Claros Mortgage Trust, Inc. Announces Fourth Quarter 2021 Originations and Acquisitions of $1.8 Billion

Rhea-AI Summary

Claros Mortgage Trust (NYSE: CMTG) reported strong fourth-quarter results, originating approximately $1.8 billion in loan commitments, contributing to a total of $2.9 billion for 2021. The company focused on multifamily investments, with 80% of new commitments in this sector. Key metrics included 93% floating-rate investments at a weighted average coupon of L+3.3%. The firm also executed an IPO for net proceeds of $91.4 million and refinanced a $763 million term loan, reducing the interest rate. Strong execution and market dynamics fueled these results.

Positive

• Achieved $1.8 billion in loan commitments in Q4 2021.
• Total loan originations for 2021 reached $2.9 billion.
• 80% of fourth quarter investments were in multifamily properties.
• Executed an IPO resulting in approximately $91.4 million net proceeds.
• Refinanced a $763 million term loan, leading to lower interest rates.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today announced that it originated and acquired approximately $1.8 billion of loan commitments in the fourth quarter of 2021.

“We closed out 2021 with an exceptionally strong loan origination performance as we continued to deploy capital prudently and efficiently,” said Richard Mack, Chief Executive Officer and Chairman of CMTG. “Outstanding execution was key to our success. We closed $1.8 billion in new loan commitments during the fourth quarter, bringing full-year originations to $2.9 billion. Our team capitalized on healthy market dynamics and continued to leverage our extensive industry relationships.”

Fourth Quarter 2021 Summary

• Significant increase in loan origination and loan acquisition activity, closing $1.8 billion of total loan commitments of which $1.5 billion was funded at closing
  • Based on total loan commitments, 80% of fourth quarter investments were multifamily, 5% were for sale condo, and the remaining 15% was comprised of mixed-use and office
  • With respect to location of collateral related to the new loan investments, 37% were in Virginia, 22% were in California, and 12% were in Florida, while additional markets represented less than 10% each, based on total loan commitments
  • 93% were floating-rate investments with a weighted average coupon of L+3.3%, and 7% were fixed-rate investments with a weighted average coupon of 8.5%
• Residential investments (multifamily and for sale condo) increased on a sequential quarter basis from 28% to 41% of the portfolio based on unpaid principal balance
• Funded approximately $210 million of follow-on fundings related to the existing loan portfolio
• Received proceeds of $1.5 billion of full and partial loan repayments
• Executed an initial public offering of 5.5 million shares for net proceeds of approximately $91.4 million, after deducting underwriting discounts and expenses
• Entered into a refinancing of its approximately $763 million Secured Term Loan which reduced the interest rate to the greater of (i) 1-month SOFR plus a 0.10% credit spread adjustment and (ii) 0.50% plus a credit spread of 4.50%

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220201005725/en/

Investor Relations:

Claros Mortgage Trust, Inc.

Anh Huynh

212-484-0090

cmtgIR@mackregroup.com

Source: Claros Mortgage Trust, Inc.