Claros Mortgage Trust (CMTG) Q2 2026 earnings summary

Executive summary

• Reported a GAAP net loss of $255.4 million ($1.81 per share) for Q2 2026, driven by a $208.8 million provision for CECL reserves and $29.6 million in losses from reclassifying REO assets to held-for-sale.

• Distributable loss was $90.8 million ($0.63 per share), with distributable loss prior to realized gains and losses at $10.5 million ($0.07 per share).

• Book value per share declined to $8.58, mainly due to CECL reserves and REO markdowns on nine positions; adjusted book value per share was $9.06.

• Significant progress made in resolving watchlist assets, reducing watchlist loans from $2.7 billion at 2024 year-end to $1.1 billion post-July resolutions.

• No dividends were declared for the six months ended June 30, 2026.

Financial highlights

• Loan portfolio of $2.8 billion (held-for-investment), 96% floating-rate and 96% senior loans.

• Portfolio now consists of 23 loans ($3.1 billion UPB) and nine REO assets ($724 million carrying value).

• CECL reserves stood at $567.4 million, or $3.93 per share, representing 16.9% of UPB.

• Liquidity increased from $103 million at quarter-end to $168 million by July 24, 2026.

• Net debt-to-equity ratio was 2.0x at quarter-end, declining to 1.7x after July resolutions; total leverage ratio was 2.7x, declining to 2.4x post-quarter.

Outlook and guidance

• New loan originations expected to resume in late 2026 or early 2027, contingent on further reduction of watchlist assets and continued de-leveraging.

• Management expects continued portfolio resolutions, including loan repayments, sales, and asset sales, to drive liquidity and deleveraging.

• No guidance provided on future dividends; capital deployment will depend on market conditions and liquidity needs.