GICS Sector : Real Estate
Claros Mortgage Trust, Inc.is a real estate investment trust that focuses primarily on originating senior and subordinate loans on transitional commercial real estate assets located in principal markets across the United States.The company is qualified as a real estate investment trust (REIT) under the Internal Revenue Code.
Claros Mortgage Trust (CMTG) reported a GAAP net loss of $0.07 per share and a distributable loss of $0.15 per share for the third quarter of 2025, missing analyst estimates of -$0.01 EPS. The company's held-for-investment loan portfolio decreased to $4.3 billion at September 30, primarily due to loan resolutions and reclassification of a loan to held for sale. CMTG's total CECL reserve on loans at September 30 was $308 million, or 6.8% of UPB.
Publication Date: Nov -21
CMTG has made significant progress in resolving watch list loans, with $2.3 billion in total resolutions, including $81 million in partial repayments and 9 watch list loans totaling $1.1 billion of unpaid principal balance (UPB). The company has also improved liquidity by $283 million to $385 million and reduced total borrowings by $1.4 billion. As Priyanka Garg mentioned, the company is actively negotiating with borrowers in the risk 4 category to come to a reasonable modification, which could result in an upgrade.
Regarding the term loan, CMTG has entered into an amendment to the terms, including a modification and waiver of certain financial covenants through March 31, 2026. The company will make a principal repayment of $150 million on the term loan, bringing the balance outstanding to around $562 million. CMTG expects to consummate a refinancing or extension of the term loan in the coming months.
The company's REO portfolio is expected to increase in size in the near term, with 4 multifamily loans anticipated to become REO. The current yield on the REO portfolio is around a mixed bag, with hotels yielding low to mid-teens and multifamily yields between very low single digits to 6% on an unlevered basis. As Priyanka Garg explained, the yield on multifamily assets is expected to increase over time.
With a P/B Ratio of 0.22 and an EV/EBITDA of -12.25, the market seems to have priced in the challenges faced by CMTG. Analysts estimate next year's revenue growth at 10.5%. The company's focus on loan resolutions and deleveraging has strengthened its balance sheet, positioning it well to address the August 2026 term loan maturity. As Richard Mack summarized, CMTG is operating in a healing capital markets environment, creating value and preparing to refinance the Term Loan B and resume originations.
Claros Mortgage Trust, Inc. (CMTG) Q3 2025 Earnings Call Transcript
Nov -06
Claros Mortgage Trust, Inc. Reports Third Quarter 2025 Results
Nov -05
Claros Mortgage Trust, Inc. Announces Dates for Third Quarter 2025 Earnings Release and Conference Call
Oct -22
Claros Mortgage Trust, Inc. (CMTG) Q2 2025 Earnings Call Transcript
Aug -08
Claros Mortgage Trust, Inc. Reports Second Quarter 2025 Results
Aug -06
Claros Mortgage Trust, Inc. (CMTG) Could Find a Support Soon, Here's Why You Should Buy the Stock Now
Aug -04
Claros Mortgage Trust, Inc. Announces Dates for Second Quarter 2025 Earnings Release and Conference Call
Jul -23
Squarepoint Ops LLC Purchases Shares of 10,216 Claros Mortgage Trust, Inc. (NYSE:CMTG)
Jun -11
Growing demand for mortgage-backed securities, increasing housing market activity, and rising interest in fixed-income investments drive growth in Claros Mortgage Trust, Inc.'s loan offerings.
The REO segment of Claros Mortgage Trust, Inc. is expected to grow driven by increasing foreclosure rates, government-backed mortgage delinquencies, and the company's strategic expansion into new markets, resulting in a forecasted CAGR of 4.5% from 2023 to 2028.
Claros Mortgage Trust, Inc. offers a range of residential mortgage loans to individuals and families, providing financing options for purchasing or refinancing homes.
The company provides commercial mortgage loans to businesses and investors, enabling them to acquire or refinance commercial properties.
Claros Mortgage Trust, Inc. offers construction loans to developers and builders, providing financing for ground-up construction projects.
The company provides bridge loans to borrowers who need short-term financing to acquire or refinance properties.
Claros Mortgage Trust, Inc. offers mezzanine financing to borrowers who need additional capital to complete a project or acquire a property.
The threat of substitutes for Claros Mortgage Trust, Inc. is medium due to the presence of alternative mortgage financing options, but the company's strong brand and customer loyalty mitigate this threat.
The bargaining power of customers is low for Claros Mortgage Trust, Inc. due to the company's strong market position and limited customer concentration.
The bargaining power of suppliers is medium for Claros Mortgage Trust, Inc. due to the company's dependence on a few large suppliers, but the company's strong relationships with these suppliers mitigate this threat.
The threat of new entrants is high for Claros Mortgage Trust, Inc. due to the relatively low barriers to entry in the mortgage financing industry and the attractiveness of the market.
The intensity of rivalry is high for Claros Mortgage Trust, Inc. due to the highly competitive nature of the mortgage financing industry and the presence of several large and established players.
| Value | |
|---|---|
| Debt Weight | 63.71% |
| Debt Cost | 3.95% |
| Equity Weight | 36.29% |
| Equity Cost | 11.98% |
| WACC | 6.86% |
| Leverage | 175.52% |
Value: 7.7
Growth: 4.6
Quality: 7.8
Yield: 10.0
Momentum: 3.5
Volatility: 7.7
1-Year Total Return ->
Value: 6.0
Growth: 5.2
Quality: 5.8
Yield: 10.0
Momentum: 5.5
Volatility: 7.7
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Value: 6.3
Growth: 2.4
Quality: 6.2
Yield: 10.0
Momentum: 7.5
Volatility: 7.3
1-Year Total Return ->
Value: 7.4
Growth: 0.2
Quality: 2.7
Yield: 10.0
Momentum: 4.0
Volatility: 5.3
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Value: 5.2
Growth: 1.4
Quality: 3.8
Yield: 10.0
Momentum: 1.5
Volatility: 5.7
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Value: 7.5
Growth: 1.2
Quality: 2.8
Yield: 5.0
Momentum: 0.5
Volatility: 2.7
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