Claros Mortgage Trust, Inc. · NYSE:CMTG
Claros Mortgage Trust — Q2 2022 Earnings Presentation
26 slides from Claros Mortgage Trust's earnings presentation, Aug 3, 2022
Slide 1: Second Quarter 2022 Earnings Supplement
Second Quarter 2022 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) August 3, 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: Second Quarter 2022 Highlights
Second Quarter 2022 Highlights $7.1 billion $2.6 billion 8.2% 6.1% Unpaid Principal Weighted Average Equity Book Value Dividend Yield1 Balance All-In Yield2 96% 97% 67.8% 1.9x Weighted Average Net Debt / Equity Senior Loans3 Floating Rate Loans3 Portfolio LTV4 Ratio5 See Endnotes in the Appendix. CL
Slide 5: Second Quarter 2022 Highlights (cont'd)
Second Quarter 2022 Highlights (cont’d) Financial GAAP net income of $63.2 million, or $0.45 per share, and Distributable Earnings, including realized losses, of $60.0 million, or $0.43 per share (Distributable Earnings, excluding realized losses, of $71.5 million, or $0.51 per share)6 Paid a ca
Slide 6: Second Quarter 2022 Highlights (cont'd)
Second Quarter 2022 Highlights (cont’d) Gain on Sale of Loan On April 15, 2022, one of our non-accrual loans was successfully resolved. CMTG held a $116.0 million mortgage on a New York land portfolio, which had been on non-accrual status since May of 2020. The subordinate mezzanine lender exercis
Slide 7: Financial Overview
Financial Overview 2Q-2022 GAAP net income of $63.2 million, or $0.45 per share, and Distributable Earnings, including realized losses, of $60.0 million, or $0.43 per share (Distributable Earnings, excluding realized losses, of $71.5 million, or $0.51 per share)6 Paid 2Q-2022 common dividend of
Slide 8: Book Value per Share Roll-Forward
Book Value per Share Roll-Forward Book Value per Share $18.88 $18.59 $20.00 Adjusted BV Adjusted BV per Share per Share $19.60 $19.20 $0.05 Depreciation $0.08 $18.80 $0.48 Depreciation $0.66 $0.74 General $18.40 CECL $0.51 $0.52 General $0.28 CECL $18.00 $17.60 $17.20 $18.35 $18.00 $18.00 $16.80 $16
Slide 9: Second Quarter 2022 Originations Overview
Second Quarter 2022 Originations Overview Highlights9 Originated approximately $1.0 billion of total loan commitments across eight investments (average loan commitment of $124.7 million), of which $623.7 million was funded at closing ― 52% of new loan commitments were in the residential sector (47
Slide 10: Loan Portfolio Overview
Loan Portfolio Overview June 30, March 31, Collateral Diversification3,7 Key Portfolio Metrics7 2022 2022 100% Multi-family Unpaid Principal Balance $7.1Bn $7.2Bn 80% 41% 37% Hospitality Office 60% 17% 18% Mixed-use Total Loan Commitments10 $8.8Bn $8.7Bn 40% 15% For Sale Condo 15% 10% 20% 9% Land 7%
Slide 11: 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 Number of % of Mid Collateral Type UPB Northeast West Southeast Southwest Midwest Other Loans Total UPB Atlantic Multi-family 22 $2,901 41% $390 / 5% $992 / 14% $610 / 9%
Slide 12: Portfolio Migration
Portfolio Migration Portfolio has become more geographically diverse in more defensive sectors 4Q-2019 2Q-2022 3% Multi-family 3% Multi-family Hospitality 7% Hospitality 9% 23% Office Office By Property Type3,7 7% 14% 9% 41% Mixed-use Mixed-use Multi-family exposure increased For Sale Condo to 4
Slide 13: 2Q-2022 Net Loan Fundings
2Q-2022 Net Loan Fundings 2Q-2022 Net Loan Fundings $ amounts in millions $9,000 $8,500 Advances on Existing Loans Charge-Off - $12 $1,481 $1,670 $8,000 $172 $1,670 Unfunded Unfunded Commitments Commitments $7,500 $624 $878 $7,000 New Loans Repayments and Sales $6,500 $6,000 ($94) $7,234 $7,234 Net
Slide 14: Loan Maturity Schedule
Loan Maturity Schedule Fully-Extended Maturities by Unpaid Principal Balance11,a $ amounts in millions $2,200 $2,100.7 $2,000 $1,777.6 $1,800 $1,600 $1,400 $1,200 $1,044.0 $1,001.6 $1,000 $800 $598.2 $600 $400 $211.2 $200 $122.5 $- $0 2022 2023 2024 2025 2026 2027 2028 2029 a. Excludes loans in matu
Slide 15: 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 $735.3 million Leverage Ratios5,8 Financing Sources3 3.0x + 2.78% 2.8x + 3.63% 2.6x 5.4% 2.4x 2.3x 2.3x 7.0% 2.2x 2.1x 2.1
Slide 16: Capital Structure Overview
Capital Structure Overview Capital Structure Composition Conservative Capital Structure ($ amounts in millions) Conservative 1.9x Net Debt / Equity Ratio5 Other Debt Warehouse Asset- $4.8 billion total warehouse financing capacity Related Facilities Specific $3,919 Financings to REO across six count
Slide 17: 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 $0.12 per share; and since June 30, 2022, rates have already increased by over 50-basis points Change in Quarterly Net Interest Income
Slide 18: Appendix
Appendix A STRICTLY CONFIDENTIAL The properties above are not representative of all transactions.
Slide 19: Portfolio Overview
Portfolio Overview CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 1 $390.0 $390.0 Nov-19 Multi-family NY Senior
Slide 20: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 21 $133.1 $151.7 Apr-22 Multi-family
Slide 21: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 41 $75.0 $75.0 Dec-18 Multi-family DC
Slide 22: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of June 30, 2022 ($ amounts in millions) Unpaid Loan Origination Investment Principal Property Type Location Loan Type Construction Risk Rating Commitment10 Date Balance Investment 61 $17.5 $17.5 Apr-21 Land PA Senior
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets June 30, 2022 and December 31, 2021 ($ amounts in thousands) June 30, 2022 December 31, 2021 Assets Cash and cash equivalents $ 461,002 $ 310,194 Restricted cash 36,729 23,942 Loan principal payments held by servicer 22,506 154,600 Loans receivable held-for-investment 7,0
Slide 24: Income Statement
Income Statement For the Three Months Ended June 30, 2022 and 2021 Three Months Ended Three Months Ended ($ amounts in thousands, except share and per share data) June 30, 2022 June 30, 2021 Revenue Interest and related income $ 98,993 $ 104,647 Less: interest and related expense 46,871 46,470 Net i
Slide 25: Reconciliation of GAAP Net Income to Distributable Earnings
Reconciliation of GAAP Net Income to Distributable Earnings For the Three Months Ended June 30, 2022 GAAP Net Distributable ($ amounts in thousands) Adjustments Income Earnings Interest income $ 98,993 $ - $ 98,993 Interest expense (46,871) - (46,871) Revenue + expenses from real estate owned 1,865
Slide 26: 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, based on the applicable floating benchmark rate / floors (if applica
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