Claros Mortgage Trust (CMTG) Q4 2025 earnings summary

Executive summary

• Reported a GAAP net loss of $219.2 million ($1.56 per share) for Q4 2025 and $489.1 million ($3.49 per share) for the full year; distributable loss was $101.7 million for Q4 and $269.0 million for the year.

• Distributable earnings prior to realized gains/losses were $2.9 million ($0.02 per share) for Q4 and $35.2 million ($0.24 per share) for the year.

• Resolved 21 loans totaling $2.5 billion UPB in 2025, including 11 watch list loans with $1.3 billion UPB.

• Retired $718 million Term Loan B, replacing it with a $500 million senior secured loan from HPS, extending debt maturity to 2030.

• Focus remains on resolving watch list loans, asset management, and preparing for new lending opportunities in late 2026.

Financial highlights

• Provision for CECL reserves was $211.7 million in Q4; year-end CECL reserves were $443.1 million (10.9% of UPB).

• Book value per share at year-end was $10.69, with adjusted book value at $11.33.

• Loan portfolio declined to $3.7 billion at year-end 2025 from $6.1 billion at year-end 2024, with a weighted average all-in yield of 6.2%.

• Net debt-to-equity ratio decreased to 1.9x at year-end.

• Liquidity at year-end was $185 million, including $173 million in cash; as of February 17, 2026, liquidity was $153 million.

Outlook and guidance

• Watch list loans declined 45% year-over-year to $1.5 billion (13 loans) pro-forma for Q1 2026 resolutions.

• Anticipates gradual improvement in real estate markets, with no single catalyst for recovery.

• Focused on accelerating loan and REO asset dispositions in 2026, with a goal to clean up the portfolio and prepare for growth.

• Evaluating capital allocation options for available liquidity, including new originations and further deleveraging.

• Entering 2026 with momentum to advance strategy and reposition the portfolio.