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KKR Real Estate Finance Trust (KREF)

Cover Page

Cover Page - USD ($) $ in Millions12 Months Ended
Dec. 31, 2020Feb. 11, 2021Jun. 30, 2020
Cover [Abstract]
Document Type10-K
Document Annual Reporttrue
Document Period End DateDec. 31,
2020
Current Fiscal Year End Date--12-31
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 One30 Hudson Yards,
Entity Address, Address Line TwoSuite 7500
Entity Address, City or TownNew York,
Entity Address, State or ProvinceNY
Entity Address, Postal Zip Code10001
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 Ex Transition Periodtrue
ICFR Auditor Attestation Flagfalse
Entity Shell Companyfalse
Entity Public Float $ 485.8
Entity Common Stock, Shares Outstanding55,619,428
Documents Incorporated by ReferencePortions of the definitive proxy statement to be filed with the Securities and Exchange Commission (“SEC”) pursuant to Regulation 14A relating to the registrant’s 2021 Annual Meeting of Stockholders will be incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III. The definitive proxy statement will be filed with the SEC no later than 120 days after the registrant’s fiscal year end.
Entity Central Index Key0001631596
Amendment Flagfalse
Document Fiscal Year Focus2020
Document Fiscal Period FocusFY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Assets
Cash and cash equivalents $ 110,832 $ 67,619
Commercial real estate loans, held-for-investment4,844,534 4,931,042
Less: Allowance for credit losses(59,801)0
Commercial real estate loans, held-for-investment, net4,784,733 4,931,042
Equity method investments33,651 37,469
Accrued interest receivable15,412 16,305
Other assets[1]20,984 4,583
Total Assets4,965,612 5,057,018
Liabilities
Secured financing agreements, net2,574,747 2,884,887
Collateralized loan obligation, net810,000 803,376
Secured term loan, net288,028 0
Convertible notes, net140,465 139,075
Loan participations sold, net66,232 64,966
Dividends payable24,287 25,036
Accrued interest payable5,381 6,686
Accounts payable, accrued expenses and other liabilities[2]4,823 3,363
Due to affiliates6,243 5,917
Total Liabilities3,920,206 3,933,306
Commitments and Contingencies0 0
Temporary Equity
Redeemable preferred stock1,852 1,694
Permanent Equity
Preferred stock, 50,000,000 authorized 1 share with par value of $0.01 issued and outstanding as of December 31, 2020 and 2019, respectively)0 0
Common stock, 300,000,000 authorized (55,619,428 and 57,486,583 shares with par value of $0.01 issued and outstanding as of December 31, 2020 and 2019, respectively)556 575
Additional paid-in capital1,169,695 1,165,995
Accumulated deficit(65,698)(8,594)
Repurchased stock, 3,900,326 and 1,862,689 shares repurchased as of December 31, 2020 and 2019, respectively(60,999)(35,958)
Total KKR Real Estate Finance Trust Inc. stockholders’ equity1,043,554 1,122,018
Total Permanent Equity1,043,554 1,122,018
Total Liabilities and Equity $ 4,965,612 $ 5,057,018
[1]Includes $15.9 million and $0.0 million of loan repayment proceeds held by the servicer and receivable by KREF as of December 31, 2020 and 2019, respectively.
[2]Includes $0.9 million and $0.0 million of expected loss reserve for unfunded loan commitments as of December 31, 2020 and 2019, respectively.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in MillionsDec. 31, 2020Dec. 31, 2019
Preferred stock authorized (shares)50,000,000 50,000,000
Preferred stock issued (shares)1 1
Preferred stock outstanding (shares)1 1
Preferred stock par value (usd per share) $ 0.01 $ 0.01
Common stock authorized (shares)300,000,000 300,000,000
Common stock outstanding (shares)55,619,428 57,486,583
Common stock par value (usd per share) $ 0.01 $ 0.01
Treasury stock, held (shares)3,900,326 1,862,689
Loan repayment proceeds $ 15.9 $ 0
Expected loss reserve for unfunded loan commitments $ 0.9 $ 0

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Net Interest Income
Interest income $ 269,188 $ 274,335 $ 183,575
Interest expense127,312 158,860 85,017
Total net interest income141,876 115,475 98,558
Other Income
(Loss) gain on sale of investments0 (2,688)13,000
Income (loss) from equity method investments537 4,568 3,065
Change in net assets related to CMBS consolidated variable interest entities0 1,665 2,588
Other income744 2,453 1,440
Total other income (loss)1,281 5,998 20,093
Operating Expenses
General and administrative14,238 10,522 7,812
Provision for credit losses, net50,344 0 0
Management fees to affiliate16,992 17,135 16,346
Incentive compensation to affiliate6,774 3,272 4,756
Total operating expenses88,348 30,929 28,914
Income (Loss) Before Income Taxes, Noncontrolling Interests, Preferred Dividends and Redemption Value Adjustment54,809 90,544 89,737
Income tax expense412 579 (70)
Net Income (Loss)54,397 89,965 89,807
Redeemable Noncontrolling Interests in Income (Loss) of Consolidated Joint Venture0 0 63
Net Income (Loss) Attributable to KKR Real Estate Finance Trust Inc. and Subsidiaries54,397 89,965 89,744
Preferred Stock Dividends and Redemption Value Adjustment844 (527)2,451
Net Income (Loss) Attributable to Common Stockholders $ 53,553 $ 90,492 $ 87,293
Net Income (Loss) Per Share of Common Stock
Basic (usd per share) $ 0.96 $ 1.58 $ 1.58
Diluted (usd per share) $ 0.96 $ 1.57 $ 1.58
Weighted Average Number of Shares of Common Stock Outstanding
Basic (shares)55,985,014 57,426,912 55,136,548
Diluted (shares)56,057,237 57,532,490 55,171,061
Dividends declared per share of common stock (usd per share) $ 1.72 $ 1.72 $ 1.69

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)Retained Earnings (Accumulated Deficit)Cumulative-effect adjustment upon adoption of ASU 2016-13Repurchased StockTotal KKR Real Estate Finance Trust Inc. Stockholders' EquityTotal KKR Real Estate Finance Trust Inc. Stockholders' EquityCumulative-effect adjustment upon adoption of ASU 2016-13
Ending balance (shares) at Dec. 31, 20171 53,685,440
Ending balance at Dec. 31, 2017 $ 0 $ 537 $ 1,052,851 $ 6,280 $ (523) $ 1,059,145
Ending balance at Dec. 31, 2017 $ 3,090 $ 949
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of stock (shares)5,500,000
Issuance of stock $ 55 109,445 109,500
Repurchase of common stock (shares)(1,623,482)
Repurchase of common stock $ (16)(31,331)(31,347)
Offering costs(1,823)(1,823)
Equity component of convertible notes1,800 1,800
Adjustment of redeemable preferred stock to redemption value1,897 (1,897)(1,897)
Common dividends declared(93,798)(93,798)
Stock-based compensation (in shares)34,259
Stock-based compensation1,572 1,572
Net income (loss)89,190 89,190
Ending balance (shares) at Dec. 31, 20181 57,596,217
Ending balance at Dec. 31, 2018 $ 0 $ 576 1,163,845 (225)(31,854)1,132,342
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred dividends declared(554)
Adjustment of redeemable preferred stock to redemption value1,897 (1,897)(1,897)
Capital distributions and redemptions(3,153)
Net income (loss)63 554
Ending balance at Dec. 31, 20180 2,846
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible List]us-gaap:AccountingStandardsUpdate201613Member
Repurchase of common stock (shares)(212,809)(212,809)
Repurchase of common stock $ (4,100) $ (2)(4,104)(4,106)
Offering costs(518)(518)
Adjustment of redeemable preferred stock to redemption value(1,152)1,152 1,152
Common dividends declared(98,860)(98,860)(98,860)
Stock-based compensation (in shares)103,175
Stock-based compensation $ 1 2,668 2,669
Net income (loss)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) $ (15,009)(35,958)1,122,018 $ (15,009)
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred dividends declared(624)
Adjustment of redeemable preferred stock to redemption value(1,152)1,152 1,152
Net income (loss)624
Ending balance at Dec. 31, 2019 $ 1,694 0 1,694
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock (shares)(2,037,637)(2,037,637)
Repurchase of common stock $ (25,000) $ (20)(25,041)(25,061)
Adjustment of redeemable preferred stock to redemption value158 (158)(158)
Common dividends declared(95,648)(95,648)(95,648)
Stock-based compensation (in shares)170,482
Stock-based compensation $ 1 3,700 3,701
Net income (loss)53,711 53,711
Ending balance (shares) at Dec. 31, 20201 55,619,428
Ending balance at Dec. 31, 20201,043,554 $ 0 $ 556 $ 1,169,695 (65,698) $ (60,999)1,043,554
Increase (Decrease) in Temporary Equity [Roll Forward]
Preferred dividends declared(686)
Adjustment of redeemable preferred stock to redemption value158 $ (158) $ (158)
Net income (loss)686
Ending balance at Dec. 31, 2020 $ 1,852 $ 0 $ 1,852

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Equity (Parenthetical) - $ / sharesDec. 15, 2020Sep. 15, 2020Jun. 15, 2020Mar. 16, 2020Dec. 16, 2019Sep. 13, 2019Jun. 14, 2019Mar. 18, 2019Dec. 31, 2020Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
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 $ 0.43 $ 0.43 $ 0.43 $ 1.72 $ 1.72 $ 1.69

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Cash Flows From Operating Activities
Net income (loss) $ 54,397 $ 89,965 $ 89,807
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of deferred debt issuance costs and discounts22,327 16,765 8,590
Accretion of net deferred loan fees and discounts(17,222)(20,217)(10,524)
Payment-in-kind interest(4,232)0 0
Change in non-cash net assets of consolidated variable interest entities0 0 2,564
Loss (Gain) on sale of investment securities0 2,688 (13,000)
Loss (Income) from equity method investments2,840 (1,420)(1,406)
Provision for credit losses, net50,344 0 0
Stock-based compensation expense5,676 4,091 1,973
Changes in operating assets and liabilities:
Accrued interest receivable, net893 61 (6,914)
Other assets(337)321 (1,708)
Accrued interest payable(1,303)(830)5,893
Accounts payable, accrued expenses and other liabilities2,029 122 2,786
Due to affiliates(350)167 (1,231)
Net cash provided by (used in) operating activities115,062 91,713 76,830
Cash Flows From Investing Activities
Proceeds from sales of commercial mortgage-backed securities0 9,784 112,747
Proceeds from principal repayments and sale/syndication of commercial real estate loans, held-for-investment1,054,891 1,934,893 446,336
Origination of commercial real estate loans, held-for-investment(966,182)(2,864,810)(2,540,685)
Investment in commercial mortgage-backed securities, equity method investee0 (6,245)(15,611)
Purchase of Available-for-Sale debt securities0 (94,007)0
Sales of Available-for-Sale debt securities0 94,071 0
Net cash provided by (used in) investing activities88,709 (926,314)(1,997,213)
Cash Flows From Financing Activities
Proceeds from borrowings under secured financing agreements1,015,430 3,217,859 2,311,140
Proceeds from issuance of collateralized loan obligation0 0 810,000
Net proceeds from issuance of secured term loan292,500 0 0
Net proceeds from issuance of convertible notes0 0 139,438
Proceeds from issuances of common stock0 0 109,500
Payments of common stock dividends(96,451)(98,954)(88,847)
Payments of preferred stock dividends(634)(592)(386)
Principal repayments on borrowings under secured financing agreements(1,332,822)(2,284,819)(1,314,812)
Payments of debt and collateralized debt obligation issuance costs(12,066)(12,060)(26,418)
Payments of stock issuance costs(157)(1,254)(1,324)
Payments of redeemable noncontrolling interest distributions and redemptions0 0 (3,153)
Payments to reacquire common stock(25,061)(4,106)(31,347)
Tax withholding on stock-based compensation(1,297)(385)(397)
Net cash provided by (used in) financing activities(160,558)815,689 1,903,394
Net Increase (Decrease) in Cash, Cash Equivalents43,213 (18,912)(16,989)
Cash, Cash Equivalents at Beginning of Period67,619 86,531 103,520
Cash, Cash Equivalents at End of Period110,832 67,619 86,531
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest103,405 146,156 66,775
Cash paid during the period for income taxes124 398 755
Supplemental Schedule of Non-Cash Investing and Financing Activities
Loan principal payments held by servicer15,850 0 0
Dividend declared, not yet paid24,287 25,036 25,097
Payoff of loan participations sold and commercial real estate loan, held-for-investment0 150,880 0
Deconsolidation of variable interest entities (assets and liabilities) $ 0 $ 1,047,346 $ 4,048,378

Business and Organization

Business and Organization12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and OrganizationBusiness 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 transitional 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 15 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 13). As of December 31, 2020, KKR beneficially owned 21,234,528 shares of KREF's common stock, of which 1,234,528 sh ares 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 real estate 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, 2020
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. Risks and Uncertainties — The outbreak of the coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has been rapidly evolving around the globe, with several countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns, imposing travel restrictions and limiting operations of non-essential offices and retail centers. Such actions are creating significant disruptions to global supply chains, increasing rates of unemployment and adversely impacting several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry. The major disruption caused by COVID-19 significantly reduced economic activity in most of the United States resulting in a significant increase in unemployment claims and a significant decline in the U.S. Gross Domestic Product (“GDP”). Due to the current COVID-19 pandemic in the United States and globally, KREF’s operating partners, borrowers and their tenants, the properties securing KREF’s investments, and the economy as a whole have been, and will continue to be, adversely impacted. The magnitude and duration of the COVID-19 pandemic and its impact on KREF’s borrowers and their tenants, cash flows and future results of operations has been significant, and its continued impact will largely depend on future developments, which are highly uncertain and cannot be predicted. Although there are effective vaccines for COVID-19 that have been approved for use, distribution of the vaccines did not begin until late 2020, and a majority of the public will likely not have access to a vaccination until sometime in 2021. Accordingly, given the ongoing nature of the outbreak, at this time we cannot reasonably estimate the magnitude of the ultimate impact that COVID-19 will have on the Company’s business, financial performance and operating results. We believe COVID-19’s adverse impact on KREF’s business, financial performance and operating results will in part be significantly driven by a number of factors that the Company is unable to predict or control, including, for example: the severity and duration of the pandemic; the pandemic’s impact on the U.S. and global economies, including concerns regarding additional surges of the pandemic or the expansion of the economic impact thereof as a result of certain jurisdictions “re-opening” or otherwise lifting certain restrictions prematurely; the availability of U.S. federal, state, local or non-U.S. funding programs aimed at supporting the economy during the COVID 19 pandemic, including uncertainties regarding the potential implementation of new or extended programs; the timing, scope and effectiveness of additional governmental responses to the pandemic; the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19; and the negative impact on the Company’s financing sources, vendors and other business partners that may indirectly adversely affect KREF. The prolonged duration and impact of the COVID-19 pandemic could materially disrupt our business operations and impact our financial performance. The COVID-19 pandemic has resulted in significant disruptions in financial markets, business shutdowns and uncertainty about how the U.S. and global economy will perform over the next several months. Possible future declines in rental rates and expectations of future rental concessions, including free rent to renew tenants early, to retain tenants who are up for renewal or to attract new tenants, or rent abatements for tenants severely impacted by the COVID-19 pandemic may result in decreases in cash flows to KREF’s borrowers and potentially in defaults in paying debt service on outstanding indebtedness, which could adversely impact the Company’s results of operations and financial performance. Impending declines in economic conditions could negatively impact real estate and real estate capital markets and result in lower occupancy, lower rental rates and declining values in KREF’s portfolio, which could adversely impact the value of KREF’s investments, making it more difficult for the Company to make distributions or meet our financing obligations. 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. The effects of COVID-19 may negatively and materially impact significant estimates and assumptions used by the Company including, but not limited to estimates of expected credit losses, valuation of our equity method investments and the fair value estimates of the Company’s assets and liabilities . Actual results could materially differ from those estimates. Consolidation — KREF consolidates those entities for which (i) it controls through either majority ownership or voting rights or (ii) management determines that KREF is the primary beneficiary of entities deemed to be variable interest entities ("VIEs"). Variable Interest Entities — VIEs are entities (i) in which equity investors do not have an interest with the characteristics of a controlling financial interest, (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or (iii) established with non-substantive voting rights. 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 the VIE's 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 9). 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 real estate loans, held-for-investment, net” on the 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 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 VIEs 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 VIEs 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 VIEs, 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 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 VIEs. Management separately presents the assets and liabilities of KREF's consolidated VIEs as individual line items on KREF's Consolidated Balance Sheets for entities in which the VIEs assets can only be used to settle the VIE’s obligations. The liabilities of KREF's consolidated VIEs 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 real estate loans and the interest accrued thereon, and are likewise presented as a single line item entitled "Assets — Commercial real estate 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 VIEs are not individually accessible by, and obligations of the CMBS VIEs 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 VIEs. 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 (Note 9). Temporary Equity — KREF's 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 SN VPS to its redemption value quarterly. Accordingly, KREF adjusted the carrying value of the SNVPS to its redemption value of $1.9 million as of December 31, 2020, and recorded a $0.2 million non-cash redemption value adjustment to the SNVPS (“SNVPS Redemption Value Adjustment”) during the year ended December 31, 2020, respectively. Such adjustment is treated similar to a dividend on preferred st ock for GAAP purposes, accordingly, the SNVPS Redemption Value Adjustment is therefore deducted from (or added back to) “Net Income (Loss)” 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, however KREF is not the primary beneficiary. KREF does not have substantive participating or kick-out rights nor 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 (Note 9). Management determined that KREF's 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. KREF records its share of net asset value in RECOP I in “Equity method investments” on its Consolidated Balance Sheets and its share of unrealized gains or losses in "Income from equity method investments" in its Consolidated Statements of Income. Management elected the fair value option for KREF's investment in RECOP I. 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. 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. Valuation Process — The Manager reviews the valuation of Level 3 financial instruments as part of KKR's quarterly process. As of December 31, 2020, 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 Real Estate Loans and Participation Sold — Management generally considers KREF's commercial real estate loans Level 3 assets in the fair value hierarchy as such assets are illiquid, structured investments that are specific to the sponsor, underlying property and its operating performance (Note 14). 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/or estimated property value. 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 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 after evaluating any additional evidence. However, if management continues to disagree with the price from the independent valuation firm, in light of evidence that management compiled independently and believes to be compelling, valuations are then 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 in addition to understanding the valuation methodologies used by the market makers. These market participants may 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. 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 consolidated CMBS trusts 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 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 consolidated CMBS trusts 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 9). 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 real estate 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 14 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, transfer 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 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, 2020 and 2019, KREF was required to maintain unrestricted cash and cash equivalents of at least $42.6 million and $33.4 million, respectively, to satisfy its liquidity covenants (Note 4). Adoption of ASU No. 2016-13, Financial Instruments — Credit Losses — On January 1, 2020, KREF adopted ASU No. 2016-13, Financial Instruments-Credit Losses , and subsequent amendments (“ASU 2016-13”), which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance sheet credit exposures such as unfunded loan commitments. The allowance for credit losses required under ASU 2016-13 is deducted from the respective loans’ amortized cost basis on KREF's consolidated balance sheets. The allowance for credit losses attributed to unfunded loan commitments is included in “Accounts payable, accrued expenses and other liabilities” on the consolidated balance sheets. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. In connection with KREF’s adoption of ASU 2016-13 on January 1, 2020, KREF implemented new processes including the utilization of loan loss forecasting models, updates to KREF's reserve policy documentation, changes to internal reporting processes and related internal controls. KREF has implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for its commercial real estate loan portfolio. The CECL forecasting methods used by KREF include (i) a probability of default and loss given default method using underlying third-party CMBS/CRE loan database with historical loan losses from 1998 to 2020 and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. KREF might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. KREF estimates the CECL allowance for its loan portfolio, including unfunded loan commitments, at the individual loan level. Significant inputs to KREF’s forecasting methods include (i) key loan-specific inputs such as loan-to-value ("LTV"), vintage year, loan-term, underlying property type, occupancy, geographic location, and expected timing and amount of future loan fundings, (ii) performance against the underwritten business plan and KREF's internal loan risk rating and (iii) a macro-economic forecast. These estimates may change in future periods based on available future macro-economic data and might result in a material change in the KREF’s future estimates of expected credit losses for its loan portfolio. KREF considers the individual loan internal risk rating as the primary credit quality indicator underlying the CECL assessment. In certain instances, KREF considers relevant loan-specific qualitative factors to certain loans to estimate its CECL allowance. KREF considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that KREF determines that foreclosure of the collateral is probable, KREF measures the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that KREF determines foreclosure is not probable, KREF applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and t he amortized cost basis of the loan. Based on KREF's loan portfolio at January 1, 2020, the pre COVID-19 economic environment and the respective expectations for future economic conditions at the time, KREF recorded a cumulative-effect adjustment to KREF's accumulated deficit as of January 1, 2020 of $15.0 million, or $0.26 per common share, of which $1.1 million, or $0.02 per common share, is attributable to unfunded loan commitments. The following table illustrates the day-one financial statements impact of the adoption of ASU 2016-13 on January 1, 2020: Pre-adoption Transition Adjustment Post-adoption Assets Commercial real estate loans, held-for-investment $ 4,931,042 $ — $ 4,931,042 Less: Allowance for credit losses — (13,909) (13,909) Commercial real estate loans, held-for-investment, net $ 4,931,042 $ (13,909) $ 4,917,133 Liabilities Accounts payable, accrued expenses and other liabilities (A) $ 3,363 $ 1,100 $ 4,463 Permanent Equity Accumulated deficit $ (8,594) $ (15,009) $ (23,603) (A) Includes reserve for unfunded loan commitments. Commercial Real Estate Loans Held-For-Investment and Allowance for Credit Losses — KREF recognizes its investments in commercial real estate 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 principal, net of applicable (i) unamortized origination or acquisition premiums and discounts, (ii) unamortized deferred nonrefundable fees and other direct loan origination costs, and (iii) allowance for credit losses, net of write-offs of impaired loans . If a loan is determined to be impaired, management writes off the loan through a charge to the "Allowance for credit losses". See " Expense Recognition — Commercial Real E

Commercial Real Estate Loans

Commercial Real Estate Loans12 Months Ended
Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Commercial Real Estate LoansCommercial Real Estate Loans The following table summarizes KREF's investments in commercial real estate loans as of December 31, 2020 and 2019: Weighted Average Loan Type Outstanding Principal Amortized Cost (A) Carrying Value (B) Loan Count Floating Rate Loan % (C) Coupon (C) Life (Years) (D) December 31, 2020 Loans held-for-investment Senior loans (E) $ 4,779,367 $ 4,759,624 $ 4,701,268 38 100.0 % 4.7 % 3.3 Mezzanine and other loans (F) 90,329 84,910 83,465 4 93.9 12.6 4.6 $ 4,869,696 $ 4,844,534 $ 4,784,733 42 99.9 % 4.9 % 3.3 December 31, 2019 Loans held-for-investment Senior loans (E) $ 4,919,298 $ 4,890,408 $ 4,890,408 37 100.0 % 5.0 % 4.1 Mezzanine and other loans 41,400 40,634 40,634 2 86.7 9.6 4.6 $ 4,960,698 $ 4,931,042 $ 4,931,042 39 99.9 % 5.1 % 4.1 (A) Amortized cost represents the outstanding principal of loan, net of applicable unamortized discounts, loan origination fees and write-off on uncollectable loan balances. (B) Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses. (C) Average weighted by outstanding principal of loan. Weighted average coupon assumes the greater of applicable one-month LIBOR rates of 0.14% a nd 1.76% as of December 31, 2020 and 2019, respectively, or the applicable contractual LIBOR floor. (D) 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. (E) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. Also, includes vertical loan participations sold with a principal and a carrying value of $66.2 million as of December 31, 2020 and a principal and a carrying value of $65.0 million as of December 31, 2019, respectively. Includes CLO loan participations of $1.0 billion a s of December 31, 2020 and 2019, respectively. (F) Includes one real estate corporate loan to a multifamily operator with a principal and a carrying value of $50.0 million and $48.0 million, respectively. Activity — For the years ended December 31, 2020 and 2019, the loan portfolio activity was as follows: Amortized Cost Allowance for Carrying Value 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 Originations and future fundings, net (A) 966,182 — 966,182 Proceeds from sales and principal repayments (B) (1,069,494) — (1,069,494) Accretion of loan discount and other amortization, net (C) 17,222 — 17,222 PIK interest 4,232 — 4,232 Cumulative-effect adjustment upon adoption of ASU 2016-13 — (13,909) (13,909) Provision for credit losses, net — (50,542) (50,542) Loan write-off (4,650) 4,650 — Balance at December 31, 2020 $ 4,844,534 $ (59,801) $ 4,784,733 (A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes $27.9 million and $142.8 million in net proceeds from non-recourse sale of senior interests during the years ended December 31, 2020 and 2019, respectively. Includes $65.0 million in loan repayment proceeds from pari passu loan syndication, which did not qualify for sale accounting under GAAP, during the year ended December 31, 2019. (C) Includes accretion of applicable discounts, certain fees and deferred loan origination costs. As of December 31, 2020 and 2019, there was $20.5 million and $29.7 million, respectively, of unamortized deferred loan fees and discounts included in commercial real estate loans, held-for-investment, net in the Consolidated Balance Sheets. KREF recognized prepayment fee income of $0.0 million and $0.9 million during the years ended December 31, 2020 and 2019, respectively; and net accelerated fees income of $1.8 million and $4.7 million during the years ended December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, KREF entered into loan modifications that include, among other changes, incremental capital contributions or partial repayments from certain borrowers, repurposing of reserves, and a temporary partial deferral for a portion of the coupon as payment-in-kind interest (“PIK Interest”) due, which is capitalized, compounded, and added to the outstanding principal balance of the respective loans. These loan modifications were not considered TDRs under GAAP, other than as described below. As of December 31, 2020, three loan modifications included temporary PIK Interest provisions, with a total outstanding loan principal and net book value of $317.7 million and $312.2 million, respectively. Total PIK Interest of $4.2 million was deferred and compounded into outstanding loan principal during the year ended December 31, 2020. During the fourth quarter of the year ended December 31, 2020, one senior retail loan, which was due in November 2020, was modified to extend the maturity date through March 2021 with an option to extend to April 2021. The loan modification included a deferral of interest due and a Deed in Lieu of Foreclosure, which allows KREF to obtain title of the underlying property in the event of default, as defined. As of December 31, 2020, the loan had a principal balance and an amortized cost of $109.6 million and $109.6 million , respectively, had a risk rating of 5, and was on non-accrual status since October 2020. KREF had no remaining unfunded commitment as of December 31, 2020. While KREF did not forgive or charge-off any amounts due under this loan, this modification is considered a TDR under GAAP. Loan Risk Ratings — As further described in Note 2, our Manager evaluates KREF's commercial real estate loan portfolio on a quarterly basis. In conjunction with the quarterly commercial real estate 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 tables summarize the principal balance and net book value of the loan portfolio based on KREF's internal risk ratings: December 31, 2020 December 31, 2019 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 1 $ 85,730 $ 86,000 1.7 % 2 2 321,686 323,026 6.5 2 5 450,827 451,858 9.0 3 32 3,715,132 3,836,983 77.3 3 33 4,394,485 4,501,440 89.3 4 6 675,727 687,040 13.9 4 — — — — 5 2 72,188 115,071 2.3 5 — — — — 42 $ 4,784,733 $ 4,962,120 100.0 % 39 $ 4,931,042 $ 5,039,298 100.0 % (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 $158.7 million and $143.6 million of such non-consolidated interests, and excludes $66.2 million and $65.0 million vertical loan participation as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the average risk rating of KREF's portfolio was 3.1 (Av erage Risk), weig hted by total loan exposure, as compared to 2.9 (Average Risk) as of December 31, 2019. Loan Vintage — The following table presents the amortized cost of the loan portfolio at December 31, 2020, by KREF's internal risk rating and year of origination. The risk ratings are updated as of December 31, 2020. December 31, 2020 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2020 2019 2018 2017 2016 2015 Total Carrying Amount Commercial Real Estate Loans 1 — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2 2 323,026 — 128,514 — 193,633 — — 322,147 321,686 3 32 3,744,559 461,406 2,105,972 1,159,818 — — — 3,727,196 3,715,132 4 6 687,040 101,586 76,670 340,745 165,751 — — 684,752 675,727 5 2 115,071 — — — — — 110,439 110,439 72,188 42 $ 4,869,696 $ 562,992 $ 2,311,156 $ 1,500,563 $ 359,384 $ — $ 110,439 $ 4,844,534 $ 4,784,733 Allowance for Credit Losses — For the year ended December 31, 2020, the changes to allowance for credit losses were as following: Commercial Mortgage Loans Unfunded Loan Commitments Total Balance at December 31, 2019 $ — $ — $ — Cumulative-effect adjustment upon adoption of ASU 2016-13 13,909 1,100 15,009 Provision for credit losses, net 50,542 (198) 50,344 Write-off charged (4,650) — (4,650) Balance as December 31, 2020 $ 59,801 $ 902 $ 60,703 The $50.3 million incremental provision for credit losses duri ng the year ended December 31, 2020 , compared to the January 1, 2020 cumulative-effect adjustment of $15.0 million upon adoption of ASU 2016-13, was primarily attributable to the significant adverse change in the economic outlook due to the COVID-19 pandemic. In addition, the average risk rating of KREF's loan portfolio increased from 2.9 as of December 31, 2019 to 3.1 as of December 31, 2020 . Concentration of Credit Risk — The following tables present the geographies and property types of collateral underlying KREF's commercial real estate loans as a percentage of the loans' principal amounts: December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Geography (A) Collateral Property Type New York 14.5 % 22.5 % Multifamily 51.0 % 58.3 % Illinois 11.8 9.7 Office 30.2 25.5 Virginia 10.1 8.2 Condo (Residential) 6.1 3.0 Pennsylvania 9.7 9.2 Retail 5.0 4.7 Massachusetts 8.4 7.7 Hospitality 4.5 4.4 California 7.7 6.9 Industrial 1.8 2.8 Washington 7.2 6.9 Student Housing 1.4 1.3 Texas 6.6 2.5 Total 100.0 % 100.0 % Florida 5.7 6.9 Colorado 4.7 2.8 Minnesota 4.0 3.7 Washington D.C. 2.9 0.9 Oregon 2.3 2.5 Georgia 1.8 4.3 Alabama 1.4 1.2 New Jersey — 3.1 Other U.S. 1.2 1.0 Total 100.0 % 100.0 % (A) Excludes one real estate corporate loan to a multifamily operator with an outstanding principal amount of $50.0 million, representing 1.0% of KREF’s commercial real estate loans, at December 31, 2020. Description/Location Prior Liens (A) Face Amount Carrying Amount Interest Rate (B) Payment Terms (C) Maturity Date (D) Senior Loans (E) Senior Loan 1, Arlington, VA N/A 337.3 335.5 L + 2.6% I/O 7/7/2024 Senior Loan 2, Chicago, IL N/A 334.6 331.6 L + 2.8% I/O 7/5/2026 Senior Loan 3, Various N/A 210.6 208.0 L + 3.5% I/O 6/7/2024 Senior Loan 4, Boston, MA N/A 208.6 208.2 L + 2.4% I/O 6/7/2023 Senior Loan 5, New York, NY N/A 200.1 198.5 L + 3.6% I/O 1/7/2024 Senior Loan 6, Minneapolis, MN N/A 194.1 193.3 L + 3.8% I/O 12/5/2022 Senior Loan 7, Seattle, WA N/A 172.0 171.3 L + 3.9% I/O 10/7/2023 Senior Loan 8, Denver, CO N/A 171.6 170.0 L + 2.8% I/O 9/7/2024 Senior Loan 9, Philadelphia, PA N/A 164.9 164.3 L + 2.5% I/O 7/7/2023 Senior Loan 10, Irvine, CA N/A 162.3 160.7 L + 2.9% I/O 11/7/2024 Senior Loan 11, Philadelphia, PA N/A 155.0 153.6 L + 2.6% I/O 5/7/2024 Senior Loan 12, New York, NY N/A 148.0 147.4 L + 2.6% I/O 12/7/2023 Senior Loan 13, Fort Lauderdale, FL N/A 141.6 139.9 L + 2.9% I/O 12/7/2023 Senior Loan 14, Boston, MA N/A 137.0 136.9 L + 2.7% I/O 4/7/2024 Senior Loan 15, West Palm Beach, FL N/A 132.1 131.0 L + 2.9% I/O 11/7/2023 Senior Loan 16, Chicago, IL N/A 131.8 130.5 L + 3.3% I/O 8/7/2024 Senior Loan 17, Various N/A 128.9 128.4 L + 2.6% I/O 8/12/2025 Senior Loan 18, Plano, TX N/A 112.8 111.5 L + 2.7% I/O 2/7/2025 Senior Loan 19, Portland, OR N/A 109.6 71.3 L + 5.5% I/O 4/5/2021 Senior Loan 20, San Diego, CA N/A 102.3 101.2 L + 3.3% I/O 2/7/2025 Senior Loan 21, Chicago, IL N/A 100.7 100.0 L + 4.7% I/O 6/7/2024 Senior Loan 22, New York, NY N/A 99.1 98.2 L + 4.7% I/O 10/5/2021 Senior Loan 23, Seattle, WA N/A 92.3 92.0 L + 2.6% I/O 9/7/2023 Senior Loan 24, Los Angeles, CA N/A 91.0 90.5 L + 2.8% I/O 1/7/2023 Senior Loan 25, New York, NY N/A 86.0 85.9 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, Austin, TX N/A 78.0 77.1 L + 3.7% I/O 12/7/2024 Senior Loan 28, Philadelphia, PA N/A 77.0 76.6 L + 2.7% I/O 11/7/2023 Senior Loan 29, Brooklyn, NY N/A 76.9 74.1 L + 2.9% I/O 2/7/2024 Senior Loan 30, Herndon, VA N/A 73.1 72.5 L + 2.5% I/O 1/7/2025 Senior Loan 31, Washington D.C. N/A 72.9 71.3 L + 3.4% I/O 1/7/2025 Senior Loan 32, State College, PA N/A 71.2 70.6 L + 2.7% I/O 11/7/2024 Senior Loan 33, Arlington, VA N/A 68.5 67.7 L + 3.8% I/O 10/7/2025 Senior Loan 34, Austin, TX N/A 67.5 67.0 L + 2.5% I/O 9/7/2024 Senior Loan 35, Queens, NY N/A 66.9 63.9 L + 3.0% I/O 8/7/2022 Senior Loan 36, Washington D.C. N/A 65.0 64.3 L + 3.5% I/O 12/7/2025 Senior Loan 37, Denver, CO N/A 38.7 38.3 L + 3.6% I/O 11/7/2024 Senior Loan 38, Denver, CO N/A 18.4 17.6 L + 3.8% I/O 1/7/2026 Mezzanine Loans Mezzanine Loan 1, Westbury, NY N/A 20.0 19.6 L + 9.0% I/O 8/1/2024 Mezzanine Loan 2, Oakland, CA N/A 14.8 15.0 L + 12.9% I/O 11/7/2025 Mezzanine Loan 3, Various N/A 5.5 0.9 11.0 I/O 7/6/2025 (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 (F) Excludes one real estate corporate loan to a multifamily operator with an outstanding principal and a carrying amount of $50.0 million and $48.0 million, respectively.

Debt Obligations

Debt Obligations12 Months Ended
Dec. 31, 2020
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, 2020 and 2019: December 31, 2020 December 31, 2019 Facility Collateral Facility Month Issued Outstanding Principal Carrying Value (A) Maximum Facility Size Final Stated Maturity Weighted Average Funding Cost (B) Weighted Average Life (Years) (B) Outstanding Principal Amortized Cost Basis Carrying Value Weighted Average Life (Years) (C) Carrying Value (A) Master Repurchase Agreements (D) Wells Fargo (E) Oct 2015 $ 446,208 $ 443,745 $ 1,000,000 Nov 2023 1.8 % 2.0 $ 683,726 $ 680,839 $ 641,429 3.3 $ 464,933 Morgan Stanley (F) Dec 2016 150,150 148,772 600,000 Dec 2022 2.2 2.0 221,310 219,429 218,438 5.0 392,279 Goldman Sachs (G) Sep 2016 76,762 76,163 240,000 Oct 2023 3.2 1.9 157,572 157,379 156,425 1.9 223,867 Term Lending Agreement KREF Lending V (H) Jun 2019 900,000 899,363 900,000 Jun 2026 2.1 1.5 1,120,637 1,115,291 1,110,845 3.4 868,816 Warehouse Facility HSBC Facility (I) Mar 2020 — (353) 500,000 Mar 2023 — 2.2 — — — n.a — Asset Specific Financing BMO Facility (J) Aug 2018 60,000 59,795 300,000 n.a 1.9 3.1 76,000 75,750 73,181 3.1 141,120 Revolving Credit Agreement Revolver (K) Dec 2018 — — 335,000 Dec 2023 — 2.9 n.a n.a n.a n.a — Total / Weighted Average $ 1,633,120 $ 1,627,485 $ 3,875,000 2.1 % 1.8 $ 2,091,015 (A) Net of $5.6 million and $9.5 million unamortized debt issuance costs as of December 31, 2020 and 2019, respectively. (B) Average weighte d by the outstanding principal of borrowings. Funding cost includes deferred financing costs. (C) Average based on the fully extended loan maturity, weighted by the outstanding principal 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, 2020 and 2019, the percentage of the outstanding principal of the collateral sold and not borrowed under these repurchase agreements, or average "haircut" weighted by outstanding principal of collateral, wa s 36.7% and 27.4%, respectively (or 34.8% and 25.7%, 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, 2020, the collateral-based margin was betwee n 1.25% and 2.15%. (F) In November 2020, the current stated maturity was extended to December 2021, with one-year extension option upon KREF giving written notice and another two one-year extension periods subject to approval by Morgan Stanley. In addition, KREF has the option to increase the facility amount to $750.0 million. As of December 31, 2020, the collateral-based margin was be tween 1.75% and 2.15%. (G) In May 2020, the facility was amended to extend the current stated maturity date to October 30, 2021. In addition, KREF has the option to extend the maturity date to October 31, 2023 by (i) electing to permanently reduce the maximum advance rate for each pledged loan to the lesser of 65% or the advance rate in effect for such loan at October 30, 2021, and (ii) payment of the applicable contractual fee, subject to the satisfaction of certain conditions. As of December 31, 2020, the collateral-base margin was betwe en 1.90% and 2.00%. (H) In June 2019, 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, 2020, the Initial Buyer held 22.2% 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 March 2020, KREF entered into a $500.0 million Loan and Security Agreement with HSBC Bank USA, National Association (“HSBC Facility”). The facility, which matures in March 2023, provides warehouse financing on a non-mark-to-market basis with partial recourse to KREF. (J) 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, 2020, the collateral-based margin was 1.70%. (K) 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 and 2020, further increasing the borrowing capacity under the Revolver to $335.0 million as of December 31, 2020. The current stated maturity of the facility is D ecember 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, 2020, the carrying value excluded $2.5 million unamortized d ebt issuance costs presented within "Other assets" on KREF's Consolidated Balance Sheets. The preceding table excludes loan participations sold (Note 8). As of December 31, 2020 and 2019, 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, 2020 and 2019: Outstanding Principal Net Counterparty Exposure Percent of Stockholders' Equity Weighted Average Life (Years) (A) December 31, 2020 Wells Fargo $ 446,208 $ 196,715 18.9 % 2.0 Term Lending Agreement (B) 900,000 214,135 20.5 1.5 Total / Weighted Average $ 1,346,208 $ 410,850 39.4 % 1.7 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 (A) Average weighted by the outstanding principal of borrowings under the secured financing agreement. (B) There were multiple counterparties to the Term Lending Agreement. Morgan Stanley Bank, N.A. represented 4.6% and 8.9% of the net counterparty exposure as a percent of stockholders' equity as of December 31, 2020 and 2019, respectively. 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, 2020, the weighted average margin and interest rate on the facility were 1.6% and 1.7%, respectiv ely. As of December 31, 2019, the weighted average margin and interest rate on the facility were 1.5% and 3.2%, respectively. The following tables summarize our borrowings under the Term Loan Facility: December 31, 2020 Term Loan Facility Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 13 $ 1,155,378 $ 1,151,144 $ 1,147,517 L + 3.0% n.a. January 2024 Financing provided n.a. 948,204 947,262 947,262 L + 1.9% n.a. January 2024 December 31, 2019 Term Loan Facility Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 12 $ 1,003,995 $ 997,081 $ 997,081 L + 3.0% n.a. November 2023 Financing provided n.a. 798,180 793,872 793,872 L + 1.9% n.a. November 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, 2020 and 2019, 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, 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 Principal borrowings 1,015,430 Principal repayments/sales (1,332,822) Deferred debt issuance costs (5,505) Amortization of deferred debt issuance costs 12,757 Balance as of December 31, 2020 $ 2,574,747 Maturities — KREF’s secured financing agreements, term loan financing and other consolidated debt obligations in place as of December 31, 2020 had contractual maturities as follows: Year Nonrecourse Recourse (A) Total 2021 807,080 88,648 895,728 2022 837,116 239,072 1,076,188 2023 346,953 40,130 387,083 2024 181,896 40,429 222,325 Thereafter — — — $ 2,173,045 $ 408,279 $ 2,581,324 (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 (1) (75.0% of KREF's total assets, net of VIE liabilities and non-recourse indebtedness). As of December 31, 2020 and 2019, KREF was in compliance with its financial debt covenants. (1) In July 2020, the Revolver credit agreement was amended to allow for incremental senior borrowings subject to a Senior Indebtedness covenant of 80% of KREF's total asset, net of Non-Recourse Indebtedness, as defined, and a Total Debt Incurrence covenant of 82% (ratio of KREF's Recourse Indebtedness, as defined, to KREF's total asset, net of Non-Recourse Indebtedness, as defined). In September 2020, KREF entered into a $300.0 million secured term loan at a price of 97.5%, which bears interest at a per annum rate equal to LIBOR plus a 4.75% margin, subject to a 1.0% LIBOR floor, payable quarterly beginning in December 2020. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments starting March 31, 2021. The secured term loan matures on September 1, 2027 and contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates. The secured term loan is secured by KREF level guarantees and does not include asset-based collateral. Upon the execution of the secured term loan, KREF recorded a $7.5 million issuance discount and $5.1 million in issuance costs, inclusive of $1.1 million in arrangement and structuring fees paid to KKR Capital Markets ("KCM"), an affiliate of KREF. Inclusive of the amortization of the discount and issuance costs, KREF’s total cost of the secured term loan is LIBOR plus 5.3% per annum. The following table summarizes KREF’s secured term loan at December 31, 2020: December 31, 2020 Principal amount $ 300,000 Unamortized discount (7,145) Deferred financing costs (4,827) Carrying amount $ 288,028 Covenants — KREF is required to comply with customary loan covenants and event of default provisions related to its secured term loan that include, but are not limited to, negative covenants relating to restrictions on operations with respect to KREF’s status as a REIT, and financial covenants. Such financial covenants include a minimum consolidated tangible net worth of $650.0 million and a maximum Total Debt to Total Assets ratio, as defined, of 83.3% (the “Leverage Covenant”). The tangible net worth and Leverage Covenants are effective as of the last day of each fiscal quarter commencing with the fiscal quarter ending March 31, 2021. KREF was in compliance with such covenants as of December 31, 2020.

Collateralized Loan Obligation

Collateralized Loan Obligation12 Months Ended
Dec. 31, 2020
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 two-year reinvestment period ended in December 2020. The following tables outline KREF 2018-FL1 collateral assets and respective borrowing as of December 31, 2020 and 2019: December 31, 2020 Collateralized Loan Obligation Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (B) Wtd. Avg. Term (C) Collateral assets (A) 21 $ 1,000,000 $ 1,000,000 $ 997,336 L + 2.9% March 2024 Financing provided 1 810,000 810,000 810,000 L + 1.4% June 2036 December 31, 2019 Collateralized Loan Obligation Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (B) Wtd. Avg. Term (C) Collateral assets (A) 22 $ 1,000,000 $ 1,000,000 $ 1,000,000 L + 2.8% November 2023 Financing provided 1 810,000 803,376 803,376 L + 1.8% June 2036 (A) Collateral loan assets repres ent 20.5% and 20.2% of the principal of KREF's commercial real estate loans as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, 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, which were fully amortized as of December 31, 2020. (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, 2020 December 31, 2019 Commercial real estate loans, held-for-investment $ 1,000,483 $ 1,000,000 Less: Allowance for credit losses (2,669) — Commercial real estate loans, held-for-investment, net 997,814 1,000,000 Accrued interest receivable 3,075 3,280 Other assets 5 5 Total $ 1,000,894 $ 1,003,285 Liabilities Collateralized loan obligation, net $ 810,000 $ 803,376 Accrued interest payable 668 1,254 Accounts payable, accrued expenses and other liabilities 72 72 Total $ 810,740 $ 804,702 The following table presents the components of net interest income of KREF 2018-FL1 included in KREF’s Consolidated Statements of Income: For the Year Ended December 31, 2020 2019 Net Interest Income Interest income $ 45,617 $ 53,896 Interest expense (A) 26,853 38,427 Net interest income $ 18,764 $ 15,469 (A) Includes $6.8 million and $3.3 million of deferred financing costs amortization for the years ended December 31, 2020 and 2019, respectively. KREF's unamortized deferred financing costs related to KREF 2018-FL1 we re $0.0 million an d $6.6 million, as of December 31, 2020 and 2019, respectively.

Secured Term Loan, Net

Secured Term Loan, Net12 Months Ended
Dec. 31, 2020
Secured Term Loan, Net [Abstract]
Secured Term Loan, NetDebt Obligations The following table summarizes KREF's secured master repurchase agreements and other financing arrangements in place as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Facility Collateral Facility Month Issued Outstanding Principal Carrying Value (A) Maximum Facility Size Final Stated Maturity Weighted Average Funding Cost (B) Weighted Average Life (Years) (B) Outstanding Principal Amortized Cost Basis Carrying Value Weighted Average Life (Years) (C) Carrying Value (A) Master Repurchase Agreements (D) Wells Fargo (E) Oct 2015 $ 446,208 $ 443,745 $ 1,000,000 Nov 2023 1.8 % 2.0 $ 683,726 $ 680,839 $ 641,429 3.3 $ 464,933 Morgan Stanley (F) Dec 2016 150,150 148,772 600,000 Dec 2022 2.2 2.0 221,310 219,429 218,438 5.0 392,279 Goldman Sachs (G) Sep 2016 76,762 76,163 240,000 Oct 2023 3.2 1.9 157,572 157,379 156,425 1.9 223,867 Term Lending Agreement KREF Lending V (H) Jun 2019 900,000 899,363 900,000 Jun 2026 2.1 1.5 1,120,637 1,115,291 1,110,845 3.4 868,816 Warehouse Facility HSBC Facility (I) Mar 2020 — (353) 500,000 Mar 2023 — 2.2 — — — n.a — Asset Specific Financing BMO Facility (J) Aug 2018 60,000 59,795 300,000 n.a 1.9 3.1 76,000 75,750 73,181 3.1 141,120 Revolving Credit Agreement Revolver (K) Dec 2018 — — 335,000 Dec 2023 — 2.9 n.a n.a n.a n.a — Total / Weighted Average $ 1,633,120 $ 1,627,485 $ 3,875,000 2.1 % 1.8 $ 2,091,015 (A) Net of $5.6 million and $9.5 million unamortized debt issuance costs as of December 31, 2020 and 2019, respectively. (B) Average weighte d by the outstanding principal of borrowings. Funding cost includes deferred financing costs. (C) Average based on the fully extended loan maturity, weighted by the outstanding principal 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, 2020 and 2019, the percentage of the outstanding principal of the collateral sold and not borrowed under these repurchase agreements, or average "haircut" weighted by outstanding principal of collateral, wa s 36.7% and 27.4%, respectively (or 34.8% and 25.7%, 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, 2020, the collateral-based margin was betwee n 1.25% and 2.15%. (F) In November 2020, the current stated maturity was extended to December 2021, with one-year extension option upon KREF giving written notice and another two one-year extension periods subject to approval by Morgan Stanley. In addition, KREF has the option to increase the facility amount to $750.0 million. As of December 31, 2020, the collateral-based margin was be tween 1.75% and 2.15%. (G) In May 2020, the facility was amended to extend the current stated maturity date to October 30, 2021. In addition, KREF has the option to extend the maturity date to October 31, 2023 by (i) electing to permanently reduce the maximum advance rate for each pledged loan to the lesser of 65% or the advance rate in effect for such loan at October 30, 2021, and (ii) payment of the applicable contractual fee, subject to the satisfaction of certain conditions. As of December 31, 2020, the collateral-base margin was betwe en 1.90% and 2.00%. (H) In June 2019, 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, 2020, the Initial Buyer held 22.2% 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 March 2020, KREF entered into a $500.0 million Loan and Security Agreement with HSBC Bank USA, National Association (“HSBC Facility”). The facility, which matures in March 2023, provides warehouse financing on a non-mark-to-market basis with partial recourse to KREF. (J) 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, 2020, the collateral-based margin was 1.70%. (K) 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 and 2020, further increasing the borrowing capacity under the Revolver to $335.0 million as of December 31, 2020. The current stated maturity of the facility is D ecember 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, 2020, the carrying value excluded $2.5 million unamortized d ebt issuance costs presented within "Other assets" on KREF's Consolidated Balance Sheets. The preceding table excludes loan participations sold (Note 8). As of December 31, 2020 and 2019, 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, 2020 and 2019: Outstanding Principal Net Counterparty Exposure Percent of Stockholders' Equity Weighted Average Life (Years) (A) December 31, 2020 Wells Fargo $ 446,208 $ 196,715 18.9 % 2.0 Term Lending Agreement (B) 900,000 214,135 20.5 1.5 Total / Weighted Average $ 1,346,208 $ 410,850 39.4 % 1.7 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 (A) Average weighted by the outstanding principal of borrowings under the secured financing agreement. (B) There were multiple counterparties to the Term Lending Agreement. Morgan Stanley Bank, N.A. represented 4.6% and 8.9% of the net counterparty exposure as a percent of stockholders' equity as of December 31, 2020 and 2019, respectively. 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, 2020, the weighted average margin and interest rate on the facility were 1.6% and 1.7%, respectiv ely. As of December 31, 2019, the weighted average margin and interest rate on the facility were 1.5% and 3.2%, respectively. The following tables summarize our borrowings under the Term Loan Facility: December 31, 2020 Term Loan Facility Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 13 $ 1,155,378 $ 1,151,144 $ 1,147,517 L + 3.0% n.a. January 2024 Financing provided n.a. 948,204 947,262 947,262 L + 1.9% n.a. January 2024 December 31, 2019 Term Loan Facility Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 12 $ 1,003,995 $ 997,081 $ 997,081 L + 3.0% n.a. November 2023 Financing provided n.a. 798,180 793,872 793,872 L + 1.9% n.a. November 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, 2020 and 2019, 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, 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 Principal borrowings 1,015,430 Principal repayments/sales (1,332,822) Deferred debt issuance costs (5,505) Amortization of deferred debt issuance costs 12,757 Balance as of December 31, 2020 $ 2,574,747 Maturities — KREF’s secured financing agreements, term loan financing and other consolidated debt obligations in place as of December 31, 2020 had contractual maturities as follows: Year Nonrecourse Recourse (A) Total 2021 807,080 88,648 895,728 2022 837,116 239,072 1,076,188 2023 346,953 40,130 387,083 2024 181,896 40,429 222,325 Thereafter — — — $ 2,173,045 $ 408,279 $ 2,581,324 (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 (1) (75.0% of KREF's total assets, net of VIE liabilities and non-recourse indebtedness). As of December 31, 2020 and 2019, KREF was in compliance with its financial debt covenants. (1) In July 2020, the Revolver credit agreement was amended to allow for incremental senior borrowings subject to a Senior Indebtedness covenant of 80% of KREF's total asset, net of Non-Recourse Indebtedness, as defined, and a Total Debt Incurrence covenant of 82% (ratio of KREF's Recourse Indebtedness, as defined, to KREF's total asset, net of Non-Recourse Indebtedness, as defined). In September 2020, KREF entered into a $300.0 million secured term loan at a price of 97.5%, which bears interest at a per annum rate equal to LIBOR plus a 4.75% margin, subject to a 1.0% LIBOR floor, payable quarterly beginning in December 2020. The secured term loan is partially amortizing, with an amount equal to 1.0% per annum of the principal balance due in quarterly installments starting March 31, 2021. The secured term loan matures on September 1, 2027 and contains restrictions relating to liens, asset sales, indebtedness, investments and transactions with affiliates. The secured term loan is secured by KREF level guarantees and does not include asset-based collateral. Upon the execution of the secured term loan, KREF recorded a $7.5 million issuance discount and $5.1 million in issuance costs, inclusive of $1.1 million in arrangement and structuring fees paid to KKR Capital Markets ("KCM"), an affiliate of KREF. Inclusive of the amortization of the discount and issuance costs, KREF’s total cost of the secured term loan is LIBOR plus 5.3% per annum. The following table summarizes KREF’s secured term loan at December 31, 2020: December 31, 2020 Principal amount $ 300,000 Unamortized discount (7,145) Deferred financing costs (4,827) Carrying amount $ 288,028 Covenants — KREF is required to comply with customary loan covenants and event of default provisions related to its secured term loan that include, but are not limited to, negative covenants relating to restrictions on operations with respect to KREF’s status as a REIT, and financial covenants. Such financial covenants include a minimum consolidated tangible net worth of $650.0 million and a maximum Total Debt to Total Assets ratio, as defined, of 83.3% (the “Leverage Covenant”). The tangible net worth and Leverage Covenants are effective as of the last day of each fiscal quarter commencing with the fiscal quarter ending March 31, 2021. KREF was in compliance with such covenants as of December 31, 2020.

Convertible Notes, Net

Convertible Notes, Net12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]
Convertible Notes, NetConvertible Notes, Net In May 2018, KREF 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, KREF 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 $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 the interest expense related to the Convertible Notes: For the Year Ended December 31, 2020 2019 Cash coupon $ 8,805 $ 8,804 Discount and issuance cost amortization 1,390 1,386 Total interest expense $ 10,195 $ 10,190 The following table details the net book value of the Convertible Notes on KREF's Consolidated Balance Sheets: December 31, 2020 December 31, 2019 Principal $ 143,750 $ 143,750 Deferred financing costs (2,431) (3,460) Unamortized discount (854) (1,215) Net book value $ 140,465 $ 139,075 Accrued interest payable for the Convertible Notes was $1.1 million and $1.1 million as of December 31, 2020 and 2019, respectively. Refer to Note 2 for additional discussion of accounting policies for the Convertible Notes.

Loan Participations Sold

Loan Participations Sold12 Months Ended
Dec. 31, 2020
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 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 syndications did not qualify for "sale" accounting under GAAP and therefore are consolidated in KREF's consolidated financial statements as of December 31, 2020 and 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, 2020 and 2019: December 31, 2020 Loan Participations Sold Count Principal Balance Amortized Cost Carrying Value Yield/Cost (A) Guarantee Term Total loan 1 $ 337,327 $ 336,329 $ 335,507 L + 2.6% n.a. July 2024 Vertical loan participation (B) 1 66,248 66,232 66,232 L + 2.6% n.a. July 2024 December 31, 2019 Loan Participations Sold Count Principal Balance Amortized Cost Carrying Value Yield/Cost (A) Guarantee Term Total loan 1 $ 328,500 $ 326,881 $ 326,881 L + 2.5% n.a. July 2024 Vertical loan participation (B) 1 65,000 64,966 64,966 L + 2.5% n.a. July 2024 (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, 2020 and 2019, KREF recorded $2.9 million and $0.6 million of interest income, and $2.9 million and $0.6 million of interest expense, respectively, related to the vertical loan participation sold.

Variable Interest Entities

Variable Interest Entities12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Variable Interest EntitiesVariable Interest Entities 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, 2020, 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 $33.3 million . The aggregator vehicle in which KREF invests is controlled and advised by affiliates of the Manager. RECOP I primarily acquired junior tranches of CMBS newly issued by third parties. 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, 2020, 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 10). KREF reported its interest in 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. 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 Consolidated Statements of Income. Consequently, KREF deconsolidated the respective CMBS trust upon sale.

Equity

Equity12 Months Ended
Dec. 31, 2020
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 issue additional common stock between January 1, 2019 and December 31, 2020 other than related to the vesting of restricted stock units discussed below. 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 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, 2020 and 2019, KKR beneficially owned 21,234,528 and 22,008,616 shares of KREF's common stock, of which 1,234,528 and 2,008,616 shares were held by KKR on behalf of a third-party investor (Note 1). During the years ended December 31, 2020 and 2019, 170,482 a nd 103,175 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 11 for further detail. Of t he 59,519,754 comm on shares KREF issued, there were 55,619,428 common shares outstanding as of December 31, 2020, which includ es 307,916 net sh ares of common stock issued in connection with vested restricted stock units and is net of 3,900,326 common shares repurchased as of December 31, 2020. Of t he 59,349,272 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. Share Repurchase Program — On June 15, 2020, KREF’s board of directors authorized an extension of the Company’s share repurchase program, which was scheduled to expire on June 30, 2020. Under the extended program, which has no expiration date, the Company may repurchase up to $100.0 million of its common stock beginning July 1, 2020, of which up to $50.0 million may be repurchased under a pre-set trading plan meeting the requirements of Rule 10b5-1 under the Exchange Act, and provide for repurchases of common stock when the market price per share is below book value per share (calculated in accordance with GAAP as of the end of the most recent quarterly period for which financial statements are available), and the remaining $50.0 million may be used for repurchases in the open market, pursuant to pre-set trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any common stock repurchases will be determined by the Company in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. The program does not require the Company to repurchase any specific number of shares of common stock, and the program may be suspended, extended, modified or discontinued at any time. During the year ended December 31, 2020 , KREF repurchased 2,037,637 shares of common stock at an average price per share of $12.27, for a total of $25.0 million. 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. Payments for these shares are presented within “Payments to reacquire common stock” on the Consolidated Statements of Cash Flows. 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, 2020. Dividends — During the years ended December 31, 2020 and 2019, 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 2020 March 16, 2020 March 31, 2020 April 15, 2020 $ 0.43 $ 24,010 June 15, 2020 June 30, 2020 July 15, 2020 0.43 23,861 September 15, 2020 September 30, 2020 October 15, 2020 0.43 23,861 December 15, 2020 December 31, 2020 January 15, 2021 0.43 23,916 $ 95,648 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, 2021 0.43 24,719 $ 98,860 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 commo n stock. KKR and its affiliates beneficially owned 21,234,528 and 22,008,616 shares of KREF's common stock, of which 1,234,528 and 2,008,616 shares were held on behalf of a third-party investor, representing 38.2% a nd 38.3% of KREF’s issued and outstanding common stock as of December 31, 2020 and 2019, respectively. 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, 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, 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 (Loss) per Share — The following table illustrates the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018: For the Year Ended December 31, 2020 2019 2018 Numerator Net income (loss) attributable to common stockholders $ 53,553 $ 90,492 $ 87,293 Denominator Basic weighted average common shares outstanding 55,985,014 57,426,912 55,136,548 Dilutive restricted stock units 72,223 105,578 34,513 Diluted weighted average common shares outstanding 56,057,237 57,532,490 55,171,061 Net income (loss) attributable to common stockholders, per: Basic common share $ 0.96 $ 1.58 $ 1.58 Diluted common share $ 0.96 $ 1.57 $ 1.58

Stock-based Compensation

Stock-based Compensation12 Months Ended
Dec. 31, 2020
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, 2020, 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, 2020, 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, 2019 641,214 $ 20.02 Granted 443,052 17.77 Vested (291,418) 19.94 Forfeited/ cancelled (4,906) 20.30 Unvested as of December 31, 2020 787,942 $ 18.78 (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 2021 389,758 2022 256,508 2023 141,676 Total 787,942 Upon adoption of ASU No. 2018-07, Compensation — Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting , 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, 2020, 2019 and 2018, KREF recognized $5.7 million, $4.0 million and $2.0 million , respectively, of stock-based compensation expense included in “General and administrative” expense in the Consolidated Statements of Income. As of December 31, 2020, there was $13.4 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 1.1 years. 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 $2.0 million for the year ended December 31, 2020, and is included as a reduction of capital related to the KREF's equity incentive plan in the Consolidated Statement of Changes in Stockholders' Equity. KREF delivered 170,482 shares of common stock for 291,418 vested RSUs during the year ended December 31, 2020. Refer to Note 13 for additional information regarding the Incentive Plan.

Commitments and Contingencies

Commitments and Contingencies12 Months Ended
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and ContingenciesCommitments and Contingencies As of December 31, 2020, 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, 2020, 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, 2020, KREF had future funding requirements of $471.9 million related to its investments in commercial real estate 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. The two-year investment period for RECOP I ended in April 2019. As of December 31, 2020, KREF had a remaining commitment of $4.3 million to RECOP I. Impact of the COVID-19 Pandemic — The COVID-19 pandemic has resulted in significant disruptions in financial markets, business shutdowns and uncertainty about how the U.S. and global economy will perform over the next several months. Possible future declines in rental rates and expectations of future rental concessions, including free rent to renew tenants early, to retain tenants who are up for renewal or to attract new tenants, or rent abatements for tenants severely impacted by the COVID-19 pandemic may result in decreases in cash flows to KREF’s borrowers and potentially in defaults in paying debt service on outstanding indebtedness, which could adversely impact the Company’s results of operations and financial performance. Impending declines in economic conditions could negatively impact real estate and real estate capital markets and result in lower occupancy, lower rental rates and declining values in KREF’s portfolio, which could adversely impact the value of KREF’s investments, making it more difficult for the Company to make distributions or meet our financing obligations.

Related Party Transactions

Related Party Transactions12 Months Ended
Dec. 31, 2020
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 distributable earnings (before incentive compensation payable to the Manager) 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 one-quarter 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 represent 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: (i) the effects of equity issued by KREF and its subsidiaries that provides for fixed distributions or other debt characteristics and (ii) unrealized provision for credit losses. 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, 2020, KREF gran ted 443,052 RSUs to KREF's directors and employees of the Manager. During the year ended December 31, 2019, KREF granted 362,832 RSUs to KREF's directors and employees of the Manager. As of December 31, 2020, 2,932,529 shar es 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: December 31, 2020 December 31, 2019 Management fees $ 4,252 $ 4,280 Expense reimbursements and other 1,991 1,637 $ 6,243 $ 5,917 Affiliates Expenses — The following table contains the amounts included in KREF's Consolidated Statements of Income that arose from transactions with the Manager: For The Year Ended December 31, 2020 2019 2018 Management fees $ 16,992 $ 17,135 $ 16,346 Incentive compensation 6,774 3,272 4,756 Expense reimbursements and other (A) 1,668 1,469 1,184 $ 25,434 $ 21,876 $ 22,286 (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, 2020, 2019 and 2018, these cash reimbursements totaled $3.8 million, $1.8 million and $2.7 million, respectively. In connection with the Term Loan Facility (Note 4), KREF paid KKR Capital Markets or 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, 2020 and 2019, KREF incurred $0.0 million and $1.5 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, 2020 and 2019, KREF incurre d $0.0 million and $0.2 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 estimated life of the CLO. 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, 2020 and 2019, KREF incurred $0.6 million and $1.1 million, respectively, in structuring fees in connection with the Revolver. 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, 2020. In connection with the HSBC Facility entered into in March 2020, and in consideration for structuring and sourcing this arrangement, KREF is obligated to pay KCM a structuring fee equal to 0.25% of the respective committed loan advances under the agreement. Such fees are capitalized as deferred financing cost and amortized to interest expense over the lesser of the initial term of the loan or the facility. During the year ended December 31, 2020, KREF incurred and paid KCM $0.1 million in structuring fees in connection with the facility. In connection with the secured term loan entered into in September 2020, and in consideration for structuring and arranging the loan, KREF paid KCM an arrangement and structuring fee equal to 0.37% of the principal amount of the secured term loan, which totaled $1.1 million. Such fee was capitalized as deferred financing cost and amortized to interest expense over the life of the secured term loan. In connection with the syndication of a senior mortgage loan in October 2020, and in consideration for its services as the placement agent, KREF paid KCM a $0.4 million placement agent fee equal to 0.30% of KREF's proportion share of the senior loan commitment. Such fee was capitalized as a direct loan origination cost and amortized to interest income over the life of the senior mortgage loan.

Fair Value of Financial Instrum

Fair Value of Financial Instruments12 Months Ended
Dec. 31, 2020
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, 2020 were as follows: Fair Value Principal Balance (A) Amortized Cost (B) Carrying Value (C) Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 110,832 $ 110,832 $ 110,832 $ 110,832 $ — $ — $ 110,832 Commercial real estate loans, held-for-investment, net (D) 4,869,696 4,844,534 4,784,733 — — 4,757,203 4,757,203 Equity method investments 33,651 33,651 33,651 — — 33,651 33,651 $ 5,014,179 $ 4,989,017 $ 4,929,216 $ 110,832 $ — $ 4,790,854 $ 4,901,686 Liabilities Secured financing agreements, net $ 2,581,324 $ 2,574,747 $ 2,574,747 $ — $ — $ 2,581,324 $ 2,581,324 Collateralized loan obligation, net 810,000 810,000 810,000 — — 803,766 803,766 Secured term loan, net 300,000 288,028 288,028 — 303,000 — 303,000 Convertible notes, net 143,750 140,465 140,465 — 145,817 — 145,817 Loan participations sold, net 66,248 66,232 66,232 — — 66,232 66,232 $ 3,901,322 $ 3,879,472 $ 3,879,472 $ — $ 448,817 $ 3,451,322 $ 3,900,139 (A) The principal balance of commercial real estate loans excludes premiums and unamortized discounts. (B) The amortized cost of commercial real estate loans is net of $4.7 million write-off on a mezzanine loan and $20.5 million unamortized origination discounts and deferred nonrefundable fees. The amortized cost of secured financing agreements is net of $6.6 million unamortized debt issuance costs. (C) The carrying value of commercial mortgage loans is net of $59.8 million allowance for credit losses. (D) Includes $1.0 billion of CLO loan participations as of December 31, 2020. Includes senior loans for which KREF syndicated a vertical loan participation that did not qualify for sale accounting under GAAP, with a carrying value and a fair value of $66.2 million as of December 31, 2020. 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, 2019 were as follows: Fair Value Principal Balance (A) Amortized Cost (B) Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 67,619 $ 67,619 $ 67,619 $ 67,619 $ — $ — $ 67,619 Commercial real estate loans, held-for-investment, net (C) 4,960,698 4,931,042 4,931,042 — — 4,937,808 4,937,808 Equity method investments 37,469 37,469 37,469 — — 37,469 37,469 $ 5,065,786 $ 5,036,130 $ 5,036,130 $ 67,619 $ — $ 4,975,277 $ 5,042,896 Liabilities Secured financing agreements, net $ 2,898,716 $ 2,884,887 $ 2,884,887 $ — $ — $ 2,898,716 $ 2,898,716 Collateralized loan obligation, net 810,000 803,376 803,376 — — 810,867 810,867 Convertible notes, net 143,750 139,075 139,075 150,719 — — 150,719 Loan participations sold, net 65,000 64,966 64,966 — — 64,966 64,966 $ 3,917,466 $ 3,892,304 $ 3,892,304 $ 150,719 $ — $ 3,774,549 $ 3,925,268 (A) The principal balance of commercial real estate loans excludes premiums and unamortized discounts. (B) The amortized cost of commercial real estate loans is presented net of $29.7 million unamortized origination discounts and deferred nonrefundable fees. The amortized cost of secured financing agreements is presented net of $13.8 million unamortized debt issuance costs. The amortized cost 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 did not qualify for sale accounting under GAAP, with a carrying value and a fair value of $65.0 million as of December 31, 2019. During the year ended December 31, 2020, KREF received distributions of $3.4 million and recorded a loss of $0.5 million related to its investment in RECOP I. 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. 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, 2020: Fair Value Valuation Methodologies Unobservable Inputs (A) Weighted Average (B) Range Assets (C) Commercial real estate loans, held-for-investment (D) $ 4,757,203 Discounted cash flow Discount rate 4.7% 2.4% - 19.1% $ 4,757,203 Liabilities (E) Collateralized loan obligation, net $ 803,766 Discounted cash flow Yield 2.1% 1.6% - 4.2% $ 803,766 (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 $33.3 million investment in an aggregator vehicle alongside RECOP I (Note 9) at its pro rata share of the aggregator's net asset value, which management believes approximates fair value. (D) Commercial real estate loans are generally valued using a discounted cash flow model using discount rate derived from relevant market indices and/or estimates of the underlying property's value. (E) Does not include $66.2 million of vertical loan syndication which was syndicated at par value and included in “Loan participation sold, net” on the 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 real estate 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 real estate 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, 2020 and 2019. Assets and Liabilities for Which Fair Value is Only Disclosed

Income Taxes

Income Taxes12 Months Ended
Dec. 31, 2020
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. While KREF expects to distribute at least 90% of its net taxable income for the foreseeable future, KREF will continue to evaluate its capital and liquidity needs in light of the significant uncertainties created by the COVID-19 pandemic, including the potential for a continued and prolonged adverse impact on economic and market conditions. KREF consolidates subsidiaries that incur U.S. federal, state and local income taxes, based on the tax jurisdiction in which each subsidiary operates. During the year ended December 31, 2020, 2019 and 2018, KREF recorded a current income tax provision (benefit) of $0.4 million, $0.6 million and ($0.1) 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, 2020 and 2019. As of December 31, 2020, tax years 2016 through 2020 remain subject to examination by taxing authorities. Common stock distributions treated as dividends for tax purposes were taxable as follows: Year Ordinary Qualified Long Term Return of 2020 100.0 % 0.8 % — % — % 2019 99.1 1.6 0.9 — 2018 88.3 0.6 11.7 —

Subsequent Events

Subsequent Events12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]
Subsequent EventsSubsequent Events The following events occurred subsequent to December 31, 2020: Investing Activities KREF originated the following loans: Description/ Location Property Type Month Originated Committed Principal Amount Initial Principal Funded Interest Rate (A) Maturity Date (B) LTV Senior Loan, Dallas, TX Office January 2021 $ 87,000 $ 87,000 L + 3.3% February 2026 65% Senior Loan, Boston, MA (C) Office February 2021 187,500 187,500 L + 3.3 February 2026 71 Total/ Weighted Average $ 274,500 $ 274,500 L + 3.3% 69% (A) Floating rate based on one-month USD LIBOR. (B) Maturity date assumes all extension options are exercised, if applicable. (C) The total whole loan is $375.0 million, co-originated and co-funded by the Company and a KKR affiliate on a pari passu basis. The Company's interest is 50% of the loan. Funding of Previously Closed Loans KREF funded approximately $19.3 million for previously closed loans. Loan Repayments KREF received approximately $24.3 million from loan repayments. Financing Activities KREF net borrowed approximately $259.0 million under its financing agreements. Corporate Activities Dividends In January 2021, KREF paid $23.9 million in dividends on its common stock, or $0.43 per share, with respect to the fourth quarter of 2020, to stockholders of record on December 31, 2020.

Summary Quarterly Consolidated

Summary Quarterly Consolidated Financial Information (Unaudited)12 Months Ended
Dec. 31, 2020
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, 2020 and 2019: 2020 Quarter Ended Year Ended March 31 June 30 September 30 December 31 December 31, 2020 Net Interest Income Interest income $ 71,079 $ 67,219 $ 67,689 $ 63,201 $ 269,188 Interest expense 39,082 30,563 28,832 28,835 127,312 Total net interest income 31,997 36,656 38,857 34,366 141,876 Other Income (Loss) (1,541) 493 1,075 1,254 1,281 Operating Expenses 64,946 8,147 8,650 6,605 88,348 Income (Loss) Before Income Taxes, Preferred Dividends and Redemption Value Adjustment (34,490) 29,002 31,282 29,015 54,809 Income tax expense 82 77 96 157 412 Net Income (Loss) $ (34,572) $ 28,925 $ 31,186 $ 28,858 $ 54,397 Preferred Stock Dividends and Redemption Value Adjustment 592 335 (165) 82 844 Net Income (Loss) Attributable to Common Stockholders $ (35,164) $ 28,590 $ 31,351 $ 28,776 $ 53,553 Net Income (Loss) Per Share of Common Stock Basic $ (0.61) $ 0.52 $ 0.56 $ 0.52 $ 0.96 Diluted $ (0.61) $ 0.52 $ 0.56 $ 0.52 $ 0.96 Weighted Average Number of Shares of Common Stock Outstanding Basic 57,346,726 55,491,937 55,491,405 55,619,428 55,985,014 Diluted 57,346,726 55,504,077 55,632,170 55,669,230 56,057,237 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, Preferred Dividends and Redemption Value Adjustment 24,257 17,629 23,932 24,726 90,544 Income tax expense 9 280 77 213 579 Net Income (Loss) 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

Schedule IV - Mortgage Loans on

Schedule IV - Mortgage Loans on Real Estate12 Months Ended
Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule IV - Mortgage Loans on Real EstateCommercial Real Estate Loans The following table summarizes KREF's investments in commercial real estate loans as of December 31, 2020 and 2019: Weighted Average Loan Type Outstanding Principal Amortized Cost (A) Carrying Value (B) Loan Count Floating Rate Loan % (C) Coupon (C) Life (Years) (D) December 31, 2020 Loans held-for-investment Senior loans (E) $ 4,779,367 $ 4,759,624 $ 4,701,268 38 100.0 % 4.7 % 3.3 Mezzanine and other loans (F) 90,329 84,910 83,465 4 93.9 12.6 4.6 $ 4,869,696 $ 4,844,534 $ 4,784,733 42 99.9 % 4.9 % 3.3 December 31, 2019 Loans held-for-investment Senior loans (E) $ 4,919,298 $ 4,890,408 $ 4,890,408 37 100.0 % 5.0 % 4.1 Mezzanine and other loans 41,400 40,634 40,634 2 86.7 9.6 4.6 $ 4,960,698 $ 4,931,042 $ 4,931,042 39 99.9 % 5.1 % 4.1 (A) Amortized cost represents the outstanding principal of loan, net of applicable unamortized discounts, loan origination fees and write-off on uncollectable loan balances. (B) Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses. (C) Average weighted by outstanding principal of loan. Weighted average coupon assumes the greater of applicable one-month LIBOR rates of 0.14% a nd 1.76% as of December 31, 2020 and 2019, respectively, or the applicable contractual LIBOR floor. (D) 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. (E) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. Also, includes vertical loan participations sold with a principal and a carrying value of $66.2 million as of December 31, 2020 and a principal and a carrying value of $65.0 million as of December 31, 2019, respectively. Includes CLO loan participations of $1.0 billion a s of December 31, 2020 and 2019, respectively. (F) Includes one real estate corporate loan to a multifamily operator with a principal and a carrying value of $50.0 million and $48.0 million, respectively. Activity — For the years ended December 31, 2020 and 2019, the loan portfolio activity was as follows: Amortized Cost Allowance for Carrying Value 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 Originations and future fundings, net (A) 966,182 — 966,182 Proceeds from sales and principal repayments (B) (1,069,494) — (1,069,494) Accretion of loan discount and other amortization, net (C) 17,222 — 17,222 PIK interest 4,232 — 4,232 Cumulative-effect adjustment upon adoption of ASU 2016-13 — (13,909) (13,909) Provision for credit losses, net — (50,542) (50,542) Loan write-off (4,650) 4,650 — Balance at December 31, 2020 $ 4,844,534 $ (59,801) $ 4,784,733 (A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes $27.9 million and $142.8 million in net proceeds from non-recourse sale of senior interests during the years ended December 31, 2020 and 2019, respectively. Includes $65.0 million in loan repayment proceeds from pari passu loan syndication, which did not qualify for sale accounting under GAAP, during the year ended December 31, 2019. (C) Includes accretion of applicable discounts, certain fees and deferred loan origination costs. As of December 31, 2020 and 2019, there was $20.5 million and $29.7 million, respectively, of unamortized deferred loan fees and discounts included in commercial real estate loans, held-for-investment, net in the Consolidated Balance Sheets. KREF recognized prepayment fee income of $0.0 million and $0.9 million during the years ended December 31, 2020 and 2019, respectively; and net accelerated fees income of $1.8 million and $4.7 million during the years ended December 31, 2020 and 2019, respectively. During the year ended December 31, 2020, KREF entered into loan modifications that include, among other changes, incremental capital contributions or partial repayments from certain borrowers, repurposing of reserves, and a temporary partial deferral for a portion of the coupon as payment-in-kind interest (“PIK Interest”) due, which is capitalized, compounded, and added to the outstanding principal balance of the respective loans. These loan modifications were not considered TDRs under GAAP, other than as described below. As of December 31, 2020, three loan modifications included temporary PIK Interest provisions, with a total outstanding loan principal and net book value of $317.7 million and $312.2 million, respectively. Total PIK Interest of $4.2 million was deferred and compounded into outstanding loan principal during the year ended December 31, 2020. During the fourth quarter of the year ended December 31, 2020, one senior retail loan, which was due in November 2020, was modified to extend the maturity date through March 2021 with an option to extend to April 2021. The loan modification included a deferral of interest due and a Deed in Lieu of Foreclosure, which allows KREF to obtain title of the underlying property in the event of default, as defined. As of December 31, 2020, the loan had a principal balance and an amortized cost of $109.6 million and $109.6 million , respectively, had a risk rating of 5, and was on non-accrual status since October 2020. KREF had no remaining unfunded commitment as of December 31, 2020. While KREF did not forgive or charge-off any amounts due under this loan, this modification is considered a TDR under GAAP. Loan Risk Ratings — As further described in Note 2, our Manager evaluates KREF's commercial real estate loan portfolio on a quarterly basis. In conjunction with the quarterly commercial real estate 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 tables summarize the principal balance and net book value of the loan portfolio based on KREF's internal risk ratings: December 31, 2020 December 31, 2019 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 1 $ 85,730 $ 86,000 1.7 % 2 2 321,686 323,026 6.5 2 5 450,827 451,858 9.0 3 32 3,715,132 3,836,983 77.3 3 33 4,394,485 4,501,440 89.3 4 6 675,727 687,040 13.9 4 — — — — 5 2 72,188 115,071 2.3 5 — — — — 42 $ 4,784,733 $ 4,962,120 100.0 % 39 $ 4,931,042 $ 5,039,298 100.0 % (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 $158.7 million and $143.6 million of such non-consolidated interests, and excludes $66.2 million and $65.0 million vertical loan participation as of December 31, 2020 and 2019, respectively. As of December 31, 2020, the average risk rating of KREF's portfolio was 3.1 (Av erage Risk), weig hted by total loan exposure, as compared to 2.9 (Average Risk) as of December 31, 2019. Loan Vintage — The following table presents the amortized cost of the loan portfolio at December 31, 2020, by KREF's internal risk rating and year of origination. The risk ratings are updated as of December 31, 2020. December 31, 2020 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2020 2019 2018 2017 2016 2015 Total Carrying Amount Commercial Real Estate Loans 1 — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2 2 323,026 — 128,514 — 193,633 — — 322,147 321,686 3 32 3,744,559 461,406 2,105,972 1,159,818 — — — 3,727,196 3,715,132 4 6 687,040 101,586 76,670 340,745 165,751 — — 684,752 675,727 5 2 115,071 — — — — — 110,439 110,439 72,188 42 $ 4,869,696 $ 562,992 $ 2,311,156 $ 1,500,563 $ 359,384 $ — $ 110,439 $ 4,844,534 $ 4,784,733 Allowance for Credit Losses — For the year ended December 31, 2020, the changes to allowance for credit losses were as following: Commercial Mortgage Loans Unfunded Loan Commitments Total Balance at December 31, 2019 $ — $ — $ — Cumulative-effect adjustment upon adoption of ASU 2016-13 13,909 1,100 15,009 Provision for credit losses, net 50,542 (198) 50,344 Write-off charged (4,650) — (4,650) Balance as December 31, 2020 $ 59,801 $ 902 $ 60,703 The $50.3 million incremental provision for credit losses duri ng the year ended December 31, 2020 , compared to the January 1, 2020 cumulative-effect adjustment of $15.0 million upon adoption of ASU 2016-13, was primarily attributable to the significant adverse change in the economic outlook due to the COVID-19 pandemic. In addition, the average risk rating of KREF's loan portfolio increased from 2.9 as of December 31, 2019 to 3.1 as of December 31, 2020 . Concentration of Credit Risk — The following tables present the geographies and property types of collateral underlying KREF's commercial real estate loans as a percentage of the loans' principal amounts: December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Geography (A) Collateral Property Type New York 14.5 % 22.5 % Multifamily 51.0 % 58.3 % Illinois 11.8 9.7 Office 30.2 25.5 Virginia 10.1 8.2 Condo (Residential) 6.1 3.0 Pennsylvania 9.7 9.2 Retail 5.0 4.7 Massachusetts 8.4 7.7 Hospitality 4.5 4.4 California 7.7 6.9 Industrial 1.8 2.8 Washington 7.2 6.9 Student Housing 1.4 1.3 Texas 6.6 2.5 Total 100.0 % 100.0 % Florida 5.7 6.9 Colorado 4.7 2.8 Minnesota 4.0 3.7 Washington D.C. 2.9 0.9 Oregon 2.3 2.5 Georgia 1.8 4.3 Alabama 1.4 1.2 New Jersey — 3.1 Other U.S. 1.2 1.0 Total 100.0 % 100.0 % (A) Excludes one real estate corporate loan to a multifamily operator with an outstanding principal amount of $50.0 million, representing 1.0% of KREF’s commercial real estate loans, at December 31, 2020. Description/Location Prior Liens (A) Face Amount Carrying Amount Interest Rate (B) Payment Terms (C) Maturity Date (D) Senior Loans (E) Senior Loan 1, Arlington, VA N/A 337.3 335.5 L + 2.6% I/O 7/7/2024 Senior Loan 2, Chicago, IL N/A 334.6 331.6 L + 2.8% I/O 7/5/2026 Senior Loan 3, Various N/A 210.6 208.0 L + 3.5% I/O 6/7/2024 Senior Loan 4, Boston, MA N/A 208.6 208.2 L + 2.4% I/O 6/7/2023 Senior Loan 5, New York, NY N/A 200.1 198.5 L + 3.6% I/O 1/7/2024 Senior Loan 6, Minneapolis, MN N/A 194.1 193.3 L + 3.8% I/O 12/5/2022 Senior Loan 7, Seattle, WA N/A 172.0 171.3 L + 3.9% I/O 10/7/2023 Senior Loan 8, Denver, CO N/A 171.6 170.0 L + 2.8% I/O 9/7/2024 Senior Loan 9, Philadelphia, PA N/A 164.9 164.3 L + 2.5% I/O 7/7/2023 Senior Loan 10, Irvine, CA N/A 162.3 160.7 L + 2.9% I/O 11/7/2024 Senior Loan 11, Philadelphia, PA N/A 155.0 153.6 L + 2.6% I/O 5/7/2024 Senior Loan 12, New York, NY N/A 148.0 147.4 L + 2.6% I/O 12/7/2023 Senior Loan 13, Fort Lauderdale, FL N/A 141.6 139.9 L + 2.9% I/O 12/7/2023 Senior Loan 14, Boston, MA N/A 137.0 136.9 L + 2.7% I/O 4/7/2024 Senior Loan 15, West Palm Beach, FL N/A 132.1 131.0 L + 2.9% I/O 11/7/2023 Senior Loan 16, Chicago, IL N/A 131.8 130.5 L + 3.3% I/O 8/7/2024 Senior Loan 17, Various N/A 128.9 128.4 L + 2.6% I/O 8/12/2025 Senior Loan 18, Plano, TX N/A 112.8 111.5 L + 2.7% I/O 2/7/2025 Senior Loan 19, Portland, OR N/A 109.6 71.3 L + 5.5% I/O 4/5/2021 Senior Loan 20, San Diego, CA N/A 102.3 101.2 L + 3.3% I/O 2/7/2025 Senior Loan 21, Chicago, IL N/A 100.7 100.0 L + 4.7% I/O 6/7/2024 Senior Loan 22, New York, NY N/A 99.1 98.2 L + 4.7% I/O 10/5/2021 Senior Loan 23, Seattle, WA N/A 92.3 92.0 L + 2.6% I/O 9/7/2023 Senior Loan 24, Los Angeles, CA N/A 91.0 90.5 L + 2.8% I/O 1/7/2023 Senior Loan 25, New York, NY N/A 86.0 85.9 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, Austin, TX N/A 78.0 77.1 L + 3.7% I/O 12/7/2024 Senior Loan 28, Philadelphia, PA N/A 77.0 76.6 L + 2.7% I/O 11/7/2023 Senior Loan 29, Brooklyn, NY N/A 76.9 74.1 L + 2.9% I/O 2/7/2024 Senior Loan 30, Herndon, VA N/A 73.1 72.5 L + 2.5% I/O 1/7/2025 Senior Loan 31, Washington D.C. N/A 72.9 71.3 L + 3.4% I/O 1/7/2025 Senior Loan 32, State College, PA N/A 71.2 70.6 L + 2.7% I/O 11/7/2024 Senior Loan 33, Arlington, VA N/A 68.5 67.7 L + 3.8% I/O 10/7/2025 Senior Loan 34, Austin, TX N/A 67.5 67.0 L + 2.5% I/O 9/7/2024 Senior Loan 35, Queens, NY N/A 66.9 63.9 L + 3.0% I/O 8/7/2022 Senior Loan 36, Washington D.C. N/A 65.0 64.3 L + 3.5% I/O 12/7/2025 Senior Loan 37, Denver, CO N/A 38.7 38.3 L + 3.6% I/O 11/7/2024 Senior Loan 38, Denver, CO N/A 18.4 17.6 L + 3.8% I/O 1/7/2026 Mezzanine Loans Mezzanine Loan 1, Westbury, NY N/A 20.0 19.6 L + 9.0% I/O 8/1/2024 Mezzanine Loan 2, Oakland, CA N/A 14.8 15.0 L + 12.9% I/O 11/7/2025 Mezzanine Loan 3, Various N/A 5.5 0.9 11.0 I/O 7/6/2025 (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 (F) Excludes one real estate corporate loan to a multifamily operator with an outstanding principal and a carrying amount of $50.0 million and $48.0 million, respectively.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)12 Months Ended
Dec. 31, 2020
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.
Risks and UncertaintiesRisks and Uncertainties — The outbreak of the coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The impact of the outbreak has been rapidly evolving around the globe, with several countries taking drastic measures to limit the spread of the virus by instituting quarantines or lockdowns, imposing travel restrictions and limiting operations of non-essential offices and retail centers. Such actions are creating significant disruptions to global supply chains, increasing rates of unemployment and adversely impacting several industries, including but not limited to, airlines, hospitality, retail and the broader real estate industry. The major disruption caused by COVID-19 significantly reduced economic activity in most of the United States resulting in a significant increase in unemployment claims and a significant decline in the U.S. Gross Domestic Product (“GDP”). Due to the current COVID-19 pandemic in the United States and globally, KREF’s operating partners, borrowers and their tenants, the properties securing KREF’s investments, and the economy as a whole have been, and will continue to be, adversely impacted. The magnitude and duration of the COVID-19 pandemic and its impact on KREF’s borrowers and their tenants, cash flows and future results of operations has been significant, and its continued impact will largely depend on future developments, which are highly uncertain and cannot be predicted. Although there are effective vaccines for COVID-19 that have been approved for use, distribution of the vaccines did not begin until late 2020, and a majority of the public will likely not have access to a vaccination until sometime in 2021. Accordingly, given the ongoing nature of the outbreak, at this time we cannot reasonably estimate the magnitude of the ultimate impact that COVID-19 will have on the Company’s business, financial performance and operating results. We believe COVID-19’s adverse impact on KREF’s business, financial performance and operating results will in part be significantly driven by a number of factors that the Company is unable to predict or control, including, for example: the severity and duration of the pandemic; the pandemic’s impact on the U.S. and global economies, including concerns regarding additional surges of the pandemic or the expansion of the economic impact thereof as a result of certain jurisdictions “re-opening” or otherwise lifting certain restrictions prematurely; the availability of U.S. federal, state, local or non-U.S. funding programs aimed at supporting the economy during the COVID 19 pandemic, including uncertainties regarding the potential implementation of new or extended programs; the timing, scope and effectiveness of additional governmental responses to the pandemic; the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19; and the negative impact on the Company’s financing sources, vendors and other business partners that may indirectly adversely affect KREF. The prolonged duration and impact of the COVID-19 pandemic could materially disrupt our business operations and impact our financial performance. The COVID-19 pandemic has resulted in significant disruptions in financial markets, business shutdowns and uncertainty about how the U.S. and global economy will perform over the next several months. Possible future declines in rental rates and expectations of future rental concessions, including free rent to renew tenants early, to retain tenants who are up for renewal or to attract new tenants, or rent abatements for tenants severely impacted by the COVID-19 pandemic may result in decreases in cash flows to KREF’s borrowers and potentially in defaults in paying debt service on outstanding indebtedness, which could adversely impact the Company’s results of operations and financial performance. Impending declines in economic conditions could negatively impact real estate and real estate capital markets and result in lower occupancy, lower rental rates and declining values in KREF’s portfolio, which could adversely impact the value of KREF’s investments, making it more difficult for the Company to make distributions or meet our financing obligations.
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. The effects of COVID-19 may negatively and materially impact significant estimates and assumptions used by the Company including, but not limited to estimates of expected credit losses, valuation of our equity method investments and the fair value estimates of the Company’s assets and liabilities . Actual results could materially differ from those estimates.
ConsolidationConsolidation — KREF consolidates those entities for which (i) it controls through either majority ownership or voting rights or (ii) management determines that KREF is the primary beneficiary of entities deemed to be variable interest entities ("VIEs"). Variable Interest Entities — VIEs are entities (i) in which equity investors do not have an interest with the characteristics of a controlling financial interest, (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties or (iii) established with non-substantive voting rights. 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 the VIE's 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 9). 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 real estate loans, held-for-investment, net” on the 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 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 VIEs 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 VIEs 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 VIEs, 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 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 VIEs. Management separately presents the assets and liabilities of KREF's consolidated VIEs as individual line items on KREF's Consolidated Balance Sheets for entities in which the VIEs assets can only be used to settle the VIE’s obligations. The liabilities of KREF's consolidated VIEs 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 real estate loans and the interest accrued thereon, and are likewise presented as a single line item entitled "Assets — Commercial real estate 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 VIEs are not individually accessible by, and obligations of the CMBS VIEs 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 VIEs. 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 (Note 9).
Temporary EquityTemporary Equity — KREF's 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 SN VPS to its redemption value quarterly. Accordingly, KREF adjusted the carrying value of the SNVPS to its redemption value of $1.9 million as of December 31, 2020, and recorded a $0.2 million non-cash redemption value adjustment to the SNVPS (“SNVPS Redemption Value Adjustment”) during the year ended December 31, 2020, respectively. Such adjustment is treated similar to a dividend on preferred st ock for GAAP purposes, accordingly, the SNVPS Redemption Value Adjustment is therefore deducted from (or added back to) “Net Income (Loss)” to arrive at “Net Income (Loss) Attributable to Common Stockholders” on KREF's Consolidated Statements of Income.
Equity method investmentsEquity 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, however KREF is not the primary beneficiary. KREF does not have substantive participating or kick-out rights nor 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 (Note 9). Management determined that KREF's 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. KREF records its share of net asset value in RECOP I in “Equity method investments” on its Consolidated Balance Sheets and its share of unrealized gains or losses in "Income from equity method investments" in its Consolidated Statements of Income. Management elected the fair value option for KREF's investment in RECOP I. 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.
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. Valuation Process — The Manager reviews the valuation of Level 3 financial instruments as part of KKR's quarterly process. As of December 31, 2020, 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 Real Estate Loans and Participation Sold — Management generally considers KREF's commercial real estate loans Level 3 assets in the fair value hierarchy as such assets are illiquid, structured investments that are specific to the sponsor, underlying property and its operating performance (Note 14). 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/or estimated property value. 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 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 after evaluating any additional evidence. However, if management continues to disagree with the price from the independent valuation firm, in light of evidence that management compiled independently and believes to be compelling, valuations are then 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 in addition to understanding the valuation methodologies used by the market makers. These market participants may 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. 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 consolidated CMBS trusts 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 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 consolidated CMBS trusts 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 9). 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 real estate 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.
Sales of Financial Assets and Financing AgreementsSales of Financial Assets and Financing Agreements — KREF will, from time to time, transfer 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.
Recent Accounting PronouncementsAdoption of ASU No. 2016-13, Financial Instruments — Credit Losses — On January 1, 2020, KREF adopted ASU No. 2016-13, Financial Instruments-Credit Losses , and subsequent amendments (“ASU 2016-13”), which replaces the incurred loss methodology with an expected loss model known as the Current Expected Credit Loss ("CECL") model. CECL amends the previous credit loss model to reflect a reporting entity's current estimate of all expected credit losses, not only based on historical experience and current conditions, but also by including reasonable and supportable forecasts incorporating forward-looking information. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, and off-balance sheet credit exposures such as unfunded loan commitments. The allowance for credit losses required under ASU 2016-13 is deducted from the respective loans’ amortized cost basis on KREF's consolidated balance sheets. The allowance for credit losses attributed to unfunded loan commitments is included in “Accounts payable, accrued expenses and other liabilities” on the consolidated balance sheets. The guidance also requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. In connection with KREF’s adoption of ASU 2016-13 on January 1, 2020, KREF implemented new processes including the utilization of loan loss forecasting models, updates to KREF's reserve policy documentation, changes to internal reporting processes and related internal controls. KREF has implemented loan loss forecasting models for estimating expected life-time credit losses, at the individual loan level, for its commercial real estate loan portfolio. The CECL forecasting methods used by KREF include (i) a probability of default and loss given default method using underlying third-party CMBS/CRE loan database with historical loan losses from 1998 to 2020 and (ii) probability weighted expected cash flow method, depending on the type of loan and the availability of relevant historical market loan loss data. KREF might use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. KREF estimates the CECL allowance for its loan portfolio, including unfunded loan commitments, at the individual loan level. Significant inputs to KREF’s forecasting methods include (i) key loan-specific inputs such as loan-to-value ("LTV"), vintage year, loan-term, underlying property type, occupancy, geographic location, and expected timing and amount of future loan fundings, (ii) performance against the underwritten business plan and KREF's internal loan risk rating and (iii) a macro-economic forecast. These estimates may change in future periods based on available future macro-economic data and might result in a material change in the KREF’s future estimates of expected credit losses for its loan portfolio. KREF considers the individual loan internal risk rating as the primary credit quality indicator underlying the CECL assessment. In certain instances, KREF considers relevant loan-specific qualitative factors to certain loans to estimate its CECL allowance. KREF considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that KREF determines that foreclosure of the collateral is probable, KREF measures the expected losses based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that KREF determines foreclosure is not probable, KREF applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and t he amortized cost basis of the loan. Recent Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to the US GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance is effective upon issuance and generally may be elected over time through December 31, 2022. KREF has not adopted any of the optional expedients or exceptions through December 31, 2020, but will continue to evaluate the possible adoption of any such expedients or exceptions during the effective period as circumstances evolve. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies an issuer’s accounting for convertible instruments and its application of the derivatives scope exception for contracts in its own equity. The guidance also addresses how convertible instruments are accounted for in the diluted EPS calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The guidance is effective for KREF in the first quarter of 2022. The guidance allows the use of a modified or full retrospective transition method. KREF is evaluating the impact of ASU 2020-06.
Commercial Real Estate Loans Held-For-Investment and Allowance for Credit LossesCommercial Real Estate Loans Held-For-Investment and Allowance for Credit Losses — KREF recognizes its investments in commercial real estate 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 principal, net of applicable (i) unamortized origination or acquisition premiums and discounts, (ii) unamortized deferred nonrefundable fees and other direct loan origination costs, and (iii) allowance for credit losses, net of write-offs of impaired loans . If a loan is determined to be impaired, management writes off the loan through a charge to the "Allowance for credit losses". See " Expense Recognition
Commercial Real Estate Loans Held-For-SaleCommercial Real Estate 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 Real Estate Loans, Held-For-Sale — For commercial real estate 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.
Secured Financing Agreements, Secured Term Loan, Net and Convertible Notes, NetSecured Financing Agreements — KREF's secured financing agreements, including uncommitted repurchase facilities, Term Lending Agreement, Warehouse Facility, 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. Secured Term Loan, Net — KREF records its secured term loan at its contractual amount, net of unamortized original issuance discount and deferred financing costs (Note 6) on its consolidated balance sheet. Any original issuance discount or deferred financing costs are amortized through the maturity date of the secured term loan as additional non-cash interest expense. 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
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 the transaction is recognized as a sale under GAAP, 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 a sale is recognized under GAAP 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.
Dividends PayableDividends Payable — K
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. As a result, starting with the second quarter of 2018, KREF adjusts the carrying value of the SNVPS to its redemption value quarterly.
Repurchased StockRepurchased Stock — KREF accounts for repurchases of its common stock based on the settlement date and presents repurchased stock in “Repurchased stock” on its Consolidated Balance Sheets (Note 10). Payments for stock repurchases that are not yet settled as of the reporting date are presented within “Other assets” on the Consolidated Balance Sheets.
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 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.
Commercial Mortgage Loans, Held-For-Investment80%), 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.">Commercial Real Estate Loans, Held-For-Investment — For each loan in KREF's portfolio, management performs a quarterly evaluation of credit quality 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 credit quality indicators 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, deterioration in credit quality of that loan is indicated. Management evaluates all available facts and circumstances that might impact KREF’s ability to collect outstanding loan balances when determining loan write-offs. These facts and circumstances may vary and may include, but are not limited to, (i) significant deterioration in the underlying collateral performance and/or value, if repayment is solely based on the collateral, (ii) correspondence from the borrower indicating that it does not intend to pay the contractual principal and interest, (iii) violation of multiple debt covenants without indication the borrower has the ability to remediate such violations, (iv) occurrence of one or more events of default by the borrower, or (v) KREF has sufficient information to determine that the borrower is insolvent, or the borrower has filed for bankruptcy, and the value of the underlying collateral is below the loan basis. If management considers a loan to be impaired, management writes-off the loan through a charge to "Allowance for credit losses" based on 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 credit 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 repayment 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. Interest received on loans placed on nonaccrual status are accounted for under the cost-recovery method, until qualifying for return to accrual. Management may return a loan to accrual status when repayment of principal and interest is reasonably assured under the terms of the restructured loan. During the year ended December 31, 2020, management placed one senior loan and one mezzanine loan with a total outstanding principal balance of $115.1 million on nonaccrual status and wrote off $4.7 million (the "Write-off") of the $5.5 million mezzanine loan balance determined uncollectable (Note 3). As of December 31, 2020, no other loan was placed on nonaccrual status or otherwise considered past due. In certain circumstances, KREF may also modify the original terms of a loan agreement by granting a concession to a borrower experiencing financial difficulty. Such modifications are considered troubled debt restructurings (“TDR”) under GAAP and typically include interest rate reductions, payment extension and modification of loan covena nts. Refer to Note 3 for additional discussion of loan modifications. In conjunction with reviewing commercial real estate loans held-for-investment for impairment, the Manager evaluates KREF's commercial real estate loans on a quarterly basis, 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.
Accrued Interest ReceivablesAccrued Interest Receivables — KREF elected not to measure an allowance for credit losses for accrued interest receivables. KREF generally writes off accrued interest receivable balance when interest is 120 days or more past due unless the loan is both well secured and in the process of collection. Write-offs of accr ued interest receivable are recognized as “Provision for credit losses, net” in the Consolidated Statements of Income.
Interest ExpenseInterest Expense
Deferred Debt Issuance CostsDeferred Debt Issuance Costs — KREF 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 — KREF 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
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 15). As of December 31, 2020 and 2019, 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, 2020, KREF did not have any material uncertain tax positions.
Stock-Based CompensationStock-Based CompensationKREF'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. KREF 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 accounts for forfeitures as they occur.
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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of Impact of Adoption of ASU 2016-13The following table illustrates the day-one financial statements impact of the adoption of ASU 2016-13 on January 1, 2020: Pre-adoption Transition Adjustment Post-adoption Assets Commercial real estate loans, held-for-investment $ 4,931,042 $ — $ 4,931,042 Less: Allowance for credit losses — (13,909) (13,909) Commercial real estate loans, held-for-investment, net $ 4,931,042 $ (13,909) $ 4,917,133 Liabilities Accounts payable, accrued expenses and other liabilities (A) $ 3,363 $ 1,100 $ 4,463 Permanent Equity Accumulated deficit $ (8,594) $ (15,009) $ (23,603) (A) Includes reserve for unfunded loan commitments.

Commercial Real Estate Loans (T

Commercial Real Estate Loans (Tables)12 Months Ended
Dec. 31, 2020
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 summarizes KREF's investments in commercial real estate loans as of December 31, 2020 and 2019: Weighted Average Loan Type Outstanding Principal Amortized Cost (A) Carrying Value (B) Loan Count Floating Rate Loan % (C) Coupon (C) Life (Years) (D) December 31, 2020 Loans held-for-investment Senior loans (E) $ 4,779,367 $ 4,759,624 $ 4,701,268 38 100.0 % 4.7 % 3.3 Mezzanine and other loans (F) 90,329 84,910 83,465 4 93.9 12.6 4.6 $ 4,869,696 $ 4,844,534 $ 4,784,733 42 99.9 % 4.9 % 3.3 December 31, 2019 Loans held-for-investment Senior loans (E) $ 4,919,298 $ 4,890,408 $ 4,890,408 37 100.0 % 5.0 % 4.1 Mezzanine and other loans 41,400 40,634 40,634 2 86.7 9.6 4.6 $ 4,960,698 $ 4,931,042 $ 4,931,042 39 99.9 % 5.1 % 4.1 (A) Amortized cost represents the outstanding principal of loan, net of applicable unamortized discounts, loan origination fees and write-off on uncollectable loan balances. (B) Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses. (C) Average weighted by outstanding principal of loan. Weighted average coupon assumes the greater of applicable one-month LIBOR rates of 0.14% a nd 1.76% as of December 31, 2020 and 2019, respectively, or the applicable contractual LIBOR floor. (D) 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. (E) Senior loans may include accommodation mezzanine loans in connection with the senior mortgage financing. Also, includes vertical loan participations sold with a principal and a carrying value of $66.2 million as of December 31, 2020 and a principal and a carrying value of $65.0 million as of December 31, 2019, respectively. Includes CLO loan participations of $1.0 billion a s of December 31, 2020 and 2019, respectively. (F) Includes one real estate corporate loan to a multifamily operator with a principal and a carrying value of $50.0 million and $48.0 million, respectively. Amortized Cost Allowance for Carrying Value 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 Originations and future fundings, net (A) 966,182 — 966,182 Proceeds from sales and principal repayments (B) (1,069,494) — (1,069,494) Accretion of loan discount and other amortization, net (C) 17,222 — 17,222 PIK interest 4,232 — 4,232 Cumulative-effect adjustment upon adoption of ASU 2016-13 — (13,909) (13,909) Provision for credit losses, net — (50,542) (50,542) Loan write-off (4,650) 4,650 — Balance at December 31, 2020 $ 4,844,534 $ (59,801) $ 4,784,733 (A) Net of applicable premiums, discounts and deferred loan origination costs. Includes fundings on previously originated loans. (B) Includes $27.9 million and $142.8 million in net proceeds from non-recourse sale of senior interests during the years ended December 31, 2020 and 2019, respectively. Includes $65.0 million in loan repayment proceeds from pari passu loan syndication, which did not qualify for sale accounting under GAAP, during the year ended December 31, 2019. (C) Includes accretion of applicable discounts, certain fees and deferred loan origination costs. The following tables summarize the principal balance and net book value of the loan portfolio based on KREF's internal risk ratings: December 31, 2020 December 31, 2019 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 1 $ 85,730 $ 86,000 1.7 % 2 2 321,686 323,026 6.5 2 5 450,827 451,858 9.0 3 32 3,715,132 3,836,983 77.3 3 33 4,394,485 4,501,440 89.3 4 6 675,727 687,040 13.9 4 — — — — 5 2 72,188 115,071 2.3 5 — — — — 42 $ 4,784,733 $ 4,962,120 100.0 % 39 $ 4,931,042 $ 5,039,298 100.0 % (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 $158.7 million and $143.6 million of such non-consolidated interests, and excludes $66.2 million and $65.0 million vertical loan participation as of December 31, 2020 and 2019, respectively.
Amortized Cost of Loan PortfolioThe following table presents the amortized cost of the loan portfolio at December 31, 2020, by KREF's internal risk rating and year of origination. The risk ratings are updated as of December 31, 2020. December 31, 2020 Amortized Cost by Year of Origination Risk Rating Number of Loans Outstanding Principal 2020 2019 2018 2017 2016 2015 Total Carrying Amount Commercial Real Estate Loans 1 — $ — $ — $ — $ — $ — $ — $ — $ — $ — 2 2 323,026 — 128,514 — 193,633 — — 322,147 321,686 3 32 3,744,559 461,406 2,105,972 1,159,818 — — — 3,727,196 3,715,132 4 6 687,040 101,586 76,670 340,745 165,751 — — 684,752 675,727 5 2 115,071 — — — — — 110,439 110,439 72,188 42 $ 4,869,696 $ 562,992 $ 2,311,156 $ 1,500,563 $ 359,384 $ — $ 110,439 $ 4,844,534 $ 4,784,733
Allowance for Credit LossesFor the year ended December 31, 2020, the changes to allowance for credit losses were as following: Commercial Mortgage Loans Unfunded Loan Commitments Total Balance at December 31, 2019 $ — $ — $ — Cumulative-effect adjustment upon adoption of ASU 2016-13 13,909 1,100 15,009 Provision for credit losses, net 50,542 (198) 50,344 Write-off charged (4,650) — (4,650) Balance as December 31, 2020 $ 59,801 $ 902 $ 60,703
Concentration of Risk, by Risk FactorThe following tables present the geographies and property types of collateral underlying KREF's commercial real estate loans as a percentage of the loans' principal amounts: December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Geography (A) Collateral Property Type New York 14.5 % 22.5 % Multifamily 51.0 % 58.3 % Illinois 11.8 9.7 Office 30.2 25.5 Virginia 10.1 8.2 Condo (Residential) 6.1 3.0 Pennsylvania 9.7 9.2 Retail 5.0 4.7 Massachusetts 8.4 7.7 Hospitality 4.5 4.4 California 7.7 6.9 Industrial 1.8 2.8 Washington 7.2 6.9 Student Housing 1.4 1.3 Texas 6.6 2.5 Total 100.0 % 100.0 % Florida 5.7 6.9 Colorado 4.7 2.8 Minnesota 4.0 3.7 Washington D.C. 2.9 0.9 Oregon 2.3 2.5 Georgia 1.8 4.3 Alabama 1.4 1.2 New Jersey — 3.1 Other U.S. 1.2 1.0 Total 100.0 % 100.0 % (A) Excludes one real estate corporate loan to a multifamily operator with an outstanding principal amount of $50.0 million, representing 1.0% of KREF’s commercial real estate loans, at December 31, 2020.

Debt Obligations (Tables)

Debt Obligations (Tables)12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]
Schedule of Debt InstrumentsThe following table summarizes KREF's secured master repurchase agreements and other financing arrangements in place as of December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Facility Collateral Facility Month Issued Outstanding Principal Carrying Value (A) Maximum Facility Size Final Stated Maturity Weighted Average Funding Cost (B) Weighted Average Life (Years) (B) Outstanding Principal Amortized Cost Basis Carrying Value Weighted Average Life (Years) (C) Carrying Value (A) Master Repurchase Agreements (D) Wells Fargo (E) Oct 2015 $ 446,208 $ 443,745 $ 1,000,000 Nov 2023 1.8 % 2.0 $ 683,726 $ 680,839 $ 641,429 3.3 $ 464,933 Morgan Stanley (F) Dec 2016 150,150 148,772 600,000 Dec 2022 2.2 2.0 221,310 219,429 218,438 5.0 392,279 Goldman Sachs (G) Sep 2016 76,762 76,163 240,000 Oct 2023 3.2 1.9 157,572 157,379 156,425 1.9 223,867 Term Lending Agreement KREF Lending V (H) Jun 2019 900,000 899,363 900,000 Jun 2026 2.1 1.5 1,120,637 1,115,291 1,110,845 3.4 868,816 Warehouse Facility HSBC Facility (I) Mar 2020 — (353) 500,000 Mar 2023 — 2.2 — — — n.a — Asset Specific Financing BMO Facility (J) Aug 2018 60,000 59,795 300,000 n.a 1.9 3.1 76,000 75,750 73,181 3.1 141,120 Revolving Credit Agreement Revolver (K) Dec 2018 — — 335,000 Dec 2023 — 2.9 n.a n.a n.a n.a — Total / Weighted Average $ 1,633,120 $ 1,627,485 $ 3,875,000 2.1 % 1.8 $ 2,091,015 (A) Net of $5.6 million and $9.5 million unamortized debt issuance costs as of December 31, 2020 and 2019, respectively. (B) Average weighte d by the outstanding principal of borrowings. Funding cost includes deferred financing costs. (C) Average based on the fully extended loan maturity, weighted by the outstanding principal 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, 2020 and 2019, the percentage of the outstanding principal of the collateral sold and not borrowed under these repurchase agreements, or average "haircut" weighted by outstanding principal of collateral, wa s 36.7% and 27.4%, respectively (or 34.8% and 25.7%, 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, 2020, the collateral-based margin was betwee n 1.25% and 2.15%. (F) In November 2020, the current stated maturity was extended to December 2021, with one-year extension option upon KREF giving written notice and another two one-year extension periods subject to approval by Morgan Stanley. In addition, KREF has the option to increase the facility amount to $750.0 million. As of December 31, 2020, the collateral-based margin was be tween 1.75% and 2.15%. (G) In May 2020, the facility was amended to extend the current stated maturity date to October 30, 2021. In addition, KREF has the option to extend the maturity date to October 31, 2023 by (i) electing to permanently reduce the maximum advance rate for each pledged loan to the lesser of 65% or the advance rate in effect for such loan at October 30, 2021, and (ii) payment of the applicable contractual fee, subject to the satisfaction of certain conditions. As of December 31, 2020, the collateral-base margin was betwe en 1.90% and 2.00%. (H) In June 2019, 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, 2020, the Initial Buyer held 22.2% 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 March 2020, KREF entered into a $500.0 million Loan and Security Agreement with HSBC Bank USA, National Association (“HSBC Facility”). The facility, which matures in March 2023, provides warehouse financing on a non-mark-to-market basis with partial recourse to KREF. (J) 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, 2020, the collateral-based margin was 1.70%. (K) 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 and 2020, further increasing the borrowing capacity under the Revolver to $335.0 million as of December 31, 2020. The current stated maturity of the facility is D ecember 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, 2020, the carrying value excluded $2.5 million unamortized d ebt issuance costs presented within "Other assets" on KREF's Consolidated Balance Sheets. December 31, 2020 Term Loan Facility Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 13 $ 1,155,378 $ 1,151,144 $ 1,147,517 L + 3.0% n.a. January 2024 Financing provided n.a. 948,204 947,262 947,262 L + 1.9% n.a. January 2024 December 31, 2019 Term Loan Facility Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (A) Guarantee (B) Wtd. Avg. Term (C) Collateral assets 12 $ 1,003,995 $ 997,081 $ 997,081 L + 3.0% n.a. November 2023 Financing provided n.a. 798,180 793,872 793,872 L + 1.9% n.a. November 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. Secured Financing Agreements, Net 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 Principal borrowings 1,015,430 Principal repayments/sales (1,332,822) Deferred debt issuance costs (5,505) Amortization of deferred debt issuance costs 12,757 Balance as of December 31, 2020 $ 2,574,747
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, 2020 and 2019: Outstanding Principal Net Counterparty Exposure Percent of Stockholders' Equity Weighted Average Life (Years) (A) December 31, 2020 Wells Fargo $ 446,208 $ 196,715 18.9 % 2.0 Term Lending Agreement (B) 900,000 214,135 20.5 1.5 Total / Weighted Average $ 1,346,208 $ 410,850 39.4 % 1.7 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 (A) Average weighted by the outstanding principal of borrowings under the secured financing agreement. (B) There were multiple counterparties to the Term Lending Agreement. Morgan Stanley Bank, N.A. represented 4.6% and 8.9% of the net counterparty exposure as a percent of stockholders' equity as of December 31, 2020 and 2019, respectively.
Schedule of Maturities of Debt ObligationsKREF’s secured financing agreements, term loan financing and other consolidated debt obligations in place as of December 31, 2020 had contractual maturities as follows: Year Nonrecourse Recourse (A) Total 2021 807,080 88,648 895,728 2022 837,116 239,072 1,076,188 2023 346,953 40,130 387,083 2024 181,896 40,429 222,325 Thereafter — — — $ 2,173,045 $ 408,279 $ 2,581,324 (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, 2020
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, 2020 and 2019: December 31, 2020 Collateralized Loan Obligation Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (B) Wtd. Avg. Term (C) Collateral assets (A) 21 $ 1,000,000 $ 1,000,000 $ 997,336 L + 2.9% March 2024 Financing provided 1 810,000 810,000 810,000 L + 1.4% June 2036 December 31, 2019 Collateralized Loan Obligation Count Outstanding Principal Amortized Cost Carrying Value Wtd. Avg. Yield/Cost (B) Wtd. Avg. Term (C) Collateral assets (A) 22 $ 1,000,000 $ 1,000,000 $ 1,000,000 L + 2.8% November 2023 Financing provided 1 810,000 803,376 803,376 L + 1.8% June 2036 (A) Collateral loan assets repres ent 20.5% and 20.2% of the principal of KREF's commercial real estate loans as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, 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, which were fully amortized as of December 31, 2020. (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, 2020 December 31, 2019 Commercial real estate loans, held-for-investment $ 1,000,483 $ 1,000,000 Less: Allowance for credit losses (2,669) — Commercial real estate loans, held-for-investment, net 997,814 1,000,000 Accrued interest receivable 3,075 3,280 Other assets 5 5 Total $ 1,000,894 $ 1,003,285 Liabilities Collateralized loan obligation, net $ 810,000 $ 803,376 Accrued interest payable 668 1,254 Accounts payable, accrued expenses and other liabilities 72 72 Total $ 810,740 $ 804,702
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: For the Year Ended December 31, 2020 2019 Net Interest Income Interest income $ 45,617 $ 53,896 Interest expense (A) 26,853 38,427 Net interest income $ 18,764 $ 15,469 (A) Includes $6.8 million and $3.3 million of deferred financing costs amortization for the years ended December 31, 2020 and 2019, respectively. KREF's unamortized deferred financing costs related to KREF 2018-FL1 we re $0.0 million an d $6.6 million, as of December 31, 2020 and 2019, respectively.

Secured Term Loan, Net (Tables)

Secured Term Loan, Net (Tables)12 Months Ended
Dec. 31, 2020
Secured Term Loan, Net [Abstract]
Summary of Secured Term LoanThe following table summarizes KREF’s secured term loan at December 31, 2020: December 31, 2020 Principal amount $ 300,000 Unamortized discount (7,145) Deferred financing costs (4,827) Carrying amount $ 288,028

Convertible Notes, Net (Tables)

Convertible Notes, Net (Tables)12 Months Ended
Dec. 31, 2020
Debt Disclosure [Abstract]
Interest Expense, DebtThe following table details the interest expense related to the Convertible Notes: For the Year Ended December 31, 2020 2019 Cash coupon $ 8,805 $ 8,804 Discount and issuance cost amortization 1,390 1,386 Total interest expense $ 10,195 $ 10,190
Net Book ValueThe following table details the net book value of the Convertible Notes on KREF's Consolidated Balance Sheets: December 31, 2020 December 31, 2019 Principal $ 143,750 $ 143,750 Deferred financing costs (2,431) (3,460) Unamortized discount (854) (1,215) Net book value $ 140,465 $ 139,075

Loan Participations Sold (Table

Loan Participations Sold (Tables)12 Months Ended
Dec. 31, 2020
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, 2020 and 2019: December 31, 2020 Loan Participations Sold Count Principal Balance Amortized Cost Carrying Value Yield/Cost (A) Guarantee Term Total loan 1 $ 337,327 $ 336,329 $ 335,507 L + 2.6% n.a. July 2024 Vertical loan participation (B) 1 66,248 66,232 66,232 L + 2.6% n.a. July 2024 December 31, 2019 Loan Participations Sold Count Principal Balance Amortized Cost Carrying Value Yield/Cost (A) Guarantee Term Total loan 1 $ 328,500 $ 326,881 $ 326,881 L + 2.5% n.a. July 2024 Vertical loan participation (B) 1 65,000 64,966 64,966 L + 2.5% n.a. July 2024 (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, 2020 and 2019, KREF recorded $2.9 million and $0.6 million of interest income, and $2.9 million and $0.6 million of interest expense, respectively, related to the vertical loan participation sold.

Equity (Tables)

Equity (Tables)12 Months Ended
Dec. 31, 2020
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.
Dividends DeclaredDuring the years ended December 31, 2020 and 2019, 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 2020 March 16, 2020 March 31, 2020 April 15, 2020 $ 0.43 $ 24,010 June 15, 2020 June 30, 2020 July 15, 2020 0.43 23,861 September 15, 2020 September 30, 2020 October 15, 2020 0.43 23,861 December 15, 2020 December 31, 2020 January 15, 2021 0.43 23,916 $ 95,648 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, 2021 0.43 24,719 $ 98,860
Schedule of Earnings Per Share, Basic and DilutedThe following table illustrates the computation of basic and diluted earnings (loss) per share for the years ended December 31, 2020, 2019 and 2018: For the Year Ended December 31, 2020 2019 2018 Numerator Net income (loss) attributable to common stockholders $ 53,553 $ 90,492 $ 87,293 Denominator Basic weighted average common shares outstanding 55,985,014 57,426,912 55,136,548 Dilutive restricted stock units 72,223 105,578 34,513 Diluted weighted average common shares outstanding 56,057,237 57,532,490 55,171,061 Net income (loss) attributable to common stockholders, per: Basic common share $ 0.96 $ 1.58 $ 1.58 Diluted common share $ 0.96 $ 1.57 $ 1.58

Stock-based Compensation (Table

Stock-based Compensation (Tables)12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Restricted Stock Unit 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, 2019 641,214 $ 20.02 Granted 443,052 17.77 Vested (291,418) 19.94 Forfeited/ cancelled (4,906) 20.30 Unvested as of December 31, 2020 787,942 $ 18.78 (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 2021 389,758 2022 256,508 2023 141,676 Total 787,942

Related Party Transactions (Tab

Related Party Transactions (Tables)12 Months Ended
Dec. 31, 2020
Related Party Transactions [Abstract]
Amounts Due to AffiliatesThe following table contains the amounts presented in KREF's Consolidated Balance Sheets that it owes to affiliates: December 31, 2020 December 31, 2019 Management fees $ 4,252 $ 4,280 Expense reimbursements and other 1,991 1,637 $ 6,243 $ 5,917 For The Year Ended December 31, 2020 2019 2018 Management fees $ 16,992 $ 17,135 $ 16,346 Incentive compensation 6,774 3,272 4,756 Expense reimbursements and other (A) 1,668 1,469 1,184 $ 25,434 $ 21,876 $ 22,286 (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, 2020, 2019 and 2018, these cash reimbursements totaled $3.8 million, $1.8 million and $2.7 million, respectively.

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)12 Months Ended
Dec. 31, 2020
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, 2020 were as follows: Fair Value Principal Balance (A) Amortized Cost (B) Carrying Value (C) Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 110,832 $ 110,832 $ 110,832 $ 110,832 $ — $ — $ 110,832 Commercial real estate loans, held-for-investment, net (D) 4,869,696 4,844,534 4,784,733 — — 4,757,203 4,757,203 Equity method investments 33,651 33,651 33,651 — — 33,651 33,651 $ 5,014,179 $ 4,989,017 $ 4,929,216 $ 110,832 $ — $ 4,790,854 $ 4,901,686 Liabilities Secured financing agreements, net $ 2,581,324 $ 2,574,747 $ 2,574,747 $ — $ — $ 2,581,324 $ 2,581,324 Collateralized loan obligation, net 810,000 810,000 810,000 — — 803,766 803,766 Secured term loan, net 300,000 288,028 288,028 — 303,000 — 303,000 Convertible notes, net 143,750 140,465 140,465 — 145,817 — 145,817 Loan participations sold, net 66,248 66,232 66,232 — — 66,232 66,232 $ 3,901,322 $ 3,879,472 $ 3,879,472 $ — $ 448,817 $ 3,451,322 $ 3,900,139 (A) The principal balance of commercial real estate loans excludes premiums and unamortized discounts. (B) The amortized cost of commercial real estate loans is net of $4.7 million write-off on a mezzanine loan and $20.5 million unamortized origination discounts and deferred nonrefundable fees. The amortized cost of secured financing agreements is net of $6.6 million unamortized debt issuance costs. (C) The carrying value of commercial mortgage loans is net of $59.8 million allowance for credit losses. (D) Includes $1.0 billion of CLO loan participations as of December 31, 2020. Includes senior loans for which KREF syndicated a vertical loan participation that did not qualify for sale accounting under GAAP, with a carrying value and a fair value of $66.2 million as of December 31, 2020. 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, 2019 were as follows: Fair Value Principal Balance (A) Amortized Cost (B) Carrying Value Level 1 Level 2 Level 3 Total Assets Cash and cash equivalents $ 67,619 $ 67,619 $ 67,619 $ 67,619 $ — $ — $ 67,619 Commercial real estate loans, held-for-investment, net (C) 4,960,698 4,931,042 4,931,042 — — 4,937,808 4,937,808 Equity method investments 37,469 37,469 37,469 — — 37,469 37,469 $ 5,065,786 $ 5,036,130 $ 5,036,130 $ 67,619 $ — $ 4,975,277 $ 5,042,896 Liabilities Secured financing agreements, net $ 2,898,716 $ 2,884,887 $ 2,884,887 $ — $ — $ 2,898,716 $ 2,898,716 Collateralized loan obligation, net 810,000 803,376 803,376 — — 810,867 810,867 Convertible notes, net 143,750 139,075 139,075 150,719 — — 150,719 Loan participations sold, net 65,000 64,966 64,966 — — 64,966 64,966 $ 3,917,466 $ 3,892,304 $ 3,892,304 $ 150,719 $ — $ 3,774,549 $ 3,925,268 (A) The principal balance of commercial real estate loans excludes premiums and unamortized discounts. (B) The amortized cost of commercial real estate loans is presented net of $29.7 million unamortized origination discounts and deferred nonrefundable fees. The amortized cost of secured financing agreements is presented net of $13.8 million unamortized debt issuance costs. The amortized cost 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 did not qualify for sale accounting under GAAP, with a carrying value and a fair value of $65.0 million as of December 31, 2019.
Fair Value Level 3 Inputs, LiabilitiesThe 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, 2020: Fair Value Valuation Methodologies Unobservable Inputs (A) Weighted Average (B) Range Assets (C) Commercial real estate loans, held-for-investment (D) $ 4,757,203 Discounted cash flow Discount rate 4.7% 2.4% - 19.1% $ 4,757,203 Liabilities (E) Collateralized loan obligation, net $ 803,766 Discounted cash flow Yield 2.1% 1.6% - 4.2% $ 803,766 (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 $33.3 million investment in an aggregator vehicle alongside RECOP I (Note 9) at its pro rata share of the aggregator's net asset value, which management believes approximates fair value. (D) Commercial real estate loans are generally valued using a discounted cash flow model using discount rate derived from relevant market indices and/or estimates of the underlying property's value. (E) Does not include $66.2 million of vertical loan syndication which was syndicated at par value and included in “Loan participation sold, net” on the Consolidated Balance Sheet.

Income Taxes (Tables)

Income Taxes (Tables)12 Months Ended
Dec. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Common Stock DistributionsCommon stock distributions treated as dividends for tax purposes were taxable as follows: Year Ordinary Qualified Long Term Return of 2020 100.0 % 0.8 % — % — % 2019 99.1 1.6 0.9 — 2018 88.3 0.6 11.7 —

Subsequent Events (Tables)

Subsequent Events (Tables)12 Months Ended
Dec. 31, 2020
Subsequent Events [Abstract]
Schedule of Senior NotesKREF originated the following loans: Description/ Location Property Type Month Originated Committed Principal Amount Initial Principal Funded Interest Rate (A) Maturity Date (B) LTV Senior Loan, Dallas, TX Office January 2021 $ 87,000 $ 87,000 L + 3.3% February 2026 65% Senior Loan, Boston, MA (C) Office February 2021 187,500 187,500 L + 3.3 February 2026 71 Total/ Weighted Average $ 274,500 $ 274,500 L + 3.3% 69% (A) Floating rate based on one-month USD LIBOR. (B) Maturity date assumes all extension options are exercised, if applicable. (C) The total whole loan is $375.0 million, co-originated and co-funded by the Company and a KKR affiliate on a pari passu basis. The Company's interest is 50% of the loan.

Summary Quarterly Consolidate_2

Summary Quarterly Consolidated Financial Information (Unaudited) (Tables)12 Months Ended
Dec. 31, 2020
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, 2020 and 2019: 2020 Quarter Ended Year Ended March 31 June 30 September 30 December 31 December 31, 2020 Net Interest Income Interest income $ 71,079 $ 67,219 $ 67,689 $ 63,201 $ 269,188 Interest expense 39,082 30,563 28,832 28,835 127,312 Total net interest income 31,997 36,656 38,857 34,366 141,876 Other Income (Loss) (1,541) 493 1,075 1,254 1,281 Operating Expenses 64,946 8,147 8,650 6,605 88,348 Income (Loss) Before Income Taxes, Preferred Dividends and Redemption Value Adjustment (34,490) 29,002 31,282 29,015 54,809 Income tax expense 82 77 96 157 412 Net Income (Loss) $ (34,572) $ 28,925 $ 31,186 $ 28,858 $ 54,397 Preferred Stock Dividends and Redemption Value Adjustment 592 335 (165) 82 844 Net Income (Loss) Attributable to Common Stockholders $ (35,164) $ 28,590 $ 31,351 $ 28,776 $ 53,553 Net Income (Loss) Per Share of Common Stock Basic $ (0.61) $ 0.52 $ 0.56 $ 0.52 $ 0.96 Diluted $ (0.61) $ 0.52 $ 0.56 $ 0.52 $ 0.96 Weighted Average Number of Shares of Common Stock Outstanding Basic 57,346,726 55,491,937 55,491,405 55,619,428 55,985,014 Diluted 57,346,726 55,504,077 55,632,170 55,669,230 56,057,237 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, Preferred Dividends and Redemption Value Adjustment 24,257 17,629 23,932 24,726 90,544 Income tax expense 9 280 77 213 579 Net Income (Loss) 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

Business and Organization (Deta

Business and Organization (Details) - KKR - sharesDec. 31, 2020Dec. 31, 2019
KREF
Related Party Transaction [Line Items]
Common stock (shares)21,234,528 22,008,616
KKR Real Estate FInance Trust Inc. on Behalf of Third Party
Related Party Transaction [Line Items]
Common stock (shares)1,234,528 2,008,616

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in ThousandsDec. 15, 2020$ / sharesSep. 15, 2020$ / sharesJun. 15, 2020$ / sharesMar. 16, 2020$ / sharesJan. 01, 2020USD ($)$ / sharesDec. 16, 2019$ / sharesSep. 13, 2019$ / sharesJun. 14, 2019$ / sharesMar. 18, 2019$ / sharesDec. 31, 2020USD ($)$ / sharesDec. 31, 2020USD ($)loan$ / sharesDec. 31, 2019USD ($)$ / sharesDec. 31, 2018USD ($)$ / sharesMay 31, 2018Dec. 31, 2017USD ($)
Related Party Transaction [Line Items]
Redeemable preferred stock $ 1,852 $ 1,852 $ 1,694
Unrestricted cash and cash equivalents balance to satisfy liquidity covenants42,600 42,600 33,400
Loan repayment proceeds15,900 15,900 0
Prepaids500 500
Accrued expenses3,100 3,100 2,700
Expected loss reserve for unfunded loan commitments900 900 0
Good faith deposits $ 800 $ 800 $ 700
Dividends declared per share of common stock (usd per share) | $ / shares $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 1.72 $ 1.72 $ 1.69
Outstanding loan balance $ 115,100 $ 115,100
Cash
Related Party Transaction [Line Items]
Interest and other income500 $ 1,900
Revolving Credit Facility
Related Party Transaction [Line Items]
Deferred financing/debt issuance costs2,500 2,500 2,400
Redeemable Preferred Stock
Related Party Transaction [Line Items]
Redeemable preferred stock $ 1,852 1,852 $ 1,694 $ 2,846 $ 949
Adjustment of redeemable preferred stock to redemption value $ 200
Convertible Notes Payable | Notes Due in 2023
Related Party Transaction [Line Items]
Debt instrument, interest rate, stated percentage6.125%6.125%6.125%
Accounting Standards Update 2016-13
Related Party Transaction [Line Items]
Cumulative-effect adjustment upon adoption of ASU 2016-13 $ 15,000
Cumulative-effect adjustment upon adoption of ASU 2016-13 (USD per share) | $ / shares $ 0.26
Unfunded Loan Commitments
Related Party Transaction [Line Items]
Write-off charged $ 0
Unfunded Loan Commitments | Accounting Standards Update 2016-13
Related Party Transaction [Line Items]
Cumulative-effect adjustment upon adoption of ASU 2016-13 $ 1,100
Cumulative-effect adjustment upon adoption of ASU 2016-13 (USD per share) | $ / shares $ 0.02
Senior loan
Related Party Transaction [Line Items]
Number of mezzanine loans written off (in loans) | loan1
Mezzanine loan
Related Party Transaction [Line Items]
Number of mezzanine loans written off (in loans) | loan1
Write-off charged $ 4,700
Amount determined uncollectible $ 5,500 $ 5,500

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Impact of Adoption of ASU 2016-13 (Details) - USD ($) $ in ThousandsDec. 31, 2020Jan. 01, 2020Dec. 31, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Commercial real estate loans, held-for-investment $ 4,844,534 $ 4,931,042 $ 4,931,042
Less: Allowance for credit losses(59,801)0 0
Commercial real estate loans, held-for-investment, net4,784,733 4,931,042 4,931,042
Accounts payable, accrued expenses and other liabilities4,823 [1]3,363 3,363 [1]
Accumulated deficit $ (65,698)(8,594) $ (8,594)
Cumulative-effect adjustment upon adoption of ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Commercial real estate loans, held-for-investment0
Less: Allowance for credit losses(13,909)
Commercial real estate loans, held-for-investment, net(13,909)
Accounts payable, accrued expenses and other liabilities1,100
Accumulated deficit(15,009)
Cumulative-effect, adjusted balance for ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Commercial real estate loans, held-for-investment4,931,042
Less: Allowance for credit losses(13,909)
Commercial real estate loans, held-for-investment, net4,917,133
Accounts payable, accrued expenses and other liabilities4,463
Accumulated deficit $ (23,603)
[1]Includes $0.9 million and $0.0 million of expected loss reserve for unfunded loan commitments as of December 31, 2020 and 2019, respectively.

Commercial Real Estate Loans -

Commercial Real Estate Loans - Loans Held-for-investment and Loans Held-for-sale (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loanJan. 01, 2020USD ($)
Investment Holdings [Line Items]
Amortized Cost $ 4,844,534 $ 4,931,042 $ 4,931,042
Carrying Value4,784,733 4,931,042 $ 4,931,042
Loans held-for-investment
Investment Holdings [Line Items]
Outstanding Principal4,869,696 4,960,698
Amortized Cost4,844,534 4,931,042
Carrying Value $ 4,784,733 $ 4,931,042
Loan Count (in loans) | loan42 39
Floating Rate Loan %99.90%99.90%
Coupon4.90%5.10%
Life (Years)3 years 3 months 18 days4 years 1 month 6 days
Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Outstanding Principal $ 4,779,367 $ 4,919,298
Amortized Cost4,759,624 4,890,408
Carrying Value $ 4,701,268 $ 4,890,408
Loan Count (in loans) | loan38 37
Floating Rate Loan %100.00%100.00%
Coupon4.70%5.00%
Life (Years)3 years 3 months 18 days4 years 1 month 6 days
Loans held-for-investment | Mezzanine and other loans
Investment Holdings [Line Items]
Outstanding Principal $ 90,329 $ 41,400
Amortized Cost84,910 40,634
Carrying Value $ 83,465 $ 40,634
Loan Count (in loans) | loan4 2
Floating Rate Loan %93.90%86.70%
Coupon12.60%9.60%
Life (Years)4 years 7 months 6 days4 years 7 months 6 days
Loans held-for-investment | Mezzanine and other loans | Multifamily
Investment Holdings [Line Items]
Outstanding Principal $ 50,000
Loan Count (in loans) | loan1
Amortized Cost $ 48,000
Vertical loan participation
Investment Holdings [Line Items]
Carrying Value $ 65,000
Vertical loan participation | Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Outstanding Principal66,200 65,000
Amortized Cost66,200 65,000
Collateralized Loan Obligations | Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Outstanding Principal $ 1,000,000 $ 1,000,000
LIBOR
Investment Holdings [Line Items]
Interest rate0.14%1.76%

Commercial Real Estate Loans _2

Commercial Real Estate Loans - Activities Related to Carrying Value of Mortgage Loans (Details) - USD ($) $ in ThousandsJan. 01, 2020Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance $ 4,931,042 $ 4,931,042
Beginning balance0 0
Beginning balance4,931,042 4,931,042
PIK interest(4,232) $ 0 $ 0
Provision for credit losses, net(50,344)0 0
Ending balance4,931,042 4,844,534 4,931,042
Ending balance0 (59,801)0
Ending balance4,931,042 4,784,733 4,931,042
Senior Participation Loan
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Proceeds from sales and principal payments(27,900)(142,800)
Ending balance(59,800)
Collections of principal27,900 142,800
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 payments(65,000)
Collections of principal65,000
Cumulative-effect adjustment upon adoption of ASU 2016-13
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Ending balance0
Ending balance(13,909)
Ending balance(13,909)
CRE Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Beginning balance4,931,042 4,931,042 4,001,820
Beginning balance0 0 0
Beginning balance4,931,042 4,931,042 4,001,820
Purchases and originations, net966,182 2,865,608
Proceeds from sales and principal payments(1,069,494)(1,956,611)
Accretion of loan discount and other amortization, net17,222 20,225
PIK interest4,232
Provision for credit losses, net(50,542)
Loan write-off4,650
Ending balance4,844,534 4,931,042 4,001,820
Ending balance(59,801)0 0
Ending balance4,784,733 4,931,042 $ 4,001,820
Collections of principal $ 1,069,494 $ 1,956,611
CRE Loans | Cumulative-effect adjustment upon adoption of ASU 2016-13
SEC Schedule, 12-29, Real Estate Companies, Investment in Movement in Mortgage Loans on Real Estate [Roll Forward]
Provision for credit losses, net $ (13,909)

Commercial Real Estate Loans _3

Commercial Real Estate Loans - Narrative (Details)12 Months Ended
Dec. 31, 2020USD ($)loanloanModificationDec. 31, 2019USD ($)loanDec. 31, 2018USD ($)Jan. 01, 2020USD ($)
Investment Holdings [Line Items]
Unamortized origination discounts and deferred nonrefundable fees $ 29,700,000
Prepayment penalties $ 0 900,000
Net accelerated fees1,800,000 4,700,000
Payment-in-kind interest(4,232,000)0 $ 0
Commercial real estate loans, held-for-investment4,844,534,000 4,931,042,000 $ 4,931,042,000
Allowance for credit loss $ 59,801,000 $ 0 0
Weighted average loan risk rating3.1 2.9
Senior loans
Investment Holdings [Line Items]
Remaining unfunded commitment $ 0
Cumulative-effect adjustment upon adoption of ASU 2016-13
Investment Holdings [Line Items]
Commercial real estate loans, held-for-investment0
Allowance for credit loss13,909,000
Loan with PIK term
Investment Holdings [Line Items]
Number of loan modifications (in loan modifications) | loanModification3
Outstanding principal amount, loan modifications $ 317,700,000
Net book value, loan modifications312,200,000
Total
Investment Holdings [Line Items]
Allowance for credit loss60,703,000 $ 0
Increase (decrease) in allowance for credit losses $ 50,344,000
Total | Cumulative-effect adjustment upon adoption of ASU 2016-13
Investment Holdings [Line Items]
Allowance for credit loss $ 15,009,000 $ 15,000,000
Loans held-for-investment
Investment Holdings [Line Items]
Number of Loans (in loans) | loan42 39
Outstanding Principal $ 4,869,696,000 $ 4,960,698,000
Commercial real estate loans, held-for-investment $ 4,844,534,000 $ 4,931,042,000
Loans held-for-investment | Senior loans
Investment Holdings [Line Items]
Number of Loans (in loans) | loan38 37
Outstanding Principal $ 4,779,367,000 $ 4,919,298,000
Commercial real estate loans, held-for-investment $ 4,759,624,000 4,890,408,000
Loans held-for-investment | Senior loans | Retail
Investment Holdings [Line Items]
Number of Loans (in loans) | loan1
Loans held-for-investment | Impaired/Loss Likely | Senior loans
Investment Holdings [Line Items]
Outstanding Principal $ 109,600,000
Commercial real estate loans, held-for-investment109,600,000
Unfunded Loan Commitments
Investment Holdings [Line Items]
Allowance for credit loss902,000 0
Increase (decrease) in allowance for credit losses(198,000)
Unfunded Loan Commitments | Cumulative-effect adjustment upon adoption of ASU 2016-13
Investment Holdings [Line Items]
Allowance for credit loss1,100,000
Loans held-for-investment
Investment Holdings [Line Items]
Unamortized origination discounts and deferred nonrefundable fees $ 20,500,000 $ 29,700,000

Commercial Real Estate Loans _4

Commercial Real Estate Loans - Loan Risk Ratings (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loanJan. 01, 2020USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value $ 4,784,733 $ 4,931,042 $ 4,931,042
Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan42 39
Carrying Value $ 4,784,733 $ 4,931,042
Total Loan Exposure $ 4,962,120 $ 5,039,298
Total Loan Exposure %100.00%100.00%
Vertical loan participation
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total loan exposure, excluding vertical loan participation $ 66,200 $ 65,000
Non-consolidated senior interest
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total Loan Exposure $ 158,700 $ 143,600
Very Low Risk | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan0 1
Carrying Value $ 0 $ 85,730
Total Loan Exposure $ 0 $ 86,000
Total Loan Exposure %0.00%1.70%
Low Risk | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan2 5
Carrying Value $ 321,686 $ 450,827
Total Loan Exposure $ 323,026 $ 451,858
Total Loan Exposure %6.50%9.00%
Average Risk | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan32 33
Carrying Value $ 3,715,132 $ 4,394,485
Total Loan Exposure $ 3,836,983 $ 4,501,440
Total Loan Exposure %77.30%89.30%
High Risk/Potential for Loss | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan6 0
Carrying Value $ 675,727 $ 0
Total Loan Exposure $ 687,040 $ 0
Total Loan Exposure %13.90%0.00%
Impaired/Loss Likely | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan2 0
Carrying Value $ 72,188 $ 0
Total Loan Exposure $ 115,071 $ 0
Total Loan Exposure %2.30%0.00%

Commercial Real Estate Loans _5

Commercial Real Estate Loans - Amortized Cost of Loan Portfolio (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loanJan. 01, 2020USD ($)
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Total $ 4,844,534 $ 4,931,042 $ 4,931,042
Carrying Amount $ 4,784,733 $ 4,931,042 $ 4,931,042
Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan42 39
Outstanding Principal $ 4,869,696
2020562,992
20192,311,156
20181,500,563
2017359,384
20160
2015110,439
Total4,844,534
Carrying Amount $ 4,784,733 $ 4,931,042
Very Low Risk | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan0 1
Outstanding Principal $ 0
20200
20190
20180
20170
20160
20150
Total0
Carrying Amount $ 0 $ 85,730
Low Risk | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan2 5
Outstanding Principal $ 323,026
20200
2019128,514
20180
2017193,633
20160
20150
Total322,147
Carrying Amount $ 321,686 $ 450,827
Average Risk | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan32 33
Outstanding Principal $ 3,744,559
2020461,406
20192,105,972
20181,159,818
20170
20160
20150
Total3,727,196
Carrying Amount $ 3,715,132 $ 4,394,485
High Risk/Potential for Loss | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan6 0
Outstanding Principal $ 687,040
2020101,586
201976,670
2018340,745
2017165,751
20160
20150
Total684,752
Carrying Amount $ 675,727 $ 0
Impaired/Loss Likely | Commercial Mortgage Loans
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Number of Loans (in loans) | loan2 0
Outstanding Principal $ 115,071
20200
20190
20180
20170
20160
2015110,439
Total110,439
Carrying Amount $ 72,188 $ 0

Commercial Real Estate Loans _6

Commercial Real Estate Loans - Allowance for Credit Losses (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance $ 0
Ending balance59,801
Commercial Mortgage Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance0
Provision for credit losses, net50,542
Write-off charged(4,650)
Ending balance59,801
Unfunded Loan Commitments
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance0
Provision for credit losses, net(198)
Write-off charged0
Ending balance902
Total
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance0
Provision for credit losses, net50,344
Write-off charged(4,650)
Ending balance60,703
Cumulative-effect adjustment upon adoption of ASU 2016-13 | Commercial Mortgage Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance13,909
Cumulative-effect adjustment upon adoption of ASU 2016-13 | Unfunded Loan Commitments
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance1,100
Cumulative-effect adjustment upon adoption of ASU 2016-13 | Total
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance $ 15,009

Commercial Real Estate Loans _7

Commercial Real Estate Loans - Concentration of Credit Risk (Details) $ in Thousands12 Months Ended
Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loan
Loans held-for-investment
Concentration Risk [Line Items]
Loan Count (in loans) | loan42 39
Outstanding Principal | $ $ 4,869,696 $ 4,960,698
Loans held-for-investment | Mezzanine loans
Concentration Risk [Line Items]
Loan Count (in loans) | loan4 2
Outstanding Principal | $ $ 90,329 $ 41,400
Multifamily | Loans held-for-investment | Mezzanine loans
Concentration Risk [Line Items]
Loan Count (in loans) | loan1
Outstanding Principal | $ $ 50,000
Loans held-for-investment | Geographic concentration risk
Concentration Risk [Line Items]
Concentration of credit risk100.00%100.00%
Loans held-for-investment | Geographic concentration risk | New York
Concentration Risk [Line Items]
Concentration of credit risk14.50%22.50%
Loans held-for-investment | Geographic concentration risk | Illinois
Concentration Risk [Line Items]
Concentration of credit risk11.80%9.70%
Loans held-for-investment | Geographic concentration risk | Virginia
Concentration Risk [Line Items]
Concentration of credit risk10.10%8.20%
Loans held-for-investment | Geographic concentration risk | Pennsylvania
Concentration Risk [Line Items]
Concentration of credit risk9.70%9.20%
Loans held-for-investment | Geographic concentration risk | Massachusetts
Concentration Risk [Line Items]
Concentration of credit risk8.40%7.70%
Loans held-for-investment | Geographic concentration risk | California
Concentration Risk [Line Items]
Concentration of credit risk7.70%6.90%
Loans held-for-investment | Geographic concentration risk | Washington
Concentration Risk [Line Items]
Concentration of credit risk7.20%6.90%
Loans held-for-investment | Geographic concentration risk | Texas
Concentration Risk [Line Items]
Concentration of credit risk6.60%2.50%
Loans held-for-investment | Geographic concentration risk | Florida
Concentration Risk [Line Items]
Concentration of credit risk5.70%6.90%
Loans held-for-investment | Geographic concentration risk | Colorado
Concentration Risk [Line Items]
Concentration of credit risk4.70%2.80%
Loans held-for-investment | Geographic concentration risk | Minnesota
Concentration Risk [Line Items]
Concentration of credit risk4.00%3.70%
Loans held-for-investment | Geographic concentration risk | Washington D.C.
Concentration Risk [Line Items]
Concentration of credit risk2.90%0.90%
Loans held-for-investment | Geographic concentration risk | Oregon
Concentration Risk [Line Items]
Concentration of credit risk2.30%2.50%
Loans held-for-investment | Geographic concentration risk | Georgia
Concentration Risk [Line Items]
Concentration of credit risk1.80%4.30%
Loans held-for-investment | Geographic concentration risk | Alabama
Concentration Risk [Line Items]
Concentration of credit risk1.40%1.20%
Loans held-for-investment | Geographic concentration risk | New Jersey
Concentration Risk [Line Items]
Concentration of credit risk0.00%3.10%
Loans held-for-investment | Geographic concentration risk | Other U.S.
Concentration Risk [Line Items]
Concentration of credit risk1.20%1.00%
Loans held-for-investment | Product concentration risk
Concentration Risk [Line Items]
Concentration of credit risk100.00%100.00%
Loans held-for-investment | Product concentration risk | Multifamily
Concentration Risk [Line Items]
Concentration of credit risk51.00%58.30%
Loans held-for-investment | Product concentration risk | Office
Concentration Risk [Line Items]
Concentration of credit risk30.20%25.50%
Loans held-for-investment | Product concentration risk | Condo (Residential)
Concentration Risk [Line Items]
Concentration of credit risk6.10%3.00%
Loans held-for-investment | Product concentration risk | Retail
Concentration Risk [Line Items]
Concentration of credit risk5.00%4.70%
Loans held-for-investment | Product concentration risk | Hospitality
Concentration Risk [Line Items]
Concentration of credit risk4.50%4.40%
Loans held-for-investment | Product concentration risk | Industrial
Concentration Risk [Line Items]
Concentration of credit risk1.80%2.80%
Loans held-for-investment | Product concentration risk | Student Housing
Concentration Risk [Line Items]
Concentration of credit risk1.40%1.30%
Loans held-for-investment, excluded | Product concentration risk | Multifamily
Concentration Risk [Line Items]
Concentration of credit risk1.00%

Debt Obligations - Summary of D

Debt Obligations - Summary of Debt (Details)1 Months Ended12 Months Ended
Nov. 30, 2020extensionJun. 30, 2019USD ($)extensionDec. 31, 2020USD ($)extensionDec. 31, 2019USD ($)Oct. 30, 2021Mar. 31, 2020USD ($)May 31, 2019USD ($)Dec. 31, 2018USD ($)Aug. 31, 2018USD ($)
Debt Instrument [Line Items]
Outstanding Principal $ 2,581,324,000
Unamortized debt issuance costs $ 5,600,000 $ 9,500,000
Average haircut weighted by outstanding face amount of collateral36.70%27.40%
Average haircut weighted by outstanding face amount of collateral if maximum amount is borrowed34.80%25.70%
Morgan Stanley | Facility
Debt Instrument [Line Items]
Maximum Facility Size $ 750,000,000
Number of extensions (in extensions) | extension2
Extension term1 year
BMO
Debt Instrument [Line Items]
Collateral based margin1.70%
Secured Financing Agreements | Facility
Debt Instrument [Line Items]
Carrying Value $ 2,574,747,000 $ 2,884,887,000 $ 1,951,049,000
Secured Financing Agreements | Wells Fargo | Facility
Debt Instrument [Line Items]
Outstanding Principal446,208,000
Carrying Value443,745,000 464,933,000
Maximum Facility Size $ 1,000,000,000
Weighted Average Funding Cost1.80%
Weighted Average Life2 years
Outstanding Principal $ 683,726,000
Amortized Cost Basis680,839,000
Carrying Value $ 641,429,000
Weighted Average Life3 years 3 months 18 days
Number of extensions (in 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 Principal $ 150,150,000
Carrying Value148,772,000 392,279,000
Maximum Facility Size $ 600,000,000
Weighted Average Funding Cost2.20%
Weighted Average Life2 years
Outstanding Principal $ 221,310,000
Amortized Cost Basis219,429,000
Carrying Value $ 218,438,000
Weighted Average Life5 years
Secured Financing Agreements | Morgan Stanley | Facility | Minimum
Debt Instrument [Line Items]
Collateral based margin1.75%
Secured Financing Agreements | Morgan Stanley | Facility | Maximum
Debt Instrument [Line Items]
Collateral based margin2.15%
Secured Financing Agreements | Goldman Sachs | Facility
Debt Instrument [Line Items]
Outstanding Principal $ 76,762,000
Carrying Value76,163,000 223,867,000
Maximum Facility Size $ 240,000,000
Weighted Average Funding Cost3.20%
Weighted Average Life1 year 10 months 24 days
Outstanding Principal $ 157,572,000
Amortized Cost Basis157,379,000
Carrying Value $ 156,425,000
Weighted Average Life1 year 10 months 24 days
Secured Financing Agreements | Goldman Sachs | Facility | Forecast
Debt Instrument [Line Items]
Maximum advance rate65.00%
Secured Financing Agreements | Goldman Sachs | Facility | Minimum
Debt Instrument [Line Items]
Collateral based margin1.90%
Secured Financing Agreements | Goldman Sachs | Facility | Maximum
Debt Instrument [Line Items]
Collateral based margin2.00%
Secured Financing Agreements | HSBC | Facility
Debt Instrument [Line Items]
Weighted Average Funding Cost0.00%
Weighted Average Life2 years 2 months 12 days
Outstanding Principal $ 0
Amortized Cost Basis0
Carrying Value0
Secured Financing Agreements | BMO | Facility
Debt Instrument [Line Items]
Outstanding Principal60,000,000
Carrying Value59,795,000 141,120,000
Maximum Facility Size $ 300,000,000
Weighted Average Funding Cost1.90%
Weighted Average Life3 years 1 month 6 days
Outstanding Principal $ 76,000,000
Amortized Cost Basis75,750,000
Carrying Value $ 73,181,000
Weighted Average Life3 years 1 month 6 days
Loan Facility | HSBC | Facility
Debt Instrument [Line Items]
Maximum Facility Size $ 500,000,000
Loan Facility | BMO | Facility
Debt Instrument [Line Items]
Maximum Facility Size $ 300,000,000 $ 200,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Deferred financing/debt issuance costs $ 2,500,000 2,400,000
Revolving Credit Facility | Facility
Debt Instrument [Line Items]
Outstanding Principal0
Carrying Value0 0
Maximum Facility Size $ 335,000,000
Weighted Average Funding Cost0.00%
Weighted Average Life2 years 10 months 24 days
Revolving Credit Facility | Morgan Stanley | Facility
Debt Instrument [Line Items]
Outstanding Principal $ 335,000,000
Maximum Facility Size $ 100,000,000
Deferred financing/debt issuance costs2,500,000
Total Debt
Debt Instrument [Line Items]
Outstanding Principal1,633,120,000
Carrying Value1,627,485,000 2,091,015,000
Maximum Facility Size $ 3,875,000,000
Weighted Average Funding Cost2.10%
Weighted Average Life1 year 9 months 18 days
KREF Lending V LLC | Secured Financing Agreements | Facility
Debt Instrument [Line Items]
Outstanding Principal $ 900,000,000
Carrying Value899,363,000 868,816,000
Maximum Facility Size $ 900,000,000 $ 900,000,000
Weighted Average Funding Cost2.10%
Weighted Average Life1 year 6 months
Outstanding Principal $ 1,120,637,000
Amortized Cost Basis1,115,291,000
Carrying Value $ 1,110,845,000
Weighted Average Life3 years 4 months 24 days
Number of extensions (in extensions) | extension5
Extension term1 year
KREF Lending V LLC | Secured Financing Agreements | Initial Buyer | Facility
Debt Instrument [Line Items]
Percentage of total commitment22.20%
HSBC | Secured Financing Agreements | Facility
Debt Instrument [Line Items]
Outstanding Principal $ 0
Carrying Value(353,000) $ 0
Maximum Facility Size $ 500,000,000
LIBOR
Debt Instrument [Line Items]
Interest rate0.14%1.76%
Term Lending | 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, 2020Dec. 31, 2019
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal $ 2,581,324
Wells Fargo
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal446,208 $ 468,452
Net Counterparty Exposure $ 196,715 $ 178,827
Percent of Stockholders' Equity18.90%15.90%
Weighted Average Life (Years)2 years2 years 7 months 6 days
Term Lending Agreement
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal $ 870,051
Net Counterparty Exposure $ 203,800
Percent of Stockholders' Equity18.20%
Weighted Average Life (Years)2 years 1 month 6 days
Morgan Stanley
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal $ 394,499
Net Counterparty Exposure $ 136,764
Percent of Stockholders' Equity12.20%
Weighted Average Life (Years)2 years 6 months
Total
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal $ 1,346,208
Net Counterparty Exposure $ 410,850
Percent of Stockholders' Equity39.40%
Weighted Average Life (Years)1 year 8 months 12 days
Total
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal $ 1,733,002
Net Counterparty Exposure $ 519,391
Percent of Stockholders' Equity46.30%
Weighted Average Life (Years)2 years 4 months 24 days
KREF Lending V LLC | Term Lending Agreement
Repurchase Agreement Counterparty [Line Items]
Outstanding Principal $ 900,000
Net Counterparty Exposure $ 214,135
Percent of Stockholders' Equity20.50%
Weighted Average Life (Years)1 year 6 months
KREF Lending V LLC | Morgan Stanley
Repurchase Agreement Counterparty [Line Items]
Percent of Stockholders' Equity4.60%8.90%

Debt Obligations - Term Loan Fa

Debt Obligations - Term Loan Facility (Details)12 Months Ended
Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loanOct. 31, 2018USD ($)Apr. 30, 2018USD ($)
Debt Instrument [Line Items]
Carrying value $ 2,574,747,000 $ 2,884,887,000
Facility | Term Loan Facility
Debt Instrument [Line Items]
Borrowing capacity $ 1,000,000,000 $ 200,000,000
Term (in years)5 years
Collateral based margin1.60%1.50%
Debt instrument, interest rate, stated percentage1.70%3.20%
Number of collateralized loans (in loans) | loan13 12
Outstanding face amount $ 1,155,378,000 $ 1,003,995,000
Amortized Cost1,151,144,000 997,081,000
Carrying Value1,147,517,000 997,081,000
Principal948,204,000 798,180,000
Carrying value $ 947,262,000 $ 793,872,000
Interest rate1.90%1.90%
Collateralized Assets | Facility | Term Loan Facility
Debt Instrument [Line Items]
Basis spread on variable rate3.00%3.00%

Debt Obligations - Debt Activit

Debt Obligations - Debt Activity (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Debt Instrument, Increase (Decrease), Net [Roll Forward]
Deferred debt issuance costs $ (12,066) $ (12,060) $ (26,418)
Facility | Secured Financing Agreements
Debt Instrument, Increase (Decrease), Net [Roll Forward]
Beginning balance2,884,887 1,951,049
Principal borrowings1,015,430 3,217,859
Principal repayments/sales/deconsolidation(1,332,822)(2,284,819)
Deferred debt issuance costs(5,505)(10,238)
Amortization of deferred debt issuance costs12,757 11,036
Ending balance $ 2,574,747 $ 2,884,887 $ 1,951,049

Debt Obligations - Maturities (

Debt Obligations - Maturities (Details) $ in ThousandsDec. 31, 2020USD ($)
Debt Instrument [Line Items]
2021 $ 895,728
20221,076,188
2023387,083
2024222,325
Thereafter0
Total2,581,324
Nonrecourse
Debt Instrument [Line Items]
2021807,080
2022837,116
2023346,953
2024181,896
Thereafter0
Total2,173,045
Recourse
Debt Instrument [Line Items]
202188,648
2022239,072
202340,130
202440,429
Thereafter0
Total $ 408,279
Maximum
Debt Instrument [Line Items]
Recourse limit25.00%

Debt Obligations - Covenants (D

Debt Obligations - Covenants (Details)12 Months Ended
Dec. 31, 2020USD ($)Jul. 31, 2020
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%
Total indebtedness, percent of total assets, net of non-recourse indebtedness80.00%
Total indebtedness, percent of total assets82.00%

Collateralized Loan Obligatio_2

Collateralized Loan Obligation - Schedule of Collateral Assets and Respective Borrowings (Details)1 Months Ended
Nov. 30, 2018Dec. 31, 2020USD ($)borrowingcollateralAssetDec. 31, 2019USD ($)borrowingcollateralAsset
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Term of reinvestment feature2 years
Percentage of commercial mortgage loans20.50%20.20%
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 (in borrowings) | borrowing1 1
Principal amount $ 810,000,000 $ 810,000,000
Carrying value, financing provided $ 810,000,000 $ 803,376,000
Weighted average yield, financing provided1.40%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 (in collateral assets) | collateralAsset21 22
Face amount, Collateral assets $ 1,000,000,000 $ 1,000,000,000
Weighted average yield, collateral assets2.90%2.80%
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]
Amortized cost, collateral assets $ 1,000,000,000 $ 1,000,000,000
Carrying value, collateral assets $ 997,336,000 $ 1,000,000,000

Collateralized Loan Obligatio_3

Collateralized Loan Obligation - Schedule of Assets and Liabilities Included in Consolidated Balance Sheet (Details) - USD ($) $ in ThousandsDec. 31, 2020Jan. 01, 2020Dec. 31, 2019
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Commercial real estate loans, held-for-investment $ 4,844,534 $ 4,931,042 $ 4,931,042
Less: Allowance for credit losses(59,801)0 0
Commercial real estate loans, held-for-investment, net4,784,733 4,931,042 4,931,042
Accrued interest receivable15,412 16,305
Other assets[1]20,984 4,583
Total Assets4,965,612 5,057,018
Collateralized loan obligation, net810,000 803,376
Accrued interest payable5,381 6,686
Accounts payable, accrued expenses and other liabilities4,823 [2] $ 3,363 3,363 [2]
Total Liabilities3,920,206 3,933,306
Collateralized Loan Obligations
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Commercial real estate loans, held-for-investment, net1,000,000 1,000,000
Collateralized Loan Obligations | Variable Interest Entity, Primary Beneficiary
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Commercial real estate loans, held-for-investment1,000,483 1,000,000
Less: Allowance for credit losses(2,669)0
Commercial real estate loans, held-for-investment, net997,814 1,000,000
Accrued interest receivable3,075 3,280
Other assets5 5
Total Assets1,000,894 1,003,285
Collateralized loan obligation, net810,000 803,376
Accrued interest payable668 1,254
Accounts payable, accrued expenses and other liabilities72 72
Total Liabilities $ 810,740 $ 804,702
[1]Includes $15.9 million and $0.0 million of loan repayment proceeds held by the servicer and receivable by KREF as of December 31, 2020 and 2019, respectively.
[2]Includes $0.9 million and $0.0 million of expected loss reserve for unfunded loan commitments as of December 31, 2020 and 2019, respectively.

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, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Variable Interest Entity [Line Items]
Interest income $ 63,201 $ 67,689 $ 67,219 $ 71,079 $ 72,417 $ 74,223 $ 62,944 $ 64,751 $ 269,188 $ 274,335 $ 183,575
Interest expense28,835 28,832 30,563 39,082 41,333 45,596 37,089 34,842 127,312 158,860 85,017
Total net interest income34,366 $ 38,857 $ 36,656 $ 31,997 31,084 $ 28,627 $ 25,855 $ 29,909 141,876 115,475 $ 98,558
Unamortized debt issuance costs5,600 9,500 5,600 9,500
Collateralized Loan Obligations
Variable Interest Entity [Line Items]
Unamortized debt issuance costs6,600 6,600
Collateralized Loan Obligations | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Interest income45,617 53,896
Interest expense26,853 38,427
Total net interest income18,764 15,469
Deferred financing costs amortization6,800 3,300
Unamortized debt issuance costs $ 0 $ 6,600 $ 0 $ 6,600

Secured Term Loan, Net - Narrat

Secured Term Loan, Net - Narrative (Details) - USD ($)1 Months Ended12 Months Ended
Sep. 30, 2020Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018Sep. 01, 2020
Debt Instrument [Line Items]
Affiliate expenses $ 25,434,000 $ 21,876,000 $ 22,286,000
Total indebtedness covenant, percent of total assets75.00%
LIBOR
Debt Instrument [Line Items]
Interest rate0.14%1.76%
Secured term loan | Structuring fees | Affiliated Entity | KKR Credit & Markets
Debt Instrument [Line Items]
Affiliate expenses $ 1,100,000
Secured term loan | Secured debt
Debt Instrument [Line Items]
Principal amount $ 300,000,000
Issuance price97.50%
Variable rate floor1.00%
Amortization rate1.00%
Unamortized discount $ 7,145,000 $ 7,500,000
Deferred financing costs $ 5,100,000
Minimum net worth required for compliance $ 650,000,000
Total indebtedness covenant, percent of total assets83.30%
Secured term loan | Secured debt | LIBOR
Debt Instrument [Line Items]
Interest rate4.75%
Effective basis spread on variable rate5.30%

Secured Term Loan, Net - Summar

Secured Term Loan, Net - Summary of Secured Term Loan (Details) - USD ($) $ in ThousandsDec. 31, 2020Sep. 01, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Principal amount $ 2,581,324
Deferred financing costs(5,600) $ (9,500)
Secured term loan | Secured debt
Debt Instrument [Line Items]
Principal amount300,000
Unamortized discount(7,145) $ (7,500)
Deferred financing costs(4,827)
Carrying Value $ 288,028

Convertible Notes, Net - Narrat

Convertible Notes, Net - Narrative (Details)1 Months Ended12 Months Ended
May 31, 2018USD ($)$ / sharesDec. 31, 2020USD ($)Dec. 31, 2019USD ($)Dec. 31, 2018USD ($)May 15, 2018$ / shares
Debt Instrument [Line Items]
Affiliate expenses $ 25,434,000 $ 21,876,000 $ 22,286,000
Accrued interest payable $ 5,381,000 6,686,000
Notes Due in 2023
Debt Instrument [Line Items]
Debt instrument, interest rate, effective percentage6.92%
Convertible Notes Payable
Debt Instrument [Line Items]
Principal $ 143,750,000 143,750,000
Deferred financing costs $ 2,431,000 3,460,000
Convertible Notes Payable | Notes Due in 2023
Debt Instrument [Line Items]
Principal $ 143,750,000
Debt instrument, interest rate, stated percentage6.125%6.125%
Deferred financing costs $ 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%
Accrued interest payable $ 1,100,000 $ 1,100,000
KKR Credit & Markets | Convertible debt
Debt Instrument [Line Items]
Affiliate expenses $ 800,000

Convertible Notes, Net - Intere

Convertible Notes, Net - Interest Expense, Debt (Details) - Convertible Notes Payable - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Cash coupon $ 8,805 $ 8,804
Discount and issuance cost amortization1,390 1,386
Total interest expense $ 10,195 $ 10,190

Convertible Notes, Net - Net Bo

Convertible Notes, Net - Net Book Value (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Net book value $ 140,465 $ 139,075
Convertible Notes Payable
Debt Instrument [Line Items]
Principal143,750 143,750
Deferred financing costs(2,431)(3,460)
Unamortized discount(854)(1,215)
Net book value $ 140,465 $ 139,075

Loan Participations Sold - Narr

Loan Participations Sold - Narrative (Details) - USD ($) $ in ThousandsDec. 31, 2020Dec. 31, 2019Oct. 31, 2019
Participating Mortgage Loans [Line Items]
Carrying Value $ 66,232 $ 64,966
Vertical loan participation
Participating Mortgage Loans [Line Items]
Carrying Value66,232 64,966 $ 65,000
Principal balance66,248 65,000
Total loan
Participating Mortgage Loans [Line Items]
Carrying Value335,507 326,881
Principal balance $ 337,327 $ 328,500 $ 328,500

Loan Participations Sold (Detai

Loan Participations Sold (Details) $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020USD ($)loanSep. 30, 2020USD ($)Jun. 30, 2020USD ($)Mar. 31, 2020USD ($)Dec. 31, 2019USD ($)loanSep. 30, 2019USD ($)Jun. 30, 2019USD ($)Mar. 31, 2019USD ($)Dec. 31, 2020USD ($)loanDec. 31, 2019USD ($)loanDec. 31, 2018USD ($)Oct. 31, 2019USD ($)
Participating Mortgage Loans [Line Items]
Carrying Value $ 66,232 $ 64,966 $ 66,232 $ 64,966
Interest income $ 34,366 $ 38,857 $ 36,656 $ 31,997 $ 31,084 $ 28,627 $ 25,855 $ 29,909 $ 141,876 $ 115,475 $ 98,558
Total loan
Participating Mortgage Loans [Line Items]
Number of loans sold (in loans) | loan1 1 1 1
Principal Balance $ 337,327 $ 328,500 $ 337,327 $ 328,500 $ 328,500
Amortized Cost336,329 326,881 336,329 326,881
Carrying Value $ 335,507 $ 326,881 $ 335,507 $ 326,881
Basis spread on variable rate260.00%250.00%260.00%250.00%
Vertical loan participation
Participating Mortgage Loans [Line Items]
Number of loans sold (in loans) | loan1 1 1 1
Principal Balance $ 66,248 $ 65,000 $ 66,248 $ 65,000
Amortized Cost66,232 64,966 66,232 64,966
Carrying Value $ 66,232 $ 64,966 $ 66,232 $ 64,966 $ 65,000
Yield/cost260.00%250.00%260.00%250.00%
Interest income $ 2,900 $ 600
Interest expense $ 2,900 $ 600

Variable Interest Entities - Na

Variable Interest Entities - Narrative (Details) $ in Thousands3 Months Ended12 Months Ended
Sep. 30, 2019USD ($)Dec. 31, 2020USD ($)investmentDec. 31, 2019USD ($)Dec. 31, 2018USD ($)
Variable Interest Entity [Line Items]
Number of equity method investments (in investments) | investment2
Equity method investments $ 33,651 $ 37,469
CMBS
Variable Interest Entity [Line Items]
Unpaid principal balance $ 34,900
Fair value $ 12,500
Fair value of sold investment $ 9,800
Loss on sale of CMBS $ (2,700)
Variable Interest Entity, Not Primary Beneficiary | RECOP I | Level 3 | Discounted Cash Flow
Variable Interest Entity [Line Items]
Equity method investments $ 33,300
Variable Interest Entity, Not Primary Beneficiary | RECOP
Variable Interest Entity [Line Items]
Ownership percentage in VIE3.50%
Variable Interest Entity, Not Primary Beneficiary | KKR Manager
Variable Interest Entity [Line Items]
Ownership percentage in VIE4.70%

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($)1 Months Ended12 Months Ended
Nov. 30, 2018Aug. 31, 2018May 31, 2017Apr. 30, 2017Feb. 28, 2017Mar. 31, 2016Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018Jun. 15, 2020Feb. 22, 2019Oct. 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 outstanding (shares)55,619,428 57,486,583
Repurchase of common stock (shares)2,037,637 212,809
Treasury stock acquired, average cost per share (dollars per share) $ 12.27 $ 19.25
Repurchase of common stock $ 25,000,000 $ 4,100,000
Repurchased under pre-set trading plan
Subsidiary, Sale of Stock [Line Items]
Stock repurchase program, authorized amount (up to) $ 50,000,000
ATM
Subsidiary, Sale of Stock [Line Items]
Stock repurchase program, authorized amount (up to) $ 100,000,000
Common Stock
Subsidiary, Sale of Stock [Line Items]
Share price (usd per share) $ 19.90
Sale of stock, number of shares issued in transaction (shares)5,000,000
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%
Redeemable Preferred Stock
Subsidiary, Sale of Stock [Line Items]
Issuance of stock (shares)1
Preferred stock share price (usd per share) $ 0.01
Liquidation preference (usd per share) $ 0.01
Redemption price (usd per share) $ 0.01
Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock issued related to vesting RSUs (shares)307,916 137,434
Repurchase of common stock (shares)2,037,637 212,809 1,623,482
Repurchase of common stock $ 20,000 $ 2,000 $ 16,000
Issuance of stock (shares)5,500,000
Common Stock | Restricted Stock Units
Subsidiary, Sale of Stock [Line Items]
Restricted stock issued during the period (in shares)170,482 103,175
KKR Real Estate FInance Manager L.L.C
Subsidiary, Sale of Stock [Line Items]
Common stock, percent of limited liability company interest6.67%
KREF | Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock issued (shares)59,519,754 59,349,272
KREF | KKR
Subsidiary, Sale of Stock [Line Items]
Common stock (shares)21,234,528 22,008,616
Issued and outstanding common stock owned, percentage38.20%38.30%
KKR Real Estate FInance Trust Inc. on Behalf of Third Party | KKR
Subsidiary, Sale of Stock [Line Items]
Common stock (shares)1,234,528 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 $ 20
Sale of stock, number of shares issued in transaction (shares)10,379,738 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 transaction (shares)11,787,500
Underwritten offering | Common Stock
Subsidiary, Sale of Stock [Line Items]
Share price (usd per share) $ 20
Sale of stock, number of shares issued in transaction (shares)4,500,000 1,537,500
Sale of stock, consideration received on transaction $ 9,400,000 $ 98,300,000
ATM
Subsidiary, Sale of Stock [Line Items]
Stock repurchase program, authorized amount (up to) $ 100,000,000
Over-allotment option - third-party investors | Common Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (shares)4,000,000
Over-allotment option - company | Common Stock
Subsidiary, Sale of Stock [Line Items]
Sale of stock, number of shares issued in transaction (shares)500,000

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, 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 ThousandsDec. 15, 2020Sep. 15, 2020Jun. 15, 2020Mar. 16, 2020Dec. 16, 2019Sep. 13, 2019Jun. 14, 2019Mar. 18, 2019Dec. 31, 2020Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Equity [Abstract]
Dividends declared per share of common stock (usd per share) $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 1.72 $ 1.72 $ 1.69
Dividends paid $ 23,916 $ 23,861 $ 23,861 $ 24,010 $ 24,719 $ 24,692 $ 24,688 $ 24,761 $ 95,648 $ 98,860

Equity - Earnings Per Share (De

Equity - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020Sep. 30, 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Numerator
Net income (loss) attributable to common stockholders $ 28,776 $ 31,351 $ 28,590 $ (35,164) $ 24,789 $ 23,617 $ 17,381 $ 24,705 $ 53,553 $ 90,492 $ 87,293
Denominator
Basic weighted average common shares outstanding (shares)55,619,428 55,491,405 55,491,937 57,346,726 57,486,583 57,420,140 57,412,522 57,387,386 55,985,014 57,426,912 55,136,548
Dilutive restricted stock units (shares)72,223 105,578 34,513
Diluted weighted average common shares outstanding (shares)55,669,230 55,632,170 55,504,077 57,346,726 57,595,424 57,549,066 57,507,219 57,477,234 56,057,237 57,532,490 55,171,061
Net income (loss) attributable to common stockholders, per:
Basic common share (usd per share) $ 0.52 $ 0.56 $ 0.52 $ (0.61) $ 0.43 $ 0.41 $ 0.30 $ 0.43 $ 0.96 $ 1.58 $ 1.58
Diluted common share (usd per share) $ 0.52 $ 0.56 $ 0.52 $ (0.61) $ 0.43 $ 0.41 $ 0.30 $ 0.43 $ 0.96 $ 1.57 $ 1.58

Stock-based Compensation - Narr

Stock-based Compensation - Narrative (Details) $ in Millions12 Months Ended
Dec. 31, 2020USD ($)periodsharesDec. 31, 2019USD ($)Dec. 31, 2018USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance ratio1
Weighted average period1 year 1 month 6 days
Adjustment to additional paid in capital $ 2
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares issued related to the vesting of restricted stock units (shares) | shares170,482
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of consecutive vesting periods (in periods) | period3
Vesting period1 year
Units granted (in shares) | shares291,418
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock based compensation expense $ 13.4
General and Administrative Expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense $ 5.7 $ 4 $ 2
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) - $ / shares12 Months Ended
Dec. 31, 2020Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Units granted (in shares)443,052 362,832
Restricted Stock Units
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)641,214
Units granted (in shares)443,052
Units vested (in shares)(291,418)
Units Forfeited/ cancelled (in shares)(4,906)
Unvested, ending balance (in shares)787,942 641,214
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) $ 20.02
Units granted, weighted average grant date fair value (usd per share)17.77
Units vested, weighted average grant date fair value (usd per share)19.94
Units forfeited/ cancelled, weighted average grant date fair value (usd per share)20.30
Unvested. ending balance, weighted average grant date fair value (usd per share) $ 18.78 $ 20.02

Stock-based Compensation - RSU

Stock-based Compensation - RSU Vesting (Details) - Restricted Stock Units - sharesDec. 31, 2020Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
2021 (in shares)389,758
2022 (in shares)256,508
2023 (in shares)141,676
Total (in shares)787,942 641,214

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions1 Months Ended12 Months Ended
Jan. 31, 2017Dec. 31, 2020
Future funding commitment related to commercial mortgage loan investments
Long-term Purchase Commitment [Line Items]
Capital commitment $ 471.9
Nonconsolidated | RECOP I | Commitment to invest in aggregator vehicle
Long-term Purchase Commitment [Line Items]
Capital commitment $ 40 $ 4.3
Long-term purchase commitment period2 years

Related Party Transactions - Na

Related Party Transactions - Narrative (Details)1 Months Ended3 Months Ended12 Months Ended
Oct. 31, 2020USD ($)Sep. 30, 2020USD ($)May 31, 2018USD ($)Dec. 31, 2018USD ($)Dec. 31, 2020USD ($)calendarQuartersharesDec. 31, 2019USD ($)sharesDec. 31, 2018USD ($)
Related Party Transaction [Line Items]
Affiliate fee $ 25,434,000 $ 21,876,000 $ 22,286,000
Units granted (in shares) | shares443,052 362,832
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
Minimum voting percentage for renewal of agreement term66.67%
Termination fee3
Trailing average period applied to termination fee multiple under management agreement24 months
Quarterly Management Fee | KREF Manager
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 | KREF Manager
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 (calendar quarters) | calendarQuarter3
KKR Credit & Markets | Structuring fees
Related Party Transaction [Line Items]
Structuring fee, percent0.75%
KKR Credit & Markets | Structuring fees | Revolving Credit Facility
Related Party Transaction [Line Items]
Affiliate fee $ 600,000 $ 1,100,000
Term Loan Facility | Structuring fees
Related Party Transaction [Line Items]
Structuring fee $ 0 1,500,000
Term Loan Facility | KKR Credit & Markets
Related Party Transaction [Line Items]
Structuring fee, percent0.75%
Convertible Debt | KKR Credit & Markets
Related Party Transaction [Line Items]
Affiliate fee $ 800,000
Maximum commissions to be paid to sales agent as a percentage of gross sales price2.00%
HSBC Facility | KKR Credit & Markets
Related Party Transaction [Line Items]
Structuring fee, percent0.25%
HSBC Facility | KKR Credit & Markets | Structuring fees
Related Party Transaction [Line Items]
Affiliate fee $ 100,000
Secured term loan | Affiliated Entity | Structuring fees | KKR Credit & Markets
Related Party Transaction [Line Items]
Affiliate fee $ 1,100,000
Structuring fee, percent0.37%
Senior mortgage loan | Affiliated Entity | Placement agent loan | KKR Credit & Markets
Related Party Transaction [Line Items]
Affiliate fee $ 400,000
Related party transaction, rate0.30%
BMO
Related Party Transaction [Line Items]
Structuring fee, percent0.35%
BMO | Structuring fees
Related Party Transaction [Line Items]
Affiliate fee $ 0 $ 200,000
Collateralized Loan Obligations
Related Party Transaction [Line Items]
Placement agent fee $ 900,000
Placement agent fee, percent0.105%
Common Stock | Management Incentive Plan
Related Party Transaction [Line Items]
Number of shares available for awards (shares) | shares2,932,529

Related Party Transactions - Ex

Related Party Transactions - Expenses Incurred and Amounts Owed to Affiliates (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Related Party Transaction [Line Items]
Due to affiliate $ 6,243 $ 5,917
Affiliate expenses25,434 21,876 $ 22,286
Management fees
Related Party Transaction [Line Items]
Due to affiliate4,252 4,280
Affiliate expenses16,992 17,135 16,346
Incentive compensation
Related Party Transaction [Line Items]
Affiliate expenses6,774 3,272 4,756
Expense reimbursements and other
Related Party Transaction [Line Items]
Due to affiliate1,991 1,637
Affiliate expenses1,668 1,469 1,184
Out-of-pocket costs reimbursed
Related Party Transaction [Line Items]
Affiliate expenses $ 3,800 $ 1,800 $ 2,700

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Assets and Liabilities Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Jan. 01, 2020Dec. 31, 2019Oct. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents $ 110,832 $ 67,619
Commercial real estate loans, held-for-investment4,844,534 $ 4,931,042 4,931,042
Commercial real estate loans, held-for-investment, net4,784,733 4,931,042 4,931,042
Equity method investments, fair value33,651 37,469
Total Assets4,965,612 5,057,018
Outstanding Principal2,581,324
Loan participations sold, net, carrying value66,232 64,966
Total Liabilities3,920,206 3,933,306
Liabilities, fair value803,766
Mezzanine loan write-off20,500
Unamortized debt issuance costs5,600 9,500
Carrying amount59,801 $ 0 0
Unamortized origination discounts and deferred nonrefundable fees29,700
Mezzanine Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Write-off charged4,700
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents110,832 67,619
Cash and cash equivalents, fair value110,832 67,619
Outstanding Principal4,869,696 4,960,698
Commercial real estate loans, held-for-investment4,844,534 4,931,042
Commercial real estate loans, held-for-investment, net4,784,733 4,931,042
Commercial mortgage loans, held-for-investment, net, fair value4,757,203 4,937,808
Equity method investments33,651 37,469
Equity method investments, fair value33,651 37,469
Assets, principal balance5,014,179 5,065,786
Net Assets4,989,017 5,036,130
Total Assets4,929,216 5,036,130
Assets, fair value4,901,686 5,042,896
Loan participations sold, net, principal balance66,248 65,000
Loan participations sold, net, carrying value66,232 64,966
Loan participations sold, net, fair value66,232 64,966
Liabilities, principal balance3,901,322 3,917,466
Total Liabilities3,879,472 3,892,304
Liabilities, fair value3,900,139 3,925,268
Fair Value, Measurements, Recurring | Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Principal2,581,324 2,898,716
Carrying value, financing provided2,574,747 2,884,887
Secured financing agreements, net, fair value2,581,324 2,898,716
Fair Value, Measurements, Recurring | Collateralized loan obligation, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Principal810,000 810,000
Carrying value, financing provided810,000 803,376
Secured financing agreements, net, fair value803,766 810,867
Fair Value, Measurements, Recurring | Secured debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Principal300,000
Carrying value, financing provided288,028
Secured financing agreements, net, fair value303,000
Fair Value, Measurements, Recurring | Convertible debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Principal143,750 143,750
Carrying value, financing provided140,465 139,075
Secured financing agreements, net, fair value145,817 150,719
Fair Value, Measurements, Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value110,832 67,619
Commercial mortgage loans, held-for-investment, net, fair value0 0
Equity method investments, fair value0 0
Assets, fair value110,832 67,619
Loan participations sold, net, fair value0 0
Liabilities, fair value0 150,719
Fair Value, Measurements, Recurring | Level 1 | Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0 0
Fair Value, Measurements, Recurring | Level 1 | Collateralized loan obligation, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0 0
Fair Value, Measurements, Recurring | Level 1 | Secured debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0
Fair Value, Measurements, Recurring | Level 1 | Convertible debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0 150,719
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 investments, fair value0 0
Assets, fair value0 0
Loan participations sold, net, fair value0 0
Liabilities, fair value448,817 0
Fair Value, Measurements, Recurring | Level 2 | Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0 0
Fair Value, Measurements, Recurring | Level 2 | Collateralized loan obligation, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0 0
Fair Value, Measurements, Recurring | Level 2 | Secured debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value303,000
Fair Value, Measurements, Recurring | Level 2 | Convertible debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value145,817 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 value4,757,203 4,937,808
Equity method investments, fair value33,651 37,469
Assets, fair value4,790,854 4,975,277
Loan participations sold, net, fair value66,232 64,966
Liabilities, fair value3,451,322 3,774,549
Fair Value, Measurements, Recurring | Level 3 | Facility
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value2,581,324 2,898,716
Fair Value, Measurements, Recurring | Level 3 | Collateralized loan obligation, net
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value803,766 810,867
Fair Value, Measurements, Recurring | Level 3 | Secured debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0
Fair Value, Measurements, Recurring | Level 3 | Convertible debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured financing agreements, net, fair value0 0
Commercial Mortgage Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unamortized debt issuance costs6,600 13,800
Collateralized Loan Obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial real estate loans, held-for-investment, net1,000,000 1,000,000
Unamortized debt issuance costs6,600
Vertical loan participation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial real estate loans, held-for-investment, net66,200
Commercial mortgage loans, held-for-investment, net, fair value66,200
Senior Participation Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying amount59,800
Vertical loan participation
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commercial real estate loans, held-for-investment, net65,000
Commercial mortgage loans, held-for-investment, net, fair value65,000
Loan participations sold, net, carrying value $ 66,232 $ 64,966 $ 65,000

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands12 Months Ended
Dec. 31, 2020Dec. 31, 2019Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments $ 537 $ 4,568 $ 3,065
Payments to acquire equity method investments0 6,245 $ 15,611
RECOP I
Schedule of Equity Method Investments [Line Items]
Distribution from equity method investments3,400 3,200
Income (loss) from equity method investments $ (500)3,700
Payments to acquire equity method investments $ 6,300

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Unobservable Inputs (Details) $ in ThousandsDec. 31, 2020USD ($)Dec. 31, 2019USD ($)
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Liabilities, fair value $ 803,766
Equity method investments33,651 $ 37,469
Carrying Value66,232 $ 64,966
CMBS
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Assets, fair value4,757,203
CMBS | Loans held-for-investment
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Commercial mortgage loans, held-for-investment, net $ 4,757,203
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, measurement0.024
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, measurement0.191
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, measurement0.047
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 $ 803,766
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.