Claros Mortgage Trust, Inc. · NYSE:CMTG
Claros Mortgage Trust — Investor Presentation (November 2022)
25 slides from Claros Mortgage Trust's investor presentation, Nov 16, 2022
Slide 1: Investor Presentation Claros Mortgage Trust, Inc. (CMTG) November 2022
Investor Presentation Claros Mortgage Trust, Inc. (CMTG) November 2022 The properties above are not representative of all transactions.
Slide 2: Important Notices
The information herein generally speaks as of the date hereof or such earlier date referred to on specific pages herein. In furnishing this document, Claros Mortgage Trust, Inc. and its consolidated subsidiaries (the “Company” or “CMTG”) do not undertake to update the information herein. No legal co
Slide 3: Important Notices (cont'd)
Important Notices (cont’d) Determinations of Loan-to-Value / Loan-to-Cost LTV’s stated herein represent CMTG’s total loan commitment from time to time, as if fully funded, plus any financings that are pari passu with or senior to CMTG’s loan, divided by the Company’s estimate of either (i) the value
Slide 4: CMTG Snapshot
CMTG Snapshot See Endnotes in the Appendix. $7.4 billion Unpaid Principal Balance $2.5 billion Equity Book Value 8.2% Dividend Yield1 7.7% Weighted Average All-In Yield2 97% Senior Loans3 98% Floating Rate Loans3 67.8% Weighted Average Portfolio LTV4 2.0x Net Debt / Equity Ratio5
Slide 5: Mack Family Real Estate History
AREA is sold to ARES Management. The Macks retain a number of AREA businesses, employees, and associated infrastructure William, Richard and Stephen Mack form Mack Real Estate Group (MREG). MREG principals assume operational and strategic control of Mack Property Management L.P. (MPM) (formerly know
Slide 6: Mack Real Estate Group Profile
Integrated real estate investor, lender, operator and developer Principals and members of senior management have decades of global real estate investing experience Approximately 275 employees across the firm’s credit, equity, development, and property management businesses CMTG is externally managed
Slide 7: MREG's Platform
MREG’s Platform Integrated platform with expertise across the United States UT Exclusively Mack Real Estate Credit Strategies, LP (MRECS) Investments Exclusively Mack Real Estate Group (MREG) and Mack Real Estate Development (MRED) Assets MREG / MRED Assets; MRECS Investments; and / or Mack Property
Slide 8: CMTG Overview
CMTG Overview Focus on transitional loan opportunities secured by high quality CRE assets, generally with institutional-grade sponsorship, located in major U.S. markets where MREG has infrastructure and / or experience, at a compelling loan basis KEY DIFFERENTIATORS “Ownership mindset” investment ap
Slide 9: Loan Portfolio Overview
Loan Portfolio Overview Key Portfolio Metrics7 September 30, 2022 June 30, 2022 Unpaid Principal Balance $7.4Bn $7.1Bn Total Loan Commitments8 $9.2Bn $8.8Bn Number of Loans 77 74 LTV4 67.8% 67.8% Average Commitment Size ~$120MM ~$120MM Weighted Average All-In Yield2 7.7% 6.1% Floating Rate Loans3 98
Slide 10: Loan Portfolio Overview (cont'd)
$ amounts in millions Region Exposure by Unpaid Principal Balance (UPB) and as a % of Total UPB7 Collateral Type Number of Loans UPB % of Total UPB West Northeast Southeast Mid Atlantic Southwest Midwest Other Multi-familya 25 $3,044 41% $1,378 / 19% $390 / 5% $156 / 2% $353 / 5% $488 / 7% $280 / 4%
Slide 11: Loan Portfolio Migration
3Q-2022 4Q-2019 By Property Type3 Multi-family exposure increased to 41% No direct retail exposure By Geography3 No exposure to Europe NY exposure decreased to 24% Increased CA exposure to 24% Increased exposure to TX, GA, and added additional markets Loan Portfolio Migration 6 states 12 states Mixe
Slide 12: Financial Overview
Financial Overview Key Financial Metrics 3Q-2022 YTD 9/30/22 GAAP Net Income ($MM) Per Share $42.1 $0.30 $134.7 $0.95 Distributable Earnings (Including Realized Losses) ($MM)9 Per Share Distributable Earnings (Excluding Realized Losses) ($MM)9 Per Share $47.1 $0.33 $47.1 $0.33 $140.6 $0.99 $152.1 $1
Slide 13: Conservative and Diversified Funding Strategy
Conservative and Diversified Funding Strategy Total financing capacity of $6.7 billion with approximately $1.2 billion of undrawn capacity, compared to $6.3 billion and $1.0 billion respectively at June 30, 202212 Unencumbered loan assets totaled $535 million Summary of Outstanding Financing $ amoun
Slide 14: Capital Structure Overview
Capital Structure Overview Conservative Capital Structure Capital Structure Composition ($ amounts in millions) Conservative 2.0x Net Debt / Equity Ratio5 $5.0 billion total warehouse financing capacity across six counterparties with $4.0 billion outstanding Conservative weighted average advance rat
Slide 15: Well-Positioned for Rising Rates
Well-Positioned for Rising Rates Assuming a static portfolio as of 3Q, a 100-basis point increase in rates would generate incremental annual net interest income of $0.14 per share; and since September 30, 2022, rates have already increased by 70-basis points Daily Avg. 3Q Interest Rates at 9/30 +0.5
Slide 16: Appendix A
Appendix A The properties above are not representative of all transactions.
Slide 17: CMTG and MRECS Leadership
Richard Mack14 CEO and Chairman, CMTG; Co-Founder and CEO, MREG Mike McGillis14 President, CMTG; President and COO, MREG Jai Agarwal14 CFO, CMTG; CFO, MREG Kevin Cullinan14 Executive Vice President, CMTG; MD, Co-Head of Credit Strategies, Head of Originations, MREG Priyanka Garg14 Executive Vice Pre
Slide 18: Portfolio Overview
Portfolio Overview Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 1 $396.4 $405.0 16-Dec-21 Multi-family CA Senior N 3 Investment 2 390.0 390.0 01-Nov-19 Multi-family NY Senior N 3 Investment 3 280.0 280.0 13
Slide 19: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 21 $133.1 $151.7 14-Apr-22 Multi-family TX Senior N 3 Investment 22 130.0 130.0 10-Dec-21 Multi-family VA Senior N 3 Investment 23 12
Slide 20: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 41 $75.0 $75.0 14-Dec-18 Multi-family DC Senior N 3 Investment 42a 75.0 115.3 01-Aug-22 Hospitality NY Senior Y 3 Investment 43 72.4
Slide 21: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 61 $23.9 $28.5 17-Feb-22 Multi-family TX Senior N 3 Investment 62 20.7 20.7 02-Aug-19 For Sale Condo NY Senior N 3 Investment 63 20.1
Slide 22: Balance Sheet
($ amounts in thousands) September 30, 2022 March 31, 2022 December 31, 2021 December 31, 2021 Assets Cash and cash equivalents $ 225,556 $ 310,194 Restricted cash 37,110 23,942 Loan principal payments held by servicer 7,651 154,600 Loans receivable held-for-investment 7,329,411 6,407,305 Less: curr
Slide 23: Income Statement
Income Statement For the Three Months Ended September 30, 2022 and 2021 Source: CMTG financials. Three Months Ended Three Months Ended Three Months Ended Three Months Ended ($ amounts in thousands, except share and per share data) September 30, 2022 March 31, 2022 September 30, 2021 March 31, 2021 R
Slide 24: Reconciliation of GAAP Net Income to Distributable Earnings
($ amounts in thousands) GAAP Net Income Attributable to Common Stock Adjustments Distributable Earnings Interest income $ 126,520 $ - $ 126,520 Interest expense (67,985) - (67,985) Revenue less expenses from real estate owned 2,613 - 2,613 Depreciation on real estate owned (2,064) 2,064 - Managemen
Slide 25: Endnotes
Endnotes Calculated as the annualized quarterly dividend per share divided by book value per share. All-in yield represents the weighted average annualized yield to initial maturity of each loan, inclusive of coupon and fees, based on the applicable floating benchmark rate / floors (if applicable),
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