Claros Mortgage Trust, Inc. · NYSE:CMTG
Claros Mortgage Trust — Q3 2022 Earnings Presentation
27 slides from Claros Mortgage Trust's earnings presentation, Nov 9, 2022
Slide 1: Third Quarter 2022 Earnings Supplement
Third Quarter 2022 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) November 9, 2022 The properties above are not representative of all transactions.
Slide 2: Important Notices
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 h
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: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights $7.4 billion $2.5 billion 8.2% 7.7% Unpaid Principal Weighted Average Equity Book Value Dividend Yield1 Balance All-In Yield2 97% 98% 67.8% 2.0x Weighted Average Net Debt / Equity Senior Loans3 Floating Rate Loans3 Portfolio LTV4 Ratio5 See Endnotes in the Appendix. CLA
Slide 5: Third Quarter 2022 Highlights (cont’d)
Third Quarter 2022 Highlights (cont’d) Financial GAAP net income of $42.1 million, or $0.30 per share, and distributable earnings of $47.1 million, or $0.33 per share6 Paid a cash dividend of $0.37 per share for the third quarter of 2022 NYC REO investment contributed $0.02 per share to distri
Slide 6: Liquidity Overview
Liquidity Overview Available Liquidity at September 30, 2022 and November 4, 2022 $ in millions $700.0 As of September 30, 2022 As of November 4, 2022 b $600.0 $166 $578 b $277 $507 $500.0 $412 $400.0 $300.0 a $230 $200.0 $100.0 $0.0 Cash Approved and Undrawn Credit Capacity Total Available Liquidit
Slide 7: Continued Progress on Non-Accrual Loans
Continued Progress on Non-Accrual Loans Non-accrual loans declined to $71 million / <1.0% of portfolio compared to $274 million / 4.1% on December 31, 2021. Highlights include: In August 2022, a $78 million loan secured by a parcel of land in New York City, that was on non-accrual status since Oct
Slide 8: Book Value per Share Roll-Forward
Book Value per Share Roll-Forward Book Value per Share $20.00 $18.88 $18.58 Adjusted BV per Adjusted BV per Share Share $19.50 $19.00 Depreciation, $0.95 General $1.11 $0.05 CECL, $18.50 $0.48 Depreciation, $0.09 General CECL, $0.53 $0.24 $0.01 $18.00 $17.50 $18.35 $17.00 $17.96 $16.50 $16.00 Book V
Slide 9: Third Quarter 2022 Originations Overview
Third Quarter 2022 Originations Overview Highlights9 Originated approximately $878 million of total loan commitments across six investments (average loan size of $146 million), of which $614 million was funded at closing ― 60% backed by multi-family assets, 40% by hospitality assets ― 100% of new
Slide 10: Financial Overview
Financial Overview GAAP net income of $42.1 million, or $0.30 per share, and distributable earnings of $47.1 million, or $0.33 per share6 Paid a cash dividend of $0.37 per share for the third quarter of 2022 Key Financial Metrics 3Q-2022 YTD 9/30/22 GAAP Net Income ($MM) $42.1 $134.7 Per Share $
Slide 11: Loan Portfolio Overview
Loan Portfolio Overview Collateral Diversification3,7 100% September 30, June 30, Key Portfolio Metrics7 2022 2022 80% 41% 41% Multi-family Unpaid Principal Balance $7.4Bn $7.1Bn Hospitality 60% Office 21% 18% a Total Loan Commitments10 $9.2Bn $8.8Bn Mixed-use 40% For Sale Condo 15% 14% Land Number
Slide 12: Loan Portfolio Overview (cont’d)
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 /
Slide 13: Loan Portfolio Migration
Loan Portfolio Migration 4Q-2019 3Q-2022 3% 2% 6% 9% Multi-family 23% 6% Multi-family Hospitality By Property Type3 Hospitality Office Multi-family exposure increased to 9% 41% 14% Office Mixed-use 41% Mixed-use a For Sale Condo No direct retail exposure 14% For Sale Condo Land 19% Other Land 18
Slide 14: 3Q-2022 Net Loan Fundings
3Q-2022 Net Loan Fundings 3Q-2022 Net Loan Fundings $ amounts in millions $10,000 Total Commitments $9,151 Total Commitments $9,000 $8,810 Unfunded Commitments Unfunded $1,770 $8,000 Commitments Advances on Existing Loans $186 a $1,670 Repayments $559 New Loans $614 $7,000 $6,000 $241 Net Change in
Slide 15: Loan Maturity Schedule and Portfolio Risk Rating
Loan Maturity Schedule and Portfolio Risk Rating Fully-Extended Maturities by Unpaid Principal Balance11,a $ amounts in millions Portfolio Risk Rating Migration7 $2,398 $2,400 100% 11.0% $2,200 16.8% 17.5% 90% $2,000 $1,848 80% $1,800 70% $1,600 60% $1,400 $1,200 50% $1,045 70.9% $975 88.9% 79.4% $1
Slide 16: 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 $535 million Leverage Ratios5,8 Summary of Outsta
Slide 17: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Structure ($ amounts in millions) Conservative weighted average advance rate of 67% on warehouse facilities (75% advance rate Other on multi-family loans and 60% on other loans) Debt Asset- Other Warehouse Facilities Relat
Slide 18: 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 $0.14 per share; and since September 30, 2022, rates have already increased by 70-basis points Change in Quarterly Net Interest Income
Slide 19: Appendix
Appendix A STRICTLY CONFIDENTIAL The properties above are not representative of all transactions.
Slide 20: Portfolio Overview
Portfolio Overview CMTG Portfolio Summary by Unpaid Principal Balance as of September 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 1 $396.4 $405.0 16-Dec-21 Multi-family CA
Slide 21: Portfolio Overview (cont’d)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of September 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 21 $133.1 $151.7 14-Apr-22 Multi
Slide 22: Portfolio Overview (cont’d)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of September 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 41 $75.0 $75.0 14-Dec-18 Multi-f
Slide 23: Portfolio Overview (cont’d)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of September 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 61 $23.9 $28.5 17-Feb-22 Multi-f
Slide 24: Consolidated Balance Sheets
Consolidated Balance Sheets September 30, 2022 and December 31, 2021 ($ amounts in thousands) September 30, 2022 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-inves
Slide 25: Income Statement
Income Statement For the Three Months Ended September 30, 2022 and 2021 Three Months Ended Three Months Ended ($ amounts in thousands, except share and per share data) September 30, 2022 September 30, 2021 Revenue Interest and related income $ 126,520 $ 103,876 Less: interest and related expense 67,
Slide 26: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings For the Three Months Ended September 30, 2022 GAAP Net Income Distributable ($ amounts in thousands) Adjustments Attributable to Earnings Common Stock Interest income $ 126,520 $ - $ 126,520 Interest expense (67,985) - (67,985) Revenue less
Slide 27: Endnotes
Endnotes 1. Calculated as the annualized quarterly dividend per share divided by book value per share. 2. All-in yield represents the weighted average annualized yield to initial maturity of each loan, inclusive of coupon and fees, and is based on the applicable benchmark rate / floors (if applicabl
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