CIM Real Estate Finance Trust, Inc. reported a net loss of $292.3 million for the fiscal year ending December 31, 2024, translating to a loss of $0.67 per share. This marks a significant decline from the previous year, where the company recorded a net income of $28.1 million. Total revenues decreased by approximately 15% to $483.9 million, down from $568.9 million in 2023. The decline in revenue was primarily attributed to reduced interest income from credit investments, particularly due to three first mortgage loans that were placed on nonaccrual status, as well as a decrease in the overall size of the investment portfolio.
In terms of operational changes, CIM Real Estate Finance Trust's credit portfolio consisted of 68 loans with a net book value of $3.4 billion as of December 31, 2024. The company also reported a significant increase in its provision for credit losses, which rose by $208.5 million, reflecting concerns over the performance of certain loans. The real estate segment also faced challenges, with revenues declining by $21.5 million, largely due to the sale of seven properties and a decrease in rental income from previously owned assets.
The company engaged in strategic activities during the year, including the acquisition of two properties for $44.1 million and the disposal of seven properties for $90.6 million. As of the end of 2024, CIM owned 187 commercial properties, all of which were fully leased, comprising approximately 5.8 million rentable square feet across 36 states. The weighted average remaining lease term for these properties was reported at 10.5 years, indicating a stable income stream despite the challenges faced in the broader economic environment.
Looking ahead, CIM Real Estate Finance Trust expressed cautious optimism regarding its future performance, contingent on market conditions and the ability to manage its credit and real estate portfolios effectively. The company plans to continue monitoring its investments closely and is prepared to adapt its strategies in response to evolving market dynamics. However, the ongoing economic uncertainties, including inflation and interest rate fluctuations, may pose risks to its operational and financial performance in the coming periods.
About CIM REAL ESTATE FINANCE TRUST, INC.
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