Claros Mortgage Trust Q2 2024 10-Q Filed

TL;DR

**Claros Mortgage Trust Q2 10-Q is in: Real estate portfolio details and loan assets disclosed.**

AI Summary

Claros Mortgage Trust, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details their real estate investment portfolio, including loans receivable held for investment and various property types. The company's financial reporting adheres to US GAAP standards, with specific disclosures related to allowance for loan and lease losses and variable loan structures.

Why It Matters

This filing provides insight into the financial health and real estate holdings of Claros Mortgage Trust, Inc., which can impact investors and the broader real estate market.

Risk Assessment

Risk Level: medium — The filing pertains to a real estate investment trust, which inherently carries market and interest rate risks.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Covers financial activities up to this date.)
• 2024-08-05 — Filing Date (Date the 10-Q was officially submitted.)

Key Players & Entities

• Claros Mortgage Trust, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of reporting period
• 20240805 (date) — Filing date
• Mack Real Estate Group (company) — Associated with business and mail address
• 212-484-0050 (phone_number) — Business phone number

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share CMTG New York S

Filing Documents

• cmtg-20240630.htm (10-Q) — 4391KB
• cmtg-ex10_2.htm (EX-10.2) — 53KB
• cmtg-ex10_3.htm (EX-10.3) — 38KB
• cmtg-ex10_4.htm (EX-10.4) — 46KB
• cmtg-ex10_5.htm (EX-10.5) — 31KB
• cmtg-ex10_6.htm (EX-10.6) — 46KB
• cmtg-ex31_1.htm (EX-31.1) — 16KB
• cmtg-ex31_2.htm (EX-31.2) — 16KB
• cmtg-ex32_1.htm (EX-32.1) — 10KB
• cmtg-ex32_2.htm (EX-32.2) — 10KB
• 0000950170-24-090737.txt ( ) — 19319KB
• cmtg-20240630.xsd (EX-101.SCH) — 2250KB
• cmtg-20240630_htm.xml (XML) — 4650KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets 3 Consolidated Statements of Operations 4 Consolidated Statements of Changes in Equity 5 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 4.

Controls and Procedures

Controls and Procedures 55 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 56 Item 1A.

Risk Factors

Risk Factors 56 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 56 Item 3. Defaults Upon Senior Securities 56 Item 4. Mine Safety Disclosures 56 Item 5. Other Information 56 Item 6. Exhibits 57

—FINANCI AL INFORMATION

PART I—FINANCI AL INFORMATION

Financi al Statements

Item 1. Financi al Statements. Claros Mortgage Trust, Inc. Consolidated B alance Sheets (unaudited, in thousands, except share data) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 148,212 $ 187,301 Restricted cash 21,185 27,588 Loan principal payments held by servicer - 11,000 Loans receivable held-for-investment 6,913,273 7,020,383 Less: current expected credit loss reserve ( 203,756 ) ( 142,958 ) Loans receivable held-for-investment, net 6,709,517 6,877,425 Loans receivable held-for-sale - 261,709 Equity method investment 42,397 42,474 Real estate owned, net 518,719 522,959 Other assets 144,547 138,905 Total assets $ 7,584,577 $ 8,069,361 Liabilities and Equity Repurchase agreements $ 3,620,694 $ 3,805,678 Term participation facility 370,193 465,434 Loan participations sold, net 100,759 120,508 Notes payable, net 244,018 283,341 Secured term loan, net 711,177 712,576 Debt related to real estate owned, net 278,600 289,913 Other liabilities 43,182 47,368 Dividends payable 35,541 35,328 Management fee payable - affiliate 9,011 9,315 Total liabilities 5,413,175 5,769,461 Commitments and Contingencies - Note 14 Equity Common stock, $ 0.01 par value, 500,000,000 shares authorized, 138,954,433 and 138,745,357 shares issued and 138,954,433 and 138,745,357 shares outstanding at June 30, 2024 and December 31, 2023, respectively 1,390 1,387 Additional paid-in capital 2,732,228 2,725,217 Accumulated deficit ( 562,216 ) ( 426,704 ) Total equity 2,171,402 2,299,900 Total liabilities and equity $ 7,584,577 $ 8,069,361 The accompanying notes are an integral part of these consolidated financial statements. 3 Claros Mortgage Trust, Inc. Consolidated Statem ents of Operations (unaudited, in thousands, except share and per share data) Three Months Ended S

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) Note 1. Organization Claros Mortgage Trust, Inc. (referred to throughout this report as the "Company," "we," "us" and "our") is a Maryland Corporation formed on April 29, 2015 for the purpose of creating a diversified portfolio of income-producing loans collateralized by institutional quality commercial real estate. We commenced operations on August 25, 2015 ("Commencement of Operations") and generally conduct our business through wholly-owned subsidiaries. Unless the context requires otherwise, any references to the Company refers to the Company and its consolidated subsidiaries. The Company is traded on the New York Stock Exchange, or NYSE, under the symbol "CMTG". We elected and intend to maintain our qualification to be taxed as a real estate investment trust ("REIT") under the requirements of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), for U.S. federal income tax purposes. As such, we generally are not subject to U.S. federal income tax on that portion of our income that we distribute to stockholders. See Note 13 – Income Taxes for further detail. We are externally managed by Claros REIT Management LP (the "Manager"), our affiliate, through a management agreement (the "Management Agreement") pursuant to which our Manager provides a management team and other professionals who are responsible for implementing our business strategy, subject to the supervision of our board of directors (the "Board"). In exchange for its services, our Manager is entitled to management fees and, upon the achievement of required performance hurdles, incentive fees. See Note 11 – Related Party Transactions for further detail. Note 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of Ame

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