Claros Mortgage Trust, Inc. (CMTG) SEC Filings & Earnings Calls

Credit loss escalation

“Specific CECL Reserve (1) 32.0 % ... Total CECL Reserve (3) 16.9 %”

Book value erosion

“Book Value per share (2) $ 8.58 $ 10.69” · word for word

Dividend suspension

“Dividends declared per share of common stock $ - $ -” · word for word

REO portfolio losses

“Valuation adjustment for real estate owned held-for-sale (29,623 )” · word for word

Severe credit deterioration in CRE loan portfolio, especially office and multifamily.

“CECL reserves $567.4M (16.9% of UPB); watchlist $1.2B; office loan recovery only 63%.”

Liquidity is constrained with only $103M total liquidity.

“Total liquidity of $103 million, including $90 million of cash.” · word for word

High leverage with net debt/equity of 2.0x, though being reduced.

“Net debt/equity ratio of 2.0x; total leverage ratio of 2.7x.” · word for word

Potential dilution from increased share authorization under incentive plan.

“Increases the aggregate number of shares of common stock... reserved for issuance under the 2016 Plan by 6,500,000 shares to 14,781,594 shares.” · word for word

Minimal risk; routine board change with no disagreement.

“Resignation due to retirement from Almanac; replacement appointed per existing designation right.”

Elevated credit risk from non-accrual loans

“As of March 31, 2026, loans receivable classified as non-accrual represented 37.9% of our total loans receivable held-for-investment, based on carrying value net of specific CECL reserves.” · word for word

High leverage and covenant compliance risk

“Future compliance with our financial covenants is dependent upon the results of our operating activities, our financial condition, and the overall market conditions in which we and our borrowers operate.” · word for word

Dividend suspension

“On December 16, 2024, our Board paused our quarterly dividend on our common stock commencing with the fourth quarter dividend that would have otherwise been paid in January 2025.” · word for word

Concentration in transitional CRE assets

“We are a CRE finance company focused primarily on originating senior and subordinate loans on transitional CRE assets located in major U.S. markets.” · word for word

Interest rate sensitivity

“Elevated benchmark interest rates imposed by the U.S. Federal Reserve may continue to increase our interest expense, negatively impact the ability of our borrowers to service their debt, and reduce the value of the CRE collateral underlying our loans.” · word for word

Significant GAAP net loss; high CECL reserves (11.4% of UPB); ongoing loan resolution and credit risk

“GAAP net loss of $54.3M; CECL reserves of $398.9M (11.4% of UPB); Distributable Loss of $75.2M”

Credit loss cycle / loan portfolio deterioration

“Provision for (reversal of) current expected credit loss reserve 466,527 ... Principal charge-offs (1) (312,017 )” · word for word

External management conflict of interest

“the Management Agreement between us and our Manager was negotiated between related parties, and the terms, including fees, expense reimbursements and other amounts payable to our Manager, may not be as favorable to us as if they had been negotiated at arm’s length between unaffiliated third parties.” · word for word

High leverage / debt covenant risk

“Term Loan Agreement provides lenders with governance rights upon material event of default, including board observer appointments and potential termination of the Manager.”

Shareholder dilution from equity plan

“If the Amendment had been approved as of such date, our approximate potential overhang, on a fully-diluted basis, would increase by 4.19% to 6.95%” · word for word

Negative TSR and poor stock performance

“Total Shareholder Return ($) 24.18 ... Peer Group Total Shareholder Return ($) (3) 118.36”

Liquidity and refinancing risk

“During the years ended December 31, 2025 and 2024, we made deleveraging payments to certain of our financing counterparties and expect to continue to do so as agreed with our lenders.” · word for word

Covenant compliance risk

“The impact of macroeconomic conditions on the commercial real estate and capital markets, including elevated benchmark interest rates compared to recent historical standards and the effects thereof on our and our borrowers’ operating performance, may make it more difficult for us to satisfy these financial covenants in the future and ultimately reduce our li” · word for word

Lender governance influence

“Additionally, the new secured term loan provides the lenders with the right to appoint two non-voting observers to our Board... and to have such Designated Directors participate in a review of, and make a recommendation to the Board regarding whether or not to terminate, our Manager.” · word for word

High credit loss provisions and watchlist loans indicate ongoing commercial real estate stress.

“Provision for CECL reserves of $211.7M; watchlist loans $1.5B; CECL reserves 10.9% of UPB.”

Liquidity improved but remains constrained relative to portfolio size.

“Total liquidity $185M vs $3.7B loan portfolio; net unfunded commitments $12M.”

High-cost debt and covenant waivers signal financial distress; lender governance rights increase creditor control.

“Term loan at SOFR+6.75% with 2.50% floor; interest coverage waived through mid-2027; lenders get board observers.”

Reduced borrowing capacity from Morgan Stanley facility cut from $750M to $250M.

“Morgan Stanley facility decreased from $750 million to $250 million.”

Covenant waiver and mandatory prepayment signal financial distress.

“Required $150 million prepayment; waiver of interest coverage ratio”

Reduced tangible net worth covenant indicates asset value concerns.

“Reduction of the minimum Tangible Net Worth financial covenant to $1,400,000,000” · word for word

Credit loss cycle intensifying

“During the nine months ended September 30, 2025, we recorded a provision for current expected credit losses of $254.8 million... As of September 30, 2025, our total current expected credit loss reserve was $360.4 million.” · word for word

Covenant compliance risk

“Future compliance with our financial covenants is dependent upon the results of our operating activities, our financial condition, and the overall market conditions in which we and our borrowers operate. The impact of macroeconomic conditions on the commercial real estate and capital markets... may make it more difficult for us to satisfy these financial cov” · word for word

Portfolio concentration in transitional CRE

“We are a CRE finance company focused primarily on originating senior and subordinate loans on transitional CRE assets located in major U.S. markets... Transitional CRE assets are properties that require repositioning, renovation, rehabilitation, leasing, development or redevelopment or other value-added elements in order to maximize value.” · word for word

High credit losses with CECL reserves of $307.7 million, representing 6.8% of UPB.

“CECL reserves of $307.7 million on loans receivable, representing $2.15 per share.” · word for word

Ongoing loan resolutions and foreclosures indicate stress in commercial real estate portfolio.

“Loan resolutions of $716.0 million of UPB; two mortgage foreclosures.” · word for word