\nClaros Mortgage Trust, Inc. (NYSE: CMTG) (the \u201cCompany\u201d or \u201cCMTG\u201d) today reported its financial results for the quarter ended September 30, 2022. The Company\u2019s third quarter 2022 GAAP net income was $42.1 million, or $0.30 per diluted share of common stock, and Distributable Earnings (a non-GAAP financial measure defined below) was $47.1 million, or $0.33 per diluted share of common stock.\n<\/p>\n
Third Quarter 2022 Highlights<\/i><\/p>\n Subsequent to Quarter-End<\/i><\/p>\n \n\u201cA focus on asset management execution coupled with a disciplined approach to transitional lending opportunities enabled us to deliver strong results for the quarter,\u201d said Richard Mack, Chief Executive Officer and Chairman of CMTG. \u201cWhile uncertainty and volatility are dominant macroeconomic themes right now, we continued to diversify our portfolio with a majority of our $878 million in new loan originations in the third quarter collateralized by cash-flowing multifamily assets.\u201d\n<\/p>\n \n\u201cAs we move through the fourth quarter and into 2023, we believe the depth of our team\u2019s experience in managing our portfolio through market volatility as well as our conservative underwriting practices, moderate leverage, and strong balance sheet with ample liquidity set us up well to capture the compelling investment opportunities in the marketplace.\u201d\n<\/p>\n Teleconference Details<\/span><\/b><\/p>\n \nA conference call to discuss CMTG\u2019s financial results will be held on Thursday, November 10, 2022, 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 466886.\n<\/p>\n \nThe conference call will also be broadcast live over the internet and may be accessed through the Investor Relations section of CMTG\u2019s website at www.clarosmortgage.com<\/a>. The earnings presentation accompanying this release and containing supplemental information about the Company\u2019s financial results may also be accessed through this website in advance of the call.\n<\/p>\n \nFor those unable to listen to the live broadcast, a webcast replay will be available on CMTG\u2019s website or by dialing 1-866-813-9403, access code 646223, beginning approximately two hours after the event.\n<\/p>\n About Claros Mortgage Trust, Inc.<\/span><\/b><\/p>\n \nCMTG 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\u2019s website at www.clarosmortgage.com<\/a>.\n<\/p>\n Forward-Looking Statements<\/span><\/b><\/p>\n \nCertain 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\u2019s use of forward-looking terminology such as \u201cmay,\u201d \u201cwill,\u201d \u201cexpect,\u201d \u201cintend,\u201d \u201canticipate,\u201d \u201cestimate,\u201d \u201cbelieve,\u201d \u201ccontinue,\u201d \u201cseek,\u201d \u201cobjective,\u201d \u201cgoal,\u201d \u201cstrategy,\u201d \u201cplan,\u201d \u201cfocus,\u201d \u201cpriority,\u201d \u201cshould,\u201d \u201ccould,\u201d \u201cpotential,\u201d \u201cpossible,\u201d \u201clook forward,\u201d \u201coptimistic,\u201d 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\u2019s 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.\n<\/p>\n Definitions<\/span><\/b><\/p>\n Distributable Earnings:<\/b><\/p>\n \nDistributable Earnings is a non-GAAP measure used to evaluate the Company\u2019s 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\u2019s 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) incentive fees, (iii) real estate depreciation and amortization, (iv) 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, (v) one-time events pursuant to changes in GAAP and (vi) certain non-cash items, which in the judgment of the Company\u2019s Manager, should not be included in Distributable Earnings. Distributable Earnings is substantially the same as Core Earnings excluding incentive fees, as defined in the Management Agreement, for the periods presented.\n<\/p>\n \nThe Company believes that Distributable Earnings provides meaningful information to consider in addition to the Company\u2019s 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\u2019s performance excluding the effects of certain transactions, non-cash items and GAAP adjustments, as determined by the Company\u2019s Manager, that it believes are not necessarily indicative of the Company\u2019s 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\u2019s cash flows from operating activities, a measure of the Company\u2019s liquidity or an indication of funds available for the Company\u2019s cash needs. In addition, the Company\u2019s 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\u2019s reported Distributable Earnings may not be comparable to the Distributable Earnings reported by other companies.\n<\/p>\n \nIn order to maintain the Company\u2019s 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\u2019 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\u2019s net income as determined in accordance with GAAP is helpful to its stockholders in assessing the overall performance of its business.\n<\/p>\n \nWhile Distributable Earnings excludes the impact of the Company\u2019s unrealized current provision for credit losses, 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.\n<\/p>\n Claros Mortgage Trust, Inc. Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n September 30, June 30, Net income attributable to common stock(1)<\/sup>:<\/b><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n42,071\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n63,234\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Adjustments:<\/b><\/p>\n<\/td>\n \nNon-cash stock-based compensation expense\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3,426\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n604\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nProvision for current expected credit loss reserve\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2,352\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n8,530\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nDepreciation expense\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2,064\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n1,998\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nUnrealized gain on interest rate cap\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2,776\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(2,837\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n Distributable Earnings prior to principal charge-offs<\/b><\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n47,137\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n71,529\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nPrincipal charge-offs\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n–\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(11,500\n<\/p>\n<\/td>\n \n)\n<\/p>\n<\/td>\n<\/tr>\n Distributable Earnings<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n47,137\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n60,029\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n Weighted average diluted shares \u2013 Distributable Earnings<\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n141,589,433\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n140,045,514\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nBasic and diluted earnings per share\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.30\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.45\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nDistributable Earnings per share prior to principal charge-offs, basic and diluted\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.33\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.51\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nDistributable Earnings per share, basic and diluted\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.33\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$\n<\/p>\n<\/td>\n \n0.43\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20221109005997\/en\/<\/a><\/span><\/p>\n Investor Relations: Media Relations: KEYWORDS:<\/b> New York United States North America<\/p>\n INDUSTRY KEYWORDS:<\/b> Commercial Building & Real Estate Construction & Property REIT<\/p>\n\n
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<\/b>Reconciliation of Distributable Earnings to Net Income Attributable to Common Stockholders
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<\/b>(Amounts in thousands, except share and per share data)\n<\/p>\n<\/td>\n<\/tr>\n\n <\/tr>\n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n
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2022<\/b><\/p>\n<\/td>\n\n \n
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2022<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n <\/tr>\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
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\n<\/b>
Claros Mortgage Trust, Inc.
\n<\/b>
Anh Huynh
\n
212-484-0090
\n
cmtgIR@mackregroup.com
\n<\/a><\/p>\n
\n<\/b>
Financial Profiles
\n<\/b>
Kelly McAndrew
\n
203-613-1552
\n
Kmcandrew@finprofiles.com<\/a><\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20221109005997\/en\/1631818\/3\/CMTG_Logo.jpg\"){kind=logo}
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