Claros Mortgage Trust, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 3 November 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Key takeaways

GAAP net loss narrowed from second quarter: GAAP net loss was $14.3 million, or $0.10 per share, against $255.4 million, or $1.81 per share, in the second quarter of 2026. Source
Four loans resolved in quarter: Four loans with $409.5 million of UPB were resolved: two full repayments of $223.1 million, one loan sale of $111.5 million, and one discounted payoff of $74.9 million. Partial repayments totaled $8.0 million. Source
Watchlist shrank to 11 loans: Watchlist loans were $1.1 billion of carrying value across 11 loans, against 12 loans and $1.2 billion at June 30, 2026. The balance is down $547.2 million from year-end 2025. Source
Two risk rated 5 loan sales agreed: An office loan sale for $65.7 million, 92% of carrying value, and a multifamily loan sale for $245.0 million, 98% of carrying value, became binding in October with nonrefundable deposits. Source
CECL reserve share of UPB rose: CECL reserves were $566.2 million, or 18.5% of UPB, against $567.4 million and 16.9% of UPB at June 30, 2026. Source
Liquidity was $146.9 million: Total liquidity was $146.9 million, including $133.8 million of cash, against $103 million at June 30. At November 2, 2026, liquidity was $142.7 million, including $136.8 million of cash. Source
Net debt-to-equity fell to 1.7x: The net debt-to-equity ratio was 1.7x, against 2.0x at June 30. Adjusted for fourth-quarter loan resolutions and $268.7 million of deleveraging, it was 1.5x. Source

“Over the past seven quarters, our team has focused on executing our strategic priorities of resolving and liquidating watchlist loans, repositioning our REO assets for disposition, and deleveraging the balance sheet”
Richard Mack, Chief Executive Officer and Chairman of CMTG

Guidance

Area	Period	Figure	Against last quarter
Incremental loss on office loan sale Source	Q4 2026	approximately $5.4 million, or ~$0.04 per share	New
Incremental loss on multifamily loan sale Source	Q4 2026	approximately $5.0 million, or ~$0.03 per share	New
Closing of two-hotel REO sale Source	Q1 2027	by Q1 2027	New

What changed from last quarter

New: Agreements to sell an office loan and a multifamily loan became binding in October with nonrefundable deposits. The June release reported only a multifamily REO sale agreement. Source
New: Agreement to sell two of seven REO hotels became binding in October, with closing expected by Q1 2027. Source

Quarterly results and loss drivers

GAAP net loss narrowed from second quarter: GAAP net loss was $14.3 million, or $0.10 per share, against $255.4 million, or $1.81 per share, in the second quarter of 2026. Source
Distributable loss before realized items: Distributable loss was $12.1 million, or $0.08 per share. Before realized gains and losses it was $7.9 million, or $0.05 per share, against $10.5 million, or $0.07 per share, in the second quarter. Source
Small realized charge-offs in quarter: Principal charge-offs in the quarter were $4.9 million, against $44.0 million in the second quarter. The footnote adds a $0.1 million exit fee charge-off on a July multifamily payoff. Source

Loan portfolio and watchlist

Four loans resolved in quarter: Four loans with $409.5 million of UPB were resolved: two full repayments of $223.1 million, one loan sale of $111.5 million, and one discounted payoff of $74.9 million. Partial repayments totaled $8.0 million. Source
Watchlist shrank to 11 loans: Watchlist loans were $1.1 billion of carrying value across 11 loans, against 12 loans and $1.2 billion at June 30, 2026. The balance is down $547.2 million from year-end 2025. Source
No new watchlist or non-accrual loans: No loans were added to the watchlist in the quarter, and no additional loans were placed on non-accrual status. Source
Held-for-investment yield at 5.7%: The held-for-investment loan portfolio was $2.5 billion at a weighted average yield to maturity of 5.7%, against $2.8 billion and 5.8% at June 30, 2026. Source

“The actions we have already taken and the progress we have made better position CMTG to face the most recent rate moves, and we remain steadfast in completing the work ahead.”
Richard Mack, Chief Executive Officer and Chairman of CMTG

REO portfolio and property sales

One multifamily REO asset sold: One multifamily REO asset was sold for gross proceeds of $22.5 million. The REO portfolio was $700.7 million across eight investments, against $723.7 million and nine investments at June 30. Source
Held-for-sale valuation adjustment small: The valuation adjustment on REO held for sale was $4 thousand in the quarter, against $29.6 million in the second quarter. Source

Subsequent events and pending sales

Two risk rated 5 loan sales agreed: An office loan sale for $65.7 million, 92% of carrying value, and a multifamily loan sale for $245.0 million, 98% of carrying value, became binding in October with nonrefundable deposits. Source
Two full repayments after quarter-end: Two full loan repayments totaling $268.7 million of UPB were received after quarter-end, with $0.6 million of partial repayments. Source
Financings fell after quarter-end: Financings outstanding fell $268.7 million after quarter-end, including $131.5 million of deleveraging payments. Source

Credit reserves and book value

CECL reserve share of UPB rose: CECL reserves were $566.2 million, or 18.5% of UPB, against $567.4 million and 16.9% of UPB at June 30, 2026. Source
Book value per share declined: Book value was $8.49 per share, net of $3.93 per share of CECL reserves on UPB, against $8.58 per share at June 30, 2026. Source
Credit loss provision fell sharply: The provision for current expected credit loss reserve was $0.4 million in the quarter, against $208.8 million in the second quarter. Source

Liquidity, leverage and financings

Liquidity was $146.9 million: Total liquidity was $146.9 million, including $133.8 million of cash, against $103 million at June 30. At November 2, 2026, liquidity was $142.7 million, including $136.8 million of cash. Source
Net debt-to-equity fell to 1.7x: The net debt-to-equity ratio was 1.7x, against 2.0x at June 30. Adjusted for fourth-quarter loan resolutions and $268.7 million of deleveraging, it was 1.5x. Source
Total leverage ratio fell to 2.4x: The total leverage ratio was 2.4x, against 2.7x at June 30. Adjusted for the same fourth-quarter items, it was 2.2x. Source
Financings fell $330.1 million: Financings outstanding fell $330.1 million in the quarter, including $99.9 million of deleveraging payments. Source
Unencumbered assets of $664.5 million: Unencumbered assets were $664.5 million, made up of $517.1 million of loan UPB and $147.4 million of REO carrying value. The pool includes one loan fully deleveraged in October. Source

Management structure and priorities

Externally managed by affiliate: CMTG is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. Source
Mack speaks for management: Richard Mack, Chief Executive Officer and Chairman, gave the management statement in the release. Source
Three priorities pursued over seven quarters: Management described three priorities over seven quarters: resolving and liquidating watchlist loans, repositioning REO assets for disposition, and deleveraging the balance sheet. Source

Coming up, as management said on 3 November 2026

Two loan sales expected to close: The office and multifamily loan sales are expected to close in Q4 2026, as stated in the incremental loss estimates. Source
Two-hotel sale expected to close: Closing of the sale of two REO hotels is expected by Q1 2027. Source

Figures management reported

Figure	Reported
Held-for-investment loan portfolio Source	$2.5 billion at 5.7% weighted average yield to maturity
Watchlist loans Source	11 loans, $1.1 billion carrying value
REO investments Source	eight investments, $700.7 million

Risks management discussed

External: Management linked recent rate moves to the company's position, with the remaining work still ahead. Source
Financial: Watchlist exposure remained at 11 loans with $1.1 billion of carrying value at quarter-end. Source
Financial: Completing the two loan sales would add incremental losses, which management estimated for the fourth quarter. Source
Financial: The net debt-to-equity ratio stood at 1.7x at quarter-end, before the pro forma adjustment. Source

Earlier plans management reported on

Not stated: The June release said the company was moving closer to accretive capital allocation decisions. The September release does not state such decisions.
Not stated: Management said it remains committed to completing the work ahead on watchlist resolutions, REO dispositions and deleveraging. 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 Third Quarter 2026 Results

New York, NY, November 3, 2026 - Claros Mortgage Trust, Inc. (NYSE: CMTG) (the “Company” or “CMTG”) today reported its financial results for the quarter ended September 30, 2026. The Company reported GAAP net loss of $14.3 million, or $0.10 per share, for the quarter ended September 30, 2026. Distributable Loss (a non-GAAP financial measure defined below) was $12.1 million, or $0.08 per share, and Distributable Loss prior to realized gains and losses was $7.9 million, or $0.05 per share, for the quarter ended September 30, 2026.

Third Quarter 2026 Highlights

Resolved four loans totaling $409.5 million of UPB and received $8.0 million of partial loan repayments

Two full loan repayments: $223.1 million of UPB

One loan sale: $111.5 million of UPB; watchlist loan

One discounted loan payoff: $74.9 million of UPB; watchlist loan

Sold one multifamily REO asset for gross proceeds of $22.5 million

No loans added to the watchlist and no additional loans placed on non-accrual status

Financings outstanding decreased by $330.1 million, including $99.9 million of deleveraging payments

At September 30, 2026

$2.5 billion held-for-investment loan portfolio with a weighted average yield to maturity of 5.7%

Watchlist loans of $1.1 billion of carrying value (11 loans), down $547.2 million from year-end 2025

CECL reserves of $566.2 million on UPB (18.5%)

$700.7 million REO portfolio consisting of eight investments

Total liquidity of $146.9 million, including $133.8 million of cash

Unencumbered assets of $664.5 million, consisting of $517.1 million of loan UPB ($401.6 million of loan carrying value) and $147.4 million of REO carrying value; includes one loan that was fully deleveraged in October

Net debt-to-equity ratio of 1.7x; 1.5x after adjusting for fourth quarter loan resolutions and deleveraging of $268.7 million

Book value of $8.49 per share, net of $3.93 per share of CECL reserves on UPB

Subsequent Events

Received two full loan repayments totaling $268.7 million of UPB and $0.6 million of partial loan repayments

Financings outstanding decreased by $268.7 million, including $131.5 million of deleveraging payments

Agreements to sell the following assets each of which became binding with nonrefundable purchaser deposits in October

Risk rated 5 unencumbered office loan receivable for gross proceeds of $65.7 million, or 92% of current carrying value; if completed, incremental loss of approximately $5.4 million, or ~$0.04 per share, expected upon Q4 2026 closing

Risk rated 5 multifamily loan receivable for gross proceeds of $245.0 million, or 98% of current carrying value; if completed, incremental loss of approximately $5.0 million, or ~$0.03 per share, expected upon Q4 2026 closing

Two of the seven hotels in our REO hotel portfolio for gross proceeds of $44.5 million, a slight premium to current allocated carrying value; closing expected by Q1 2027

At November 2, 2026, total liquidity of $142.7 million, including $136.8 million of cash

“Over the past seven quarters, our team has focused on executing our strategic priorities of resolving and liquidating watchlist loans, repositioning our REO assets for disposition, and deleveraging the balance sheet,” said Richard Mack, Chief Executive Officer and Chairman of CMTG. “The actions we have already taken and the progress we have made better position CMTG to face the most recent rate moves, and we remain steadfast in completing the work ahead.”

(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 September 30, 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%. As of September 30, 2026, the weighted average spread for accrual and non-accrual floating rate loans was 5.5% and 3.6%, respectively.

Teleconference Details

A conference call to discuss CMTG’s financial results will be held on Wednesday, November 4, 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 913309270.

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/913309270, 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). For both the Company’s entire portfolio and its real estate owned assets, the Company presents Distributable Earnings (Loss) prior to realized gains and losses, which such gains and losses include, as applicable, (i) charge-offs and recoveries of principal, accrued interest receivable, and/or exit fees and (ii) gains, losses, and components thereof recognized in connection with real estate owned assets, 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, exit fees, and gains, losses, and components thereof in connection with real estate owned assets are recognized through Distributable Earnings (Loss) when deemed non-recoverable and/or recognized. 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 of the warrants exceeds the average share price of our common stock during such period.

Net Debt-to-Equity Ratio and Total Leverage Ratio:

Net Debt-to-Equity Ratio and Total Leverage Ratio are non-GAAP measures that we use to evaluate our financial leverage, which in the case of our Total Leverage Ratio, makes certain adjustments that we believe provide a more conservative measure of our financial condition.

Net Debt-to-Equity Ratio is calculated as the ratio of asset-specific debt (i.e., repurchase agreements, term participation facility, notes payable, net, and debt related to real estate owned hotel portfolio, net) and secured term loan, less cash and cash equivalents to total equity. Total Leverage Ratio is similar to Net Debt-to-Equity Ratio; however, it includes non-consolidated senior interests sold and non-consolidated senior interests held by third parties. Non-consolidated senior interests sold and non-consolidated senior interests held by third parties, as applicable, are secured by the same collateral as our loan and are structurally senior in repayment priority relative to our loan. We believe the inclusion of non-consolidated senior interests sold and non-consolidated senior interests held by third parties provides a meaningful measure of our financial leverage. Pro forma adjustments to September 30, 2026 ratios reflect $268.7 million of loan repayments subsequent to September 30, 2026 and the related decrease in financings.

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

Reconciliation of GAAP Net Loss to Distributable Loss

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

	Three MonthsEnded	Three MonthsEnded
	September 30, 2026	June 30, 2026
Net loss:	$(14,257)	$(255,431)
Adjustments:
Non-cash stock-based compensation expense	1,442	1,489
Provision for current expected credit loss reserve	387	208,839
Recovery of principal charge-offs	(733)	(1,949)
Depreciation and amortization expense	4,453	6,144
Amortization of above and below market lease values, net	(38)	257
Amortization of discount on secured term loan	843	843
Valuation adjustment for real estate owned held-for-sale	4	29,623
Gain on sale of real estate owned	-	(341)
Distributable loss prior to realized gains and losses	$(7,899)	$(10,526)
Principal charge-offs	(4,884)	(43,983)
Recovery of principal charge-offs	733	1,949
Valuation adjustment for real estate owned held-for-sale	(4)	(29,623)
Gain on sale of real estate owned	-	341
Previously recognized depreciation and amortization on real estate owned	-	(1,346)
Previously recognized depreciation and amortization on real estate owned held-for-sale	-	(7,636)
Distributable loss	$(12,054)	$(90,824)
Weighted average diluted shares - Distributable loss	144,268,666	144,355,385
Diluted Distributable loss per share prior to realized gains and losses	$(0.05)	$(0.07)
Diluted Distributable loss per share	$(0.08)	$(0.63)

1. For the three months ended September 30, 2026, amount includes a $0.1 million charge-off of an exit fee related to the discounted payoff of a multifamily loan in July 2026. For the three months ended June 30, 2026, amount includes a $0.4 million charge-off of accrued interest receivable related to the mortgage foreclosure on a multifamily property in May 2026.

2. Reflects previously recognized depreciation and amortization on the multifamily real estate owned asset that was sold during the three months ended June 30, 2026. Amounts recorded were not previously recognized in Distributable Earnings (Loss).

3. Reflects previously recognized depreciation and amortization on (i) the mixed-use real estate owned asset and (ii) one of the multifamily real estate owned assets upon reclassification of the respective assets to held-for-sale during the three months ended June 30, 2026. Amounts recorded were not previously recognized in Distributable Earnings (Loss).

Calculation of Net Debt-to-Equity Ratio and Total Leverage Ratio

(Amounts in thousands, except ratio data)

	September 30, 2026
Asset specific debt	$1,769,003
Secured term loan, net	469,947
Total debt	2,238,950
Less: cash and cash equivalents	(133,764)
Net Debt	$2,105,186
Total Equity	$1,225,186
Net Debt-to-Equity Ratio	1.7x
Non-consolidated senior loans	$830,000
Total Leverage	$2,935,186
Total Leverage Ratio	2.4x

1. Adjusted for fourth quarter loan resolutions and deleveraging of $268.7 million, net debt-to-equity and total leverage ratios declined to 1.5x and 2.2x, respectively.

Contacts
Investor Relations: Claros Mortgage Trust, Inc. · 212-484-0050 · cmtgIR@mackregroup.com
Media Relations: Financial Profiles · Moira Conlon · 310-622-8220 · mconlon@finprofiles.com