CMTG · Claros Mortgage Trust, Inc.

Claros Mortgage Trust reported a Q1 2026 GAAP net loss of $54.3 million, or $0.39 per diluted share, an improvement from the prior quarter's $219.2 million loss, driven by a $31.4 million provision for CECL reserves and $61.9 million in principal charge-offs, partially offset by non-cash adjustments including $6.4 million depreciation and $5.9 million loss on debt extinguishment. Non-GAAP distributable loss was $75.2 million ($0.52/share), with distributable loss prior to realized losses at $7.5 million ($0.05/share), reflecting core operating performance before significant resolutions. Key drivers included resolution of five watchlist loans totaling $608.8 million UPB through two full repayments ($240.8M), one sale ($220M at 90% recovery), one foreclosure ($76.6M multifamily in Dallas), and one assignment ($71.4M), reducing watchlist exposure by 15% to $1.4 billion across 13 loans. CECL reserves stood at $398.9 million (11.4% of UPB), with specific reserves at 26.8% on risk-rated 5 loans primarily in multifamily, office, and land. The $3.2 billion loan portfolio yielded 5.6% weighted average all-in (down from 6.2%), with 96% floating-rate and senior loans diversified across multifamily (44%), hospitality (19%), and office (17%). Balance sheet deleveraging advanced with net financings down $489 million to $2.7 billion, including $142 million paydowns and refinancing a $500 million secured term loan maturing 2030 to replace a $556 million prior facility; net debt/equity fell to 1.7x from 1.9x. Liquidity was $132 million ($117M cash) at quarter-end, dipping to $116 million ($103M cash) by May 5. REO assets ($780M carrying value) contributed $0.04/share distributable loss due to hotel seasonality. CEO Richard Mack highlighted progress on watchlist resolutions and deleveraging to redeploy capital, amid market uncertainty. Book value was $10.33/share, down from $10.69 prior quarter. Subsequent events included a $25.4M watchlist foreclosure and binding $48M REO sale agreement.