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Claros Mortgage Trust, Inc. Announces Tax Treatment of 2021 Dividends

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NEW YORK, February 28, 2022--(BUSINESS WIRE)--Claros Mortgage Trust, Inc. (NYSE: CMTG) (the "Company" or "CMTG") today announced the tax treatment of its 2021 common stock dividends. The following table summarizes CMTG’s common stock dividend payments per share for the tax year ended December 31, 2021:

Record

Date

Payment

Date

Distribution

per Share(1)

Adjustment

Dividend(2)

Ordinary

Dividends(3)

Qualified

Dividends

Capital Gain

Dividends

12/22/2020

1/4/2021

$0.37

($0.36)

$0.01

$0.0103

$0.0000

$0.0002

3/19/2021

4/1/2021

$0.37

$0.00

$0.37

$0.3632

$0.0000

$0.0068

6/16/2021

7/7/2021

$0.37

$0.00

$0.37

$0.3632

$0.0000

$0.0068

9/17/2021

10/8/2021

$0.37

$0.00

$0.37

$0.3632

$0.0000

$0.0068

12/31/2021

1/15/2022

$0.37

($0.21)

$0.16

$0.1612

$0.0000

$0.0030

$1.85

($0.57)

$1.28

$1.2611

$0.0000

$0.0236

  1. On October 6, 2021, the Company effected a 1-for-2 reverse stock split of its common stock. The distribution per share amounts have been restated to reflect the effect of the reverse stock split for all periods presented. If, for example, on March 19, 2021, you held 100 shares in the Company, you would have received a distribution of $18.50 (100/2 x $0.37) on April 1, 2021. Of that amount, $18.16 (100/2 x $0.3632) would be classified as an ordinary dividend while $0.34 (100/2 x $0.0068) would be classified as a capital gain dividend.

  2. Pursuant to IRC Section 857(b)(9), cash distributions made on January 15, 2022 with a record date of December 31, 2021 are treated as received by shareholders on December 31, 2021 to the extent of 2021 earnings and profits. As the Company’s aggregate 2021 dividends declared exceeded its 2021 earnings and profits, a portion of the January 2022 cash distribution declared in the fourth quarter of 2021 was treated as a 2022 distribution for federal income tax purposes and not included on the 2021 Form 1099. If you were a stockholder of record as of December 31, 2021, $0.16 per share is reported on your 2021 Form 1099 and $0.21 per share will be reported on your 2022 Form 1099. Similarly, cash distributions made on January 4, 2021 with a record date of December 22, 2020 were treated as received by shareholders on December 31, 2020 to the extent of 2020 earnings and profits. As the Company’s aggregate 2020 dividends declared exceeded its 2020 earnings and profits, a portion of the January 2021 cash distribution declared in the fourth quarter of 2020 was treated as a 2021 distribution for federal income tax purposes and not included on the 2020 Form 1099. If you were a stockholder of record as of December 31, 2020, $0.01 per share is reported on your 2021 Form 1099 and $0.36 per share was reported on your 2020 Form 1099.

  3. Ordinary dividends that are "qualified REIT dividends" are eligible for the 20% deduction under IRC Section 199A(b)(1)(B). Shareholders are encouraged to consult with their own tax advisors as to their specific tax treatment of the Company's distributions.

About Claros Mortgage Trust, Inc.

CMTG is a real estate investment trust that is focused primarily on originating senior and subordinate loans on transitional commercial real estate assets located in major markets across the U.S. CMTG is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. Additional information can be found on the Company’s website at www.clarosmortgage.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220228005488/en/

Contacts

Investor Relations:
Claros Mortgage Trust, Inc.
Anh Huynh
212-484-0090
cmtgIR@mackregroup.com

Media Relations:
Financial Profiles
Kelly McAndrew
203-613-1552
Kmcandrew@finprofiles.com