CMTG Q2 Loss Balloons to $255M on $209M CECL Provision; Book Value Drops to $8.58
CMTG is trading near its 52-week low of $2.045 (2.7% below the low).
Summary
CMTG posted a $255.4M Q2 net loss after a $208.8M CECL provision, pushing book value down to $8.58 per share. Watchlist loans fell, but credit deterioration remains severe.
Key Events · Earnings and Guidance · CMTG
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Q2 Net Loss of $255.4M
Driven by a $208.8 million provision for CECL reserves and $29.6 million in losses on REO reclassified to held-for-sale, the GAAP net loss came in at $255.4 million, or $1.81 per share.
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Book Value Drops to $8.58/Share
Book value per share fell 17% to $8.58 from $10.33 at Q1 2026, primarily due to increased specific CECL reserves on risk-rated 5 loans.
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CECL Reserves Surge to 16.9% of UPB
Total CECL reserves reached $567.4 million, or 16.9% of unpaid principal balance, with specific reserves of 32.0% on risk-rated 5 loans after downgrading four loans totaling $447 million UPB.
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Watchlist Loans Decline but Credit Stress Persists
Watchlist held-for-investment loans fell to $1.2 billion (12 loans) from $1.7 billion at year-end, yet risk-rated 5 loans still represent $1.1 billion net of specific reserves.
Analysis · CMTG · Real Estate & Construction
A steep Q2 GAAP net loss of $255.4 million hit Claros Mortgage Trust, fueled by a $208.8 million provision for credit losses after four loans totaling $447 million were downgraded to risk-rated 5. Book value per share tumbled to $8.58 from $10.33, and the distributable loss reached $0.63 per share. Although watchlist loans declined and post-quarter resolutions signal some progress, the sheer scale of reserve building and the 17% erosion in book value point to deep credit stress in the loan portfolio. With the stock trading near its 52-week low, these results underscore the challenge of working through troubled commercial real estate exposure.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 35.8% of the 1051 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CMTG was trading at $1.99 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $290.3M. The 52-week trading range was $2.05 to $3.99. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.