Claros Mortgage Trust, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 6 May 2026: press release. The quarter’s numbers.

Key takeaways

GAAP net loss of $54.3 million: Net loss was $54.3 million, or $0.39 per share, against $219.2 million, or $1.56 per share, in the fourth quarter of 2025. Source
Distributable Loss of $75.2 million: Distributable Loss was $75.2 million, or $0.52 per share, against $101.7 million, or $0.71 per share, in the fourth quarter. Before realized losses it was $7.5 million, or $0.05 per share. Source
Five loans resolved for $608.8 million: Five loans totaling $608.8 million of UPB were resolved in the quarter, against five loans totaling $483.9 million in the fourth quarter. Source
Reserves at 11.4% of UPB: Reserves were about 11.4% of UPB, made up of specific reserves of 26.8% on risk rated 5 loans and general reserves of 2.3% on remaining loans. Source
Binding sale of multifamily REO: A binding agreement was signed to sell a multifamily REO asset for a gross sales price of $48.0 million, against a quarter-end carrying value of $46.8 million. Source
Net financings down $489 million: Net financings outstanding fell by $489 million, including $142 million of deleveraging payments. Source
Book value of $10.33 per share: Book value was $10.33 per share, against $10.69 at year-end 2025. Net debt to equity was 1.7x, against 1.9x. Source

“We had a productive start to 2026, executing well on our strategic priorities, including making meaningful progress on watchlist loans,”
Richard Mack, Chief Executive Officer and Chairman of CMTG

What changed from last quarter

New: The company entered a binding agreement to sell a multifamily REO asset for a gross sales price of $48.0 million, against a quarter-end carrying value of $46.8 million. Source

Quarterly results

GAAP net loss of $54.3 million: Net loss was $54.3 million, or $0.39 per share, against $219.2 million, or $1.56 per share, in the fourth quarter of 2025. Source
Distributable Loss of $75.2 million: Distributable Loss was $75.2 million, or $0.52 per share, against $101.7 million, or $0.71 per share, in the fourth quarter. Before realized losses it was $7.5 million, or $0.05 per share. Source
Realized losses account for gap: The gap between the two Distributable measures reflects realized losses. The reconciliation shows principal charge-offs of $61.9 million and a $5.9 million loss on extinguishment of debt. Source

Loan resolutions and watchlist

Five loans resolved for $608.8 million: Five loans totaling $608.8 million of UPB were resolved in the quarter, against five loans totaling $483.9 million in the fourth quarter. Source
Two full repayments of $240.8 million: Two full repayments totaled $240.8 million of UPB, one of them a watchlist loan. Source
Watchlist loan sold at 90% recovery: A $220.0 million UPB watchlist loan was sold at a gross recovery of 90%. Source
Dallas foreclosure and loan assignment: A $76.6 million UPB watchlist loan on a Dallas multifamily property was taken through mortgage foreclosure. A $71.4 million UPB watchlist loan was assigned to the lender. Source
Further Dallas foreclosure after quarter-end: After quarter-end, one watchlist loan on a Dallas multifamily property was foreclosed at $25.4 million of UPB, and $8.0 million of partial loan repayments were received. Source

“Our actions during the quarter further reduced portfolio risk and advanced our deleveraging efforts.”
Richard Mack, Chief Executive Officer and Chairman of CMTG

Credit reserves and charge-offs

CECL provision of $31.4 million: The CECL provision was $31.4 million, or $0.22 per share, down from $211.7 million, or $1.48 per share, in the fourth quarter. Source
Total CECL reserves of $398.9 million: Total CECL reserves were $398.9 million on UPB at quarter-end, or $2.76 per share. Source
Reserves at 11.4% of UPB: Reserves were about 11.4% of UPB, made up of specific reserves of 26.8% on risk rated 5 loans and general reserves of 2.3% on remaining loans. Source

REO assets and sale agreement

REO hotel seasonality cut result: REO assets generated Distributable Loss of $0.04 per share, net of financing costs, which management attributed primarily to expected seasonality of the REO hotel portfolio. Source
Binding sale of multifamily REO: A binding agreement was signed to sell a multifamily REO asset for a gross sales price of $48.0 million, against a quarter-end carrying value of $46.8 million. Source
Fourth-quarter REO comparison: In the fourth quarter, REO assets generated $0.03 per share of distributable earnings before realized gains and losses, net of financing costs, a different measure from the first-quarter figure.

Portfolio yield and unencumbered assets

Loan book of $3.2 billion at 5.6%: The loan portfolio was $3.2 billion at quarter-end, with a weighted average all-in yield of 5.6%, against $3.7 billion and 6.2% at year-end 2025. Source
Unencumbered assets of $538 million: Unencumbered assets were $538 million, made up of $363 million of loan UPB and $175 million of REO carrying value. Source
Unfunded commitments down to $5 million: Net unfunded loan commitments fell to $5 million, from $12 million at year-end 2025. Source

Liquidity, financing and book value

Liquidity of $132 million at quarter-end: Total liquidity was $132 million at quarter-end, including $117 million of cash. Source
Liquidity of $116 million by May 5: At May 5, 2026, total liquidity was $116 million, including $103 million of cash. Source
Net financings down $489 million: Net financings outstanding fell by $489 million, including $142 million of deleveraging payments. Source
New 2030 secured term loan closed: A new $500 million secured term loan maturing in 2030 was closed, and its proceeds were used to fully retire the prior secured term loan. Source
Book value of $10.33 per share: Book value was $10.33 per share, against $10.69 at year-end 2025. Net debt to equity was 1.7x, against 1.9x. Source

Strategy and management view

Strategic priorities executed in quarter: Management said the company executed well on its strategic priorities, including meaningful progress on watchlist loans. Source
Resilience cited alongside uncertainty: Management said it was encouraged by signs of resilience across real estate capital markets. Source
Portfolio risk reduced by actions: Management said the quarter's actions reduced portfolio risk and advanced the deleveraging efforts. Source

Coming up, as management said on 6 May 2026

Binding REO sale pending: The binding sale of the multifamily REO asset was signed; the release does not state a closing date. Source
Continued portfolio turnover planned: Management said the progress positions it to keep turning over the portfolio and redeploying capital. Source

Figures management reported

Figure	Reported
Loan portfolio Source	$3.2 billion
Loans resolved Source	5

Risks management discussed

Operational: Management attributed the REO loss mainly to expected hotel seasonality. Source
Financial: The quarter included a charge-off of accrued interest and an exit fee tied to the March sale of a hospitality loan. Source
External: Management said uncertainty continues to shape the broader market environment. Source

Earlier plans management reported on

Not stated: Management referred to executing on its strategic priorities; the release gives no dated target for them. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Reports First Quarter 2026 Results

New York, NY, May 6, 2026 - Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today reported its financial results for the quarter ended March 31, 2026. The Company reported GAAP net loss of $54.3 million, or $0.39 per share, for the quarter ended March 31, 2026. Distributable Loss (a non-GAAP financial measure defined below) was $75.2 million, or $0.52 per share, and Distributable Loss prior to realized losses was $7.5 million, or $0.05 per share, for the quarter ended March 31, 2026.

First Quarter 2026 Highlights

Resolved five loans totaling $608.8 million of UPB.

Two full repayments: $240.8 million of UPB - includes one watchlist loan.

One loan sale: $220.0 million of UPB - watchlist loan, gross recovery of 90%.

One mortgage foreclosure: $76.6 million of UPB - watchlist loan collateralized by a multifamily property in the Dallas MSA.

One assignment to lender: $71.4 million of UPB - watchlist loan.

Provision for CECL reserves of $31.4 million, or $0.22 per share, for the quarter; as of quarter-end, CECL reserves of $398.9 million on UPB, or $2.76 per share.

Approximately 11.4% of UPB at quarter-end, comprised of (i) specific reserves of 26.8% of UPB of risk rated 5 loans and (ii) general reserves of 2.3% of UPB of remaining loans.

REO assets generated Distributable Loss of $0.04 per share for the quarter, net of financing costs, primarily due to expected seasonality of REO hotel portfolio.

Closed a new $500 million secured term loan maturing in 2030; proceeds used to fully retire prior secured term loan.

At March 31, 2026:

$3.2 billion loan portfolio with a weighted average all-in yield of 5.6%.

Total liquidity of $132 million, including $117 million of cash.

Unencumbered assets of $538 million, consisting of $363 million of loan UPB and $175 million of REO carrying value.

Net unfunded loan commitments decreased to $5 million.

Net financings outstanding decreased by $489 million, including $142 million of deleveraging payments.

Net debt / equity ratio of 1.7x.

Book value of $10.33 per share.

Subsequent Events

Resolved one watchlist loan through a mortgage foreclosure of a multifamily property in the Dallas MSA representing $25.4 million of UPB and received $8.0 million in partial loan repayments.

Entered into a binding agreement to sell a multifamily REO asset for a gross sales price of $48.0 million; relative carrying value at quarter-end of $46.8 million.

At May 5, 2026, total liquidity of $116 million, including $103 million of cash.

“We had a productive start to 2026, executing well on our strategic priorities, including making meaningful progress on watchlist loans,” said Richard Mack, Chief Executive Officer and Chairman of

CMTG. “While uncertainty continues to shape the broader market environment, we are encouraged by signs of resilience across real estate capital markets. Our actions during the quarter further reduced portfolio risk and advanced our deleveraging efforts. We believe this progress positions us to continue turning over the portfolio in order to redeploy capital into more accretive opportunities.”

(1) Represents the weighted average annualized yield to initial maturity of each loan held-for-investment, inclusive of coupon and contractual fees, based on the applicable floating benchmark rate/floors (if applicable), in place as of March 31, 2026. For loans placed on non-accrual, the annualized yield to initial maturity used in calculating the weighted average annualized yield to initial maturity is 0%.

Teleconference Details

A conference call to discuss CMTG’s financial results will be held on Thursday, May 7, 2026, at 10:00 a.m. ET. The conference call may be accessed by dialing 1-833-461-5787 and referencing the Claros Mortgage Trust, Inc. teleconference call; access code 565280844.

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 visiting https://events.q4inc.com/attendee/565280844, 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

Forward-looking statements notice

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 held-for-investment 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 (Loss) prior to realized gains and losses, which such gains and losses include charge-offs of principal, accrued interest receivable, and/or exit fees, 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 (Loss) 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 (Loss) 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 (Loss) prior to realized gains and losses may not be comparable to the Distributable Earnings (Loss) and Distributable Earnings (Loss) 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 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gain, as dividends. Distributable Earnings (Loss), Distributable Earnings (Loss) prior to realized gains and losses, and other similar measures, have historically been a useful indicator over time of a mortgage REIT’s ability to cover its dividends, and to mortgage REITs themselves in determining the amount of any dividends to declare. Distributable Earnings (Loss) and Distributable Earnings (Loss) prior to realized gains and losses are key factors, among others, considered by our Board in determining the dividend each quarter and as such the Company believes Distributable Earnings (Loss) and Distributable Earnings (Loss) prior to realized gains and losses are also useful to investors.

While Distributable Earnings (Loss) excludes the impact of our provision for or reversal of current expected credit loss reserve, charge-offs of principal, accrued interest receivable, and/or exit fees 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 or anticipated to be 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.

In determining Distributable Earnings (Loss) per share and Distributable Earnings (Loss) per share prior to realized gains and losses, the dilutive effects of unvested RSUs and warrants outstanding are considered. The weighted average diluted shares outstanding used for Distributable Earnings (Loss) and Distributable Earnings (Loss) per share prior to realized gains and losses have been adjusted from weighted average diluted shares under GAAP to include weighted average unvested RSUs and warrants outstanding, if the exercise price exceeds the average share price of our common stock during such period.

Book Value per Share:

Book Value per share is calculated as (i) total equity divided by (ii) number of shares of common stock outstanding and RSUs at period end.

Contact Information

Financial Profiles

Kelly McAndrew

203-613-1552

Kmcandrew@finprofiles.com

Reconciliation of GAAP Net Loss to Distributable Loss

(Amounts in thousands, except share and per share data)

	Three Months Ended	Three MonthsEnded
	March 31, 2026	December 31, 2025
Net loss:	$(54,294)	$(219,211)
Adjustments:
Non-cash stock-based compensation expense	2,317	2,242
Provision for current expected credit loss reserve	31,372	211,681
Depreciation and amortization expense	6,399	5,731
Amortization of above and below market lease values, net	258	258
Amortization of discount on secured term loan	569	-
Loss on extinguishment of debt	5,898	847
Loss on partial sales of real estate owned	-	1,382
Distributable (loss) earnings prior to realized losses	$(7,481)	$2,930
Loss on extinguishment of debt	(5,898)	(847)
Principal charge-offs	(61,861)	(102,222)
Loss on partial sales of real estate owned	-	(1,382)
Previously recognized depreciation and amortization on partial real estate owned sold	-	(142)
Distributable loss	$(75,240)	$(101,663)
Weighted average diluted shares - Distributable loss	143,460,120	142,956,410
Diluted Distributable (loss) earnings per share prior to realized losses	$(0.05)	$0.02
Diluted Distributable loss per share	$(0.52)	$(0.71)

1. For the three months ended March 31, 2026, amount includes a $12.9 million charge-off of accrued interest receivable and a $0.3 million charge-off of an exit fee related to the sale of a hospitality loan in March 2026. For the three months ended December 31, 2025, amount includes a $16.9 million charge-off of accrued interest receivable related to the foreclosure on a land parcel in December 2025 and the mortgage foreclosure of a multifamily property in January 2026.

2. For the three months ended December 31, 2025, amounts reflect previously recognized depreciation and amortization on the portions of our mixed-use real estate owned asset that were sold. Amounts not previously recognized in Distributable Earnings (Loss).

Contacts
Anh Huynh
212-484-0090 cmtgIR@mackregroup.com