Claros Mortgage Trust, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported GAAP net loss of $14.3 million ($0.10 per share) for the quarter ended September 30, 2026.
• Reported Distributable Loss of $12.1 million ($0.08 per share) for the quarter ended September 30, 2026.
• Reported Distributable Loss prior to realized gains and losses of $7.9 million ($0.05 per share) for the quarter ended September 30, 2026.
• Distributable loss per share prior to realized gains and losses was $0.05, compared to $0.07 in the second quarter of 2026.
• Distributable loss per share was $0.08, compared to $0.63 in the second quarter of 2026.
• Net debt-to-equity ratio was 1.7x as of September 30, 2026, declining to 1.5x after adjusting for fourth quarter loan resolutions and deleveraging of $268.7 million.
• Total leverage ratio was 2.4x as of September 30, 2026, declining to 2.2x after adjusting for fourth quarter loan resolutions and deleveraging of $268.7 million.
• Book value was $8.49 per share, net of $3.93 per share of CECL reserves on UPB.
• CECL reserves totaled $566.2 million on UPB, representing 18.5%.
• Watchlist loans decreased to $1.1 billion in carrying value (11 loans), down $547.2 million from year-end 2025.
• Held-for-investment loan portfolio was $2.5 billion with a weighted average yield to maturity of 5.7%.
• REO portfolio totaled $700.7 million consisting of eight investments.
• Total liquidity was $146.9 million, including $133.8 million in cash.
• Unencumbered assets totaled $664.5 million, consisting of $517.1 million of loan UPB ($401.6 million carrying value) and $147.4 million of REO carrying value.

Guidance and Future Outlook:

• Management stated the company is focused on resolving and liquidating watchlist loans, repositioning REO assets for disposition, and deleveraging the balance sheet.
• The company expects to face recent rate moves better positioned due to actions taken over the past seven quarters.
• Management expressed confidence in completing the work ahead regarding strategic priorities.

Business Segments and Product Lines:

• Resolved four loans totaling $409.5 million of UPB, receiving $8.0 million in partial loan repayments.
• Included two full loan repayments ($223.1 million UPB), one loan sale ($111.5 million UPB), and one discounted loan payoff ($74.9 million UPB).
• Sold one multifamily REO asset for gross proceeds of $22.5 million.
• No loans were added to the watchlist and no additional loans were placed on non-accrual status during the quarter.
• Financings outstanding decreased by $330.1 million, including $99.9 million of deleveraging payments.
• Subsequent events included two full loan repayments totaling $268.7 million UPB and $0.6 million in partial repayments.
• Subsequent events included a decrease in financings outstanding by $268.7 million, including $131.5 million of deleveraging payments.
• Agreements reached to sell a risk-rated 5 unencumbered office loan receivable for $65.7 million (92% of carrying value), with an expected incremental loss of $5.4 million upon Q4 2026 closing.
• Agreements reached to sell a risk-rated 5 multifamily loan receivable for $245.0 million (98% of carrying value), with an expected incremental loss of $5.0 million upon Q4 2026 closing.
• Agreements reached to sell two of seven hotels in the REO hotel portfolio for $44.5 million, a slight premium to carrying value, with closing expected by Q1 2027.

Market and Competitive Landscape:

• The company operates as a real estate investment trust focused on originating senior and subordinate loans on transitional commercial real estate assets in major U.S. markets.
• The company is externally managed and advised by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P.

Risks and Challenges:

• The company faces risks related to rate moves, though management believes current positioning mitigates these risks.
• Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections.

Management Commentary and Tone:

• Richard Mack, CEO and Chairman, stated the team has focused on executing strategic priorities of resolving watchlist loans, repositioning REO assets, and deleveraging the balance sheet over the past seven quarters.
• Management remains steadfast in completing the work ahead.

Other Key Points:

• A conference call to discuss results was held on November 4, 2026, at 10:00 a.m. ET.
• An earnings presentation is available on the Investor Relations section of the company's website.
• The company is required to distribute at least 90% of its REIT taxable income as dividends to maintain REIT status.
• Distributable Earnings (Loss) is a non-GAAP measure used to evaluate performance excluding non-cash items, unrealized gains/losses, and one-time events.
• Diluted shares outstanding for Distributable Loss calculations include unvested RSUs and warrants if the warrant exercise price exceeds the average share price.
• Total liquidity as of November 2, 2026, was $142.7 million, including $136.8 million in cash.