Claros Mortgage Trust (CMTG) Q1 2026 earnings summary

Executive summary

• Reported a GAAP net loss of $54.3 million ($0.39 per share) and distributable loss of $75.2 million ($0.52 per share) for Q1 2026; distributable loss prior to realized losses was $7.5 million ($0.05 per share).

• Book value per share at quarter-end was $10.33, with adjusted book value per share at $10.83.

• Resolved five loans totaling $608.8 million UPB, including repayments, loan sale, foreclosure, and assignment; entered a binding agreement post-quarter to sell a multifamily REO asset for $48.0 million.

• Continued focus on portfolio turnover, watchlist loan resolution, REO repositioning, and deleveraging.

• No dividends were declared for Q1 2026 as the board paused quarterly dividends in December 2024 to preserve capital.

Financial highlights

• Held for investment loan portfolio declined to $3.2 billion from $3.7 billion sequentially, with a weighted average all-in yield of 5.6%.

• Hospitality exposure reduced from $807 million to $592 million; land exposure from $187 million to $120 million.

• CECL reserves totaled $398.9 million (11.4% of UPB), with 96% related to watchlist loans.

• Net debt-to-equity ratio improved to 1.7x at quarter-end; total leverage ratio was 2.2x.

• Liquidity at quarter end was $132 million, including $117 million in cash.

Outlook and guidance

• Strategic priorities remain focused on resolving watchlist loans, deleveraging, and repositioning REO assets.

• Watchlist loans declined 15% from year-end to $1.4 billion (13 loans) at March 31, 2026.

• Plans to evaluate new capital deployment opportunities later in the year, including new originations and share repurchases.

• Expect continued reduction in non-accrual and watchlist loans through active sale processes.

• Management expects continued pressure on credit quality and loan performance due to elevated interest rates and challenging CRE market conditions.