Wed, Aug 14, 6:40 PM (153 days ago)
CIM Real Estate Finance Trust, Inc. reported a significant decline in financial performance for the quarter ended June 30, 2024, with a net loss of $245.8 million, compared to net income of $31.9 million in the same period last year. Revenues decreased to $121.9 million from $140.7 million, driven by lower rental income and interest income. Notably, the company recognized a substantial increase in provisions for credit losses, totaling $216.9 million, reflecting heightened risk in its loan portfolio, particularly in office properties. Total assets decreased to $5.91 billion from $6.45 billion, primarily due to declines in real estate assets and loans held for investment. The company’s loans held-for-investment were valued at $4.2 billion, with a significant increase in current expected credit losses from $132.6 million to $409.8 million. The cash flow from operations was positive at $86.1 million, but financing activities showed a net cash outflow of $248 million, driven by debt repayments. Looking forward, CIM faces uncertainties related to rising interest rates and potential macroeconomic challenges impacting its borrowers and tenants. The company continues to monitor its portfolio closely, with plans to adapt its strategies in response to evolving market conditions.