Investor Presentation
Claros Mortgage Trust, Inc. (CMTG)
March 2024
The properties above are not representative of all transactions.
CMTG Snapshot
$6.9 billion | $2.3 billion | $238 million | ||
Loan Portfolio 1 | Equity Book Value | Total Liquidity 2 | ||
98% | 98% | 69.2% | ||
Weighted Average | ||||
Senior Loans 1,4 | Floating Rate Loans 1 | |||
Portfolio LTV 5 | ||||
See Endnotes in the Appendix.
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024
9.1%
Weighted Average
All-In Yield 3
2.4x
Net Debt / Equity
Ratio 6
PAGE 1
Mack Real Estate Group
Integrated real estate investor, operator,
developer and lender
Invests institutional and high net worth
capital in real estate equity and debt assets
The firm's principals have decades of global
real estate investing experience
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 2 |
Mack Real Estate Group Businesses
Real Estate | Multifamily and Industrial Investments1 | |||||||||||||||||
Equity | ||||||||||||||||||
29 | ||||||||||||||||||
("MREG") | ~9,000 | ~5.0 | ||||||||||||||||
Development and ownership | ||||||||||||||||||
office, and other asset | investments | |||||||||||||||||
of multifamily, industrial, | potential units2 | million industrial SF2 | ||||||||||||||||
classes | ||||||||||||||||||
Property | Comprehensive Property Management Services | |||||||||||||||||
Management | ||||||||||||||||||
("MPM") | ~5,000 units | 3.6M SF | 150+ staff | |||||||||||||||
Property management of | ||||||||||||||||||
MREG and third-party owned | under management | of commercial and industrial space | located across the U.S. | |||||||||||||||
under management | ||||||||||||||||||
residential and commercial | ||||||||||||||||||
assets | ||||||||||||||||||
Levered Transitional Credit | Unlevered Transitional Credit | High Yield Levered | ||||||||||||||||
Real Estate | Transitional Credit | |||||||||||||||||
Investments | Investments | |||||||||||||||||
Investments | ||||||||||||||||||
Credit | ||||||||||||||||||
~$3.0B | $250M | ~$900M | ||||||||||||||||
("MRECS") | ||||||||||||||||||
and other debt investments | of investor capital raised since inception | of investor capital raised since inception | of investor capital raised since inception | |||||||||||||||
$18.0B | $52.5M | $2.0B | ||||||||||||||||
Direct lending (first mortgage, | ||||||||||||||||||
mezzanine, preferred equity) | ||||||||||||||||||
of credit investments originated, co-originated | of credit investments originated, co-originated | of credit investments originated, co-originated | ||||||||||||||||
or acquired | or acquired | or acquired |
As of September 30, 2023.
- Includes realized investments.
- Unit count, square footage, and other figures concerning development characteristics reflect assets in various stages of development, including actual unit count for completed construction as well as estimated unit count for development projects that are not yet completed. Such estimated figures are based on expectations, estimates, and projections and no party provides any guarantee or assurance that these projections are accurate. Actual results may vary significantly from those reflected or contemplated. Similarly, there is no guarantee that MREG will ultimately develop the assets in accordance with the development plans as presented herein. Please read the Important Notices at the beginning of this presentation for additional important information concerning, among other things, forward-looking statements.
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 3 |
MREG National Presence
5
offices
Integrated platform with investment, development,
property management and lending activities across the United States
250+
employees
Seattle
WA
NV | UT | CO |
CA
AZ
Phoenix
MI | NY | MA | |
PA | CT | ||
IL | New York City | ||
MD | |||
VA | |||
TN | NC | ||
Raleigh |
GA
TX
FL
Miami
Mack Real Estate Group, LLC Office | MREG / MRECS Investments and/or Mack Property Management, L.P. (MPM) Presence | |
Includes employees across the firm's credit, equity, development, and property management business as of the date on this presentation. | ||
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 4 | |
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
PLATFORM
Roots in real estate development and operations dating back to the 1960s
Managed by experienced operator with integrated credit, equity, development and property management business
Established and scaled platform with demonstrated track record
KEY DIFFERENTIATORS
"Ownership mindset" investment approach
Well-capitalized, institutional borrowers
Markets with local intelligence / experience / expertise
Focus on downside protection; highly structured loans with credit support
Proactive asset management with a focus on staying ahead of the borrower
Utilize modest leverage
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 5 |
Loan Portfolio Overview
Key Portfolio Metrics7,b | December 31, | September 30, |
2023 | 2023 | |
Loan Portfolio1 | $6.9Bn | $7.1Bn |
Total Loan Commitments8 | $8.1Bn | $8.5Bn |
Number of Loans | 65 | 69 |
LTV5 | 69.2% | 68.8% |
Average Commitment Size | ~$120MM | ~$120MM |
Weighted Average All-In Yield3 | 9.1% | 9.5% |
Floating Rate Loans1 | 98% | 98% |
Senior Loans1,4 | 98% | 98% |
100%
80%
60%
40%
20%
0%
100%
80%
60%
40%
20%
0%
Collateral Diversification1,7
41% | 41% |
19% | 19% |
14% | 13% |
9% | 8% |
7% | 8% |
3% | 5% |
7% | 6% |
31-Dec-23 | 30-Sep-23 |
Geographical Diversification1,7
23% | 23% | ||
22% | 22% | ||
9% | 8% | ||
8% | 7% | ||
8% | 7% | ||
31% | 33% | ||
31-Dec-23 | 30-Sep-23 |
Multi-family
Hospitality
Office
Mixed-usea
Land
For Sale Condo
Other
CA
NY
TX
VA / DC
GA
Other
a. At December 31, 2023, mixed-use comprises of 3% office, 2% retail, 2% multifamily, 1% hospitality, and immaterial amounts of for sale condo. .
Mixed-use allocations are based upon allocable square footage except where another method is deemed more appropriate under the applicable facts and circumstances.
- Excludes three loans held-for-sale.
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024
PAGE 6
Loan Portfolio Overview (cont'd)
$ amounts in millions | Region Exposure by Carrying Value and as a % of Total Carrying Value | ||||||||||
Collateral Type | Number of Loans | Carrying | % of Total | West | Northeast | Southeast | Mid Atlantic | Southwest | Midwest | Other | |
Value1 | Carrying Value | ||||||||||
Multi-family | 22 | $2,829 | 41% | $1,388 / 20% | $390 / 6% | - | $266 / 4% | $505 / 7% | $282 / 4% | - | |
Hospitality | 9 | $1,339 | 19% | $605 / 9% | $450 / 6% | $284 / 4% | - | - | - | - | |
Office | 9 | $962 | 14% | $251 / 4% | $272 / 4% | $225 / 3% | - | $88 / 1% | $125 / 2% | - | |
Mixed-usea | 5 | $597 | 9% | - | $195 / 3% | $103 / 1% | $299 / 4% | - | - | - | |
Land | 6 | $518 | 7% | - | $368 / 5% | $30 | / 0% | $120 / 2% | - | - | - |
For Sale Condo | 2 | $220 | 3% | $209 / 3% | $11 / 0% | - | - | - | - | - | |
Other b | 12 | $483 | 7% | $66 / 1% | $176 / 3% | $93 | / 1% | $76 / 1% | - | $70 / 1% | $2 / 0% |
Total | 65 | $6,948 | 100% | $2,519 / 35% | $1,861 / 27% | $735 | / 11% | $762 / 11% | $592 / 9% | $477 / 7% | $2 / 0% |
Totals may not foot due to rounding. | ||
a. | At December 31, 2023, mixed-use comprises of 3% office, 2% retail, 2% multifamily, 1% hospitality, and immaterial amounts of for sale condo. | . |
Mixed-use allocations are based upon allocable square footage except where another method is deemed more appropriate under the applicable facts and circumstances. | ||
b. | Includes five loans secured by a portfolio of build-to-rent homes, representing $166 million in loan commitments and $94 million in unpaid principal balance. | |
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 7 | |
Financial Overview
- During the quarter: GAAP net income of $34.0 million, or $0.24 per share; distributable earnings of $36.9 million, or $0.26 per share; and distributable earnings prior to realized gain and principal charge-off of $44.4 million, or $0.31 per share 9
- Paid a cash dividend of $0.25 per share for the fourth quarter of 2023
Key Financial Metrics | 4Q- | 3Q- | 2Q- | 1Q- | Total |
2023 | 2023 | 2023 | 2023 | 2023 | |
GAAP Net Income (Loss) ($MM) | $34.0 | $(68.9) | $4.3 | $36.7 | $6.0 |
Per Share | $0.24 | $(0.50) | $0.02 | $0.26 | $0.02 |
Distributable Earnings (Loss) ($MM)9 | $36.9 | $(22.8) | $(14.5) | $40.3 | $39.9 |
Per Share | $0.26 | $(0.16) | $(0.10) | $0.29 | $0.28 |
Distributable Earnings prior to realized gains and principal charge-offs ($MM)9 | $44.4 | $49.6 | $50.3 | $40.3 | $184.5 |
Per Share | $0.31 | $0.35 | $0.35 | $0.29 | $1.31 |
Dividends ($MM) | $35.3 | $35.3 | $52.4 | $52.4 | $175.5 |
Per Share | $0.25 | $0.25 | $0.37 | $0.37 | $1.24 |
Book Value ($MM) | $2,299.9 | $2,296.7 | $2,400.4 | $2,444.2 | |
Per Share | $16.28 | $16.25 | $16.94 | $17.26 | |
Adjusted Book Value per Share10 | $17.03 | $17.00 | $17.64 | $17.96 | |
Net Debt / Equity Ratio6 | 2.4x | 2.3x | 2.3x | 2.2x | |
Total Leverage Ratio11 | 2.8x | 2.7x | 2.7x | 2.6x | |
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 8 |
Financing Mix
- Total financing capacity decreased to $7.3 billion from $7.8 billion at September 30, 2023; undrawn capacity decreased to $1.6 billion from $2.1 billion at September 30, 202312
- Unencumbered loan assets totaled $433 million (93% senior mortgages); unencumbered REO asset with a carrying value of $147.1 million a
- Net debt / equity ratio of 2.4x and total leverage ratio of 2.8x as of December 31, 2023, increased slightly from September 30, 2023 6,11
Leverage Ratios6,11
3.0x | ||||||
2.7x | 2.7x | 2.8x | ||||
2.6x | ||||||
2.5x | 2.2x | 2.3x | 2.3x | 2.4x | ||
2.0x | ||||||
1.5x
1.0x
0.5x
0.0x
1Q-2023 | 2Q-2023 | 3Q-2023 | 4Q-2023 | |
Net Debt / Equity Ratio | Total Leverage Ratio | |||
Summary of Outstanding Financing
UPB at | Weighted | ||
$ amounts in millions | Capacity | December 31, | Average |
2023 | Spread13 | ||
Repurchase agreements and | $5,710 | $4,271 | 2.76% |
term participation facility | |||
Asset Specific Financing | $541 | $407 | 3.41% |
Secured Term Loan | $725 | $725 | 4.50% |
Debt Related to REO | $290 | $290 | 2.83% |
Total as of 4Q-2023 | $7,266 | $5,694 | 3.03% |
a. Total carrying value includes acquired lease intangibles, net of accumulated depreciation.
CLAROS MORTGAGE TRUST, INC. INVESTOR PRESENTATION - MARCH 2024 | PAGE 9 |
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Claros Mortgage Trust Inc. published this content on 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 16:22:05 UTC.