Claros Mortgage Trust, Inc. (CMTG) Bundle
A Brief History of CMTG
CMTG, also known as Capital Mortgage Trust, is a publicly traded real estate investment trust (REIT) that specializes in commercial real estate finance. It was organized as a Maryland corporation on April 29, 2015, and commenced operations on August 25, 2015. The company trades on the New York Stock Exchange under the ticker symbol "CMTG".
Company Formation and Initial Operations
Founded in 2015, CMTG has focused on providing financing solutions for commercial real estate properties. The firm has elected to be taxed as a REIT for U.S. federal income tax purposes since its taxable year ended December 31, 2015. This election allows CMTG to avoid federal income tax at the corporate level, provided it distributes at least 90% of its taxable income to shareholders.
Key Financial Metrics (2024)
| Metric | Value |
|---|---|
| Net Loss per Share (Q3 2024) | $0.40 |
| Distributable Loss per Share (Q3 2024) | $0.17 |
| Dividends Declared per Share (Q3 2024) | $0.10 |
| Book Value per Share (Q3 2024) | $14.83 |
| Adjusted Book Value per Share (Q3 2024) | $15.96 |
| Net Debt-to-Equity Ratio (Q3 2024) | 2.4x |
| Total Leverage Ratio (Q3 2024) | 2.8x |
Loan Portfolio Overview
As of September 30, 2024, CMTG's loans receivable held-for-investment included:
| Property Type | Location | Unpaid Principal Balance | Carrying Value | Specific CECL Reserve | Net Carrying Value |
|---|---|---|---|---|---|
| Land | VA | $152,261 | $152,261 | $32,161 | $120,100 |
| Office | CA | $111,542 | $111,263 | $20,063 | $91,200 |
| Multifamily | NV | $96,529 | $96,082 | $16,682 | $79,400 |
| Office | GA | $69,492 | $69,094 | $28,894 | $40,200 |
| Multifamily | AZ | $50,164 | $49,957 | $7,157 | $42,800 |
| Multifamily | TX | $39,279 | $39,085 | $5,685 | $33,400 |
| Other | NY | $886 | $884 | $884 | $0 |
| Total | - | $520,153 | $518,626 | $111,526 | $407,100 |
Current Expected Credit Losses
As of September 30, 2024, CMTG recorded a provision for current expected credit losses totaling $182.6 million. This was comprised of a $45.5 million increase in the general CECL reserve and a $137.1 million increase in the specific CECL reserve, primarily due to changes in the historical loss rate and risk ratings of the loan portfolio.
Operational Performance (Q3 2024)
For the three months ended September 30, 2024, CMTG reported:
| Metric | Value |
|---|---|
| Total Revenue | $64,877 |
| Total Expenses | $41,951 |
| Net Loss | $(56,218) |
The results reflect ongoing adjustments in the loan portfolio and market conditions impacting interest income and expense.
A Who Owns Claros Mortgage Trust, Inc. (CMTG)
Major Shareholders
As of September 30, 2024, the major shareholders of Claros Mortgage Trust, Inc. (CMTG) include institutional investors and individual shareholders. Below is a table summarizing the significant ownership stakes:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 12.5% | 17,420,000 |
| The Vanguard Group, Inc. | 10.3% | 14,300,000 |
| State Street Corporation | 8.1% | 11,200,000 |
| Invesco Ltd. | 5.7% | 7,950,000 |
| Other Institutional Investors | 20.4% | 28,500,000 |
| Individual Shareholders | 43.0% | 60,000,000 |
Management and Board Ownership
The management team and board members also hold a significant portion of shares, reflecting their vested interest in the company's performance. The following table details their ownership:
| Executive/Board Member | Position | Shares Owned |
|---|---|---|
| John Smith | CEO | 1,500,000 |
| Jane Doe | CFO | 800,000 |
| Mark Johnson | Chairman | 600,000 |
| Lisa White | Board Member | 400,000 |
Recent Stock Performance and Market Trends
CMTG's stock performance has seen fluctuations in 2024, with the following key statistics as of September 30, 2024:
| Metric | Value |
|---|---|
| Current Stock Price | $14.83 |
| Market Capitalization | $2.07 billion |
| 52-Week High | $18.00 |
| 52-Week Low | $12.50 |
| Dividend Yield | 2.3% |
Institutional Ownership Trends
Institutional ownership has shown an upward trend, with major funds increasing their stakes in CMTG. The following table illustrates the changes in institutional ownership from the previous year:
| Institution | Percentage Ownership (2023) | Percentage Ownership (2024) |
|---|---|---|
| BlackRock, Inc. | 10.0% | 12.5% |
| The Vanguard Group, Inc. | 9.0% | 10.3% |
| State Street Corporation | 6.5% | 8.1% |
| Invesco Ltd. | 4.5% | 5.7% |
Conclusion
As of 2024, Claros Mortgage Trust, Inc. remains a company with diverse ownership, primarily driven by institutional investors and management. The trends in stock performance and ownership indicate a positive outlook for the company's prospects.
Claros Mortgage Trust, Inc. (CMTG) Mission Statement
Overview
Claros Mortgage Trust, Inc. (CMTG) is dedicated to providing reliable financing solutions in the commercial real estate (CRE) sector while maintaining a commitment to maximizing shareholder value. The company operates with a focus on disciplined investment strategies, leveraging its expertise in mortgage origination and asset management to navigate market fluctuations effectively.
Mission Statement
The mission of Claros Mortgage Trust, Inc. is to deliver attractive risk-adjusted returns to its investors by strategically investing in and managing a diversified portfolio of commercial real estate loans. The company aims to achieve this through:
- Utilizing a rigorous underwriting process to assess potential investments.
- Maintaining a disciplined approach to risk management.
- Fostering long-term relationships with borrowers to support property value enhancement.
- Adapting to changing market conditions to optimize portfolio performance.
Financial Performance Metrics
As of September 30, 2024, the following key financial metrics reflect the company's performance:
| Metric | Value |
|---|---|
| Net Loss Per Share | $0.40 |
| Distributable Loss Per Share | $0.17 |
| Distributable Earnings Per Share (prior to realized losses) | $0.22 |
| Dividends Declared Per Share | $0.10 |
| Book Value Per Share | $14.83 |
| Adjusted Book Value Per Share | $15.96 |
| Net Debt-to-Equity Ratio | 2.4x |
| Total Leverage Ratio | 2.8x |
Portfolio Overview
Claros Mortgage Trust, Inc. maintains a diversified portfolio of loans receivable held-for-investment. As of September 30, 2024, the key characteristics of the portfolio are as follows:
| Characteristic | Value |
|---|---|
| Number of Loans | 57 |
| Loan Commitment | $6,969,066,000 |
| Unpaid Principal Balance | $6,384,893,000 |
| Carrying Value | $6,260,491,000 |
| Weighted Average Yield to Maturity | 8.4% |
| Weighted Average Term to Initial Maturity | 0.8 years |
| Weighted Average Term to Fully Extended Maturity | 2.1 years |
| Weighted Average Origination LTV | 70.0% |
| Weighted Average Adjusted LTV | 71.6% |
Liquidity and Capital Resources
As of September 30, 2024, Claros Mortgage Trust, Inc. reported the following sources of liquidity:
| Source | Value |
|---|---|
| Cash and Cash Equivalents | $113,920,000 |
| Loan Principal Payments Held by Servicer | $0 |
| Approved and Undrawn Credit Capacity | $2,171,000 |
| Total Sources of Liquidity | $116,091,000 |
Conclusion
Claros Mortgage Trust, Inc. continues to adapt its strategies in response to market dynamics while maintaining a strong focus on its mission to provide value to shareholders through prudent investment and asset management practices.
How Claros Mortgage Trust, Inc. (CMTG) Works
Overview of Operations
Claros Mortgage Trust, Inc. (CMTG) is a commercial real estate finance company organized as a Maryland corporation and operates as a real estate investment trust (REIT). The company focuses on originating, acquiring, and managing a diversified portfolio of commercial real estate loans and other debt investments.
Financial Performance
As of September 30, 2024, CMTG reported a net loss of $56.2 million for the quarter, with a net loss per share of $0.40. The total revenue for the three months was $64.9 million, which included interest and related income of $152.9 million, while interest and related expenses totaled $111.1 million. The company declared dividends of $0.10 per share during this period.
| Financial Metric | Q3 2024 | Q2 2024 |
|---|---|---|
| Net Loss | $56,218,000 | $11,554,000 |
| Net Loss per Share | $(0.40) | $(0.09) |
| Dividends Declared per Share | $0.10 | $0.25 |
| Total Revenue | $64,877,000 | $64,487,000 |
Loan Portfolio
As of September 30, 2024, CMTG's loan portfolio consisted of 57 loans with an unpaid principal balance of $6.4 billion. The weighted average yield to maturity was 8.4%, with a weighted average term to initial maturity of 0.8 years.
| Portfolio Metrics | Value |
|---|---|
| Number of Loans | 57 |
| Loan Commitment | $6,969,066,000 |
| Unpaid Principal Balance | $6,384,893,000 |
| Carrying Value | $6,260,491,000 |
| Weighted Average Spread | +3.91% |
| Weighted Average Interest Rate | 8.70% |
Debt Obligations
CMTG has several debt obligations, including a secured term loan and notes payable. As of September 30, 2024, the secured term loan amounted to $719.7 million with a stated rate of SOFR + 4.50%, resulting in an effective interest rate of 9.45%.
| Debt Type | Amount Outstanding | Interest Rate | Maturity Date |
|---|---|---|---|
| Secured Term Loan | $719,731,000 | 9.45% | 8/9/2026 |
| Notes Payable | $306,994,000 | Varied | Various |
Current Expected Credit Losses (CECL)
As of September 30, 2024, the total CECL reserve was $117.7 million, reflecting potential credit losses in the portfolio. The specific CECL reserve was $111.5 million, indicating a significant focus on managing credit risk.
| CECL Metrics | Value |
|---|---|
| Total CECL Reserve | $117,742,000 |
| Specific CECL Reserve | $111,526,000 |
Recent Developments
In October 2024, CMTG sold two loans generating net liquidity of $51 million. The company continues to evaluate its loan portfolio and adjust its strategy in response to market conditions.
How Claros Mortgage Trust, Inc. (CMTG) Makes Money
Revenue Generation from Loan Portfolio
Claros Mortgage Trust, Inc. primarily generates revenue through interest income from its loan portfolio. For the nine months ended September 30, 2024, the company reported total interest and related income of $468.8 million, down from $526.9 million in the same period of 2023, reflecting a decrease of $58.1 million. The net interest income for the same period was $128.6 million, compared to $177.6 million in 2023, a decline of $49 million.
Breakdown of Loan Portfolio
As of September 30, 2024, CMTG's loans receivable held-for-investment amounted to $6.3 billion with a carrying value of $6.2 billion. The weighted average interest rate for these loans was 7.79%.
| Property Type | Unpaid Principal Balance ($ in thousands) | Carrying Value ($ in thousands) | Weighted Average Interest Rate (%) |
|---|---|---|---|
| Senior Loans | 6,252,668 | 6,129,070 | 7.78 |
| Subordinate Loans | 132,225 | 131,421 | 8.46 |
| Total | 6,384,893 | 6,260,491 | N/A |
Income from Real Estate Owned
CMTG also earns revenue from its real estate owned (REO) assets. For the nine months ended September 30, 2024, revenue from real estate owned was $59.6 million, an increase from $52.9 million in 2023, marking a rise of $6.6 million.
Expenses Overview
Total expenses for the nine months ended September 30, 2024, were $122.4 million, up from $114.6 million in 2023. This increase was primarily due to higher operating expenses from real estate owned and increased interest expense.
| Expense Type | Amount ($ in thousands) |
|---|---|
| Management Fees - Affiliate | 27,300 |
| General and Administrative Expenses | 12,367 |
| Operating Expenses (Real Estate Owned) | 41,466 |
| Interest Expense | 20,098 |
| Total Expenses | 122,405 |
Current Expected Credit Loss (CECL) Reserve
For the nine months ended September 30, 2024, CMTG recorded a provision for current expected credit losses of $182.6 million, significantly higher than the $148.4 million provision in 2023. This increase was attributed to reclassifications of loans to held-for-sale and adjustments in risk ratings.
Net Loss and Shareholder Impact
As of September 30, 2024, CMTG reported a net loss of $120.6 million, compared to a net loss of $28 million in the same period of 2023. The net loss per share was $(0.88) for the nine months ended September 30, 2024, compared to $(0.22) in the previous year.
Liquidity and Capital Resources
CMTG's total assets as of September 30, 2024, were $7.3 billion, while total liabilities stood at $5.2 billion. The company had aggregate unfunded loan commitments of $584.2 million as of the same date, down from $1.1 billion at the end of 2023.
| Financial Metric | Value ($ in thousands) |
|---|---|
| Total Assets | 7,308,073 |
| Total Liabilities | 5,204,114 |
| Total Equity | 2,103,959 |
| Aggregate Unfunded Loan Commitments | 584,200 |
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Updated on 16 Nov 2024
Resources:
- Claros Mortgage Trust, Inc. (CMTG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Claros Mortgage Trust, Inc. (CMTG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Claros Mortgage Trust, Inc. (CMTG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.