January 14, 2025

Thank you for your support of KKR Real Estate Select Trust Inc. (“KREST” or the “Fund”) and for entrusting us with your capital. In the Fund’s Q1 2025 tender offer, KREST shareholders received 100% of their requested repurchase amount.

We built KREST with the objective of providing differentiated access to the benefits of high-quality private real estate equity and credit, including consistent and tax-efficient dividend income, portfolio diversification relative to other asset classes and attractive long-term performance through market cycles. KREST’s structure as a 1940 Act REIT was also designed to prioritize our shareholder experience, complementing the advantages of our flexible strategy and diversified portfolio of income-oriented real estate equity and credit.

In our view, KREST’s advantages are particularly relevant today as we believe that we are in the early stages of a new market cycle following a material drawdown in property values over the last two-plus years, second only to the global financial crisis in terms of magnitude. Current property values are generally below replacement costs and fundamentals are attractive, and, in our view, will support property values and provide pricing power and the ability to grow rents, particularly over the medium- and long-term. We believe this combination represents a strong signal to lean into real estate markets. This rare dynamic is the result of re-set property values, higher labor and materials costs, a dramatic decline in new supply pipelines and favorable demand trends led by demographic shifts and onshoring/near-shoring. At the same time, real estate credit yields and overall risk/return remain attractive on both an absolute and relative basis, particularly as recent volatility in rates and Treasury yields may slow momentum in real estate equity markets over the short-term. Our recent deployment has focused on real estate credit as we have added exposures to eight different loans backed by high quality real estate and strong sponsorship over the last six months.

Given our conviction in the opportunities that we believe will continue to emerge while also recognizing that early cycle moments are often characterized by volatility and uncertainty, we announced the KREST Shareholder Priority Plan⁽¹⁾ in June 2024. The KREST Shareholder Priority Plan supports a net asset value (“NAV”) of up to $27 per share on June 1, 2027 – for both current and prospective shareholders – through the commitment by KKR Alternative Assets LLC (“KAA”), an affiliate of the Fund’s Adviser, to continue to hold approximately 7.7 million KAA-owned KREST shares and, to the extent necessary, contribute such shares to the Fund to support a NAV per share of up to $27 per share on June 1, 2027. For KREST shareholders, this preserves upside potential above $27 per share NAV on June 1, 2027 while seeking to help mitigate any near-term share price volatility. All KREST shareholders as of June 1, 2027 benefit from the KREST Shareholder Priority Plan, with no anticipated impact to KREST’s dividend income, currently at $1.56 per share or a 6.2% annualized net distribution rate (Class I) ⁽²⁾, and no changes to KREST’s terms or conditions, including subscription and redemption provisions.

Since announcing the KREST Shareholder Priority Plan, we have seen an increase in our new inflows and a notable downward trend in repurchase requests. For the Fund’s Q1 2025 tender offer period ending January 10, 2025, KREST repurchased 100% of tender requests received, equal to $52 million or 4.3% of NAV. Consistent with the Fund’s recent tender offers, the Fund’s Q1 2025 tender offer demand primarily consisted of carryover demand (re-submitted tender requests) from prior tender offer periods. Overall, KREST’s tender requests have declined by 60% compared to Q2 2024, the recent peak for liquidity demand from KREST shareholders. Q1 2025 repurchase requests were 40% lower than the Q4 2024 tender offer period. Our inflows were nearly three times greater in Q4 2024 than Q1 2024.

Our portfolio remains well-positioned and we have maintained a robust and multifaceted liquidity position.⁽³⁾ This should enable the Fund to continue providing a level of liquidity to investors of up to 5% of NAV through quarterly repurchases⁽⁴⁾, while also positioning the Fund to capitalize on the attractive investment opportunities that may arise in the upcoming months and quarters.

Should you have any questions, please reach out to your KKR Relationship Manager or contact us at PrivateWealthIR@kkr.com. Thank you again for your partnership with us on KREST, and please let us know if there is anything that would be helpful to you as you support your clients.

Sincerely,

Julia Butler, CEO of KKR Real Estate Select Trust Inc.

Notes:

All figures are approximate and as of December 31, 2024, unless otherwise indicated. The terms “we”, “us” and “our” refer to KREST with reference to portfolio and performance data. In all other instances, including with respect to current and forward-looking views and opinions of the market and KREST’s portfolio and performance positioning, as well as the experience of KREST’s management team, these terms refer to KREST’s adviser, KKR Registered Advisor LLC, which is part of the real estate group of Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”), a leading global investment firm.

Certain information contained in this material constitutes “forward-looking statements” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “identified,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction” or the negative versions of these words or other comparable words thereof. These may include KREST’s financial estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to acquisitions, statements regarding future performance, and statements regarding identified but not yet closed acquisitions. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. KREST believes these factors also include but are not limited to those described under the section entitled “Risk Factors” in its prospectus and most recent annual report, and any such updated factors included in its periodic filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the annual report (or KREST’s prospectus and other filings). Except as otherwise required by federal securities laws, KREST undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.