CIM Real Estate Finance Trust, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. Total revenues for the three months decreased to $121.4 million from $138.8 million in the same period of 2023, primarily due to a $15.3 million drop in the Credit segment, attributed to the suspension of interest income on three nonaccrual first mortgage loans totaling $372.2 million. The Real Estate segment also saw a decline, with revenues falling by $2.2 million.

Despite the revenue decline, total expenses for the quarter decreased to $121.3 million from $161.0 million, leading to a net income of $7.3 million, a notable recovery from a net loss of $11.0 million in the prior year. This improvement was driven by a significant reduction in the provision for credit losses, which fell by $25.7 million.

For the nine months ended September 30, 2024, total revenues were $377.7 million, down from $426.4 million in 2023. The company reported a net loss of $277.0 million, a stark contrast to a net income of $75.0 million in the same period last year. This decline was largely due to a $207.2 million increase in the provision for credit losses, reflecting challenges in the loan portfolio.

As of September 30, 2024, total assets were reported at $5.4 billion, down from $6.4 billion at the end of 2023. Total liabilities decreased to $3.4 billion, while total stockholders’ equity fell to $1.8 billion from $2.3 billion. The company’s loan portfolio consisted of 71 loans with a net book value of $3.5 billion, reflecting a decrease from $4.4 billion at the end of 2023.

Strategically, CIM Real Estate Finance Trust acquired two commercial properties for $44.1 million during the nine months ended September 30, 2024, and disposed of three properties for a total sales price of $60.8 million. The company also recorded impairment charges of $60.4 million, significantly higher than the $11.7 million recorded in the same period of 2023.

The company continues to adapt its investment strategy in response to market conditions, with plans to pursue a listing of its common stock on a national securities exchange, although no specific timeframe has been established. As of September 30, 2024, the company had $3.3 billion in total debt outstanding, with a weighted average interest rate of 6.0%.