Claros Mortgage Trust Exceeds $2.5B Resolutions, Lowers Net Debt-to-Equity to 1.9x
Claros Mortgage Trust resolved $2.5B in watch list and other loans in 2025, exceeding its $2.0B target and continued momentum with $389M repaid in early 2026. Net debt-to-equity improved to 1.9x after $2.0B of deleveraging and a $500M SOFR+675bp term loan, raising liquidity to $153M.
1. Fourth-Quarter Financial Results
Claros reported a GAAP net loss of $1.56 per share and a distributable loss of $0.71 in Q4, driven by a shrinking held-for-investment loan portfolio of $3.7B and a CECL reserve build to $443M (10.9% of UPB) after a $212M provision.
2. Loan Resolutions and Portfolio Turnover
Management resolved 11 watch list loans totaling $1.3B UPB in 2025 and surpassed its $2.0B resolution target by closing $2.5B of loans. Early 2026 momentum included $389M of full repayments, notably a non-accrual New York City land loan from 2021.
3. Deleveraging and Liquidity Improvement
Net debt-to-equity fell to 1.9x following $2.0B of deleveraging, including early-2026 actions. Claros secured a $500M senior secured term loan at SOFR+675bp with detachable warrants, lifting liquidity to $153M and enhancing balance sheet flexibility.
4. 2026 Outlook and Strategy
Management expects gradual real estate improvement driven by reduced new supply, tighter credit spreads and lower financing costs, with increased demand in industrial, AI-related and domestic manufacturing sectors. The company will focus on asset management and decisive execution to position for new lending opportunities late in 2026.