Group 1 - The stock of Claros Mortgage Trust, Inc. (CMTG) has experienced a significant decline of 37.9% over the past four weeks due to excessive selling pressure, but it is now in oversold territory, indicating a potential for a turnaround [1] - The Relative Strength Index (RSI) for CMTG is currently at 28.14, suggesting that the heavy selling may be exhausting itself, which could lead to a price rebound [5] - Analysts have raised their earnings estimates for CMTG by 19.2% over the last 30 days, indicating a strong consensus that the company may report better earnings than previously predicted, which typically correlates with price appreciation [6] Group 2 - CMTG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7]

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 ...

[Third Quarter 2024 Results Overview](index=1&type=section&id=Third%20Quarter%202024%20Results%20Overview) This section summarizes Claros Mortgage Trust's Q3 2024 financial performance, operational highlights, subsequent events, and CEO commentary [Third Quarter 2024 Financial Performance](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Performance) Claros Mortgage Trust, Inc. reported a GAAP net loss of $56.2 million, or $0.40 per share, and a Distributable Loss (non-GAAP) of $24.6 million, or $0.17 per share, for the third quarter of 2024 | Metric | Q3 2024 Amount | Per Share (Q3 2024) | | :---------------------------------------- | :------------------ | :------------------ | | GAAP Net Loss | $(56.2) million | $(0.40) | | Distributable Loss (non-GAAP) | $(24.6) million | $(0.17) | | Distributable Earnings prior to realized losses (non-GAAP) | $31.0 million | $0.22 | - GAAP net loss was **$56.2 million**, or **$0.40 per share**[1](index=1&type=chunk) - Distributable Loss (non-GAAP) was **$24.6 million**, or **$0.17 per share**[1](index=1&type=chunk) - Distributable Earnings prior to realized losses was **$31.0 million**, or **$0.22 per share**[1](index=1&type=chunk) [Third Quarter 2024 Operational Highlights](index=1&type=section&id=Third%20Quarter%202024%20Highlights) Q3 2024 operational highlights include managing a $6.3 billion loan portfolio, $374 million in repayments, $86 million in new funding, and a $79 million CECL provision | Metric | Q3 2024 Value | | :---------------------------------------- | :------------------ | | Loan Portfolio (weighted avg. all-in yield) | $6.3 billion (8.4%) | | Loan Repayments Received | $374 million | | Funded on Existing Commitments | $86 million | | Loans Reclassified to Held-for-Sale | $356 million | | Total Liquidity | $116 million | | Unencumbered Loan & REO Assets | $604 million | | Reduced Outstanding Financing (net) | $197 million | | Provision for CECL Reserves | $79 million | | Total CECL Reserve (% of UPB) | 3.7% | | Cash Dividend per Share | $0.10 | | Book Value per Share | $14.83 | - Loan portfolio of **$6.3 billion** with a weighted average all-in yield of **8.4%**[1](index=1&type=chunk) - Provision for CECL reserves approximated **$79 million**, or **$0.56 per share**, for the quarter, bringing the total CECL reserve to **3.7% of unpaid principal balance**[1](index=1&type=chunk) - Paid a cash dividend of **$0.10 per share** of common stock and reported a book value of **$14.83 per share**[1](index=1&type=chunk) [Subsequent Events](index=1&type=section&id=Subsequent%20Events) Post-quarter, CMTG sold two held-for-sale loans for $142 million and received $29 million in loan repayments, generating $61 million in net liquidity - Sold two held-for-sale loans for **$142 million**, generating net liquidity of **$51 million**[2](index=2&type=chunk) - Received full loan repayments of two loans representing **$29 million** unpaid principal balance, generating net liquidity of **$10 million**[2](index=2&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Richard Mack expressed optimism for commercial real estate, citing strong fundamentals, $1.2 billion in year-to-date realizations, and anticipated transaction acceleration in 2025 - CEO sees increasing positive momentum in commercial real estate with anticipated liquidity and borrowing cost relief[2](index=2&type=chunk) - Reported **$1.2 billion** in realizations on a year-to-date basis[2](index=2&type=chunk) - Expects transaction volumes to accelerate in **2025** and looks forward to capitalizing on opportunities to create value for stockholders[2](index=2&type=chunk) [Company Profile](index=2&type=section&id=Company%20Profile) This section describes Claros Mortgage Trust, Inc. as a REIT specializing in originating loans for transitional commercial real estate assets [About Claros Mortgage Trust, Inc.](index=2&type=section&id=About%20Claros%20Mortgage%20Trust%2C%20Inc.) CMTG is a REIT focused on originating senior and subordinate loans for transitional commercial real estate assets in major U.S. markets, externally managed by Claros REIT Management LP - CMTG is a real estate investment trust (REIT) focused on originating senior and subordinate loans on transitional commercial real estate assets in major U.S. markets[4](index=4&type=chunk) - Externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P.[4](index=4&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section notes the press release contains forward-looking statements subject to risks and uncertainties, covered by safe harbor provisions, with no obligation to update - The press release contains forward-looking statements covered by applicable safe harbor provisions[5](index=5&type=chunk) - Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from projections[5](index=5&type=chunk) - CMTG does not undertake any obligation to update or revise any forward-looking statements, except as required by law[5](index=5&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Distributable Earnings (Loss) as a non-GAAP measure used to evaluate performance and assess dividend capacity [Definition of Distributable Earnings (Loss)](index=3&type=section&id=Definitions) Distributable Earnings (Loss) is a non-GAAP measure excluding non-cash items and GAAP adjustments, used to evaluate operating performance, dividend capacity, and REIT status - Distributable Earnings (Loss) is a non-GAAP measure excluding non-cash stock-based compensation, real estate owned depreciation and amortization, unrealized gains or losses, one-time GAAP events, and certain non-cash items[6](index=6&type=chunk) - It is used to compare operating performance, assess the ability to declare and pay dividends, and determine compliance with financial covenants, and is a key factor for the Board in determining quarterly dividends[6](index=6&type=chunk)[7](index=7&type=chunk) - While Distributable Earnings (Loss) excludes the impact of CECL reserve provision, charge-offs of principal and/or accrued interest receivable are recognized when deemed non-recoverable[7](index=7&type=chunk) [Financial Reconciliation](index=3&type=section&id=Financial%20Reconciliation) This section provides a reconciliation of GAAP net loss to Distributable (Loss) Earnings, highlighting key adjustments and quarter-over-quarter changes [Reconciliation of Net Loss to Distributable (Loss) Earnings](index=3&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Distributable%20%28Loss%29%20Earnings) The reconciliation shows a Q3 2024 GAAP net loss of $(56,218) thousand, adjusted to a Distributable Loss of $(24,573) thousand, or $(0.17) per share, reflecting a significant QoQ decline Reconciliation of Net Loss to Distributable (Loss) Earnings (QoQ Comparison) | Metric | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Jun 30, 2024 (in thousands) | Change (QoQ) (in thousands) | | :---------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------------- | | Net loss | $(56,218) | $(11,554) | $(44,664) | | Non-cash stock-based compensation expense | $4,972 | $3,999 | $973 | | Provision for current expected credit loss reserve | $78,756 | $33,928 | $44,828 | | Depreciation and amortization expense | $2,628 | $2,623 | $5 | | Amortization of above and below market lease values, net | $354 | $354 | $0 | | Unrealized loss on interest rate cap | $287 | $94 | $193 | | Loss on extinguishment of debt | $262 | $999 | $(737) | | **Distributable Earnings prior to realized losses** | **$31,041** | **$30,443** | **$598** | | Loss on extinguishment of debt | $(262) | $(999) | $737 | | Principal charge-offs | $(55,352) | $(561) | $(54,791) | | **Distributable (Loss) Earnings** | **$(24,573)** | **$28,883** | **$(53,456)** | | Diluted Distributable Earnings per share prior to realized losses | $0.22 | $0.21 | $0.01 | | Diluted Distributable (Loss) Earnings per share | $(0.17) | $0.20 | $(0.37) | - Net loss increased significantly from **$(11,554) thousand** in Q2 2024 to **$(56,218) thousand** in Q3 2024[8](index=8&type=chunk) - Provision for current expected credit loss reserve increased from **$33,928 thousand** in Q2 2024 to **$78,756 thousand** in Q3 2024[8](index=8&type=chunk) - Principal charge-offs dramatically increased from **$(561) thousand** in Q2 2024 to **$(55,352) thousand** in Q3 2024, including a **$23.2 million** charge-off of accrued interest receivable[8](index=8&type=chunk) [Additional Information](index=1&type=section&id=Additional%20Information) This section provides details regarding the Q3 2024 earnings teleconference and company contact information [Teleconference Details](index=1&type=section&id=Teleconference%20Details) Claros Mortgage Trust held a conference call on November 8, 2024, at 10:00 a.m. ET to discuss Q3 2024 results, accessible via phone and webcast - A conference call to discuss financial results was held on Friday, **November 8, 2024**, at **10:00 a.m. ET**[2](index=2&type=chunk) - The conference call was accessible by dialing **1-833-470-1428** (access code **426287**) and broadcast live over the internet via the Investor Relations section of CMTG's website[2](index=2&type=chunk)[3](index=3&type=chunk) - An earnings presentation and webcast replay were made available on the company's website[3](index=3&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Investor relations inquiries can be directed to Anh Huynh, and media relations to Kelly McAndrew, with contact details provided - Investor Relations contact: Anh Huynh, Claros Mortgage Trust, Inc., **212-484-0090**, cmtgIR@mackregroup.com[8](index=8&type=chunk) - Media Relations contact: Kelly McAndrew, Financial Profiles, **203-613-1552**, Kmcandrew@finprofiles.com[8](index=8&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Securities registered pursuant to Section 12(b) of the Act: FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40993 Claros Mortgage Trust, Inc. (Exact Name of Registrant as Sp ...

REITer's Digest is a discussion forum for my thoughts on investments. I spent more than ten years working in the real estate industry, including an S&P500 REIT. My area of expertise is valuation including time working with a Big Four company's consulting group where I supported the audit of listed and non-listed REITs, valued real estate around the world, and advised clients through strategic change. I am light-hearted, open-minded, and a student of the game. Investing is not for the faint of heart and we'r ...

Financial Data and Key Metrics Changes - For Q2 2024, the company reported a GAAP net loss of $0.09 per share and distributable earnings of $0.20 per share, with distributable earnings per share prior to realized losses at $0.21, consistent with Q1 results [9][10] - The loan portfolio grew slightly to $6.8 billion at June 30, 2024, compared to $6.7 billion at March 31, 2024, due to follow-on fundings of $143 million, offset by partial loan repayments of $41 million [9][10] - Total CECL reserves as a percentage of UPB increased to 3.1% from 2.6% in the prior quarter, with specific CECL reserves at 23.1% of the UPB of loans with specific reserves [12] Business Line Data and Key Metrics Changes - The New York City area hotel portfolio showed stronger performance in Q2 due to seasonality, resulting in a $0.05 per share improvement in earnings compared to the previous quarter [9] - The multifamily portfolio remained unchanged, representing 40% of the total portfolio, indicating stability in this segment despite challenges faced by borrowers [10] Market Data and Key Metrics Changes - The commercial real estate market is showing signs of recovery, with lenders gradually returning and new sources of private credit emerging, although liquidity remains muted compared to historical levels [6][7] - The company remains optimistic about the multifamily sector, driven by population growth and limited housing supply, which is expected to support rental housing fundamentals [6][7] Company Strategy and Development Direction - The company plans to adjust its quarterly dividend to $0.10 per share starting Q3 2024 to enhance liquidity and pursue capital allocation strategies aimed at preserving and enhancing book value [8] - Management is focusing on being opportunistic with REO assets, aiming to improve value through better management and potential acquisitions at discounted prices [17][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by rising interest rates and inflation on the commercial real estate industry but sees potential for recovery as rates may begin to fall [4][5] - The company is optimistic about the future trajectory of the commercial real estate market, anticipating increased liquidity and a more favorable environment for capital deployment [6][40] Other Important Information - The company has made significant progress in improving the value of its REO assets, attributing this success to its management team's experience and hands-on approach [7] - The company has received $873 million in loan proceeds through payoffs or loan sales year-to-date, indicating ongoing progress in resolving watch-list loans [14] Q&A Session Summary Question: Strategy on REO - Management is adopting an opportunistic approach towards REO, focusing on cash-flowing multifamily assets and aiming to improve their value through better management [16][17] Question: Adjusting Covenants with Lenders - The company has maintained a constructive relationship with lenders, proactively working on covenant modifications to provide flexibility in managing assets and improving cash flow [24][25] Question: Expectations for Repayments - Management expects significant repayments through the rest of the year, with capital allocation decisions to be made based on the pace of repayments and opportunities that arise [31][33] Question: Dollar Amount of Loans Expected to Enter REO - It is difficult to quantify the exact amount of loans expected to enter REO, but approximately 5% of UPB is likely to transition based on current credit migrations [38]

Claros Mortgage Trust, Inc. Reports Second Quarter 2024 Results New York, NY, August 5, 2024 – Claros Mortgage Trust, Inc. (NYSE: CMTG) (the "Company" or "CMTG") today reported its financial results for the quarter ended June 30, 2024. The Company's second quarter 2024 GAAP net loss was ($11.6 million), or ($0.09) per diluted share. Distributable Earnings (a non-GAAP financial measure defined below) was $28.9 million, or $0.20 per diluted share. Distributable Earnings prior to realized losses was $30.4 mill ...

Let's start with a 6.4% dividend that had four of its big bosses buying in May. Recent Noteworthy Buys: getty But when these guys and gals buy, it's for one reason. They believe their stock's price is undervalued, and that it's due to pop. That said, I've had my eye on a handful of recent insider buys in some of Wall Street's top payers. These companies are yielding 6.4% to 12.3%. These insider buyers are not only confident that their stock price is heading higher. They also believe in the dividend. Sunoco ...