CIM Real Estate Finance Trust Inc., a publicly registered non-traded real estate investment trust, announced an 11% increase in its monthly distribution for October, November and December 2022, from $0.305 to $0.339 per share, resulting in an increase from $0.915 in the third quarter to $0.1017 per share for the fourth quarter. Annualized, the new distribution rate is equal to $0.4068 per share.
This increase of 11%, quarter over quarter, will be reflected in shareholders’ monthly distribution payments beginning with the October distribution, which is payable on November 1, 2022.
“[CIM Real Estate Finance Trust] has made significant progress on its path to becoming one of the largest credit-focused REITs,” said Richard Ressler, chairman of the board of directors, president and chief executive officer. “This greater size enables [the REIT] to access a larger pool of attractive market opportunities, diversify its portfolio and raise debt capital more efficiently. It is our goal to continue increasing our dividend as we also pursue multiple methods of increasing liquidity for all shareholders, including a potential future listing of our stock.”
Earlier this month, Comrit Investments 1 LP, a Tel Aviv-based investment fund, made a filing with the SEC indicating their intent to launch an unsolicited tender offer to purchase up to 22.4 million shares of CIM for $4.61 per share. The REIT’s most recent estimated net asset value per share was $7.20, as of March 31, 2021. Shares of the REIT most recently traded for $6.20 each on Realto, a secondary trading platform for non-traded securities.
CIM Real Estate Finance Trust had paid an annual investor distribution equal to $0.625 per share through 2019 before cutting the annual distribution to $0.34 per share in 2020.
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.