CIM Real Estate Finance Trust Lowers Quarterly Net Asset Value Per Share

The board of CIM Real Estate Finance Trust, a publicly registered non-traded real estate investment trust formerly known as Cole Credit Property Trust IV, has declared a $7.26 net asset value per share for the company’s common stock as of March 31, 2020.

The board of CIM Real Estate Finance Trust, a publicly registered non-traded real estate investment trust formerly known as Cole Credit Property Trust IV, has declared a $7.26 net asset value per share for the company’s common stock as of March 31, 2020.

The REIT’s previous NAV per share was $7.77 as of December 31, 2019, and shares originally sold for $10.00 each.

The company said that it plans to publish an updated valuation on a quarterly, rather than an annual basis going forward, until it has “greater visibility into the impact of the COVID-19 pandemic on [its] property valuations.”

The valuation is based on the estimated market value of the REIT’s assets less the estimated market value of its liabilities, divided by the total number of shares outstanding, all as of as of March 31, 2020. Duff & Phelps LLC, a third-party valuation firm, assisted with the process and estimated a $6.99 to $7.54 per share per share valuation range with a midpoint of $7.26 per share.

As of March 31, 2020, the company had total assets of approximately $3.9 billion, total liabilities of nearly $1.7 billion, and 311.2 million shares outstanding. For comparison, as of December 31, 2019, the company had roughly $4.1 billion in total assets, nearly $1.7 billion in total liabilities, and 311.2 million shares outstanding.

During 2020, CIM Real Estate Finance Trust acquired 112 broadly syndicated loans with a net book value of $330.7 million, and sold 12 properties, consisting of nine retail properties and three anchored shopping centers, for $129 million.

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.

As of March 31, 2020, the REIT’s loan portfolio consisted of 124 loans with a net book value of $607.6 million, as well as a $3.1 billion property portfolio of 384 properties.

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