Claros Mortgage Trust, Inc. · NYSE:CMTG
Claros Mortgage Trust — Q4 2021 Earnings Presentation
24 slides from Claros Mortgage Trust's earnings presentation, Mar 15, 2022
Slide 1: Fourth Quarter 2021 Earnings Supplement
Fourth Quarter 2021 Earnings Supplement Claros Mortgage Trust, Inc. (CMTG) March 15, 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: Fourth Quarter 2021 Highlights
Fourth Quarter 2021 Highlights Scaled Loan Portfolio Robust Balance Sheet Portfolio Performance 1.7x $6.6 billion Net Debt/Equity Ratio2 5.7% Loan Investment Weighted Average Portfolio1 All-In Yield4 $377 million Cash and Available Liquidity3 $1.8 billion $0.30 Net Distributable Earnings 4Q-2021 Ori
Slide 5: Fourth Quarter 2021 Highlights (cont'd)
Fourth Quarter 2021 Highlights (cont’d) Financial GAAP net income of $17.0 million, or $0.12 per share, and Net Distributable Earnings of $40.9 million, or $0.30 per share1 Paid a cash dividend of $0.37 per common share for the fourth quarter of 2021 Subsequent to quarter-end, declared a cash
Slide 6: Fourth Quarter 2021 Highlights (cont'd)
Fourth Quarter 2021 Highlights (cont’d) Liquidity and Capitalization Ended quarter with $377.3 million of available liquidity, comprised of $310.2 million of cash on hand and $67.1 million of proceeds held by servicer Executed initial public offering of 5.5 million shares for net proceeds of app
Slide 7: Financial Overview
Financial Overview 4Q-2021 GAAP net income of $17.0 million, or $0.12 per share, and Net Distributable Earnings of $40.9 million, or $0.30 per share1 Paid 4Q-2021 common dividend of $51.7 million, or $0.37 per share Key Financial Metrics 4Q-2021 GAAP Net Income ($MM) $17.0 Per Share $0.12 Net Di
Slide 8: Book Value per Share Roll-Forward
Book Value per Share Roll-Forward Book Value per Share $19.26 $18.88 Adjusted BV Adjusted BV $20.00 per Share per Share $19.60 $0.04 Depreciation $0.05 $19.20 $0.44 Depreciation $0.12 General CECL $18.80 $0.37 $0.48 $0.18 General CECL $18.40 $18.00 $17.60 $18.78 $17.20 $18.35 $16.80 $16.40 $16.00 Bo
Slide 9: Fourth Quarter 2021 Originations Overview
Fourth Quarter 2021 Originations Overview Highlights1 Originated $1.8 billion of total commitments across 12 investments, of which $1.5 billion was funded at closing ― Multi-family investments represented 80% of new originations ― 93% of new originations were senior loans ― 93% of new originations
Slide 10: Loan Portfolio Overview
Loan Portfolio Overview Dec. 31, Sep. 30, Collateral Diversification3 Key Portfolio Metrics1 2021 2021 3% 3% 100% 10% 10% Other 80% 11% 11% Unpaid Principal Balance $6.6Bn $6.4Bn Land 11% 20% For Sale Condo 60% 17% Mixed-Use Total Loan Commitments $7.7Bn $7.5Bn 20% 40% 18% Office 20% 20% Hospitality
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 UPB Number of % of Mid Collateral Type UPB Northeast West Southeast Midwest Southwest Other Investments Total UPB Atlantic Multi-family 14 $2,001 30% $390 / 6% $830 / 13% $494
Slide 12: 4Q-2021 Net Loan Fundings
4Q-2021 Net Loan Fundings 4Q-2021 Net Loan Fundings $ amounts in millions $8,500 Add-On Funding $8,000 $210 $7,500 $1,542 $1,489 $7,000 $6,500 New Loans $6,000 $5,500 $5,000 $157 $6,447 $6,603 Net Change in UPB $4,500 $4,000 $3,500 $3,000 Unpaid Principal Balance Fundings Repayments1 Unpaid Principa
Slide 13: Loan Maturity Schedule
Loan Maturity Schedule Fully Extended Maturities by Unpaid Principal Balance1 $ amounts in millions $3,000 $2,700 $2,400 $2,144.1 $2,100 $1,800 $1,500 $1,193.6 $1,200 $1,012.3 $868.7 $900 $778.8 $605.3 $600 $300 $0 2022 2 2023 2024 2025 2026 2027 1. Fully extended maturity assumes all extension opti
Slide 14: Conservative and Diversified Funding Strategy
Conservative and Diversified Funding Strategy Total financing capacity of $5.6 billion with $846.7 million of undrawn capacity Unencumbered loan assets totaled $640.6 million as of December 31, 2021 Subsequent to quarter-end, increased warehouse facility capacity by an aggregate of $700.0 mill
Slide 15: Conservative and Diversified Funding Strategy (cont'd)
Conservative and Diversified Funding Strategy (cont’d) Leverage Ratios1,2 Financing Sources3 3.0x 2.8x 6.1% 2.6x Target range 4.6% 2.4x 2.0x – 3.0x 2.2x 2.2x 2.1x 2.1x 2.0x 2.0x 1.8x 16.0% 1.8x 1.7x 1.7x 1.6x 1.5x 1.4x 1.2x 1.0x 73.3% 0.8x 0.6x 0.4x 0.2x 0.0x 1Q-2021 2Q-2021 3Q-2021 4Q-2021 Warehous
Slide 16: Capital Structure Overview
Capital Structure Overview Capital Structure Composition1 Conservative Capital Structure ($ amounts in millions) $4.3 billion total warehouse financing capacity across six counterparties with $3.5 billion outstanding at December 31, 2021 Warehouse Facilities $3,490 Conservative 1.7x net debt/equity
Slide 17: Appendix A
Appendix A STRICTLY CONFIDENTIAL The properties above are not representative of all transactions.
Slide 18: Portfolio Overview
Portfolio Overview CMTG Portfolio Summary by Unpaid Principal Balance as of December 31, 2021 ($ amounts in millions) Floating Rate Loan Unpaid Principal Property Type Location Loan Type Construction Risk Rating Investments Commitment1 Balance Investment 1 $390.0 $390.0 Multi-family NY Senior N 3 In
Slide 19: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of December 31, 2021 ($ amounts in millions) Floating Rate Loan Unpaid Principal Property Type Location Loan Type Construction Risk Rating Investments Commitment1 Balance Investment 21 $130.0 $130.0 Multi-family VA Sen
Slide 20: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of December 31, 2021 ($ amounts in millions) Floating Rate Loan Unpaid Principal Property Type Location Loan Type Construction Risk Rating Investments Commitment1 Balance Investment 41 $76.4 $62.4 Multi-family TX Senio
Slide 21: Portfolio Overview (cont'd)
Portfolio Overview (cont’d) CMTG Portfolio Summary by Unpaid Principal Balance as of December 31, 2021 ($ amounts in millions) Loan Unpaid Principal Fixed Rate Investments Property Type Location Loan Type Construction Risk Rating Commitment1 Balance Investment 56 $125.0 $125.0 Office IL Subordinate
Slide 22: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets December 31, 2021 and December 31, 2020 ($ amounts in thousands) December 31, 2021 December 31, 2020 Assets Cash and cash equivalents $ 310,194 $ 427,512 Restricted cash 23,942 3,462 Loans receivable held-for-investment 6,407,305 6,131,825 Less: allowance for lo
Slide 23: Income Statement
Income Statement For the Three and Twelve Months Ended December 31, 2021 and 2020 Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended ($ amounts in thousands, except per share data) December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Revenue Interest and
Slide 24: Reconciliation of GAAP Net Income to Net Distributable Earnings
Reconciliation of GAAP Net Income to Net Distributable Earnings For the Three Months Ended December 31, 2021 GAAP Net Net Distributable ($ amounts in thousands) Adjustments Income Earnings Interest income $ 100,937 $ - $ 100,937 Interest expense (45,044) - (45,044) Revenue + expenses from REO 2,082
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