Claros Mortgage Trust, Inc. Reports Third Quarter 2024 Results
Claros Mortgage Trust (NYSE: CMTG) reported a GAAP net loss of $56.2 million, or $0.40 per share, for Q3 2024. The company's loan portfolio stands at $6.3 billion with an 8.4% weighted average yield. Key highlights include $374 million in loan repayments, $86 million funded on existing commitments, and total liquidity of $116 million. The company maintained a book value of $14.83 per share and paid a quarterly dividend of $0.10 per share. CMTG recorded a provision for CECL reserves of $79 million and subsequently sold two held-for-sale loans for $142 million, generating net liquidity of $51 million.
Claros Mortgage Trust (NYSE: CMTG) ha riportato una perdita netta GAAP di 56,2 milioni di dollari, pari a 0,40 dollari per azione, per il terzo trimestre del 2024. Il portafoglio prestiti della società ammonta a 6,3 miliardi di dollari con un rendimento medio ponderato dell'8,4%. Tra i principali risultati si evidenziano 374 milioni di dollari in rimborsi di prestiti, 86 milioni di dollari finanziati su impegni esistenti e una liquidità totale di 116 milioni di dollari. L'azienda ha mantenuto un valore contabile di 14,83 dollari per azione e ha distribuito un dividendo trimestrale di 0,10 dollari per azione. CMTG ha registrato una svalutazione per riserve CECL di 79 milioni di dollari e successivamente ha venduto due prestiti tenuti per la vendita per 142 milioni di dollari, generando liquidità netta di 51 milioni di dollari.
Claros Mortgage Trust (NYSE: CMTG) reportó una pérdida neta GAAP de $56.2 millones, o $0.40 por acción, para el tercer trimestre de 2024. La cartera de préstamos de la compañía asciende a $6.3 mil millones con un rendimiento medio ponderado del 8.4%. Los puntos destacados incluyen $374 millones en pagos de préstamos, $86 millones financiados en compromisos existentes, y una liquidez total de $116 millones. La empresa mantuvo un valor contable de $14.83 por acción y pagó un dividendo trimestral de $0.10 por acción. CMTG registró una provisión para reservas CECL de $79 millones y posteriormente vendió dos préstamos mantenidos para la venta por $142 millones, generando una liquidez neta de $51 millones.
클라로스 모기지 트러스트 (NYSE: CMTG)는 2024년 3분기 동안 GAAP 기준 순손실 5,620만 달러, 즉 주당 0.40달러를 보고했습니다. 회사의 대출 포트폴리오는 63억 달러에 이르며 가중 평균 수익률은 8.4%입니다. 주요 하이라이트에는 3억 7,400만 달러의 대출 상환, 기존 약정에 대해 자금 지원된 8,600만 달러, 그리고 총 유동성이 1억 1,600만 달러가 포함됩니다. 이 회사는 주당 14.83달러의 장부 가치를 유지했으며 주당 0.10달러의 분기 배당금을 지급했습니다. CMTG는 CECL 준비금에 대한 충당금을 7,900만 달러 기록했으며, 이후 판매를 위해 보유하고 있는 두 개의 대출을 1억 4,200만 달러에 매각하여 순 유동성 5,100만 달러를 창출했습니다.
Claros Mortgage Trust (NYSE: CMTG) a annoncé une perte nette GAAP de 56,2 millions de dollars, soit 0,40 dollar par action, pour le troisième trimestre de 2024. Le portefeuille de prêts de la société s'élève à 6,3 milliards de dollars avec un rendement moyen pondéré de 8,4%. Parmi les points forts, on note 374 millions de dollars en remboursements de prêts, 86 millions de dollars financés sur des engagements existants, et une liquidité totale de 116 millions de dollars. L'entreprise a maintenu un valeur comptable de 14,83 dollars par action et a versé un dividende trimestriel de 0,10 dollar par action. CMTG a enregistré une provision pour les réserves CECL de 79 millions de dollars et a ensuite vendu deux prêts détenus à la vente pour 142 millions de dollars, générant une liquidité nette de 51 millions de dollars.
Claros Mortgage Trust (NYSE: CMTG) meldete einen GAAP-Nettoverlust von 56,2 Millionen US-Dollar, oder 0,40 US-Dollar pro Aktie, für das dritte Quartal 2024. Das Kreditportfolio des Unternehmens steht bei 6,3 Milliarden US-Dollar mit einer gewichteten durchschnittlichen Rendite von 8,4%. Zu den wichtigsten Highlights gehören 374 Millionen US-Dollar an Kreditrückzahlungen, 86 Millionen US-Dollar, die auf bestehende Verpflichtungen finanziert wurden, und eine Gesamtliquidität von 116 Millionen US-Dollar. Das Unternehmen hielt einen Buchwert von 14,83 US-Dollar pro Aktie und zahlte eine vierteljährliche Dividende von 0,10 US-Dollar pro Aktie. CMTG verzeichnete eine Rücklage für CECL-Vorsorge von 79 Millionen US-Dollar und verkaufte anschließend zwei Kredite, die zum Verkauf gehalten wurden, für 142 Millionen US-Dollar, was eine Nettoliquidität von 51 Millionen US-Dollar generierte.
- Received substantial loan repayments of $374 million
- Maintained strong total liquidity position of $116 million
- Generated $51 million in net liquidity from post-quarter loan sales
- Portfolio yield remains solid at 8.4%
- Reported GAAP net loss of $56.2 million ($0.40 per share)
- Distributable Loss of $24.6 million ($0.17 per share)
- Significant CECL reserves provision of $79 million
- Reduced dividend to $0.10 per share
- Required $80 million in deleveraging payments
Insights
The Q3 2024 results reveal significant challenges for CMTG, with a
Key metrics show both positive and negative trends: Positive factors include
The post-quarter asset sales generating
The market commentary from management suggesting a transition from challenging conditions merits cautious optimism. While there are signs of improving commercial real estate fundamentals and potential relief in borrowing costs, the company's significant provisions and loan reclassifications indicate ongoing stress in the transitional CRE lending space.
The
Third Quarter 2024 Highlights
-
$6.3 billion 8.4% .-
Received loan repayments of
$374 million $354 million -
Funded
$86 million -
Reclassified three loans to held-for-sale, representing an unpaid principal balance of
$356 million $36 million
-
Received loan repayments of
-
Total liquidity of
$116 million $114 million -
Unencumbered loan and REO assets of
$604 million $213 million -
Reduced outstanding financing by
$197 million $80 million -
Provision for CECL reserves approximated
$79 million $0.56 $0.89 $0.79 -
Total CECL reserve stands at
3.7% of unpaid principal balance, comprised of (i) specific reserves of21.4% on 5 rated loans and (ii) general reserve of2.1% on 3 and 4 rated loans.
-
Total CECL reserve stands at
-
Paid a cash dividend of
$0.10 -
Book value of
$14.83
Subsequent Events
-
Sold two held-for-sale loans for
$142 million $51 million -
Received the full loan repayments of two loans representing unpaid principal balance of
$29 million $10 million
“We are beginning to see an increase in positive momentum across commercial real estate with continued strong underlying fundamentals, and anticipated liquidity and borrowing cost relief on the horizon,” said Richard Mack, Chief Executive Officer and Chairman of CMTG.
“These encouraging signs suggest that commercial real estate may now be transitioning from what has been a particularly challenging period. At CMTG, we reported
Teleconference Details
A conference call to discuss CMTG’s financial results will be held on Friday, November 8, 2024, at 10:00 a.m. ET. The conference call may be accessed by dialing 1-833-470-1428 and referencing the Claros Mortgage Trust, Inc. teleconference call; access code 426287.
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 dialing 1-866-813-9403, access code 216734, 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
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 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). Furthermore, the Company presents Distributable Earnings prior to realized gains and losses, which includes charge-offs of principal and/or accrued interest receivable, 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 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 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 prior to realized gains and losses may not be comparable to the Distributable Earnings (Loss) and Distributable Earnings 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
While Distributable Earnings (Loss) excludes the impact of our provision for or reversal of current expected credit loss reserve, charge-offs of principal and/or accrued interest receivable are recognized through Distributable Earnings (Loss) when deemed non-recoverable. 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 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.
Claros Mortgage Trust, Inc. Reconciliation of Net Loss to Distributable (Loss) Earnings (Amounts in thousands, except share and per share data) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
September 30, 2024 |
|
|
June 30, 2024 |
|
||
Net loss: |
|
$ |
(56,218 |
) |
|
$ |
(11,554 |
) |
Adjustments: |
|
|
|
|
|
|
||
Non-cash stock-based compensation expense |
|
|
4,972 |
|
|
|
3,999 |
|
Provision for current expected credit loss reserve |
|
|
78,756 |
|
|
|
33,928 |
|
Depreciation and amortization expense |
|
|
2,628 |
|
|
|
2,623 |
|
Amortization of above and below market lease values, net |
|
|
354 |
|
|
|
354 |
|
Unrealized loss on interest rate cap |
|
|
287 |
|
|
|
94 |
|
Loss on extinguishment of debt |
|
|
262 |
|
|
|
999 |
|
Distributable Earnings prior to realized losses |
|
$ |
31,041 |
|
|
$ |
30,443 |
|
Loss on extinguishment of debt |
|
|
(262 |
) |
|
|
(999 |
) |
Principal charge-offs 1 |
|
|
(55,352 |
) |
|
|
(561 |
) |
Distributable (Loss) Earnings |
|
$ |
(24,573 |
) |
|
$ |
28,883 |
|
Weighted average diluted shares - Distributable (Loss) Earnings |
|
|
142,021,469 |
|
|
|
142,276,031 |
|
Diluted Distributable Earnings per share prior to realized losses |
|
$ |
0.22 |
|
|
$ |
0.21 |
|
Diluted Distributable (Loss) Earnings per share |
|
$ |
(0.17 |
) |
|
$ |
0.20 |
|
-
For the three months ended September 30, 2024, amount includes a
$23.2 million
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107122481/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.
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