CIM REAL ESTATE FINANCE TRUST, INC.
For the period ended Dec 31, 2025. Filed Mar 30, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 30, 2026
CMRFStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-28.
0001498547-25-000018
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-30.
0001498547-26-000013
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 161 previous paragraphs and 172 current paragraphs.
105 unchanged; 53 reworded; 14 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 21 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
•Received proceeds from the repayment of portfolio investments on the CLO subordinated note of $6.1 million (see Note 2 — Summary of Significant Accounting Policies to the consolidated financial statements in this Annual Report on Form 10-K for additional details).
Current report
•Took control of assets securing two risk-rated 5 first mortgage loans, comprised of two office buildings, through deeds-in-lieu of foreclosure with an aggregate fair value of $151.0 million. During the year ended December 31, 2025, the Company disposed of one of the properties acquired via deed-in-lieu of foreclosure for an aggregate sales price of $91.3 million.
Current report
•Disposed of four additional net lease properties for an aggregate sales price of $15.8 million.
Current report
•Disposed of 16 condominium units for an aggregate sales price of $74.0 million.
Current report
(4)Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying consolidated balance sheets.
Current report
(6)Does not include the CLO subordinated note. As of December 31, 2025, the CLO subordinated note had an initial maturity date of July 2037 and an estimated effective yield of 15.4%.
Current report
(7)Does not include positions in maturity default.
Current report
(1)Excludes two properties acquired through deeds-in-lieu of foreclosure, with an aggregate fair value at the time of acquisition of $151.0 million and 794,000 of rentable square feet, as further discussed in Note 4 — Real Estate Assets to the consolidated financial statements in this Annual Report on Form 10-K.
Current report
Net Interest Income (amounts in thousands):
Current report
For the year ended December 31, 2025, net interest income for our Credit segment decreased $20.5 million. While decreases in average outstanding balances were the primary drivers of the declines in both interest income and interest expense, net interest income was adversely impacted by a larger decline in weighted average interest rates earned on credit investments relative to the decline in weighted average borrowing rates. Although interest expense declined due to lower borrowing rates and a meaningful reduction in average outstanding borrowings used to fund our credit investments, these impacts only partially offset the decline in interest income.
Current report
Other Income (Expense)
Current report
$85.7 million, driven by a net decrease in credit investments of $194.6 million during the year ended December 31, 2025. The decrease in credit investments was a result of a net decrease of $182.8 million in real estate-related securities and other, a net decrease of $106.0 million in first mortgage loans, partially related to the Company taking possession of the underlying assets of two first mortgage loans through deeds-in-lieu of foreclosure, and a net decrease of $15.3 million in liquid corporate senior loans. The decrease in credit investments was partially offset by an increase in corporate senior loans of $109.5 million. The decrease was further driven by a decline in interest rates during the year ended December 31, 2025 as compared to the year ended December 31, 2024. The change was partially offset by an increase in rental and other property income, driven by the net acquisition of 15 properties subsequent to December 31, 2024. See “— Results of Operations” for a more complete discussion of the factors impacting our operating performance.
Current report
Current Expected Credit Losses
Current report
•For collateral-dependent loans where foreclosure of the collateral is deemed probable, expected credit losses are measured as the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans where foreclosure is not considered probable, we apply a practical expedient to estimate expected losses based upon the difference between the collateral’s fair value (reduced by certain adjustments such as estimated costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. A loan is determined to be collateral-dependent if (i) the borrower or sponsor is experiencing financial difficulty, and (ii) repayment is expected to be provided through the sale of the underlying collateral. This assessment requires the use of significant judgment and is subject to uncertainty. In evaluating whether a borrower is experiencing financial difficulty, we consider various factors including, but not limited to, the sufficiency of the borrower’s operating cash flows to meet current and future debt service requirements, the borrower’s ability to refinance the loan, market liquidity conditions, and other circumstances that may affect the borrower’s ability to satisfy its contractual obligations under the loan agreement.
Removed paragraphs (3)
Previous report
•Disposed of seven properties for an aggregate sales price of $90.6 million.
Previous report
•Disposed of 11 condominium units for an aggregate sales price of $37.4 million.
Previous report
Other Expense
Reworded paragraphs (53)
Previous wording
As of December 31, 2024, our loan portfolio consisted of 68 loans with a net book value of $3.4 billion, and investments in real estate-related securities of $345.8 million. The Company conducts and expects to continue to conduct its commercial real estate lending business through CLR, a Maryland statutory trust and subsidiary of the Company which we expect to be taxed as a REIT for U.S. federal income tax purposes. As of December 31, 2024, CLR holds a diversified portfolio of approximately$1.5 billion, which includes first mortgage loans with a net book value of $1.05 billion, CMBS with an estimated fair value of $241.3 million, and an investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies — Investment in Unconsolidated Entities to the consolidated financial statements in this Annual Report on Form 10-K) with a carrying value of $171.8 million.
Current wording
As of December 31, 2025, our loan portfolio consisted of 78 loans with a net book value of $3.5 billion, and investments in real estate-related securities of $169.2 million. The Company conducts and expects to continue to conduct its commercial real estate lending business through CLR, a Maryland statutory trust and subsidiary of the Company which we expect to be taxed as a REIT for U.S. federal income tax purposes. As of December 31, 2025, CLR holds a diversified portfolio of approximately$1.6 billion, which includes first mortgage loans with a net book value of $1.4 billion, CMBS with an estimated fair value of $64.2 million, and an investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies — Investment in Unconsolidated Entities to the consolidated financial statements in this Annual Report on Form 10-K) with a carrying value of $138.7 million.
Previous wording
As of December 31, 2024, we owned 187 commercial real estate properties, which consisted of 176 retail properties, seven office properties, and four industrial properties, representing 16 industry sectors and comprising approximately 5.8 million rentable square feet of commercial space located in 36 states, with a net book value of $983.3 million. As of December 31, 2024, we owned condominium developments with a net book value of $64.9 million.
Current wording
As of December 31, 2025, we owned 202 commercial real estate properties, which consisted of 187 retail properties, eight office properties, and seven industrial properties, representing 22 industry sectors and comprising approximately 6.7 million rentable square feet of commercial space located in 37 states, with a net book value of $1.1 billion. As of December 31, 2025, we owned condominium developments with a net book value of $12.0 million.
Previous wording
During the year ended December 31, 2024, we disposed of seven properties encompassing 430,000 gross rentable square feet, and 11 condominium units for total consideration of $128.0 million, as further discussed in Note 4 — Real Estate Assets to the consolidated financial statements in this Annual Report on Form 10-K.
Current wording
During the year ended December 31, 2025, we disposed of five properties encompassing 402,000 gross rentable square feet, and 16 condominium units for total consideration of $181.1 million, as further discussed in Note 4 — Real Estate Assets to the consolidated financial statements in this Annual Report on Form 10-K.
Previous wording
Our operating results and cash flows are primarily influenced by interest income from our credit investments, rental and other property income from our commercial properties, interest expense on our indebtedness and credit investments and other operating expenses. In general, our business model is such that rising interest rates will correlate to increases in our net income, while declining interest rates will correlate to decreases in our net income. As of December 31, 2024, 95.1% of our CMBS and loans held-for-investment by carrying value earned a floating rate of interest, indexed to Secured Overnight Financing Rate (“SOFR”), and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. CMFT Management reviews our investment portfolio and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. In addition, as 100.0% of our rentable square feet was under lease, including any month-to-month agreements, as of December 31, 2024, with a weighted average remaining lease term of 10.5 years, we believe our exposure to changes in commercial rental rates on our portfolio is substantially mitigated, except for vacancies caused by tenant bankruptcies or other factors. Our manager regularly monitors the creditworthiness of our tenants by reviewing each tenant’s financial results, any available credit rating agency reports on the tenant or guarantor, the operating history of the property with such tenant, the tenant’s market share and track record within its industry segment, the general health and outlook of the tenant’s industry segment and other information for changes and possible trends. If our manager identifies significant changes or trends that may adversely affect the creditworthiness of a tenant, it will gather a more in-depth knowledge of the tenant’s financial condition and, if necessary, attempt to mitigate the tenant credit risk by evaluating the possible sale of the property or identifying a possible replacement tenant should the current tenant fail to perform on the lease.
Current wording
Our operating results and cash flows are primarily influenced by interest income from our credit investments, rental and other property income from our commercial properties, interest expense on our indebtedness and credit investments and other operating expenses. In general, our business model is such that rising interest rates will correlate to increases in our net income, while declining interest rates will correlate to decreases in our net income. As of December 31, 2025, 92.4% of our CMBS and loans held-for-investment by carrying value earned a floating rate of interest, indexed to Secured Overnight Financing Rate (“SOFR”), and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. CMFT Management reviews our investment portfolio and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. In addition, as 96.5% of our rentable square feet was under lease, including any month-to-month agreements, as of December 31, 2025, with a weighted average remaining lease term of 10.1 years, we believe our exposure to changes in commercial rental rates on our portfolio is substantially mitigated, except for vacancies caused by tenant bankruptcies or other factors. Our manager regularly monitors the creditworthiness of our tenants by reviewing each tenant’s financial results, any available credit rating agency reports on the tenant or guarantor, the operating history of the property with such tenant, the tenant’s market share and track record within its industry segment, the general health and outlook of the tenant’s industry segment and other information for changes and possible trends. If our manager identifies significant changes or trends that may adversely affect the creditworthiness of a tenant, it will gather a more in-depth knowledge of the tenant’s financial condition and, if necessary, attempt to mitigate the tenant credit risk by evaluating the possible sale of the property or identifying a possible replacement tenant should the current tenant fail to perform on the lease.
Previous wording
The year 2024 was characterized by a mix of positive and challenging developments leading to continued volatility in global markets. Investor concerns over inflation, higher interest rates, slowing economic growth, political and regulatory uncertainty and geopolitical conditions have persisted.
Current wording
The year 2025 was characterized by a mix of positive and challenging developments leading to continued volatility in global markets. Investor concerns over inflation, continued high interest rates, slowing economic growth, uncertainty around the impacts of imposed tariffs, political and regulatory uncertainty and geopolitical conditions have persisted.
Previous wording
Heightened inflation caused the Federal Reserve to raise interest rates in 2022 and 2023. Although the majority of our business model is such that elevated interest rates will, all else being equal, correlate to increases in our net income, increases in interest rates may adversely affect the ability of our existing borrowers to pay debt service, tenants and property values of our own portfolio and the assets that serve as collateral for our loans. The Federal Reserve began to decrease interest rates in the second half of 2024 and has indicated that it may continue to decrease interest rates in 2025. In a period of declining interest rates, our interest income on floating-rate investments may generally decrease, subject to the impact of interest rate floors in our investment portfolio.
Current wording
Heightened inflation caused the Federal Reserve to raise interest rates in 2022 and 2023. Although the majority of our business model is such that elevated interest rates will, all else being equal, correlate to increases in our net income, increases in interest rates may adversely affect the ability of our existing borrowers to pay debt service, tenants and property values of our own portfolio and the assets that serve as collateral for our loans. The Federal Reserve began to decrease interest rates in the second half of 2024 and in September, November, and December 2025, however the timing, direction and extent of any future interest rate changes remains uncertain. In a period of declining interest rates, our interest income on floating-rate investments may generally decrease, subject to the impact of interest rate floors in our investment portfolio.
Previous wording
•Net loss attributable to the Company of $292.3 million, or $0.67 per share.
Current wording
•Net income attributable to the Company of $52.4 million, or $0.12 per share.
Previous wording
•Redeemed 7.3 million shares under the share redemption program for $45.0 million at an average price of $6.15 per share.
Current wording
•Redeemed 6.8 million shares under the share redemption program for $37.1 million at an average price of $5.47 per share.
Previous wording
•Declared aggregate distributions of $0.45 per share.
Current wording
•Declared aggregate distributions of $0.34 per share.
Previous wording
•Originated $77.1 million of first mortgage loans.
Current wording
•Originated $609.9 million of first mortgage loans, $55.0 million of which was a result of a loan modification that was accounted for as a new loan for GAAP purposes.
Previous wording
•Funded $85.8 million in existing first mortgage loans.
Current wording
•Funded $91.7 million in existing first mortgage loans.
Previous wording
•Invested $65.4 million in liquid corporate senior loans and sold liquid corporate senior loans for an aggregate gross sales price of $452.9 million, including $265.4 million as part of the Master Participation Agreement (as defined in Note 13 — Related-Party Transactions and Arrangements to the consolidated financial statements in this Annual Report on Form 10-K). The liquid corporate senior loans served as the initial positions for the formation of a CLO, in which we invested $27.6 million in a CLO subordinated note.
Current wording
•Invested $1.3 million in liquid corporate senior loans and sold liquid corporate senior loans for an aggregate gross sales price of $5.1 million.
Previous wording
•Invested $78.7 million in corporate senior loans.
Current wording
•Invested $125.6 million in corporate senior loans.
Previous wording
•Received principal repayments on loans held-for-investment of $479.2 million.
Current wording
•Received principal repayments on loans held-for-investment of $562.0 million.
Previous wording
•Invested $24.9 million in CMBS, received principal repayments on CMBS of $107.4 million and sold CMBS for an aggregate gross sales price of $31.1 million.
Current wording
•Invested $26.7 million in CMBS, received principal repayments on CMBS of $128.8 million and sold CMBS for an aggregate gross sales price of $75.6 million.
Previous wording
•Funded an additional $58.7 million in NP JV Holdings (as defined in Note 2 — Summary of Significant Accounting Policies to the consolidated financial statements in this Annual Report on Form 10-K).
Current wording
•Funded an additional $26.5 million in NP JV Holdings (as defined in Note 2 — Summary of Significant Accounting Policies to the consolidated financial statements in this Annual Report on Form 10-K).
Previous wording
•Acquired two properties for an aggregate purchase price of $44.1 million.
Current wording
•Acquired 18 properties for an aggregate purchase price of $58.1 million.
Previous wording
•Decreased total debt by $756.5 million, reducing our ratio of debt to total gross assets net of gross intangible lease liabilities to 62.6%.
Current wording
•Decreased total debt by $80.4 million, reducing our ratio of debt to total gross assets net of gross intangible lease liabilities to 62.5%.
Previous wording
(1)Table does not include our investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies to the consolidated financial statements in this Annual Report on Form 10-K), which had a carrying value of $181.4 million, $171.8 million of which is held through CLR as of December 31, 2024.
Current wording
(1)Table does not include our investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies to the consolidated financial statements in this Annual Report on Form 10-K), which had a carrying value of $149.2 million, $138.7 million of which is held through CLR as of December 31, 2025.
Previous wording
(2)As of December 31, 2024, first mortgage loans with a net book value of $1.05 billion and CMBS with an estimated fair value of $241.3 million were held through CLR.
Current wording
(2)As of December 31, 2025, first mortgage loans with a net book value of $1.4 billion and CMBS with an estimated fair value of $64.2 million were held through CLR.
Previous wording
(1)As of December 31, 2024, 95.5% of our loans by principal balance earned a floating rate of interest indexed to SOFR.
Current wording
(1)As of December 31, 2025, 91.1% of our loans by principal balance earned a floating rate of interest indexed to SOFR.
Previous wording
(3)Table does not include our investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies — Investment in Unconsolidated Entities to the consolidated financial statements in this Annual Report on Form 10-K), which had a carrying value of $181.4 million as of December 31, 2024.
Current wording
(3)Table does not include our investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies — Investment in Unconsolidated Entities to the consolidated financial statements in this Annual Report on Form 10-K), which had a carrying value of $149.2 million as of December 31, 2025.
Previous wording
(4)The weighted-average interest rate for variable rate investments is based on the relevant floating benchmark plus a spread.
Current wording
(5)The weighted-average interest rate is based on the relevant fixed rate or floating benchmark plus a spread. Excludes loans on nonaccrual status.
Previous wording
As of December 31, 2024, we owned 187 commercial real estate properties located in 36 states, the gross rentable square feet of which was 100.0% leased, including any month-to-month agreements, with a weighted average lease term remaining of 10.5 years. During the year ended December 31, 2024, we disposed of seven properties for an aggregate gross sales price of $90.6 million. Additionally, during the year ended December 31, 2024, we sold 11 condominium units for an aggregate gross sales price of $37.4 million.
Current wording
As of December 31, 2025, we owned 202 commercial real estate properties located in 37 states, the gross rentable square feet of which was 96.5% leased, including any month-to-month agreements, with a weighted average lease term remaining of 10.1 years. During the year ended December 31, 2025, we disposed of five properties for an aggregate gross sales price of $107.1 million. Additionally, during the year ended December 31, 2025, we sold 16 condominium units for an aggregate gross sales price of $74.0 million.
Previous wording
The following table summarizes our real estate acquisition activity during the year ended December 31, 2024. No properties were acquired during the year ended December 31, 2023.
Current wording
The following table summarizes our real estate acquisition activity during the years ended December 31, 2025 and 2024:
Previous wording
Although there are variations in the specific terms of the leases of our properties, the following is a summary of the general structure of our current leases. Generally, the leases of the properties acquired provide for initial terms of ten or more years and provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions as the initial lease term. Certain leases also provide that in the event we wish to sell the property subject to that lease, we first must offer the lessee the right to purchase the property on the same terms and conditions as any offer which we intend to accept for the sale of the property. The properties are generally leased under net leases pursuant to which the tenant bears responsibility for substantially all property costs and expenses associated with ongoing maintenance and operation, including utilities, property taxes and insurance, while certain of the leases require us to maintain the roof, structure and parking areas of the building. Additionally, certain leases provide for increases in rent as a result of fixed increases, increases in the consumer price index, and/or increases in the tenant’s sales volume. The leases of the properties provide for annual rental payments (payable in monthly installments) ranging from $47,000 to $3.1 million (average of $461,000). Certain leases provide for limited increases in rent as a result of fixed increases or increases in the consumer price index.
Current wording
Although there are variations in the specific terms of the leases of our properties, the following is a summary of the general structure of our current leases. Generally, the leases of the properties acquired provide for initial terms of ten or more years and provide the tenant with one or more multi-year renewal options, subject to generally the same terms and conditions as the initial lease term. Certain leases also provide that in the event we wish to sell the property subject to that lease, we first must offer the lessee the right to purchase the property on the same terms and conditions as any offer which we intend to accept for the sale of the property. The properties are generally leased under net leases pursuant to which the tenant bears responsibility for substantially all property costs and expenses associated with ongoing maintenance and operation, including utilities, property taxes and insurance, while certain of the leases require us to maintain the roof, structure and parking areas of the building. Additionally, certain leases provide for increases in rent as a result of fixed increases, increases in the consumer price index, and/or increases in the tenant’s sales volume. The leases of the properties provide for annual rental payments (payable in monthly installments) ranging from $47,000 to $3.1 million (average of $399,000). Certain leases provide for limited increases in rent as a result of fixed increases or increases in the consumer price index.
Previous wording
We are not aware of any material trends or uncertainties, other than national economic conditions affecting real estate in general, such as inflation and heightened interest rates and the imposition of tariffs and other changes to trade policy in the U.S. and other jurisdictions, that may reasonably be expected to have a material impact on our results from the acquisition, management and operation of properties and credit investments other than those listed in Part I, Item 1A. Risk Factors.
Current wording
We are not aware of any material trends or uncertainties, other than national economic conditions affecting real estate in general, such as inflation and heightened interest rates and uncertainty around the impacts of imposed tariffs and other changes to trade policy in the U.S. and other jurisdictions, that may reasonably be expected to have a material impact on our results from the acquisition, management and operation of properties and credit investments other than those listed in Part I, Item 1A. Risk Factors.
Previous wording
The decrease in our Credit segment revenues of $63.5 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, was primarily due to the suspension of interest income on three of our risk-rated 5 first mortgage loans with a carrying value of $373.8 million that were placed on nonaccrual status and were past due on their interest payments as of December 31, 2024, as well as a decrease in the overall size of our investment portfolio and a decline in interest rates during the year ended December 31, 2024. As of December 31, 2024, we held credit investments with an outstanding principal balance of $4.4 billion compared to credit investments with an outstanding principal of $5.1 billion as of December 31, 2023.
Current wording
The decrease in our Credit segment revenues of $85.7 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily due to a decrease in the overall size of our investment portfolio and a decline in interest rates during the year ended December 31, 2025. As of December 31, 2025, we held credit investments with an outstanding principal balance of $4.2 billion compared to credit investments with an outstanding principal of $4.4 billion as of December 31, 2024.
Previous wording
Expenses for our Credit segment consist primarily of interest expense, increases (decreases) to our provision for credit losses, management fees, and general and administrative expenses. The increase in our Credit segment expenses of $191.5 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, was primarily due to a $208.5 million increase in the provision for credit losses, primarily due to the asset-specific credit loss provision on funded and unfunded commitments recognized on seven of the Company’s first mortgage loan investments and the increase in provision for credit loss related to two CMBS positions that was recognized due to a decline in the underlying collateral value during the year ended December 31, 2024.
Current wording
Expenses for our Credit segment consist primarily of interest expense, increases (decreases) to our provision for credit losses, management fees, and general and administrative expenses. The decrease in our Credit segment expenses of $342.1 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily due to a $272.0 million decrease in the provision for credit losses, primarily due to six first mortgage loans that were moved to a risk rating of 5 during the year ended December 31, 2024, compared to no downgrades to a risk rating of 5 during the year ended December 31, 2025. The decrease was further driven by a $65.2 million decrease in interest expense, primarily due to decreased outstanding borrowings used to fund credit investments during the year ended December 31, 2025.
Previous wording
Other expense for our Credit segment consists of gain on investment in unconsolidated entities, unrealized (loss) gain on equity securities, and loss on extinguishment of debt, along with dividend income from our equity securities. The decrease in our Credit segment other expense of $7.6 million during the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to a $25.2 million decrease in other (expense) income, net, driven by a $36.4 million decrease in loss on sale of CMBS during the year ended December 31, 2024, as compared to the same period in 2023, partially offset by a $13.7 million increase in loss on sale of liquid corporate senior loans during the year ended December 31, 2024, as compared to the same period in 2023. The decrease in other expense was further driven by a $1.9 million increase in gain on investment in unconsolidated entities and a decrease of $1.2 million in loss on extinguishment of debt during the year ended December 31, 2024, as compared to the same period in 2023. The decrease in other expense was partially offset by a $15.9 million unrealized loss on equity securities during the year ended December 31, 2024, compared to a $4.8 million unrealized gain on equity securities during the year ended December 31, 2023.
Current wording
Other income (expense) for our Credit segment consists of gain on investment in unconsolidated entities, unrealized gain (loss) on equity securities, and loss on extinguishment of debt, along with dividend income from equity securities owned. Our credit segment had other income of $18.5 million during the year ended December 31, 2025, as compared to other expense of $10.0 million during the year ended December 31, 2024. The increase in our Credit Segment other income (expense) of $28.5 million during the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily due to an unrealized gain on equity securities of $5.7 million during the year ended December 31, 2025 as compared to an unrealized loss on equity securities of $15.9 million during the year ended December 31, 2024, largely driven by the change in market value of our investment in an equity security of a public company. The increase was further driven by other income of $3.9 million, consisting of $756,000 in loss on sale of CMBS and liquid corporate senior loans, during the year ended December 31, 2025, as compared to other expense of $6.8 million, consisting of $17.3 million in loss on sale of CMBS and liquid corporate senior loans during the year ended December 31, 2024. The decrease in the loss on sale of CMBS and liquid corporate senior loans was slightly offset by a decrease in interest income of $4.4 million. The increase in other income (expense) was partially offset by a $4.5 million decrease in gain on investment in unconsolidated entities and a decrease of $676,000 in loss on extinguishment of debt during the year ended December 31, 2025, as compared to the year ended December 31, 2024.
Previous wording
The decrease in our Real Estate segment revenues of $21.5 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, was primarily due to the disposition of seven properties subsequent to December 31, 2023 and the disposition of 188 properties during the year ended December 31, 2023. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”.
Current wording
The increase in our Real Estate segment revenues of $18.1 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily due to the addition of 20 properties subsequent to December 31, 2024. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”.
Previous wording
The increase in our Real Estate segment expenses of $16.9 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, was primarily due to an increase in impairment charges of $31.8 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, as ten properties were deemed to be impaired during the year ended December 31, 2024, due to sales prices or revised cash flow estimates that were less than their respective carrying values, resulting in impairment charges of $52.2 million, as compared to six properties that were deemed to be impaired during the year ended December 31, 2023, resulting in impairment charges of $20.4 million. The increase was partially offset by the disposition of seven properties subsequent to December 31, 2023. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”.
Current wording
The decrease in our Real Estate segment expenses of $30.8 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily due to a decrease in impairment charges of $42.4 million for the year ended December 31, 2025, as compared to the year ended December 31, 2024, as four properties were deemed to be impaired during the year ended December 31, 2025, resulting in impairment charges of $9.9 million, as compared to ten properties that were deemed to be impaired during the year ended December 31, 2024, resulting in impairment charges of $52.2 million. The decrease in Real Estate segment expenses was partially offset by an increase in depreciation and amortization expense of $4.4 million and an increase in property operating expenses of $4.8 million driven by the addition of 20 properties subsequent to December 31, 2024. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”.
Previous wording
Other income for our Real Estate segment primarily consists of gain on disposition of real estate, loss on extinguishment of debt and other income. The decrease in our Real Estate segment other income of $41.9 million for the year ended December 31, 2024, as compared to the year ended December 31, 2023, was primarily due to the disposition of seven properties resulting in a net gain of $1.9 million during the year ended December 31, 2024, compared to the disposition of 188 properties resulting in a net gain of $44.4 million during the year ended December 31, 2023.
Current wording
Other income for our Real Estate segment primarily consists of gain on disposition of real estate and other income. The decrease in our Real Estate segment other income of $551,000 for the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily due to the disposition of five properties resulting in a net gain of $1.5 million during the year ended December 31, 2025, compared to the disposition of seven properties resulting in a net gain of $1.9 million during the year ended December 31, 2024.
Previous wording
Our corporate revenues, which consist primarily of rental income from our condominium and rental units acquired via foreclosure, did not meaningfully change during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
Current wording
Our corporate revenues, which consist primarily of rental income from our condominium and rental units acquired via foreclosure, decreased $319,000 during the year ended December 31, 2025 as compared to the year ended December 31, 2024, The Company disposed of 16 condominium units during the year ended December 31, 2025 and two units remained as of December 31, 2025.
Previous wording
Our corporate expenses consist primarily of general and administrative expenses, expense reimbursements to related parties, interest expense, net related to our credit facilities, and property operating expenses and impairment on our condominium and rental units acquired via foreclosure. The decrease in corporate expenses of $6.3 million during the year ended December 31, 2024 as compared to the year ended December 31, 2023, was partially due to a $5.6 million decrease in impairment charges related to condominium units during the year ended December 31, 2024, as compared to the year ended December 31, 2023, and a decrease in interest expense, net of $4.3 million, driven by the pay down and termination of the credit agreement with JPMorgan Chase Bank, N.A. and PNC Bank, N.A. (the “CMFT Credit Facility”) and the paydown and termination of the variable rate debt assumed by the Company upon completing the January 2021 foreclosure of assets which previously secured the Company's mezzanine loans (the “Assumed Variable Rate Debt”) during the year ended December 31, 2023. The decrease was further driven by a $3.4 million decrease in transaction-related expenses driven by a tax settlement related to the Company’s condominium units during the year ended December 31, 2023. In addition, we saw a decrease in property operating expenses of $1.9 million, primarily driven by decreased condominium-related legal expenses during the year ended December 31, 2024 as compared to the year ended December 31, 2023. The decrease was partially offset by an increase in general and administrative expenses of $8.9 million, primarily in connection with restricted stock unit related expenses recorded during the year ended December 31, 2024 as well as an increase in escrow and trustee fees and a non-recurring increase in taxes.
Current wording
Our corporate expenses consist primarily of general and administrative expenses, expense reimbursements to related parties, interest expense, net related to our credit facilities, and property operating expenses and impairment on our condominium and rental units acquired via foreclosure. The decrease in corporate expenses of $10.5 million during the year ended December 31, 2025 as compared to the year ended December 31, 2024, was partially due to no impairment charges related to condominium units during the year ended December 31, 2025, as compared to $9.1 million during the year ended December 31, 2024. The decrease was further driven by decreases of $2.1 million and $537,000 in property operating expense and real estate tax expense, respectively, related to the disposition of 16 condominium units during the year ended December 31, 2025. The decrease was partially offset by an increase in general and administrative expenses of $1.5 million, primarily in connection with restricted stock unit related expenses recorded during the year ended December 31, 2025, as well as increases in professional and escrow and trustee fees.
Previous wording
The increase in corporate other income of $911,000 during the year ended December 31, 2024, as compared to the year ended December 31, 2023, was primarily driven by a decrease of $4.4 million in loss on extinguishment of debt during the year ended December 31, 2024, as compared to the year ended December 31, 2023, primarily in connection with the paydown and termination of the CMFT Credit Facility and the refinanced Assumed Variable Rate Debt. The increase was further driven by the disposition of 11 condominium units resulting in a net gain of $4.8 million during year ended December 31, 2024, compared to the disposition of 18 condominium units resulting in a net gain of $3.6 million during the year ended December 31, 2023. The increase was partially offset by a decrease in other (expense) income, net of $4.7 million primarily due to a decrease in interest income generated by decreased short-term liquid investments included in cash and cash equivalents on the consolidated balance sheets during the year ended December 31, 2024, as compared to the year ended December 31, 2023.
Current wording
The increase in corporate other income of $1.2 million during the year ended December 31, 2025, as compared to the year ended December 31, 2024, was primarily driven by the disposition of 16 condominium units resulting in a net gain of $6.6 million during year ended December 31, 2025, compared to the disposition of 11 condominium units resulting in a net gain of $4.8 million during the year ended December 31, 2024. The increase was partially offset by a decrease in other income of $736,000 primarily due to a decrease in interest income generated by short-term liquid investments included in cash and cash equivalents on the consolidated balance sheets during the year ended December 31, 2025, as compared to the year ended December 31, 2024.
Previous wording
The following table reconciles our Real Estate segment net (loss) income, calculated in accordance with GAAP, to net operating income (in thousands):
Current wording
The following table reconciles our Real Estate segment net income (loss), calculated in accordance with GAAP, to net operating income (in thousands):
Previous wording
A total of 185 properties were acquired before January 1, 2023 and represent our “same store” properties during the years ended December 31, 2024 and 2023. “Non-same store” properties, for purposes of the table below, include properties acquired or disposed of on or after January 1, 2023.
Current wording
A total of 181 properties were acquired before January 1, 2024 and represent our “same store” properties during the years ended December 31, 2025 and 2024. “Non-same store” properties, for purposes of the table below, include properties acquired or disposed of on or after January 1, 2024.
Previous wording
Non-same store property net operating income decreased $19.8 million during the year ended December 31, 2024, as compared to the year ended December 31, 2023. The decrease was primarily due to the disposition of seven properties subsequent to December 31, 2023 in addition to the disposition of 188 properties during the year ended December 31, 2023.
Current wording
Non-same store property net operating income increased $11.7 million during the year ended December 31, 2025, as compared to the year ended December 31, 2024. The increase was primarily due to the acquisition of 20 properties, including two properties acquired through deeds-in-lieu of foreclosure, for an aggregate fair value at the time of acquisition of $209.1 million subsequent to December 31, 2024, partially offset by the disposition of five properties for an aggregate gross sales price of $107.1 million subsequent to December 31, 2024.
Previous wording
As of December 31, 2024, we had distributions payable of $16.5 million.
Current wording
As of December 31, 2025, we had distributions payable of $14.5 million.
Showing the first 40 of 53 pairs. Open the source sections for the rest.