments that are specific to the property and its operating performance. On a quarterly basis, management engages an independent valuation firm to estimate the fair value of each loan categorized as a Level 3 asset. Management reviews the quarterly loan valuation estimates provided by the independent valuation firm. These loans are generally valued using a discounted cash flow model using discount rates derived from observable market data applied to the capital structure of the respective sponsor and estimated property value. For commercial mortgage loans risk-rated 1-3, the loans are valued using a discounted cash flow model using discount rates derived from relevant market indices. For commercial mortgage loans risk-rated 4 or 5, the loans are valued using a discounted cash flow model using discount rates derived from relevant market indices and estimates of the underlying property's value to assess collateral coverage and recovery of principal and any accrued interest. In the event that management's estimate of fair value differs from the fair value estimate provided by the independent valuation firm, KREF ultimately relies solely upon the valuation prepared by the investment personnel of the Manager. Valuation of CLO Consolidated VIEs — Management estimates the fair value of the CLO liabilities using prices obtained from an independent valuation firm. If prices received from the independent valuation firm are inconsistent with values determined in connection with management’s independent review, management makes inquiries to the independent valuation firm about the prices received and related methods. In the event management determines the price obtained from an independent valuation firm to be unreliable or an inaccurate representation of the fair value of the CLO liabilities (based on considerations given to observable market data), management then compiles evidence independently and presents the independent valuation firm with such evidence supporting a different value. As a result, the independent valuation firm may revise their price accordingly. However, if management continues to disagree with the price from the independent valuation firm, in light of evidence presented that management compiled independently and believes to be compelling, management considers the independent valuation firm's quotation unreliable or inaccurate representation of the fair value of the CLO liabilities. In the event that the quotation from the independent valuation firm is not available or determined to be unreliable or an inadequate representation of the fair value of the CLO liabilities, valuations are prepared using inputs based on non-binding broker quotes obtained from independent, well-known, major financial brokers that are CLO market makers. In validating any non-binding broker quote used in this circumstance, management compares the non-binding quote to the observable market data points at such time and used to validate prices received from the independent valuation firm in addition to understanding the valuation methodologies used by the market makers. These market participants utilize a similar methodology as the independent valuation firm to value the CLO liabilities, with the key input of expected yield determined independently based on both observable and unobservable factors (as described above). To avoid reliance on any single broker-dealer, management receives a minimum of two non-binding quotes, of which the average is used. Valuation of CMBS Consolidated VIEs — Management categorizes the financial assets and liabilities of the CMBS trusts that KREF consolidates as Level 3 assets and liabilities in the fair value hierarchy and has elected the fair value option for financial assets and liabilities of each CMBS trust. Management has adopted the measurement alternative included in Accounting Standards Update (" ASU ") No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (" ASU 2014-13"). Pursuant to ASU 2014-13, management measures both the financial assets and financial liabilities of the CMBS trusts consolidated by KREF using the fair value of the financial liabilities, which management considers more observable than the fair value of the financial assets. Accordingly, KREF presents the CMBS issued by a consolidated trust, but not beneficially owned by KREF 's stockholders, as financial liabilities in KREF 's consolidated financial statements, measured at their estimated fair value; KREF measures the financial assets as the total estimated fair value of the CMBS issued by a consolidated trust, regardless of whether such CMBS represent interests beneficially owned by KREF 's stockholders. Under the measurement alternative prescribed by ASU 2014-13, KREF 's " Net Income (Loss) " reflects the economic interests in the consolidated CMBS beneficially owned by KREF 's stockholders, presented as " Change in net assets related to CMBS consolidated variable interest entities " in the Consolidated Statements of Income, which includes applicable (i) changes in the fair value of CMBS beneficially owned by KREF , (ii) interest and servicing fees earned from the CMBS trust and (iii) other residual returns or losses of the CMBS trust, if any (Note 8 ). Other Valuation Matters — For Level 3 financial assets originated, or otherwise acquired, and financial liabilities assumed during the calendar month immediately preceding a quarter end that were conducted in an orderly transaction with an unrelated party, management generally believes that the transaction price provides the most observable indication of fair value given the illiquid nature of these financial instruments, unless management is aware of any circumstances that may cause a material change in the fair value through the remainder of the reporting period. For instance, significant changes to the underlying property or its planned operations may cause material changes in the fair value of commercial mortgage loans acquired, or originated, by KREF . KREF ’s determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are management’s best estimates after consideration of a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of a financial instrument in the form of a range, management selects a value within the range provided by the independent valuation firm, generally the midpoint, to assess the reasonableness of management’s estimated fair value for that financial instrument. See Note 13 for additional information regarding the valuation of KREF 's financial assets and liabilities. Sales of Financial Assets and Financing Agreements — KREF will, from time to time, sell loans, securities and other assets as well as finance assets in the form of secured borrowings. In each case, management evaluates whether the transaction constitutes a sale through legal isolation of the transferred financial asset from KREF , the ability of the transferee to pledge or exchange the transferred asset without constraint and the transfer of control of the transferred asset. For transfers that constitute sales, KREF (i) recognizes the financial assets it retains and liabilities it has incurred, if any, (ii) derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished and (iii) recognizes a realized gain, or loss, based upon the excess, or deficient, proceeds received over the carrying value of the transferred asset. KREF does not recognize a gain, or loss, on interests retained, if any, where management elected the fair value option prior to sale. Balance Sheet Measurement Cash and Cash Equivalents and Restricted Cash — KREF considers cash equivalents as highly liquid short-term investments with maturities of 90 days or less when purchased. Substantially all amounts on deposit with major financial institutions exceed insured limits. KREF must also maintain sufficient cash and cash equivalents to satisfy liquidity covenants related to its secured financing agreements. However, such amounts are not restricted from use in KREF 's current operations, and KREF does not present these cash and cash equivalents as restricted. As of December 31, 2019 and 2018 , KREF was required to maintain unrestricted cash and cash equivalents of at least $33.4 million and $15.2 million , respectively, to satisfy its liquidity covenants (Note 4 ). Commercial Mortgage Loans Held‑For‑Investment and Provision for Loan Losses — KREF recognizes its investments in commercial mortgage loans based on management's intent, and KREF 's ability, to hold those investments through their contractual maturity. Management classifies those loans that management does not intend to sell in the foreseeable future, and KREF is able to hold until maturity, as held-for-investment. Loans that are held‑for‑investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premiums and discounts, (ii) unamortized deferred nonrefundable fees and other direct loan origination costs, (iii) allowance for loan losses and (iv) charge-offs or write-downs of impaired loans. If a loan is determined to be impaired, management writes down the loan through a charge to the provision for loan losses. See "— Expense Recognition — Loan Impairment — Commercial Mortgage Loans, Held-For-Investment" for additional discussion regarding management’s determination for loan losses. KREF applies the interest method to amortize origination or acquisition premiums and discounts and deferred nonrefundable fees or other direct loan origination costs, or on a straight line basis when it approximates the interest method. Loans for which management elects the fair value option at the time of origination, or acquisition, are carried at fair value on a recurring basis (Note 3 ). Commercial Mortgage Loans Held‑For‑Sale — Loans that KREF originates, or acquires, which KREF is unable to hold, or management intends to sell or otherwise dispose of, in the foreseeable future are classified as held‑for‑sale and are carried at the lower of amortized cost or fair value. Commercial Mortgage-Backed and Commercial Real Estate Collateralized Loan Obligation Securities — From time to time, KREF may acquire certain CMBS and CRE CLO securities primarily for cash management purposes, and also for investment purposes. The Company designates such CMBS and CRE CLO securities as available-for-sale (“CRE AFS Securities”) on the acquisition date. Additionally, CMBS and CRE CLO securities that are not classified as held-to-maturity and which KREF does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are also designated as available-for-sale and are carried at fair value. KREF ’s recognition of interest income from its CRE AFS Securities, including its amortization of premium and discount, follows KREF ’s revenue recognition policy as described under “Income Recognition” below. Available-for-sale securities are carried at fair value, with changes in fair value recognized in Other Comprehensive Income. KREF uses a specific identification method when determining the cost of a security sold and the amount of unrealized gain or loss reclassified from Accumulated Other Comprehensive Income (Loss) into earnings. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the Consolidated Statements of Income and Comprehensive Income. The Company acquired $94.0 million of investment grade CRE AFS Securities in October 2019, which were subsequently sold as of December 31, 2019 for an immaterial gain. Secured Financing Agreements — KREF 's secured financing agreements, including uncommitted repurchase facilities, Term Lending Agreement, Asset Specific Financings and Term Loan Financings, are treated as floating-rate collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs (Note 4 ). Included within KREF 's secured financing agreements is KREF 's corporate revolving credit facility ("Revolver"), which is full recourse to certain guarantor wholly-owned subsidiaries of KREF . Convertible Notes, Net — KREF accounts for its convertible debt with a cash conversion feature in accordance with ASC 470-20 “Debt with Conversion and Other Options” which requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. KREF measured the estimated fair value of the debt component of the 6.125% convertible senior notes due May 15, 2023 (“Convertible Notes”) as of the issuance date based on KREF ’s nonconvertible debt borrowing rate. The equity component of the Convertible Notes is reflected within additional paid-in capital on the Consolidated Balance Sheets, and the resulting debt discount is amortized over the period during which such Convertible Notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense using the interest method, or on a straight line basis when it approximates the interest method. The additional non-cash interest expense attributable to such convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period (Note 6 ). Loan Participations Sold, Net — In connection with its investments in CRE loans, KREF finances certain investments through the syndication of non-recourse, or limited-recourse, loan participation to unaffiliated third parties. KREF ’s presentation of the senior loan and related financing involved in the syndication depends upon whether GAAP recognized the transaction as a sale, though such differences in presentation do not generally impact KREF ’s net stockholders’ equity or net income aside from timing differences in the recognition of certain transaction costs. To the extent that GAAP recognizes a sale resulting from the syndication, KREF derecognizes the participation in the senior/whole loan that KREF sold and continues to carry the retained portion of the loan as an investment. While KREF does not generally expect to recognize a material gain or loss on these sales, KREF would realize a gain or loss in an amount equal to the difference between the net proceeds received from the third party purchaser and its carrying value of the loan participation that KREF sold at time of sale. Furthermore, KREF recognizes interest income only on the portion of the loan that it retains as a result of the sale. To the extent that GAAP does not recognize a sale resulting from the syndication, KREF does not derecognize the participation in the senior/whole loan that it sold. Instead, KREF recognizes a loan participation sold liability in an amount equal to the principal of the loan participation syndicated less any unamortized discounts or financing costs resulting from the syndication. KREF continues to recognize interest income on the entire senior loan, including the interest attributable to the loan participation sold, as well as interest expense on the loan participation sold liability (Note 7 ). Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities — As of December 31, 2019 , other assets primarily included $2.4 million of deferred financing costs related to KREF 's Revolver (Note 4 ). As of December 31, 2018 , other assets included $1.4 million of deferred financing costs related to KREF 's Revolver and $1.3 million of collateralized loan obligations interest receivable on collateral assets held by a third-party servicer. As of December 31, 2019 , accounts payable, accrued expenses and other liabi

Commercial Mortgage Loans

Commercial Mortgage Loans12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Commercial Mortgage LoansCommercial Mortgage Loans The following table summarizes KREF 's investments in commercial mortgage loans as of December 31, 2019 and 2018 : Weighted Average Loan Type Outstanding Face Amount Carrying Value Loan Count Floating Rate Loan % (A) Coupon (A) Life (Years) (B) December 31, 2019 Loans held-for-investment Senior loans (C) $ 4,919,298 $ 4,890,408 37 100.0 % 5.0 % 4.1 Mezzanine loans 41,400 40,634 2 86.7 9.6 4.6 $ 4,960,698 $ 4,931,042 39 99.9 % 5.1 % 4.1 December 31, 2018 Loans held-for-investment Senior loans (C) $ 3,970,856 $ 3,946,086 33 100.0 % 6.0 % 3.7 Mezzanine loans 55,857 55,734 8 53.0 12.0 4.1 $ 4,026,713 $ 4,001,820 41 99.3 % 6.0 % 3.7 (A) Average weighted by outstanding face amount of loan. Weighted average coupon assumes the greater of applicable one-month LIBOR rates of 1.76% and 2.50% as of December 31, 2019 and 2018 , respectively, or the applicable contractual LIBOR floor. (B) The weighted average life of each loan is based on the expected timing of the receipt of contractual principal repayments assuming all extension options are exercised by the borrower. (C) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. Also, includes loan participations sold with a face amount of $65.0 million and $85.9 million , and a carrying value of $65.0 million and $85.6 million as of December 31, 2019 and 2018 , respectively. Includes CLO loan participations of $1.0 billion as of December 31, 2019 and 2018 , respectively. Activity — For the years ended December 31, 2019 and 2018 , the loan portfolio activity was as follows: Held-for-Investment Held-for-Sale Total Balance at December 31, 2017 $ 1,888,510 $ — $ 1,888,510 Purchases and originations, net (A) 2,544,565 — 2,544,565 Proceeds from principal repayments (441,779 ) — (441,779 ) Accretion of loan discount and other amortization, net (C) 10,524 — 10,524 Balance at December 31, 2018 $ 4,001,820 $ — $ 4,001,820 Purchases and originations, net (A) 2,865,608 — 2,865,608 Proceeds from sales and principal repayments (B) (1,956,611 ) — (1,956,611 ) Accretion of loan discount and other amortization, net (C) 20,225 — 20,225 Balance at December 31, 2019 $ 4,931,042 $ — $ 4,931,042 (A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes $142.8 million in net proceeds from non-recourse sale of senior interests and $65.0 million in proceeds from pari passu loan syndication. (C) Includes accretion of applicable discounts, certain fees and deferred loan origination costs. As of December 31, 2019 and 2018 , there was $29.7 million and $24.9 million , respectively, of unamortized deferred loan fees and discounts included in commercial mortgage loans, held-for-investment, net in the Consolidated Balance Sheets. KREF recognized prepayment fee income and net accelerated fees income of $0.9 million and $4.7 million , respectively, during the year ended December 31, 2019 . Loan Risk Ratings — As further described in Note 2 , our Manager evaluates KREF 's commercial mortgage loan portfolio on a quarterly basis. In conjunction with the quarterly commercial mortgage loan portfolio review, KREF 's Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors. Loans are rated “1” (very low risk) through “5” Impaired/Loss Likely), which ratings are defined in Note 2 . The following table allocates the principal balance and net book value of the loan portfolio based on KREF 's internal risk ratings: December 31, 2019 December 31, 2018 Risk Rating Number of Loans Net Book Value Total Loan Exposure (A) Total Loan Exposure % Risk Rating Number of Loans Net Book Value Total Loan Exposure (A) Total Loan Exposure % 1 1 $ 85,730 $ 86,000 1.7 % 1 — $ — $ — — % 2 5 450,827 451,858 9.0 2 8 466,742 468,860 11.5 3 33 4,394,485 4,501,440 89.3 3 33 3,535,078 3,625,008 88.5 4 — — — — 4 — — — — 5 — — — — 5 — — — — 39 $ 4,931,042 $ 5,039,298 100.0 % 41 $ 4,001,820 $ 4,093,868 100.0 % (A) In certain instances, KREF finances its loans through the non-recourse sale of a senior interest that is not included in the consolidated financial statements. Total loan exposure includes the entire loan KREF originated and financed, including $143.6 million and $67.2 million of such non-consolidated interests as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 , the average risk rating of KREF 's portfolio was 2.9 (Average Risk) , weighted by total loan exposure, with 100.0% of commercial mortgage loans held-for-investment, rated 3 (Average Risk) or better by KREF 's Manager, as compared to 2.9 (Average Risk) as of December 31, 2018 . Concentration of Credit Risk — The following tables present the geographies and property types of collateral underlying KREF 's commercial mortgage loans as a percentage of the loans' face amounts: December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Geography Collateral Property Type New York 22.5 % 30.3 % Multifamily 58.3 % 41.0 % Illinois 9.7 — Office 25.5 44.6 Pennsylvania 9.2 5.4 Retail 4.7 3.1 Virginia 8.2 — Hospitality 4.4 3.7 Massachusetts 7.7 4.9 Condo (Residential) 3.0 4.3 California 6.9 9.7 Industrial 2.8 3.3 Florida 6.9 11.3 Student Housing 1.3 — Washington 6.9 8.3 Total 100.0 % 100.0 % Georgia 4.3 11.1 Minnesota 3.7 5.7 New Jersey 3.1 3.7 Colorado 2.8 2.4 Oregon 2.5 3.1 Texas 2.5 0.1 Alabama 1.2 — Washington D.C. 0.9 2.4 Tennessee — 1.3 Other U.S. 1.0 0.3 Total 100.0 % 100.0 % Description/Location Prior Liens (A) Face Amount Carrying Amount Interest Rate (B) Payment Terms (C) Maturity Date (D) Senior Loans (E) Senior Loan 1, Brooklyn, NY N/A 358.3 356.0 L + 2.7 I/O 6/7/2024 Senior Loan 2, Arlington, VA N/A 328.5 326.9 L + 2.5 I/O 7/7/2024 Senior Loan 3, Chicago, IL N/A 318.7 316.3 L + 2.8 I/O 7/5/2026 Senior Loan 4, Boston, MA N/A 204.0 203.1 L + 2.4 I/O 6/7/2023 Senior Loan 5, Various N/A 193.7 192.0 L + 3.5 I/O 6/7/2024 Senior Loan 6, New York, NY N/A 187.5 185.9 L + 3.6 I/O 1/7/2024 Senior Loan 7, Minneapolis, MN N/A 185.1 184.7 L + 3.8 I/O 12/5/2022 Senior Loan 8, Seattle, WA N/A 168.0 167.4 L + 3.8 I/O 10/7/2023 Senior Loan 9, Philadelphia, PA N/A 154.6 154.2 L + 2.5 I/O 7/7/2023 Senior Loan 10, Philadelphia, PA N/A 152.0 150.9 L + 2.6 I/O 5/7/2024 Senior Loan 11, North Bergen, NJ N/A 150.0 149.7 L + 3.2 I/O 11/5/2022 Senior Loan 12, Irvine, CA N/A 149.0 147.5 L + 2.9 I/O 11/7/2024 Senior Loan 13, New York, NY N/A 148.4 148.2 L + 4.7 I/O 10/5/2021 Senior Loan 14, New York, NY N/A 148.0 147.0 L + 2.6 I/O 12/7/2023 Senior Loan 15, Denver, CO N/A 141.1 139.5 L + 2.8 I/O 9/7/2024 Senior Loan 16, Fort Lauderdale, FL N/A 140.0 139.5 L + 2.9 I/O 12/7/2023 Senior Loan 17, Boston, MA N/A 137.0 136.7 L + 2.7 I/O 4/7/2024 Senior Loan 18, West Palm Beach, FL N/A 131.5 130.7 L + 2.9 I/O 11/7/2023 Senior Loan 19, Chicago, IL N/A 125.1 123.6 L + 3.3 I/O 8/7/2024 Senior Loan 20, Portland, OR N/A 125.0 124.7 L + 5.5 I/O 11/5/2020 Senior Loan 21, San Diego, CA N/A 102.5 102.1 L + 3.4 I/O 12/7/2023 Senior Loan 22, Various N/A 102.2 101.6 L + 2.6 I/O 8/12/2025 Senior Loan 23, Seattle, WA N/A 92.3 92.1 L + 2.6 I/O 9/7/2023 Senior Loan 24, Los Angeles, CA N/A 90.0 89.2 L + 2.8 I/O 1/7/2023 Senior Loan 25, New York, NY N/A 86.0 85.7 L + 2.6 I/O 4/7/2023 Senior Loan 26, Seattle, WA N/A 80.7 80.6 L + 3.6 I/O 4/7/2023 Senior Loan 27, Philadelphia, PA N/A 77.0 76.6 L + 2.7 I/O 11/7/2023 Senior Loan 28, Brooklyn, NY N/A 76.0 75.5 L + 2.9 I/O 2/7/2024 Senior Loan 29, Atlanta, GA N/A 72.1 71.8 L + 2.7 I/O 8/7/2023 Senior Loan 30, Orlando, FL N/A 72.0 71.9 L + 2.8 I/O 4/7/2023 Senior Loan 31, Herndon, VA N/A 71.9 71.3 L + 2.5 I/O 1/7/2025 Senior Loan 32, State College, PA N/A 69.2 68.6 L + 2.7 I/O 11/7/2024 Senior Loan 33, Austin, TX N/A 67.5 66.9 L + 2.5 I/O 9/12/2024 Senior Loan 34, Queens, NY N/A 66.3 66.2 L + 3.0 I/O 8/5/2022 Senior Loan 35, Atlanta, GA N/A 61.5 61.0 L + 3.0 I/O 9/7/2024 Senior Loan 36, Washington, D.C. N/A 44.7 43.1 L + 3.4 I/O 1/7/2025 Senior Loan 37, Queens, NY N/A 42.0 41.9 L + 2.8 I/O 11/7/2023 Mezzanine Loans Mezzanine Loan 1, Various N/A 5.5 5.5 11.0 I/O 7/6/2025 Mezzanine Loan 2, Chicago, IL N/A 35.9 35.1 L + 7.1 I/O 6/7/2024 (A) Represents third-party priority liens. Third-party portions of pari-passu participations are not considered priority liens. Additionally, excludes the outstanding debt on third-party joint ventures of underlying borrowers. (B) L = one-month LIBOR rate. (C) I/O = interest only until final maturity unless otherwise noted (D) Maturity date assumes all extension options are exercised, if applicable. (E) Includes senior loans and pari passu participations in senior loans. May include accommodation mezzanine loans in connection with the senior mortgage financing For the activity within our loan portfolio during the year ended December 31, 2019 , refer to Note 3

Debt Obligations

Debt Obligations12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]
Debt ObligationsDebt Obligations The following table summarizes KREF 's secured master repurchase agreements and other financing arrangements in place as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Facility Collateral Facility Month Issued Outstanding Face Amount Carrying Value (A) Maximum Facility Size Final Stated Maturity Weighted Average Funding Cost (B) Weighted Average Life (Years) (B) Outstanding Face Amount Amortized Cost Basis Carrying Value Weighted Average Life (Years) (C) Carrying Value (A) Master Repurchase Agreements (D) Wells Fargo (E) Oct 2015 $ 468,452 $ 464,933 $ 1,000,000 Nov 2023 3.6 % 2.6 $ 649,603 $ 644,903 $ 644,903 4.1 $ 508,523 Morgan Stanley (F) Dec 2016 394,499 392,279 600,000 Dec 2022 3.9 2.5 533,003 529,124 529,124 5.0 300,081 Goldman Sachs (G) Sep 2016 225,266 223,867 400,000 Oct 2020 4.0 0.8 316,426 315,902 315,902 2.7 340,671 Term Lending Agreement KREF Lending V (H) Jun 2019 870,051 868,816 900,000 Jun 2026 3.8 2.1 1,079,625 1,071,094 1,071,094 4.4 — Asset Specific Financing BMO Facility (I) Aug 2018 142,268 141,120 300,000 n.a 3.8 3.8 208,574 207,420 207,420 4.0 58,815 Revolving Credit Agreement Revolver (J) Dec 2018 — — 250,000 Dec 2023 1.0 3.9 n.a n.a n.a n.a — Total / Weighted Average $ 2,100,536 $ 2,091,015 $ 3,450,000 3.8 % 2.2 $ 1,208,090 (A) Net of $9.5 million and $9.2 million unamortized debt issuance costs as of December 31, 2019 and 2018 , respectively. (B) Average weighted by the outstanding face amount of borrowings inclusive of deferred financing costs. (C) Average based on the fully extended loan maturity, weighted by the outstanding face amount of the collateral. (D) Borrowings under these repurchase agreements are collateralized by senior loans, held-for-investment, and bear interest equal to the sum of (i) a floating rate index, equal to one-month LIBOR, or an index approximating LIBOR, and (ii) a margin, based on the collateral. As of December 31, 2019 and December 31, 2018 , the percentage of the outstanding face amount of the collateral sold and not borrowed under these repurchase agreements, or average "haircut" weighted by outstanding face amount of collateral, was 27.4% and 25.8% , respectively (or 25.7% and 23.4% , respectively, if KREF had borrowed the maximum amount approved by its repurchase agreement counterparties as of such dates). (E) The current stated maturity date is November 2021 , which does not reflect two , twelve -month facility term extensions available to KREF , which is contingent upon certain covenants and thresholds. As of December 31, 2019 , the collateral-based margin was between 1.25% and 2.15% . (F) In March 2019, the Morgan Stanley repurchase agreement was amended to extend the current stated maturity of the facility to December 2021 , which does not reflect one , twelve -month facility term extension available to KREF , which is contingent upon certain covenants and thresholds. In June 2019, the Morgan Stanley repurchase agreement was amended to increase the facility amount to $750.0 million . In December 2019, the Morgan Stanley repurchase agreement was amended to decrease the facility amount to $600.0 million , with a KREF option to increase the facility amount to $750.0 million . As of December 31, 2019 , the collateral-based margin was between 1.75% and 1.85% . (G) As of December 31, 2019 , the collateral-based margin was between 1.85% and 2.00% . (H) In June 2019, KREF Lending V LLC, a wholly-owned indirect subsidiary of KREF , entered into a Master Repurchase and Securities Contract Agreement (the "Term Lending Agreement") with Morgan Stanley Mortgage Capital Holdings LLC ("Administrative Agent"), as administrative agent on behalf of Morgan Stanley Bank, N.A. ("Initial Buyer"), which provides for current and future financings of up to $900.0 million on a non-mark-to-market basis. The Initial Buyer subsequently syndicated a portion of the facility to multiple financial institutions. As of December 31, 2019 , the Initial Buyer held 48.9% of the total commitment under the facility. Borrowings under the Term Lending Agreement are collateralized by certain loans, held for investment, and bear interest equal to one-month LIBOR, plus a 1.9% margin. The Term Lending Agreement has an initial maturity of June 2021, subject to five one -year extension options, which may be exercised by KREF upon the satisfaction of certain customary conditions and thresholds. (I) In August 2018, KREF entered into a $200.0 million loan financing facility with BMO Harris Bank ("BMO Facility"). The facility provides asset-based financing on a non-mark to market basis with matched-term up to five years with partial recourse to KREF . During May 2019, KREF increased the borrowing capacity to $300.0 million . As of December 31, 2019 , the collateral-based margin was between 1.50% and 1.70% . (J) In December 2018, KREF entered into a $100.0 million corporate revolving credit facility (“Revolver”) administered by Morgan Stanley Senior Funding, Inc. Additional lenders were added in 2019, further increasing the borrowing capacity under the Revolver to $250.0 million . The current stated maturity of the facility is December 2023. Borrowings under the facility bear interest at a per annum rate equal to the sum of (i) a floating rate index and (ii) a fixed margin. Borrowings under this facility are full recourse to certain guarantor wholly-owned subsidiaries of KREF . As of December 31, 2019 , the carrying value excluded $2.4 million unamortized debt issuance costs presented as " — Other assets" in KREF 's Consolidated Balance Sheets. The preceding table excludes loan participations sold (Note 7 ). As of December 31, 2019 and 2018 , KREF had outstanding repurchase agreements and a Term Lending Agreement 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 agreements 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 plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability, adjusted for accrued interest. 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, 2019 and 2018 : Outstanding Face Amount Net Counterparty Exposure Percent of Stockholders' Equity Weighted Average Life (Years) (A) December 31, 2019 Wells Fargo $ 468,452 $ 178,827 15.9 % 2.6 Morgan Stanley 394,499 136,764 12.2 2.5 Term Lending Agreement (B) 870,051 203,800 18.2 2.1 Total / Weighted Average $ 1,733,002 $ 519,391 46.3 % 2.4 December 31, 2018 Wells Fargo $ 512,298 $ 223,780 19.8 % 1.5 Morgan Stanley 302,595 145,066 12.8 1.2 Goldman Sachs 342,368 122,461 10.8 1.4 Total / Weighted Average $ 1,157,261 $ 491,307 43.7 % 1.4 (A) Average weighted by the outstanding face amount of borrowings under the secured financing agreement. (B) There were multiple counterparties to the Term Lending Agreement as of December 31, 2019 . Morgan Stanley Bank, N.A. represented 8.9% of the net counterparty exposure as a percent of stockholders' equity as of December 31, 2019 . 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. Term Loan Financing In April 2018, KREF , through its consolidated subsidiaries, entered into a term loan financing agreement (“Term Loan Facility”) with third party lenders for an initial borrowing capacity of $200.0 million that was subsequently increased to $1.0 billion in October 2018. The facility provides asset-based financing on a non-mark-to-market basis with matched term up to five years and is non-recourse to KREF . Borrowings under the facility are collateralized by senior loans, held-for-investment, and bear interest equal to one-month LIBOR plus a margin. As of December 31, 2019 , the weighted average margin and interest rate on the facility were 1.5% and 3.2% , respectively. As of December 31, 2018 , the weighted average margin and interest rate on the facility were 1.4% and 3.9% , respectively. The following tables summarize our borrowings under the Term Loan Facility: December 31, 2019 Term Loan Facility Count Outstanding Face Amount Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 12 $ 1,003,995 $ 997,081 L + 3.0% n.a. November 2023 Financing provided n.a. 798,180 793,872 L + 1.9% n.a. November 2023 December 31, 2018 Term Loan Facility Count Outstanding Face Amount Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 10 $ 941,905 $ 933,179 L + 3.1% n.a. August 2023 Financing provided 1 748,414 742,959 L + 1.8% n.a. August 2023 (A) Floating rate loans and related liabilities are indexed to one-month LIBOR. KREF's net interest rate exposure is in direct proportion to its interest in the net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination/financing costs. (B) Financing under the Term Loan Facility is non-recourse to KREF. (C) The weighted-average term is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower. Activity — For the years ended December 31, 2019 and 2018 , 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, 2017 $ 964,800 Principal borrowings 2,311,140 Principal repayments/sales/deconsolidation (1,314,812 ) Deferred debt issuance costs (15,324 ) Amortization of deferred debt issuance costs 5,245 Balance as of December 31, 2018 $ 1,951,049 Principal borrowings 3,217,859 Principal repayments/sales/deconsolidation (2,284,819 ) Deferred debt issuance costs (10,238 ) Amortization of deferred debt issuance costs 11,036 Balance as of December 31, 2019 $ 2,884,887 Maturities — KREF ’s secured financing agreements, term loan financing and other consolidated debt obligations in place as of December 31, 2019 had current contractual maturities as follows: Year Nonrecourse Recourse (A) Total 2020 $ 82,481 $ 695,267 $ 777,748 2021 458,045 — 458,045 2022 117,293 1,129,250 1,246,543 2023 80,325 128,569 208,894 2024 60,037 147,450 207,487 $ 798,181 $ 2,100,536 $ 2,898,717 (A) Except for the Revolver, which is full recourse, amounts borrowed subject to a maximum 25.0% recourse limit. The Revolver expires in December 2023. 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 an interest income to interest expense ratio covenant ( 1.5 to 1.0); a minimum 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 $880.2 million depending upon the facility); a cash liquidity covenant (the greater of $10.0 million or 5.0% of KREF 's recourse indebtedness); and a total indebtedness covenant ( 75.0% of KREF 's total assets, net of VIE liabilities and non-recourse indebtedness). As of December 31, 2019 and 2018 , KREF was in compliance with its financial debt covenants.

Collateralized Loan Obligation

Collateralized Loan Obligation12 Months Ended
Dec. 31, 2019
Transfers and Servicing [Abstract]
Collateralized Loan ObligationCollateralized Loan Obligation In November 2018, KREF financed a pool of loan participations from our existing loan portfolio through a managed CLO. KREF 2018-FL1 provides KREF with match-term financing on a non-mark-to-market and non-recourse basis. KREF 2018-FL1 has a two -year reinvestment feature that allows principal proceeds of the collateral assets to be reinvested in qualifying replacement assets, subject to the satisfaction of certain conditions set forth in the indenture. The following tables outline KREF 2018-FL1 collateral assets and respective borrowing as of December 31, 2019 and December 31, 2018: December 31, 2019 Collateralized Loan Obligation Count Face Amount Carrying Value Wtd. Avg. (B) Wtd. Avg. Term (C) Collateral assets (A) 22 $ 1,000,000 $ 1,000,000 L + 2.8% November 2023 Financing provided 1 810,000 803,376 L + 1.8% June 2036 December 31, 2018 Collateralized Loan Obligation Count Face Amount Carrying Value Wtd. Avg. (B) Wtd. Avg. Term (C) Collateral assets (A) 24 $ 1,000,000 $ 1,000,000 L + 3.5% December 2022 Financing provided 1 810,000 800,346 L + 1.8% June 2036 (A) Collateral assets represent 20.2% and 24.8% of the face amount of KREF 's commercial mortgage loans as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 and 2018 , 100% of KREF loans financed through the CLO are floating rate loans. (B) Yield on collateral assets is based on cash coupon. Financing cost includes amortization of deferred financing costs incurred in connection with the CLO. (C) Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CLO notes are dependent on timing of related collateral loan asset repayments post reinvestment period. The term of the CLO notes represents the rated final distribution date. The following table presents the KREF 2018-FL1 Assets and Liabilities included in KREF ’s Consolidated Balance Sheets: Assets December 31, 2019 December 31, 2018 Commercial mortgage loans, held-for-investment, net 1,000,000 1,000,000 Accrued interest receivable 3,280 4,263 Other assets 5 1,295 Total $ 1,003,285 $ 1,005,558 Liabilities Collateralized loan obligation, net 803,376 800,346 Accrued interest payable 1,254 3,341 Accounts payable, accrued expenses and other liabilities 72 314 Total $ 804,702 $ 804,001 The following table presents the components of net interest income of KREF 2018-FL1 included in KREF ’s Consolidated Statements of Income: Year Ended December 31, 2019 2018 Net Interest Income Interest income $ 53,896 $ 5,553 Interest expense (A) 38,427 3,640 Net interest income $ 15,469 $ 1,913 (A) Includes $3.3 million and $0.3 million of deferred financing costs amortization for the years ended December 31, 2019 and 2018 , respectively. KREF 's unamortized deferred financing costs related to KREF 2018-FL1 were $6.6 million and $9.7 million , as of December 31, 2019 and 2018 , respectively.

Convertible Notes, Net

Convertible Notes, Net12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]
Convertible Notes, NetConvertible Notes, Net In May 2018, the Company issued $143.75 million of Convertible Notes, which bear interest at a rate of 6.125% per year, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2018. The Convertible Notes mature on May 15, 2023, unless earlier repurchased or converted. The Convertible Notes’ issuance costs of $5.1 million are amortized through interest expense over the life of the Convertible Notes. The initial conversion rate for the Convertible Notes is 43.9386 shares of KREF’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $22.76 per share of KREF’s common stock, which represents a 10% conversion premium over the last reported sale price of $20.69 per share of KREF’s common stock on the New York Stock Exchange on May 15, 2018. The conversion rate is subject to adjustment under certain circumstances. In addition, upon a make-whole fundamental change as defined within the indenture governing the Convertible Notes, the Company will, under certain circumstances, increase the applicable conversion rate for a holder that elects to convert its Notes in connection with such make-whole fundamental change. Prior to February 15, 2023, the Convertible Notes will be convertible only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. KREF will satisfy any conversion elections by paying or delivering, as the case may be, cash, shares of KREF’s common stock or a combination of cash and shares of KREF’s common stock, at its election. KREF has the intent and ability to settle the Convertible Notes in cash and, as a result, the Convertible Notes did not have an impact on our diluted earnings per share. Upon the issuance of the Convertible Notes, KREF recorded a $1.8 million discount based on the implied value of the conversion option and an assumed effective interest rate of 6.50% , as well as $5.1 million of initial issuance costs, inclusive of the $0.8 million paid to an affiliate of KREF. Inclusive of the amortization of this discount and the issuance costs, KREF’s total cost of the May 2018 Convertible Notes issuance is 6.92% per annum. The following table details our interest expense related to the Convertible Notes: Year Ended December 31, 2019 2018 Cash coupon $ 8,804 $ 5,454 Discount and issuance cost amortization 1,386 861 Total interest expense 10,190 6,315 The following table details the net book value of our Convertible Notes on our Consolidated Balance Sheets: December 31, 2019 December 31, 2018 Face value $ 143,750 $ 143,750 Deferred financing costs (3,460 ) (4,486 ) Unamortized discount (1,215 ) (1,576 ) Net book value $ 139,075 $ 137,688 Accrued interest payable for the Convertible Notes was $1.1 million and $1.1 million as of December 31, 2019 and 2018 , respectively. Refer to Note 2

Loan Participations Sold

Loan Participations Sold12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Loan Participations SoldLoan Participations Sold KREF finances certain loan investments through the syndication of a non-recourse, or limited-recourse, loan participation to unaffiliated third parties. In January 2019, KREF derecognized the loan participation sold held on its Consolidated Balance Sheet as of December 31, 2018 , as the underlying loan was fully repaid. In May 2019, KREF syndicated a $65.0 million pari passu participation in one of its loan investments with a principal balance of $286.2 million to an unaffiliated third party, at par value. Such syndication did not qualify for "sale" accounting under GAAP and therefore was consolidated in KREF's consolidated financial statements. In November 2019, KREF derecognized such $65.0 million pari passu participation sold held on its Consolidated Balance Sheet, as the underlying loan was fully repaid. In October 2019, KREF syndicated a $65.0 million vertical participation in one of its loan investments with a principal balance of $328.5 million to an unaffiliated third party, at par value. Such syndication did not qualify for "sale" accounting under GAAP and therefore is consolidated in KREF's consolidated financial statements as of December 31, 2019 . The following tables summarize the loan participation sold liabilities that KREF recognized since the corresponding syndications of the respective loan participations were not treated as "sales" as of December 31, 2019 and 2018 : December 31, 2019 Loan Participations Sold Count Principal Balance Carrying Value Yield/Cost (A) Guarantee Term Total loan 1 $ 328,500 $ 326,881 L + 2.5% n.a. July 2024 Vertical loan participation (B) 1 65,000 64,966 L + 2.5% n.a. July 2024 December 31, 2018 Loan Participations Sold Count Principal Balance Carrying Value Yield/Cost (A) Guarantee (C) Term Total loan 1 $ 99,757 $ 99,368 L + 3.0% n.a. September 2022 Senior loan participation (B) 1 85,880 85,465 L + 1.8% n.a. September 2022 (A) Floating rate loans and related liabilities are indexed to one-month LIBOR. KREF 's net interest rate exposure is in direct proportion to its interest in the net assets of the senior loan. (B) During the years ended December 31, 2019 and 2018 , KREF recorded $2.8 million and $3.3 million of interest income and $2.8 million and $3.3 million of interest expense, respectively, related to the total loan participations sold. (C) As of December 31, 2018 , the loan participation sold was subject to partial recourse of $10.0 million , which amount may be reduced to zero upon achievement of certain property performance metrics. Such loan was fully paid off in January 2019.

Variable Interest Entities

Variable Interest Entities12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest EntitiesVariable Interest Entities CMBS — KREF beneficially owned and directly held CMBS with an unpaid principal balance and fair value of $34.9 million and $12.5 million , respectively, as of December 31, 2018. During the three months ended September 30, 2019, KREF sold its remaining directly held CMBS investments, comprised of (i) a controlling beneficial interest in a CMBS trust held and (ii) interest-only bonds, for $9.8 million , resulting in a net loss of $2.7 million , which is included in "Other Income — (Loss) gain on sale of investments" in the accompanying Consolidated Statements of Income. Consequently, KREF deconsolidated the respective CMBS trust upon sale and as of December 31, 2019 . The initial cost basis of the CMBS trusts sold during the three months ended September 30, 2019 was $10.0 million and the fair value as of December 31, 2018 was $12.5 million . KREF was required to consolidate each of the CMBS trusts acquired from the date of acquisition through the date of sale since KREF retained the controlling class and management determined KREF was the primary beneficiary of those trusts. Further, management irrevocably elected the fair value option for each of the trusts and carried the fair values of the trust's assets and liabilities at fair value in its Consolidated Balance Sheets; recognized changes in the trust's net assets, including fair value adjustments and net interest earned, in its Consolidated Statements of Income; and recorded cash interest received from the trusts, net of cash interest paid to CMBS not beneficially owned by KREF , as operating cash flows. The following table presents the KREF recognized Trust's Assets and Liabilities: December 31, 2019 December 31, 2018 Trusts' Assets Commercial mortgage loans held in variable interest entities, at fair value (A) $ — $ 1,092,986 Accrued interest receivable — 4,005 Trusts' Liabilities Variable interest entity liabilities, at fair value (B) — 1,080,255 Accrued interest payable — 3,818 (A) Included accrued interest receivable. (B) Included accrued interest payable. The following table presents "Other Income — Change in net assets related to CMBS consolidated variable interest entities": Year Ended December 31, 2019 2018 2017 Net interest earned $ 1,665 $ 5,152 12,470 Unrealized gain (loss) — (2,564 ) 3,375 Change in net assets related to CMBS consolidated variable interest entities $ 1,665 $ 2,588 $ 15,845 See Note 13 for additional information regarding the valuation of financial assets and liabilities held by KREF 's consolidated VIE s. Concentration of Credit Risk — The following tables present the geographies and property types of collateral underlying the CMBS trusts consolidated by KREF , as a percentage of the collateral unpaid principal balance and weighted by the fair value of the CMBS tranches beneficially owned by KREF 's stockholders: December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Geography Collateral Property Type California — % 33.4 % Retail — % 28.3 % Texas — 11.1 Office — 27.4 New York — 8.3 Hospitality — 13.0 Missouri — 5.4 Multifamily — 9.9 Pennsylvania — 5.1 Industrial/ Flex — 9.6 Florida — 4.2 Self Storage — 5.7 Massachusetts — 3.6 Mixed Use — 3.9 Illinois — 2.7 Mobile Home — 1.7 Georgia — 2.6 Other — 0.5 New Hampshire — 2.4 — % 100.0 % Delaware — 1.9 Virginia — 1.7 Other U.S. — 17.6 Total — % 100.0 % Collateralized Loan Obligation — KREF is the primary beneficiary of a collateralized loan obligation consolidated as a VIE that closed in November 2018 (Note 5 ). Management considers the CLO Issuers, wholly-owned subsidiaries of KREF , to be the primary beneficiary as the CLO Issuers have the ability to control the most significant activities of the CLO, the obligation to absorb losses, and the right to receive benefits of the CLO through the subordinate interests the CLO Issuers own. Equity method investments — KREF holds two investments in entities that it records using the equity method. As of December 31, 2019 , KREF held a 3.5% interest in RECOP I , an unconsolidated VIE of which KREF is not the primary beneficiary, at its fair value of $37.2 million . The aggregator vehicle in which KREF invests is controlled and advised by affiliates of the Manager . RECOP I intends to primarily acquire junior tranches of CMBS newly issued by third parties but may also make purchases on the secondary market. KREF will not pay any fees to RECOP I , but KREF bears its pro rata share of RECOP I 's expenses. KREF reported its share of the net asset value of RECOP I in its Consolidated Balance Sheets, presented as “ Equity method investments ” and its share of net income, presented as “ Income from equity method investments ” in the Consolidated Statements of Income. As of December 31, 2019 , the non-voting limited liability company interests issued by the Manager , a VIE , and held by a Taxable REIT Subsidiary (" TRS ") of KREF for the benefit of the holder of the SNVPS represented 4.7% of the Manager ’s outstanding limited liability company interests (Note 9 ). KREF reported its allocable percentage of the assets and liabilities of the Manager in its Consolidated Balance Sheets, presented as “ Equity method investments ” and its share of net income, presented as “ Income from equity method investments ” in the Consolidated Statements of Income.

Equity

Equity12 Months Ended
Dec. 31, 2019
Equity [Abstract]
EquityEquity Authorized Capital — On October 2, 2014, KREF 's board of directors authorized KREF to issue up to 350,000,000 shares of stock, at $0.01 par value per share, consisting of 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, subject to certain restrictions on transfer and ownership of shares. Restrictions placed on the transfer and ownership of shares relate to KREF 's REIT qualification requirements. Common Stock — As further described below, since December 2015, KREF issued the following shares of common stock: Pricing Date Shares Issued Net Proceeds As of December 31, 2015 13,636,416 $ 272,728 February 2016 2,000,000 40,000 May 2016 3,000,138 57,130 June 2016 (A) 21,838 — August 2016 5,500,000 109,875 As of December 31, 2016 24,158,392 479,733 February 2017 7,386,208 147,662 April 2017 10,379,738 207,595 May 2017- Initial Public Offering 11,787,500 219,356 As of December 31, 2017 53,711,838 1,054,346 August 2018 5,000,000 98,326 November 2018 500,000 9,351 As of December 31, 2018 59,211,838 1,162,023 (A) KREF did not receive any proceeds with respect to 21,838 shares of common stock issued to certain current and former employees of, and non-employee consultants to, KKR and third-party investors in the private placement completed in March 2016, in accordance with KREF 's Stockholders Agreement dated as of March 29, 2016 . KREF did not raise additional capital for the year ended December 31, 2019. In March 2016, KREF obtained $277.4 million of capital commitments in connection with the completion of a private placement priced at $20.00 per share. Of these capital commitments, $190.1 million consisted of approximately $178.4 million from third parties and approximately $11.8 million from certain current and former employees of, and non-employee consultants to, KKR . KKR committed a total of $400.0 million and third parties committed a total of $248.0 million subsequent to the private placement completion. In connection with the completion of the private placement, KREF formed an advisory board consisting of certain third-party investors. The advisory board possessed certain protective approval rights over KREF 's activities outside its ordinary course of business, including certain business combinations and equity issuances. The advisory board dissolved upon KREF 's public listing on May 5, 2017. In February 2017 and April 2017, KREF called a portion of capital from investors in the private placements closed during the year ended December 31, 2016 and issued 7,386,208 and 10,379,738 common shares, at $20.00 per share, for net proceeds of $147.7 million and $207.6 million , respectively. In connection with the capital commitments described above, third-party investors and certain current and former employees of, and non-employee consultants to, KKR were allocated non-voting limited liability company interests of the Manager . For each $100.0 million shares of KREF ’s common stock acquired by investors through the private placement, the investors were allocated non-voting limited liability company interests, representing 6.67% of the Manager ’s then-outstanding total limited liability company interests. Each investor was allocated its pro rata share of the non-voting limited liability company interests of the Manager based on the investor’s shares of KREF ’s common stock. In May 2017, KREF completed its initial public offering of 11,787,500 shares of its common stock at a price to the public of $20.50 per share, which included 1,537,500 shares of common stock issued in connection with the underwriters' exercise in full of their option to purchase additional shares. The value of KREF 's common stock prior to its listing on the New York Stock Exchange was based upon its equity value using a combination of net asset value (market) and discounted cash flow (income) approaches. In August 2018, KREF completed an underwritten public offering of 5,000,000 shares of its common stock at $19.90 per share, less applicable transaction costs, resulting in $98.3 million in net proceeds. In November 2018, KREF completed an underwritten offering of 4,500,000 shares of its common stock at $20.00 per share, consisting of 500,000 shares issued and sold by KREF and 4,000,000 shares sold by pre-initial public offering third-party investors, resulting in $9.4 million in net proceeds to KREF . As of December 31, 2019 and 2018 , KKR beneficially owned 22,008,616 shares of KREF 's common stock, of which 2,008,616 shares were held by KKR on behalf of a third-party investor (Note 1 ). During the years ended December 31, 2019 and 2018 , 103,175 and 34,259 shares of common stock were issued related to the vesting of restricted stock units. Upon any payment of shares as a result of restricted stock unit vesting, the related tax withholding obligation will generally be satisfied by KREF , reducing the number of shares to be delivered by a number of shares necessary to satisfy the related applicable tax withholding obligation. Refer to Note 10 for further detail. Of t he 59,211,838 comm on shares KREF issued, there were 57,486,583 common shares outstanding as of December 31, 2019 , which includes 137,434 net shares of common stock issued in connection with vested restricted stock units and is net of 1,862,689 common shares repurchased as of December 31, 2019 . Of the 59,211,838 common shares KREF issued, there were 57,596,217 common shares outstanding as of December 31, 2018 , which includes 34,259 net shares of common stock issued in connection with vested restricted stock units and is net of 1,649,880 common shares repurchased as of December 31, 2018 . Share Repurchase Program — In May 2018, KREF 's board of directors approved a $100.0 million share repurchase program, effective June 12, 2018, which was scheduled to expire on June 30, 2019. On June 14, 2019, KREF 's board of directors approved an extension of the program. The share repurchase program, as extended, permits us to repurchase up to $100.0 million in shares of KREF 's common stock during the period from July 1, 2019 through June 30, 2020. Of this total authorized amount, $50.0 million may be covered by a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act that provides for repurchases of our common stock when the market price per share of our common stock is below book value per share (calculated in accordance with GAAP as of the end of the most recent period for which financial statements are available), and the remaining $50.0 million may be used for repurchases in the open market, or pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, or in privately negotiated transactions, or otherwise. During the year ended December 31, 2019 , KREF repurchased 212,809 shares of common stock under the repurchase program at an average price per share of $19.25 for a total of $4.1 million . During the year ended December 31, 2018 , KREF repurchased 1,623,482 shares of common stock under the repurchase program at an average price per share of $19.30 for a total of $31.3 million . At the Market Stock Offering Program — On February 22, 2019, KREF entered into an equity distribution agreement with certain sales agents, pursuant to which KREF may sell, from time to time, up to an aggregate sales price of $100.0 million of its common stock pursuant to a continuous offering program (the “ATM”). Sales of KREF ’s common stock made pursuant to the ATM may be made in negotiated transactions or transactions that are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. The timing and amount of actual sales will depend on a variety of factors including market conditions, the trading price of KREF ’s common stock, KREF ’s capital needs, and KREF ’s determination of the appropriate sources of funding to meet such needs. KREF did not sell any shares of its common stock under the ATM during the year ended December 31, 2019 . Dividends — During the years ended December 31, 2019 and 2018, KREF 's board of directors declared the following dividends on shares of its common stock and special voting preferred stock: Amount Declaration Date Record Date Payment Date Per Share Total 2019 March 18, 2019 March 29, 2019 April 12, 2019 $ 0.43 $ 24,761 June 14, 2019 June 28, 2019 July 15, 2019 0.43 24,688 September 13, 2019 September 30, 2019 October 16, 2019 0.43 24,692 December 16, 2019 December 31, 2019 January 15, 2020 0.43 24,719 $ 98,860 2018 March 9, 2018 March 29, 2018 April 13, 2018 $ 0.40 $ 21,230 May 7, 2018 June 29, 2018 July 13, 2018 0.43 22,804 September 10, 2018 September 28, 2018 October 12, 2018 0.43 24,951 December 17, 2018 December 28, 2018 January 11, 2019 0.43 24,813 $ 93,798 Preferred Stock — On January 23, 2015, KREF issued 125 shares of Series A cumulative, non-voting preferred stock with a par value of $0.01 per share and a stated value of $1,000.00 per share ("Series A Preferred Stock ") that were senior to common stock. Holders of Series A Preferred Stock were entitled to cumulative distributions of 12.5% of the stated value per annum, payable semi-annually in arrears on or before June 30 and December 31 of each year, but were unable to convert Series A Preferred Stock into common stock or vote on matters brought to KREF 's stockholders. In May 2017, KREF redeemed all 125 issued and outstanding shares of Series A Preferred Stock for $0.1 million , representing the sum of $1,000.00 per share and all accrued and unpaid dividends. Special Voting Preferred Stock — In March 2016, KREF issued one share of special voting preferred stock to KKR Fund Holdings L.P. (" KKR Fund Holdings ") for $20.00 per share, which KKR Fund Holdings transferred to its subsidiary, KKR REFT Asset Holdings LLC. The holder of the special voting preferred stock has special voting rights related to the election of members to KREF 's board of directors until KKR and its affiliates cease to own at least 25.0% of KREF 's issued and outstanding common stock (of which 2,008,616 shares were held on behalf of a third-party investor). As of December 31, 2019 and 2018 , KKR and its affiliates beneficially owned 22,008,616 shares of KREF's common stock representing 38% of KREF’s issued and outstanding common stock. Special Non-Voting Preferred Stock — In connection with KREF 's existing investors’ subscription for shares of KREF 's common stock in the private placements prior to the initial public offering of KREF 's equity on May 5, 2017, those investors were also allocated a class of non-voting limited liability company interest in the Manager (" Non-Voting Manager Units "). In February 2017, KREF issued an investor one share of SNVPS , at $0.01 per share, in lieu of that investor receiving Non-Voting Manager Units to facilitate compliance by the investor with regulatory requirements applicable to it. The corresponding Non-Voting Manager Units are held by a wholly-owned TRS of KREF ("KREF TRS"). All distributions received by KREF TRS from these Non-Voting Manager Units are passed through to the investor as preferred distributions on its SNVPS , less applicable taxes and withholdings. Except for the Non-Voting Manager Units , an indirect subsidiary of KKR ("KKR Member"), owns and controls the limited liability company interests of the Manager . Dividends on the SNVPS are payable quarterly, and will accrue whether or not KREF has earnings, there are assets legally available for the payment of those dividends or those dividends have been declared. Any dividend payment made on the SNVPS shall first be credited against the earliest accumulated but unpaid dividend due with respect to the SNVPS. Upon redemption of the SNVPS or liquidation of KREF, the holder of the SNVPS is entitled to payment of $0.01 per share, together with any accumulated but unpaid preferred distributions, including respective call or put amounts (as defined), before any holder of junior security interests, which includes KREF 's common stock. As KREF does not control the circumstances under which the holder of the SNVPS may redeem its interests, management considers the SNVPS as temporary equity (Note 2 ). KREF will redeem the SNVPS at the option of the holder. Upon redemption, KREF will pay a price in cash equal to $0.01 per share of the SNVPS , together with any accumulated but unpaid preferred distributions, including respective call or put amounts (as defined), and the SNVPS will be canceled automatically and cease to be outstanding. Concurrently, upon redemption of the SNVPS, KKR Member will acquire from KREF TRS its respective Non-Voting Manager Units, resulting in a one-time gain, thus substantially eliminating the historical cumulative impact of the SNVPS redemption value adjustments recorded in KREF 's permanent equity. Earnings per Share — The following table illustrates the computation of basic and diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 Numerator Net income (loss) attributable to common stockholders $ 90,492 $ 87,293 $ 58,818 Denominator Basic weighted average common shares outstanding 57,426,912 55,136,548 45,320,358 Dilutive restricted stock units 105,578 34,513 1,002 Diluted weighted average common shares outstanding 57,532,490 55,171,061 45,321,360 Net income (loss) attributable to common stockholders, per: Basic common share $ 1.58 $ 1.58 $ 1.30 Diluted common share $ 1.57 $ 1.58 $ 1.30

Stock-based Compensation

Stock-based Compensation12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Stock-based compensationStock-based Compensation KREF is externally managed by the Manager and does not currently have any employees. However, as of December 31, 2019 , the Manager, certain individuals employed by the Manager and affiliates of the Manager, and certain members of KREF 's board of directors were compensated, in part, through the issuance of stock-based awards. As of December 31, 2019 , KREF had restricted stock unit (“RSU”) awards outstanding under the KKR Real Estate Finance Trust Inc. 2016 Omnibus Incentive Plan that was adopted on February 12, 2016 and amended and restated on November 17, 2016 (the " Incentive Plan ") to certain members of KREF ’s board of directors and employees of the Manager or its affiliates, none of whom are KREF employees. RSUs awarded to employees of the Manager or its affiliates, generally vest over three consecutive one -year periods and awards to certain members of KREF 's board of directors vest over a one-year period, pursuant to the terms of the respective award agreements and the terms of the Incentive Plan. RSU awards are not entitled to dividends until KREF issues shares of its common stock, which are issuable on a one-to-one basis upon the RSU award vesting. The following table summarizes the activity in KREF ’s outstanding RSUs and the weighted-average grant date fair value per RSU: Restricted Stock Units Weighted Average Grant Date Fair Value Per RSU (A) Unvested as of December 31, 2018 459,179 $ 19.33 Granted 362,832 20.64 Vested (175,566 ) 19.49 Forfeited/ cancelled (5,231 ) 19.68 Unvested as of December 31, 2019 641,214 $ 20.02 (A) The grant-date fair value is based upon the last sale price of KREF’s common stock at the date of grant. KREF expects the unvested RSUs outstanding to vest during the following years: Year Restricted Stock Units 2020 292,165 2021 232,383 2022 116,666 Total 641,214 Upon adoption of ASU No. 2018-07 in June 2018, KREF recognizes the compensation cost of RSUs awarded to employees of the Manager, or one or more of its affiliates, on a straight-line basis over the awards’ term at their grant date fair value, consistent with the RSUs awarded to certain members of KREF 's board of directors. During the years ended December 31, 2019 , 2018 and 2017 , KREF recognized $4.0 million , $2.0 million and $0.1 million , respectively, of stock-based compensation expense included in “General and administrative” expense in the Consolidated Statements of Income. As of December 31, 2019 , there was $11.3 million of total unrecognized stock-based compensation expense related to unvested share-based compensation arrangements. This cost is expected to be recognized over a weighted average period of 1.3 years. During the year ended December 31, 2019 , KREF delivered 103,175 shares of common stock for 175,566 vested RSUs. Upon any payment of shares as a result of restricted stock unit vesting, the related tax withholding obligation will generally be satisfied by KREF , reducing the number of shares to be delivered by a number of shares necessary to satisfy the related applicable tax withholding obligation. The amount results in a cash payment related to this tax liability and a corresponding adjustment to additional paid in capital in the Consolidated Statement of Changes in Stockholders' Equity. The adjustment was $1.4 million for the year ended December 31, 2019 , and is included as a reduction of capital related to the Company's equity incentive plan in the Consolidated Statement of Changes in Stockholders' Equity. Refer to Note 12 for additional information regarding the Incentive Plan.

Commitments and Contingencies

Commitments and Contingencies12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments and Contingencies As of December 31, 2019 , KREF was subject to the following commitments and contingencies: Litigation — From time to time, KREF may be involved in various claims and legal actions arising in the ordinary course of business. KREF establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. As of December 31, 2019 , KREF was not involved in any material legal proceedings regarding claims or legal actions against KREF . Indemnifications — In the normal course of business, KREF enters into contracts that contain a variety of representations and warranties that provide general indemnifications and other indemnities relating to contractual performance. In addition, certain of KREF ’s subsidiaries have provided certain indemnities relating to environmental and other matters and has provided nonrecourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of certain real estate investments that KREF has made. KREF ’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against KREF that have not yet occurred. However, KREF expects the risk of material loss to be low. Capital Commitments — As of December 31, 2019 , KREF had future funding requirements of $616.4 million related to its investments in commercial mortgage loans. These future funding commitments primarily relate to construction projects, capital improvements, tenant improvements and leasing commissions. Generally, funding commitments are subject to certain conditions that must be met, such as customary construction draw certifications, minimum credit metrics or executions of new leases before advances are made to the borrower. In January 2017, KREF committed $40.0 million to invest in an aggregator vehicle alongside RECOP I . As of December 31, 2019 , KREF had a remaining commitment of $4.3 million to RECOP I

Related Party Transactions

Related Party Transactions12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party TransactionsRelated Party Transactions Management Agreement — The Management Agreement between KREF and the Manager is a three -year agreement that provides for automatic one -year renewal periods starting October 8, 2017, subject to certain termination and nonrenewal rights, which in the case of KREF are exercisable by a two-thirds vote by the independent directors of KREF 's board of directors. If the independent directors of KREF 's board of directors decline to renew the Management Agreement other than for cause, KREF is required to pay the Manager a termination fee equal to three times the total 24 -month trailing average annual management fee and incentive compensation earned by the Manager through the most recently completed calendar quarter. For administrative efficiency purposes, the Management Agreement was amended in August 2019 to change the expiration date of each automatic renewal period from October 7th to December 31st. Pursuant to the Management Agreement , the Manager , as agent to KREF and under the supervision of KREF 's board of directors, manages the investments, subject to investment guidelines approved by KREF 's board of directors; financing activities; and day-to-day business and affairs of KREF and its subsidiaries. For its services to KREF , the Manager is entitled to a quarterly management fee equal to the greater of $62,500 or 0.375% of a weighted average adjusted equity and quarterly incentive compensation equal to 20.0% of the excess of (a) the trailing 12 -month adjusted earnings over (b) 7.0% of the trailing 12 -month weighted average adjusted equity (“Hurdle Rate”), less incentive compensation KREF already paid to the Manager with respect to the first three calendar quarters of such trailing 12 -month period. The quarterly incentive compensation is calculated and paid in arrears with a three months lag. Adjusted equity generally represents the proceeds received by KREF and its subsidiaries from equity issuances, without duplication and net of offering costs, and adjusted earnings, reduced by distributions, equity repurchases, and incentive compensation paid. Adjusted earnings generally represents the net income, or loss, attributable to equity interests in KREF and its subsidiaries, without duplication, as well as realized losses not otherwise included in such net income, or loss, excluding non-cash equity compensation expense, incentive compensation, depreciation and amortization and unrealized gains or losses, from and after the effective date to the end of the most recently completed calendar quarter. KREF 's board of directors, after majority approval by independent directors, may also exclude one-time events pursuant to changes in GAAP and certain material non-cash income or expense items from adjusted earnings. For purposes of calculating incentive compensation, both adjusted equity and adjusted earnings exclude the effects of equity issued by KREF and its subsidiaries that provides for fixed distributions or other debt characteristics. KREF is also required to reimburse the Manager or its affiliates for documented costs and expenses incurred by it and its affiliates on behalf of KREF except those specifically required to be borne by the Manager under the Management Agreement. The Manager is responsible for, and KREF does not reimburse the Manager or its affiliates for, the expenses related to investment personnel of the Manager and its affiliates who provide services to KREF . However, KREF does reimburse the Manager for KREF 's allocable share of compensation paid to certain of the Manager ’s non-investment personnel, based on the percentage of time devoted by such personnel to KREF 's affairs. Incentive Plan — KREF 's compensation committee or board of directors may administer the Incentive Plan , which provides for awards of stock options; stock appreciation rights ; restricted stock; RSUs; limited partnership interests of KKR Real Estate Finance Holdings L.P. (the " Operating Partnership "), a wholly owned subsidiary of KREF , that are directly or indirectly convertible into or exchangeable or redeemable for shares of KREF 's common stock pursuant to the limited partnership agreement of the Operating Partnership (“OP Interests”); awards payable by (i) delivery of KREF 's common stock or other equity interests, or (ii) reference to the value of KREF 's common stock or other equity interests, including OP Interests; cash-based awards; or performance compensation awards. No more than 7.5% of the issued and outstanding shares of common stock on a fully diluted basis, assuming the exercise of all outstanding stock options granted under the Incentive Plan and the conversion of all warrants and convertible securities into shares of common stock, or a total of 4,028,387 shares of common stock, will be available for awards under the Incentive Plan . In addition, (i) the maximum number of shares of common stock subject to awards granted during a single fiscal year to any non-employee director (as defined in the Incentive Plan ), taken together with any cash fees paid to such non-employee director during the fiscal year, may not exceed $1.0 million and (ii) the maximum amount that can be paid to any participant for a single fiscal year during a performance period (or with respect to each single fiscal year if a performance period extends beyond a single fiscal year) pursuant to a performance compensation award denominated in cash will be $10.0 million . No awards may be granted under the Incentive Plan on and after February 12, 2026. The Incentive Plan will continue to apply to awards granted prior to such date. During the year ended December 31, 2019 , KREF granted 362,832 RSUs to KREF 's directors and employees of the Manager. During the year ended December 31, 2018 , KREF granted 361,878 RSUs to KREF 's directors and employees of the Manager. As of December 31, 2019 , 3,249,739 shares of common stock remained available for awards under the Incentive Plan . Due to Affiliates — The following table contains the amounts presented in KREF 's Consolidated Balance Sheets that it owes to affiliates: Year Ended December 31, 2019 2018 Management fees $ 4,280 $ 4,330 Expense reimbursements and other 1,637 382 $ 5,917 $ 4,712 Affiliates Expenses — The following table contains the amounts included in KREF 's Consolidated Statements of Income that arose from transactions with the Manager: Year Ended December 31, 2019 2018 2017 Management fees $ 17,135 $ 16,346 $ 13,492 Incentive compensation 3,272 4,756 — Expense reimbursements and other (A) 1,469 1,184 1,561 $ 21,876 $ 22,286 $ 15,053 (A) KREF presents these amounts in " Operating Expenses — General and administrative " in its Consolidated Statements of Income. Affiliate expense reimbursements presented in the table above exclude the out-of-pocket amounts paid by the Manager to parties unaffiliated with the Manager on behalf of KREF , and for which KREF reimburses the Manager in cash. For the years ended December 31, 2019 , 2018 and 2017 , these cash reimbursements totaled $1.8 million , $2.7 million and $1.6 million , respectively. In connection with the Term Loan Facility (Note 4 ), KREF paid KKR Capital Markets ("KCM"), an affiliate of the Manager, a structuring fee equal to 0.75% of the respective committed loan advances, as defined. Such fees are capitalized as deferred financing cost and amortized to interest expense over the life of the facility. During the years ended December 31, 2019 and 2018 , KREF incurred $1.5 million and $6.0 million , respectively, in structuring fees in connection with the facility. In connection with the BMO Facility, and in consideration for structuring and sourcing this arrangement, KREF is obligated to pay KCM a structuring fee equal to 0.35% of the respective committed loan advances under the agreement. Such fees are capitalized as deferred financing cost and amortized to interest expense over the life of the facility. During the years ended December 31, 2019 and 2018 , KREF incurred $0.2 million and $0.4 million , respectively, in structuring fees in connection with the facility. In connection with the CLO issuance, and in consideration for its services as the co-placement agent, KREF incurred and paid KCM a $0.9 million placement agent fee equal to 0.105% of the CLO proceeds in the fourth quarter of 2018. The fee was capitalized as deferred financing cost and amortized to interest expense over the weighted average life of the collateral assets. In connection with the Revolver, and in consideration for structuring and sourcing this arrangement, KREF paid KCM a structuring fee equal to 0.75% of the aggregate amount of commitments first made available. The structuring fees are capitalized as deferred financing cost included within Other Assets in the Consolidated Balance Sheet and amortized to interest expense over the life of the Revolver. During the years ended December 31, 2019 and 2018 , KREF incurred $1.1 million and $0.8 million , respectively, in structuring fees in connection with the Revolver. During the year ended December 31, 2018, KREF paid KCM $0.8 million in commissions in connection with the issuance of the Convertible Notes. Such amount is included in the $5.1 million Convertible Notes’ issuance cost and is amortized to interest expense over the life of the Convertible Notes. In connection with the ATM, KCM, in its capacity as one of the sales agents, will receive commissions for the shares of KREF ’s common stock it sells. This amount is not to exceed, but may be less than, 2.0% of the gross sales price per share. KREF did not sell any shares under the ATM during the year ended December 31, 2019 .

Fair Value of Financial Instrum

Fair Value of Financial Instruments12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial InstrumentsFair Value of Financial Instruments The carrying values and fair values of KREF ’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value, as of December 31, 2019 were as follows: Fair Value Principal Balance (A) Carrying Value (B) Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 67,619 $ 67,619 $ 67,619 $ — $ — $ 67,619 Commercial mortgage loans, held-for-investment, net (C) 4,960,698 4,931,042 — — 4,937,808 4,937,808 Equity method investments 37,469 37,469 — — 37,469 37,469 Commercial mortgage loans held in variable interest entities, at fair value — — — — — — $ 5,065,786 $ 5,036,130 $ 67,619 $ — $ 4,975,277 $ 5,042,896 Liabilities Secured financing agreements, net $ 2,898,716 $ 2,884,887 $ — $ — $ 2,898,716 $ 2,898,716 Collateralized loan obligation, net 810,000 803,376 — — 810,867 810,867 Convertible notes, net 143,750 139,075 150,719 — — 150,719 Loan participations sold, net 65,000 64,966 — — 64,966 64,966 Variable interest entity liabilities, at fair value — — — — — — $ 3,917,466 $ 3,892,304 $ 150,719 $ — $ 3,774,549 $ 3,925,268 (A) The principal balance of commercial mortgage loans excludes premiums and unamortized discounts. (B) The carrying value of commercial mortgage loans is presented net of $29.7 million unamortized origination discounts and deferred nonrefundable fees. The carrying value of secured financing agreements is presented net of $13.8 million unamortized debt issuance costs. The carrying value of collateralized loan obligations is presented net of $6.6 million unamortized debt issuance costs. (C) Includes $1.0 billion of CLO loan participations as of December 31, 2019 . Includes senior loans for which KREF syndicated a vertical loan participation that was not treated as a sale under GAAP, with a carrying value and a fair value of $65.0 million as of December 31, 2019 . The carrying values and fair values of KREF ’s financial assets recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2018 were as follows: Fair Value Principal Balance (A) Carrying Value (B) Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 86,531 $ 86,531 $ 86,531 $ — $ — $ 86,531 Commercial mortgage loans, held-for-investment, net (C) 4,026,713 4,001,820 — — 4,007,316 4,007,316 Equity method investments 30,734 30,734 — — 30,734 30,734 Commercial mortgage loans held in variable interest entities, at fair value 1,127,926 1,092,986 — — 1,092,986 1,092,986 $ 5,271,904 $ 5,212,071 $ 86,531 $ — $ 5,131,036 $ 5,217,567 Liabilities Secured financing agreements, net $ 1,965,675 $ 1,951,049 $ — $ — $ 1,965,675 $ 1,965,675 Collateralized loan obligation, net 810,000 800,346 — — 810,000 810,000 Convertible notes, net 143,750 137,688 142,107 — — 142,107 Loan participations sold, net 85,880 85,465 — — 85,295 85,295 Variable interest entity liabilities, at fair value 1,092,984 1,080,255 — — 1,080,255 1,080,255 $ 4,098,289 $ 4,054,803 $ 142,107 $ — $ 3,941,225 $ 4,083,332 (A) The principal balance of commercial mortgage loans excludes premiums and discounts. (B) The carrying value of commercial mortgage loans is presented net of $24.9 million origination discounts and deferred nonrefundable fees. The carrying value of secured financing agreements is presented net of $14.6 million unamortized debt issuance costs. The carrying value of collateralized loan obligations is presented net of $9.7 million unamortized debt issuance costs. (C) Includes $1.0 billion of CLO loan participations as of December 31, 2018 . Includes senior loans for which KREF sold a loan participation that was not treated as a sale under GAAP, with a carrying value of $85.6 million and a fair value of $85.3 million as of December 31, 2018 . KREF reported the following financial assets and liabilities at fair value on a recurring basis using Level 3 inputs as of December 31, 2019 . The following table summarizes the changes in these assets and liabilities. Assets Liabilities Commercial Mortgage Loans Held in Variable Interest Entities, at Fair Value Variable Interest Entity Liabilities, at Fair Value Net Balance as of December 31, 2017 $ 5,372,811 $ 5,256,926 $ 115,885 Gains (losses) included in net income Realized gain (loss) 13,000 — 13,000 Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs (98,990 ) (96,426 ) (2,564 ) Purchases and repayments Purchases — — — Sale/Deconsolidation/Repayments (4,178,118 ) (4,065,371 ) (112,747 ) Other (A) (15,717 ) (14,874 ) (843 ) Balance as of December 31, 2018 $ 1,092,986 $ 1,080,255 $ 12,731 Gains (losses) included in net income Realized gain (loss) (2,759 ) — (2,759 ) Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs (2,322 ) (2,322 ) — Purchases and sales/repayments Sale/Deconsolidation/Repayments (1,083,899 ) (1,074,115 ) (9,784 ) Other (A) (4,006 ) (3,818 ) (188 ) Balance as of December 31, 2019 $ — $ — $ — (A) Amounts primarily consist of changes in accrued interest. During the year ended December 31, 2019 , KREF contributed $6.3 million , received distributions of $3.2 million and recognized income of $3.7 million related to its investment in RECOP I . During the year ended December 31, 2018 , KREF contributed $15.6 million , received distributions of $1.7 million and recognized income of $2.3 million related to its investment in RECOP I . The following table contains the Level 3 inputs used to value assets and liabilities on a recurring and nonrecurring basis or where KREF discloses fair value as of December 31, 2019 : Fair Value Valuation Methodologies Unobservable Inputs (A) Weighted Average (B) Range Assets (C) Commercial mortgage loans, held-for-investment, net $ 4,937,808 Discounted cash flow Discount rate 5.2% 4.2% - 10.3% Loan-to-value ratio (D) N/A N/A $ 4,937,808 Liabilities (E) Collateralized loan obligation, net $ 810,867 Discounted cash flow Yield 2.9% 2.6% - 4.0% $ 810,867 (A) An increase (decrease) in the valuation input results in a decrease (increase) in value. (B) Represents the average of the input value, weighted by the unpaid principal balance of the financial instrument. (C) KREF carries a $37.2 million investment in an aggregator vehicle alongside RECOP I (Note 8 ) at its pro rata share of the aggregator's net asset value, which management believes approximates fair value. (D) For commercial mortgage loans risk-rated 1-3, the loans are valued using a discounted cash flow model using discount rate derived from relevant market indices. For commercial mortgage loans risk-rated 4 or 5, the loans are valued using a discounted cash flow model using discount rates derived from relevant market indices and estimates of the underlying property's value. No loans were rated 4 or 5 as of December 31, 2019 . (E) Does not include $65.0 million of vertical loan syndication which was syndicated at par value and included in “Loan participation sold, net” in the accompanying Consolidated Balance Sheet. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets not measured at fair value on an ongoing basis but subject to fair value adjustments only in certain circumstances, such as when there is evidence of impairment, are measured at fair value on a nonrecurring basis. For commercial mortgage loans held-for-sale, KREF applies the lower of cost or fair value accounting and may be required, from time to time, to record a nonrecurring fair value adjustment. For commercial mortgage loans held-for-investment and preferred interest in joint venture held-to-maturity, KREF applies the amortized cost method of accounting, but may be required, from time to time, to record a nonrecurring fair value adjustment in the form of a valuation provision or impairment. KREF did not report any significant financial assets or liabilities at fair value on a nonrecurring basis as of December 31, 2019 or 2018 . Assets and Liabilities for Which Fair Value is Only Disclosed KREF does not carry its secured financing agreements at fair value as management did not elect the fair value option for these liabilities. As of December 31, 2019 , the fair value of KREF

Income Taxes

Income Taxes12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income TaxesIncome Taxes KREF has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with its taxable year ended December 31, 2014. A REIT is generally not subject to U.S. federal and state income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding any net capital gains. A REIT will also be subject to a nondeductible excise tax to the extent certain percentages of its taxable income are not distributed within specified dates. KREF expects to distribute 100% of its net taxable income for the foreseeable future, while retaining sufficient capital to support its ongoing needs. KREF consolidates subsidiaries that incur U.S. federal, state and local income taxes, based on the tax jurisdiction in which each subsidiary operates. During each of the years ended December 31, 2019 , 2018 and 2017 , KREF recorded a current income tax provision (benefit) of $0.6 million , $(0.1) million and $1.1 million respectively, related to operations of its taxable REIT subsidiaries and various other state and local taxes. There were no deferred tax assets or liabilities as of December 31, 2019 and 2018 . As of December 31, 2019 , tax years 2016 through 2019 remain subject to examination by taxing authorities. Common stock distributions treated as dividends for tax purposes were taxable as follows: Year Ordinary Dividends Qualified Dividends Long Term Capital Gain Return of Capital 2019 99.1 % 1.6 % 0.9 % — % 2018 88.3 0.6 11.7 — 2017 100.0 — — —

Subsequent Events

Subsequent Events12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent EventsSubsequent Events The following events occurred subsequent to December 31, 2019 : Investing Activities KREF originated the following loans: Description/ Location Property Type Month Originated Maximum Face Amount Initial Face Amount Funded Interest Rate (A) Maturity Date (B) LTV Senior Loan, Plano, TX Office February 2020 $ 226,500 $ 160,554 L + 2.65% February 2025 64% Senior Loan, San Diego, CA Multifamily February 2020 $ 106,000 $ 106,000 L + 3.3% February 2025 71% Mezzanine Loan, Westbury, NY Multifamily January 2020 $ 20,000 $ 14,836 L + 9.0% August 2024 65% Total/Weighted Average $ 352,500 $ 281,390 L + 3.2% 66% (A) Floating rate based on one-month USD LIBOR. (B) Maturity date assumes all extension options are exercised, if applicable. Funding of Previously Closed Loans KREF funded approximately $24.4 million for previously closed loans. Loan Repayments KREF received approximately $107.5 million from loan repayments. Financing Activities KREF increased the borrowing capacity on the Revolver to $335.0 million . KREF net borrowed $207.0 million under its financing agreements. Corporate Activities Dividends In January 2020 , KREF paid $24.7 million in dividends on its common stock, or $0.43 per share, with respect to the fourth quarter of 2019 , to stockholders of record on December 31, 2019 .

Summary Quarterly Consolidated

Summary Quarterly Consolidated Financial Information (Unaudited)12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Summary Quarterly Consolidated Financial Information (Unaudited)Summary Quarterly Consolidated Financial Information (Unaudited) The following tables summarize KREF 's quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of KREF 's results of operations for the years ended December 31, 2019 and 2018 : 2019 Quarter Ended Year Ended March 31 June 30 September 30 December 31 December 31, 2019 Net Interest Income Interest income $ 64,751 $ 62,944 $ 74,223 $ 72,417 $ 274,335 Interest expense 34,842 37,089 45,596 41,333 158,860 Total net interest income 29,909 25,855 28,627 31,084 115,475 Other Income (Loss) 1,949 (12 ) 2,289 1,772 5,998 Operating Expenses 7,601 8,214 6,984 8,130 30,929 Income (Loss) Before Income Taxes, Noncontrolling Interests and Preferred Dividends 24,257 17,629 23,932 24,726 90,544 Income tax expense (benefit) 9 280 77 213 579 Net Income (Loss) 24,248 17,349 23,855 24,513 89,965 Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture — — — — — Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture — — — — — Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries 24,248 17,349 23,855 24,513 89,965 Preferred Stock Dividends and Redemption Value Adjustment (457 ) (32 ) 238 (276 ) (527 ) Net Income (Loss) Attributable to Common Stockholders $ 24,705 $ 17,381 $ 23,617 $ 24,789 $ 90,492 Net Income (Loss) Per Share of Common Stock Basic $ 0.43 $ 0.30 $ 0.41 $ 0.43 $ 1.58 Diluted $ 0.43 $ 0.30 $ 0.41 $ 0.43 $ 1.57 Weighted Average Number of Shares of Common Stock Outstanding Basic 57,387,386 57,412,522 57,420,140 57,486,583 57,426,912 Diluted 57,477,234 57,507,219 57,549,066 57,595,424 57,532,490 2018 Quarter Ended Year Ended December 31, 2018 March 31 June 30 September 30 December 31 Net Interest Income Interest income $ 31,694 $ 40,363 $ 51,895 $ 59,623 $ 183,575 Interest expense 10,690 18,798 23,337 32,192 85,017 Total net interest income 21,004 21,565 28,558 27,431 98,558 Other Income (Loss) 9,198 7,983 1,602 1,310 20,093 Operating Expenses 6,602 5,599 9,103 7,610 28,914 Income (Loss) Before Income Taxes, Noncontrolling Interests and Preferred Dividends 23,600 23,949 21,057 21,131 89,737 Income tax expense 175 (33 ) 85 (297 ) (70 ) Net Income (Loss) 23,425 23,982 20,972 21,428 89,807 Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture 34 29 — — 63 Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture — — — — — Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries 23,391 23,953 20,972 21,428 89,744 Preferred Stock Dividends and Redemption Value Adjustment 111 470 151 1,719 2,451 Net Income (Loss) Attributable to Common Stockholders $ 23,280 $ 23,483 $ 20,821 $ 19,709 $ 87,293 Net Income (Loss) Per Share of Common Stock, basic and diluted $ 0.44 $ 0.44 $ 0.37 $ 0.34 $ 1.58 Weighted Average Number of Shares of Common Stock Outstanding Basic 53,337,915 53,064,585 55,903,126 58,178,944 55,136,548 Diluted 53,378,467 53,069,866 55,921,655 58,253,821 55,171,061

Schedule IV - Mortgage Loans on

Schedule IV - Mortgage Loans on Real Estate12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule IV - Mortgage Loans on Real EstateCommercial Mortgage Loans The following table summarizes KREF 's investments in commercial mortgage loans as of December 31, 2019 and 2018 : Weighted Average Loan Type Outstanding Face Amount Carrying Value Loan Count Floating Rate Loan % (A) Coupon (A) Life (Years) (B) December 31, 2019 Loans held-for-investment Senior loans (C) $ 4,919,298 $ 4,890,408 37 100.0 % 5.0 % 4.1 Mezzanine loans 41,400 40,634 2 86.7 9.6 4.6 $ 4,960,698 $ 4,931,042 39 99.9 % 5.1 % 4.1 December 31, 2018 Loans held-for-investment Senior loans (C) $ 3,970,856 $ 3,946,086 33 100.0 % 6.0 % 3.7 Mezzanine loans 55,857 55,734 8 53.0 12.0 4.1 $ 4,026,713 $ 4,001,820 41 99.3 % 6.0 % 3.7 (A) Average weighted by outstanding face amount of loan. Weighted average coupon assumes the greater of applicable one-month LIBOR rates of 1.76% and 2.50% as of December 31, 2019 and 2018 , respectively, or the applicable contractual LIBOR floor. (B) The weighted average life of each loan is based on the expected timing of the receipt of contractual principal repayments assuming all extension options are exercised by the borrower. (C) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. Also, includes loan participations sold with a face amount of $65.0 million and $85.9 million , and a carrying value of $65.0 million and $85.6 million as of December 31, 2019 and 2018 , respectively. Includes CLO loan participations of $1.0 billion as of December 31, 2019 and 2018 , respectively. Activity — For the years ended December 31, 2019 and 2018 , the loan portfolio activity was as follows: Held-for-Investment Held-for-Sale Total Balance at December 31, 2017 $ 1,888,510 $ — $ 1,888,510 Purchases and originations, net (A) 2,544,565 — 2,544,565 Proceeds from principal repayments (441,779 ) — (441,779 ) Accretion of loan discount and other amortization, net (C) 10,524 — 10,524 Balance at December 31, 2018 $ 4,001,820 $ — $ 4,001,820 Purchases and originations, net (A) 2,865,608 — 2,865,608 Proceeds from sales and principal repayments (B) (1,956,611 ) — (1,956,611 ) Accretion of loan discount and other amortization, net (C) 20,225 — 20,225 Balance at December 31, 2019 $ 4,931,042 $ — $ 4,931,042 (A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes $142.8 million in net proceeds from non-recourse sale of senior interests and $65.0 million in proceeds from pari passu loan syndication. (C) Includes accretion of applicable discounts, certain fees and deferred loan origination costs. As of December 31, 2019 and 2018 , there was $29.7 million and $24.9 million , respectively, of unamortized deferred loan fees and discounts included in commercial mortgage loans, held-for-investment, net in the Consolidated Balance Sheets. KREF recognized prepayment fee income and net accelerated fees income of $0.9 million and $4.7 million , respectively, during the year ended December 31, 2019 . Loan Risk Ratings — As further described in Note 2 , our Manager evaluates KREF 's commercial mortgage loan portfolio on a quarterly basis. In conjunction with the quarterly commercial mortgage loan portfolio review, KREF 's Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors. Loans are rated “1” (very low risk) through “5” Impaired/Loss Likely), which ratings are defined in Note 2 . The following table allocates the principal balance and net book value of the loan portfolio based on KREF 's internal risk ratings: December 31, 2019 December 31, 2018 Risk Rating Number of Loans Net Book Value Total Loan Exposure (A) Total Loan Exposure % Risk Rating Number of Loans Net Book Value Total Loan Exposure (A) Total Loan Exposure % 1 1 $ 85,730 $ 86,000 1.7 % 1 — $ — $ — — % 2 5 450,827 451,858 9.0 2 8 466,742 468,860 11.5 3 33 4,394,485 4,501,440 89.3 3 33 3,535,078 3,625,008 88.5 4 — — — — 4 — — — — 5 — — — — 5 — — — — 39 $ 4,931,042 $ 5,039,298 100.0 % 41 $ 4,001,820 $ 4,093,868 100.0 % (A) In certain instances, KREF finances its loans through the non-recourse sale of a senior interest that is not included in the consolidated financial statements. Total loan exposure includes the entire loan KREF originated and financed, including $143.6 million and $67.2 million of such non-consolidated interests as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 , the average risk rating of KREF 's portfolio was 2.9 (Average Risk) , weighted by total loan exposure, with 100.0% of commercial mortgage loans held-for-investment, rated 3 (Average Risk) or better by KREF 's Manager, as compared to 2.9 (Average Risk) as of December 31, 2018 . Concentration of Credit Risk — The following tables present the geographies and property types of collateral underlying KREF 's commercial mortgage loans as a percentage of the loans' face amounts: December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Geography Collateral Property Type New York 22.5 % 30.3 % Multifamily 58.3 % 41.0 % Illinois 9.7 — Office 25.5 44.6 Pennsylvania 9.2 5.4 Retail 4.7 3.1 Virginia 8.2 — Hospitality 4.4 3.7 Massachusetts 7.7 4.9 Condo (Residential) 3.0 4.3 California 6.9 9.7 Industrial 2.8 3.3 Florida 6.9 11.3 Student Housing 1.3 — Washington 6.9 8.3 Total 100.0 % 100.0 % Georgia 4.3 11.1 Minnesota 3.7 5.7 New Jersey 3.1 3.7 Colorado 2.8 2.4 Oregon 2.5 3.1 Texas 2.5 0.1 Alabama 1.2 — Washington D.C. 0.9 2.4 Tennessee — 1.3 Other U.S. 1.0 0.3 Total 100.0 % 100.0 % Description/Location Prior Liens (A) Face Amount Carrying Amount Interest Rate (B) Payment Terms (C) Maturity Date (D) Senior Loans (E) Senior Loan 1, Brooklyn, NY N/A 358.3 356.0 L + 2.7 I/O 6/7/2024 Senior Loan 2, Arlington, VA N/A 328.5 326.9 L + 2.5 I/O 7/7/2024 Senior Loan 3, Chicago, IL N/A 318.7 316.3 L + 2.8 I/O 7/5/2026 Senior Loan 4, Boston, MA N/A 204.0 203.1 L + 2.4 I/O 6/7/2023 Senior Loan 5, Various N/A 193.7 192.0 L + 3.5 I/O 6/7/2024 Senior Loan 6, New York, NY N/A 187.5 185.9 L + 3.6 I/O 1/7/2024 Senior Loan 7, Minneapolis, MN N/A 185.1 184.7 L + 3.8 I/O 12/5/2022 Senior Loan 8, Seattle, WA N/A 168.0 167.4 L + 3.8 I/O 10/7/2023 Senior Loan 9, Philadelphia, PA N/A 154.6 154.2 L + 2.5 I/O 7/7/2023 Senior Loan 10, Philadelphia, PA N/A 152.0 150.9 L + 2.6 I/O 5/7/2024 Senior Loan 11, North Bergen, NJ N/A 150.0 149.7 L + 3.2 I/O 11/5/2022 Senior Loan 12, Irvine, CA N/A 149.0 147.5 L + 2.9 I/O 11/7/2024 Senior Loan 13, New York, NY N/A 148.4 148.2 L + 4.7 I/O 10/5/2021 Senior Loan 14, New York, NY N/A 148.0 147.0 L + 2.6 I/O 12/7/2023 Senior Loan 15, Denver, CO N/A 141.1 139.5 L + 2.8 I/O 9/7/2024 Senior Loan 16, Fort Lauderdale, FL N/A 140.0 139.5 L + 2.9 I/O 12/7/2023 Senior Loan 17, Boston, MA N/A 137.0 136.7 L + 2.7 I/O 4/7/2024 Senior Loan 18, West Palm Beach, FL N/A 131.5 130.7 L + 2.9 I/O 11/7/2023 Senior Loan 19, Chicago, IL N/A 125.1 123.6 L + 3.3 I/O 8/7/2024 Senior Loan 20, Portland, OR N/A 125.0 124.7 L + 5.5 I/O 11/5/2020 Senior Loan 21, San Diego, CA N/A 102.5 102.1 L + 3.4 I/O 12/7/2023 Senior Loan 22, Various N/A 102.2 101.6 L + 2.6 I/O 8/12/2025 Senior Loan 23, Seattle, WA N/A 92.3 92.1 L + 2.6 I/O 9/7/2023 Senior Loan 24, Los Angeles, CA N/A 90.0 89.2 L + 2.8 I/O 1/7/2023 Senior Loan 25, New York, NY N/A 86.0 85.7 L + 2.6 I/O 4/7/2023 Senior Loan 26, Seattle, WA N/A 80.7 80.6 L + 3.6 I/O 4/7/2023 Senior Loan 27, Philadelphia, PA N/A 77.0 76.6 L + 2.7 I/O 11/7/2023 Senior Loan 28, Brooklyn, NY N/A 76.0 75.5 L + 2.9 I/O 2/7/2024 Senior Loan 29, Atlanta, GA N/A 72.1 71.8 L + 2.7 I/O 8/7/2023 Senior Loan 30, Orlando, FL N/A 72.0 71.9 L + 2.8 I/O 4/7/2023 Senior Loan 31, Herndon, VA N/A 71.9 71.3 L + 2.5 I/O 1/7/2025 Senior Loan 32, State College, PA N/A 69.2 68.6 L + 2.7 I/O 11/7/2024 Senior Loan 33, Austin, TX N/A 67.5 66.9 L + 2.5 I/O 9/12/2024 Senior Loan 34, Queens, NY N/A 66.3 66.2 L + 3.0 I/O 8/5/2022 Senior Loan 35, Atlanta, GA N/A 61.5 61.0 L + 3.0 I/O 9/7/2024 Senior Loan 36, Washington, D.C. N/A 44.7 43.1 L + 3.4 I/O 1/7/2025 Senior Loan 37, Queens, NY N/A 42.0 41.9 L + 2.8 I/O 11/7/2023 Mezzanine Loans Mezzanine Loan 1, Various N/A 5.5 5.5 11.0 I/O 7/6/2025 Mezzanine Loan 2, Chicago, IL N/A 35.9 35.1 L + 7.1 I/O 6/7/2024 (A) Represents third-party priority liens. Third-party portions of pari-passu participations are not considered priority liens. Additionally, excludes the outstanding debt on third-party joint ventures of underlying borrowers. (B) L = one-month LIBOR rate. (C) I/O = interest only until final maturity unless otherwise noted (D) Maturity date assumes all extension options are exercised, if applicable. (E) Includes senior loans and pari passu participations in senior loans. May include accommodation mezzanine loans in connection with the senior mortgage financing For the activity within our loan portfolio during the year ended December 31, 2019 , refer to Note 3

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]
Basis of PresentationBasis of Presentation — The accompanying consolidated financial statements and related notes of KREF are prepared in accordance with accounting principles generally accepted in the United States of America (" GAAP "). The consolidated financial statements include the accounts of KREF and its consolidated subsidiaries, and all intercompany transactions and balances have been eliminated. The classification of proceeds from sale of commercial mortgage loans was updated in the prior period presentation to conform to the current period presentation on the Company’s consolidated statements of cash flows.
ConsolidationConsolidation — KREF consolidates those entities for which (i) it controls significant operating, financial and investing decisions of the entity or (ii) management determines that KREF is the primary beneficiary of entities deemed to be variable interest entities (" VIE s"). Variable Interest Entities — VIE s are defined as entities in which equity investors do not have an interest with the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. A VIE is required to be consolidated only by its primary beneficiary, which is defined as the party that has the power to direct the activities of the VIE that most significantly impact its economic performance and that has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could be potentially significant to the VIE (Note 8 ). To assess whether KREF has the power to direct the activities of a VIE that most significantly impact the VIE ’s economic performance, KREF considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE ’s economic performance; and second, identifying which party, if any, has power to direct those activities. To assess whether KREF has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE , KREF considers all of its economic interests and applies judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE . Collateralized Loan Obligation — KREF consolidates a collateralized loan obligation that closed in November 2018 (“ KREF 2018-FL1” or “CLO”) (Note 5 ). Management determined that KREF 2018-FL1 Ltd. and KREF 2018-FL1 LLC (the "CLO Issuers"), wholly-owned subsidiaries of KREF , were VIEs and that KREF was the primary beneficiary. KREF is the primary beneficiary of the VIEs since it has the ability to control the most significant activities of the CLO Issuers through ownership of non-investment grade rated subordinated controlling tranches, has the obligation to absorb losses, and the right to receive benefits, that could potentially be significant to these entities. As a result, KREF consolidates the CLO Issuers. The collateral assets of the CLO, comprised of a pool of loan participations (Note 5 ) are included in “Commercial mortgage loans, held-for-investment, net” on the accompanying Consolidated Balance Sheets. The liabilities of KREF 's consolidated CLO Issuers consist solely of obligations to the senior CLO noteholders, excluding subordinated CLO tranches held by KREF as such interests are eliminated in consolidation, are presented in “Collateralized loan obligation, net” in the accompanying Consolidated Balance Sheets. The collateral assets of the CLO can only be used to settle the obligations of the consolidated CLO. The interest income from the CLO collateral assets and the interest expense on the CLO liabilities are presented on a gross basis in “Interest income” and “Interest expense”, respectively, in KREF 's Consolidated Statements of Income. CMBS — KREF consolidates those trusts that issue beneficial ownership interests in mortgage loans secured by CRE (commonly known as CMBS ) when KREF holds a variable interest in, and management considers KREF to be the primary beneficiary of, those trusts. Management believes the performance of the assets that underlie CMBS issuances most significantly impacts the economic performance of the trust, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. In particular, the most subordinate tranches of CMBS expose the holder to the greater variability of economic performance when compared to more senior tranches since the subordinate tranches absorb a disproportionately higher amount of the credit risk related to the underlying assets. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint and remove the special servicer for the trust. The special servicer is responsible for the servicing and administration of delinquent and nonperforming loans as well as real estate owned (" REO ") properties held as collateral delivered on foreclosed loans. While the special servicer cannot prevent losses, its services to the trust are designed to mitigate credit losses to holders of the CMBS . For any CMBS trust that KREF consolidates, KREF holds an unrated tranche that represents the most subordinated tranche of the CMBS issued by that trust, which include the controlling class. As the holder of the most subordinate tranche, KREF is in a first loss position and has the right to receive benefits. As the holder of the controlling class, KREF has the ability to unilaterally appoint and remove the special servicer for the trust. In these cases, management considers KREF to be the primary beneficiary and consolidates that CMBS trust. For VIE s in which management determines KREF is the primary beneficiary, all of the underlying assets, liabilities and equity of the trusts are recorded on KREF 's books, and the initial investment, along with any associated unrealized holding gains and losses, are eliminated in consolidation. Similarly, the interest income earned from these trusts is eliminated in consolidation. Management elected the fair value option for KREF 's initial and subsequent recognition of the assets and liabilities of KREF 's consolidated CMBS VIE s in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the CMBS beneficially held by KREF 's stockholders. Since the changes in fair value include the interest income and interest expense associated with these CMBS VIE s, management does not consider the separate presentation of the components of fair value changes to be relevant. Management has elected to present these items in aggregate as " Other Income — Change in net assets related to CMBS consolidated variable interest entities " in the accompanying Consolidated Statements of Income; the residual difference between the fair value of the trust's assets and liabilities represents KREF 's beneficial interest in the CMBS VIE s. Management separately presents the assets and liabilities of KREF 's consolidated VIE s as individual line items on KREF 's Consolidated Balance Sheets for entities in which the VIE s assets can only be used to settle the VIE ’s obligations. The liabilities of KREF 's consolidated VIE s consist solely of obligations to the CMBS holders of the consolidated trust, excluding CMBS held by KREF as such interests are eliminated in consolidation, and the interest accrued thereon, presented as "Liabilities — Variable interest entity liabilities, at fair value ." The assets of KREF 's consolidated VIEs consist principally of commercial mortgage loans and the interest accrued thereon, and are likewise presented as a single line item entitled " Assets — Commercial mortgage loans held in variable interest entities, at fair value ." Assets of a CMBS trust, as a whole, can only be used to settle the obligations of the consolidated CMBS VIE . The assets of KREF 's CMBS VIE s are not individually accessible by, and obligations of the CMBS VIE s are not recourse to, the bondholders. KREF derives the fair value of its Level 3 CMBS VIE assets from its Level 3 CMBS VIE liabilities, which management considers to possess more observable market value data than the CMBS VIE assets. See "— Fair Value — Valuation of CMBS Consolidated VIEs " for additional discussion regarding management's valuation of consolidated CMBS VIE s. During the three months ended September 30, 2019, KREF sold the remaining directly held CMBS investments, including an unrated tranche that represented the most subordinated tranche of the CMBS issued by that trust, including the controlling class. Accordingly, KREF deconsolidated the respective CMBS trust as of December 31, 2019 (Note 8 ). Noncontrolling Interests — Noncontrolling interests represent the ownership interests in certain consolidated subsidiaries held by entities or persons other than KREF . Those noncontrolling interests that allow the holder to redeem before liquidation or termination of the entity that issued those interests are considered redeemable noncontrolling interests. The redeemable noncontrolling interests issued by subsidiaries of KREF are subject to certain restrictions and require KREF to transfer assets or issue equity to satisfy the redemption. As KREF does not control the circumstances under which the noncontrolling interests may redeem their interests, management considers these redeemable noncontrolling interests as temporary equity, presented as " Temporary Equity — Redeemable noncontrolling interests in equity of consolidated joint venture " in the accompanying Consolidated Balance Sheets and their share of " Net Income (Loss) " as " Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture " in the Consolidated Statements of Income. KREF recorded the redeemable noncontrolling interests at fair value upon issuance by subsidiaries of KREF , and adjusts the carrying value of such interests to equal their respective redemption values at each subsequent reporting period date if KREF determines the noncontrolling interests are redeemable or probable to become redeemable. Temporary Equity — KREF determined that the Special Non-Voting Preferred Stock (“SNVPS”) became redeemable in the second quarter of 2018. As a result, starting with the second quarter of 2018, KREF adjusts the carrying value of the SNVPS to its redemption value quarterly. Accordingly, KREF adjusted the carrying value of the SNVPS to its redemption value of $1.7 million as of December 31, 2019 and recorded a ($1.2) million non-cash redemption value adjustment to the SNVPS (“SNVPS Redemption Value Adjustment”) during the year ended December 31, 2019 . Such adjustment is treated similar to a dividend on preferred stock for GAAP purposes, accordingly, the SNVPS Redemption Value Adjustment is therefore deducted from (or added back to) “Net Income (loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries” to arrive at “Net Income (Loss) Attributable to Common Stockholders” on KREF 's Consolidated Statements of Income.
Equity method investments, at fair valueEquity method investments — Investments are accounted for under the equity method when KREF has significant influence over the operations of an investee, but KREF does not consolidate that investment. Equity method investments, for which management has not elected a fair value option, are initially recorded at cost and subsequently adjusted for KREF 's share of net income or loss and cash contributions and distributions each period. Management determined that KREF 's investment in the Manager is an interest in a VIE as KREF did not have substantive participating or kick-out rights. KREF does not have the power to direct activities and the obligation to absorb losses of the Manager that could be significant to the Manager . KREF accounts for its investment in the Manager using the equity method since KREF is not the primary beneficiary of the Manager (Note 8 ). Management determined that its investment in an aggregator vehicle alongside KKR Real Estate Credit Opportunity Partners L.P. (" RECOP I ") is an interest in a VIE , however KREF is not the primary beneficiary and does not have substantive participating or kick-out rights. Management elected the fair value option for KREF 's investment in RECOP I . KREF records its share of net asset value in RECOP I as “ Equity method investments ” in its Consolidated Balance Sheets and its share of unrealized gains or losses in " Income from equity method investments " in its Consolidated Statements of Income. KREF classifies distributions received from equity method investees using the cumulative earnings approach. Distributions received up to the cumulative earnings from each equity method investee are considered returns on investment and presented within “Cash Flows from Operating Activities” in the Consolidated Statements of Cash Flows; excess distributions received are considered returns of investment and presented within “Cash Flows from Investing Activities” in the Consolidated Statements of Cash Flows.
Use of EstimatesUse of Estimates — The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Management makes subjective estimates to project cash flows KREF expects to receive on its investments in loans and securities as well as the related market discount rates, which significantly impacts the interest income, impairments, allowance for loan loss and fair values recorded or disclosed. Actual results could differ from those estimates.
Fair ValueFair Value — GAAP requires the categorization of the fair value of financial instruments into three broad levels that form a hierarchy based on the transparency of inputs to the valuation. Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 - Inputs are other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar instruments in active markets, and inputs other than quoted prices that are observable for the asset or liability. Level 3 - Inputs are unobservable for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. KREF follows this hierarchy for its financial instruments. The classifications are based on the lowest level of input that is significant to the fair value measurement. Estimates of fair value for cash and cash equivalents, restricted cash, and convertible notes are measured using observable, quoted market prices, or Level 1 inputs. Valuation Process — The Manager reviews the valuation of Level 3 financial instruments as part of KKR 's quarterly process. As of December 31, 2019 , KKR’s valuation process for Level 3 measurements, as described below, subjected valuations to the review and oversight of various committees. KKR has a global valuation committee assisted by the asset class-specific valuation committees, including a real estate valuation committee that reviews and approves all preliminary Level 3 valuations for real estate assets, including the financial instruments held by KREF . The global valuation committee is responsible for coordinating and implementing KKR ’s valuation process to ensure consistency in the application of valuation principles across portfolio investments and between periods. All Level 3 valuations are also subject to approval by the global valuation committee. Valuation of Commercial Mortgage Loans and Participation Sold — Management generally considers KREF 's commercial mortgage loans Level 3 assets in the fair value hierarchy as such assets are illiquid, structured investments that are specific to the property and its operating performance. On a quarterly basis, management engages an independent valuation firm to estimate the fair value of each loan categorized as a Level 3 asset. Management reviews the quarterly loan valuation estimates provided by the independent valuation firm. These loans are generally valued using a discounted cash flow model using discount rates derived from observable market data applied to the capital structure of the respective sponsor and estimated property value. For commercial mortgage loans risk-rated 1-3, the loans are valued using a discounted cash flow model using discount rates derived from relevant market indices. For commercial mortgage loans risk-rated 4 or 5, the loans are valued using a discounted cash flow model using discount rates derived from relevant market indices and estimates of the underlying property's value to assess collateral coverage and recovery of principal and any accrued interest. In the event that management's estimate of fair value differs from the fair value estimate provided by the independent valuation firm, KREF ultimately relies solely upon the valuation prepared by the investment personnel of the Manager. Valuation of CLO Consolidated VIEs — Management estimates the fair value of the CLO liabilities using prices obtained from an independent valuation firm. If prices received from the independent valuation firm are inconsistent with values determined in connection with management’s independent review, management makes inquiries to the independent valuation firm about the prices received and related methods. In the event management determines the price obtained from an independent valuation firm to be unreliable or an inaccurate representation of the fair value of the CLO liabilities (based on considerations given to observable market data), management then compiles evidence independently and presents the independent valuation firm with such evidence supporting a different value. As a result, the independent valuation firm may revise their price accordingly. However, if management continues to disagree with the price from the independent valuation firm, in light of evidence presented that management compiled independently and believes to be compelling, management considers the independent valuation firm's quotation unreliable or inaccurate representation of the fair value of the CLO liabilities. In the event that the quotation from the independent valuation firm is not available or determined to be unreliable or an inadequate representation of the fair value of the CLO liabilities, valuations are prepared using inputs based on non-binding broker quotes obtained from independent, well-known, major financial brokers that are CLO market makers. In validating any non-binding broker quote used in this circumstance, management compares the non-binding quote to the observable market data points at such time and used to validate prices received from the independent valuation firm in addition to understanding the valuation methodologies used by the market makers. These market participants utilize a similar methodology as the independent valuation firm to value the CLO liabilities, with the key input of expected yield determined independently based on both observable and unobservable factors (as described above). To avoid reliance on any single broker-dealer, management receives a minimum of two non-binding quotes, of which the average is used. Valuation of CMBS Consolidated VIEs — Management categorizes the financial assets and liabilities of the CMBS trusts that KREF consolidates as Level 3 assets and liabilities in the fair value hierarchy and has elected the fair value option for financial assets and liabilities of each CMBS trust. Management has adopted the measurement alternative included in Accounting Standards Update (" ASU ") No. 2014-13, Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (" ASU 2014-13"). Pursuant to ASU 2014-13, management measures both the financial assets and financial liabilities of the CMBS trusts consolidated by KREF using the fair value of the financial liabilities, which management considers more observable than the fair value of the financial assets. Accordingly, KREF presents the CMBS issued by a consolidated trust, but not beneficially owned by KREF 's stockholders, as financial liabilities in KREF 's consolidated financial statements, measured at their estimated fair value; KREF measures the financial assets as the total estimated fair value of the CMBS issued by a consolidated trust, regardless of whether such CMBS represent interests beneficially owned by KREF 's stockholders. Under the measurement alternative prescribed by ASU 2014-13, KREF 's " Net Income (Loss) " reflects the economic interests in the consolidated CMBS beneficially owned by KREF 's stockholders, presented as " Change in net assets related to CMBS consolidated variable interest entities " in the Consolidated Statements of Income, which includes applicable (i) changes in the fair value of CMBS beneficially owned by KREF , (ii) interest and servicing fees earned from the CMBS trust and (iii) other residual returns or losses of the CMBS trust, if any (Note 8 ). Other Valuation Matters — For Level 3 financial assets originated, or otherwise acquired, and financial liabilities assumed during the calendar month immediately preceding a quarter end that were conducted in an orderly transaction with an unrelated party, management generally believes that the transaction price provides the most observable indication of fair value given the illiquid nature of these financial instruments, unless management is aware of any circumstances that may cause a material change in the fair value through the remainder of the reporting period. For instance, significant changes to the underlying property or its planned operations may cause material changes in the fair value of commercial mortgage loans acquired, or originated, by KREF . KREF ’s determination of fair value is based upon the best information available for a given circumstance and may incorporate assumptions that are management’s best estimates after consideration of a variety of internal and external factors. When an independent valuation firm expresses an opinion on the fair value of a financial instrument in the form of a range, management selects a value within the range provided by the independent valuation firm, generally the midpoint, to assess the reasonableness of management’s estimated fair value for that financial instrument.
Sale of Financial Assets and Financing AgreementsSales of Financial Assets and Financing Agreements — KREF will, from time to time, sell loans, securities and other assets as well as finance assets in the form of secured borrowings. In each case, management evaluates whether the transaction constitutes a sale through legal isolation of the transferred financial asset from KREF , the ability of the transferee to pledge or exchange the transferred asset without constraint and the transfer of control of the transferred asset. For transfers that constitute sales, KREF (i) recognizes the financial assets it retains and liabilities it has incurred, if any, (ii) derecognizes the financial assets it has sold, and derecognizes liabilities when extinguished and (iii) recognizes a realized gain, or loss, based upon the excess, or deficient, proceeds received over the carrying value of the transferred asset. KREF does not recognize a gain, or loss, on interests retained, if any, where management elected the fair value option prior to sale.
Cash and Cash Equivalents and Restricted CashCash and Cash Equivalents and Restricted Cash — KREF considers cash equivalents as highly liquid short-term investments with maturities of 90 days or less when purchased. Substantially all amounts on deposit with major financial institutions exceed insured limits. KREF must also maintain sufficient cash and cash equivalents to satisfy liquidity covenants related to its secured financing agreements. However, such amounts are not restricted from use in KREF 's current operations, and KREF does not present these cash and cash equivalents as restricted. As of December 31, 2019 and 2018 , KREF was required to maintain unrestricted cash and cash equivalents of at least $33.4 million and $15.2 million , respectively, to satisfy its liquidity covenants (Note 4 ).
Commercial Mortgage Loans Held-For-Investment and Provision for Loan LossesCommercial Mortgage Loans Held‑For‑Investment and Provision for Loan Losses — KREF recognizes its investments in commercial mortgage loans based on management's intent, and KREF 's ability, to hold those investments through their contractual maturity. Management classifies those loans that management does not intend to sell in the foreseeable future, and KREF is able to hold until maturity, as held-for-investment. Loans that are held‑for‑investment are carried at their aggregate outstanding face amount, net of applicable (i) unamortized origination or acquisition premiums and discounts, (ii) unamortized deferred nonrefundable fees and other direct loan origination costs, (iii) allowance for loan losses and (iv) charge-offs or write-downs of impaired loans. If a loan is determined to be impaired, management writes down the loan through a charge to the provision for loan losses. See "— Expense Recognition — Loan Impairment — Commercial Mortgage Loans, Held-For-Investment" for additional discussion regarding management’s determination for loan losses. KREF applies the interest method to amortize origination or acquisition premiums and discounts and deferred nonrefundable fees or other direct loan origination costs, or on a straight line basis when it approximates the interest method. Loans for which management elects the fair value option at the time of origination, or acquisition, are carried at fair value on a recurring basis (Note 3 ).
Commercial Mortgage Loans Held-For-SaleCommercial Mortgage Loans Held‑For‑Sale — Loans that KREF originates, or acquires, which KREF is unable to hold, or management intends to sell or otherwise dispose of, in the foreseeable future are classified as held‑for‑sale and are carried at the lower of amortized cost or fair value. Commercial Mortgage Loans, Held-For-Sale — For commercial mortgage loans held-for-sale, KREF applies the lower of cost or fair value accounting and may be required, from time to time, to record a nonrecurring fair value adjustment.
Commercial Mortgage-Backed And Commercial Real Estate Collateralized Loan Obligation Securities PolicyCommercial Mortgage-Backed and Commercial Real Estate Collateralized Loan Obligation Securities — From time to time, KREF may acquire certain CMBS and CRE CLO securities primarily for cash management purposes, and also for investment purposes. The Company designates such CMBS and CRE CLO securities as available-for-sale (“CRE AFS Securities”) on the acquisition date. Additionally, CMBS and CRE CLO securities that are not classified as held-to-maturity and which KREF does not hold for the purpose of selling in the near-term, but may dispose of prior to maturity, are also designated as available-for-sale and are carried at fair value. KREF ’s recognition of interest income from its CRE AFS Securities, including its amortization of premium and discount, follows KREF ’s revenue recognition policy as described under “Income Recognition” below. Available-for-sale securities are carried at fair value, with changes in fair value recognized in Other Comprehensive Income. KREF uses a specific identification method when determining the cost of a security sold and the amount of unrealized gain or loss reclassified from Accumulated Other Comprehensive Income (Loss) into earnings. Unrealized losses on securities that, in the judgment of management, are other than temporary are charged against earnings as a loss in the Consolidated Statements of Income and Comprehensive Income. The Company acquired $94.0 million of investment grade CRE AFS Securities in October 2019, which were subsequently sold as of December 31, 2019 for an immaterial gain.
Secured Financing Agreements and Convertible Notes, NetSecured Financing Agreements — KREF 's secured financing agreements, including uncommitted repurchase facilities, Term Lending Agreement, Asset Specific Financings and Term Loan Financings, are treated as floating-rate collateralized financing arrangements carried at their contractual amounts, net of unamortized debt issuance costs (Note 4 ). Included within KREF 's secured financing agreements is KREF 's corporate revolving credit facility ("Revolver"), which is full recourse to certain guarantor wholly-owned subsidiaries of KREF . Convertible Notes, Net — KREF accounts for its convertible debt with a cash conversion feature in accordance with ASC 470-20 “Debt with Conversion and Other Options” which requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion, including partial cash settlement, to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. The initial proceeds from the sale of convertible notes are allocated between a liability component and an equity component in a manner that reflects interest expense at the rate of similar nonconvertible debt that could have been issued at such time. The equity component represents the excess initial proceeds received over the fair value of the liability component of the notes as of the date of issuance. KREF measured the estimated fair value of the debt component of the 6.125% convertible senior notes due May 15, 2023 (“Convertible Notes”) as of the issuance date based on KREF ’s nonconvertible debt borrowing rate. The equity component of the Convertible Notes is reflected within additional paid-in capital on the Consolidated Balance Sheets, and the resulting debt discount is amortized over the period during which such Convertible Notes are expected to be outstanding (through the maturity date) as additional non-cash interest expense using the interest method, or on a straight line basis when it approximates the interest method. The additional non-cash interest expense attributable to such convertible notes will increase in subsequent periods through the maturity date as the notes accrete to their par value over the same period (Note 6 ).
Loan Participations Sold, NetLoan Participations Sold, Net — In connection with its investments in CRE loans, KREF finances certain investments through the syndication of non-recourse, or limited-recourse, loan participation to unaffiliated third parties. KREF ’s presentation of the senior loan and related financing involved in the syndication depends upon whether GAAP recognized the transaction as a sale, though such differences in presentation do not generally impact KREF ’s net stockholders’ equity or net income aside from timing differences in the recognition of certain transaction costs. To the extent that GAAP recognizes a sale resulting from the syndication, KREF derecognizes the participation in the senior/whole loan that KREF sold and continues to carry the retained portion of the loan as an investment. While KREF does not generally expect to recognize a material gain or loss on these sales, KREF would realize a gain or loss in an amount equal to the difference between the net proceeds received from the third party purchaser and its carrying value of the loan participation that KREF sold at time of sale. Furthermore, KREF recognizes interest income only on the portion of the loan that it retains as a result of the sale. To the extent that GAAP does not recognize a sale resulting from the syndication, KREF does not derecognize the participation in the senior/whole loan that it sold. Instead, KREF recognizes a loan participation sold liability in an amount equal to the principal of the loan participation syndicated less any unamortized discounts or financing costs resulting from the syndication. KREF continues to recognize interest income on the entire senior loan, including the interest attributable to the loan participation sold, as well as interest expense on the loan participation sold liability (Note 7 ).
Special Non-Voting Preferred StockSpecial Non-Voting Preferred Stock — Equity instruments that are redeemable for cash or other assets are classified as temporary equity if the instrument is redeemable, at the option of the holder, at a fixed or determinable price on a fixed or determinable date or upon the occurrence of an event that is not solely within the control of the issuer. Redeemable equity instruments are initially carried at the fair value of the equity instrument at the issuance date, which is subsequently adjusted at each balance sheet date if the instrument is currently redeemable or probable of becoming redeemable. KREF accounted for the SNVPS as redeemable preferred stock since a third party holds a redemption option, exercisable after May 5, 2018, and such redemption is not solely within KREF 's control. The SNVPS became redeemable in the second quarter of 2018. As a result, starting with the second quarter of 2018, KREF adjusts the carrying value of the SNVPS
Income RecognitionIncome Recognition Interest Income — Loans where management expects to collect all contractually required principal and interest payments are considered performing loans. KREF accrues interest income on performing loans based on the outstanding principal amount and contractual terms of the loan. Interest income also includes origination fees and direct loan origination costs for loans that KREF originates, but where management did not elect the fair value option, as a yield adjustment using the interest method over the loan term, or on a straight line basis when it approximates the interest method. KREF expenses origination fees and direct loan origination costs for loans acquired, but not originated, by KREF as well as loans for which management elected the fair value option, as incurred. Other Income — KREF recognizes interest income earned on its cash balances and miscellaneous fee income in “Other income” on its Consolidated Statements of Income. Interest income on cash balances totaled $1.9 million and $1.3 million for the years ended December 31, 2019 and 2018, respectively. Realized Gain (Loss) on Sale of Investments — KREF recognizes the excess, or deficiency, of net proceeds received, less the net carrying value of such investments, as realized gains or losses, respectively. KREF reverses cumulative, unrealized gains or losses previously reported in its Consolidated Statements of Income with respect to the investment sold at the time of sale.
Loan Impairment80%), and the loan covenants are unlikely to fully mitigate some risks. Interest payments may come from an interest reserve or sponsor equity. 5—Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss. The underlying property performance is significantly behind underwritten expectations, the sponsor has failed to execute its business plan and/or the sponsor has missed interest payments. The market fundamentals have deteriorated, or property performance has unexpectedly declined or valuations for comparable properties have declined meaningfully since loan origination. Current cash flow does not support debt service payments. With the current capital structure, the sponsor might not be incentivized to protect its equity without a restructuring of the loan. The loan exhibits a very high loan-to-value ratio (>90%), and default may be imminent.">Loan Impairment — KREF holds commercial mortgage loans for both investment and sale, which management periodically evaluates for impairment. Commercial Mortgage Loans, Held-For-Investment — For each loan in KREF 's portfolio, management performs a quarterly evaluation of impairment indicators of loans classified as held‑for‑investment using applicable loan, property, market and sponsor information obtained from borrowers, loan servicers and local market participants. Such indicators may include the net present value of the underlying collateral, property operating cash flows, the sponsor’s financial wherewithal and competency in managing the property, macroeconomic trends, and property submarket-specific economic factors. The evaluation of these indicators of impairment requires significant judgment by management to determine whether failure to collect contractual amounts is probable. If management deems that it is probable that KREF will be unable to collect all amounts owed according to the contractual terms of a loan, impairment of that loan is indicated. If management considers a loan to be impaired, management establishes an allowance for loan losses, through a valuation provision in earnings, which reduces the carrying value of the loan to the present value of expected future cash flows discounted at the loan’s contractual effective rate or the fair value of the collateral, if repayment is expected solely from the collateral. Significant judgment is required in determining impairment and in estimating the resulting loss allowance, and actual losses, if any, could materially differ from those estimates. Management considers loans to be past due when a monthly payment is due and unpaid for 60 days or more. Loans are placed on nonaccrual status and considered non-performing when full payment of principal and interest is in doubt, which generally occurs when principal or interest is 120 days or more past due unless the loan is both well secured and in the process of collection. Management may return a loan to accrual status when repayment of principal and interest is reasonably assured under the terms of the restructured loan. As of December 31, 2019 , KREF did not hold any loans that management placed on nonaccrual status or otherwise considered past due. In addition to reviewing commercial mortgage loans held-for-investment for impairment, the Manager evaluates KREF 's commercial mortgage loans to determine if an allowance for loan loss should be established. In conjunction with this review, the Manager assesses the risk factors of each loan, and assigns a risk rating based on a variety of factors, including, without limitation, underlying real estate performance and asset value, values of comparable properties, durability and quality of property cash flows, sponsor experience and financial wherewithal, and the existence of a risk-mitigating loan structure. Additional key considerations include loan-to-value ratios, debt service coverage ratios, loan structure, real estate and credit market dynamics, and risk of default or principal loss. Based on a five-point scale, KREF 's loans are rated "1" through "5," from less risk to greater risk, which ratings are defined as follows: 1—Very Low Risk—The underlying property performance has surpassed underwritten expectations, and the sponsor’s business plan is generally complete. The property demonstrates stabilized occupancy and/or rental rates resulting in strong current cash flow and/or a very low loan-to-value ratio (<65%). At the level of performance, it is very likely that the underlying loan can be refinanced easily in the period’s prevailing capital market conditions. 2—Low Risk—The underlying property performance has matched or exceeded underwritten expectations, and the sponsor’s business plan may be ahead of schedule or has achieved some or many of the major milestones from a risk mitigation perspective. The property has achieved improving occupancy at market rents, resulting in sufficient current cash flow and/or a low loan-to-value ratio (65%-70%). Operating trends are favorable, and the underlying loan can be refinanced in today’s prevailing capital market conditions. The sponsor/manager is well capitalized or has demonstrated a history of success in owning or operating similar real estate. 3—Average Risk—The underlying property performance is in-line with underwritten expectations, or the sponsor may be in the early stages of executing its business plan. Current cash flow supports debt service payments, or there is an ample interest reserve or loan structure in place to provide the sponsor time to execute the value-improvement plan. The property exhibits a moderate loan-to-value ratio (<75%). Loan structure appropriately mitigates additional risks. The sponsor/manager has a stable credit history and experience owning or operating similar real estate. 4—High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss. The underlying property performance is behind underwritten expectations, or the sponsor is behind schedule in executing its business plan. The underlying market fundamentals may have deteriorated, comparable property valuations may be declining or property occupancy has been volatile, resulting in current cash flow that may not support debt service payments. The loan exhibits a high loan-to-value ratio (>80%), and the loan covenants are unlikely to fully mitigate some risks. Interest payments may come from an interest reserve or sponsor equity. 5—Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a principal loss. The underlying property performance is significantly behind underwritten expectations, the sponsor has failed to execute its business plan and/or the sponsor has missed interest payments. The market fundamentals have deteriorated, or property performance has unexpectedly declined or valuations for comparable properties have declined meaningfully since loan origination. Current cash flow does not support debt service payments. With the current capital structure, the sponsor might not be incentivized to protect its equity without a restructuring of the loan. The loan exhibits a very high loan-to-value ratio (>90%), and default may be imminent.
Interest ExpenseInterest Expense — Management expenses contractual interest due in accordance with KREF 's financing agreements as incurred.
Deferred Debt Issuance CostsDeferred Debt Issuance Costs — Management capitalizes and amortizes deferred financing costs incurred in connection with financing arrangements over their respective expected term using the interest method, or on a straight line basis when it approximates the interest method. KREF presents such expensed amounts, as well as deferred amounts written off, as additional interest expense in its Consolidated Statements of Income.
General and Administrative ExpensesGeneral and Administrative Expenses — Management expenses general and administrative costs, including legal, diligence and audit fees; information technology costs; insurance premiums; and other costs as incurred.
Management and Incentive Compensation to AffiliateManagement and Incentive Compensation to Affiliate — Management fees and incentive compensation are earned by the Manager on a quarterly basis in accordance with the Management Agreement (Note 12 ).
Income TaxesIncome Taxes — Certain activities of KREF are conducted through joint ventures that are formed as limited liability companies, taxed as partnerships, and consolidated by KREF . Some of these joint ventures are subject to state and local income taxes, based on the tax jurisdictions in which they operate. In addition, certain activities of KREF are conducted through taxable REIT subsidiaries consolidated by KREF . Taxable REIT subsidiaries are subject to federal, state and local income taxes (Note 14 ). As of December 31, 2019 and 2018 , KREF did not have any material deferred tax assets or liabilities arising from future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in accordance with GAAP and their respective tax bases. KREF recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision for income taxes in KREF 's Consolidated Statements of Income. As of December 31, 2019 , KREF
Stock-Based Compensationtock-Based Compensation KREF 's stock-based compensation consists of awards issued to employees of the Manager or its affiliates that vest over the life of the awards, as well as restricted stock units issued to certain members of KREF 's board of directors. The Company recognizes the compensation cost of stock-based awards to its directors and employees of the Manager or its affiliates on a straight-line basis over the awards’ term at their grant date fair value. KREF
Earnings per ShareEarnings per Share KREF presents basic and diluted earnings per share (" EPS "). Basic EPS, or Net Income (Loss) Per Share of Common Stock, Basic , is calculated by dividing Net Income (Loss) Attributable to Common Stockholders by the Basic Weighted Average Number of Shares of Common Stock Outstanding, for the period. Diluted EPS , or Net Income (Loss) Per Share of Common Stock, Diluted, is calculated by starting with Basic EPS
Recent Accounting PronouncementsRecent Accounting Pronouncements Credit Losses

Commercial Mortgage Loans (Tabl

Commercial Mortgage Loans (Tables)12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Summary and Activity of Loans Held-for-investment and Held-for-saleThe following table allocates the principal balance and net book value of the loan portfolio based on KREF 's internal risk ratings: December 31, 2019 December 31, 2018 Risk Rating Number of Loans Net Book Value Total Loan Exposure (A) Total Loan Exposure % Risk Rating Number of Loans Net Book Value Total Loan Exposure (A) Total Loan Exposure % 1 1 $ 85,730 $ 86,000 1.7 % 1 — $ — $ — — % 2 5 450,827 451,858 9.0 2 8 466,742 468,860 11.5 3 33 4,394,485 4,501,440 89.3 3 33 3,535,078 3,625,008 88.5 4 — — — — 4 — — — — 5 — — — — 5 — — — — 39 $ 4,931,042 $ 5,039,298 100.0 % 41 $ 4,001,820 $ 4,093,868 100.0 % (A) In certain instances, KREF finances its loans through the non-recourse sale of a senior interest that is not included in the consolidated financial statements. Total loan exposure includes the entire loan KREF originated and financed, including $143.6 million and $67.2 million of such non-consolidated interests as of December 31, 2019 and 2018 , respectively. The following table summarizes KREF 's investments in commercial mortgage loans as of December 31, 2019 and 2018 : Weighted Average Loan Type Outstanding Face Amount Carrying Value Loan Count Floating Rate Loan % (A) Coupon (A) Life (Years) (B) December 31, 2019 Loans held-for-investment Senior loans (C) $ 4,919,298 $ 4,890,408 37 100.0 % 5.0 % 4.1 Mezzanine loans 41,400 40,634 2 86.7 9.6 4.6 $ 4,960,698 $ 4,931,042 39 99.9 % 5.1 % 4.1 December 31, 2018 Loans held-for-investment Senior loans (C) $ 3,970,856 $ 3,946,086 33 100.0 % 6.0 % 3.7 Mezzanine loans 55,857 55,734 8 53.0 12.0 4.1 $ 4,026,713 $ 4,001,820 41 99.3 % 6.0 % 3.7 (A) Average weighted by outstanding face amount of loan. Weighted average coupon assumes the greater of applicable one-month LIBOR rates of 1.76% and 2.50% as of December 31, 2019 and 2018 , respectively, or the applicable contractual LIBOR floor. (B) The weighted average life of each loan is based on the expected timing of the receipt of contractual principal repayments assuming all extension options are exercised by the borrower. (C) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. Also, includes loan participations sold with a face amount of $65.0 million and $85.9 million , and a carrying value of $65.0 million and $85.6 million as of December 31, 2019 and 2018 , respectively. Includes CLO loan participations of $1.0 billion as of December 31, 2019 and 2018 , respectively. years ended December 31, 2019 and 2018 , the loan portfolio activity was as follows: Held-for-Investment Held-for-Sale Total Balance at December 31, 2017 $ 1,888,510 $ — $ 1,888,510 Purchases and originations, net (A) 2,544,565 — 2,544,565 Proceeds from principal repayments (441,779 ) — (441,779 ) Accretion of loan discount and other amortization, net (C) 10,524 — 10,524 Balance at December 31, 2018 $ 4,001,820 $ — $ 4,001,820 Purchases and originations, net (A) 2,865,608 — 2,865,608 Proceeds from sales and principal repayments (B) (1,956,611 ) — (1,956,611 ) Accretion of loan discount and other amortization, net (C) 20,225 — 20,225 Balance at December 31, 2019 $ 4,931,042 $ — $ 4,931,042 (A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes $142.8 million in net proceeds from non-recourse sale of senior interests and $65.0 million in proceeds from pari passu loan syndication. (C) Includes accretion of applicable discounts, certain fees and deferred loan origination costs.
Concentration of Risk, by Risk FactorThe following tables present the geographies and property types of collateral underlying KREF 's commercial mortgage loans as a percentage of the loans' face amounts: December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Geography Collateral Property Type New York 22.5 % 30.3 % Multifamily 58.3 % 41.0 % Illinois 9.7 — Office 25.5 44.6 Pennsylvania 9.2 5.4 Retail 4.7 3.1 Virginia 8.2 — Hospitality 4.4 3.7 Massachusetts 7.7 4.9 Condo (Residential) 3.0 4.3 California 6.9 9.7 Industrial 2.8 3.3 Florida 6.9 11.3 Student Housing 1.3 — Washington 6.9 8.3 Total 100.0 % 100.0 % Georgia 4.3 11.1 Minnesota 3.7 5.7 New Jersey 3.1 3.7 Colorado 2.8 2.4 Oregon 2.5 3.1 Texas 2.5 0.1 Alabama 1.2 — Washington D.C. 0.9 2.4 Tennessee — 1.3 Other U.S. 1.0 0.3 Total 100.0 % 100.0 %

Debt Obligations (Tables)

Debt Obligations (Tables)12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Debt InstrumentsThe following tables summarize our borrowings under the Term Loan Facility: December 31, 2019 Term Loan Facility Count Outstanding Face Amount Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 12 $ 1,003,995 $ 997,081 L + 3.0% n.a. November 2023 Financing provided n.a. 798,180 793,872 L + 1.9% n.a. November 2023 December 31, 2018 Term Loan Facility Count Outstanding Face Amount Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 10 $ 941,905 $ 933,179 L + 3.1% n.a. August 2023 Financing provided 1 748,414 742,959 L + 1.8% n.a. August 2023 (A) Floating rate loans and related liabilities are indexed to one-month LIBOR. KREF's net interest rate exposure is in direct proportion to its interest in the net assets indexed to that rate. In addition to cash coupon, yield/cost includes the amortization of deferred origination/financing costs. (B) Financing under the Term Loan Facility is non-recourse to KREF. (C) The weighted-average term is determined using the maximum maturity date of the corresponding loans, assuming all extension options are exercised by the borrower. The following table summarizes KREF 's secured master repurchase agreements and other financing arrangements in place as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Facility Collateral Facility Month Issued Outstanding Face Amount Carrying Value (A) Maximum Facility Size Final Stated Maturity Weighted Average Funding Cost (B) Weighted Average Life (Years) (B) Outstanding Face Amount Amortized Cost Basis Carrying Value Weighted Average Life (Years) (C) Carrying Value (A) Master Repurchase Agreements (D) Wells Fargo (E) Oct 2015 $ 468,452 $ 464,933 $ 1,000,000 Nov 2023 3.6 % 2.6 $ 649,603 $ 644,903 $ 644,903 4.1 $ 508,523 Morgan Stanley (F) Dec 2016 394,499 392,279 600,000 Dec 2022 3.9 2.5 533,003 529,124 529,124 5.0 300,081 Goldman Sachs (G) Sep 2016 225,266 223,867 400,000 Oct 2020 4.0 0.8 316,426 315,902 315,902 2.7 340,671 Term Lending Agreement KREF Lending V (H) Jun 2019 870,051 868,816 900,000 Jun 2026 3.8 2.1 1,079,625 1,071,094 1,071,094 4.4 — Asset Specific Financing BMO Facility (I) Aug 2018 142,268 141,120 300,000 n.a 3.8 3.8 208,574 207,420 207,420 4.0 58,815 Revolving Credit Agreement Revolver (J) Dec 2018 — — 250,000 Dec 2023 1.0 3.9 n.a n.a n.a n.a — Total / Weighted Average $ 2,100,536 $ 2,091,015 $ 3,450,000 3.8 % 2.2 $ 1,208,090 (A) Net of $9.5 million and $9.2 million unamortized debt issuance costs as of December 31, 2019 and 2018 , respectively. (B) Average weighted by the outstanding face amount of borrowings inclusive of deferred financing costs. (C) Average based on the fully extended loan maturity, weighted by the outstanding face amount of the collateral. (D) Borrowings under these repurchase agreements are collateralized by senior loans, held-for-investment, and bear interest equal to the sum of (i) a floating rate index, equal to one-month LIBOR, or an index approximating LIBOR, and (ii) a margin, based on the collateral. As of December 31, 2019 and December 31, 2018 , the percentage of the outstanding face amount of the collateral sold and not borrowed under these repurchase agreements, or average "haircut" weighted by outstanding face amount of collateral, was 27.4% and 25.8% , respectively (or 25.7% and 23.4% , respectively, if KREF had borrowed the maximum amount approved by its repurchase agreement counterparties as of such dates). (E) The current stated maturity date is November 2021 , which does not reflect two , twelve -month facility term extensions available to KREF , which is contingent upon certain covenants and thresholds. As of December 31, 2019 , the collateral-based margin was between 1.25% and 2.15% . (F) In March 2019, the Morgan Stanley repurchase agreement was amended to extend the current stated maturity of the facility to December 2021 , which does not reflect one , twelve -month facility term extension available to KREF , which is contingent upon certain covenants and thresholds. In June 2019, the Morgan Stanley repurchase agreement was amended to increase the facility amount to $750.0 million . In December 2019, the Morgan Stanley repurchase agreement was amended to decrease the facility amount to $600.0 million , with a KREF option to increase the facility amount to $750.0 million . As of December 31, 2019 , the collateral-based margin was between 1.75% and 1.85% . (G) As of December 31, 2019 , the collateral-based margin was between 1.85% and 2.00% . (H) In June 2019, KREF Lending V LLC, a wholly-owned indirect subsidiary of KREF , entered into a Master Repurchase and Securities Contract Agreement (the "Term Lending Agreement") with Morgan Stanley Mortgage Capital Holdings LLC ("Administrative Agent"), as administrative agent on behalf of Morgan Stanley Bank, N.A. ("Initial Buyer"), which provides for current and future financings of up to $900.0 million on a non-mark-to-market basis. The Initial Buyer subsequently syndicated a portion of the facility to multiple financial institutions. As of December 31, 2019 , the Initial Buyer held 48.9% of the total commitment under the facility. Borrowings under the Term Lending Agreement are collateralized by certain loans, held for investment, and bear interest equal to one-month LIBOR, plus a 1.9% margin. The Term Lending Agreement has an initial maturity of June 2021, subject to five one -year extension options, which may be exercised by KREF upon the satisfaction of certain customary conditions and thresholds. (I) In August 2018, KREF entered into a $200.0 million loan financing facility with BMO Harris Bank ("BMO Facility"). The facility provides asset-based financing on a non-mark to market basis with matched-term up to five years with partial recourse to KREF . During May 2019, KREF increased the borrowing capacity to $300.0 million . As of December 31, 2019 , the collateral-based margin was between 1.50% and 1.70% . (J) In December 2018, KREF entered into a $100.0 million corporate revolving credit facility (“Revolver”) administered by Morgan Stanley Senior Funding, Inc. Additional lenders were added in 2019, further increasing the borrowing capacity under the Revolver to $250.0 million . The current stated maturity of the facility is December 2023. Borrowings under the facility bear interest at a per annum rate equal to the sum of (i) a floating rate index and (ii) a fixed margin. Borrowings under this facility are full recourse to certain guarantor wholly-owned subsidiaries of KREF . As of December 31, 2019 , the carrying value excluded $2.4 million unamortized debt issuance costs presented as " — Other assets" in KREF 's Consolidated Balance Sheets. years ended December 31, 2019 and 2018 , 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, 2017 $ 964,800 Principal borrowings 2,311,140 Principal repayments/sales/deconsolidation (1,314,812 ) Deferred debt issuance costs (15,324 ) Amortization of deferred debt issuance costs 5,245 Balance as of December 31, 2018 $ 1,951,049 Principal borrowings 3,217,859 Principal repayments/sales/deconsolidation (2,284,819 ) Deferred debt issuance costs (10,238 ) Amortization of deferred debt issuance costs 11,036 Balance as of December 31, 2019 $ 2,884,887
Schedule of Repurchase AgreementsThe 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, 2019 and 2018 : Outstanding Face Amount Net Counterparty Exposure Percent of Stockholders' Equity Weighted Average Life (Years) (A) December 31, 2019 Wells Fargo $ 468,452 $ 178,827 15.9 % 2.6 Morgan Stanley 394,499 136,764 12.2 2.5 Term Lending Agreement (B) 870,051 203,800 18.2 2.1 Total / Weighted Average $ 1,733,002 $ 519,391 46.3 % 2.4 December 31, 2018 Wells Fargo $ 512,298 $ 223,780 19.8 % 1.5 Morgan Stanley 302,595 145,066 12.8 1.2 Goldman Sachs 342,368 122,461 10.8 1.4 Total / Weighted Average $ 1,157,261 $ 491,307 43.7 % 1.4 (A) Average weighted by the outstanding face amount of borrowings under the secured financing agreement. (B) There were multiple counterparties to the Term Lending Agreement as of December 31, 2019 . Morgan Stanley Bank, N.A. represented 8.9% of the net counterparty exposure as a percent of stockholders' equity as of December 31, 2019 .
Schedule of Maturities of Debt ObligationsKREF ’s secured financing agreements, term loan financing and other consolidated debt obligations in place as of December 31, 2019 had current contractual maturities as follows: Year Nonrecourse Recourse (A) Total 2020 $ 82,481 $ 695,267 $ 777,748 2021 458,045 — 458,045 2022 117,293 1,129,250 1,246,543 2023 80,325 128,569 208,894 2024 60,037 147,450 207,487 $ 798,181 $ 2,100,536 $ 2,898,717 (A) Except for the Revolver, which is full recourse, amounts borrowed subject to a maximum 25.0% recourse limit. The Revolver expires in December 2023.

Collateralized Loan Obligation

Collateralized Loan Obligation (Tables)12 Months Ended
Dec. 31, 2019
Transfers and Servicing [Abstract]
Schedule of Collateral Assets and Respective BorrowingsThe following tables outline KREF 2018-FL1 collateral assets and respective borrowing as of December 31, 2019 and December 31, 2018: December 31, 2019 Collateralized Loan Obligation Count Face Amount Carrying Value Wtd. Avg. (B) Wtd. Avg. Term (C) Collateral assets (A) 22 $ 1,000,000 $ 1,000,000 L + 2.8% November 2023 Financing provided 1 810,000 803,376 L + 1.8% June 2036 December 31, 2018 Collateralized Loan Obligation Count Face Amount Carrying Value Wtd. Avg. (B) Wtd. Avg. Term (C) Collateral assets (A) 24 $ 1,000,000 $ 1,000,000 L + 3.5% December 2022 Financing provided 1 810,000 800,346 L + 1.8% June 2036 (A) Collateral assets represent 20.2% and 24.8% of the face amount of KREF 's commercial mortgage loans as of December 31, 2019 and 2018 , respectively. As of December 31, 2019 and 2018 , 100% of KREF loans financed through the CLO are floating rate loans. (B) Yield on collateral assets is based on cash coupon. Financing cost includes amortization of deferred financing costs incurred in connection with the CLO. (C) Loan term represents weighted-average final maturity, assuming extension options are exercised by the borrower. Repayments of CLO notes are dependent on timing of related collateral loan asset repayments post reinvestment period. The term of the CLO notes represents the rated final distribution date.
Schedule of Assets and Liabilities Included in Consolidated Balance SheetThe following table presents the KREF 2018-FL1 Assets and Liabilities included in KREF ’s Consolidated Balance Sheets: Assets December 31, 2019 December 31, 2018 Commercial mortgage loans, held-for-investment, net 1,000,000 1,000,000 Accrued interest receivable 3,280 4,263 Other assets 5 1,295 Total $ 1,003,285 $ 1,005,558 Liabilities Collateralized loan obligation, net 803,376 800,346 Accrued interest payable 1,254 3,341 Accounts payable, accrued expenses and other liabilities 72 314 Total $ 804,702 $ 804,001
Schedule of Net Interest Income Included in Consolidated Statement of IncomeThe following table presents the components of net interest income of KREF 2018-FL1 included in KREF ’s Consolidated Statements of Income: Year Ended December 31, 2019 2018 Net Interest Income Interest income $ 53,896 $ 5,553 Interest expense (A) 38,427 3,640 Net interest income $ 15,469 $ 1,913 (A) Includes $3.3 million and $0.3 million of deferred financing costs amortization for the years ended December 31, 2019 and 2018 , respectively. KREF 's unamortized deferred financing costs related to KREF 2018-FL1 were $6.6 million and $9.7 million , as of December 31, 2019 and 2018 , respectively.

Convertible Notes, Net (Tables)

Convertible Notes, Net (Tables)12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]
Interest Expense, DebtThe following table details our interest expense related to the Convertible Notes: Year Ended December 31, 2019 2018 Cash coupon $ 8,804 $ 5,454 Discount and issuance cost amortization 1,386 861 Total interest expense 10,190 6,315
Net Book ValueThe following table details the net book value of our Convertible Notes on our Consolidated Balance Sheets: December 31, 2019 December 31, 2018 Face value $ 143,750 $ 143,750 Deferred financing costs (3,460 ) (4,486 ) Unamortized discount (1,215 ) (1,576 ) Net book value $ 139,075 $ 137,688

Loan Participations Sold (Table

Loan Participations Sold (Tables)12 Months Ended
Dec. 31, 2019
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule of Participating Mortgage LoansThe following tables summarize the loan participation sold liabilities that KREF recognized since the corresponding syndications of the respective loan participations were not treated as "sales" as of December 31, 2019 and 2018 : December 31, 2019 Loan Participations Sold Count Principal Balance Carrying Value Yield/Cost (A) Guarantee Term Total loan 1 $ 328,500 $ 326,881 L + 2.5% n.a. July 2024 Vertical loan participation (B) 1 65,000 64,966 L + 2.5% n.a. July 2024 December 31, 2018 Loan Participations Sold Count Principal Balance Carrying Value Yield/Cost (A) Guarantee (C) Term Total loan 1 $ 99,757 $ 99,368 L + 3.0% n.a. September 2022 Senior loan participation (B) 1 85,880 85,465 L + 1.8% n.a. September 2022 (A) Floating rate loans and related liabilities are indexed to one-month LIBOR. KREF 's net interest rate exposure is in direct proportion to its interest in the net assets of the senior loan. (B) During the years ended December 31, 2019 and 2018 , KREF recorded $2.8 million and $3.3 million of interest income and $2.8 million and $3.3 million of interest expense, respectively, related to the total loan participations sold. (C) As of December 31, 2018 , the loan participation sold was subject to partial recourse of $10.0 million , which amount may be reduced to zero upon achievement of certain property performance metrics. Such loan was fully paid off in January 2019.

Variable Interest Entities (Tab

Variable Interest Entities (Tables)12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Variable Interest EntitiesThe following table presents the KREF recognized Trust's Assets and Liabilities: December 31, 2019 December 31, 2018 Trusts' Assets Commercial mortgage loans held in variable interest entities, at fair value (A) $ — $ 1,092,986 Accrued interest receivable — 4,005 Trusts' Liabilities Variable interest entity liabilities, at fair value (B) — 1,080,255 Accrued interest payable — 3,818 (A) Included accrued interest receivable. (B) Included accrued interest payable. CMBS trusts consolidated by KREF , as a percentage of the collateral unpaid principal balance and weighted by the fair value of the CMBS tranches beneficially owned by KREF 's stockholders: December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Geography Collateral Property Type California — % 33.4 % Retail — % 28.3 % Texas — 11.1 Office — 27.4 New York — 8.3 Hospitality — 13.0 Missouri — 5.4 Multifamily — 9.9 Pennsylvania — 5.1 Industrial/ Flex — 9.6 Florida — 4.2 Self Storage — 5.7 Massachusetts — 3.6 Mixed Use — 3.9 Illinois — 2.7 Mobile Home — 1.7 Georgia — 2.6 Other — 0.5 New Hampshire — 2.4 — % 100.0 % Delaware — 1.9 Virginia — 1.7 Other U.S. — 17.6 Total — % 100.0 %
Change In Net Assets Related to Consolidated Variable Interest EntitiesThe following table presents "Other Income — Change in net assets related to CMBS consolidated variable interest entities": Year Ended December 31, 2019 2018 2017 Net interest earned $ 1,665 $ 5,152 12,470 Unrealized gain (loss) — (2,564 ) 3,375 Change in net assets related to CMBS consolidated variable interest entities $ 1,665 $ 2,588 $ 15,845

Equity (Tables)

Equity (Tables)12 Months Ended
Dec. 31, 2019
Equity [Abstract]
Schedule of Common Stock IssuedAs further described below, since December 2015, KREF issued the following shares of common stock: Pricing Date Shares Issued Net Proceeds As of December 31, 2015 13,636,416 $ 272,728 February 2016 2,000,000 40,000 May 2016 3,000,138 57,130 June 2016 (A) 21,838 — August 2016 5,500,000 109,875 As of December 31, 2016 24,158,392 479,733 February 2017 7,386,208 147,662 April 2017 10,379,738 207,595 May 2017- Initial Public Offering 11,787,500 219,356 As of December 31, 2017 53,711,838 1,054,346 August 2018 5,000,000 98,326 November 2018 500,000 9,351 As of December 31, 2018 59,211,838 1,162,023 (A) KREF did not receive any proceeds with respect to 21,838 shares of common stock issued to certain current and former employees of, and non-employee consultants to, KKR and third-party investors in the private placement completed in March 2016, in accordance with KREF 's Stockholders Agreement dated as of March 29, 2016 . KREF did not raise additional capital for the year ended December 31, 2019.
Dividends DeclaredDuring the years ended December 31, 2019 and 2018, KREF 's board of directors declared the following dividends on shares of its common stock and special voting preferred stock: Amount Declaration Date Record Date Payment Date Per Share Total 2019 March 18, 2019 March 29, 2019 April 12, 2019 $ 0.43 $ 24,761 June 14, 2019 June 28, 2019 July 15, 2019 0.43 24,688 September 13, 2019 September 30, 2019 October 16, 2019 0.43 24,692 December 16, 2019 December 31, 2019 January 15, 2020 0.43 24,719 $ 98,860 2018 March 9, 2018 March 29, 2018 April 13, 2018 $ 0.40 $ 21,230 May 7, 2018 June 29, 2018 July 13, 2018 0.43 22,804 September 10, 2018 September 28, 2018 October 12, 2018 0.43 24,951 December 17, 2018 December 28, 2018 January 11, 2019 0.43 24,813 $ 93,798
Schedule of Earnings Per Share, Basic and DilutedThe following table illustrates the computation of basic and diluted earnings per share for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 2018 2017 Numerator Net income (loss) attributable to common stockholders $ 90,492 $ 87,293 $ 58,818 Denominator Basic weighted average common shares outstanding 57,426,912 55,136,548 45,320,358 Dilutive restricted stock units 105,578 34,513 1,002 Diluted weighted average common shares outstanding 57,532,490 55,171,061 45,321,360 Net income (loss) attributable to common stockholders, per: Basic common share $ 1.58 $ 1.58 $ 1.30 Diluted common share $ 1.57 $ 1.58 $ 1.30

Stock-based Compensation (Table

Stock-based Compensation (Tables)12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Restricted Stock Units activityThe following table summarizes the activity in KREF ’s outstanding RSUs and the weighted-average grant date fair value per RSU: Restricted Stock Units Weighted Average Grant Date Fair Value Per RSU (A) Unvested as of December 31, 2018 459,179 $ 19.33 Granted 362,832 20.64 Vested (175,566 ) 19.49 Forfeited/ cancelled (5,231 ) 19.68 Unvested as of December 31, 2019 641,214 $ 20.02 (A) The grant-date fair value is based upon the last sale price of KREF’s common stock at the date of grant.
Schedule of RSUs Outstanding to VestKREF expects the unvested RSUs outstanding to vest during the following years: Year Restricted Stock Units 2020 292,165 2021 232,383 2022 116,666 Total 641,214

Related Party Transactions (Tab

Related Party Transactions (Tables)12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]
Amounts Due to AffiliatesDue to Affiliates — The following table contains the amounts presented in KREF 's Consolidated Balance Sheets that it owes to affiliates: Year Ended December 31, 2019 2018 Management fees $ 4,280 $ 4,330 Expense reimbursements and other 1,637 382 $ 5,917 $ 4,712 Affiliates Expenses — The following table contains the amounts included in KREF 's Consolidated Statements of Income that arose from transactions with the Manager: Year Ended December 31, 2019 2018 2017 Management fees $ 17,135 $ 16,346 $ 13,492 Incentive compensation 3,272 4,756 — Expense reimbursements and other (A) 1,469 1,184 1,561 $ 21,876 $ 22,286 $ 15,053 (A) KREF presents these amounts in " Operating Expenses — General and administrative " in its Consolidated Statements of Income. Affiliate expense reimbursements presented in the table above exclude the out-of-pocket amounts paid by the Manager to parties unaffiliated with the Manager on behalf of KREF , and for which KREF reimburses the Manager in cash. For the years ended December 31, 2019 , 2018 and 2017 , these cash reimbursements totaled $1.8 million , $2.7 million and $1.6 million , respectively.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]
Assets and Liabilities Recorded at Fair Value on Recurring BasisThe carrying values and fair values of KREF ’s financial assets and liabilities recorded at fair value on a recurring basis, as well as other financial instruments not carried at fair value, as of December 31, 2019 were as follows: Fair Value Principal Balance (A) Carrying Value (B) Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 67,619 $ 67,619 $ 67,619 $ — $ — $ 67,619 Commercial mortgage loans, held-for-investment, net (C) 4,960,698 4,931,042 — — 4,937,808 4,937,808 Equity method investments 37,469 37,469 — — 37,469 37,469 Commercial mortgage loans held in variable interest entities, at fair value — — — — — — $ 5,065,786 $ 5,036,130 $ 67,619 $ — $ 4,975,277 $ 5,042,896 Liabilities Secured financing agreements, net $ 2,898,716 $ 2,884,887 $ — $ — $ 2,898,716 $ 2,898,716 Collateralized loan obligation, net 810,000 803,376 — — 810,867 810,867 Convertible notes, net 143,750 139,075 150,719 — — 150,719 Loan participations sold, net 65,000 64,966 — — 64,966 64,966 Variable interest entity liabilities, at fair value — — — — — — $ 3,917,466 $ 3,892,304 $ 150,719 $ — $ 3,774,549 $ 3,925,268 (A) The principal balance of commercial mortgage loans excludes premiums and unamortized discounts. (B) The carrying value of commercial mortgage loans is presented net of $29.7 million unamortized origination discounts and deferred nonrefundable fees. The carrying value of secured financing agreements is presented net of $13.8 million unamortized debt issuance costs. The carrying value of collateralized loan obligations is presented net of $6.6 million unamortized debt issuance costs. (C) Includes $1.0 billion of CLO loan participations as of December 31, 2019 . Includes senior loans for which KREF syndicated a vertical loan participation that was not treated as a sale under GAAP, with a carrying value and a fair value of $65.0 million as of December 31, 2019 . The carrying values and fair values of KREF ’s financial assets recorded at fair value on a recurring basis, as well as other financial instruments for which fair value is disclosed, as of December 31, 2018 were as follows: Fair Value Principal Balance (A) Carrying Value (B) Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 86,531 $ 86,531 $ 86,531 $ — $ — $ 86,531 Commercial mortgage loans, held-for-investment, net (C) 4,026,713 4,001,820 — — 4,007,316 4,007,316 Equity method investments 30,734 30,734 — — 30,734 30,734 Commercial mortgage loans held in variable interest entities, at fair value 1,127,926 1,092,986 — — 1,092,986 1,092,986 $ 5,271,904 $ 5,212,071 $ 86,531 $ — $ 5,131,036 $ 5,217,567 Liabilities Secured financing agreements, net $ 1,965,675 $ 1,951,049 $ — $ — $ 1,965,675 $ 1,965,675 Collateralized loan obligation, net 810,000 800,346 — — 810,000 810,000 Convertible notes, net 143,750 137,688 142,107 — — 142,107 Loan participations sold, net 85,880 85,465 — — 85,295 85,295 Variable interest entity liabilities, at fair value 1,092,984 1,080,255 — — 1,080,255 1,080,255 $ 4,098,289 $ 4,054,803 $ 142,107 $ — $ 3,941,225 $ 4,083,332 (A) The principal balance of commercial mortgage loans excludes premiums and discounts. (B) The carrying value of commercial mortgage loans is presented net of $24.9 million origination discounts and deferred nonrefundable fees. The carrying value of secured financing agreements is presented net of $14.6 million unamortized debt issuance costs. The carrying value of collateralized loan obligations is presented net of $9.7 million unamortized debt issuance costs. (C) Includes $1.0 billion of CLO loan participations as of December 31, 2018 . Includes senior loans for which KREF sold a loan participation that was not treated as a sale under GAAP, with a carrying value of $85.6 million and a fair value of $85.3 million as of December 31, 2018 .
Fair Value, Assets Measured on Recurring Basis, Unobservable Input ReconciliationKREF reported the following financial assets and liabilities at fair value on a recurring basis using Level 3 inputs as of December 31, 2019 . The following table summarizes the changes in these assets and liabilities. Assets Liabilities Commercial Mortgage Loans Held in Variable Interest Entities, at Fair Value Variable Interest Entity Liabilities, at Fair Value Net Balance as of December 31, 2017 $ 5,372,811 $ 5,256,926 $ 115,885 Gains (losses) included in net income Realized gain (loss) 13,000 — 13,000 Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs (98,990 ) (96,426 ) (2,564 ) Purchases and repayments Purchases — — — Sale/Deconsolidation/Repayments (4,178,118 ) (4,065,371 ) (112,747 ) Other (A) (15,717 ) (14,874 ) (843 ) Balance as of December 31, 2018 $ 1,092,986 $ 1,080,255 $ 12,731 Gains (losses) included in net income Realized gain (loss) (2,759 ) — (2,759 ) Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs (2,322 ) (2,322 ) — Purchases and sales/repayments Sale/Deconsolidation/Repayments (1,083,899 ) (1,074,115 ) (9,784 ) Other (A) (4,006 ) (3,818 ) (188 ) Balance as of December 31, 2019 $ — $ — $ — (A) Amounts primarily consist of changes in accrued interest.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input ReconciliationKREF reported the following financial assets and liabilities at fair value on a recurring basis using Level 3 inputs as of December 31, 2019 . The following table summarizes the changes in these assets and liabilities. Assets Liabilities Commercial Mortgage Loans Held in Variable Interest Entities, at Fair Value Variable Interest Entity Liabilities, at Fair Value Net Balance as of December 31, 2017 $ 5,372,811 $ 5,256,926 $ 115,885 Gains (losses) included in net income Realized gain (loss) 13,000 — 13,000 Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs (98,990 ) (96,426 ) (2,564 ) Purchases and repayments Purchases — — — Sale/Deconsolidation/Repayments (4,178,118 ) (4,065,371 ) (112,747 ) Other (A) (15,717 ) (14,874 ) (843 ) Balance as of December 31, 2018 $ 1,092,986 $ 1,080,255 $ 12,731 Gains (losses) included in net income Realized gain (loss) (2,759 ) — (2,759 ) Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs (2,322 ) (2,322 ) — Purchases and sales/repayments Sale/Deconsolidation/Repayments (1,083,899 ) (1,074,115 ) (9,784 ) Other (A) (4,006 ) (3,818 ) (188 ) Balance as of December 31, 2019 $ — $ — $ — (A) Amounts primarily consist of changes in accrued interest.
Fair Value Inputs, Liabilities, Level 3 InputsThe following table contains the Level 3 inputs used to value assets and liabilities on a recurring and nonrecurring basis or where KREF discloses fair value as of December 31, 2019 : Fair Value Valuation Methodologies Unobservable Inputs (A) Weighted Average (B) Range Assets (C) Commercial mortgage loans, held-for-investment, net $ 4,937,808 Discounted cash flow Discount rate 5.2% 4.2% - 10.3% Loan-to-value ratio (D) N/A N/A $ 4,937,808 Liabilities (E) Collateralized loan obligation, net $ 810,867 Discounted cash flow Yield 2.9% 2.6% - 4.0% $ 810,867 (A) An increase (decrease) in the valuation input results in a decrease (increase) in value. (B) Represents the average of the input value, weighted by the unpaid principal balance of the financial instrument. (C) KREF carries a $37.2 million investment in an aggregator vehicle alongside RECOP I (Note 8 ) at its pro rata share of the aggregator's net asset value, which management believes approximates fair value. (D) For commercial mortgage loans risk-rated 1-3, the loans are valued using a discounted cash flow model using discount rate derived from relevant market indices. For commercial mortgage loans risk-rated 4 or 5, the loans are valued using a discounted cash flow model using discount rates derived from relevant market indices and estimates of the underlying property's value. No loans were rated 4 or 5 as of December 31, 2019 . (E) Does not include $65.0 million of vertical loan syndication which was syndicated at par value and included in “Loan participation sold, net” in the accompanying Consolidated Balance Sheet.

Income Taxes Income Taxes (Tabl

Income Taxes Income Taxes (Tables)12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of Common Stock DistributionsCommon stock distributions treated as dividends for tax purposes were taxable as follows: Year Ordinary Dividends Qualified Dividends Long Term Capital Gain Return of Capital 2019 99.1 % 1.6 % 0.9 % — % 2018 88.3 0.6 11.7 — 2017 100.0 — — —

Subsequent Events (Tables)

Subsequent Events (Tables)12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]
Schedule of Senior NotesKREF originated the following loans: Description/ Location Property Type Month Originated Maximum Face Amount Initial Face Amount Funded Interest Rate (A) Maturity Date (B) LTV Senior Loan, Plano, TX Office February 2020 $ 226,500 $ 160,554 L + 2.65% February 2025 64% Senior Loan, San Diego, CA Multifamily February 2020 $ 106,000 $ 106,000 L + 3.3% February 2025 71% Mezzanine Loan, Westbury, NY Multifamily January 2020 $ 20,000 $ 14,836 L + 9.0% August 2024 65% Total/Weighted Average $ 352,500 $ 281,390 L + 3.2% 66% (A) Floating rate based on one-month USD LIBOR. (B) Maturity date assumes all extension options are exercised, if applicable.

Summary Quarterly Consolidate_2

Summary Quarterly Consolidated Financial Information (Unaudited) (Tables)12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial InformationThe following tables summarize KREF 's quarterly financial data which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of KREF 's results of operations for the years ended December 31, 2019 and 2018 : 2019 Quarter Ended Year Ended March 31 June 30 September 30 December 31 December 31, 2019 Net Interest Income Interest income $ 64,751 $ 62,944 $ 74,223 $ 72,417 $ 274,335 Interest expense 34,842 37,089 45,596 41,333 158,860 Total net interest income 29,909 25,855 28,627 31,084 115,475 Other Income (Loss) 1,949 (12 ) 2,289 1,772 5,998 Operating Expenses 7,601 8,214 6,984 8,130 30,929 Income (Loss) Before Income Taxes, Noncontrolling Interests and Preferred Dividends 24,257 17,629 23,932 24,726 90,544 Income tax expense (benefit) 9 280 77 213 579 Net Income (Loss) 24,248 17,349 23,855 24,513 89,965 Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture — — — — — Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture — — — — — Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries 24,248 17,349 23,855 24,513 89,965 Preferred Stock Dividends and Redemption Value Adjustment (457 ) (32 ) 238 (276 ) (527 ) Net Income (Loss) Attributable to Common Stockholders $ 24,705 $ 17,381 $ 23,617 $ 24,789 $ 90,492 Net Income (Loss) Per Share of Common Stock Basic $ 0.43 $ 0.30 $ 0.41 $ 0.43 $ 1.58 Diluted $ 0.43 $ 0.30 $ 0.41 $ 0.43 $ 1.57 Weighted Average Number of Shares of Common Stock Outstanding Basic 57,387,386 57,412,522 57,420,140 57,486,583 57,426,912 Diluted 57,477,234 57,507,219 57,549,066 57,595,424 57,532,490 2018 Quarter Ended Year Ended December 31, 2018 March 31 June 30 September 30 December 31 Net Interest Income Interest income $ 31,694 $ 40,363 $ 51,895 $ 59,623 $ 183,575 Interest expense 10,690 18,798 23,337 32,192 85,017 Total net interest income 21,004 21,565 28,558 27,431 98,558 Other Income (Loss) 9,198 7,983 1,602 1,310 20,093 Operating Expenses 6,602 5,599 9,103 7,610 28,914 Income (Loss) Before Income Taxes, Noncontrolling Interests and Preferred Dividends 23,600 23,949 21,057 21,131 89,737 Income tax expense 175 (33 ) 85 (297 ) (70 ) Net Income (Loss) 23,425 23,982 20,972 21,428 89,807 Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture 34 29 — — 63 Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture — — — — — Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries 23,391 23,953 20,972 21,428 89,744 Preferred Stock Dividends and Redemption Value Adjustment 111 470 151 1,719 2,451 Net Income (Loss) Attributable to Common Stockholders $ 23,280 $ 23,483 $ 20,821 $ 19,709 $ 87,293 Net Income (Loss) Per Share of Common Stock, basic and diluted $ 0.44 $ 0.44 $ 0.37 $ 0.34 $ 1.58 Weighted Average Number of Shares of Common Stock Outstanding Basic 53,337,915 53,064,585 55,903,126 58,178,944 55,136,548 Diluted 53,378,467 53,069,866 55,921,655 58,253,821 55,171,061

Business and Organization (Deta

Business and Organization (Details) - KKR - sharesDec. 31, 2019Dec. 31, 2018
KREF
Related Party Transaction [Line Items]
Common stock (shares)22,008,616 22,008,616
KKR Real Estate FInance Trust Inc. on Behalf of Third Party
Related Party Transaction [Line Items]
Common stock (shares)2,008,616

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in ThousandsJan. 01, 2020Sep. 13, 2019Jun. 14, 2019Mar. 18, 2019Dec. 17, 2018Sep. 10, 2018May 07, 2018Mar. 09, 2018Dec. 31, 2019Oct. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017May 31, 2018Dec. 31, 2016
Related Party Transaction [Line Items]
Redeemable preferred stock $ 1,694 $ 1,694 $ 2,846
Unrestricted cash and cash equivalents balance to satisfy liquidity covenants33,400 33,400 15,200
Payments To acquire mortgage backed securities CRE AFS categorized as available for sale94,007
Deferred financing/debt issuance costs2,400 2,400 1,400
Interest receivable16,305 16,305 16,178
Accrued expenses2,700 2,700
Good faith deposits $ 700 $ 700
Accrued share buybacks2,000
Accrued deferred financing and offering costs $ 1,000
Dividends Declared per Share of Common Stock (usd per share) $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.40 $ 0.43 $ 1.72 $ 1.69 $ 1.62
Redeemable Preferred Stock
Related Party Transaction [Line Items]
Redeemable preferred stock $ 1,694 $ 1,694 $ 2,846 $ 949 $ 0
Adjustment of redeemable preferred stock to redemption value(1,152)1,897
Commercial Real Estate
Related Party Transaction [Line Items]
Payments To acquire mortgage backed securities CRE AFS categorized as available for sale $ 94,000
Collateralized Loan Obligations
Related Party Transaction [Line Items]
Interest Income1,300
Interest receivable $ 1,900 $ 1,900 $ 1,300
Convertible Notes Payable | Notes Due in 2023
Related Party Transaction [Line Items]
Debt instrument, interest rate, stated percentage6.125%
Subsequent Event | Accounting Standards Update 2016-13
Related Party Transaction [Line Items]
Retained deficit adjustment, portion due to unfunded loan commitments $ 16,100
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share $ 0.28
Subsequent Event | Unfunded Loan Commitment | Accounting Standards Update 2016-13
Related Party Transaction [Line Items]
Retained deficit adjustment, portion due to unfunded loan commitments $ 2,200
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share $ 0.04

Commercial Mortgage Loans - Loa

Commercial Mortgage Loans - Loans Held-for-investment and Loans Held-for-sale (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)loanDec. 31, 2018USD ($)loanDec. 31, 2017USD ($)
Investment Holdings [Line Items]
Carrying Value $ 4,931,042 $ 4,001,820 $ 1,888,510
Loans held-for-investment
Investment Holdings [Line Items]
Outstanding Face Amount4,960,698 4,026,713
Carrying Value $ 4,931,042 $ 4,001,820 $ 1,888,510
Loan Count | loan39 41
Floating Rate Loan99.90%99.30%
Coupon5.10%6.00%
Life4 years 1 month 6 days3 years 8 months 12 days
Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Outstanding Face Amount $ 4,919,298 $ 3,970,856
Carrying Value $ 4,890,408 $ 3,946,086
Loan Count | loan37 33
Floating Rate Loan100.00%100.00%
Coupon5.00%6.00%
Life4 years 1 month 6 days3 years 8 months 12 days
Loans held-for-investment | Mezzanine loans
Investment Holdings [Line Items]
Outstanding Face Amount $ 41,400 $ 55,857
Carrying Value $ 40,634 $ 55,734
Loan Count | loan2 8
Floating Rate Loan86.70%53.00%
Coupon9.60%12.00%
Life4 years 7 months 6 days4 years 1 month 6 days
Senior Participation Loan
Investment Holdings [Line Items]
Carrying Value $ 85,600
Senior Participation Loan | Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Outstanding Face Amount $ 65,000 85,900
Carrying Value65,000 85,600
Collateralized Loan Obligations | Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Outstanding Face Amount $ 1,000,000 $ 1,000,000
LIBOR
Investment Holdings [Line Items]
Interest rate1.76%2.50%

Commercial Mortgage Loans - Act

Commercial Mortgage Loans - Activities Related to Carrying Value of Mortgage Loans (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance $ 4,001,820 $ 1,888,510
Purchases and originations, net2,865,608 2,544,565
Proceeds from sales and principal repayments(1,956,611)(441,779)
Accretion of loan discount and other amortization, net20,225 10,524
Ending balance4,931,042 4,001,820
Loans held-for-investment
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance4,001,820 1,888,510
Purchases and originations, net2,865,608 2,544,565
Proceeds from sales and principal repayments(1,956,611)(441,779)
Accretion of loan discount and other amortization, net20,225 10,524
Ending balance4,931,042 4,001,820
Loans held-for-sale
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance0 0
Purchases and originations, net0 0
Proceeds from sales and principal repayments0 0
Accretion of loan discount and other amortization, net0 0
Ending balance0 0
Senior Participation Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance85,600
Proceeds from sales and principal repayments(142,800)
Ending balance $ 85,600
Pari Passu Loan Syndication
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Proceeds from sales and principal repayments $ (65,000)

Commercial Mortgage Loans - Nar

Commercial Mortgage Loans - Narrative (Details) $ in Millions12 Months Ended
Dec. 31, 2019USD ($)Dec. 31, 2018USD ($)
Investment Holdings [Line Items]
Unamortized origination discounts and deferred nonrefundable fees $ 29.7 $ 24.9
Prepayment penalties0.9
Net accelerated fees $ 4.7
Weighted average loan risk rating2.9 2.9
Loans held-for-investment
Investment Holdings [Line Items]
Unamortized origination discounts and deferred nonrefundable fees $ 29.7 $ 24.9
Loans held-for-investment | Credit Concentration Risk
Investment Holdings [Line Items]
Concentration of credit risk100.00%

Commercial Mortgage Loans - L_2

Commercial Mortgage Loans - Loan Risk Ratings (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)loanDec. 31, 2018USD ($)loanNov. 30, 2019USD ($)Oct. 31, 2019USD ($)May 31, 2019USD ($)Dec. 31, 2017USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value $ 4,931,042 $ 4,001,820 $ 1,888,510
Total Loan Exposure143,600 67,200
Mortgage loan syndicated $ 64,966 $ 85,465
Commercial Mortgage Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan39 41
Carrying Value $ 4,931,042 $ 4,001,820
Total Loan Exposure $ 5,039,298 $ 4,093,868
Total Loan Exposure %100.00%100.00%
Commercial Mortgage Loan | 1
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan1 0
Carrying Value $ 85,730 $ 0
Total Loan Exposure $ 86,000 $ 0
Total Loan Exposure %1.70%0.00%
Commercial Mortgage Loan | 2
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan5 8
Carrying Value $ 450,827 $ 466,742
Total Loan Exposure $ 451,858 $ 468,860
Total Loan Exposure %9.00%11.50%
Commercial Mortgage Loan | 3
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan33 33
Carrying Value $ 4,394,485 $ 3,535,078
Total Loan Exposure $ 4,501,440 $ 3,625,008
Total Loan Exposure %89.30%88.50%
Commercial Mortgage Loan | 4
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan0 0
Carrying Value $ 0 $ 0
Total Loan Exposure $ 0 $ 0
Total Loan Exposure %0.00%0.00%
Commercial Mortgage Loan | 5
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans | loan0 0
Carrying Value $ 0 $ 0
Total Loan Exposure $ 0 $ 0
Total Loan Exposure %0.00%0.00%
Pari Passu Loan Syndication
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Mortgage loan syndicated $ 64,966 $ 65,000 $ 65,000 $ 65,000

Commercial Mortgage Loans - Con

Commercial Mortgage Loans - Concentration of Credit Risk (Details) - Loans held-for-investment12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Geography
Concentration Risk [Line Items]
Concentration of credit risk100.00%100.00%
Geography | New York
Concentration Risk [Line Items]
Concentration of credit risk22.50%30.30%
Geography | Illinois
Concentration Risk [Line Items]
Concentration of credit risk9.70%0.00%
Geography | Pennsylvania
Concentration Risk [Line Items]
Concentration of credit risk9.20%5.40%
Geography | Virginia
Concentration Risk [Line Items]
Concentration of credit risk8.20%0.00%
Geography | Massachusetts
Concentration Risk [Line Items]
Concentration of credit risk7.70%4.90%
Geography | California
Concentration Risk [Line Items]
Concentration of credit risk6.90%9.70%
Geography | Florida
Concentration Risk [Line Items]
Concentration of credit risk6.90%11.30%
Geography | Washington
Concentration Risk [Line Items]
Concentration of credit risk6.90%8.30%
Geography | Georgia
Concentration Risk [Line Items]
Concentration of credit risk4.30%11.10%
Geography | Minnesota
Concentration Risk [Line Items]
Concentration of credit risk3.70%5.70%
Geography | New Jersey
Concentration Risk [Line Items]
Concentration of credit risk3.10%3.70%
Geography | Colorado
Concentration Risk [Line Items]
Concentration of credit risk2.80%2.40%
Geography | Oregon
Concentration Risk [Line Items]
Concentration of credit risk2.50%3.10%
Geography | Texas
Concentration Risk [Line Items]
Concentration of credit risk2.50%0.10%
Geography | Alabama
Concentration Risk [Line Items]
Concentration of credit risk1.20%0.00%
Geography | Washington D.C.
Concentration Risk [Line Items]
Concentration of credit risk0.90%2.40%
Geography | Tennessee
Concentration Risk [Line Items]
Concentration of credit risk0.00%1.30%
Geography | Other U.S.
Concentration Risk [Line Items]
Concentration of credit risk1.00%0.30%
Collateral Property Type
Concentration Risk [Line Items]
Concentration of credit risk100.00%100.00%
Collateral Property Type | Multifamily
Concentration Risk [Line Items]
Concentration of credit risk58.30%41.00%
Collateral Property Type | Office
Concentration Risk [Line Items]
Concentration of credit risk25.50%44.60%
Collateral Property Type | Retail
Concentration Risk [Line Items]
Concentration of credit risk4.70%3.10%
Collateral Property Type | Hospitality
Concentration Risk [Line Items]
Concentration of credit risk4.40%3.70%
Collateral Property Type | Condo (Residential)
Concentration Risk [Line Items]
Concentration of credit risk3.00%4.30%
Collateral Property Type | Industrial
Concentration Risk [Line Items]
Concentration of credit risk2.80%3.30%
Collateral Property Type | Student Housing
Concentration Risk [Line Items]
Concentration of credit risk1.30%0.00%

Debt Obligations - Summary of D

Debt Obligations - Summary of Debt (Details)1 Months Ended12 Months Ended
Jun. 30, 2019USD ($)extensionMar. 31, 2019extensionNov. 30, 2018extensionNov. 30, 2017Dec. 31, 2019USD ($)Dec. 31, 2018USD ($)May 31, 2019USD ($)Aug. 31, 2018USD ($)Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Outstanding Face Amount $ 2,898,717,000
Carrying Value4,931,042,000 $ 4,001,820,000 $ 1,888,510,000
Unamortized debt issuance costs $ 9,500,000 $ 9,200,000
Average haircut weighted by outstanding face amount of collateral27.40%25.80%
Average haircut weighted by outstanding face amount of collateral if maximum amount is borrowed25.70%23.40%
Deferred financing/debt issuance costs $ 2,400,000 $ 1,400,000
Morgan Stanley | Facility
Debt Instrument [Line Items]
Maximum Facility Size $ 750,000,000
BMO | Minimum
Debt Instrument [Line Items]
Collateral based margin1.50%
BMO | Maximum
Debt Instrument [Line Items]
Collateral based margin1.70%
Secured Financing Agreements | Facility
Debt Instrument [Line Items]
Carrying Value $ 2,884,887,000 1,951,049,000 $ 964,800,000
Secured Financing Agreements | Wells Fargo | Facility
Debt Instrument [Line Items]
Outstanding Face Amount468,452,000
Carrying Value464,933,000 508,523,000
Maximum Facility Size $ 1,000,000,000
Weighted Average Funding Cost3.60%
Weighted Average Life2 years 7 months 6 days
Outstanding Face Amount $ 649,603,000
Carrying Value $ 644,903,000
Weighted Average Life4 years 1 month 6 days
Number of extensions | extension2
Extension term12 months
Secured Financing Agreements | Wells Fargo | Facility | Minimum
Debt Instrument [Line Items]
Collateral based margin1.25%
Secured Financing Agreements | Wells Fargo | Facility | Maximum
Debt Instrument [Line Items]
Collateral based margin2.15%
Secured Financing Agreements | Morgan Stanley | Facility
Debt Instrument [Line Items]
Outstanding Face Amount $ 394,499,000
Carrying Value392,279,000 300,081,000
Maximum Facility Size $ 750,000,000 $ 600,000,000
Weighted Average Funding Cost3.90%
Weighted Average Life2 years 6 months
Outstanding Face Amount $ 533,003,000
Carrying Value $ 529,124,000
Weighted Average Life5 years
Number of extensions | extension1
Extension term12 months
Collateral based margin1.85%
Secured Financing Agreements | Morgan Stanley | Facility | Minimum
Debt Instrument [Line Items]
Collateral based margin1.75%
Secured Financing Agreements | Goldman Sachs | Facility
Debt Instrument [Line Items]
Outstanding Face Amount $ 225,266,000
Carrying Value223,867,000 340,671,000
Maximum Facility Size $ 400,000,000
Weighted Average Funding Cost4.00%
Weighted Average Life9 months 18 days
Outstanding Face Amount $ 316,426,000
Carrying Value $ 315,902,000
Weighted Average Life2 years 8 months 12 days
Secured Financing Agreements | Goldman Sachs | Facility | Minimum
Debt Instrument [Line Items]
Collateral based margin1.85%
Secured Financing Agreements | Goldman Sachs | Facility | Maximum
Debt Instrument [Line Items]
Collateral based margin2.00%
Secured Financing Agreements | BMO | Facility
Debt Instrument [Line Items]
Outstanding Face Amount $ 142,268,000
Carrying Value141,120,000 58,815,000
Maximum Facility Size $ 300,000,000
Weighted Average Funding Cost3.80%
Weighted Average Life3 years 9 months 18 days
Outstanding Face Amount $ 208,574,000
Carrying Value $ 207,420,000
Weighted Average Life4 years
Revolving Credit Facility | Facility
Debt Instrument [Line Items]
Outstanding Face Amount $ 0 $ 250,000,000
Carrying Value0 0
Maximum Facility Size $ 250,000,000
Weighted Average Funding Cost1.00%
Weighted Average Life3 years 10 months 24 days
Revolving Credit Facility | Morgan Stanley | Facility
Debt Instrument [Line Items]
Maximum Facility Size100,000,000
Deferred financing/debt issuance costs $ 2,400,000
Loan Facility | BMO | Facility
Debt Instrument [Line Items]
Maximum Facility Size $ 300,000,000 $ 200,000,000
Total Debt
Debt Instrument [Line Items]
Outstanding Face Amount2,100,536,000
Carrying Value2,091,015,000 1,208,090,000
Maximum Facility Size $ 3,450,000,000
Weighted Average Funding Cost3.80%
Weighted Average Life2 years 2 months 12 days
KREF Lending V LLC
Debt Instrument [Line Items]
Outstanding Face Amount $ 870,051,000
KREF Lending V LLC | Secured Financing Agreements | Facility
Debt Instrument [Line Items]
Outstanding Face Amount870,051,000
Carrying Value868,816,000 $ 0
Maximum Facility Size $ 900,000,000 $ 900,000,000
Weighted Average Funding Cost3.80%
Weighted Average Life2 years 1 month 6 days
Outstanding Face Amount $ 1,079,625,000
Carrying Value $ 1,071,094,000
Weighted Average Life4 years 4 months 24 days
Number of extensions | extension5
Extension term1 year
KREF Lending V LLC | Secured Financing Agreements | Initial Buyer | Facility
Debt Instrument [Line Items]
Percentage of total commitment48.90%
LIBOR
Debt Instrument [Line Items]
Interest rate1.76%2.50%
LIBOR | KREF Lending V LLC | Secured Financing Agreements | Facility
Debt Instrument [Line Items]
Interest rate1.90%

Debt Obligations - Repurchase A

Debt Obligations - Repurchase Agreement (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount $ 2,898,717
Wells Fargo
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount468,452 $ 512,298
Net Counterparty Exposure $ 178,827 $ 223,780
Percent of Stockholders' Equity15.90%19.80%
Weighted Average Life2 years 7 months 6 days1 year 6 months
Morgan Stanley
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount $ 394,499 $ 302,595
Net Counterparty Exposure $ 136,764 $ 145,066
Percent of Stockholders' Equity12.20%12.80%
Weighted Average Life2 years 6 months1 year 2 months 12 days
Goldman Sachs Bank USA
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount $ 342,368
Net Counterparty Exposure $ 122,461
Percent of Stockholders' Equity10.80%
Weighted Average Life1 year 4 months 24 days
Total
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount $ 1,733,002
Net Counterparty Exposure $ 519,391
Percent of Stockholders' Equity46.30%
Weighted Average Life2 years 4 months 24 days
Total
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount $ 1,157,261
Net Counterparty Exposure $ 491,307
Percent of Stockholders' Equity43.70%
Weighted Average Life1 year 4 months 24 days
KREF Lending V LLC
Repurchase Agreement Counterparty [Line Items]
Outstanding Face Amount $ 870,051
Net Counterparty Exposure $ 203,800
Percent of Stockholders' Equity18.20%
Weighted Average Life2 years 1 month 6 days
KREF Lending V LLC | Morgan Stanley
Repurchase Agreement Counterparty [Line Items]
Percent of Stockholders' Equity8.90%

Debt Obligations - Term Loan Fa

Debt Obligations - Term Loan Facility (Details) - Facility - Term Loan Facility12 Months Ended
Dec. 31, 2019USD ($)loanDec. 31, 2018USD ($)loanOct. 31, 2018USD ($)Apr. 30, 2018USD ($)
Debt Instrument [Line Items]
Borrowing capacity $ 1,000,000,000 $ 200,000,000
Term (in years)5 years
Weighted average yield, financing provided1.50%1.40%
Debt instrument, interest rate, stated percentage3.20%3.90%
Number of collateralized loans | loan12 10
Outstanding face amount $ 1,003,995,000 $ 941,905,000
Carrying value, collateral assets997,081,000 933,179,000
Face value798,180,000 748,414,000
Carrying value $ 793,872,000 $ 742,959,000
Interest rate1.90%1.80%
Collateralized Assets
Debt Instrument [Line Items]
Interest rate3.00%3.10%

Debt Obligations - Debt Activit

Debt Obligations - Debt Activity (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Debt Instrument, Increase (Decrease), Net [Roll Forward]
Deferred debt issuance costs $ (12,060) $ (26,418) $ (3,412)
Facility | Secured Financing Agreements
Debt Instrument, Increase (Decrease), Net [Roll Forward]
Beginning balance1,951,049 964,800
Principal borrowings3,217,859 2,311,140
Principal repayments/sales/deconsolidation(2,284,819)(1,314,812)
Deferred debt issuance costs(10,238)(15,324)
Amortization of deferred debt issuance costs and premium/discount on debt obligations11,036 5,245
Ending balance $ 2,884,887 $ 1,951,049 $ 964,800

Debt Obligations - Maturities (

Debt Obligations - Maturities (Details) $ in ThousandsDec. 31, 2019USD ($)
Debt Instrument [Line Items]
2020 $ 777,748
2021458,045
20221,246,543
2023208,894
2024207,487
Total2,898,717
Nonrecourse
Debt Instrument [Line Items]
202082,481
2021458,045
2022117,293
202380,325
202460,037
Total798,181
Recourse
Debt Instrument [Line Items]
2020695,267
20210
20221,129,250
2023128,569
2024147,450
Total $ 2,100,536
Maximum
Debt Instrument [Line Items]
Recourse limit25.00%

Debt Obligations - Covenants (D

Debt Obligations - Covenants (Details)12 Months Ended
Dec. 31, 2019USD ($)
Debt Disclosure [Abstract]
Interest income to interest expense ratio1.5
Percent of aggregate cash proceeds and any capital contributions75.00%
Amount of aggregate cash proceeds and any capital contributions $ 880,200,000
Cash liquidity covenant amount (greater of) $ 10,000,000
Cash liquidity covenant, percent of recourse indebtedness (greater of)5.00%
Total indebtedness covenant, percent of total assets, net of VIE liabilities75.00%

Collateralized Loan Obligatio_2

Collateralized Loan Obligation - Schedule of Collateral Assets and Respective Borrowings (Details)1 Months Ended12 Months Ended
Nov. 30, 2018Dec. 31, 2019USD ($)collateral_assetborrowingDec. 31, 2018USD ($)collateral_assetborrowing
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Term of reinvestment feature2 years
Percentage of commercial mortgage loans20.20%24.80%
Percentage of collateralized loan obligations under floating rate loans100.00%100.00%
Collateralized loan obligation, net | Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Financing provided, Count | borrowing1 1
Face amount, Financing provided $ 810,000,000 $ 810,000,000
Carrying value, Financing provided $ 803,376,000 $ 800,346,000
Weighted average yield, financing provided1.80%1.80%
Collateralized Loan Obligations | Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Collateral assets, count | collateral_asset22 24
Face amount, Collateral assets $ 1,000,000,000 $ 1,000,000,000
Carrying value, Collateral assets $ 1,003,285,000 $ 1,005,558,000
Weighted average yield, collateral assets2.80%3.50%
Commercial Mortgage Loans, Held-For-Investment and Cash | Collateralized Loan Obligations | Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Carrying value, Collateral assets $ 1,000,000,000 $ 1,000,000,000

Collateralized Loan Obligatio_3

Collateralized Loan Obligation - Schedule of Assets and Liabilities Included in Consolidated Balance Sheet (Details) - Collateralized Loan Obligations - Variable Interest Entity, Primary Beneficiary - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets $ 1,003,285 $ 1,005,558
Liabilities804,702 804,001
Commercial mortgage loans, held-for-investment, net
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets1,000,000 1,000,000
Accrued interest receivable
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets3,280 4,263
Other assets
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets5 1,295
Collateralized loan obligation, net
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities803,376 800,346
Accrued interest payable
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities1,254 3,341
Accounts payable, accrued expenses and other liabilities
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities $ 72 $ 314

Collateralized Loan Obligatio_4

Collateralized Loan Obligation - Schedule of Net Interest Income Included in Consolidated Statement of Income (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sep. 30, 2018Jun. 30, 2018Mar. 31, 2018Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Variable Interest Entity [Line Items]
Interest income $ 72,417 $ 74,223 $ 62,944 $ 64,751 $ 59,623 $ 51,895 $ 40,363 $ 31,694 $ 274,335 $ 183,575 $ 83,145
Interest expense41,333 45,596 37,089 34,842 32,192 23,337 18,798 10,690 158,860 85,017 21,224
Total net interest income31,084 $ 28,627 $ 25,855 $ 29,909 27,431 $ 28,558 $ 21,565 $ 21,004 115,475 98,558 $ 61,921
Unamortized debt issuance costs9,500 9,200 9,500 9,200
Collateralized Loan Obligations
Variable Interest Entity [Line Items]
Unamortized debt issuance costs6,600 9,700 6,600 9,700
Collateralized Loan Obligations | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income53,896 5,553
Interest expense38,427 3,640
Total net interest income15,469 1,913
Deferred financing costs amortization3,300 300
Unamortized debt issuance costs $ 6,600 $ 9,700 $ 6,600 $ 9,700

Convertible Notes, Net - Narrat

Convertible Notes, Net - Narrative (Details)May 15, 2018$ / sharesMay 31, 2018USD ($)Dec. 31, 2019USD ($)Dec. 31, 2018USD ($)Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Amortization of debt discount $ (20,217,000) $ (10,524,000) $ (3,588,000)
Affiliate expenses21,876,000 22,286,000 $ 15,053,000
Accrued interest payable6,686,000 7,516,000
Convertible Notes Payable
Debt Instrument [Line Items]
Face value143,750,000 143,750,000
Debt issuance costs, gross $ 3,460,000 4,486,000
Convertible Notes Payable | Notes Due in 2023
Debt Instrument [Line Items]
Face value $ 143,750,000
Debt instrument, interest rate, stated percentage6.125%
Debt issuance costs, gross $ 5,100,000
Debt instrument, conversion ratio0.0439386
Debt Instrument, convertible, conversion price (usd per share) | $ / shares $ 22.76
Debt instrument, convertible, conversion premium10.00%
Debt instrument, convertible, conversion price less premium (usd per share) | $ / shares $ 20.69
Amortization of debt discount $ 1,800,000
Debt instrument, interest rate, effective percentage6.50%6.92%
Accrued interest payable $ 1,100,000 1,100,000
KKR Credit & Markets | Convertible Debt
Debt Instrument [Line Items]
Affiliate expenses $ 800,000 $ 800,000

Convertible Notes, Net - Intere

Convertible Notes, Net - Interest Expense, Debt (Details) - Convertible Notes Payable - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Debt Instrument [Line Items]
Cash coupon $ 8,804 $ 5,454
Discount and issuance cost amortization1,386 861
Total interest expense $ 10,190 $ 6,315

Convertible Notes, Net - Net Bo

Convertible Notes, Net - Net Book Value (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Debt Instrument [Line Items]
Net book value $ 139,075 $ 137,688
Convertible Notes Payable
Debt Instrument [Line Items]
Face value143,750 143,750
Deferred financing costs(3,460)(4,486)
Unamortized discount(1,215)(1,576)
Net book value $ 139,075 $ 137,688

Loan Participations Sold - Narr

Loan Participations Sold - Narrative (Details) - USD ($) $ in ThousandsDec. 31, 2019Nov. 30, 2019Oct. 31, 2019May 31, 2019Dec. 31, 2018
Participating Mortgage Loans [Line Items]
Mortgage loan syndicated $ 64,966 $ 85,465
Pari Passu Loan Syndication
Participating Mortgage Loans [Line Items]
Mortgage loan syndicated64,966 $ 65,000 $ 65,000 $ 65,000
Principal balance65,000
Total loan
Participating Mortgage Loans [Line Items]
Mortgage loan syndicated326,881 99,368
Principal balance $ 328,500 $ 328,500 $ 286,200 $ 99,757

Loan Participations Sold (Detai

Loan Participations Sold (Details) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2019USD ($)Sep. 30, 2019USD ($)Jun. 30, 2019USD ($)Mar. 31, 2019USD ($)Dec. 31, 2018USD ($)Sep. 30, 2018USD ($)Jun. 30, 2018USD ($)Mar. 31, 2018USD ($)Dec. 31, 2019USD ($)loanDec. 31, 2018USD ($)loanDec. 31, 2017USD ($)Nov. 30, 2019USD ($)Oct. 31, 2019USD ($)May 31, 2019USD ($)
Participating Mortgage Loans [Line Items]
Mortgage loan syndicated $ 64,966 $ 85,465 $ 64,966 $ 85,465
Interest income31,084 $ 28,627 $ 25,855 $ 29,909 27,431 $ 28,558 $ 21,565 $ 21,004 $ 115,475 $ 98,558 $ 61,921
Total loan
Participating Mortgage Loans [Line Items]
Number of loans sold | loan1 1
Principal Balance328,500 99,757 $ 328,500 $ 99,757 $ 328,500 $ 286,200
Mortgage loan syndicated $ 326,881 $ 99,368 $ 326,881 $ 99,368
Yield/cost2.50%3.00%2.50%3.00%
Pari Passu Loan Syndication
Participating Mortgage Loans [Line Items]
Number of loans sold | loan1
Principal Balance $ 65,000 $ 65,000
Mortgage loan syndicated $ 64,966 $ 64,966 $ 65,000 $ 65,000 $ 65,000
Yield/cost2.50%2.50%
Senior Participation Loan
Participating Mortgage Loans [Line Items]
Number of loans sold | loan1
Principal Balance $ 85,880 $ 85,880
Mortgage loan syndicated $ 85,465 $ 85,465
Yield/cost1.80%1.80%
Partial recourse, amount $ 10,000 $ 10,000
Loan participations
Participating Mortgage Loans [Line Items]
Interest income $ 2,800 3,300
Interest expense $ 2,800 $ 3,300

Variable Interest Entities - Na

Variable Interest Entities - Narrative (Details) $ in Thousands3 Months Ended12 Months Ended
Sep. 30, 2019USD ($)Dec. 31, 2019USD ($)investmentDec. 31, 2018USD ($)Dec. 31, 2017USD ($)
Variable Interest Entity [Line Items]
Proceeds from sales of commercial mortgage-backed securities $ 9,784 $ 112,747 $ 0
Number of equity method investments | investment2
Equity method investments $ 37,469 30,734
CMBS | Primary Beneficiary
Variable Interest Entity [Line Items]
Unpaid principal balance34,900
Fair value12,500
Proceeds from sales of commercial mortgage-backed securities $ 9,800
Loss on sale of CMBS $ 2,700
Face amount of investment sold $ 10,000
Fair value of sold investment $ 12,500
RECOP | Not Primary Beneficiary
Variable Interest Entity [Line Items]
Ownership percentage in VIE3.50%
KKR Manager | Not Primary Beneficiary
Variable Interest Entity [Line Items]
Ownership percentage in VIE4.70%

Variable Interest Entities - Re

Variable Interest Entities - Recognized Trusts' Assets and Liabilities (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018
Variable Interest Entity [Line Items]
Accrued interest receivable $ 16,305 $ 16,178
Accrued interest payable6,686 7,516
Primary Beneficiary
Variable Interest Entity [Line Items]
Commercial mortgage loans held in variable interest entities, at fair value0 1,092,986
Accrued interest receivable0 4,005
Variable interest entity liabilities, at fair value0 1,080,255
Accrued interest payable $ 0 $ 3,818

Variable Interest Entities - Ch

Variable Interest Entities - Change in Net Assets Related to Consolidated Variable Interest Entities (Details) - USD ($) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sep. 30, 2018Jun. 30, 2018Mar. 31, 2018Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Variable Interest Entity [Line Items]
Net interest earned $ 31,084 $ 28,627 $ 25,855 $ 29,909 $ 27,431 $ 28,558 $ 21,565 $ 21,004 $ 115,475 $ 98,558 $ 61,921
Change in net assets related to CMBS consolidated variable interest entities1,665 2,588 15,845
Commercial Mortgage Backed Securities | Primary Beneficiary
Variable Interest Entity [Line Items]
Net interest earned1,665 5,152 12,470
Unrealized gain (loss)0 (2,564)3,375
Change in net assets related to CMBS consolidated variable interest entities $ 1,665 $ 2,588 $ 15,845

Variable Interest Entities - Co

Variable Interest Entities - Concentration of Credit Risk (Details) - Variable Interest Entities, CMBS12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Geography
Concentration Risk [Line Items]
Concentration of credit risk0.00%100.00%
Geography | California
Concentration Risk [Line Items]
Concentration of credit risk0.00%33.40%
Geography | Texas
Concentration Risk [Line Items]
Concentration of credit risk0.00%11.10%
Geography | New York
Concentration Risk [Line Items]
Concentration of credit risk0.00%8.30%
Geography | Missouri
Concentration Risk [Line Items]
Concentration of credit risk0.00%5.40%
Geography | Pennsylvania
Concentration Risk [Line Items]
Concentration of credit risk0.00%5.10%
Geography | Florida
Concentration Risk [Line Items]
Concentration of credit risk0.00%4.20%
Geography | Massachusetts
Concentration Risk [Line Items]
Concentration of credit risk0.00%3.60%
Geography | Illinois
Concentration Risk [Line Items]
Concentration of credit risk0.00%2.70%
Geography | Georgia
Concentration Risk [Line Items]
Concentration of credit risk0.00%2.60%
Geography | New Hampshire
Concentration Risk [Line Items]
Concentration of credit risk0.00%2.40%
Geography | Delaware
Concentration Risk [Line Items]
Concentration of credit risk0.00%1.90%
Geography | Virginia
Concentration Risk [Line Items]
Concentration of credit risk0.00%1.70%
Geography | Other U.S.
Concentration Risk [Line Items]
Concentration of credit risk0.00%17.60%
Collateral Property Type
Concentration Risk [Line Items]
Concentration of credit risk0.00%100.00%
Collateral Property Type | Retail
Concentration Risk [Line Items]
Concentration of credit risk0.00%28.30%
Collateral Property Type | Office
Concentration Risk [Line Items]
Concentration of credit risk0.00%27.40%
Collateral Property Type | Hospitality
Concentration Risk [Line Items]
Concentration of credit risk0.00%13.00%
Collateral Property Type | Multifamily
Concentration Risk [Line Items]
Concentration of credit risk0.00%9.90%
Collateral Property Type | Industrial/ Flex
Concentration Risk [Line Items]
Concentration of credit risk0.00%9.60%
Collateral Property Type | Self Storage
Concentration Risk [Line Items]
Concentration of credit risk0.00%5.70%
Collateral Property Type | Mixed Use
Concentration Risk [Line Items]
Concentration of credit risk0.00%3.90%
Collateral Property Type | Mobile Home
Concentration Risk [Line Items]
Concentration of credit risk0.00%1.70%
Collateral Property Type | Other
Concentration Risk [Line Items]
Concentration of credit risk0.00%0.50%

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($)Jan. 23, 2015Nov. 30, 2018Aug. 31, 2018May 31, 2017Apr. 30, 2017Feb. 28, 2017Mar. 31, 2016Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017Jun. 14, 2019Feb. 22, 2019May 31, 2018Dec. 31, 2016Dec. 31, 2015Oct. 02, 2014
Subsidiary, Sale of Stock [Line Items]
Common stock and preferred stock, shares authorized (shares)350,000,000
Common stock par value (usd per share) $ 0.01 $ 0.01 $ 0.01
Common stock authorized (shares)300,000,000 300,000,000 300,000,000
Preferred stock authorized (shares)50,000,000 50,000,000 50,000,000
Value of stock acquired per transaction for LLC interest allocation $ 100,000,000
Common stock issued (shares)57,486,583 57,596,217
Common stock outstanding (shares)57,486,583 57,596,217
Accumulated shares repurchased (shares)1,862,689 1,649,880
Stock repurchase program, authorized amount (up to) $ 100,000,000 $ 100,000,000
Stock repurchase program, remaining authorized repurchase amount $ 50,000,000
Treasury stock, shares, acquired (shares)212,809 1,623,482
Treasury stock acquired, average cost per share (dollars per share) $ 19.25 $ 19.30
Repurchase of common stock $ 4,106,000 $ 31,347,000 $ 523,000
Preferred stock par value (usd per share) $ 0.01 $ 0.01
Value of stock redeemed $ 125,000
Common Stock
Subsidiary, Sale of Stock [Line Items]
Share price (usd per share) $ 19.90
Sale of stock, number of shares issued in transaction5,000,000
Cumulative Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (shares)125
Preferred stock par value (usd per share) $ 1,000 $ 1,000
Dividend rate12.50%
Stock redeemed (shares)125
Value of stock redeemed $ 100,000
Redeemable Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (shares)1
Preferred stock par value (usd per share) $ 0.01
Preferred stock share price (usd per share) $ 0.01
Liquidation preference (usd per share)0.01
Redemption price (usd per share) $ 0.01
Voting Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (shares)1
Preferred stock share price (usd per share) $ 20
Ownership percentage to retain voting rights25.00%
Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock issued related to vesting of restricted stock units (shares)103,175 34,259
Common stock issued related to vesting RSUs (shares)137,434 34,259
Treasury stock, shares, acquired (shares)212,809 1,623,482 26,398
Repurchase of common stock $ 2,000 $ 16,000
Issuance of stock (shares)5,500,000 29,553,446
Common Stock, Net
Subsidiary, Sale of Stock [Line Items]
Common stock issued (shares)59,211,838 53,711,838 24,158,392 13,636,416
KKR Real Estate FInance Manager L.L.C
Subsidiary, Sale of Stock [Line Items]
Common stock, percent of limited liability company interest6.67%
KREF
Subsidiary, Sale of Stock [Line Items]
Common stock issued related to vesting of restricted stock units (shares)57,486,583 57,596,217
KREF | Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock issued related to vesting of restricted stock units (shares)59,211,838 59,211,838
KREF | KKR
Subsidiary, Sale of Stock [Line Items]
Common stock (shares)22,008,616 22,008,616
Issued and outstanding common stock owned, percentage38.00%38.00%
KKR Real Estate FInance Trust Inc. on Behalf of Third Party | KKR
Subsidiary, Sale of Stock [Line Items]
Common stock (shares)2,008,616
Private Placement
Subsidiary, Sale of Stock [Line Items]
Capital commitment $ 277,400,000
Share price (usd per share) $ 20
Common stock issued (shares)21,838
Private Placement | Common Stock
Subsidiary, Sale of Stock [Line Items]
Share price (usd per share) $ 20
Sale of stock, number of shares issued in transaction10,379,738 7,386,208
Sale of stock, consideration received on transaction $ 207,600,000 $ 147,700,000
Private Placement, Third-parties and Current and Former Employees of, and Consultants to, KKR
Subsidiary, Sale of Stock [Line Items]
Capital commitment $ 190,100,000
Private Placement, Third-parties
Subsidiary, Sale of Stock [Line Items]
Capital commitment178,400,000
Private Placement, Current and Former Employees of, and Consultants to, KKR
Subsidiary, Sale of Stock [Line Items]
Capital commitment11,800,000
Private Placement, KKR Fund Holdings
Subsidiary, Sale of Stock [Line Items]
Capital commitment400,000,000
Private Placement, Third-parties Subsequent to Private Placement Completion
Subsidiary, Sale of Stock [Line Items]
Capital commitment $ 248,000,000
IPO | Common Stock
Subsidiary, Sale of Stock [Line Items]
Share price (usd per share) $ 20.50
Sale of stock, number of shares issued in transaction11,787,500
Underwritten offering | Common Stock
Subsidiary, Sale of Stock [Line Items]
Share price (usd per share) $ 20
Sale of stock, number of shares issued in transaction4,500,000 1,537,500
Sale of stock, consideration received on transaction $ 9,400,000 $ 98,300,000
Underwritten offering sold by the Company | Common Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction500,000
Underwritten offering sold by third-party investors | Common Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction4,000,000
ATM
Subsidiary, Sale of Stock [Line Items]
Stock repurchase program, authorized amount (up to) $ 100,000,000

Equity - Schedule of Common Sto

Equity - Schedule of Common Stock Issued (Details) - USD ($) $ in Thousands1 Months Ended12 Months Ended
Mar. 31, 2016Dec. 31, 2018Dec. 31, 2017Dec. 31, 2016
Common Stock Issuance [Roll Forward]
Ending balance (shares)57,596,217
Beginning balance $ 1,059,145 $ 505,037
Issuance of stock109,500 580,306
Ending balance $ 1,132,342 $ 1,059,145 $ 505,037
Common Stock, Net
Common Stock Issuance [Roll Forward]
Beginning balance (shares)53,711,838 24,158,392 13,636,416
Ending balance (shares)59,211,838 53,711,838 24,158,392
Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Beginning balance $ 1,054,346 $ 479,733 $ 272,728
Ending balance $ 1,162,023 $ 1,054,346 $ 479,733
Private Placement
Common Stock Issuance [Roll Forward]
Ending balance (shares)21,838
February 2016 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)2,000,000
February 2016 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 40,000
May 2016 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)3,000,138
May 2016 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 57,130
June 2016 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)21,838
June 2016 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 0
August 2016 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)5,500,000
August 2016 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 109,875
February 2017 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)7,386,208
February 2017 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 147,662
April 2017 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)10,379,738
April 2017 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 207,595
May 2017- Initial Public Offering | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)11,787,500
May 2017- Initial Public Offering | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 219,356
August 2018 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)5,000,000
August 2018 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 98,326
November 2018 | Common Stock, Net
Common Stock Issuance [Roll Forward]
Issuance of stock (shares)500,000
November 2018 | Common Stock Including Additional Paid in Capital & Offering Costs
Common Stock Issuance [Roll Forward]
Issuance of stock $ 9,351

Equity - Schedule of Dividends

Equity - Schedule of Dividends Declared (Details) - USD ($) $ / shares in Units, $ in ThousandsJan. 20, 2020Jan. 15, 2020Dec. 31, 2019Dec. 16, 2019Oct. 16, 2019Sep. 30, 2019Sep. 13, 2019Jul. 15, 2019Jun. 28, 2019Jun. 14, 2019Apr. 12, 2019Mar. 29, 2019Mar. 18, 2019Jan. 11, 2019Dec. 28, 2018Dec. 17, 2018Oct. 12, 2018Sep. 28, 2018Sep. 10, 2018Jul. 13, 2018Jun. 29, 2018May 07, 2018Apr. 13, 2018Mar. 29, 2018Mar. 09, 2018Jan. 31, 2020Dec. 31, 2019Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Class of Stock [Line Items]
Declaration DateDec. 16,
2019
Sep. 13,
2019
Jun. 14,
2019
Mar. 18,
2019
Dec. 17,
2018
Sep. 10,
2018
May 7,
2018
Mar. 9,
2018
Record DateDec. 31,
2019
Sep. 30,
2019
Jun. 28,
2019
Mar. 29,
2019
Dec. 28,
2018
Sep. 28,
2018
Jun. 29,
2018
Mar. 29,
2018
Payment DateOct. 16,
2019
Jul. 15,
2019
Apr. 12,
2019
Jan. 11,
2019
Oct. 12,
2018
Jul. 13,
2018
Apr. 13,
2018
Dividend declared per share of common stock (usd per share) $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.40 $ 0.43 $ 1.72 $ 1.69 $ 1.62
Dividends declared $ 24,692 $ 24,688 $ 24,761 $ 24,813 $ 24,951 $ 22,804 $ 21,230 $ 98,860 $ 93,798 $ 70,452
Subsequent Event
Class of Stock [Line Items]
Payment DateJan. 15,
2020
Common Stock, Dividends, Per Share, Cash Paid $ 0.43
Dividends declared $ 24,719 $ 24,700

Equity - Earnings Per Share (De

Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sep. 30, 2018Jun. 30, 2018Mar. 31, 2018Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Numerator
Net income (loss) attributable to common stockholders $ 24,789 $ 23,617 $ 17,381 $ 24,705 $ 19,709 $ 20,821 $ 23,483 $ 23,280 $ 90,492 $ 87,293 $ 58,818
Denominator
Basic weighted average common shares outstanding (shares)57,486,583 57,420,140 57,412,522 57,387,386 58,178,944 55,903,126 53,064,585 53,337,915 57,426,912 55,136,548 45,320,358
Dilutive restricted stock units (shares)105,578 34,513 1,002
Diluted weighted average common shares outstanding (shares)57,595,424 57,549,066 57,507,219 57,477,234 58,253,821 55,921,655 53,069,866 53,378,467 57,532,490 55,171,061 45,321,360
Net income (loss) attributable to common stockholders, per:
Basic common share (usd per share) $ 0.43 $ 0.41 $ 0.30 $ 0.43 $ 1.58 $ 1.58 $ 1.30
Diluted common share (usd per share) $ 0.43 $ 0.41 $ 0.30 $ 0.43 $ 1.57 $ 1.58 $ 1.30

Equity - Share Repurchase Progr

Equity - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Equity [Abstract]
Treasury stock, shares, acquired212,809 1,623,482
Treasury stock acquired, average cost per share (dollars per share) $ 19.25 $ 19.30
Treasury stock, value, acquired $ 4,106 $ 31,347 $ 523
Repurchase of common stock $ 4,106 $ 31,347 $ 523

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) $ in Thousands12 Months Ended
Dec. 31, 2019USD ($)periodsharesDec. 31, 2018USD ($)Dec. 31, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period1 year 3 months 18 days
Shares delivered | shares103,175
Reduction of capital $ 1,400 $ 8,140
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock based compensation expense $ 11,300
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of consecutive vesting periods | period3
Vesting period1 year
Shares delivered | shares175,566
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense $ 4,000 $ 2,000 $ 100
Director | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period1 year

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units12 Months Ended
Dec. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Unvested, beginning balance (in shares) | shares459,179
Units granted (in shares) | shares362,832
Units vested (in shares) | shares(175,566)
Units Forfeited/ cancelled (in shares) | shares(5,231)
Unvested, ending balance (in shares) | shares641,214
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Unvested, beginning balance, weighted average grant date fair value (usd per share) | $ / shares $ 19.33
Units granted, weighted average grant date fair value (usd per share) | $ / shares20.64
Units vested, weighted average grant date fair value (usd per share) | $ / shares19.49
Units Forfeited/ cancelled, weighted average grant date fair value (usd per share) | $ / shares19.68
Unvested. ending balance, weighted average grant date fair value (usd per share) | $ / shares $ 20.02

Stock-based Compensation - RSU

Stock-based Compensation - RSU Vesting (Details) - Restricted Stock Units - sharesDec. 31, 2019Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2020292,165
2021232,383
2022116,666
Total641,214 459,179

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions1 Months Ended12 Months Ended
Jan. 31, 2017Dec. 31, 2019
Future Funding Commitment Related to Commercial Mortgage Loan Investments
Long-term Purchase Commitment [Line Items]
Capital commitment $ 616.4
RECOP I | Variable Interest Entity, Not Primary Beneficiary | Commitment to Invest in Aggregator Vehicle
Long-term Purchase Commitment [Line Items]
Capital commitment $ 40 $ 4.3

Related Party Transactions - Na

Related Party Transactions - Narrative (Details)1 Months Ended3 Months Ended12 Months Ended
May 31, 2018USD ($)Dec. 31, 2018USD ($)Dec. 31, 2019USD ($)quartersharesDec. 31, 2018USD ($)sharesDec. 31, 2017USD ($)
Related Party Transaction [Line Items]
Affiliate fee $ 21,876,000 $ 22,286,000 $ 15,053,000
Management Incentive Plan
Related Party Transaction [Line Items]
Percent of issued and outstanding shares of common stock available for awards (no more than)7.50%
Number of shares available for awards (shares) | shares4,028,387
Non-Employee Director | Management Incentive Plan
Related Party Transaction [Line Items]
Maximum number of shares subject to award grants together with cash fees paid $ 1,000,000
Maximum amount that can be paid to any participant pursuant to a performance compensation award $ 10,000,000
Management Agreement
Related Party Transaction [Line Items]
Management agreement term3 years
Period of automatic renewal under management agreement1 year
Trailing average period applied to termination fee multiple under management agreement24 months
Termination fee3
Quarterly Management Fee
Related Party Transaction [Line Items]
Affiliate fee $ 62,500
Management fee as a percent of weighted average adjusted equity (greater of)0.375%
Quarterly Incentive Compensation
Related Party Transaction [Line Items]
Incentive compensation fee percent20.00%
Period of adjusted earnings12 months
Percent of trailing 12 month weighted average adjusted equity7.00%
Period of weighted average adjusted equity12 months
Number of quarters worth of compensation already paid | quarter3
Restricted Stock Units
Related Party Transaction [Line Items]
Units granted (in shares) | shares362,832
Restricted Stock Units | Management Incentive Plan
Related Party Transaction [Line Items]
Units granted (in shares) | shares362,832 361,878
Common Stock | Management Incentive Plan
Related Party Transaction [Line Items]
Number of shares available for awards (shares) | shares3,249,739
KCM | Structuring Fees in Connection with Revolver
Related Party Transaction [Line Items]
Affiliate fee $ 1,100,000 $ 800,000
Structuring fee, percent0.75%
Convertible Debt | KCM
Related Party Transaction [Line Items]
Affiliate fee $ 800,000 800,000
Structuring fee, percent0.75%
Amortization of deferred debt issuance costs and premium/discount on debt obligations5,100,000
Maximum commissions to be paid to sales agent as a percentage of gross sales price per share (usd per share)2.00%
Term Loan Facility
Related Party Transaction [Line Items]
Affiliate fee $ 1,500,000 6,000,000
BMO
Related Party Transaction [Line Items]
Affiliate fee $ 200,000 $ 400,000
Structuring fee, percent0.35%
Collateralized Loan Obligations
Related Party Transaction [Line Items]
Placement agent fee $ 900,000
Placement agent fee, percent0.105%

Related Party Transactions - Ex

Related Party Transactions - Expenses Incurred and Amounts Owed to Affiliates (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Related Party Transaction [Line Items]
Due to affiliates $ 5,917 $ 4,712
Affiliate expenses21,876 22,286 $ 15,053
Management fees
Related Party Transaction [Line Items]
Due to affiliates4,280 4,330
Affiliate expenses17,135 16,346 13,492
Incentive compensation
Related Party Transaction [Line Items]
Affiliate expenses3,272 4,756 0
Expense reimbursements and other
Related Party Transaction [Line Items]
Due to affiliates1,637 382
Affiliate expenses1,469 1,184 1,561
Out-of-pocket costs reimbursed
Related Party Transaction [Line Items]
Affiliate expenses $ 1,800 $ 2,700 $ 1,600

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in ThousandsDec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents $ 67,619 $ 86,531
Commercial mortgage loans, held-for-investment, net, carrying value4,931,042 4,001,820
Equity method investments37,469 30,734
Commercial mortgage loans held in variable interest entities, carrying value0 1,092,986
Total Assets5,057,018 5,231,845
Secured financing agreements, net, principal balance2,898,717
Secured financing agreements, net, carrying value2,884,887 1,951,049
Collateralized loan obligation, net, carrying value803,376 800,346
Convertible notes, net139,075 137,688
Loan participations sold, net, carrying value64,966 85,465
Variable interest entity liabilities, carrying value0 1,080,255
Total Liabilities3,933,306 4,096,657
Liabilities, fair value810,867
Unamortized origination discounts and deferred nonrefundable fees29,700 24,900
Unamortized debt issuance costs9,500 9,200
CLO loan participation4,931,042 4,001,820 $ 1,888,510
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents67,619 86,531
Cash and cash equivalents, fair value67,619 86,531
Commercial mortgage loans, held-for-investment, net, principal balance4,960,698 4,026,713
Commercial mortgage loans, held-for-investment, net, carrying value4,931,042 4,001,820
Commercial mortgage loans, held-for-investment, net, fair value4,937,808 4,007,316
Equity method investments37,469 30,734
Equity method investments37,469 30,734
Commercial mortgage loans held in variable interest entities, principal balance0 1,127,926
Commercial mortgage loans held in variable interest entities, carrying value0 1,092,986
Commercial mortgage loans held in variable interest entities, fair value0 1,092,986
Assets, principal balance5,065,786 5,271,904
Total Assets5,036,130 5,212,071
Assets, fair value5,042,896 5,217,567
Secured financing agreements, net, principal balance2,898,716 1,965,675
Secured financing agreements, net, carrying value2,884,887 1,951,049
Secured financing agreements, net, fair value2,898,716 1,965,675
Collateralized loan obligation, net, principal balance810,000 810,000
Collateralized loan obligation, net, carrying value803,376 800,346
Collateralized loan obligation, net, fair value810,867 810,000
Convertible notes, principal balance143,750 143,750
Convertible notes, net139,075 137,688
Convertible notes, net, fair value150,719 142,107
Loan participations sold, net, principal balance65,000 85,880
Loan participations sold, net, carrying value64,966 85,465
Loan participations sold, net, fair value64,966 85,295
Variable interest entity liabilities, principal balance0 1,092,984
Variable interest entity liabilities, carrying value0 1,080,255
Variable interest entity liabilities, fair value0 1,080,255
Liabilities, principal balance3,917,466 4,098,289
Total Liabilities3,892,304 4,054,803
Liabilities, fair value3,925,268 4,083,332
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value67,619 86,531
Commercial mortgage loans, held-for-investment, net, fair value0 0
Equity method investments0 0
Commercial mortgage loans held in variable interest entities, fair value0 0
Assets, fair value67,619 86,531
Secured financing agreements, net, fair value0 0
Collateralized loan obligation, net, fair value0 0
Convertible notes, net, fair value150,719 142,107
Loan participations sold, net, fair value0 0
Variable interest entity liabilities, fair value0 0
Liabilities, fair value150,719 142,107
Fair Value, Measurements, Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value0 0
Commercial mortgage loans, held-for-investment, net, fair value0 0
Equity method investments0 0
Commercial mortgage loans held in variable interest entities, fair value0 0
Assets, fair value0 0
Secured financing agreements, net, fair value0 0
Collateralized loan obligation, net, fair value0 0
Convertible notes, net, fair value0 0
Loan participations sold, net, fair value0 0
Variable interest entity liabilities, fair value0 0
Liabilities, fair value0 0
Fair Value, Measurements, Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value0 0
Commercial mortgage loans, held-for-investment, net, fair value4,937,808 4,007,316
Equity method investments37,469 30,734
Commercial mortgage loans held in variable interest entities, fair value0 1,092,986
Assets, fair value4,975,277 5,131,036
Secured financing agreements, net, fair value2,898,716 1,965,675
Collateralized loan obligation, net, fair value810,867 810,000
Convertible notes, net, fair value0 0
Loan participations sold, net, fair value64,966 85,295
Variable interest entity liabilities, fair value0 1,080,255
Liabilities, fair value3,774,549 3,941,225
Commercial Mortgage Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unamortized debt issuance costs13,800 14,600
Collateralized Loan Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans, held-for-investment, net, carrying value1,000,000 1,000,000
Unamortized debt issuance costs6,600 9,700
Pari Passu Loan Syndication
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial mortgage loans, held-for-investment, net, carrying value65,000
Commercial mortgage loans, held-for-investment, net, fair value $ 65,000
Senior Participation Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loan participations sold, net, carrying value85,465
CLO loan participation85,600
Mortgage loans on real estate, fair value $ 85,300

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loan syndicated $ 64,966 $ 85,465
Assets
Realized gain (loss)13,000
Liabilities
Realized gain (loss)0
Net
Beginning balance12,731 115,885
Realized gain (loss)(2,759)13,000
Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs0 (2,564)
Purchases0
Sale/Deconsolidation/Repayments(9,784)(112,747)
Other(188)(843)
Ending balance0 12,731
Variable Interest Entity, Primary Beneficiary
Liabilities
Beginning balance1,080,255 5,256,926
Realized gain (loss)0
Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs(2,322)(96,426)
Purchases0
Sale/Deconsolidation/Repayments(1,074,115)(4,065,371)
Other(3,818)(14,874)
Ending balance0 1,080,255
Variable Interest Entity, Primary Beneficiary | Commercial Mortgage Loans Held in Variable Interest Entities, at Fair Value
Assets
Beginning balance1,092,986 5,372,811
Realized gain (loss)(2,759)
Unrealized gain (loss) included in change in net assets related to CMBS consolidated VIEs(2,322)(98,990)
Purchases0
Sale/Deconsolidation/Repayments(1,083,899)(4,178,118)
Other(4,006)(15,717)
Ending balance0 1,092,986
Senior Participation Loan
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loan syndicated $ 85,465
Vertical Loan Syndication
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage loan syndicated $ 65,000

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Contributions to equity method investment $ 6,245 $ 15,611 $ 33,588
Income from equity method investments4,568 3,065 $ 875
RECOP I
Schedule of Equity Method Investments [Line Items]
Contributions to equity method investment6,300 15,600
Proceeds received on distributions3,200 1,700
Income from equity method investments $ 3,700 $ 2,300

Fair Value of Financial Instr_6

Fair Value of Financial Instruments - Unobservable Inputs (Details) $ in ThousandsDec. 31, 2019USD ($)Nov. 30, 2019USD ($)Oct. 31, 2019USD ($)May 31, 2019USD ($)Dec. 31, 2018USD ($)
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Liabilities, fair value $ 810,867
Equity method investments37,469 $ 30,734
Mortgage loan syndicated64,966 $ 85,465
Level 3 | Discounted Cash Flow
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Equity method investments37,200
CMBS
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Assets, fair value4,937,808
CMBS | Loans held-for-investment
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Commercial mortgage loans, held-for-investment, net $ 4,937,808
CMBS | Discount Rate | Level 3 | Minimum | Discounted Cash Flow | Loans held-for-investment
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Weighted average, measurement0.042
CMBS | Discount Rate | Level 3 | Maximum | Discounted Cash Flow | Loans held-for-investment
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Weighted average, measurement0.103
CMBS | Discount Rate | Level 3 | Weighted Average | Discounted Cash Flow | Loans held-for-investment
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Weighted average, measurement0.052
Collateralized Loan Obligation, Net | Long-term Debt
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Collateralized loan obligation, net, fair value $ 810,867
Collateralized Loan Obligation, Net | Yield | Level 3 | Minimum | Discounted Cash Flow | Long-term Debt
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Weighted average, measurement0.026
Collateralized Loan Obligation, Net | Yield | Level 3 | Maximum | Discounted Cash Flow | Long-term Debt
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Weighted average, measurement0.040
Collateralized Loan Obligation, Net | Yield | Level 3 | Weighted Average | Discounted Cash Flow | Long-term Debt
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Weighted average, measurement0.029
Vertical Loan Syndication
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage loan syndicated $ 65,000
Pari Passu Loan Syndication
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Mortgage loan syndicated $ 64,966 $ 65,000 $ 65,000 $ 65,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)3 Months Ended12 Months Ended
Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sep. 30, 2018Jun. 30, 2018Mar. 31, 2018Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income tax expense (benefit) $ 213,000 $ 77,000 $ 280,000 $ 9,000 $ (297,000) $ 85,000 $ (33,000) $ 175,000 $ 579,000 $ (70,000) $ 1,102,000
Deferred tax assets, net $ 0 $ 0

Income Taxes Common Stock Distr

Income Taxes Common Stock Distributions (Details)Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Income Tax Disclosure [Abstract]
Common stock distributions, percentage taxed as ordinary income99.10%88.30%100.00%
Common stock distributions, percentage taxed as qualified dividends1.60%0.60%0.00%
Common stock distributions, percentage taxed as long term capital gain0.90%11.70%0.00%
Common stock distributions, percentage taxed as return of capital0.00%0.00%0.00%

Subsequent Events - Schedule of

Subsequent Events - Schedule of Senior Notes (Details) - USD ($) $ in Thousands1 Months Ended12 Months Ended
Feb. 29, 2020Jan. 31, 2020Dec. 31, 2019Dec. 31, 2018Feb. 27, 2020Dec. 31, 2017
Subsequent Event [Line Items]
Initial Face Amount Funded $ 4,931,042 $ 4,001,820 $ 1,888,510
Senior loans | Subsequent Event
Subsequent Event [Line Items]
Maximum Face Amount $ 352,500
Initial Face Amount Funded281,390
LTV66.00%
Senior Loan, Plano, TX | Senior loans | Subsequent Event
Subsequent Event [Line Items]
Maximum Face Amount226,500
Initial Face Amount Funded160,554
LTV64.00%
Senior Loan, San Diego, CA | Senior loans | Subsequent Event
Subsequent Event [Line Items]
Maximum Face Amount106,000
Initial Face Amount Funded $ 106,000
LTV71.00%
Mezzanine Loan, Westbury, NY | Mezzanine loans | Subsequent Event
Subsequent Event [Line Items]
Maximum Face Amount $ 20,000
Initial Face Amount Funded $ 14,836
LTV65.00%
LIBOR
Subsequent Event [Line Items]
Interest rate1.76%2.50%
LIBOR | Subsequent Event
Subsequent Event [Line Items]
Interest rate3.20%
LIBOR | Senior Loan, Plano, TX | Senior loans | Subsequent Event
Subsequent Event [Line Items]
Interest rate2.65%
LIBOR | Senior Loan, San Diego, CA | Senior loans | Subsequent Event
Subsequent Event [Line Items]
Interest rate3.30%
LIBOR | Mezzanine Loan, Westbury, NY | Mezzanine loans | Subsequent Event
Subsequent Event [Line Items]
Interest rate9.00%

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details) - USD ($)Feb. 14, 2020Jan. 20, 2020Dec. 31, 2019Sep. 30, 2019Sep. 13, 2019Jun. 28, 2019Jun. 14, 2019Mar. 29, 2019Mar. 18, 2019Dec. 28, 2018Dec. 17, 2018Sep. 28, 2018Sep. 10, 2018Jun. 29, 2018May 07, 2018Mar. 29, 2018Mar. 09, 2018Jan. 31, 2020Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017May 31, 2019
Subsequent Event [Line Items]
Funding for loans $ 2,864,810,000 $ 2,540,685,000 $ 1,201,778,000
Proceeds from loan paydowns1,934,893,000 446,336,000 94,600,000
Outstanding Face Amount $ 2,898,717,000 2,898,717,000
Dividends paid $ 24,692,000 $ 24,688,000 $ 24,761,000 $ 24,813,000 $ 24,951,000 $ 22,804,000 $ 21,230,000 98,860,000 93,798,000 $ 70,452,000
Dividends payable, date of recordDec. 31,
2019
Sep. 30,
2019
Jun. 28,
2019
Mar. 29,
2019
Dec. 28,
2018
Sep. 28,
2018
Jun. 29,
2018
Mar. 29,
2018
Subsequent Event
Subsequent Event [Line Items]
Proceeds from loan paydowns $ 107,500,000
Dividends paid $ 24,719,000 $ 24,700,000
Dividend paid (usd per share) $ 0.43
Senior loans | Subsequent Event
Subsequent Event [Line Items]
Funding for loans24,400,000
Revolving Credit Facility | Subsequent Event
Subsequent Event [Line Items]
Outstanding Face Amount335,000,000
Secured Financing Agreements | Subsequent Event
Subsequent Event [Line Items]
Principal borrowings $ 207,000,000
Line of Credit | Revolving Credit Facility
Subsequent Event [Line Items]
Outstanding Face Amount $ 0 0 $ 250,000,000
Line of Credit | Secured Financing Agreements
Subsequent Event [Line Items]
Principal borrowings $ 3,217,859,000 $ 2,311,140,000

Summary Quarterly Consolidate_3

Summary Quarterly Consolidated Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2018Sep. 30, 2018Jun. 30, 2018Mar. 31, 2018Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]
Interest income $ 72,417 $ 74,223 $ 62,944 $ 64,751 $ 59,623 $ 51,895 $ 40,363 $ 31,694 $ 274,335 $ 183,575 $ 83,145
Interest expense41,333 45,596 37,089 34,842 32,192 23,337 18,798 10,690 158,860 85,017 21,224
Total net interest income31,084 28,627 25,855 29,909 27,431 28,558 21,565 21,004 115,475 98,558 61,921
Other Income (Loss)1,772 2,289 (12)1,949 1,310 1,602 7,983 9,198 5,998 20,093 17,688
Operating Expenses8,130 6,984 8,214 7,601 7,610 9,103 5,599 6,602 30,929 28,914 18,428
Income (Loss) Before Income Taxes, Noncontrolling Interests and Preferred Dividends24,726 23,932 17,629 24,257 21,131 21,057 23,949 23,600 90,544 89,737 61,181
Income tax expense (benefit)213 77 280 9 (297)85 (33)175 579 (70)1,102
Net Income (Loss)24,513 23,855 17,349 24,248 21,428 20,972 23,982 23,425 89,965 89,807 60,079
Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture0 0 0 0 0 0 29 34 0 63 216
Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture0 0 0 0 0 0 0 0 0 0 801
Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries24,513 23,855 17,349 24,248 21,428 20,972 23,953 23,391 89,965 89,744 59,062
Preferred Stock Dividends and Redemption Value Adjustment(276)238 (32)(457)1,719 151 470 111 (527)2,451 244
Net Income (Loss) Attributable to Common Stockholders $ 24,789 $ 23,617 $ 17,381 $ 24,705 $ 19,709 $ 20,821 $ 23,483 $ 23,280 $ 90,492 $ 87,293 $ 58,818
Basic (usd per share) $ 0.43 $ 0.41 $ 0.30 $ 0.43 $ 1.58 $ 1.58 $ 1.30
Diluted (usd per share) $ 0.43 $ 0.41 $ 0.30 $ 0.43 $ 1.57 1.58 $ 1.30
Net Income (Loss) Per Share of Common Stock, basic and diluted (usd per share) $ 0.34 $ 0.37 $ 0.44 $ 0.44 $ 1.58
Basic weighted average common shares outstanding (shares)57,486,583 57,420,140 57,412,522 57,387,386 58,178,944 55,903,126 53,064,585 53,337,915 57,426,912 55,136,548 45,320,358
Diluted weighted average common shares outstanding (shares)57,595,424 57,549,066 57,507,219 57,477,234 58,253,821 55,921,655 53,069,866 53,378,467 57,532,490 55,171,061 45,321,360

Schedule IV - Mortgage Loans _2

Schedule IV - Mortgage Loans on Real Estate (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2019Dec. 31, 2018Dec. 31, 2017
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value $ 4,931,042 $ 4,001,820 $ 1,888,510
Senior loans | Senior Loan 1, Brooklyn, NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount358,300
Carrying Value356,000
Senior loans | Senior Loan 2, Arlington, VA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount328,500
Carrying Value326,900
Senior loans | Senior Loan 3, Chicago, IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount318,700
Carrying Value316,300
Senior loans | Senior Loan 4, Boston, MA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount204,000
Carrying Value203,100
Senior loans | Senior Loan 5, Various
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount193,700
Carrying Value192,000
Senior loans | Senior Loan 6, New York, NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount187,500
Carrying Value185,900
Senior loans | Senior Loan 7, Minneapolis, MN
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount185,100
Carrying Value184,700
Senior loans | Senior Loan 8, Seattle, WA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount168,000
Carrying Value167,400
Senior loans | Senior Loan 9, Philadelphia, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount154,600
Carrying Value154,200
Senior loans | Senior Loan 10, Philadelphia, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount152,000
Carrying Value150,900
Senior loans | Senior Loan 11, North Bergen, NJ
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount150,000
Carrying Value149,700
Senior loans | Senior Loan 12, Irvine, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount149,000
Carrying Value147,500
Senior loans | Senior Loan 13, New York, NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount148,400
Carrying Value148,200
Senior loans | Senior Loan 14, New York, NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount148,000
Carrying Value147,000
Senior loans | Senior Loan 15, Denver, CO
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount141,100
Carrying Value139,500
Senior loans | Senior Loan 16, Fort Lauderdale, FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount140,000
Carrying Value139,500
Senior loans | Senior Loan 17, Boston, MA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount137,000
Carrying Value136,700
Senior loans | Senior Loan 18, West Palm Beach, FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount131,500
Carrying Value130,700
Senior loans | Senior Loan 19, Chicago, IL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount125,100
Carrying Value123,600
Senior loans | Senior Loan 20, Portland, OR
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount125,000
Carrying Value124,700
Senior loans | Senior Loan 21, San Diego, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount102,500
Carrying Value102,100
Senior loans | Senior Loan 22, Various
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount102,200
Carrying Value101,600
Senior loans | Senior Loan 23, Seattle, WA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount92,300
Carrying Value92,100
Senior loans | Senior Loan 24, Los Angeles, CA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount90,000
Carrying Value89,200
Senior loans | Senior Loan 25, New York, NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount86,000
Carrying Value85,700
Senior loans | Senior Loan 26, Seattle, WA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount80,700
Carrying Value80,600
Senior loans | Senior Loan 27, Philadelphia, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount77,000
Carrying Value76,600
Senior loans | Senior Loan 28, Brooklyn, NY
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount76,000
Carrying Value75,500
Senior loans | Senior Loan 29, Atlanta, GA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount72,100
Carrying Value71,800
Senior loans | Senior Loan 30, Orlando, FL
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount72,000
Carrying Value71,900
Mezzanine loans | Senior Loan 31, Herndon, VA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount71,900
Carrying Value71,300
Mezzanine loans | Senior Loan 32, State College, PA
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount69,200
Carrying Value68,600
Mezzanine loans | Senior Loan 33, Austin, TX
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Outstanding Face Amount67,500
Carrying Value66,900
Mezzanine loans | Senior Loan 34, Queens, NY