Claros Mortgage Trust, Inc. Reports Third Quarter 2022 Results

New York – ()–Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today reported results for the quarter ended September 30, 2022. or $0.30 per diluted share of common stock, distributable earnings (a non-GAAP financial measure defined below) was $47.1 million, or $0.33 per diluted share of common stock.

Q3 2022 Highlights

  • Six investments totaled approximately $878 million in financing commitments, of which $614 million was funded at closing. Weighted average coupon for new originations was SOFR + 5.3% and weighted average LTV was 67.4%.

  • Raised approximately $186 million of additional funding related to its existing loan portfolio.

  • Received loan repayment income of $559 million.

  • Paid a cash dividend of $0.37 per share of common stock for the third quarter of 2022.

after the end of the quarter

  • On November 8, CMTG’s Board of Directors authorized a repurchase of up to $100 million of the Company’s common stock. The repurchase program does not oblige us to acquire any particular amount of shares and may be suspended or terminated at any time in our discretion.

CMTG Chief Executive Officer and Chairman Richard Mack said: “Uncertainty and volatility are key macroeconomic themes right now, but we secured the majority of our $878 million in new lending in the third quarter with cash-flowing multifamily assets We continue to diversify our portfolio. ”

As we move through the fourth quarter into 2023, the depth of the team’s experience in managing the portfolio through market volatility, conservative underwriting practices, moderate leverage and a strong balance sheet with ample liquidity I believe you can get us firmly. An attractive investment opportunity in the market. ”

Conference call details

A conference call to discuss CMTG’s financial results will be held on Thursday, November 10, 2022 at 10:00 a.m. ET. The conference call can be accessed by dialing 1-844-200-6205 and viewing the Claros Mortgage Trust, Inc. Conference Call. Access code 466886.

The conference call will also be streamed live via the Internet and will be accessible through the Investor Relations section of CMTG’s website. www.clarosmortgage.comEarnings presentations accompanying this release and containing supplemental information regarding the Company’s financial results will also be available on this website prior to the conference call.

If you are unable to hear the live broadcast, a webcast replay will be available approximately two hours after the event on CMTG’s website or by dialing 1-866-813-9403, access code 646223.

About Claros Mortgage Trust

CMTG is a real estate investment trust focused primarily on originating senior and subordinated loans to transitional commercial real estate assets in major markets nationwide. , LP Please visit our website for additional information. 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 that all such forward-looking statements are covered by the safe harbor provisions that apply to forward-looking statements contained in these acts. Such forward-looking statements generally refer to “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” and “believe.” , “Continue,” “Seek,” “Objective,” “Goal,” “Strategy,” “Plan,” “Focus,” “Priority,” “Should,” “Could,” “Potential,” ” “possible”, “forward-looking”, “optimistic” or other similar words. Readers are cautioned not to place undue reliance on these forward-looking statements. These statements are made only as of the date of this press release. Such statements are subject to certain risks and uncertainties, including known and unknown risks, that could cause actual results to differ materially from those projected or anticipated. Accordingly, such statements are not guarantees of CMTG’s future performance. CMTG undertakes no obligation to update or revise any forward-looking statements contained in this release, except as required by law.

definition

Distributable earnings:

Distributable Earnings is a non-GAAP measure used to measure a company’s performance, excluding the impact of certain transactions, non-cash items and manager-determined GAAP adjustments, which is based on the company’s current results and operations. does not necessarily indicate Distributable income is a non-GAAP measure, which we define as net income determined in accordance with GAAP. except (i) non-cash stock-based compensation expense (income); (ii) incentive expense; and (iii) real estate. (iv) unrealized gains or losses resulting from mark-to-market changes (other than permanent impairments) included in net income for the period; (v) one-time events associated with changes in GAAP; and (vi ) certain non-cash items that, at the discretion of the Company’s manager, should not be included in Distributable Earnings; Distributable Revenue is substantially the same as Core Revenue, exclusive of incentive fees, as defined in the Management Agreement for the periods presented.

We believe that distributable earnings, in addition to our net income and cash flows from operations determined in accordance with GAAP, provide meaningful information to consider. We believe our distributable income measure is helpful in evaluating our performance excluding the impact of certain transactions, non-cash items and GAAP adjustments determined by our managers. Distributable income does not represent net income or cash flows from operations and is a proxy for GAAP net income, a measure of our cash flows from operations, a measure of our liquidity, or cash available. should not be considered an indicator of Company cash needs. In addition, a company’s methodology for calculating distributable earnings may differ from the methodology employed by other companies to calculate the same or similar supplemental performance measures, and therefore the company’s reported distributions may differ. Available earnings may not be comparable to available earnings reported by other companies.

In order to maintain a company’s REIT status, the company must distribute at least 90% of REIT taxable income as dividends. Distributable earnings and other similar measures have historically been useful indicators of a mortgage REIT’s ability to cover dividends, and the REIT’s ability to mortgage itself in determining the dividend amount. Distributable income is an important factor that the Board considers in setting dividends, and as such, we believe that distributable income is useful to investors. Accordingly, we believe that providing distributable income supplemental to our net income as determined in accordance with GAAP is helpful to our shareholders when evaluating the overall performance of our business.

Distributable income excludes the impact of our unrealized allowance for credit losses, but credit losses are written off and recognized through distributable income when deemed uncollectible. Uncollectibility is determined (i) upon settlement of the loan (i.e., when the loan is fully or partially repaid or, in the case of a foreclosure, when the underlying property is sold), or (ii) in terms of amount. If such amount is determined to be uncollectible, it should be paid under any loan.

Claros Mortgage Trust Co., Ltd.

Reconciliation of Distributable Earnings to Net Income Attributable to Common Stockholders

(1,000 shares, excluding per share data)

3 months ended

September 30

2022

June 30th

2022

Net income attributable to common stock(1):

$

42,071

$

63,234

Adjustment:

Non-cash stock-based compensation expense

3,426

604

Current Expected Loan Loss Allowance Allowance

2,352

8,530

depreciation

2,064

1,998

Unrealized gains on interest rate caps

(2,776

)

(2,837

)

Distributable earnings before amortization of principal

$

47,137

$

71,529

Main depreciation

(11,500

)

distributable income

$

47,137

$

60,029

Weighted Average Diluted Shares – Distributable Earnings

141,589,433

140,045,514

Basic and diluted earnings per share

$

0.30

$

0.45

Distributable Earnings per Share Before Amortization of Principal, Basic and Diluted

$

0.33

$

0.51

Basic and Diluted Distributable Earnings Per Share

$

0.33

$

0.43

  1. Net income attributable to common stock for the three months ended June 30, 2022 included $0.21 per share of realized gains, or distributable earnings, from the sale of $30.1 million of loans .

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