Claros Mortgage Trust, Inc. Announces Tax Treatment of 2021 Dividends

Rhea-AI Summary

Claros Mortgage Trust (NYSE: CMTG) has announced the tax treatment for its 2021 common stock dividends, reflecting a total distribution of $1.85 per share. This includes $1.28 as ordinary dividends and $0.57 as adjusted capital gain dividends. The company implemented a 1-for-2 reverse stock split on October 6, 2021, impacting the distribution amounts. Shareholders are encouraged to consult tax advisors regarding the treatment of these dividends.

Positive

• Total dividend distribution of $1.85 per share for 2021.
• Ordinary dividends of $1.28 per share provide income for shareholders.
• Qualified REIT dividends eligible for a 20% deduction under IRC Section 199A(b)(1)(B).

Negative

• A portion of dividends exceeds earnings and profits, impacting tax reporting for shareholders.

NEW YORK--(BUSINESS WIRE)-- Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today announced the tax treatment of its 2021 common stock dividends. The following table summarizes CMTG’s common stock dividend payments per share for the tax year ended December 31, 2021:

Record Date	Payment Date	Distribution per Share(1)	Adjustment	Dividend(2)	Ordinary Dividends(3)	Qualified Dividends	Capital Gain Dividends
12/22/2020	1/4/2021	$0.37	($0.36)	$0.01	$0.0103	$0.0000	$0.0002
3/19/2021	4/1/2021	$0.37	$0.00	$0.37	$0.3632	$0.0000	$0.0068
6/16/2021	7/7/2021	$0.37	$0.00	$0.37	$0.3632	$0.0000	$0.0068
9/17/2021	10/8/2021	$0.37	$0.00	$0.37	$0.3632	$0.0000	$0.0068
12/31/2021	1/15/2022	$0.37	($0.21)	$0.16	$0.1612	$0.0000	$0.0030
		$1.85	($0.57)	$1.28	$1.2611	$0.0000	$0.0236

1. On October 6, 2021, the Company effected a 1-for-2 reverse stock split of its common stock. The distribution per share amounts have been restated to reflect the effect of the reverse stock split for all periods presented. If, for example, on March 19, 2021, you held 100 shares in the Company, you would have received a distribution of $18.50 (100/2 x $0.37) on April 1, 2021. Of that amount, $18.16 (100/2 x $0.3632) would be classified as an ordinary dividend while $0.34 (100/2 x $0.0068) would be classified as a capital gain dividend.
2. Pursuant to IRC Section 857(b)(9), cash distributions made on January 15, 2022 with a record date of December 31, 2021 are treated as received by shareholders on December 31, 2021 to the extent of 2021 earnings and profits. As the Company’s aggregate 2021 dividends declared exceeded its 2021 earnings and profits, a portion of the January 2022 cash distribution declared in the fourth quarter of 2021 was treated as a 2022 distribution for federal income tax purposes and not included on the 2021 Form 1099. If you were a stockholder of record as of December 31, 2021, $0.16 per share is reported on your 2021 Form 1099 and $0.21 per share will be reported on your 2022 Form 1099. Similarly, cash distributions made on January 4, 2021 with a record date of December 22, 2020 were treated as received by shareholders on December 31, 2020 to the extent of 2020 earnings and profits. As the Company’s aggregate 2020 dividends declared exceeded its 2020 earnings and profits, a portion of the January 2021 cash distribution declared in the fourth quarter of 2020 was treated as a 2021 distribution for federal income tax purposes and not included on the 2020 Form 1099. If you were a stockholder of record as of December 31, 2020, $0.01 per share is reported on your 2021 Form 1099 and $0.36 per share was reported on your 2020 Form 1099.
3. Ordinary dividends that are "qualified REIT dividends" are eligible for the 20% deduction under IRC Section 199A(b)(1)(B). Shareholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220228005488/en/

Investor Relations:

Claros Mortgage Trust, Inc.

Anh Huynh

212-484-0090

cmtgIR@mackregroup.com



Media Relations:

Financial Profiles

Kelly McAndrew

203-613-1552

Kmcandrew@finprofiles.com

Source: Claros Mortgage Trust, Inc.

FAQ

What is the dividend amount for Claros Mortgage Trust (CMTG) in 2021?

The total dividend distribution amount for 2021 is $1.85 per share, which includes $1.28 as ordinary dividends.

When is the payment date for the 2021 dividends of CMTG?

The payment date for the dividends declared on December 31, 2021, was January 15, 2022.

What tax treatment applies to the 2021 dividends for CMTG shareholders?

Dividends are reported differently for tax purposes; $0.16 per share reported on 2021 Form 1099, with $0.21 on 2022 Form 1099 due to the excess over earnings.

Are CMTG dividends considered qualified REIT dividends?

Yes, CMTG's ordinary dividends are eligible for the 20% deduction under IRC Section 199A(b)(1)(B).