Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or
“CMTG”) today reported its financial results for the quarter and
year ended December 31, 2022. The Company reported GAAP net (loss)
income of ($22.7 million) and $112.1 million, or ($0.17) and $0.79
per basic and diluted share of common stock, for the quarter and
year ended December 31, 2022, respectively. Distributable Earnings
(a non-GAAP financial measure defined below) were $53.7 million and
$194.4 million, or $0.38 and $1.38 per diluted share of common
stock, for the quarter and year ended December 31, 2022,
respectively.
Fourth Quarter 2022 Highlights
- Originated approximately $359 million of total loan commitments
across three investments, of which $34 million was funded at
closing. New originations had a weighted average coupon of SOFR +
6.0% and a weighted average LTV of 57.5%.
- Funded approximately $198 million of follow-on fundings related
to the existing loan portfolio.
- Received loan repayment proceeds of $75 million.
- Paid a cash dividend of $0.37 per share of common stock for the
fourth quarter of 2022.
Full Year 2022 Highlights
- Originated 32 loans representing approximately $3.5 billion of
total commitments, of which $2.0 billion was funded at
closing.
- Follow-on fundings on existing loan commitments totaled $694
million.
- Received $1.3 billion in full repayments, including one loan
sale, across 14 loans.
- Further diversified our financing sources:
- Entered into a $150 million acquisition facility.
- Closed a $1.0 billion financing facility, of which $258 million
was outstanding at December 31, 2022.
“Throughout the fourth quarter and full year 2022, our
originations team did an outstanding job of executing on our
strategy despite increasing levels of market volatility,” said
Richard Mack, Chief Executive Officer and Chairman of CMTG. “With a
strong balance sheet, we originated $359 million in new loan
commitments for the quarter, bringing our full year 2022 loan
originations to $3.5 billion, which significantly outpaced the
prior year. We also continued to diversify our portfolio by market
and asset mix, capitalizing on trends that emerged
post-pandemic.”
Teleconference Details A
conference call to discuss CMTG’s financial results will be held on
Friday, February 17, 2023, at 10:00 a.m. ET. The conference call
may be accessed by dialing 1-844-200-6205 and referencing the
Claros Mortgage Trust, Inc. teleconference call; access code
310472.
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. The earnings
presentation accompanying this 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 642745, 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 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.
Definitions Distributable
Earnings: Distributable Earnings is a non-GAAP measure used to
evaluate the Company’s performance excluding the effects of certain
transactions, non-cash items and GAAP adjustments, as determined by
our Manager, which the Company believes are not necessarily
indicative of the Company’s current performance and operations.
Distributable Earnings is a non-GAAP measure, which the Company
defines as net income as determined in accordance with GAAP,
excluding (i) non-cash stock-based compensation expense (income),
(ii) real estate 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
for the applicable period, (iv) one-time events pursuant to changes
in GAAP and (v) certain non-cash items, which in the judgment of
the Company’s Manager, should not be included in Distributable
Earnings.
The Company believes that Distributable Earnings provides
meaningful information to consider in addition to the Company’s net
income and cash flows from operating activities determined in
accordance with GAAP. The Company believes the Distributable
Earnings measure helps it to evaluate the Company’s performance
excluding the effects of certain transactions, non-cash items and
GAAP adjustments, as determined by the Company’s Manager, that it
believes are not necessarily indicative of the Company’s current
performance and operations. Distributable Earnings does not
represent net income or cash flows from operating activities and
should not be considered as an alternative to GAAP net income, an
indication of the Company’s cash flows from operating activities, a
measure of the Company’s liquidity or an indication of funds
available for the Company’s cash needs. In addition, the Company’s
methodology for calculating Distributable Earnings 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 may not be comparable to
the Distributable Earnings reported by other companies.
In order to maintain the Company’s status as a REIT, the Company
is required to distribute at least 90% of its REIT taxable income,
determined without regard to the deduction for dividends paid and
excluding net capital gain, as dividends. Distributable Earnings,
and other similar measures, have historically been a useful
indicator of mortgage REITs’ ability to cover their dividends, and
to mortgage REITs themselves in determining the amount of any
dividends. Distributable Earnings is a key factor considered by the
board of directors in setting the dividend and as such the Company
believes Distributable Earnings is useful to investors.
Accordingly, the Company believes providing Distributable Earnings
on a supplemental basis to the Company’s net income as determined
in accordance with GAAP is helpful to its stockholders in assessing
the overall performance of its business.
While Distributable Earnings excludes the impact of the
Company’s provision for current expected credit loss reserve, loan
losses are charged off and recognized through Distributable
Earnings 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, or in the case of foreclosure, when the
underlying asset is sold), or (ii) with respect to any amount due
under any loan, when such amount is determined to be
non-collectible.
Claros Mortgage Trust,
Inc.
Reconciliation of
Distributable Earnings to
Net (Loss) Income
Attributable to Common Stock
(Amounts in thousands, except
share and per share data)
Three Months Ended
Year Ended
December 31, 2022
December 31, 2022
Net (loss) income attributable to
common stock:
$
(22,653
)
$
112,064
Adjustments:
Non-cash stock-based compensation
expense
3,427
7,457
Provision for current expected credit loss
reserve
71,377
84,361
Depreciation expense
2,039
8,041
Unrealized gain on interest rate cap
(429
)
(6,042
)
Distributable Earnings prior to
principal charge-offs
$
53,761
$
205,881
Principal charge-offs
(27
)
(11,527
)
Distributable Earnings
$
53,734
$
194,354
Weighted average diluted shares –
Distributable Earnings
140,616,356
140,496,437
Distributable Earnings per share prior to
principal charge-offs
$
0.38
$
1.47
Distributable Earnings per share
$
0.38
$
1.38
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230216005808/en/
Information 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
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