CIM Real Estate Finance Trust Inc., a publicly registered non-traded real estate investment trust, has completed its merger with affiliated non-traded REIT, CIM Income NAV Inc., in a stock-for-stock, tax-free merger transaction.
CIM Real Estate Finance Trust said that the transaction marks another step in its business plan execution and anticipated public listing in 2022.
Following the merger, CIM Real Estate Finance Trust will be a credit-focused REIT with approximately $6.1 billion in enterprise value and more than $3.1 billion in equity value. The combined company’s portfolio includes 590 properties totaling 23.8 million square feet.
The REIT invests in credit leases and senior secured loans and believes that it will benefit from “the greater scale, financial strength, and improved access to capital markets.”
“We believe the merger will result in significant benefits for stockholders, and in particular, the increased scale should make the company more attractive to investors as it prepares for a public market listing,” said Richard Ressler, principal and co-founder of CIM Group.
CIM Income NAV stockholders approved the merger at a special meeting of stockholders earlier this week where approximately 16 million shares voted in favor, 229,000 voted against, and 895,200 abstained.
CIM Income NAV stockholders will receive an approximate 10.6 percent premium for each share of common stock, based on the average exchange ratio for each share class.
As previously reported, as of July 31, 2021, CIM Income NAV shares were valued between $16.33 and $17.07 each, depending on share class. CIM Real Estate Finance Trust’s most recent NAV per share was $7.20 as of March 31, 2021.
Class D shareholders will receive 2.574 shares of CIM Real Estate Finance Trust common stock, which is valued at approximately $18.53 per share.
Class T shareholders will receive 2.510 shares of CIM Real Estate Finance Trust common stock, which is valued at approximately $18.07 per share.
Class S shareholders will receive 2.508 shares of CIM Real Estate Finance Trust common stock, which is valued at approximately $18.06 per share.
Class I shareholders will receive 2.622 shares of CIM Real Estate Finance Trust common stock, which is valued at approximately $18.88 per share.
In December 2020, CIM Real Estate Finance Trust completed its stock-for-stock merger transactions with two other affiliated non-traded REITs, Cole Office & Industrial REIT and Cole Credit Property Trust V.
CIM Real Estate Finance Trust primarily owns and operates a portfolio of core commercial real estate assets consisting of net leased properties and a portfolio of commercial mortgage loans. The REIT launched its offering in January 2012 and raised more than $3 billion prior to closing in April 2014.
CIM Income NAV launched its offering in December 2011 and had raised approximately $888.5 million in investor equity as of August 16, 2021.