Four real estate investment trusts sponsored by affiliates of CIM Group will return to updating their respective net asset values on an annual basis, as opposed to quarterly, according to filings with the Securities and Exchange Commission.
The REITs include Cole Credit Property Trust V Inc., Cole Office & Industrial REIT (CCIT III) Inc., CIM Real Estate Finance Trust Inc., Cole Office & Industrial REIT (CCIT II) Inc.
The REITs changed their respective valuation policies during the COVID-19 pandemic, citing the need to ensure that the real estate values included in the companies’ NAVs were current during the period of economic disruption.
The REITs each indicated that their NAVs per share and rent collections remained relatively stable during the first and second quarters of 2020, minimizing the likelihood that future rent abatements or deferrals would occur and negatively impact the NAVs.
The boards believe that it is in the best interests of the companies and stockholders to stop incurring the additional costs associated with the quarterly valuations and return to updating the NAV on an annual basis in accordance with its valuation policies.
Another CIM-sponsored REIT, CIM Income NAV Inc. (INAV), a monthly NAV REIT, will return to valuing its real estate portfolio on a rolling annual basis in accordance with its valuation policies. However, it will continue to publish a NAV per share on a monthly basis.
In early September, CIM Real Estate Finance Trust, Cole Office & Industrial REIT (CCIT II), Cole Office & Industrial REIT (CCIT III), and Cole Credit Property Trust V agreed to merge in separate stock-for-stock transactions, with CIM Real Estate Finance Trust as the surviving entity. The transactions are expected to close in the fourth quarter of 2020, pending stockholders’ approval.
The combined company will have approximately $5.9 billion in total asset value, primarily invested in net lease assets and commercial real estate debt.
Editor’s note: This story was updated at 10:00 a.m. PST to correct the original story, which incorrectly reported that CIM Income NAV will publish their NAV per share on an annual basis. The REIT will value its real estate portfolio on an annual basis but will continue to publish quarterly. The DI Wire regrets the mistake.