Claros Mortgage Trust, Inc. · NYSE:CMTG
Claros Mortgage Trust — Investor Presentation (May 2022)
27 slides from Claros Mortgage Trust's investor presentation, May 11, 2022
Slide 1: Investor Presentation Claros Mortgage Trust, Inc. (CMTG) May 2022
Investor Presentation Claros Mortgage Trust, Inc. (CMTG) May 2022 The properties above are not representative of all transactions. Final steps: Remove [ ] Update page numbers Remove loan names Cover photos: OPO The Park Santa Monica Silvery Towers Notes - Warehouse lines: Credit facilities (BXMT) Se
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. $7.2 billion Unpaid Principal Balance $2.5 billion Equity Book Value 8.1% Dividend Yield1 5.6% Weighted Average All-In Yield2 96% Senior Loans3 97% Floating Rate Loans3 67.7% 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 240 employees across the firm’s credit, equity and property management businesses CMTG is externally managed and advised b
Slide 7: MREG's Platform
MREG’s Platform Eleanor Seattle, WA WREN Los Angeles, CA The Greenpoint Brooklyn, NY Eve at the District Miami, FL The properties pictured above are not CMTG investments and are not expected to be invested in by CMTG. Mack Real Estate Credit Strategies, LP (MRECS) Investment MSAs Mack Real Estate Gr
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 March 31, 2022 December 31, 2021 Unpaid Principal Balance $7.2Bn $6.6Bn Total Loan Commitments8 $8.7Bn $7.7Bn Number of Loans 73 60 LTV4 67.7% 67.6% Average Commitment Size $119.4MM $128.2MM Weighted Average All-In Yield2 5.6% 5.7% Floating Rate Loans3
Slide 10: Loan Portfolio Overview (cont'd)
Loan Portfolio Overview (cont’d) Totals may not foot due to rounding. a. Includes four loans secured by a portfolio of build-to-rent homes, representing $153.5 million in loan commitments and $3.1 million in unpaid principal balance. $ amounts in millions Region Exposure by Unpaid Principal Balance
Slide 11: Portfolio Migration
4Q-2019 1Q-2022 By Property Type3 By Geography3 Portfolio Migration Percentage Point Increase: Multi-family (+14%) Percentage Point Decrease: New York (-15%) For Sale Condo (-5%)
Slide 12: Financial Overview
Financial Overview Key Financial Metrics 1Q-2022 GAAP Net Income ($MM) Per Share $29.4 $0.21 Net Distributable Earnings ($MM)9 Per Share $33.5 $0.24 Dividend ($MM) Per Share $51.7 $0.37 Book Value ($MM) Per Share Adjusted Book Value per Share10 $2,541.2 $18.20 $18.76 Net Debt/Equity Ratio5 Total Lev
Slide 13: Conservative and Diversified Funding Strategy
Conservative and Diversified Funding Strategy Total financing capacity of $6.5 billion with $1.1 billion of undrawn capacity Unencumbered loan assets totaled $614.8 million Financing Sources3 Wtd. Average Spread of Financing Sources12 + 2.59% Wtd. Average LIBOR / SOFR Floor of Financing Sources 0.28
Slide 14: Capital Structure Overview
Capital Structure Overview For illustrative and discussion purposes only. Not intended to illustrate order of priority. Conservative Capital Structure Capital Structure Composition ($ amounts in millions) Conservative 1.9x Net Debt/Equity Ratio5 $5.0 billion total warehouse financing capacity across
Slide 15: Interest Rate Sensitivity
Interest Rate Sensitivity Steepness of interest rate forward curve(s) and subsequent loan repayments and originations will influence the crossover point to being asset sensitive Interest Rates at 3/31 LIBOR: 0.45% SOFR: 0.30%
Slide 16: Illustrative Transaction Economics
Illustrative Transaction Economics a. Intended to illustrate the potential impact on levered ROE from a rising rate environment, based upon recent steepening in the forward interest rate curve, holding advance rates and spreads consistent. CMTG can provide no assurance that actual interest rates wil
Slide 17: 10-Year Treasuries vs CMTG Dividend Yield
10-Year Treasuries vs CMTG Dividend Yield 1
Slide 18: Appendix A
Appendix A The properties above are not representative of all transactions.
Slide 19: MRECS Senior Leadership
Richard Mack15 CEO and Chairman, CMTG; Co-Founder and CEO, MREG Mike McGillis15 President, CMTG; President and COO, MREG Jai Agarwal15 CFO, CMTG; CFO, MREG Kevin Cullinan15 Executive Vice President, CMTG; MD, Co-Head of Credit Strategies, Head of Originations, MREG Priyanka Garg15 Executive Vice Pre
Slide 20: Portfolio Overview
Portfolio Overview Investment Loan Commitment8 Unpaid Principal Balance Origination Date Property Type Location Loan Type Construction Risk Rating Investment 1 $390.0 $390.0 Nov-19 Multifamily NY Senior N 3 Investment 2 405.0 375.5 Dec-21 Multifamily CA Senior N 3 Investment 3 290.0 290.0 Jul-18 Hos
Slide 21: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Investment Loan Commitment8 Unpaid Principal Balance Origination Date Property Type Location Loan Type Construction Risk Rating Investment 21 $130.0 $130.0 Dec-21 Multifamily VA Senior N 3 Investment 22 125.0 125.0 Dec-21 Office IL Subordinate N 3 Investment 23 127.5 122.
Slide 22: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Investment Loan Commitment8 Unpaid Principal Balance Origination Date Property Type Location Loan Type Construction Risk Rating Investment 41 $75.0 $74.4 Dec-18 Multifamily DC Senior N 2 Investment 42 73.3 73.3 Dec-21 For Sale Condo VA Senior N 3 Investment 43 72.3 69.7 M
Slide 23: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) Investment Loan Commitment8 Unpaid Principal Balance Origination Date Property Type Location Loan Type Construction Risk Rating Investment 61 $28.5 $23.9 Feb-22 Multifamily TX Senior Y 3 Investment 62 141.8 22.4 Dec-21 Mixed-use FL Senior Y 3 Investment 63 17.5 17.5 Apr-2
Slide 24: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets March 31, 2022 and December 31, 2021 Source: CMTG financials. ($ amounts in thousands) March 31, 2022 March 31, 2022 December 31, 2021 December 31, 2021 Assets Cash and cash equivalents $ 444,001 $ 310,194 Restricted cash 23,139 23,942 Loan principal payments he
Slide 25: Income Statement
Income Statement For the Three Months Ended March 31, 2022 and 2021 Source: CMTG financials. Three Months Ended Three Months Ended Three Months Ended Three Months Ended ($ amounts in thousands, except per share data) March 31, 2022 March 31, 2022 March 31, 2021 March 31, 2021 Revenue Interest and re
Slide 26: Reconciliation of GAAP Net Income to Net Distributable Earnings
Reconciliation of GAAP Net Income to Net Distributable Earnings For the Three Months Ended March 31, 2022 Refer to page 1 for definition of Net Distributable Earnings. ($ amounts in thousands) GAAP Net Income Adjustments Net Distributable Earnings Interest income $ 90,694 $ - $ 90,694 Interest expen
Slide 27: 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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