Claros Mortgage Trust, Inc. (CMTG) reported a net loss of $489.1 million for the year ended December 31, 2025, or $3.49 per share, compared to a net loss of $221.3 million, or $1.60 per share, for the year ended December 31, 2024. The company's total net revenue was $187.8 million, a decrease from $248.4 million in the previous year. The decrease in net revenue was primarily due to a decrease in net interest income of $76.5 million, driven by a reduction in the size of the loan portfolio and an increase in loans on non-accrual status. This was partially offset by a $16.0 million increase in revenue from real estate owned (REO) assets, attributable to higher occupancy and rates at the hotel portfolio and revenue from newly foreclosed multifamily properties.
The company's expenses totaled $178.6 million, an increase of $13.6 million compared to the previous year. This increase was primarily due to higher operating expenses for REO assets ($10.6 million) and increased interest expense on REO ($6.5 million), as well as a $4.3 million increase in general and administrative expenses. These increases were partially offset by a decrease in management fees of $4.1 million and a decrease in stock-based compensation of $4.0 million. The company's loan portfolio, based on carrying value, stood at $3.7 billion as of December 31, 2025, consisting of 33 senior and subordinate loans. The weighted average yield to maturity was 6.2%, with a weighted average term to initial maturity of 0.5 years and a weighted average term to fully extended maturity of 1.1 years.
During 2025, CMTG resolved $2.6 billion of unpaid principal balance prior to charge-offs, including $1.3 billion of watchlist loans and $324.6 million of loans classified as held-for-sale as of the prior year-end. Resolutions included full and partial loan repayments, loan sales, discounted payoffs, and mortgage foreclosures. As of December 31, 2025, the company's portfolio included eight REO assets with a total carrying value of $746.8 million, including related net lease intangible assets. The company's net debt-to-equity ratio was 1.9x, and its Total Leverage Ratio was 2.5x. The company expects its Total Leverage Ratio to range from 2.0x to 3.0x going forward.
As part of its financing strategy, CMTG seeks diverse financing sources. As of December 31, 2025, the company had $4.2 billion of capacity under its repurchase agreements and term participation facility, with $2.2 billion outstanding. The company also had $178.0 million outstanding related to asset-specific financings in the form of notes payable, which were subsequently fully extinguished. Additionally, the company had $235.0 million of debt related to its REO hotel portfolio and $556.2 million outstanding under a secured term loan. In January 2026, the secured term loan was refinanced with a new $500.0 million secured term loan maturing in 2030.
The company's Board of Directors paused quarterly dividend payments on its common stock in December 2024. The timing and amount of any future dividends will depend on various factors, including cash generated by operating activities, financial condition, capital requirements, and REIT distribution requirements. The company's investment guidelines and strategies may be changed without stockholder consent. The company is externally managed by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P.
About Claros Mortgage Trust, Inc.
Claros Mortgage Trust, Inc. is a real estate finance company specializing in originating senior and subordinate loans on transitional commercial real estate in major U.S. markets. It focuses on high-quality, value-add properties requiring repositioning or development, offering debt solutions to experienced borrowers. The company aims to generate attractive risk-adjusted returns through diversified CRE loan portfolios, primarily holding loans to maturity, with a focus on strategic asset management and capital preservation.
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