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• Rocket Mortgage for commercial real estate.
• A Silicon Valley Bank for commercial real estate developers.

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• Senior Commercial Real Estate Loans: These are first-lien mortgage loans provided for the acquisition, development, or repositioning of transitional commercial properties.
• Mezzanine Loans: These are subordinate debt investments that provide additional financing layers beyond the senior loan, typically secured by ownership interests in the borrower.
• Preferred Equity Investments: These are equity positions that offer a preferential return and repayment priority over common equity, often used to bridge funding gaps in commercial real estate projects.

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• Experienced Commercial Real Estate Developers: These are companies engaged in the development, construction, or significant redevelopment and repositioning of commercial properties such as multifamily residential, office, industrial, or hospitality assets. They seek financing for their project pipelines.
• Commercial Real Estate Property Owners/Investors: These companies acquire, own, and manage income-producing commercial real estate assets. They typically seek financing for property acquisitions, refinancing existing debt, or funding capital improvements and value-add strategies for their portfolios.
• Institutional Real Estate Sponsors: Large, sophisticated real estate investment firms, private equity funds, or asset managers with substantial commercial real estate holdings. These sponsors require flexible and substantial financing solutions for their complex investment strategies across various property sectors.

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Claros Mortgage Trust (CMTG) has several major suppliers, primarily consisting of financial institutions that provide capital through credit facilities and repurchase agreements, as well as its external manager.

• Claros REIT Management LLC (private company)
• JPMorgan Chase & Co. (NYSE: JPM)
• The Goldman Sachs Group, Inc. (NYSE: GS)
• Wells Fargo & Company (NYSE: WFC)
• Citigroup Inc. (NYSE: C)
• Morgan Stanley (NYSE: MS)
• Barclays PLC (NYSE: BCS)
• Deutsche Bank AG (NYSE: DB)
• Bank of America Corporation (NYSE: BAC)
• Royal Bank of Canada (NYSE: RY)
• The PNC Financial Services Group, Inc. (NYSE: PNC)
• Truist Financial Corporation (NYSE: TFC)
• M&T Bank Corporation (NYSE: MTB)
• Bank of Montreal (NYSE: BMO)

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Richard Mack, Chief Executive Officer and Chairman

Mr. Mack co-founded Mack Real Estate Credit Strategies (MRECS) in 2014 and Mack Real Estate Group (MREG) in 2013, serving as Chief Executive Officer, a Managing Partner, and a member of the Investment Committee for both. Prior to founding MREG, he spent two decades at AREA Property Partners (formerly Apollo Real Estate Advisers), which he joined in 1993, and was the Chief Executive Officer of AREA's North American business. During his 20 years at AREA, Mr. Mack was involved in investing billions of equity capital in real estate transactions and was responsible for creating new business lines, including a subordinate debt business and ArCap. The Mack family sold AREA in 2013 and subsequently founded MREG. His career began in real estate investment banking at Shearson Lehman Hutton. MRECS is an SEC-registered investment advisor and hedge fund manager.

Michael McGillis, President and Chief Financial Officer

Mr. McGillis is the President and Chief Financial Officer of Claros Mortgage Trust and a Director. He joined MRECS in 2015 and has served Claros Mortgage Trust in various capacities since then, also holding the position of President of MREG and being a member of its debt and equity Investment Committees. Before joining MRECS, Mr. McGillis was with J.E. Robert Companies (JER) from 2006 to 2015, where he served as Managing Director, Head of U.S. Funds, and Chief Financial Officer. At JER, he was the CFO of JER, CFO of JER's U.S. fund business, and CFO of JER Investors Trust, which was an externally managed, publicly-traded mortgage REIT. He was also a member of JER's management committee, investment committee, valuation committee, and the boards of directors of various JER portfolio companies, focusing on private equity real estate funds. His earlier career included senior finance and investment management roles at Freddie Mac, Starcom Holdings, AEW Capital Management, Robertson-Ceco, and Price Waterhouse.

Priyanka Garg, Executive Vice President – Portfolio and Asset Management

Ms. Garg serves as Executive Vice President – Portfolio and Asset Management at Claros Mortgage Trust. She is also a Managing Director of MRECS and Head of Credit Strategies, joining MRECS in 2020 and serving as a member of its Investment Committee. Ms. Garg brings over 20 years of real estate investment management experience, including leadership positions at Treeview Real Estate Advisors, where she was Chief Operating Officer from 2011 to 2020, and Westbrook Partners. Her prior professional experience also includes roles with Perry Capital Real Estate Partners and Goldman Sachs, within its Whitehall Real Estate Funds group.

J. D. Siegel, Executive Vice President - General Counsel and Secretary

J. D. Siegel is the Executive Vice President - General Counsel and Secretary for Claros Mortgage Trust.

Kevin Cullinan, Executive Vice President - Originations

Kevin Cullinan holds the position of Executive Vice President - Originations at Claros Mortgage Trust.

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The key risks to Claros Mortgage Trust (CMTG) are primarily centered around the health of its loan portfolio and the broader commercial real estate (CRE) market, followed by liquidity concerns and interest rate fluctuations.

1. Credit Quality of Loan Portfolio and Commercial Real Estate Market Stress: The most significant risk to CMTG is the credit quality of its commercial real estate loan book. The company's financial health is directly tied to the performance of its loans, especially those collateralized by transitional properties in sectors like office and hospitality, which are currently experiencing challenging market fundamentals. CMTG has recorded substantial Current Expected Credit Loss (CECL) reserves, with a considerable portion allocated to its highest-risk loans, indicating expected losses within its portfolio. The company has reported GAAP net losses and distributable losses, largely driven by these loan loss provisions, reflecting the severe strain from non-performing assets and the cost of maintaining them. Analysts remain cautious due to persistent uncertainty in the commercial real estate market, particularly concerning office property values and overall credit stress.
2. Liquidity Risk: Claros Mortgage Trust faces significant liquidity risk, which has led to a downgrade in its credit ratings. The company's available liquidity has substantially declined, prompting actions such as asset sales and dividend cuts to enhance its cash position. Further deterioration in loan asset quality could necessitate increased credit reserves, thereby creating a drag on earnings and potentially requiring additional collateral for margin calls or funding unfunded commitments.
3. Interest Rate Risk and Timing of Federal Rate Cuts: The uncertain timing and trajectory of Federal Reserve interest rate changes pose a risk to CMTG's business. While not as dominant as credit quality, lower interest rates could potentially ease refinancing strains for distressed commercial property owners, which would be beneficial for CMTG. Conversely, a prolonged period of higher interest rates or unexpected rate hikes could further pressure borrowers, exacerbating loan performance issues and increasing the risk of principal losses for the company.

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The clear emerging threats for Claros Mortgage Trust (CMTG) are primarily centered on the ongoing distress in the commercial real estate (CRE) market, particularly:

• Prolonged High Interest Rates and the Resulting Refinancing Strain: The Federal Reserve's "higher for longer" interest rate policy continues to create significant challenges for CMTG's borrowers. With floating-rate loans, borrowers face substantially increased debt service costs. Combined with higher capitalization rates and tighter credit markets depressing property valuations, many borrowers are struggling to refinance maturing loans or maintain project profitability. This environment is leading to an emerging wave of loan defaults, non-accrual loans, and potential principal losses for CMTG as the full impact of these financing pressures continues to unfold across its portfolio.
• Structural Decline and Persistent Weakness in Key CRE Sectors (especially Office): The long-term shifts in work patterns, primarily the widespread adoption of remote and hybrid work, are causing a sustained reduction in demand, occupancy rates, and rental income for office properties. CMTG has exposure to this sector. As leases expire and tenants continue to rationalize their space, the valuations of these assets are projected to decline further, eroding collateral values and increasing the risk of loan defaults and credit losses. The full extent of this structural shift's impact on property values and borrower performance is still emerging.

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• The total U.S. commercial real estate mortgage market, specifically backed by income-producing properties, was approximately $4.5 trillion as of March 2023.
• Construction loans, which are a part of CMTG's offerings, amounted to around $470 billion in the U.S. as of Q1 2024.
• The total commercial real estate debt outstanding in the U.S. was estimated to be $5.9 trillion as of the fourth quarter of 2023. This figure increased to $4.79 trillion in Q4 2024 for total commercial and multifamily mortgage debt outstanding.
• In terms of annual origination volume for commercial real estate mortgage borrowing and lending in the U.S., the market totaled an estimated $498 billion in 2024. This is projected to increase by 16% to $583 billion in 2025 for commercial and multifamily lending.

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1. Increased Loan Originations, particularly in the Multifamily Sector: Claros Mortgage Trust anticipates an increase in transaction volumes in 2025, especially within the multifamily sector, which currently constitutes a significant portion of its portfolio. This expectation is underpinned by the belief in continued strong underlying fundamentals in commercial real estate and a projected easing of borrowing costs.
2. Redeployment of Capital from Resolved Watchlist Loans and Strategic Asset Sales: The company is actively focusing on resolving its watchlist loans to recapture and redeploy capital into more accretive uses. Claros Mortgage Trust has demonstrated progress in this area, having resolved a substantial number of loans in 2025, which has improved its liquidity and reduced leverage. Furthermore, CMTG is strategically evaluating opportunities to monetize selected real estate owned (REO) assets, particularly in the multifamily segment, anticipating strong market interest and potential for value enhancement.
3. Improved Liquidity and Reduced Leverage: Claros Mortgage Trust has made significant strides in enhancing its liquidity position and decreasing its unfunded loan commitments. This stronger financial standing, marked by a reduction in total borrowings and an increased pool of unencumbered assets, positions the company to capitalize on new investment opportunities and fund future loan originations more effectively.
4. Favorable Macroeconomic Conditions and Interest Rate Environment: While operating in a challenging high-interest rate environment, CMTG's management foresees "anticipated liquidity and borrowing cost relief on the horizon." A stabilization or potential decrease in interest rates would likely stimulate activity in the commercial real estate market, improve borrowing conditions, and enhance demand for new loans, thereby driving Claros Mortgage Trust's revenue growth.

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Capital Allocation Decisions for Claros Mortgage Trust (CMTG)

Share Repurchases

• On November 8, 2022, Claros Mortgage Trust's Board of Directors authorized a share repurchase program of up to $100 million of its common stock.

Share Issuance

• Claros Mortgage Trust completed its Initial Public Offering (IPO) in November 2021, issuing 5,524,934 shares of common stock at $18.65 per share.
• The IPO generated net proceeds of approximately $92.5 million, intended for originating, co-originating, and acquiring senior and subordinate loans on transitional commercial real estate assets or for general corporate and working capital purposes.
• Between 2022 and 2025, the number of outstanding shares generally ranged from approximately 138 million to 140 million.

Outbound Investments

• As a real estate investment trust, CMTG's primary business involves originating and investing in senior and subordinate loans on transitional commercial real estate assets across the U.S.
• In Q4 2022, CMTG originated approximately $3.5 billion in total loan commitments across 32 loans, funding $2.0 billion at closing.
• The loan portfolio decreased to $6.3 billion at September 30, 2024, from $6.8 billion at June 30, 2024, partly due to loan repayments.

Capital Expenditures

• Claros Mortgage Trust reported capital expenditures of approximately $1.35 million in Q4 2024, $1.32 million in Q3 2024, and $1.62 million in Q2 2024.
• In 2023, capital expenditures were approximately $2.09 million in Q4, $1.89 million in Q3, $1.66 million in Q2, and $3.02 million in Q1.