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 ...

A downtrend has been apparent in Claros Mortgage Trust, Inc. (CMTG) lately with too much selling pressure. The stock has declined 37.9% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.Guide to Identifying Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical in ...

Investment Philosophy - The investment philosophy emphasizes prudent investing while avoiding high-risk, high-yield opportunities, focusing on performance in down markets rather than up markets [1] - Fundamental valuations and good corporate governance are key drivers of the investment approach [1] Investment Focus - The company focuses on income-generating securities, including REITs, publicly traded alternative asset managers, and select high dividend stocks [1] - There is a particular interest in analyzing preferred stocks, which are often overlooked by mainstream investors [1] Market Positioning - The company believes that publicly traded partnerships, especially those of alternative asset managers, are undervalued by most institutional investors [1]

Financial Data and Key Metrics - The company reported a GAAP net loss of $0.40 per share and a distributable loss of $0.17 per share for Q3 2024 [19] - Distributable earnings per share prior to realized losses were $0.22 per share [19] - The loan held for investment portfolio decreased to $6.3 billion at September 30, down from $6.8 billion at June 30 [19] - The company received $374 million in loan repayments during the quarter, including full repayment of 4 loans totaling $354 million of UPB [20] - Future funding commitments decreased to $584 million at September 30 from $749 million at June 30 [22] Business Line Data and Key Metrics - Multifamily remains the largest portfolio exposure at 42% of the portfolio at quarter-end [27] - Office exposure is relatively small at 14% of the portfolio, with pre-COVID negative sentiment towards the sector proving beneficial [21] - The company reclassified three loans to held for sale, including a $30 million loan secured by land in Miami, a $211 million California condo loan, and a $115 million multifamily loan in Colorado [23][24][26] - Credit migration has been concentrated within the multifamily book, with two loans moved to a four-risk rating and three loans moved to a five-risk rating [28][29] Market Data and Key Metrics - The company anticipates transaction volume to pick up momentum in 2025 as sponsors access capital markets more favorably [14] - Multifamily developers may capitalize on supply-demand imbalances in certain markets, especially as new inventory is absorbed [14] - The company has identified select multifamily properties as compelling REO assets, leveraging sponsors' deep multifamily real estate experience [17] Company Strategy and Industry Competition - The company is transitioning its portfolio over the medium to long term, including selling watch list loans, pursuing REO opportunities, and paying down high-cost debt [15] - The company remains optimistic on multifamily, citing supply constraints and strong pricing trends in major urban markets [16] - The company is focused on proactive asset management and reducing nominal leverage levels during the elevated rate environment [15] Management Commentary on Operating Environment and Future Outlook - Management believes the market is recovering, with expectations of better fundamentals and lower borrowing costs driving transaction volumes [12] - The company sees a Goldilocks environment with inflation under control, job market resilience, and deflationary pressures from China [10] - Management expects rates to continue trending downward, which will promote confidence and restart a virtuous valuation cycle in commercial real estate [13] Other Important Information - The company reported $116 million in total liquidity at September 30, including cash and undrawn credit capacity [31] - Unencumbered assets totaled $459 million of UPB, including $213 million of loans classified as held for sale [31] Q&A Session Summary Question: Big picture on 4-rated loan bucket and carrying value [32] - Half of the 4-rated and 5-rated loans are multifamily, which the company is most constructive on due to strengthening fundamentals and value-add opportunities [33] - The company has made progress on non-multifamily assets, with a third of realizations year-to-date coming from 4-rated loans [34] Question: Increase in reserves and credit migration [36] - Reserves are subjective and depend on the company's ultimate plan to resolve assets, with decisions driven by facts and circumstances [38] - The company will continue to be opportunistic in an improving environment [39] Question: Paths to resolving loans (REO vs. loan sale) [42] - The decision between REO and loan sale is a capital allocation decision, with multifamily assets offering the best return on invested capital [43] - The company tests the market and considers reinvestment analysis and risks before making decisions [44] Question: Emerging new vintage bridge loan market [50] - Returns on a levered basis have not moved much, but the quality of assets, sponsors, and business plans has improved, reducing risk [51] - Back leverage at cost is coming in slowly, with financing costs and spreads on loans holding pricing steady [52] Question: Distress in the market and loan sales [53] - Private capital, including family offices and high net worth individuals, is actively bidding on distressed loans, offering certainty of execution [56] Question: Relative value spectrum and attractive returns [60] - Construction lending offers the best risk-adjusted return, with debt returns making more sense in the current environment [61] - Equity deals require more assumptions, with negative to slightly positive leverage for multifamily purchases [61] Question: Capital availability and needs [63] - The company has reduced unfunded commitments to $584 million, with $185 million in equity required over a couple of years [64] - The company may access incremental capital through private lenders for REO assets, but does not expect to tap the term loan market [67] Closing Remarks [70] - Management believes the market is stabilizing and recovering, with the company well-positioned to execute on future opportunities [70]

Claros Mortgage Trust, Inc. (CMTG) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to loss of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 69.23%. A quarter ago, it was expected that this company would post earnings of $0.10 per share when it actually produced earnings of $0.20, delivering a surprise of 100%.Over the last four quarters, the co ...

Claros Mortgage Trust, Inc. Reports Third Quarter 2024 Results New York, NY, November 7, 2024 – Claros Mortgage Trust, Inc. (NYSE: CMTG) (the "Company" or "CMTG") today reported its financial results for the quarter ended September 30, 2024. The Company's third quarter 2024 GAAP net loss was $56.2 million, or $0.40 per share. Distributable Loss (a non-GAAP financial measure defined below) was $24.6 million, or $0.17 per share. Distributable Earnings prior to realized losses was $31.0 million, or $0.22 per s ...