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Claros Mortgage Trust, Inc. Reports Second Quarter 2024 Results

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Claros Mortgage Trust, Inc. (NYSE: CMTG) reported its Q2 2024 financial results, showing a GAAP net loss of ($11.6 million), or ($0.09) per diluted share. The company's Distributable Earnings were $28.9 million, or $0.20 per diluted share. Key highlights include:

- $6.8 billion held-for-investment loan portfolio with a 9.0% weighted average all-in yield
- Funded $143 million in follow-on fundings
- Received $41 million in loan repayment proceeds
- Reduced outstanding financing by $128 million
- Total liquidity of $191 million
- Book value per share of $15.27

CMTG declared a Q3 2024 dividend of $0.10 per share, payable on October 15, 2024. The company also reported full repayments of three loans totaling $244 million after the quarter's end.

Claros Mortgage Trust, Inc. (NYSE: CMTG) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando una perdita netta GAAP di ($11,6 milioni), ossia ($0,09) per azione diluita. Gli utili distribuiti dell'azienda sono stati di $28,9 milioni, pari a $0,20 per azione diluita. I punti salienti includono:

- Un portafoglio di prestiti detenuti per investimento di $6,8 miliardi con un rendimento medio pesato del 9,0%
- Finanziamenti successivi per $143 milioni
- Ricevuti $41 milioni in proventi da rimborso di prestiti
- Ridotto il finanziamento in corso di $128 milioni
- Liquidità totale di $191 milioni
- Valore contabile per azione di $15,27

CMTG ha dichiarato un dividendo per il terzo trimestre 2024 di $0,10 per azione, pagabile il 15 ottobre 2024. L'azienda ha inoltre riportato rimborsi completi di tre prestiti per un totale di $244 milioni dopo la fine del trimestre.

Claros Mortgage Trust, Inc. (NYSE: CMTG) informó los resultados financieros del segundo trimestre de 2024, mostrando una pérdida neta GAAP de ($11.6 millones), o ($0.09) por acción diluida. Las ganancias distribuibles de la compañía fueron de $28.9 millones, o $0.20 por acción diluida. Los aspectos destacados incluyen:

- Cartera de préstamos mantenidos para inversión de $6.8 mil millones con un rendimiento promedio ponderado del 9.0%
- Financiamiento de $143 millones en fondos adicionales
- Recibidos $41 millones en ingresos por reembolso de préstamos
- Reducción de financiamiento pendiente en $128 millones
- Liquidez total de $191 millones
- Valor contable por acción de $15.27

CMTG declaró un dividendo del tercer trimestre de 2024 de $0.10 por acción, pagadero el 15 de octubre de 2024. La compañía también informó sobre los reembolsos completos de tres préstamos que suman $244 millones después del final del trimestre.

Claros Mortgage Trust, Inc. (NYSE: CMTG)는 2024년 2분기 재무 결과를 보고했으며, GAAP 기준 순손실이 ($11.6 백만), 즉 희석주당 ($0.09)로 나타났습니다. 회사의 배당 가능 이익은 $28.9 백만, 즉 희석주당 $0.20였습니다. 주요 하이라이트는 다음과 같습니다:

- 9.0% 가중 평균 수익률의 $6.8 억 달러 투자 대출 포트폴리오
- $143 백만의 후속 펀딩
- $41 백만의 대출 상환 수익
- $128 백만의 미결제 금융 축소
- 총 유동성 $191 백만
- 주당 장부 가치 $15.27

CMTG는 2024년 3분기 주당 $0.10의 배당금을 선언했으며, 이는 2024년 10월 15일에 지급될 예정입니다. 회사는 또한 분기 종료 후 $244 백만에 달하는 세 개의 대출을 전액 상환했다고 보고했습니다.

Claros Mortgage Trust, Inc. (NYSE: CMTG) a publié ses résultats financiers du deuxième trimestre 2024, indiquant une perte nette GAAP de ($11,6 millions), soit ($0,09) par action diluée. Les bénéfices distribuables de l'entreprise s'élevaient à $28,9 millions, soit $0,20 par action diluée. Les points saillants comprennent :

- Un portefeuille de prêts détenus pour investissement de $6,8 milliards avec un rendement moyen pondéré de 9,0%
- Financement de $143 millions en financements supplémentaires
- Receveur de $41 millions de recettes de remboursement de prêts
- Réduction des financements par $128 millions
- Liquidité totale de $191 millions
- Valeur comptable par action de $15,27

CMTG a déclaré un dividende pour le troisième trimestre 2024 de $0,10 par action, payable le 15 octobre 2024. L'entreprise a également rapporté un remboursement complet de trois prêts totalisant $244 millions après la fin du trimestre.

Claros Mortgage Trust, Inc. (NYSE: CMTG) hat die Finanzzahlen für das zweite Quartal 2024 veröffentlicht und einen GAAP-Nettoverlust von ($11,6 Millionen) oder ($0,09) pro verwässerter Aktie angegeben. Die distributiven Erträge des Unternehmens betrugen $28,9 Millionen oder $0,20 pro verwässerter Aktie. Zu den Hauptereignissen gehören:

- Ein Investitionsdarlehensportfolio im Wert von $6,8 Milliarden mit einer gewichteten durchschnittlichen Gesamtrendite von 9,0%
- Finanzierung von $143 Millionen in Folgefinanzierungen
- Erhalt von $41 Millionen an Rückzahlungsprovisionen für Darlehen
- Reduzierung der ausstehenden Finanzierung um $128 Millionen
- Gesamte Liquidität von $191 Millionen
- Buchwert pro Aktie von $15,27

CMTG erklärte eine Dividende für das dritte Quartal 2024 von $0,10 pro Aktie, zahlbar am 15. Oktober 2024. Das Unternehmen berichtete außerdem über vollständige Rückzahlungen von drei Darlehen in Höhe von insgesamt $244 Millionen nach Ende des Quartals.

Positive
  • Distributable Earnings of $28.9 million, or $0.20 per diluted share
  • $6.8 billion held-for-investment loan portfolio with a 9.0% weighted average all-in yield
  • Total liquidity of $191 million
  • Received full loan repayments of $244 million after quarter end
Negative
  • GAAP net loss of ($11.6 million), or ($0.09) per diluted share
  • Provision for CECL reserves of $34 million, or ($0.24) per share
  • Reduced quarterly dividend to $0.10 per share for Q3 2024

Insights

Claros Mortgage Trust's Q2 2024 results reveal a challenging quarter with a GAAP net loss of $11.6 million ($0.09 per diluted share). However, the company's Distributable Earnings of $28.9 million ($0.20 per diluted share) provide a more positive outlook. The significant provision for CECL reserves of $34 million ($0.24 per share) indicates ongoing credit concerns in the portfolio.

The reduction in outstanding financing by $128 million and subsequent loan repayments of $244 million suggest a focus on de-risking the balance sheet. The dividend cut to $0.10 per share for Q3 2024 reflects a prudent capital management strategy, allowing for potential book value preservation and portfolio repositioning.

The transitional commercial real estate market remains challenging, as evidenced by CMTG's results. The $6.8 billion held-for-investment loan portfolio with a 9.0% weighted average all-in yield suggests potential pressure on asset quality. The company's focus on resolving watch list loans and the CEO's expectation of improved capital markets due to potential Fed rate cuts indicate a cautiously optimistic outlook for the sector.

The full repayment of three loans totaling $244 million across different property types (build-to-rent, industrial and office) provides insight into varying market dynamics. The office loan repayment in New York is particularly noteworthy, given the ongoing challenges in the office sector post-pandemic.

NEW YORK--(BUSINESS WIRE)-- 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 million, or $0.21 per diluted share.

Second Quarter 2024 Highlights

  • $6.8 billion held-for-investment loan portfolio with a weighted average all-in yield of 9.0%.
    • Funded approximately $143 million of follow-on fundings related to the existing loan portfolio.
    • Received loan repayment proceeds of $41 million.
  • Reduced outstanding financing by $128 million.
  • Provision for CECL reserves approximated $34 million, or ($0.24) per share, for the second quarter; overall general CECL reserve per share of $0.95.
  • Total liquidity of $191 million consisting of $148 million of cash and $43 million of approved and undrawn credit capacity.
  • Book value per share of $15.27.

Subsequent Events

  • The Company declared a dividend of $0.10 per share of common stock with respect to the third quarter of 2024. The dividend is payable on October 15, 2024 to stockholders of record as of the close of business on September 30, 2024.
  • Subsequent to quarter end, received full loan repayments of three loans representing unpaid principal balance of $244 million:
    • $22 million loan secured by a build-to-rent property in Georgia.
    • $99 million loan secured by an industrial property in Nevada.
    • $123 million loan secured by an office building in New York.

“During the first half of 2024, we continued to make progress resolving watch list loans,” said Richard Mack, Chief Executive Officer and Chairman of CMTG. “Given a higher likelihood of the Federal Reserve reducing rates, we expect capital markets to continue to improve. This should allow for an environment that facilitates increased repayment activity and accelerated positive momentum in loan resolutions.”

Mack continued, “In light of this shifting macro environment, the Company declared a quarterly dividend of $0.10 per share for the third quarter 2024, in order to allow us to more opportunistically redirect capital into strategies to preserve and enhance book value, and better position our portfolio for long term earnings growth.”

Teleconference Details
A conference call to discuss CMTG’s financial results will be held on Tuesday, August 6, 2024, at 9:00 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 172243.

The conference call will also be broadcast live over the internet and may be accessed through the Investor Relations section of CMTG’s website at www.clarosmortgage.com. An earnings presentation accompanying the earnings release and containing supplemental information about the Company’s financial results may also be accessed through this website in advance of the call.

For those unable to listen to the live broadcast, a webcast replay will be available on CMTG’s website or by dialing 1-866-813-9403, access code 130740, beginning approximately two hours after the event.

About Claros Mortgage Trust, Inc.
CMTG is a real estate investment trust that is focused primarily on originating senior and subordinate loans on transitional commercial real estate assets located in major markets across the U.S. CMTG is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. Additional information can be found on the Company’s website at www.clarosmortgage.com.

Forward-Looking Statements
Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. CMTG intends for all such forward-looking statements to be covered by the applicable safe harbor provisions for forward-looking statements contained in those acts. Such forward-looking statements can generally be identified by CMTG’s use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue,” “seek,” “objective,” “goal,” “strategy,” “plan,” “focus,” “priority,” “should,” “could,” “potential,” “possible,” “look forward,” “optimistic,” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements are not intended to be a guarantee of CMTG’s performance in future periods. Except as required by law, CMTG does not undertake any obligation to update or revise any forward-looking statements contained in this release.

Definitions
Distributable Earnings (Loss):
Distributable Earnings (Loss) is a non-GAAP measure used to evaluate our performance excluding the effects of certain transactions, non-cash items and GAAP adjustments, as determined by our Manager. Distributable Earnings (Loss) is a non-GAAP measure, which the Company defines as net income (loss) in accordance with GAAP, excluding (i) non-cash stock-based compensation expense, (ii) real estate owned depreciation and amortization, (iii) any unrealized gains or losses from mark-to-market valuation changes (other than permanent impairments) that are included in net income (loss) for the applicable period, (iv) one-time events pursuant to changes in GAAP and (v) certain non-cash items, which in the judgment of our Manager, should not be included in Distributable Earnings (Loss). Furthermore, the Company presents Distributable Earnings prior to realized gains and losses, which includes principal charge-offs, as the Company believes this more easily allows our Board, Manager, and investors to compare our operating performance to our peers, to assess our ability to declare and pay dividends, and to determine our compliance with certain financial covenants. Pursuant to the Management Agreement, we use Core Earnings, which is substantially the same as Distributable Earnings (Loss) excluding incentive fees, to determine the incentive fees we pay our Manager.

The Company believes that Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses provide meaningful information to consider in addition to our net income (loss) and cash flows from operating activities in accordance with GAAP. Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses do not represent net income (loss) or cash flows from operating activities in accordance with GAAP and should not be considered as an alternative to GAAP net income (loss), an indication of our cash flows from operating activities, a measure of our liquidity or an indication of funds available for our cash needs. In addition, the Company’s methodology for calculating these non-GAAP measures may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures and, accordingly, the Company’s reported Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses may not be comparable to the Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses reported by other companies.

In order to maintain the Company’s status as a REIT, the Company is required to distribute at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gain, as dividends. Distributable Earnings (Loss), Distributable Earnings prior to realized gains and losses, and other similar measures, have historically been a useful indicator over time of a mortgage REIT’s ability to cover its dividends, and to mortgage REITs themselves in determining the amount of any dividends to declare. Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses are key factors, among others, considered by the Board in determining the dividend each quarter and as such the Company believes Distributable Earnings (Loss) and Distributable Earnings prior to realized gains and losses are also useful to investors.

While Distributable Earnings (Loss) excludes the impact of our provision for or reversal of current expected credit loss reserve, principal charge-offs are recognized through Distributable Earnings (Loss) when deemed non-recoverable. Non-recoverability is determined (i) upon the resolution of a loan (i.e., when the loan is repaid, fully or partially, or when the Company acquires title in the case of foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure), or (ii) with respect to any amount due under any loan, when such amount is determined to be uncollectible.

Claros Mortgage Trust, Inc.

Reconciliation of Net Loss to Distributable Earnings (Loss)

(Amounts in thousands, except share and per share data)

 

 

 

 

 

Three Months Ended

 

 

June 30, 2024

 

March 31, 2024

Net loss:

 

$

(11,554

)

 

$

(52,795

)

Adjustments:

 

 

 

 

Non-cash stock-based compensation expense

 

 

3,999

 

 

 

4,353

 

Provision for current expected credit loss reserve

 

 

33,928

 

 

 

69,960

 

Depreciation and amortization expense

 

 

2,623

 

 

 

2,599

 

Amortization of above and below market lease values, net

 

 

354

 

 

 

354

 

Unrealized loss on interest rate cap

 

 

94

 

 

 

998

 

Loss on extinguishment of debt

 

 

999

 

 

 

2,244

 

Distributable Earnings prior to realized losses

 

$

30,443

 

 

$

27,713

 

Loss on extinguishment of debt

 

 

(999

)

 

 

(2,244

)

Principal charge-offs

 

 

(561

)

 

 

(42,266

)

Distributable Earnings (Loss)

 

$

28,883

 

 

$

(16,797

)

Weighted average diluted shares - Distributable Earnings (Loss)

 

 

142,276,031

 

 

 

141,403,825

 

Diluted Distributable Earnings per share prior to realized losses

 

$

0.21

 

 

$

0.20

 

Diluted Distributable Earnings (Loss) per share

 

$

0.20

 

 

$

(0.12

)

 

Investor Relations:

Claros Mortgage Trust, Inc.

Anh Huynh

212-484-0090

cmtgIR@mackregroup.com

Media Relations:

Financial Profiles

Kelly McAndrew

203-613-1552

Kmcandrew@finprofiles.com

Source: Claros Mortgage Trust, Inc.

FAQ

What was CMTG's net income for Q2 2024?

CMTG reported a GAAP net loss of ($11.6 million), or ($0.09) per diluted share, for Q2 2024.

What is the size of CMTG's loan portfolio as of Q2 2024?

CMTG has a $6.8 billion held-for-investment loan portfolio with a weighted average all-in yield of 9.0%.

How much did CMTG declare in dividends for Q3 2024?

CMTG declared a dividend of $0.10 per share of common stock for Q3 2024, payable on October 15, 2024.

What was CMTG's book value per share at the end of Q2 2024?

CMTG's book value per share was $15.27 at the end of Q2 2024.

Claros Mortgage Trust, Inc.

NYSE:CMTG

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