Group 1 - The article discusses the author's journey into investing, starting in high school in 2011, focusing on REITs, preferred stocks, and high-yield bonds, indicating a long-standing interest in markets and the economy [1] - The author has recently adopted a strategy that combines long stock positions with covered calls and cash secured puts, emphasizing a fundamental long-term investment approach [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional articles on ETFs and other stocks influenced by macro trade ideas [1] Group 2 - There is a disclosure stating that the author has no stock, option, or similar derivative position in any of the companies mentioned, nor plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not compensated for it, aside from contributions to Seeking Alpha [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect those of the platform as a whole [3]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of $0.56 per share and a distributable loss of $0.25 per share [11] - Distributable earnings prior to realized losses were $0.08 per share, with earnings from REO investments contributing a distributable loss of $0.03 per share [11] - The held for investment loan portfolio decreased to $5.9 billion at March 31 from $6.1 billion at December 31, primarily due to loan resolutions [12] Business Line Data and Key Metrics Changes - The company fully realized five loans, receiving $7 million in proceeds from repayments and resolutions, which improved liquidity and reduced leverage [8] - Hospitality exposure was reduced by $326 million, reflecting a strategic move in light of economic headwinds [9] - A $214 million facility was closed to finance non-performing loans through the REO stage, indicating progress in the multifamily REO strategy [9][15] Market Data and Key Metrics Changes - The company noted widening spreads in the real estate capital markets and a pause in transactions by institutional participants due to heightened uncertainty from U.S. tariff and foreign policy volatility [6][7] - The economic and political climate is impacting capital markets and investor sentiment, which may affect the company's operational strategies [10][16] Company Strategy and Development Direction - The company is focused on enhancing liquidity, reducing leverage, and optimizing outcomes on watch list loans, with strategies including loan sales and discounted payoffs [11][12] - Management is considering various paths for loan resolutions, including divesting, extending, recapitalizing, or taking assets over as REO, depending on market conditions [10] - The company aims to achieve $2 billion in realizations over the year, with $600 million already completed [60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing higher rate environment and its headwinds to broader real estate recovery, while expressing optimism about achieving strategic goals [7][10] - The company is navigating a period of uncertainty and volatility, with plans to remain pragmatic and proactive in its approach [16] - Management believes that fundamentals at the property level remain strong, despite the challenges in the broader market [59] Other Important Information - The company reported total liquidity of $136 million as of March 31, which includes cash and undrawn credit capacity [16] - The company has extended repo facilities with Wells Fargo and Goldman Sachs, indicating constructive relationships with repo counterparties [35] Q&A Session Summary Question: Update on two large multifamily loans - Management is still anticipating payoffs for the two loans maturing on July 31 and August 1, but may need to evaluate other options due to market volatility [18][19] Question: Current thoughts on term loan B - The term loan matures in August 2026, and management is evaluating options including amending and extending the loan or exploring private credit solutions [21] Question: Update on repo counterparties - The company has extended its repo facilities with Wells Fargo and Goldman Sachs, and is evaluating capacity size based on current financing needs [34][35] Question: Summary statistics for the overall portfolio - The portfolio is transitioning, with a significant reduction in construction assets and an increase in cash-flowing multifamily exposure [41][45] Question: Total REO expected this year and liquidity implications - The company is actively working on monetizing current REO assets and expects to take on additional multifamily assets, with no initial liquidity outflow anticipated from the new financing facility [50][51] Question: Consideration of splitting the company into separate entities - Management is considering various strategies for REO but currently has no plans to split the company into separate entities focused on development and mortgage REIT operations [55]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of $0.56 per share and a distributable loss of $0.25 per share [10] - Distributable earnings prior to realized losses were $0.08 per share, with earnings from REO investments contributing a distributable loss of $0.03 per share [10] - The held for investment loan portfolio decreased to $5.9 billion at March 31 from $6.1 billion at December 31, primarily due to loan resolutions [11] Business Line Data and Key Metrics Changes - The company fully realized five loans, receiving $67 million in proceeds from repayments and resolutions, which improved liquidity and reduced leverage [7] - Hospitality exposure was reduced by $326 million, reflecting a strategic move in light of economic headwinds [8] - A $214 million facility was closed to finance non-performing loans through the REO stage, indicating progress in the multifamily REO strategy [8][14] Market Data and Key Metrics Changes - The company noted widening spreads in the real estate capital markets and a pause in transactions by institutional participants due to heightened uncertainty [6] - The economic and political climate is impacting capital markets and investor sentiment, which may affect the company's operational momentum [9] Company Strategy and Development Direction - The company is focused on enhancing liquidity, reducing leverage, and optimizing outcomes on watch list loans through various strategies including loan sales and discounted payoffs [10] - The management is considering various paths for loan resolutions, including divesting, extending, recapitalizing, or taking assets over as REO depending on market conditions [9] - The company aims to manage liquidity effectively while preparing for future liability maturities and seeking to improve asset performance [58] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing volatility in U.S. tariffs and foreign policy, which has created uncertainty in the economy and commercial real estate [5] - Despite the challenges, management expressed optimism about achieving strategic goals and improving liquidity through realizations [6][58] - The company is preparing for potential economic headwinds and recessionary fears while remaining proactive in its strategies [9] Other Important Information - The company reported total liquidity of $136 million as of March 31, which includes cash and undrawn credit capacity [15] - The company has a target of $2 billion in realizations for the year, with $600 million achieved so far [58] Q&A Session Summary Question: Update on large multifamily loans - Management confirmed that two large multifamily loans are still in process, with maturities approaching [17][18] Question: Thoughts on term loan B - Management is evaluating options for the term loan B, including amending and extending the existing loan or exploring private credit solutions [19][20] Question: Repo counterparties update - Management extended the Wells Fargo facility for another year and the Goldman Sachs repo facility for two years, indicating constructive relationships with repo lenders [31][32] Question: Portfolio statistics and liquidity implications - Management discussed the transitional nature of the portfolio, with a focus on improving liquidity and managing funding commitments [40][41] Question: Total REO expected this year - Management indicated that the REO strategy is fluid, with potential monetization of assets in the near term and ongoing evaluations of additional REO acquisitions [48][49]

First Quarter 2025 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) May 7, 2025 The properties above are not representative of all transactions. The information provided herein is as of March 31, 2025 unless otherwise noted. 8% 7% 5% 8% 9% 9% 15% 14% 19% 19% 44% 43% 0% 20% 40% 60% 80% 100% Multi-family Hospitality Office Mixed-use Land Other a Collateral Diversification 3,7 3/31/25 12/31/24 First Quarter 2025 Highlights | |  | GAAP net loss of $78.6 million, or $0.56 per share; distributable loss of ...

Core Viewpoint - Claros Mortgage Trust, Inc. reported a quarterly loss of $0.25 per share, which was better than the Zacks Consensus Estimate of a loss of $0.32, indicating an earnings surprise of 21.88% [1]. Financial Performance - The company posted revenues of $43.38 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 25.94%, and a decline from $58.83 million in the same quarter last year [2]. - Over the last four quarters, the company has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2]. Stock Performance - Claros Mortgage Trust, Inc. shares have declined approximately 43.8% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3]. - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $61.93 million, and for the current fiscal year, it is -$0.23 on revenues of $244.84 million [7]. Industry Outlook - The REIT and Equity Trust industry, to which Claros Mortgage Trust belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges ahead [8]. - The performance of Claros Mortgage Trust may be influenced by the overall outlook of the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]. Future Expectations - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call and the revisions of earnings estimates in the near future [3][4]. - The estimate revisions trend for Claros Mortgage Trust is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6].

Financial Performance - Claros Mortgage Trust, Inc. reported a GAAP net loss of $78.6 million, or $0.56 per share, for Q1 2025[2] - Distributable Loss for the quarter was $35.7 million, or $0.25 per share, while Distributable Earnings prior to realized losses were $11.6 million, or $0.08 per share[2] Loan and Asset Management - The company resolved or received payment on loans totaling $607 million during and after Q1 2025[3] - The loan portfolio was valued at $5.9 billion with a weighted average all-in yield of 7.4%[8] - CECL reserves approximated $41.1 million, or $0.29 per share, representing 4.4% of UPB[8] - Unencumbered loan UPB was $468 million, with $223 million classified as held-for-sale[8] Liquidity and Financing - Total liquidity stood at $136 million, including $128 million in cash[8] - The company closed a new financing facility with a capacity of $214 million[8] Strategic Focus - The company is focused on enhancing liquidity and reducing leverage while navigating a complex macroeconomic environment[3]

Financial Performance - For the three months ended March 31, 2025, the company reported a net loss per share of $0.56, compared to a net loss per share of $0.72 for the three months ended December 31, 2024[179]. - For the three months ended March 31, 2025, the net loss was $78,623 thousand, an improvement from a net loss of $100,698 thousand for the three months ended December 31, 2024[187]. - The company reported a Distributable Loss of $35,693 thousand for Q1 2025, compared to a Distributable Loss of $83,164 thousand in Q4 2024[187]. - The diluted Distributable Earnings per share prior to realized gains and losses was $0.08 for Q1 2025, down from $0.18 in Q4 2024[187]. - Total net revenue decreased by $16.9 million to $43.375 million for the three months ended March 31, 2025, primarily due to a $13.2 million decrease in revenue from real estate owned[240][241]. - Interest and related income decreased by $14.525 million to $118.038 million for the three months ended March 31, 2025, while interest and related expense decreased by $10.865 million to $89.227 million[240]. - The company recognized an additional loss of $49.0 thousand on real estate owned held-for-sale during the three months ended March 31, 2025, following an $80.5 million loss recognized in the previous quarter[240][248]. - For the three months ended March 31, 2025, the company recorded a net loss of $78.6 million, compared to a net loss of $52.8 million for the same period in 2024, representing an increase in loss of $25.8 million[253]. Distributable Earnings and Losses - Distributable Loss per share for the same period was $0.25, while Distributable Earnings per share prior to realized gains and losses was $0.08[178]. - Distributable Earnings prior to realized gains and losses for Q1 2025 were $11,556 thousand, down from $25,393 thousand in Q4 2024[187]. - The company recognized a provision for current expected credit loss reserve of $41.123 million for the three months ended March 31, 2025, compared to $29.976 million for the three months ended December 31, 2024[240]. Book Value and Equity - As of March 31, 2025, the company's book value per share was $13.60, and the adjusted book value per share was $14.64[178]. - Total equity as of March 31, 2025, was $1,934,585 thousand, a decrease from $2,008,086 thousand as of December 31, 2024[190]. - The book value per share decreased to $13.60 as of March 31, 2025, from $14.12 as of December 31, 2024[190]. - The adjusted book value per share was $14.64 as of March 31, 2025, down from $15.17 as of December 31, 2024[190]. Debt and Leverage Ratios - The Net Debt-to-Equity Ratio stood at 2.4x, and the Total Leverage Ratio was 2.8x as of March 31, 2025[178]. - As of March 31, 2025, the company had total outstanding borrowings of $4.7 billion and equity of $1.9 billion, resulting in a net debt-to-equity ratio of 2.4x[266][271]. - The total leverage ratio remained stable at 2.8x as of March 31, 2025, consistent with the previous quarter[271]. Loan Portfolio and Risk Management - The company focuses on originating loans ranging from $50 million to $300 million on transitional commercial real estate assets located in U.S. markets[175]. - The company has a diversified loan portfolio, including multifamily, hospitality, and mixed-use properties, with varying LTV ratios[199]. - The weighted average loan-to-value (LTV) ratio is 70.6%, indicating the risk level associated with the loan commitments[202]. - The company actively manages risks through underwriting, loan structuring, and asset management processes to protect investor capital[328]. - Credit risk is managed through extensive due diligence on collateral and borrowers, including monitoring market conditions and borrower performance[326]. Asset Management and Sales - The company is in the process of selling approximately 77,000 square feet of office and retail space for a sales price of $28.8 million[204]. - The company continues to pursue the sale of its hotel portfolio, reflecting strategic asset management efforts[203]. - The company has a hotel portfolio classified as held-for-sale, with related debt amounting to $275.2 million as of March 31, 2025[203]. Current Expected Credit Loss (CECL) Reserve - The total current expected credit loss reserve was $260.8 million as of March 31, 2025, reflecting a provision of $41.1 million for the three months ended March 31, 2025[211]. - Specific CECL reserve is noted at $119.3 million, indicating the company's proactive approach to credit risk management[200]. - The CECL reserve reflects the company's current estimate of potential credit losses related to its loan portfolio, with significant judgment required in determining impairment[304][313]. Liquidity and Financing - As of March 31, 2025, total sources of liquidity increased to $135.6 million from $101.7 million as of December 31, 2024, representing a 33.3% increase[274]. - The company has a tangible net worth requirement of not less than $1.86 billion as of each measurement date under its financing agreements[230]. - The company entered into a binding agreement to sell approximately 77,000 square feet of office and retail space for a sales price of $28.8 million in April 2025[279]. Interest Rate Sensitivity - Rising interest rates may increase the company's net interest income, while declining rates could decrease it, highlighting the sensitivity of financial performance to interest rate fluctuations[322][323]. - The impact on net interest income for the twelve-month period following March 31, 2025, shows a potential decrease of $382,000 with a 50 basis point drop in SOFR, and an increase of $605,000 with a 100 basis point rise[324]. - The company is exposed to risks related to fluctuations in cash flows and asset values due to interest rate movements, which may lead to nonperformance on floating rate assets[325]. Compliance and Regulatory - The company maintained compliance with all REIT requirements as of March 31, 2025, ensuring its tax status and operational framework[300]. - The company has an effective shelf registration statement with the SEC covering up to $250 million in securities, including common stock and debt securities[280].

Financial Data and Key Metrics Changes - For Q4 2024, the company reported a GAAP net loss of $0.72 per share and a distributable loss of $0.59 per share, with distributable earnings prior to realized gains and losses at $0.18 per share [18] - The held-for-investment loan portfolio decreased to $6.1 billion at December 31, 2024, down from $6.3 billion at September 30, 2024, primarily due to loan repayments and sales [19] Business Line Data and Key Metrics Changes - The company had $300 million in transaction activity for Q4 2024, which included repayment proceeds and loan sales executed at or close to par [10] - During the year, the company executed an aggregate of $1.3 billion in realizations, split evenly between repayments and loan sales, with five of seven loan sales executed at 97% of par [23] Market Data and Key Metrics Changes - The commercial real estate market is experiencing a significant transition, with underlying fundamentals remaining strong but recovery being slow and uneven [9] - The CMBS market has seen meaningful tightening of spreads over the past several quarters, despite increasing primary issuance levels [13] Company Strategy and Development Direction - The company plans to focus on enhancing liquidity, reducing watch list loans, and deleveraging the balance sheet throughout 2025 [34] - The strategy includes accelerating the resolution of watch list loans to reduce earnings drag and enhance overall portfolio credit metrics [14] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook due to the elevated interest rate environment and indicated that a conservative approach to managing available capital is prudent [12] - The company anticipates that refinancing and demand for real estate assets will continue, allowing for a transition out of non-earning or lower-earning assets [16] Other Important Information - The board decided to pause the quarterly dividend to preserve capital and enhance financial flexibility [12] - The company has $102 million in total liquidity, which includes cash and undrawn credit capacity [33] Q&A Session Summary Question: Clarification on loan modifications related to the Chrysler Building - Management clarified that loan number thirty-three is unrelated to the modification discussed and confirmed zero exposure to the Chrysler Building [41][42] Question: Outlook for repayment of a California asset - Management indicated that discussions with the borrower are ongoing and progressing positively [46] Question: Plans for further reducing leverage in 2025 - Management confirmed intentions to continue deleveraging the portfolio and repaying higher-cost debt [55] Question: Valuation and stock price reflection - Management stated that the current stock price does not reflect the inherent value of the portfolio and expects liquidity improvements to elevate the share price [66] Question: Strategy for resolving watch list loans - Management emphasized a more aggressive approach to resolving watch list loans to improve liquidity [72][75] Question: Fair value marks on REO assets - Management explained that recent write-downs were influenced by new legislation affecting hotel pricing in New York City [81] Question: Incremental capital for multifamily loans - Management indicated that the capital requirement for stabilizing identified assets is not expected to be significant [90]

Fourth Quarter 2024 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) See Endnotes in the Appendix. Loan Portfolio Overview | 7, b K e P o r t f o l i o M e t r i c s y | D e c e m b e r 3 1, 2 0 2 4 | S e t p | e m b e r 3 0, 2 0 2 4 | | --- | --- | --- | --- | | 3 L P t f l i o a n o r o o | $ 6. 1 B n | $ | 6. 3 B n | | 10 T t l L C i t t o a o a n o m m m e n s | $ 6. 7 B n | $ | 7. 0 B n | | f N u m b e r o L o a n s | 5 2 | | 5 7 | | 4 A d t d L T V j u s e | 7 2. 2 % | 7 | 1. 6 % | | A v e r a e ...

Core Viewpoint - Claros Mortgage Trust, Inc. (CMTG) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, but down from $0.31 per share a year ago, indicating an earnings surprise of 80% [1][2] Financial Performance - The company posted revenues of $60.23 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 13.39% and down from $75.98 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Claros Mortgage Trust, Inc. shares have declined approximately 34.7% since the beginning of the year, contrasting with the S&P 500's gain of 4.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $69.15 million, and for the current fiscal year, it is $0.39 on revenues of $274.44 million [7] Industry Outlook - The REIT and Equity Trust industry, to which Claros Mortgage Trust belongs, is currently ranked in the top 50% of over 250 Zacks industries, suggesting that stocks in this category tend to outperform those in the bottom 50% by more than 2 to 1 [8]