Claros Mortgage Trust posts $14.3M Q3 2026 loss
Post-quarter resolutions and $268.7 million of deleveraging left pro forma net debt-to-equity at 1.5x; two loan sales carry $10.4 million of expected combined losses if completed.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Claros Mortgage Trust, Inc. (CMTG) reported a GAAP net loss of $14.3 million, or $0.10 per share, for the quarter ended September 30, 2026. Distributable loss, a non-GAAP measure, was $12.1 million, or $0.08 per share; distributable loss before realized gains and losses was $7.9 million, or $0.05 per share. Total net revenue was $32.639 million, versus $29.713 million in Q2 2026.
CMTG resolved four loans totaling $409.5 million of UPB and received $8.0 million of partial repayments. At September 30, its held-for-investment loan portfolio was $2.5 billion; watchlist loans had $1.1 billion of carrying value across 11 loans, and CECL reserves were $566.2 million on UPB (18.5%). Net debt-to-equity was 1.7x. Book value was $8.49 per share, down from $10.69 at December 31, 2025.
After quarter-end, CMTG received two full loan repayments totaling $268.7 million of UPB. October agreements for two risk rated 5 loans became binding with nonrefundable deposits; combined gross proceeds are $310.7 million, or 97% of current combined carrying values, and $10.4 million of combined incremental losses are expected upon Q4 2026 closings if completed. A separate agreement to sell two REO hotels for $44.5 million, a slight premium to current allocated carrying value, is expected to close by Q1 2027.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointTotal net revenue rose to $32.639 million from $29.713 million in Q2 2026.
Negative
- Moderate pointBook value fell to $8.49 per share from $10.69 at December 31, 2025.
Filing Explained
The reported twelve point one million dollar distributable loss is not a measure of cash flow or available liquidity.
After quarter-end, CMTG received two full loan repayments totaling
The release defines Distributable Loss as a non-GAAP measure excluding specified items; it says the measure is not GAAP net loss, operating cash flow, a liquidity measure, or an indication of funds available for cash needs.
8-K Event Classification
Key Figures
Key Terms
Distributable Loss financial
UPB financial
current expected credit loss reserve financial
risk rated 5 financial
Net Debt-to-Equity Ratio financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were CMTG's Q3 2026 financial results?
What losses are expected from CMTG's October loan sale agreements?
How much liquidity did CMTG report at November 2, 2026?
When are CMTG's hotel sales expected to close?
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 November 3, 2026, Claros Mortgage Trust, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 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 September 30, 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 Exhibits 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 November 3, 2026 |
99.2 |
Third Quarter 2026 Supplemental Financial Report |
104 |
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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Date: |
November 3, 2026 |
By: |
/s/ J. Michael McGillis |
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J. Michael McGillis |
Claros Mortgage Trust, Inc.
Reports Third Quarter 2026 Results
New York, NY, November 3, 2026 – Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today reported its financial results for the quarter ended September 30, 2026. The Company reported GAAP net loss of $14.3 million, or $0.10 per share, for the quarter ended September 30, 2026. Distributable Loss (a non-GAAP financial measure defined below) was $12.1 million, or $0.08 per share, and Distributable Loss prior to realized gains and losses was $7.9 million, or $0.05 per share, for the quarter ended September 30, 2026.
Third Quarter 2026 Highlights
At September 30, 2026
Subsequent Events
“Over the past seven quarters, our team has focused on executing our strategic priorities of resolving and liquidating watchlist loans, repositioning our REO assets for disposition, and deleveraging the balance sheet,” said Richard Mack, Chief Executive Officer and Chairman of CMTG. “The actions we have already taken and the progress we have made better position CMTG to face the most recent rate moves, and we remain steadfast in completing the work ahead.”
(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 September 30, 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%. As of September 30, 2026, the weighted average spread for accrual and non-accrual floating rate loans was 5.5% and 3.6%, respectively.
Teleconference Details
A conference call to discuss CMTG’s financial results will be held on Wednesday, November 4, 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 913309270.
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/913309270, 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). For both the Company’s entire portfolio and its real estate owned assets, the Company presents Distributable Earnings (Loss) prior to realized gains and losses, which such gains and losses include, as applicable, (i) charge-offs and recoveries of principal, accrued interest receivable, and/or exit fees and (ii) gains, losses, and components thereof recognized in connection with real estate owned assets, 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, exit fees, and gains, losses, and components thereof in connection with real estate owned assets are recognized through Distributable Earnings (Loss) when deemed non-recoverable and/or recognized. 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 of the warrants exceeds the average share price of our common stock during such period.
Net Debt-to-Equity Ratio and Total Leverage Ratio:
Net Debt-to-Equity Ratio and Total Leverage Ratio are non-GAAP measures that we use to evaluate our financial leverage, which in the case of our Total Leverage Ratio, makes certain adjustments that we believe provide a more conservative measure of our financial condition.
Net Debt-to-Equity Ratio is calculated as the ratio of asset-specific debt (i.e., repurchase agreements, term participation facility, notes payable, net, and debt related to real estate owned hotel portfolio, net) and secured term loan, less cash and cash equivalents to total equity. Total Leverage Ratio is similar to Net Debt-to-Equity Ratio; however, it includes non-consolidated senior interests sold and non-consolidated senior interests held by third parties. Non-consolidated senior interests sold and non-consolidated senior interests held by third parties, as applicable, are secured by the same collateral as our loan and are structurally senior in repayment priority relative to our loan. We believe the inclusion of non-consolidated senior interests sold and non-consolidated senior interests held by third parties provides a meaningful measure of our financial leverage. Pro forma adjustments to September 30, 2026 ratios reflect $268.7 million of loan repayments subsequent to September 30, 2026 and the related decrease in financings.
Book Value per Share:
Book Value per share is calculated as (i) total equity divided by (ii) number of shares of common stock outstanding and RSUs at period end.
Contact Information
Investor Relations: |
Media Relations: |
Claros Mortgage Trust, Inc. |
Financial Profiles |
212-484-0050 |
Moira Conlon |
cmtgIR@mackregroup.com |
310-622-8220 |
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mconlon@finprofiles.com |
Claros Mortgage Trust, Inc.
Reconciliation of GAAP Net Loss to Distributable Loss
(Amounts in thousands, except share and per share data)
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Three Months Ended |
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Three Months Ended |
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September 30, 2026 |
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June 30, 2026 |
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Net loss: |
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$ |
(14,257 |
) |
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$ |
(255,431 |
) |
Adjustments: |
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Non-cash stock-based compensation expense |
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1,442 |
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1,489 |
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Provision for current expected credit loss reserve |
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387 |
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208,839 |
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Recovery of principal charge-offs |
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(733 |
) |
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(1,949) |
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Depreciation and amortization expense |
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4,453 |
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6,144 |
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Amortization of above and below market lease values, net |
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(38 |
) |
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257 |
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Amortization of discount on secured term loan |
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843 |
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843 |
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Valuation adjustment for real estate owned held-for-sale |
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4 |
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29,623 |
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Gain on sale of real estate owned |
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- |
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(341 |
) |
Distributable loss prior to realized gains and losses |
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$ |
(7,899 |
) |
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$ |
(10,526 |
) |
Principal charge-offs (1) |
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(4,884 |
) |
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(43,983 |
) |
Recovery of principal charge-offs |
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733 |
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1,949 |
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Valuation adjustment for real estate owned held-for-sale |
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(4 |
) |
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(29,623 |
) |
Gain on sale of real estate owned |
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- |
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341 |
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Previously recognized depreciation and amortization on real estate owned (2) |
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- |
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(1,346 |
) |
Previously recognized depreciation and amortization on real estate owned held-for-sale (3) |
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- |
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|
|
(7,636 |
) |
Distributable loss |
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$ |
(12,054 |
) |
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$ |
(90,824 |
) |
Weighted average diluted shares - Distributable loss |
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|
144,268,666 |
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144,355,385 |
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Diluted Distributable loss per share prior to realized gains and losses |
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$ |
(0.05 |
) |
|
$ |
(0.07 |
) |
Diluted Distributable loss per share |
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$ |
(0.08 |
) |
|
$ |
(0.63 |
) |
Claros Mortgage Trust, Inc.
Calculation of Net Debt-to-Equity Ratio and Total Leverage Ratio
(Amounts in thousands, except ratio data)
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September 30, 2026 |
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Asset specific debt |
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$ |
1,769,003 |
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Secured term loan, net |
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469,947 |
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Total debt |
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2,238,950 |
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Less: cash and cash equivalents |
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(133,764 |
) |
Net Debt |
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$ |
2,105,186 |
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Total Equity |
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$ |
1,225,186 |
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Net Debt-to-Equity Ratio (1) |
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1.7x |
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Non-consolidated senior loans |
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$ |
830,000 |
|
Total Leverage |
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$ |
2,935,186 |
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Total Leverage Ratio (1) |
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2.4x |
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Third Quarter 2026 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) November 3, 2026 The properties above are not representative of all transactions. The information provided herein is as of September 30, 2026, unless otherwise noted.
Financial GAAP net loss of $14.3 million, or $0.10 per share Distributable loss of $12.1 million, or $0.08 per share, and distributable loss prior to realized gains and losses of $7.9 million, or $0.05 per share 1, 13 Book value of $8.49 per share, net of $3.93 per share of CECL reserves on UPB 19 Loan and REO Portfolio 3, 4 $2.5 billion held-for-investment loan portfolio 4 Watchlist loans of $1.1 billion of carrying value (11 loans), down $547.2 million from year-end 2025 4 No loans added to the watchlist and no additional loans placed on non-accrual status during the quarter In October, agreements to sell two risk rated 5 loans for $310.7 million of combined gross proceeds, or 97% of current combined carrying values, each became binding with nonrefundable purchaser deposits; if completed, incremental combined losses of $10.4 million, or ~$0.07 per share, expected upon Q4 2026 closings CECL reserves of $566.2 million on UPB (18.5%) 19 Loan resolutions year-to-date of $1.3 billion of UPB 2, 3, including six full loan repayments of $732.5 million, and partial loan repayments of $33.4 million of UPB Resolved seven watchlist loans year-to-date totaling $646.8 million of UPB 2, 3; gross proceeds of 79% of UPB $700.7 million REO portfolio consisting of eight investments 8 In October, an agreement to sell two of the seven hotels in our REO hotel portfolio for $44.5 million of gross proceeds (a slight premium to current allocated carrying value) became binding with a nonrefundable purchaser deposit; closing expected by Q1 2027 Liquidity and Capitalization Total liquidity of $146.9 million at quarter-end, including $133.8 million of cash 7 At November 2, 2026, total liquidity of $142.7 million, including $136.8 million of cash 7 Unencumbered assets of $664.5 million, consisting of $517.1 million of loan UPB ($401.6 million of loan carrying value 4) and $147.4 million of REO carrying value 8; includes one loan that was fully deleveraged in October Financings outstanding decreased by $330.1 million, including $99.9 million of deleveraging payments Net debt-to-equity ratio of 1.7x; 1.5x after adjusting for fourth quarter loan resolutions and deleveraging of $268.7 million 9, 13 Total leverage ratio of 2.4x; 2.2x after adjusting for fourth quarter loan resolutions and deleveraging of $268.7 million 10, 13 Third Quarter 2026 Highlights See Endnotes in the Appendix.
Seven Quarters of Focused Execution See Endnotes in the Appendix. A. Watchlist loans include risk rated 4 and 5 loans. B. Cumulative unpaid principal balance resolved since January 1, 2025, prior to principal charge-offs; recovered UPB reflects unpaid principal balance resolved less principal charge-offs. C. Pro forma adjustments to September 30, 2026 metrics reflect loan resolutions and deleveraging totaling $268.7 million subsequent to September 30, 2026. D. Unpaid principal balance; December 31, 2024 includes loans classified as held-for-sale. Since January 1, 2025, CMTG has made meaningful progress in turning over the portfolio and strengthening and de-risking the balance sheet, with term loan financing extended through 2030 Of four loans downgraded to watchlist since January 1, 2025, three have been resolved at 86% of UPB Resolving Watchlist Loan UPB A, B Cumulative recovery of UPB Cumulative principal charge-offs ($ in billions) $0.5 $0.4 (72% of UPB) $0.1 $1.3 $1.0 (81% of UPB) $0.3 $1.8 $1.5 (81% of UPB) $0.3 $2.0 $1.6 (80% of UPB) $0.4 Execution Over Seven Quarters 12/31/24 9/30/26 11/2/26 Reduced Watchlist Loan Count A −13 24 loans 11 loans 11 loans C Reduced Watchlist Loan UPB A −$1.2Bn $2.8Bn $1.6Bn $1.6Bn C Turning Over the Loan Portfolio D −$3.7Bn $6.5Bn $3.1Bn $2.8Bn C Greater Liquidity +$41MM $102MM $147MM $143MM Reduced Indebtedness −$2.9Bn Including $973 million of deleveraging $4.9Bn $2.3Bn $2.0Bn C Reduced Net Debt-to-Equity Ratio −0.9x 2.4x 1.7x 1.5x C 80% Recovery of watchlist loan UPB B Pro Forma C
During the quarter, resolved four loans totaling $409.5 million of UPB 2 and received $8.0 million in partial loan repayments Two full loan repayments: $223.1 million of UPB One loan sale: $111.5 million of UPB 2; watchlist loan, recovery of 63% of UPB One discounted loan payoff: $74.9 million of UPB 2; watchlist loan, recovery of 94% of UPB Subsequent to quarter-end, received two full loan repayments totaling $268.7 million of UPB and $0.6 million in partial loan repayments Turning Over the Loan Portfolio $3.9 billion 2 80% recovery of watchlist loan UPB A See Endnotes in the Appendix. A. Watchlist loans include risk rated 4 and 5 loans. Loan Resolution and Partial Repayment Activity 2 ($ in unpaid principal balance prior to principal charge-offs) 2025 – 2026 YTD 2023 – 2026 YTD ($ in billions) Full Loan Repayments 40% Loan Sales at 100% of UPB 3% Partial Repayments 3% Discounted Loan Payoffs 22% Loan Sales below 100% of UPB 17% Foreclosures 13% Settlement with financing counterparty 2% $2.6 $1.3 Risk rated 2 and 3 loans Watchlist loans A $1.1 $1.4
Book Value per Share Composition Book Value per Share Composition A, B (September 30, 2026) $0.93 $4.04 $1.99 $4.10 $0.90 ($3.47) Total: $8.49 A, B $6.96 Book Value of Cash, Performing Loans, and REO $0.93 – Cash $4.04 – Twelve risk rated 2 and 3 loans $1.99 – Eight real estate owned investments $1.02: Represents two unencumbered REO investments $4.10 – Eleven risk rated 4 and 5 loans and one JV equity investment Carrying values on risk rated 4 and 5 loans are net of $3.64 per share of CECL reserves $2.52: Six risk rated 4 or 5 loans expected to have longer resolutions due to lender-driven value creation efforts ($0.49 unencumbered) $0.29: One JV equity investment in a non-accrual loan $0.90 – Other assets, net ($3.47) – Less: secured term loan principal $4.04 Book value attributable to risk rated 2 and 3 loans, net of allocated general CECL reserves of $0.29. Over seven quarters, only four loans have been downgraded to watchlist, three of which have been resolved at 86% of UPB. $6.09 Book value attributable to REO investments, watchlist loans, and JV equity investment. In price discovery process on $2.27 of book value ($1.03 unencumbered), including: Three REO investments ($0.98 of book value, $0.37 unencumbered) Five watchlist loans ($1.29 of book value, $0.66 unencumbered) Book value of $8.49 per share presented below reflects total GAAP equity attributed to components of our balance sheet, including our loans and REO investments A, B The various components of Book Value presented represent an attribution of total GAAP equity and are not an estimate of fair value or realizable value. See Important Notices beginning on page 21. A. Based on 144,245,923 shares of common stock outstanding and RSUs as of September 30, 2026. Excludes 7,542,227 warrants outstanding as the exercise price of $4.00 per share exceeds the closing price of our common stock. B. See page 17 for reconciliation of balance sheet to book value per share composition as of September 30, 2026.
Loan Portfolio Overview See Endnotes in the Appendix. A. At September 30, 2026 and June 30, 2026, approximates 1%. B. At September 30, 2026 and June 30, 2026, approximates 0% and 2%, respectively. Held-for-investment loan portfolio of $2.5 billion across 23 loans, 95% floating-rate and 95% senior 4, 6 Key Portfolio Metrics 3, 11 September 30, 2026 June 30, 2026 Total Loan Commitments 12 $3.2Bn $3.5Bn Loan UPB $3.1Bn $3.4Bn Loan Carrying Value 4 $2.5Bn $2.8Bn Loan Count 23 26 Weighted Average Risk Rating 4 3.8 3.8 Weighted Average Adjusted LTV 13 80.6% 80.3% Average Commitment Size $140MM $135MM Weighted Average Yield to Maturity 14 5.7% 5.8% Floating Rate Loans 4 95% 96% Senior Loans 4, 6 95% 96% Portfolio Diversification 3, 4, 11 Collateral Type Geography Multifamily Hospitality Office Mixed-use 15 Retail Land Other A CA NY VA / DC GA TX IL UT B Other
Third Quarter Loan Portfolio Activity See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding. A. Pro forma adjustments to September 30, 2026 UPB reflect resolutions of two loans receivable held-for-investment as of September 30, 2026 totaling $268.7 million of UPB. During the quarter, received $298.0 million of loan repayments 2, 11, including one watchlist loan, and $8.0 million of partial loan repayments; funded $4.5 million on existing loan commitments Sold one watchlist loan with $111.5 million of UPB, previously held-for-sale 2 Q3 2026 Held-for-Investment Loan Portfolio Activity 2, 11 ($ in millions) Loan UPB Unfunded loan commitments Fundings Repayments $3,357 UPB $3,055 UPB $2,786 UPB Total commitments: $3,532 Total commitments: $3,226 Total commitments: $2,952 $5 Net change in UPB: ($302) 2 A Principal charge-offs ($5)
($ in millions) Risk Rating Number of Loans UPB Carrying Value 4 Specific CECL Reserve Specific CECL Reserve (% of UPB) Multifamily (AZ / CA / CO / TX) 5 5 $996.2 $620.7 $374.8 37.6% Office (CA / GA) 5 3 387.8 286.5 100.5 25.9 Land (VA) 5 1 160.4 120.1 40.3 25.1 Other 16 5 1 1.5 1.5 - - Total Risk Rated 5 Loans 11 10 $1,545.9 $1,028.8 $515.6 33.4% Hospitality (NY) 4 1 78.5 78.5 Total Watchlist Loans 11 (At September 30, 2026) 11 $1,624.4 $1,107.3 Reduced Watchlist with Multiple Resolution Paths Risk rated 5 loans with a carrying value of $1.0 billion are net of specific CECL reserves of 33.4% of UPB, and are primarily secured by multifamily, office, and land properties Resolution paths include loan sales, discounted loan payoffs, and foreclosures, each executed on watchlist loans in 2025 and 2026 In October, agreements to sell a risk rated 5 multifamily loan and a risk rated 5 unencumbered office loan for $310.7 million of combined gross proceeds, or 97% of current combined carrying values, each became binding with nonrefundable purchaser deposits; if completed, incremental combined losses of $10.4 million expected upon Q4 2026 closings See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding.
Held-for-Investment Held-for-Sale Hotel Portfolio Land Parcel Multifamily 1 A Multifamily 2 A Multifamily 3 A Multifamily 4 A Multifamily 5 A Mixed-use Property Total Acquisition Date February 2021 December 2025 May 2025 June 2025 July 2025 January 2026 May 2026 June 2023 Location New York, NY New York, NY Phoenix, AZ Henderson, NV Dallas, TX Dallas, TX Dallas, TX New York, NY Carrying Value B, 8 $318.9 $94.3 $39.9 $73.4 $62.4 $36.4 $22.3 $53.1 $700.7 Units / Keys / SF 1,087 373,270 Buildable SF 206 376 316 650 232 31,000 SF (Retail Only) Asset Basis B $293,366 / Key $253 / Buildable SF $193,852 / Unit $195,341 / Unit $197,350 / Unit $55,936 / Unit $96,005 / Unit $1,714 / SF Debt Outstanding B $235.0 C – $32.6 A $62.7 A $36.4 A $32.7 A $14.2 A – $413.6 Net Equity B, D $83.9 $94.3 $7.3 $10.7 $26.0 $3.7 $8.1 $53.1 $287.1 Strategy Pursuing partial sale, evaluating monetization for remaining hotels Maximizing value for eventual sale Improve operating performance for eventual sale Improve operating performance for eventual sale Improve operating performance for eventual sale Evaluating monetization Improve operating performance for eventual sale Pursuing sale, classified as held-for-sale Repositioning REO for Disposition See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding. A. Assets are financed through a repurchase agreement and are cross-collateralized. B. Values as of September 30, 2026. For REO classified as held-for-sale, amounts reflect held-for-sale carrying values. C. Excludes $1.9 million of related deferred financing costs. D. Net equity represents carrying value less unpaid principal balance of debt outstanding attributed to each asset. Excluding assets classified as held-for-sale, amount is not an estimate of the proceeds the Company would realize upon disposition. During the quarter, sold one multifamily REO investment for gross proceeds of $22.5 million Total equity in REO investments held-for-investment and held-for-sale of $287.1 million, or $1.99 per share 8 Real Estate Owned ($ in millions, except units and asset basis)
Greater Liquidity and Reduced Leverage See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding. A. Net of $52.6 million of in-place financings and $115.4 million of commitments on loans where conditions to funding are not currently met. B. Includes one risk rated 5 loan receivable that was fully deleveraged in October 2026. The loan has $155.0 million of UPB and $100.9 million of carrying value, net of specific CECL reserves. C. Adjusted for loan resolutions and deleveraging of $268.7 million subsequent to September 30, 2026. Financings outstanding decreased by $330.1 million during the quarter, including $99.9 million of deleveraging payments, and by $268.7 million subsequent to quarter-end, including $131.5 million of deleveraging payments Weighted average financing spread of +3.74% 17: secured term loan +6.75%, hotel REO debt +3.18%, and repurchase agreements and term participation facility +2.85% $142.7MM Total Liquidity 7 At November 2, 2026, including $136.8 million of cash $664.5MM Unencumbered Assets B $517.1 million of loan UPB and $147.4 million of REO carrying value $3.0MM Net Unfunded Commitments A Minimal future funding needs where conditions to fund are met 2030 Secured Term Loan Matures January 2030 Q3 2026 Financing Activity ($ in millions) Secured term loan Hotel REO debt Term participation facility Repurchase agreements Repurchase agreements secured by multifamily REO $1 Leverage Ratios Net debt-to-equity Total leverage $12 C 12/31/24 12/31/25 9/30/26 Pro Forma C
Financial Overview and Book Value Roll-Forward See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding. A. General CECL reserve as a percentage of UPB of loans subject to the general reserve; specific CECL reserve as a percentage of UPB of risk rated 5 loans. Book value of $8.49 per share at September 30, 2026 is net of $3.58 per share of specific CECL reserves Key Metrics Q3 2026 ($ in millions, except per share data) Amount Per Share GAAP Net Loss $ (14.3 ) $ (0.10 ) Distributable Loss 1, 13 $ (12.1 ) $ (0.08 ) Distributable Loss Prior to Realized Gains and Losses 1, 13 $ (7.9 ) $ (0.05 ) Book Value $ 1,225.2 $ 8.49 Adjusted Per Share 13, 18 $ 9.00 General CECL Reserve 19 $ 50.6 $ 0.35 % of UPB A 3.4 % Specific CECL Reserve $ 515.6 $ 3.58 % of UPB A 33.4 % Net Debt-to-Equity Ratio 9, 13 1.7 x Total Leverage Ratio 10, 13 2.4 x Book Value per Share Roll-Forward 13 $10.69 ($0.17) ($2.13) $0.10 $8.49 $10.69 Book value per share $8.49 0.54 Add back: general CECL reserve 0.35 0.10 Add back: accumulated depreciation and amortization on REO 0.16 $11.33 Adjusted book value per share 13 $9.00
Appendix A The properties above are not representative of all transactions.
($ in millions, as of September 30, 2026) Region Exposure by Carrying Value and as a % of Total Carrying Value 3, 4, 11 Collateral Type Loan Count Carrying Value 4 % of Total Carrying Value West Northeast Southeast Midwest Mid Atlantic Southwest Other Multifamily 7 $927 36% $440 / 17% - - $177 / 7% $130 / 5% $181 / 7% - Hospitality 4 $573 23% $225 / 9% $280 / 11% $69 / 3% - - - - Office 4 $411 16% $71 / 3% - $215 / 8% $125 / 5% - - - Mixed-use 15 3 $322 13% - $236 / 9% $86 / 4% - - - - Retail 2 $152 6% - $152 / 6% - - - - - Land 1 $120 5% - - - - $120 / 5% - - Other 2 $33 1% - - - - - - $33 / 1% Total 3, 4, 11 23 $2,539 100% $736 / 29% $668 / 26% $370 / 15% $302 / 12% $250 / 10% $181 / 7% $33 / 1% Loan Portfolio Exposure by Region See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding.
CMTG Watchlist Held-for-Investment Loan Summary as of September 30, 2026 ($ in millions, except loan basis) Loan 3, 11 Carrying Value 4 Unpaid Principal Balance Loan Commitment 12 Origination Date Property Type Location Loan Basis (Commitment / CV) A Risk Rating Loan 1 $250.0 $402.3 $405.0 12/16/2021 Multifamily CA $1,004,016 / Unit 5 Loan 2 190.8 230.7 319.9 9/26/2019 Office GA $172 / SF 5 Loan 6 88.9 170.0 170.0 1/14/2022 Multifamily CO $195,385 / Unit 5 Loan 7 120.1 160.4 160.4 1/9/2018 Land VA $140 / SF 5 Loan 8 100.9 155.0 160.0 9/8/2022 Multifamily AZ $305,758 / Unit 5 Loan 9 90.0 142.3 151.7 4/26/2022 Multifamily TX $86,789 / Unit 5 Loan 11 90.9 126.5 126.5 6/17/2022 Multifamily TX $97,219 / Unit 5 Loan 16 71.1 90.4 92.2 8/2/2021 Office CA $212 / SF 5 Loan 20 24.6 66.6 80.0 8/27/2021 Office GA $70 / SF 5 Loan 23 1.5 1.5 1.5 7/1/2019 Other Other n/a 5 Loan 18 78.5 78.5 115.3 8/1/2022 Hospitality NY $341,197 / Key 4 Watchlist Loans See Endnotes in the Appendix. A. For risk rated 5 loans, based on carrying value net of specific CECL reserves. For risk rated 4 loans, based on whole loan commitment value. Loans with a nonrefundable purchaser deposit as of October 2026
Portfolio Details CMTG Portfolio Details by Unpaid Principal Balance as of September 30, 2026 ($ in millions) Loan 3, 11 Carrying Value 4 Unpaid Principal Balance Loan Commitment 12 Origination Date Property Type 20 Location Loan Type Construction 20 Risk Rating Loan 1 $250.0 $402.3 $405.0 12/16/2021 Multifamily CA Senior - 5 Loan 2 190.8 230.7 319.9 9/26/2019 Office GA Senior - 5 Loan 3 224.6 224.9 224.9 6/30/2022 Hospitality CA Senior - 3 Loan 4 201.4 200.0 200.0 7/12/2018 Hospitality NY Senior - 3 Loan 5 176.8 176.8 176.8 4/14/2022 Multifamily MI Senior - 3 Loan 6 88.9 170.0 170.0 1/14/2022 Multifamily CO Senior - 5 Loan 7 120.1 160.4 160.4 1/9/2018 Land VA Senior - 5 Loan 8 100.9 155.0 160.0 9/8/2022 Multifamily AZ Senior - 5 Loan 9 90.0 142.3 151.7 4/26/2022 Multifamily TX Senior - 5 Loan 10 129.9 130.0 130.0 12/10/2021 Multifamily VA Senior - 2 Loan 11 90.9 126.5 126.5 6/17/2022 Multifamily TX Senior - 5 Loan 12 125.0 125.0 125.0 12/9/2021 Office IL Subordinate - 3 Loan 13 120.7 120.1 124.2 11/4/2022 Mixed-use MA Senior Y 3 Loan 14 115.5 115.5 117.3 4/29/2019 Mixed-use NY Senior - 3 Loan 15 102.3 102.4 104.5 7/30/2024 Retail NJ Senior - 3 Loan 16 71.1 90.4 92.2 8/2/2021 Office CA Senior - 5 Loan 17 86.0 86.0 86.0 12/15/2021 Mixed-use TN Senior - 3 See Endnotes in the Appendix. Loan repaid in full after quarter-end
Portfolio Details (cont’d) CMTG Portfolio Details by Unpaid Principal Balance as of September 30, 2026 ($ in millions) Loan 3, 11 Carrying Value 4 Unpaid Principal Balance Loan Commitment 12 Origination Date Property Type 20 Location Loan Type Construction 20 Risk Rating Loan 18 A 78.5 78.5 115.3 8/1/2022 Hospitality NY Senior Y 4 Loan 19 68.6 68.7 73.7 1/19/2022 Hospitality TN Senior - 3 Loan 20 24.6 66.6 80.0 8/27/2021 Office GA Senior - 5 Loan 21 50.0 50.0 50.0 4/5/2019 Retail NY Senior - 3 Loan 22 31.3 31.3 31.3 4/5/2019 Other Other Senior - 3 Loan 23 1.5 1.5 1.5 7/1/2019 Other Other Senior - 5 Total / Wtd. Avg. 3, 11 $2,539.4 $3,055.2 $3,226.2 7% 5 Investment in unconsolidated joint venture A $42.1 Real Estate Owned, net – Hotel Portfolio 8 318.9 Real Estate Owned, net – Mixed-use 8 53.1 Real Estate Owned, net - Multifamily 8 234.4 Real Estate Owned, net – Land Parcel 94.3 Non-Loan Investment Total $742.8 Portfolio Total $3,282.2 See Endnotes in the Appendix. Totals may not foot or cross-foot due to rounding. A. Consisting of loans secured by the same property. Loan repaid in full after quarter-end
Consolidated Balance Sheets ($ in thousands) September 30, 2026 June 30, 2026 Assets Cash and cash equivalents $ 133,764 $ 90,327 Restricted cash 15,558 11,920 Loans receivable held-for-investment 3,055,051 3,355,833 Less: current expected credit loss reserve (564,428) (565,554) Loans receivable held-for-investment, net 2,490,623 2,790,279 Loans receivable held-for-sale - 69,854 Equity method investment 42,080 42,115 Real estate owned held-for-investment, net 646,740 647,348 Real estate owned held-for-sale 53,141 75,289 Other assets 113,941 108,226 Total assets $ 3,495,847 $ 3,835,358 Liabilities and Equity Repurchase agreements $ 1,323,921 $ 1,536,906 Term participation facility 211,968 329,113 Secured term loan, net 469,947 467,693 Debt related to real estate owned hotel portfolio, net 233,114 232,406 Other liabilities 24,888 24,181 Management fee payable - affiliate 6,823 7,077 Total liabilities 2,270,661 2,597,376 Equity Common stock 1,411 1,411 Additional paid-in capital 2,770,148 2,768,687 Accumulated deficit (1,546,373) (1,532,116) Total equity 1,225,186 1,237,982 Total liabilities and equity $ 3,495,847 $ 3,835,358
Reconciliation of Consolidated Balance Sheet to Book Value per Share Composition ($ in thousands, except per share data) Cash Risk Rated 2 & 3 Loans Real Estate Owned Risk Rated 4 & 5 Loans and Equity Investment Other Assets, net Subtotal Secured Term Loan Principal Total September 30, 2026 Assets Cash and cash equivalents $ 133,764 $ - $ - $ - $ - $ 133,764 $ - $ 133,764 Restricted cash - - - - 15,558 15,558 - 15,558 Loans receivable held-for-investment - 1,432,104 - 1,622,947 - 3,055,051 - 3,055,051 Less: current expected credit loss reserve - (41,825) A - (522,603) A - (564,428) - (564,428) Loans receivable held-for-investment, net - 1,390,279 - 1,100,344 - 2,490,623 - 2,490,623 Equity method investment - - - 42,080 - 42,080 - 42,080 Real estate owned held-for-investment, net - - 646,740 - - 646,740 - 646,740 Real estate owned held-for-sale - - 53,141 - - 53,141 - 53,141 Other assets - - 1,009 B - 112,932 113,941 - 113,941 Total assets $ 133,764 $ 1,390,279 $ 700,890 $ 1,142,424 $ 128,490 $ 3,495,847 $ - $ 3,495,847 Total assets per share D $ 0.93 $ 9.64 $ 4.86 $ 7.92 $ 0.89 $ 24.24 $ - $ 24.24 Liabilities Repurchase agreements $ - $ 644,595 $ 178,634 $ 500,692 $ - $ 1,323,921 $ - $ 1,323,921 Term participation facility - 163,482 - 48,486 - 211,968 - 211,968 Secured term loan, net - - - - (30,053) C (30,053) 500,000 C 469,947 Debt related to real estate owned hotel portfolio, net - - 235,000 C - (1,886) C 233,114 - 233,114 Other liabilities - 113 A 216 B 1,690 A 22,869 24,888 - 24,888 Management fee payable - affiliate - - - - 6,823 6,823 - 6,823 Total liabilities - 808,190 413,850 550,868 (2,247) 1,770,661 500,000 2,270,661 Total liabilities per share D $ - $ 5.60 $ 2.87 $ 3.82 $ (0.01) $ 12.28 $ 3.47 $ 15.75 Total equity / book value $ 133,764 $ 582,089 $ 287,040 $ 591,556 $ 130,737 $ 1,725,186 $ (500,000) $ 1,225,186 Book value per share D $ 0.93 $ 4.04 $ 1.99 $ 4.10 $ 0.90 $ 11.96 $ (3.47) $ 8.49 The various components of Book Value presented represent an attribution of total GAAP equity and are not an estimate of fair value or realizable value. See Important Notices beginning on page 21. A. Reflects an allocation of general CECL reserve on both funded and unfunded portions of risk rated 2, 3, and 4 loans. B. Reflects lease intangibles, net and deferred leasing costs, net related to real estate owned assets and included within other assets and other liabilities. C. Financing balance reflects unpaid principal balance. Related deferred financing costs, net, included within Other Assets, net. D. Based on 144,245,923 shares of common stock outstanding and RSUs as of September 30, 2026. Excludes 7,542,227 warrants outstanding as the exercise price of $4.00 per share exceeded the closing share price of our common stock. Per share amounts may not foot due to rounding.
Consolidated Statements of Operations Three Months Ended Three Months Ended ($ in thousands, except share and per share data) September 30, 2026 June 30, 2026 Revenue Interest and related income $ 41,536 $ 46,251 Less: interest and related expense 40,291 46,603 Net interest income (expense) 1,245 (352) Revenue from real estate owned 31,394 30,065 Total net revenue 32,639 29,713 Expenses Management fees - affiliate 6,822 7,077 General and administrative expenses 3,582 4,722 Stock-based compensation expense 1,442 1,489 Real estate owned: Operating expenses 22,216 20,550 Interest expense 8,688 8,947 Depreciation and amortization 4,453 6,144 Total expenses 47,203 48,929 Gain on sale of real estate owned - 341 Loss from equity method investment (35) (43) Loss on extinguishment of debt - - Valuation adjustment for real estate owned held-for-sale (4) (29,623) Provision for current expected credit loss reserve (387) (208,839) Recovery of principal charge-offs 733 1,949 Net loss $ (14,257) $ (255,431) Net loss per share of common stock: Basic and diluted $ (0.10) $ (1.81) Weighted-average shares of common stock outstanding: Basic and diluted 141,380,300 141,419,175
Distributable Loss Reconciliation Q3 2026 Q2 2026 Q1 2026 2026 YTD ($ in thousands, except share and per share data) Net loss $ (14,257) $ (255,431) $ (54,294) $ (323,982) Adjustments: Non-cash stock-based compensation expense 1,442 1,489 2,317 5,248 Provision for current expected credit loss reserve 387 208,839 31,372 240,598 Recovery of principal charge-offs (733) (1,949) - (2,682) Depreciation and amortization expense 4,453 6,144 6,399 16,996 Amortization of above and below market lease values, net (38) 257 258 477 Amortization of discount on secured term loan 843 843 569 2,255 Loss on extinguishment of debt - - 5,898 5,898 Valuation adjustment for real estate owned held-for-sale 4 29,623 - 29,627 Gain on sale of real estate owned - (341) - (341) Distributable Loss prior to realized gains and losses 13 (7,899) (10,526) (7,481) (25,906) Loss on extinguishment of debt - - (5,898) (5,898) Principal charge-offs A (4,884) (43,983) (61,861) (110,728) Recovery of principal charge-offs 733 1,949 - 2,682 Valuation adjustment for real estate owned held-for-sale (4) (29,623) - (29,627) Gain on sale of real estate owned - 341 - 341 Previously recognized depreciation and amortization on real estate owned B - (1,346) - (1,346) Previously recognized depreciation and amortization on real estate owned held-for-sale C - (7,636) - (7,636) Distributable Loss 13 $ (12,054) $ (90,824) $ (75,240) $ (178,118) Weighted average diluted shares - Distributable Loss 144,268,666 144,355,385 143,460,120 144,031,019 Diluted Distributable Loss per share prior to realized gains and losses $ (0.05) $ (0.07) $ (0.05) $ (0.17) Diluted Distributable Loss per share $ (0.08) $ (0.63) $ (0.52) $ (1.23) Reconciliation of GAAP Net Loss to Distributable Loss Totals may not foot or cross-foot due to rounding. Refer to page 21 for definition of Distributable Earnings (Loss). A. For the three months ended September 30, 2026, amount includes a $0.1 million charge-off of an exit fee related to the discounted payoff of a multifamily loan in July 2026. For the three months ended June 30, 2026, amount includes a $0.4 million charge-off of accrued interest receivable related to the mortgage foreclosure on a multifamily property in May 2026. For the three months ended March 31, 2026, amount includes a $12.9 million charge-off of accrued interest receivable and a $0.3 million charge-off of an exit fee related to the sale of a hospitality loan in March 2026. B. Reflects previously recognized depreciation and amortization on the multifamily real estate owned asset that was sold during the three months ended June 30, 2026. Amounts recorded were not previously recognized in Distributable Earnings (Loss). C. Reflects previously recognized depreciation and amortization on (i) the mixed-use real estate owned asset and (ii) one of the multifamily real estate owned assets upon reclassification of the respective assets to held-for-sale during the three months ended June 30, 2026. Amounts recorded were not previously recognized in Distributable Earnings (Loss).
Book Value per Share Reconciliation September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 December 31, 2024 ($ in thousands, except per share data) Total Equity $ 1,225,186 $ 1,237,982 $ 1,492,848 $ 1,531,895 $ 2,008,086 Number of shares of common stock outstanding and RSUs A 144,245,923 144,295,867 144,487,311 143,285,119 142,187,015 Book Value per Share B $ 8.49 $ 8.58 $ 10.33 $ 10.69 $ 14.12 Add back: accumulated depreciation and amortization on real estate owned held-for-investment and related lease intangibles 0.16 0.13 0.15 0.10 0.03 Add back: general CECL reserve 0.35 0.35 0.35 0.54 1.02 Adjusted Book Value per Share 13 $ 9.00 $ 9.06 $ 10.83 $ 11.33 $ 15.17 Net Debt-to-Equity Ratio and Total Leverage Ratio Reconciliation September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 December 31, 2024 ($ in thousands, except ratios) Asset specific debt $ 1,769,003 $ 2,098,425 $ 2,163,973 $ 2,595,580 $ 4,179,372 Secured term loan, net 469,947 467,693 465,577 549,447 709,777 Total debt 2,238,950 2,566,118 2,629,550 3,145,027 4,889,149 Less: cash and cash equivalents (133,764) (90,327) (116,782) (173,186) (99,075) Net Debt $ 2,105,186 $ 2,475,791 $ 2,512,768 $ 2,971,841 $ 4,790,074 Total Equity $ 1,225,186 $ 1,237,982 $ 1,492,848 $ 1,531,895 $ 2,008,086 Net Debt-to-Equity Ratio C, 9, 13 1.7x 2.0x 1.7x 1.9x 2.4x Non-consolidated senior loans $ 830,000 $ 830,000 $ 830,000 $ 830,000 $ 830,000 Total Leverage $ 2,935,186 $ 3,305,791 $ 3,342,768 $ 3,801,841 $ 5,620,074 Total Leverage Ratio C, 10, 13 2.4x 2.7x 2.2x 2.5x 2.8x Adjusted Book Value per Share, Net Debt-to-Equity and Total Leverage Calculations See Endnotes in the Appendix. A. As of September 30, 2026, June 30, 2026 and 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. B. Calculated as (i) total equity divided by (ii) number of shares of common stock outstanding and RSUs at period end. C. September 30, 2026 metrics adjusted for fourth quarter loan resolutions and deleveraging of $268.7 million, net debt-to-equity and total leverage ratios declined to 1.5x and 2.2x, respectively.
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-to-Equity Ratio, Total Leverage Ratio, and Distributable Earnings (Loss) Net Debt-to-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-to-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. Refer to page 20 for a reconciliation of Net Debt-to-Equity Ratio and 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. 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). For both the Company’s entire portfolio and its real estate owned assets, the Company presents Distributable Earnings (Loss) prior to realized gains and losses, which such gains and losses include, as applicable, (i) charge-offs and recoveries of principal, accrued interest receivable, and/or exit fees and (ii) gains, losses, and components thereof recognized in connection with real estate owned assets, 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 and/or recognized. 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 accumulated depreciation and amortization on our real estate owned held-for-investment and our general CECL reserve is useful for investors as it enhances the comparability to our peers who may not hold real estate investments and excludes the impact of our general CECL reserve, which may fluctuate from quarter-to-quarter as the composition and size of our loan portfolio varies. Further, we believe that our investors and lenders consider book value excluding these items as an important metric related to our overall capitalization. Refer to page 20 for a reconciliation of book value per share to adjusted book value per share. 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. 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. Book Value per Share Composition The book value per share composition presented on page 4 and reconciled on page 17 attributes the Company’s total GAAP equity among categories of assets. For each category, the Company presents the GAAP carrying value of the assets in that category (net of specific CECL reserves for risk rated 5 loans and general CECL reserves for risk rated 2, 3, and 4 loans), less the asset-specific financing and other liabilities that management has attributed to those assets. Financings are presented at unpaid principal balance. Where assets are financed under cross-collateralized arrangements, management has allocated the financing among those assets based on the amounts attributed to each asset under the applicable facility. The secured term loan is presented at its unpaid principal balance and is not attributed to any asset category. Differences between the unpaid principal balance and the GAAP carrying value of our indebtedness related to deferred financing costs, together with all remaining assets and liabilities, are included in "Other assets, net." The sum of all categories equals total GAAP equity and GAAP book value per share. The amount attributed to each category, and any subtotal of those amounts, are non-GAAP financial measures and should not be considered as an alternative to total GAAP book value per share. We believe these measures are useful to investors because they show how the Company’s equity is distributed across assets with different credit profiles and expected resolution paths and may be used by management in evaluating and determining capital allocation priorities. The attribution methodology reflects management's judgment, and other reasonable methods could produce different results. Our methodology may differ from that used by other companies, and these measures may not be comparable to similarly titled measures reported by other companies. These measures are based on GAAP carrying values as of the date presented. They do not represent (i) fair value, (ii) the amounts that the Company may realize upon the sale, repayment, foreclosure or other resolution of any asset, or (iii) the amounts that would be available to repay the secured term loan or other indebtedness, to fund operations or to make distributions to stockholders. Amounts realized may be materially lower than carrying value, including as a result of additional losses on loans and REO, transaction costs, and market conditions. The attribution of assets and liabilities to categories does not necessarily reflect their legal segregation. The Company's assets generally remain subject to the claims of its creditors, and assets in one category may be pledged under financing arrangements that include cross-collateralization, cross-default, margin call and mandatory prepayment provisions, among other features. The composition does not reflect future management fees, general and administrative expenses, interest expense, funding of unfunded loan commitments, or other costs the Company will incur or pay. Per share amounts are based on shares of common stock outstanding and RSUs and exclude warrants as they are anti-dilutive.
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,” “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 19 for a reconciliation of net income (loss) to distributable earnings (loss) and distributable earnings (loss) prior to realized gains and losses. Amount based on unpaid principal balance prior to principal charge-offs, if any. Refer to page 3 for further discussion of loan resolution activity. Excludes our real estate owned (REO) assets, unless otherwise noted. Based on carrying value net of specific CECL reserves; excludes loans receivable classified as 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. For real estate owned assets classified as held-for-sale, amounts reflect held-for-sale carrying values as of September 30, 2026. Net Debt-to-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 20 for a reconciliation of Net Debt-to-Equity Ratio. Pro forma adjustments to September 30, 2026 ratios reflect deleveraging subsequent to September 30, 2026 of $268.7 million from proceeds received from the resolution of loans receivable. 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 20 for a reconciliation of Total Leverage Ratio. Pro forma adjustments to September 30, 2026 ratios reflect deleveraging subsequent to September 30, 2026 of $268.7 million from proceeds received from the resolution of loans receivable. 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 classified as held-for-sale, if any. Loan commitment represents principal outstanding plus remaining unfunded loan commitments. See Important Notices beginning on page 21 for additional information on this metric. Yield to maturity 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 September 30, 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 September 30, 2026, mixed-use consists of 3% office, 3% life science, 3% hospitality, 2% multifamily, and 2% 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 September 30, 2026. Weighted average spread excludes SOFR floors and is based upon unpaid principal balance. See pages 10 and 20 for book value bridge. Includes CECL reserves on unfunded loan commitments. Such reserves are included within other liabilities on the consolidated balance sheet. Classification of property type and construction status reflect the state of collateral as of September 30, 2026.