Claros Mortgage Trust Inc (CMTG) Reports Q3 2023 Loss of $68.9 Million
Claros Mortgage Trust Inc (NYSE:CMTG) reported a GAAP net loss of $68.9 million for Q3 2023.
The company's distributable loss was $22.8 million, or $0.16 per diluted share.
CMTG's loan portfolio stood at $7.1 billion with a weighted average all-in yield of 9.5%.
The company repaid $317 million in financings during the third quarter.
Claros Mortgage Trust Inc (NYSE:CMTG) released its financial results for the quarter ended September 30, 2023, on October 31, 2023. The company reported a GAAP net loss of $68.9 million, or $0.50 per diluted share of common stock. The distributable loss, a non-GAAP financial measure, was $22.8 million, or $0.16 per diluted share of common stock. Prior to realized gain and principal charge-off, distributable earnings were $49.6 million, or $0.35 per diluted share of common stock.
Financial Highlights
CMTG's loan portfolio for Q3 2023 stood at $7.1 billion with a weighted average all-in yield of 9.5%. The company received loan repayment proceeds of $287 million, including $248 million from four full loan payments. It executed two loan sales generating proceeds of $188 million, including a loan collateralized by a portfolio of multifamily assets located in San Francisco, CA, and a hospitality loan located in Austin, TX. The company recognized a $73 million principal charge-off in connection with the sale of the San Francisco multifamily loan.
The company repaid $317 million in financings during the third quarter and funded approximately $174 million of follow-on fundings related to the existing loan portfolio. CECL reserves increased by $0.27 per share to $1.10 per share at September 30, 2023, from $0.83 per share at June 30, 2023. Total liquidity of $432 million consisted of $307 million of cash and $124 million of approved and undrawn credit capacity. The company paid a cash dividend of $0.25 per share of common stock for the third quarter of 2023.
Company's Commentary
CMTG continued to navigate challenging market conditions in the third quarter, taking action to better position the company for the long term," said Richard Mack, Chief Executive Officer and Chairman of CMTG. "Looking ahead, our proactive approach to asset and portfolio management will continue to be essential in what we believe will be an elevated interest rate environment for an extended period of time."
Financial Tables Summary
The reconciliation of distributable earnings (loss) to net (loss) income attributable to common stock shows a net loss of $68.9 million for the quarter ended September 30, 2023. After adjustments for non-cash stock-based compensation expense, provision for current expected credit loss reserve, depreciation and amortization expense, unrealized loss on interest rate cap, and gain on sale of loan, the distributable earnings prior to realized gains and principal charge-offs stood at $49.6 million. After accounting for principal charge-offs, the distributable loss was $22.8 million.
Overall, the financial results reflect the challenges faced by CMTG in the third quarter of 2023. Despite the net loss, the company's proactive approach to asset and portfolio management and its robust loan portfolio indicate its potential to navigate through the challenging market conditions.
Explore the complete 8-K earnings release (here) from Claros Mortgage Trust Inc for further details.
This article first appeared on GuruFocus.
