CIM Real Estate Finance Trust Posts $22.7 Million Profit

Asset sales, loan portfolio adjustments, and reduced credit losses support a rebound in Q3 2025 earnings

November 17, 2025

Strong Earnings Driven by Credit Recovery and Portfolio Shifts

CIM Real Estate Finance Trust, Inc. (CMFT) posted a net income of $22.7 million for the nine months ended September 30, 2025. That’s a sharp turnaround from the $277 million loss it reported during the same period last year. The improvement reflects a focused effort to streamline the portfolio, reduce credit risk, and manage liabilities more actively.

Revenue came in at $318.1 million for the period, down 16% year-over-year. The main driver was lower interest income, as the company reduced its loan exposure. But this decline was offset by lower expenses—particularly credit loss provisions, which dropped from $308.5 million to $73.4 million. That alone explains most of the earnings swing.

For Q3, CMFT earned $30.3 million. Total comprehensive income for the year-to-date period reached $91.2 million.

Strategic Dispositions and Credit Loss Reduction

CMFT made targeted decisions to exit underperforming positions:

• Sold five properties for $107.1 million, generating $102.7 million in proceeds and a $1.5 million gain.


• Disposed of $68.1 million in condominium units, resulting in $62.5 million in proceeds and a $6.3 million gain.

It also took control of two office properties through deeds-in-lieu of foreclosure, removing those loans from the credit book and converting them to real estate holdings. That reduced risk exposure and contributed to a $90 million decrease in the company’s credit loss reserves over the course of the year.

CMFT’s total loan portfolio stood at $3.2 billion, net of reserves, at quarter-end. Roughly 90% of the first mortgage loans were floating-rate and spread across sectors including office, multifamily, industrial, and hospitality. While the overall loan balance declined from last year, credit quality improved. The number of risk-rated 5 loans dropped, and total reserves fell from $392.1 million to $301.9 million.

Joint Venture Contributions and Investment Activity

The company’s investment in its joint venture with NewPoint JV continues to contribute meaningfully. CMFT recorded a $7.7 million gain from the JV year-to-date. It also received $52.1 million in distributions and added $25.9 million in new capital. As of September 30, CMFT’s equity in the JV was valued at $163 million.

Securities also played a role in the quarter. The company sold $61.3 million in commercial mortgage-backed securities (CMBS), realizing a $340,000 loss. Its remaining real estate-related securities—$246.1 million in total—include CMBS, a CLO subordinated note, and public and private equity securities.

While some positions showed unrealized losses, management noted that these were not driven by credit deterioration and expects them to recover over time. No material credit events were reported in the securities portfolio.

Managing Debt and Strengthening Liquidity

CMFT took an active approach to the liability side of the balance sheet. The company repaid $568.3 million in borrowings while raising $365.9 million in new debt. Net debt fell to $3.0 billion. As of September 30, the weighted average interest rate on outstanding debt was 5.2%, with an average maturity of 1.9 years.

Cash and cash equivalents increased from $181.3 million to $255.6 million. With restricted cash stable at $3.6 million, CMFT ended the quarter with total liquidity of over $259 million. This improvement came from a mix of asset sales, loan repayments, and JV distributions.

Distributions to shareholders continued at a pace of $0.08 per share per quarter, amounting to $111.6 million for the nine-month period. Common stock redemptions totaled 5.2 million shares, offset in part by 4.3 million shares issued.

Real Estate Operations and Leasing Performance

CMFT remains heavily weighted toward long-term net-leased commercial real estate. As of September 30, it owned 198 properties across 37 states, totaling 6.4 million rentable square feet. Occupancy, including month-to-month agreements, was 96.9%.

New real estate investments totaled $28.7 million across 14 properties. Meanwhile, $8.3 million was allocated to condominium development. The company also recorded a $7.7 million real estate impairment charge tied to revised assumptions on three properties—lower rent growth, slower leasing, and shorter hold periods drove the write-downs.

Outlook

CMFT spent most of the past 12 months restructuring. The results of that effort are showing up in earnings, liquidity, and improved asset quality. With over $3.1 billion in first mortgage loans and a largely stabilized real estate portfolio, the company is positioned to grow selectively, manage credit exposure more tightly, and keep leverage in check.

While office exposure remains a headwind, the company's active loan monitoring, tighter underwriting, and conservative balance sheet management help create more stability going forward. Credit reserves are still sizable, but the recent reduction suggests that risk conditions are moving in the right direction.

CMFT is staying focused on executing its strategy: managing risk, staying liquid, and creating long-term value through disciplined capital deployment. If that continues, it should have more options to work with in 2026.