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Claros Mortgage Trust, Inc. (CMTG)
NYSE:CMTG
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Claros Mortgage Trust, Inc.
(NYSE:CMTG)
53Neutral
Positive Factors
Management strategy
Management expects resolutions of watchlist loans will pick up substantially in the coming quarters.
Negative Factors
Financial performance
Claros reported a third-quarter GAAP loss of $0.40 per share and a distributable loss of $0.17 per share, indicating financial struggles during the period.
Problem loans
Problem loans have increased, suggesting more realized losses lie ahead.
Claros Mortgage Trust, Inc. (CMTG) vs. S&P 500 (SPY)
Market Cap
$556.06M
Dividend Yield23.55%
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)0.85
Revenue Growth-45.51%
EPS Growth-3658.39%
CountryUS
EmployeesN/A
SectorReal Estate
Sector Strength74
IndustryREITs
Share Statistics
EPS (TTM)-1.59
Shares Outstanding139,362,660
10 Day Avg. Volume2,365,879
30 Day Avg. Volume1,500,582
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.02
Price to Cash Flow (P/CF)6.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.83Price Target Upside6.09% Upside
Rating ConsensusHold
Number of Analyst Covering4
Claros Mortgage Trust, Inc. Business Overview & Revenue Model
Company DescriptionClaros Mortgage Trust, Inc. (CMTG) is a real estate investment trust (REIT) that focuses on originating and acquiring commercial mortgage loans. The company primarily operates within the commercial real estate sector, providing financing solutions for a variety of property types, including office, multifamily, industrial, and retail properties. By offering capital to property owners and developers, CMTG plays a crucial role in supporting the commercial real estate market.
How the Company Makes MoneyClaros Mortgage Trust, Inc. makes money primarily through interest income generated from its portfolio of commercial mortgage loans. The company originates and acquires senior mortgage loans, mezzanine loans, and other commercial real estate-related debt investments. Interest income from these loans is the primary revenue stream for CMTG. Additionally, the company may earn fees from loan origination and servicing, as well as potential gains from the sale of loans or securities. CMTG's earnings are influenced by factors such as interest rate fluctuations, credit performance of its borrowers, and general economic conditions impacting the commercial real estate industry.
Claros Mortgage Trust, Inc. Financial Statement Overview
Summary
Claros Mortgage Trust, Inc. exhibits strengths in cash flow management and a debt-free balance sheet, which enhances its financial flexibility. However, the recent negative net income and declining profitability margins raise concerns about operational efficiency.Income Statement
Claros Mortgage Trust, Inc. shows significant fluctuations in revenue growth and profitability over the years. The most recent year reflects a sharp increase in total revenue but a substantial net loss, resulting in a negative net profit margin. EBIT and EBITDA margins have also dropped significantly compared to previous years, indicating potential operational challenges.55
Neutral
Balance Sheet
The company's balance sheet indicates no total debt in the latest year, improving its financial stability. However, the return on equity is negative due to the net loss, and the equity ratio remains stable. The overall financial position is stable, but the negative net income poses risks to equity returns.65
Positive
Cash Flow
Claros Mortgage Trust, Inc. shows a strong operating cash flow relative to net income, highlighting good cash generation capability despite reporting a net loss. Free cash flow remains positive, indicating effective cash management, but the decline in free cash flow growth compared to the previous period suggests potential challenges in maintaining cash flow momentum.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 97.78M | 129.83M | 270.20M | 248.30M | 273.07M | Gross Profit |
| 248.41M | 80.33M | 185.84M | 205.72M | 226.34M | EBIT |
| -220.50M | 107.53M | 371.50M | 170.55M | 202.41M | EBITDA |
| 10.49M | 0.00 | 216.24M | 176.90M | 202.41M | Net Income Common Stockholders |
| -221.26M | 6.03M | 112.06M | 170.55M | 202.41M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 99.08M | 187.30M | 7.80B | 310.19M | 427.51M | Total Assets |
| 6.97B | 8.07B | 8.24B | 7.46B | 6.95B | Total Debt |
| 1.70B | 1.87B | 1.70B | 1.25B | 1.57B | Net Debt |
| 1.60B | 1.68B | 1.39B | 935.12M | 1.14B | Total Liabilities |
| 4.96B | 5.77B | 5.79B | 4.85B | 4.33B | Stockholders Equity |
| 2.01B | 2.30B | 2.46B | 2.57B | 2.59B |
| Cash Flow | Free Cash Flow | |||
| 84.52M | 109.05M | 108.69M | 202.09M | 140.50M | Operating Cash Flow |
| 84.52M | 111.14M | 111.03M | 213.56M | 140.50M | Investing Cash Flow |
| 779.91M | -39.34M | -773.30M | -373.20M | -208.86M | Financing Cash Flow |
| -945.82M | -205.07M | 676.30M | 62.80M | 161.32M |
Claros Mortgage Trust, Inc. Technical Analysis
Neutral
3.61
Price Trends
3.33
Positive
4.76
Negative
6.32
Negative
Market Momentum
0.04
Negative
70.40
Negative
88.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTG, the sentiment is Neutral. The current price of 3.61 is above the 20-day moving average (MA) of 2.87, above the 50-day MA of 3.33, and below the 200-day MA of 6.32, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 70.40 is Negative, neither overbought nor oversold. The STOCH value of 88.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMTG.
Claros Mortgage Trust, Inc. Risk Analysis
Claros Mortgage Trust, Inc. disclosed 92 risk factors in its most recent earnings report. Claros Mortgage Trust, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Claros Mortgage Trust, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.67B | 17.96 | 5.55% | 9.82% | -0.97% | 3.75% | |
68 Neutral | $1.46B | 13.37 | 7.06% | 8.07% | -5.09% | 6.25% | |
61 Neutral | $1.37B | ― | -6.02% | 12.13% | -9.71% | -426.57% | |
61 Neutral | $4.76B | 18.33 | -3.11% | 9.66% | 6.25% | -20.78% | |
60 Neutral | $3.54B | ― | -5.01% | 10.85% | -12.86% | -182.05% | |
53 Neutral | $556.06M | ― | -10.27% | 23.55% | -45.51% | -3658.39% | |
51 Neutral | $266.06M | ― | -6.00% | 21.28% | -52.08% | 10.36% |
* Real Estate Sector Average
Performance Comparison
CMTG
Claros Mortgage Trust, Inc.
3.99
-5.14
-56.30%
ARI
Apollo Real Estate
9.98
0.14
1.42%
ACRE
Ares Commercial
4.85
-1.70
-25.95%
BXMT
Blackstone Mortgage
20.61
2.63
14.63%
STWD
Starwood Property
19.93
1.59
8.67%
LADR
Ladder Capital
11.66
1.62
16.14%
Claros Mortgage Trust, Inc. Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 24.91% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging environment for CMTG, with notable losses and credit migration issues. Despite these challenges, there are positive signs in transaction activity and market conditions, along with plans to enhance liquidity and strengthen the balance sheet.Highlights
Strong Transaction Activity
CMTG had $300 million in transaction activity, including repayments and loan sales executed at or close to par. Total of $1.3 billion of realizations during 2024 split evenly between repayments and loan sales.
Positive Trends in CMBS Market
In the CMBS market, spreads have tightened meaningfully over the past several quarters despite increasing primary issuance levels.
Resilient REO Portfolio Performance
The New York hotel portfolio, although impacted by recent legislation, has rebounded to all-time high revenue levels post-foreclosure.
Planned Liquidity Enhancements
Anticipation of $2 billion in gross realization proceeds, with 40% expected to increase liquidity and be redeployed.
Lowlights
GAAP Net Loss
CMTG reported a GAAP net loss of $0.72 per share and a distributable loss of $0.59 per share for the fourth quarter of 2024.
Dividend Pause
Quarterly dividend was paused to preserve capital and enhance financial flexibility.
Credit Migration and Watch List Loans
Credit migration in the portfolio continued as borrowers were impacted by challenging real estate environment, with several loans risk-rated four or five.
Impact of Interest Rate Environment
Interest rate driven valuation concerns persist, with a higher for longer rate environment affecting commercial real estate investors.
Legislation Impact on New York Hotel Portfolio
The New York City State Hotel Act legislation created uncertainty, impacting the valuation of the New York hotel portfolio.
Company Guidance
During the Claros Mortgage Trust fourth quarter 2024 earnings call, the company provided detailed guidance on their strategic priorities for 2025. The key focus will be on resolving watch list loans and enhancing liquidity, with plans to accelerate the resolution of non-accrual loans and REO assets. The company reported a GAAP net loss of $0.72 per share and a distributable loss of $0.59 per share for the fourth quarter. Their held-for-investment loan portfolio decreased to $6.1 billion, down from $6.3 billion due to $99 million in loan repayments and $205 million in loan sales. Additionally, the board decided to pause the quarterly dividend to preserve capital. Looking ahead, Claros plans to strategically deploy capital by deleveraging the portfolio and foreclosing on select multifamily assets, with anticipated resolutions generating up to $2 billion in gross realization proceeds. The company aims to improve credit metrics and liquidity, potentially resulting in a more favorable valuation of CMTG stock.Claros Mortgage Trust, Inc. Corporate Events
Financial Disclosures
Claros Mortgage Trust Faces GAAP Net Loss in Q4 2024
Negative
Feb 21, 2025
In February 2025, Claros Mortgage Trust, Inc. disclosed a financial presentation indicating a challenging financial period with a GAAP net loss of $100.7 million for the fourth quarter of 2024. Despite a decrease in their outstanding financings by $244 million during the quarter, the company’s loan portfolio remains substantial at $6.1 billion, with a focus on senior and floating-rate loans. The firm has managed to deleverage its portfolio significantly since 2023, but it faces a high percentage of loans with increased risk ratings, raising concerns for stakeholders.
Business Operations and StrategyFinancial Disclosures
Claros Mortgage Trust Reports $221M Net Loss in 2024
Negative
Feb 19, 2025
Claros Mortgage Trust, Inc. reported significant financial changes for the quarter and year ending December 31, 2024, showing a GAAP net loss of $221.3 million for the year. Despite the challenges, the company managed to achieve a total liquidity of $102 million and received $1.3 billion in loan repayment and sale proceeds for the year, reflecting a strong asset management focus. The company successfully reduced outstanding financings by $794 million over the year, with a total deleveraging of $643 million since 2023, and aims to redeploy capital to more accretive uses moving forward.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.