Claros Mortgage Trust, Inc. · NYSE:CMTG
Claros Mortgage Trust — Investor Presentation (September 2022)
25 slides from Claros Mortgage Trust's investor presentation, Sep 1, 2022
Slide 1: Investor Presentation Claros Mortgage Trust, Inc. (CMTG) September 2022
Investor Presentation Claros Mortgage Trust, Inc. (CMTG) September 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. $7.1 billion Unpaid Principal Balance $2.6 billion Equity Book Value 8.2% Dividend Yield1 6.1% Weighted Average All-In Yield2 96% Senior Loans3 97% Floating Rate Loans3 67.8% Weighted Average Portfolio LTV4 1.9x 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 250 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 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 Ma
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 June 30, 2022 March 31, 2022 Unpaid Principal Balance $7.1Bn $7.2Bn Total Loan Commitments8 $8.8Bn $8.7Bn Number of Loans 74 73 LTV4 67.8% 67.7% Average Commitment Size $121.4MM $119.4MM Weighted Average All-In Yield2 6.1% 5.3% Floating Rate Loans3 97%
Slide 10: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) Totals may not foot due to rounding. a. Includes six loans secured by a portfolio of build-to-rent homes, representing $201.1 million in loan commitments and $5.2 million in unpaid principal balance. $ amounts in millions Region Exposure by Unpaid Principal Balance (
Slide 11: Portfolio Migration
Portfolio Migration By Property Type3,7 Multi-family exposure increased to 41% By Geography3,7 NY exposure decreased to 25% Increased exposure to TX, GA, and added additional markets 2Q-2022 4Q-2019 6 states 11 states Portfolio has become more geographically diverse in more defensive sectors
Slide 12: Financial Overview
Financial Overview Key Financial Metrics 2Q-2022 YTD 2022 GAAP Net Income ($MM) Per Share $63.2 $0.45 $92.6 $0.66 Distributable Earnings (Including Realized Losses) ($MM)9 Per Share Distributable Earnings (Excluding Realized Losses) ($MM)9 Per Share $60.0 $0.43 $71.5 $0.51 $93.5 $0.67 $105.0 $0.75 D
Slide 13: Conservative and Diversified Funding Strategy
Conservative and Diversified Funding Strategy Total financing capacity of $6.3 billion with approximately $1.0 billion of undrawn capacity12 Unencumbered loan assets totaled $735.3 million Financing Sources3 Wtd. Average Spread of Financing Sources13 + 2.65% + 2.05% + 4.51% + 4.50% + 3.63% + 2.78% W
Slide 14: Capital Structure Overview
Capital Structure Overview For illustrative and discussion purposes only. Not intended to illustrate order of priority. Conservative Capital Structure Capital Structure Composition ($ amounts in millions) Warehouse Facilities $3,919 Other Asset- Specific Financings $375 Debt Related to REO $290 Cons
Slide 15: Well-Positioned for Rising Rates
Well-Positioned for Rising Rates Assuming a static portfolio as of 2Q, a 100-basis point increase in rates would generate incremental annual net interest income of $0.12 per share; and since June 30, 2022, rates have already increased by over 50-basis points The effects shown are illustrative of a c
Slide 16: Appendix A
Appendix A The properties above are not representative of all transactions.
Slide 17: Leadership
Richard Mack16 CEO and Chairman, CMTG; Co-Founder and CEO, MREG Mike McGillis16 President, CMTG; President and COO, MREG Jai Agarwal16 CFO, CMTG; CFO, MREG Kevin Cullinan16 Executive Vice President, CMTG; MD, Co-Head of Credit Strategies, Head of Originations, MREG Priyanka Garg16 Executive Vice Pre
Slide 18: Portfolio Overview
Portfolio Overview CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) a. Investment was repaid subsequent to June 30, 2022. Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Inve
Slide 19: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 21 $133.1 $151.7 Apr-22 Multi-family T
Slide 20: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 41 $75.0 $75.0 Dec-18 Multi-family DC
Slide 21: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Investment Unpaid Principal Balance Loan Commitment8 Origination Date Property Type Location Loan Type Construction Risk Rating Investment 61 $17.5 $17.5 Apr-21 Land PA Senior N
Slide 22: Consolidated Balance Sheets
Consolidated Balance Sheets June 30, 2022 and December 31, 2021 Source: CMTG financials. ($ amounts in thousands) June 30, 2022 March 31, 2022 December 31, 2021 December 31, 2021 Assets Cash and cash equivalents $ 461,002 $ 310,194 Restricted cash 36,729 23,942 Loan principal payments held by servic
Slide 23: Income Statement
Income Statement For the Three Months Ended June 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) June 30, 2022 March 31, 2022 June 30, 2021 March 31, 2021 Revenue Interest
Slide 24: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings For the Three Months Ended June 30, 2022 Refer to page 1 for definition of Distributable Earnings. ($ amounts in thousands) GAAP Net Income Adjustments Distributable Earnings Interest income $ 98,993 $ - $ 98,993 Interest expense (46,871) -
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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