Claros Mortgage Trust, Inc. Announces Tax Treatment of 2022 Dividends

Rhea-AI Summary

Claros Mortgage Trust, Inc. (NYSE: CMTG) announced tax treatment for its 2022 common stock dividends, detailing payments made in the tax year ending December 31, 2022. Total cash distributions amounted to $1.48 per share, including ordinary dividends of $1.41 and a portion treated as capital gain dividends. Dividends exceeding earnings and profits led to $0.28 being reported for tax year 2023. Shareholders should consult tax advisors for specific treatment. The company focuses on lending for transitional commercial real estate in key U.S. markets.

Positive

• Total cash distributions of $1.48 per share for 2022.
• Ordinary dividends reported at $1.41, with a portion qualifying for tax deductions.

Negative

• Dividends exceeded earnings, indicating potential sustainability concerns.

NEW YORK--(BUSINESS WIRE)-- Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today announced the tax treatment of its 2022 common stock dividends. The following table summarizes CMTG’s common stock dividend payments per share for the tax year ended December 31, 2022:

Record Date	Payment Date	Cash Distribution	Adjustment	Dividend (1)	Ordinary Dividends(2)	Qualified Dividends	Capital Gain Dividends
12/31/2021	1/15/2022	$0.00	$0.21	$0.21(3)	$0.2058	$0.0000	$0.0000
3/31/2022	4/15/2022	$0.37	$0.00	$0.37	$0.3700	$0.0000	$0.0000
6/30/2022	7/15/2022	$0.37	$0.00	$0.37	$0.3700	$0.0000	$0.0000
9/30/2022	10/14/2022	$0.37	$0.00	$0.37	$0.3700	$0.0000	$0.0000
12/30/2022	1/13/2023	$0.37	($0.28)	$0.09	$0.0946	$0.0000	$0.0000
		$1.48	($0.07)	$1.41	$1.4104	$0.0000	$0.0000

1. Pursuant to IRC Section 857(b)(9), cash distributions made on January 13, 2023 with a record date of December 30, 2022 are treated as received by shareholders on December 31, 2022 to the extent of 2022 earnings and profits. As the Company’s aggregate 2022 dividends declared exceeded its 2022 earnings and profits, a portion of the January 2023 cash distribution declared in the fourth quarter of 2022 was treated as a 2023 distribution for federal income tax purposes and not included on the 2022 Form 1099. If you were a shareholder of record as of December 30, 2022, $0.09 is reported on your 2022 Form 1099 and $0.28 will be reported on your 2023 Form 1099.
2. 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.
3. 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, $0.21 is reported on your 2022 Form 1099 and $0.16 was reported on your 2021 Form 1099.

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/20230202005864/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 are the dividend payment details for CMTG shareholders in 2022?

CMTG's total cash distributions for 2022 were $1.48 per share, with $1.41 as ordinary dividends.

When was the record date for CMTG's 2022 dividends?

The record date for the dividends was December 30, 2022.

How will CMTG dividends be reported for tax purposes?

Due to exceeding earnings, $0.28 of the distribution will be reported in 2023 for tax purposes.

What is the significance of qualified dividends for CMTG?

Qualified dividends are eligible for a 20% deduction under IRC Section 199A(b)(1)(B).

Are there any sustainability concerns surrounding CMTG's dividends?

Yes, the dividends exceeding earnings suggest potential sustainability issues for future distributions.