Claros Mortgage Trust, Inc. (NYSE: CMTG) reported a GAAP net loss of $219.2 million for the fourth quarter of 2025, translating to $1.56 per share, and a full‑year loss of $489.1 million, or $3.49 per share. The REIT also posted a distributable loss of $101.7 million ($0.71 per share) for the quarter and $269.0 million ($1.88 per share) for the year. Distributable earnings before realized gains and losses were $2.9 million ($0.02 per share) for the quarter and $35.2 million ($0.24 per share) for the year.
The losses are a sharp decline from the fourth quarter of 2024, when the company recorded a GAAP net loss of $100.7 million ($0.72 per share) and a distributable loss of $83.2 million ($0.59 per share). The year‑to‑year comparison shows a doubling of the net loss and a 2.5‑fold increase in the distributable loss, underscoring the impact of the company’s aggressive loan‑resolution program.
Management highlighted that the 2025 loan‑resolution effort totaled $2.5 billion, a key driver of the current losses. CEO Richard Mack said, "Throughout 2025, our team remained focused on executing the strategic priorities we established at the beginning of the year. These efforts resulted in $2.5 billion in loan resolutions, increased liquidity, and continued deleveraging, which further strengthened our balance sheet. As we enter 2026, we believe this momentum will position us well to advance our strategy and continue repositioning the portfolio." The shift from originator to owner‑operator has placed near‑term earnings pressure on the REIT, but the company is prioritizing balance‑sheet cleanup and liquidity.
Investors reacted negatively to the earnings miss, citing the significant EPS shortfall and the large distributable loss. The market’s response reflects concerns about the ongoing credit losses and the near‑term impact of the loan‑resolution strategy.
The results signal that Claros Mortgage Trust is in a restructuring phase, with the company focusing on deleveraging and liquidity. While the current losses are substantial, the company’s strategy aims to position it for a more sustainable earnings profile in 2026 and beyond, contingent on the continued reduction of credit losses and the successful execution of its portfolio repositioning plan.
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