Claros Mortgage Trust, Inc. announced that its Board of Directors suspended the quarterly dividend on its common stock. This suspension commences with the fourth quarter dividend that would have otherwise been paid in January 2025. The company had paid three regular quarterly dividends during 2024, totaling $0.60 per share, which exceeded its 2024 taxable income estimate.
CEO Richard Mack stated the decision was made to preserve capital and create added financial flexibility for capital allocation decisions. This strategic move aims to enhance stockholder value over the long-term. The Board will determine whether to reinstate the quarterly dividend based on broader market conditions, the company’s financial performance, and estimated REIT taxable income.
The dividend suspension reflects the company's focus on strengthening its balance sheet and navigating the challenging commercial real estate market. Preserving capital is a critical step in managing liquidity and addressing potential future obligations.
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