Claros Mortgage Trust, Inc. (CMTG) reported a net loss of $221.2 million for the year ended December 31, 2024, compared to a net income of $6.0 million in 2023. The company's net interest income decreased by $66.3 million, primarily due to a smaller loan portfolio and a higher percentage of non-accrual loans. This decrease was partially offset by an $8.2 million increase in revenue from real estate owned, resulting from the full-year inclusion of revenue from a mixed-use property acquired in 2023 and improved performance of the hotel portfolio. Expenses increased by $9.6 million, mainly driven by higher operating expenses and interest expense related to real estate owned, and increased stock-based compensation.
The company's loan portfolio, valued at $6.1 billion at the end of 2024, consisted of senior and subordinate loans. As of December 31, 2024, the weighted average yield to maturity was 7.6%, with a weighted average term to initial maturity of 0.7 years and a weighted average term to fully extended maturity of 1.7 years. The portfolio's weighted average origination LTV was 70.4%, and the weighted average adjusted LTV was 72.2%. CMTG also held real estate owned (REO) assets, including a hotel portfolio and a mixed-use property, totaling $307 million in held-for-sale assets at year-end. During 2024, the company recognized an $80.5 million loss on the sale of its hotel portfolio.
Significant changes in the company's financial position included a net decrease in cash and cash equivalents of $81.4 million during 2024. The company's total leverage ratio was 2.8x at year-end, and its net debt-to-equity ratio was 2.4x. CMTG's Board of Directors paused quarterly dividend payments in December 2024 to preserve capital and enhance long-term stockholder value. The company had approximately $606 million in debt maturing in 2025, with $85.9 million repaid in January 2025 following the sale of a loan. The company also had $498.3 million in unfunded loan commitments at year-end.
CMTG's operations are externally managed by Claros REIT Management LP, an affiliate of Mack Real Estate Credit Strategies, L.P. The company's financial performance is subject to various risks, including those related to its investments, financing, and the overall economic environment. These risks are detailed in the filing's "Risk Factors" section. The company's outlook and future performance are subject to uncertainties related to market conditions, interest rates, and the ability to originate and acquire attractive investments.
The company's 10-K filing also included information on its cybersecurity risk management program, legal proceedings, and executive compensation, all of which are incorporated by reference into the company's definitive proxy statement. The filing notes that the company does not have any employees and that its operations are managed by its external manager. The company's financial statements were audited by PricewaterhouseCoopers LLP, who issued an unqualified opinion on the financial statements and the effectiveness of the company's internal control over financial reporting.
About Claros Mortgage Trust, Inc.
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