[8-K] Claros Mortgage Trust, Inc. Reports Material Event
Rhea-AI Filing Summary
Claros Mortgage Trust, Inc. reported a GAAP net loss of $54.3 million, or $0.39 per share, for the quarter ended March 31, 2026. Distributable loss was $75.2 million, or $0.52 per share, and distributable loss prior to realized losses was $7.5 million, or $0.05 per share.
The company resolved five loans totaling $608.8 million of unpaid principal balance, contributing to year-to-date loan resolutions of $634.2 million. Current expected credit loss reserves were $31.4 million for the quarter and $398.9 million in total, equal to 11.4% of loan UPB.
At quarter-end, Claros Mortgage Trust had a $3.2 billion loan portfolio with a weighted average all-in yield of 5.6%, book value of $10.33 per share, total liquidity of $132 million, and a net debt-to-equity ratio of 1.7x. The company closed a new $500 million secured term loan maturing in 2030 and reduced total financing balances.
Positive
- None.
Negative
- None.
Insights
CMTG posts Q1 loss while accelerating loan resolutions and reducing leverage.
Claros Mortgage Trust generated a GAAP net loss of $54.3 million and a distributable loss of $75.2 million in Q1 2026, with distributable loss prior to realized losses at $7.5 million. Results were driven by credit costs, including a $31.4 million CECL provision and $61.9 million of principal charge-offs.
The company continued de-risking by resolving five loans totaling $608.8 million of UPB and cutting watchlist exposure, while maintaining a $3.2 billion loan portfolio with a 5.6% weighted average all-in yield. CECL reserves reached $398.9 million, or 11.4% of UPB, heavily concentrated in watchlist assets.
Liquidity stood at $132 million at March 31, 2026, and the net debt-to-equity ratio improved to 1.7x after financing paydowns and refinancing into a new $500 million term loan maturing in 2030. Future filings may show how additional resolutions, REO sales and reserve levels affect book value and distributable earnings.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On May 6, 2026, Claros Mortgage Trust, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2026 and distributed certain supplemental financial information. Copies of the press release and supplemental financial information are furnished herewith as Exhibits 99.1 and 99.2, respectively. The press release and supplemental financial information have also been posted in the investor relations/presentations section of the Company’s website at www.clarosmortgage.com.
The information in this Item 2.02 (including Exhibits 99.1 and 99.2 hereto) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Furthermore, the information contained in the press release and supplemental financial information attached to this report as Exhibits 99.1 and 99.2, respectively, shall not be deemed to be incorporated by reference in the filings of the registrant under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 7.01. Regulation FD Disclosure.
As discussed in Item 2.02 above, the Company issued a press release announcing its earnings for the quarter ended March 31, 2026 and distributed certain supplemental information. The press release and supplemental financial information have also been posted in the investor relations/presentations section of the Company’s website at www.clarosmortgage.com.
The information in this Item 7.01 (including Exhibits 99.1 and 99.2 hereto) shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. Furthermore, the information contained in the press release and supplemental financial information attached to this report as Exhibits 99.1 and 99.2, respectively, shall not be deemed to be incorporated by reference in the filings of the registrant under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing. The information included in this Current Report on Form 8-K under this Item 7.01 (including Exhibit 99.1 and 99.2 hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.
Item 9.01 Financial Statements and Exhibits.
99.1 |
Press Release dated May 6, 2026 |
99.2 |
First Quarter 2026 Supplemental Financial Report |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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CLAROS MORTGAGE TRUST, INC. |
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May 6, 2026 |
By: |
/s/ J. Michael McGillis |
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J. Michael McGillis |
Claros Mortgage Trust, Inc.
Reports First Quarter 2026 Results
New York, NY, May 6, 2026 – Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today reported its financial results for the quarter ended March 31, 2026. The Company reported GAAP net loss of $54.3 million, or $0.39 per share, for the quarter ended March 31, 2026. Distributable Loss (a non-GAAP financial measure defined below) was $75.2 million, or $0.52 per share, and Distributable Loss prior to realized losses was $7.5 million, or $0.05 per share, for the quarter ended March 31, 2026.
First Quarter 2026 Highlights
Subsequent Events
“We had a productive start to 2026, executing well on our strategic priorities, including making meaningful progress on watchlist loans,” said Richard Mack, Chief Executive Officer and Chairman of
CMTG. “While uncertainty continues to shape the broader market environment, we are encouraged by signs of resilience across real estate capital markets. Our actions during the quarter further reduced portfolio risk and advanced our deleveraging efforts. We believe this progress positions us to continue turning over the portfolio in order to redeploy capital into more accretive opportunities.”
(1) Represents the weighted average annualized yield to initial maturity of each loan held-for-investment, inclusive of coupon and contractual fees, based on the applicable floating benchmark rate/floors (if applicable), in place as of March 31, 2026. For loans placed on non-accrual, the annualized yield to initial maturity used in calculating the weighted average annualized yield to initial maturity is 0%.
Teleconference Details
A conference call to discuss CMTG’s financial results will be held on Thursday, May 7, 2026, at 10:00 a.m. ET. The conference call may be accessed by dialing 1-833-461-5787 and referencing the Claros Mortgage Trust, Inc. teleconference call; access code 565280844.
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 visiting https://events.q4inc.com/attendee/565280844, 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 held-for-investment 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 (Loss) prior to realized gains and losses, which such gains and losses include charge-offs of principal, accrued interest receivable, and/or exit fees, 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 (Loss) 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 (Loss) 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 (Loss) prior to realized gains and losses may not be comparable to the Distributable Earnings (Loss) and Distributable Earnings (Loss) 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 (Loss) 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 (Loss) prior to realized gains and losses are key factors, among others, considered by our Board in determining the dividend each quarter and as such the Company believes Distributable Earnings (Loss) and Distributable Earnings (Loss) 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, charge-offs of principal, accrued interest receivable, and/or exit fees 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, when the Company acquires title in the case of foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure, or when the loan is sold or anticipated to be sold for an amount less than its carrying value), or (ii) with respect to any amount due under any loan, when such amount is determined to be uncollectible.
In determining Distributable Earnings (Loss) per share and Distributable Earnings (Loss) per share prior to realized gains and losses, the dilutive effects of unvested RSUs and warrants outstanding are considered. The weighted average diluted shares outstanding used for Distributable Earnings (Loss) and Distributable Earnings (Loss) per share prior to realized gains and losses have been adjusted from weighted average diluted shares under GAAP to include weighted average unvested RSUs and warrants outstanding, if the exercise price exceeds the average share price of our common stock during such period.
Book Value per Share:
Book Value per share is calculated as (i) total equity divided by (ii) number of shares of common stock outstanding and RSUs at period end.
Contact Information
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
Claros Mortgage Trust, Inc.
Reconciliation of GAAP Net Loss to Distributable Loss
(Amounts in thousands, except share and per share data)
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Three Months Ended |
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Three Months Ended |
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March 31, 2026 |
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December 31, 2025 |
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Net loss: |
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$ |
(54,294 |
) |
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$ |
(219,211 |
) |
Adjustments: |
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Non-cash stock-based compensation expense |
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2,317 |
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2,242 |
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Provision for current expected credit loss reserve |
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31,372 |
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211,681 |
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Depreciation and amortization expense |
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6,399 |
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5,731 |
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Amortization of above and below market lease values, net |
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258 |
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258 |
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Amortization of discount on secured term loan |
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569 |
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- |
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Loss on extinguishment of debt |
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5,898 |
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847 |
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Loss on partial sales of real estate owned |
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- |
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1,382 |
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Distributable (loss) earnings prior to realized losses |
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$ |
(7,481 |
) |
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$ |
2,930 |
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Loss on extinguishment of debt |
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(5,898 |
) |
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(847 |
) |
Principal charge-offs (1) |
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(61,861 |
) |
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(102,222 |
) |
Loss on partial sales of real estate owned |
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- |
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(1,382 |
) |
Previously recognized depreciation and amortization on partial real estate owned sold (2) |
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- |
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(142 |
) |
Distributable loss |
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$ |
(75,240 |
) |
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$ |
(101,663 |
) |
Weighted average diluted shares - Distributable loss |
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143,460,120 |
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142,956,410 |
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Diluted Distributable (loss) earnings per share prior to realized losses |
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$ |
(0.05 |
) |
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$ |
0.02 |
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Diluted Distributable loss per share |
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$ |
(0.52 |
) |
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$ |
(0.71 |
) |
First Quarter 2026 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) May 6, 2026 The properties above are not representative of all transactions. The information provided herein is as of March 31, 2026, unless otherwise noted.
Financial GAAP net loss of $54.3 million, or $0.39 per share; distributable loss of $75.2 million, or $0.52 per share; and distributable loss prior to realized losses of $7.5 million, or $0.05 per share 1, 14 Provision for CECL reserves of $31.4 million, or $0.22 per share, for the quarter Book value of $10.33 per share REO assets generated distributable loss of $0.04 per share for the quarter, net of financing costs, primarily due to expected seasonality of REO hotel portfolio Loan and REO Portfolio 3, 4 Loan resolutions year-to-date of $634.2 million of UPB 2, 3 and partial loan repayments of $12.0 million of UPB Resolved five watchlist loans totaling $460.4 million of UPB 2, 3 Subsequent to quarter-end, entered into a binding agreement to sell a multifamily REO asset for a gross sales price of $48.0 million $3.2 billion loan portfolio 4, of which 96% are floating-rate and 96% are senior loans 4, 6 Watchlist loans of $1.4 billion 4 (13 loans) at March 31, 2026, representing a 15% decline from year-end 4 CECL reserves of $398.9 million on UPB, or $2.76 per share at quarter-end 20 Approximately 11.4% of UPB at quarter-end, comprised of (i) specific reserves of 26.8% of UPB of risk rated 5 loans and (ii) general reserves of 2.3% of UPB (7.7% of UPB of risk rated 4 loans and 0.9% of UPB on remaining loans) 20 Liquidity and Capitalization Closed a new $500 million secured term loan maturing in 2030; proceeds used to fully retire prior secured term loan At March 31, 2026: Total liquidity of $132 million, including $117 million of cash 7 Unencumbered assets of $538 million, consisting of $363 million of loan UPB and $175 million of REO carrying value 8 Net unfunded loan commitments decreased to $5 million 9 Net financings outstanding decreased by $489 million, including $142 million of deleveraging payments Net debt / equity ratio of 1.7x 10, 14 Total leverage ratio of 2.2x 11, 14 At May 5, 2026, total liquidity of $116 million, including $103 million of cash 7 First Quarter 2026 Highlights See Endnotes in the Appendix.
Loan Resolution Activity Loan Resolution and Repayment Activity 2 (unpaid principal balance) FY 2022 – 2026 YTD ($ in billions) $646 million 2 2026 YTD During the quarter, resolved five loans totaling $608.8 million of UPB 2 and received $4.0 million in partial loan repayments. Two full repayments: $240.8 million of UPB, includes one watchlist loan One loan sale: $220.0 million of UPB 2; watchlist loan, gross recovery of 90% One mortgage foreclosure: $76.6 million of UPB 2, watchlist loan collateralized by a multifamily property in the Dallas MSA One assignment to lender: $71.4 million of UPB 2, watchlist loan Subsequent to quarter-end, resolved one loan totaling $25.4 million of UPB 2 and received $8.0 million in partial loan repayments. One mortgage foreclosure: $25.4 million of UPB 2, watchlist loan collateralized by a multifamily property in the Dallas MSA 2022 2023 2024 2025 2026 YTD
Loan Portfolio Overview Key Portfolio Metrics 3, 12 March 31, 2026 December 31, 2025 Total Loan Commitments 13 $3.7Bn $4.3Bn Loan UPB $3.5Bn $4.1Bn Loan Carrying Value 4 $3.2Bn $3.7Bn Number of Loans 28 33 Adjusted LTV 14 77.2% 76.3% Average Commitment Size $132MM $130MM Weighted Average All-In Yield 15 5.6% 6.2% Floating Rate Loans 4 96% 97% Senior Loans 4, 6 96% 97% See Endnotes in the Appendix. A. At March 31, 2026 and December 31, 2025, approximates 1%. B. At March 31, 2026, approximates 2%. 16 Collateral Diversification 3, 4, 12 Geographical Diversification 3, 4, 12 3/31/26 12/31/25 A B 3/31/26 12/31/25
($ amounts in millions) Region Exposure by Carrying Value and as a % of Total Carrying Value 3, 4, 12 Collateral Type Number of Loans Carrying Value 4 % of Total Carrying Value West Northeast Midwest Southeast Southwest Mid Atlantic Other Multifamily 11 $1,400 44% $739 / 23% - $294 / 9% - $239 / 8% $130 / 4% - Hospitality 4 $592 19% $224 / 7% $299 / 10% - $69 / 2% - - - Office 5 $534 17% $179 / 6% - $125 / 4% $230 / 7% - - - Mixed-use 15 3 $319 10% - $233 / 7% - $86 / 3% - - - Retail 2 $152 5% - $152 / 5% - - - $120 / 4% - Land 1 $120 4% - - - - - - - Other 2 $38 1% - - - - - - $38 / 1% Total 3, 4, 12 28 $3,155 100% $1,142 / 36% $684 / 22% $419 / 13% $385 / 12% $239 / 8% $250 / 8% $38 / 1% Loan Portfolio Overview (cont’d) See Endnotes in the Appendix. Totals may not foot due to rounding.
During the quarter: Two loans repaid totaling $240.8 million of UPB, including one watchlist loan.12 Resolved three watchlist loans totaling $368.0 million of UPB 2 through a loan sale, mortgage foreclosure, and assignment to lender. Funded $22.2 million on existing loan commitments and received $4.0 million of partial loan repayments.12 Loan Portfolio Activity ($551) Net Change in UPB Total Commitments $3,710 Total Commitments $4,329 Q1 2026 – Loan Portfolio Activity 2, 12 ($ amounts in millions) UPB 12 12/31/25 Fundings 12 Repayments 12 Loan Sale 12 Transfer to Lender 12 Transfer to REO A UPB 12 3/31/26 See Endnotes in the Appendix. Totals may not foot due to rounding. A. Principal charge-off of $39.1 million recognized as of December 31, 2025 in connection with a mortgage foreclosure of a multifamily property in January 2026.
CECL Reserves on Loans Receivable Risk rated 4 loans have general CECL reserves of 7.7% of UPB and are secured by office, multifamily, and hospitality properties. Remaining risk rated 2 and 3 loans have a general CECL reserve of 0.9% of UPB. 96% of total CECL reserves on UPB relates to watchlist loans. Risk Rated 5 Loans Risk Rated 4 Loans Risk Rated 2 - 3 Loans Total CECL Reserves (on UPB of Risk Rated 2 – 5 Loans) General CECL Reserves (on UPB of Risk Rated 2 - 4 Loans) $398.9 million $2.76 per share 11.4% of UPB $50.1 million $0.35 per share 2.3% of UPB
$ amounts in millions Number of Loans UPB Carrying Value 4 Specific CECL Reserve Specific CECL Reserve (% of UPB) Multifamily (CA / CO / TX) 3 $711.6 $488.0 $222.9 31.3% Office (CA / GA) 3 $404.0 $317.9 $85.4 21.1% Land (VA) 1 $157.6 $120.1 $37.5 23.8% Other 17 (Other) 1 $1.6 $1.6 $- -% Total (after Q2 ‘26 QTD resolutions) 8 $1,274.8 $927.6 $345.8 27.1% REO Multifamily (TX) 1 $25.4 $22.4 $3.0 11.8% Total (At March 31, 2026) 9 $1,300.2 $950.0 $348.8 26.8% Risk Rated 5 Loan Summary Risk rated 5 loans of $950 million, net of specific CECL reserves of 26.8% of UPB, are primarily secured by multifamily, office and land properties. Subsequent to quarter-end, resolved one loan through a mortgage foreclosure. We seek to resolve these loans through a variety of means including foreclosures, sales, and discounted repayments. See Endnotes in the Appendix. Totals may not foot due to rounding.
Real Estate Owned Multifamily Properties A ($ amounts in millions, except asset basis) Hotel Portfolio Mixed-use Property Land Parcel Multifamily 1 Multifamily 2 Multifamily 3 B Multifamily 4 Multifamily 5 Multifamily 6 C (Subsequent to Quarter-End) Acquisition Date February 2021 June 2023 December 2025 May 2025 June 2025 July 2025 July 2025 January 2026 May 2026 Location New York, NY New York, NY New York, NY Phoenix, AZ Henderson, NV Dallas, TX Dallas, TX Dallas, TX Dallas, TX Carrying Value D, 8 $319.5 $80.3 $94.3 $40.8 $75.4 $108.4 $24.4 $37.3 $22.4 Units / Keys / SF 1,087 31K (Retail Only) 373,270 206 376 239 & 316 (555 Total) 370 650 232 Asset Basis D $293,902 / Key $2,591 / SF $253 / Buildable SF $197,854 / Unit $200,444 / Unit $195,322 / Unit $65,817 / Unit $57,330 / Unit $96,552 / Unit Debt Outstanding D $235.0 - - $32.6 $62.7 $74.4 $25.6 $37.2 $14.2 Net Equity D $84.5 $80.3 $94.3 $8.2 $12.7 $34.0 ($1.2) $0.1 $8.2 Strategy Continue to evaluate market conditions for eventual sale Evaluating monetization Evaluating monetization Improve operating performance for eventual sale Improve operating performance for eventual sale Binding agreement to sell 239-unit property Evaluating monetization Evaluating monetization Improve operating performance for eventual sale See Endnotes in the Appendix. Totals may not foot due to rounding. A. Assets are financed through a repurchase agreement and are cross collateralized. B. Comprised of two multifamily properties which previously served as the collateral for one loan. C. In May 2026, we acquired legal title to the underlying collateral asset through a mortgage foreclosure. Carrying value reflects loan receivable carrying value net of specific CECL reserve as of March 31, 2026. D. Values as of March 31, 2026, unless otherwise noted. At quarter-end, REO asset carrying value of $780.2 million, net equity of $312.9 million; $174.6 million is unencumbered. Subsequent to quarter-end, entered into a binding agreement to sell a portion of Multifamily 3 REO for a gross sales price of $48.0 million; relative carrying value at quarter-end of $46.8 million. Unencumbered REO
At quarter-end, total liquidity of $132 million; at May 5, 2026, total liquidity of $116 million. 7 During the quarter, net financings outstanding decreased by $489 million, including $142 million of deleveraging payments (of which $56 million related to the refinancing of our secured term loan). Liquidity Overview 12/31/25 3/31/26 5/5/26 Total Available Liquidity 7 ($ amounts in millions) Cash and Cash Equivalents Approved and Undrawn Credit Capacity 7 See Endnotes in the Appendix.
During the quarter: Closed a new $500 million secured term loan maturing in 2030; proceeds used to fully retire prior secured term loan with a UPB of $556 million. Net financings outstanding decreased by $489 million, including $142 million of deleveraging payments. Financing Activity $(489) Net Change in UPB Q1 2026 – Financing Activity ($ amounts in millions) UPB 12/31/25 Advances Repayments UPB 3/31/26 Totals may not foot due to rounding. A. At March 31, 2026, we have no notes payable. $3,156 $2,667 Repurchase agreements and term participation facility Notes payable A Debt related to real estate owned hotel portfolio Secured term loan Portion of repurchase agreements secured by multifamily REO assets $2,188 $177 $235 $556 $500 $11 $556 $177 $267 $1,932 $235 $500 $195 $233
Financing Mix and Leverage Total financing capacity of $4.4 billion, decrease from $5.2 billion at December 31, 2025. Total financing UPB of $2.7 billion, decrease from $3.2 billion at December 31, 2025. Unused capacity of $1.7 billion, decrease from $2.0 billion at December 31, 2025. Net debt / equity ratio of 1.7x, decrease from 1.9x from December 31, 2025. 10, 14 Total leverage ratio of 2.2x, decrease from 2.5x at December 31, 2025. 11, 14 $ amounts in millions Capacity UPB Weighted Average Spread 18 Repurchase agreements and term participation facility $3,638 $1,932 2.91% Debt related to real estate owned hotel portfolio $235 $235 3.18% Secured term loan $500 $500 6.75% Total as of March 31, 2026 $4,373 $2,667 3.65% Financing Balances and Weighted Average Spreads Leverage Ratios 10, 11, 14 See Endnotes in the Appendix.
Book Value per Share Roll-Forward $11.33 Adjusted BV per Share 14 $10.83 Adjusted BV per Share 14 Book Value 12/31/25 Distributable Loss Prior to Realized Losses 1, 14 Realized Losses and Non-Cash Items RSUs, Warrants, and Other Book Value 3/31/26 Totals may not foot due to rounding. $3.73 $10.69
Financial Overview Key Financial Metrics Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 2025 GAAP Net Loss ($MM) Per Share $ (54.3) $ (0.39) $ (219.2) $ (1.56) $ (9.5) $ (0.07) $ (181.7) $ (1.30) $ (78.6) $ (0.56) $ (489.1) $ (3.49) Distributable Loss ($MM) 1, 14 Per Share $ (75.2) $ (0.52) $ (101.7) $ (0.71) $ (21.5) $ (0.15) $ (110.1) $ (0.77) $ (35.7) $ (0.25) $ (269.0) $ (1.88) Distributable (Loss) Earnings prior to realized gains and losses ($MM) 1, 14 Per Share $ (7.5) $ (0.05) $ 2.9 $ 0.02 $ 5.9 $ 0.04 $ 14.8 $ 0.10 $ 11.6 $ 0.08 $ 35.2 $ 0.24 Book Value ($MM) Per Share Adjusted Book Value per Share 14, 19 $ 1,492.8 $ 10.33 $ 10.83 $ 1,531.9 $ 10.69 $ 11.33 $ 1,748.8 $ 12.24 $ 13.28 $ 1,757.0 $ 12.27 $ 13.27 $ 1,934.6 $ 13.60 $ 14.64 Net Debt / Equity Ratio 10, 14 Total Leverage Ratio 11, 14 1.7x 2.2x 1.9x 2.5x 1.9x 2.4x 2.2x 2.6x 2.4x 2.8x During the quarter, GAAP net loss of $54.3 million, or $0.39 per share; distributable loss of $75.2 million, or $0.52 per share; and distributable loss prior to realized losses of $7.5 million, or $0.05 per share 1, 14 See Endnotes in the Appendix. Totals may not foot due to rounding.
Appendix A The properties above are not representative of all transactions.
CMTG Watchlist Loan Summary as of March 31, 2026 ($ amounts in millions, except loan basis) Loan 3, 12 Carrying Value 4 Unpaid Principal Balance Loan Commitment 13 Origination Date Property Type Location Loan Basis (Commitment/CV) A Risk Rating Loan 1 300.0 402.3 405.0 12/16/2021 Multifamily CA $1,204,819 / Unit 5 Loan 2 190.8 225.7 319.9 9/26/2019 Office GA $172 / SF 5 Loan 6 98.0 170.0 170.0 1/14/2022 Multifamily CO $215,385 / Unit 5 Loan 7 120.1 157.6 157.6 1/9/2018 Land VA $140 / SF 5 Loan 9 90.0 139.2 151.7 4/26/2022 Multifamily TX $86,789 / Unit 5 Loan 16 87.9 111.5 123.9 2/13/2020 Office CA $421 / SF 5 Loan 24 39.2 66.6 80.0 8/27/2021 Office GA $112 / SF 5 Loan 27 B 22.4 25.4 28.5 2/17/2022 Multifamily TX $96,552 / Unit 5 Loan 28 1.6 1.6 1.6 7/1/2019 Other Other n/a 5 Loan 8 155.0 155.0 160.0 9/8/2022 Multifamily AZ $484,848 / Unit 4 Loan 11 126.5 126.5 126.5 6/17/2022 Multifamily TX $135,294 / Unit 4 Loan 19 91.1 91.5 93.3 8/2/2021 Office CA $279 / SF 4 Loan 21 78.5 78.5 115.3 8/1/2022 Hospitality NY $341,197 / Key 4 Watchlist Loans A. For risk rated 5 loans, based on carrying value net of specific CECL reserves. For risk rated 4 loans, based on whole loan commitment value. B. Loan resolved after quarter-end. See pages 2 and 7 for further detail. Loan resolved after quarter-end
Portfolio Details CMTG Portfolio Details by Unpaid Principal Balance as of March 31, 2026 ($ amounts in millions) Loan 3, 12 Carrying Value 4 Unpaid Principal Balance Loan Commitment 13 Origination Date Property Type Location Loan Type Construction Risk Rating Loan 1 300.0 402.3 405.0 12/16/2021 Multifamily CA Senior - 5 Loan 2 190.8 225.7 319.9 9/26/2019 Office GA Senior - 5 Loan 3 224.5 225.1 224.8 6/30/2022 Hospitality CA Senior - 3 Loan 4 220.4 219.0 219.0 7/12/2018 Hospitality NY Senior - 3 Loan 5 179.8 179.8 187.5 4/14/2022 Multifamily MI Senior - 3 Loan 6 98.0 170.0 170.0 1/14/2022 Multifamily CO Senior - 5 Loan 7 120.1 157.6 157.6 1/9/2018 Land VA Senior - 5 Loan 8 155.0 155.0 160.0 9/8/2022 Multifamily AZ Senior - 4 Loan 9 90.0 139.2 151.7 4/26/2022 Multifamily TX Senior - 5 Loan 10 129.8 130.0 130.0 12/10/2021 Multifamily VA Senior - 2 Loan 11 126.5 126.5 126.5 6/17/2022 Multifamily TX Senior - 4 Loan 12 125.0 125.0 125.0 12/9/2021 Office IL Subordinate - 3 Loan 13 118.0 118.1 124.2 11/4/2022 Mixed-use MA Senior Y 3 Loan 14 115.0 115.5 117.3 4/29/2019 Mixed-use NY Senior - 3 Loan 15 113.8 113.5 113.5 7/20/2021 Multifamily IL Senior - 3 Loan 16 87.9 111.5 123.9 2/13/2020 Office CA Senior - 5 Loan 17 109.5 109.6 109.6 12/21/2022 Multifamily WA Senior - 3 Loan 18 101.8 102.4 104.5 7/30/2024 Retail NJ Senior - 3 Loan 19 91.1 91.5 93.3 8/2/2021 Office CA Senior - 4 Loan 20 86.0 86.0 86.0 12/15/2021 Mixed-use TN Senior - 3
Portfolio Details CMTG Portfolio Details by Unpaid Principal Balance as of March 31, 2026 ($ amounts in millions) Loan 3, 12 Carrying Value 4 Unpaid Principal Balance Loan Commitment 13 Origination Date Property Type Location Loan Type Construction Risk Rating Loan 21 A 78.5 78.5 115.3 8/1/2022 Hospitality NY Senior Y 4 Loan 22 75.6 75.6 75.6 7/27/2022 Multifamily UT Senior - 3 Loan 23 68.6 68.7 73.7 1/19/2022 Hospitality TN Senior - 3 Loan 24 39.2 66.6 80.0 8/27/2021 Office GA Senior - 5 Loan 25 50.0 50.0 50.0 4/5/2019 Retail NY Senior - 3 Loan 26 36.3 36.3 36.3 4/5/2019 Other Other Senior - 3 Loan 27 B 22.4 25.4 28.5 2/17/2022 Multifamily TX Senior - 5 Loan 28 1.6 1.6 1.6 7/1/2019 Other Other Senior - 5 Total / Wtd. Avg. 3, 12 $3,155.2 $3,506.0 $3,710.3 6% 5 Investment in unconsolidated joint venture A $42.2 Real Estate Owned, net – Hotel Portfolio 8 319.5 Real Estate Owned, net – Mixed-use 8 80.3 Real Estate Owned, net - Multifamily 8 286.1 Real Estate Owned, net – Land Parcel 94.3 Non-Loan Investment Total $822.4 Portfolio Total $3,977.6 See Endnotes in the Appendix. Totals may not foot due to rounding. A. Comprised of loans secured by the same property. B. Loan resolved after quarter-end. See pages 2 and 7 for further detail.
Consolidated Balance Sheets As of March 31, 2026 and December 31, 2025 ($ amounts in thousands) March 31, 2026 December 31, 2025 Assets Cash and cash equivalents $ 116,782 $ 173,186 Restricted cash 13,662 17,599 Loans receivable held-for-investment 3,504,010 4,054,152 Less: current expected credit loss reserve (396,433) (438,751) Loans receivable held-for-investment, net 3,107,577 3,615,401 Equity method investment 42,158 42,196 Real estate owned held-for-investment, net 764,763 730,005 Other assets 119,456 143,372 Total assets $ 4,164,398 $ 4,721,759 Liabilities and Equity Repurchase agreements $ 1,593,114 $ 1,857,614 Term participation facility 339,160 329,452 Notes payable, net - 177,522 Secured term loan, net 465,577 549,447 Debt related to real estate owned hotel portfolio, net 231,699 230,992 Other liabilities 34,653 37,063 Management fee payable - affiliate 7,347 7,774 Total liabilities 2,671,550 3,189,864 Equity Common stock 1,402 1,402 Additional paid-in capital 2,768,131 2,752,884 Accumulated deficit (1,276,685) (1,222,391) Total equity 1,492,848 1,531,895 Total liabilities and equity $ 4,164,398 $ 4,721,759
Consolidated Statements of Operations For the Three Months Ended March 31, 2026 and December 31, 2025 Three Months Ended Three Months Ended ($ amounts in thousands, except share and per share data) March 31, 2026 December 31, 2025 Revenue Interest and related income $ 58,999 $ 74,427 Less: interest and related expense 50,894 61,929 Net interest income 8,105 12,498 Revenue from real estate owned 21,414 34,249 Total net revenue 29,519 46,747 Expenses Management fees - affiliate 7,347 7,774 General and administrative expenses 3,212 5,869 Stock-based compensation expense 2,317 2,242 Real Estate Owned: Operating expenses 18,054 21,375 Interest expense 9,176 9,026 Depreciation and amortization 6,399 5,731 Total expenses 46,505 52,017 Loss on partial sales of real estate owned - (1,382) Loss from equity method investment (38) (31) Loss on extinguishment of debt (5,898) (847) Provision for current expected credit loss reserve (31,372) (211,681) Net loss $ (54,294) $ (219,211) Net loss per share of common stock: Basic and diluted $ (0.39) $ (1.56) Weighted-average shares of common stock outstanding: Basic and diluted 140,456,493 140,439,492
Distributable Loss Reconciliation Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025 2025 ($ amounts in thousands, except share and per share data) Net loss $ (54,294) $ (219,211) $ (9,528) $ (181,707) $ (78,623) $ (489,069) Adjustments: Non-cash stock-based compensation expense 2,317 2,242 2,061 4,762 5,074 14,139 Provision for current expected credit loss reserve 31,372 211,681 24,234 189,489 41,123 466,527 Depreciation and amortization expense 6,399 5,731 3,740 845 438 10,754 Amortization of above and below market lease values, net 258 258 258 334 354 1,204 Amortization of discount on secured term loan 569 - - - - - Unrealized loss on interest rate cap - - 71 - - 71 Loss on extinguishment of debt 5,898 847 - - 547 1,394 Valuation adjustment for loan receivable held-for-sale - - - (827) 42,594 41,767 Valuation adjustment for real estate owned held-for-sale - - (12,980) 313 49 (12,618) Loss (gain) on partial sale of real estate owned - 1,382 (2,006) 1,640 - 1,016 Distributable (Loss) Earnings prior to realized gains and losses (7,481) 2,930 5,850 14,849 11,556 35,185 Loss on extinguishment of debt (5,898) (847) - - (547) (1,394) Principal charge-offs A (61,861) (102,222) (42,325) (120,817) (46,653) (312,017) Valuation adjustment for real estate owned held-for-sale - - 12,980 (313) (49) 12,618 (Loss) gain on partial sale of real estate owned - (1,382) 2,006 (1,640) - (1,016) Previously recognized depreciation and amortization on partial real estate owned sold B - (142) (58) (2,140) - (2,340) Distributable Loss $ (75,240) $ (101,663) $ (21,547) $ (110,061) $ (35,693) $ (268,964) Weighted average diluted shares - Distributable Loss 143,460,120 142,956,410 143,082,634 142,922,632 142,192,694 142,791,490 Diluted Distributable (Loss) Earnings per share prior to realized gains and losses $ (0.05) $ 0.02 $ 0.04 $ 0.10 $ 0.08 $ 0.24 Diluted Distributable Loss per share $ (0.52) $ (0.71) $ (0.15) $ (0.77) $ (0.25) $ (1.88) Reconciliation of GAAP Net Loss to Distributable Loss Totals may not foot or cross-foot due to rounding. Refer to page 22 for definition of Distributable Earnings (Loss). A. For the three months ended March 31, 2026, amount includes a $12.9 million charge-off of accrued interest receivable and a $0.3 million charge-off of an exit fee related to the sale of a hospitality loan in March 2026. For the three months ended December 31, 2025, amount includes a $16.9 million charge-off of accrued interest receivable related to the foreclosure on a land parcel in December 2025 and the mortgage foreclosure of a multifamily property in January 2026. For the three months ended June 30, 2025, amount includes a $2.9 million charge-off of accrued interest receivable related to the mortgage foreclosures on multifamily properties in July 2025. For the three months ended March 31, 2025, amount includes a $3.5 million charge-off of accrued interest receivable and a $0.5 million charge-off of an exit fee related to the discounted payoff of a land loan. B. Reflects previously recognized depreciation and amortization on the portions of our mixed-use real estate owned asset that were sold during the year ended December 31, 2025. Amounts not previously recognized in Distributable Earnings (Loss).
Book Value per share Reconciliation March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 ($ amounts in thousands, except for per share data) Total Equity $ 1,492,848 $ 1,531,895 $ 1,748,811 $ 1,757,030 Number of shares of common stock outstanding and RSUs A 144,487,311 143,285,119 142,933,527 143,188,717 Book Value per share $ 10.33 $ 10.69 $ 12.24 $ 12.27 Add back: accumulated depreciation and amortization on real estate owned and related lease intangibles 0.15 0.10 0.06 0.03 Add back: general CECL reserve 0.35 0.54 0.98 0.97 Adjusted Book Value per share 14 $ 10.83 $ 11.33 $ 13.28 $ 13.27 Net Debt-to-Equity and Total Leverage Reconciliation March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 ($ amounts in thousands) Asset specific debt $ 2,163,973 $ 2,595,580 $ 2,938,222 $ 3,311,106 Secured term loan, net 465,577 549,447 707,678 708,378 Total debt 2,692,550 3,145,027 3,645,900 4,019,484 Less: cash and cash equivalents (116,782) (173,186) (339,518) (209,204) Net Debt $ 2,512,768 $ 2,971,841 $ 3,306,382 $ 3,810,280 Total Equity $ 1,492,848 $ 1,531,895 $ 1,748,811 $ 1,757,030 Net Debt-to-Equity Ratio 10, 14 1.7x 1.9x 1.9x 2.2x Non-consolidated senior loans $ 830,000 $ 830,000 $ 830,000 $ 830,000 Total Leverage $ 3,342,768 $ 3,801,841 $ 4,136,382 $ 4,640,280 Total Leverage Ratio 11, 14 2.2x 2.5x 2.4x 2.6x Adjusted Book Value per share, Net Debt-to-Equity and Total Leverage Calculations See Endnotes in the Appendix. A. As of March 31, 2026, amount excludes 7,542,227 warrants outstanding as the exercise price of $4.00 per share exceeded the closing share price of our common stock.
Important Notices The information herein generally speaks as of the date hereof or such earlier date referred to on specific pages herein. In furnishing this document, Claros Mortgage Trust, Inc. and its consolidated subsidiaries (the “Company” or “CMTG”) do not undertake to update the information herein. No legal commitment or obligation shall arise by the provision of this presentation. All financial information is provided for general reference purposes only and is superseded by, and is qualified in its entirety by reference to, CMTG’s financial statements. No Offer or Solicitation This document does not constitute (i) an offer to sell or a solicitation of an offer to purchase any securities in CMTG, (ii) a means by which any other investment may be offered or sold or (iii) advice or an expression of our view as to whether an investment in CMTG is suitable for any person. Portfolio Metrics; Basis of Accounting The performance information set forth in this document has generally been prepared on the basis of generally accepted accounting principles in the United States (U.S. GAAP). The basis on which CMTG’s operating metrics are presented in this document may vary from other reports or documents that CMTG prepares from time to time for internal or external use. Net Debt / Equity Ratio, Total Leverage Ratio, and Distributable Earnings (Loss) Net Debt / Equity Ratio, Total Leverage Ratio, and Distributable Earnings (Loss) are non-GAAP measures used to evaluate the Company’s performance excluding the effects of certain transactions, non-cash items and GAAP adjustments, as determined by our Manager. Net Debt / Equity Ratio is a non-GAAP measure, which the Company defines as the ratio of asset-specific debt and Secured Term Loan, less cash and cash equivalents, to total equity. Total Leverage Ratio is a non-GAAP measure, which the Company defines as the ratio of asset-specific debt and Secured Term Loan, plus non-consolidated senior interests held by third parties, less cash and cash equivalents, to total equity. 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 held-for-investment 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 the Company’s Manager, should not be included in Distributable Earnings (Loss). Furthermore, the Company presents Distributable Earnings (Loss) prior to realized gains and losses, which such gains and losses include charge-offs of principal, accrued interest receivable, and/or exit fees, as the Company believes this more easily allows the Board, Manager, and investors to compare the Company’s 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, the Company uses Core Earnings, which is substantially the same as Distributable Earnings (Loss) excluding incentive fees, to determine the incentive fees the Company pays our Manager. The Company believes that Distributable Earnings (Loss) and Distributable Earnings (Loss) prior to realized gains and losses provide meaningful information to consider in addition to net income (loss) and cash flows from operating activities in accordance with GAAP. Distributable Earnings (Loss) and Distributable Earnings (Loss) 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 cash flows from operating activities, a measure of liquidity or an indication of funds available for 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 (Loss) prior to realized gains and losses may not be comparable to the Distributable Earnings (Loss) and Distributable Earnings (Loss) 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 (Loss) 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 (loss) prior to realized gains and losses are key factors, among others, considered by the Company’s Board in determining the dividend each quarter and as such the Company believes Distributable Earnings (Loss) and Distributable Earnings (Loss) 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, charge-offs of principal, accrued interest receivable, and/or exit fees 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, when we acquire title in the case of foreclosure, deed-in-lieu of foreclosure, or assignment-in-lieu of foreclosure, or when the loan is sold or anticipated to be sold for an amount less than its carrying value), or (ii) with respect to any amount due under any loan, when such amount is determined to be uncollectible. In determining Distributable Earnings (Loss) per share and Distributable Earnings per share prior to realized gains and losses, the dilutive effects of unvested RSUs and warrants outstanding are considered. The weighted average diluted shares outstanding used for Distributable Earnings (Loss) and Distributable Earnings per share prior to realized gains and losses have been adjusted from weighted average diluted shares under GAAP to include weighted average unvested RSUs and warrants outstanding, if the exercise price of the warrants outstanding exceeds the average share price of our common stock during such period.
Important Notices (cont’d) Adjusted Book Value Per Share Adjusted Book Value per Share is a non-GAAP financial measure. We believe that presenting book value per share adjusted for our general current expected credit loss reserve and accumulated depreciation and amortization on our real estate owned held-for-investment is useful for investors as it enhances the comparability to our peers who may not hold real estate investments. Further, we believe that our investors and lenders consider book value excluding these items as an important metric related to our overall capitalization. Determinations of Loan-to-Value / Loan-to-Cost Adjusted LTV represents “loan-to-value” or “loan-to-cost” upon origination and updated only in connection with a partial loan paydown and/or release of collateral, material changes to expected project costs, the receipt of a new appraisal (typically in connection with financing or refinancing activity) or a change in our loan commitment. LTV determined upon origination is calculated as our total loan commitment upon origination, as if fully funded, plus any financings that are pari passu with or senior to our loan, divided by our estimate of either (1) the value of the underlying real estate, determined in accordance with our underwriting process (typically consistent with, if not less than, the value set forth in a third-party appraisal) or (2) the borrower’s projected, fully funded cost basis in the asset, in each case as we deem appropriate for the relevant loan and other loans with similar characteristics. Adjusted LTV, origination LTV, underwritten values, and/or project costs should not be assumed to reflect our judgment of current market values or project costs, which may have changed materially since the date of the most recent determination of LTV. Weighted average adjusted LTV is based on loan commitment, including non-consolidated senior interests and pari passu interests, and includes risk rated 5 loans. Loans with specific CECL reserves are reflected as 100% LTV.
Important Notices (cont’d) Forward-Looking Statements This document and oral statements made in connection therewith contain forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements express CMTG’s views regarding future plans and expectations. They include statements that include words such as “may,” “could,” “would,” “should,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “plan,” “intend” and similar words or expressions. Forward-looking statements in this presentation include, but are not limited to, statements regarding future operations, business strategy, cash flows, income, costs, expenses, liabilities and profits of CMTG. These statements are based on numerous assumptions and are subject to risks, uncertainties or change in circumstances that are difficult to predict or quantify. Actual future results may vary materially from those expressed or implied in these forward-looking statements, and CMTG’s business, financial condition, liquidity, results of operations and prospects could be materially and adversely affected by numerous factors, including such known and unknown risks and uncertainties. As a result, forward-looking statements should be understood to be only predictions and statements of our current beliefs, and are not guarantees of performance. Statements regarding the following subjects, among others, may be forward-looking: our business and investment strategy; changes in interest rates and their impact on our borrowers and on the availability and cost of our financing; our projected operating results; defaults by borrowers in paying debt service on outstanding loans; anticipated timing, amount, and pace of resolutions of our investments; the timing of cash flows, if any, from our investments; our ability to maintain levels of liquidity that meet or exceed our liquidity needs; the state of and uncertainty surrounding the U.S. and global economy generally or in specific geographic regions; reduced demand for office, multifamily or retail space, including as a result of the increase in remote and/or hybrid work trends which allow work from remote locations other than the employer’s office premises; governmental actions and initiatives and changes to government regulations and policies, including changes in monetary policy; the amount of commercial mortgage loans requiring refinancing; our ability to obtain and maintain financing arrangements on attractive terms, or at all; our ability to maintain compliance with covenants under our financing arrangements; current and prospective financing costs and advance rates for our existing and target assets; our expected leverage; general volatility of the capital markets and the markets in which we may invest and in which our borrowers; the state of the regional, national, and global banking systems; the return on or impact of current and future investments, including our loan portfolio and real estate owned assets; allocation of investment opportunities to us by our Manager and our Sponsor; changes in the markets in which we and our borrowers operate and the impacts thereof; changes in the market value of our investments and collateral underlying our investments; The effects of hedging instruments on our existing and target assets; rates of default, decreased recovery rates, and/or increased loss severity rates on our existing and target assets and related impairment charges, including as these relate to our real estate owned assets; the degree to which our hedging strategies may or may not protect us from interest rate volatility; changes in governmental regulations, tax laws and rates, and similar matters (including the interpretation thereof); our ability to maintain our qualification as a real estate investment trust; our ability to maintain our exclusion from registration under the Investment Company Act of 1940, as amended; the availability and attractiveness of investment opportunities we are able to originate in our target assets; the ability of our Manager to locate suitable investments for us, monitor, service and administer our investments and execute our investment strategy; the availability of qualified personnel from our Sponsor and its affiliates, including our Manager; estimates relating to our ability to pay or resume paying dividends to our stockholders in the future; our understanding of our competition; impact of increased competition on projected returns; the risk of securities class action litigation or stockholder activism; geopolitical or economic conditions or uncertainty, which may include military conflicts and activities (including the military conflicts between Russia and Ukraine, Israel and Hamas, and elsewhere throughout the Middle East, North Africa, and South America more broadly), tensions involving Russia, China, and Iran, political instability, social unrest, civil disturbances, terrorism, natural disasters and pandemics; and market trends in our industry, interest rates, real estate values, the debt markets generally, the CRE debt market or the general economy. The forward-looking statements are based on CMTG’s beliefs, assumptions and expectations of CMTG’s future performance, taking into account all information currently available. You should not place undue reliance on these forward-looking statements. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known to CMTG. If a change occurs, CMTG’s business, financial condition, liquidity, results of operations and prospects may vary materially from those expressed in any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for CMTG to predict those events or how they may affect CMTG. Except as required by law, CMTG is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Endnotes Refer to page 20 for a reconciliation of net income (loss) to distributable earnings (loss) and distributable earnings (loss) prior to realized gains and losses. Refer to page 2 for further discussion of loan resolution activity. Amount based on unpaid principal balance prior to principal charge-offs, if any. Excludes our real estate owned (REO) assets, unless otherwise noted. Based on carrying value net of specific CECL reserves; excludes loans held-for-sale if applicable. Based on total loan commitments. Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans (if any), and pari passu participations in senior mortgage loans. Total liquidity includes cash and approved and undrawn credit capacity based on existing collateral. Carrying value includes lease related intangible assets and liabilities, if applicable, included in other assets and other liabilities on the consolidated balance sheets, and is net of related accumulated depreciation and amortization. At March 31, 2026, we had unfunded loan commitments of $204 million and $91 million of in-place financings to fund our remaining unfunded loan commitments, excluding $15 million of approved and undrawn credit capacity based on existing collateral. Of our unfunded loan commitments, conditions to funding may not be met by our borrowers and portions of our unfunded loan commitments may not become eligible to be or expected to be drawn on (relating to loans on non-accrual status, loans in maturity default, loans risk rated 5 and/or delinquent loans) resulting in net unfunded loan commitments of $5 million. Net Debt / Equity Ratio is a non-GAAP measure and is calculated as the ratio of asset-specific debt and Secured Term Loan, less cash and cash equivalents, to total equity. Refer to page 21 for a reconciliation of Net Debt / Equity Ratio. For further information, please refer to Item 7 (MD&A) of our Form 10-Ks and/or Item 2 (MD&A) of our Form 10-Qs. Total Leverage Ratio is a non-GAAP measure and is calculated as the ratio of asset-specific debt and Secured Term Loan, plus non-consolidated senior interests held by third parties, less cash and cash equivalents, to total equity. Refer to page 21 for a reconciliation of Total Leverage Ratio. For further information, please refer to Item 7 (MD&A) of our Form 10-Ks and/or Item 2 (MD&A) of our Form 10-Qs. Excludes loans receivable held-for-sale, if any. Loan commitment represents principal outstanding plus remaining unfunded loan commitments. See Important Notices beginning on page 22 for additional information on this metric. All-in yield represents the weighted average annualized yield to initial maturity of each loan held-for-investment, inclusive of coupon and contractual fees, based on the applicable floating benchmark rate/floors (if applicable), in place as of March 31, 2026. For loans placed on non-accrual, the annualized yield to initial maturity used in calculating the weighted average annualized yield to initial maturity is 0%. At March 31, 2026, mixed-use consists of 3% office, 2% life science, 2% hospitality, 2% multifamily, and 1% retail. Mixed-use allocations are based upon allocable square footage except where another method is deemed more appropriate under the applicable facts and circumstances. Reflects loan for which no specific reserve is recorded as amounts deemed uncollectible have been charged-off as of March 31, 2026. Weighted average spread excludes SOFR floors and is based upon unpaid principal balance. See page 12 and 21 for book value bridge. Includes CECL reserves on unfunded loan commitments. Such reserves are included within other liabilities on the consolidated balance sheet.