Claros Mortgage Trust, Inc. (NYSE:CMTG) Q3 2023 Earnings Call Transcript

Richard Mack: That’s a very tough question. Go ahead, Priyanka.

Priyanka Garg: No, I was going to say the exact same thing, actually. Again, I think it’s just so market specific, asset specific. I mean if you are talking about a leased-up asset, it depends on the quality of the rent roll, weighted-average lease terms. So, there are so many things that go into that. I think the reference you made to what’s in the 10-Q, these are all related to transitional assets that are in our portfolio that have – that lease-up and stabilization is going to take time, which is, by definition, in the transitional asset arena. And so we have used cap rates that are indicative of a more normalized transaction environment, rather than cap rates today, which is obviously a very capital-constrained environment.

Jason Sabshon: Great. Thank you very much.

Operator: Thank you. We have no further questions. I will now hand back to Richard for any closing comments.

Richard Mack: Well, thank you all for joining us. I think that this environment is difficult. It’s going to continue to be difficult. And we are ready for it. It may not be fun every day, but we are set up for an environment like this and to work through problems and get to the other side. But it’s going to be a very bumpy road for the next year, we think, at least. We think we are very well set up to handle these problems and be ready for a capital market turnaround, hopefully by 2025. So, thank you all for joining us, and we look forward to speaking to you again at our next earnings call. Thank you so much.

Operator: Thank you. This now concludes today’s call. Thank you all for joining. You may now disconnect your lines.