Claros Mortgage Trust Posts Upbeat Q3 Results

Real estate investment firm Claros Mortgage Trust, Inc. (CMTG) has reported better-than-expected financial results for the third quarter of 2021.

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The company is primarily focused on originating senior and subordinate loans on transitional commercial real estate assets.

Shares of Claros lost 4.4% on Monday to close at $16.45. (See Insiders’ Hot Stocks on TipRanks)

Q3 Results

The company reported adjusted earnings of $0.34 per share, higher than the Street’s estimate of $0.30 per share and the year-ago figure of $0.27 per share.

Total revenue amounted to $64.4 million, beating analysts’ expectations of $56.31 million but lower than $66.2 million reported in the third quarter of 2020.

CEO Comments

The CEO and Chairman of CMTG, Richard Mack, said, “In the third quarter, our team delivered a solid performance with regard to loan originations, committing more than $900 million of floating-rate transitional loans across major U.S. markets. Consistent with our track record of disciplined underwriting, these loans were backed by institutional quality collateral.”

“We continue to see healthy demand for both new transitional CRE loans as well as the recapitalization of existing transitional CRE loans, which aligns well with our investment strategy. This, coupled with our team’s deep expertise in all phases of transitional CRE asset management, will enable us to deliver attractive risk-adjusted returns to our shareholders over the long term,” Mack added.

Price Target

Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 2 Holds. The average Claros Mortgage Trust price target of $18.90 implies nearly 15% upside potential. Shares have lost 3.2% over the past year.

Smart Score

According to TipRanks’ Smart Score rating system, Claros scores an 8 out of 10, suggesting that the stock is likely to outperform market averages.