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]

Claros Mortgage Trust, Inc. Reports Fourth Quarter and Full Year 2024 Results A conference call to discuss CMTG's financial results will be held on Thursday, February 20, 2025, at 10:00 a.m. ET. The conference call may be accessed by dialing 1-833-470-1428 and referencing the Claros Mortgage Trust, Inc. teleconference call; access code 138857. New York, NY, February 19, 2025 – Claros Mortgage Trust, Inc. (NYSE: CMTG) (the "Company" or "CMTG") today reported its financial results for the quarter and year end ...

Financial Capacity and Leverage - As of December 31, 2024, the company had $5.5 billion of capacity under repurchase agreements and term participation facility, with $3.7 billion outstanding[47]. - The company's net debt-to-equity ratio was 2.4x and total leverage ratio was 2.8x as of December 31, 2024, with expectations for future leverage ratios to range between 2.0x and 3.0x[52]. - The company had $830.0 million of non-consolidated senior interests as of December 31, 2024, which are not reflected on the balance sheet[49]. - The company utilized multiple asset-specific financing structures, with total capacity of $273.3 million and unpaid principal balance of $238.9 million as of December 31, 2024[48]. Financing Strategy and Risk Management - The company’s financing strategy includes a mix of common stock issuances, repurchase agreements, and secured term loans, aiming to minimize risks associated with recourse borrowings[46]. - The company mitigates counterparty risk by diversifying financing sources and working with high credit-quality institutions[474]. - The company conducts comprehensive credit analysis and rigorous monitoring of borrowers to manage risks associated with loan repayments and tenant rent payments[475]. - Prepayment risk is managed by structuring loans with spread maintenance and minimum income levels to protect against early repayments[476]. - The company may face repayment and extension risks due to higher interest rates, which could lead to increased borrower defaults[479]. Asset Management and Investment Guidelines - The company has a proactive asset management approach, monitoring loans rigorously from closing to final repayment[56]. - The company’s investment guidelines allow for capital to be invested in high-quality short-term investments prior to deployment into loans[53]. Market Conditions and Competition - The company faces competition from various financial entities, which may impact its ability to originate or acquire attractive investments[59]. - The company is exposed to risks related to equity and debt capital markets, which may impact its ability to raise capital through common stock or other instruments[470]. - The company finances its operations through various means, including syndication of loans and secured term loans, but may face challenges due to market volatility and regulatory changes[472]. - Real estate market values are subject to volatility from various factors, including interest rates and economic conditions, which could impact loan collateral values[483]. Financing Stability - As of December 31, 2024, the company has not received any margin calls under its repurchase agreements, indicating stable financing conditions[471]. - The company expects to continue deleveraging payments to financing counterparties as agreed or on an as-needed basis[46]. Currency and Foreign Transactions - The company has not yet engaged in foreign currency transactions but may do so in the future, exposing it to currency risk[481].

Claros Mortgage Trust (NYSE: CMTG ) has seen its shares absolutely decimated, both in the last year (down 70%) and since its 2021 IPO (down 81%). However, this owner of real estate debt has seen its book value per share fall at a much more measuredSaj Karsan founded an investment and research firm that is based on the principles of value investing. He has an MBA from the Richard Ivey School of Business, has completed all three CFA exams, and has an engineering degree from McGill University. Visit his blog, ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Claros Mortgage Trust, Inc. (CMTG) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 19, 2025, might help the stock move higher if these key numbers a ...

Claros Mortgage Trust, Inc. (CMTG) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The powe ...