CIM Real Estate Finance Trust Reports Q1 Loss

The company took control of two office assets via foreclosure and continues to navigate credit challenges in its loan book.

May 15, 2025

Active repositioning in real estate

CIM Real Estate Finance Trust, Inc. closed out Q1 2025 with a net loss of $32.9 million. The company continues to manage through portfolio shifts, market headwinds, and credit pressures—while expanding its real estate footprint and keeping leasing metrics strong.

This quarter, CMFT added two office assets to its portfolio through deed-in-lieu of foreclosure transactions. These additions brought the company’s total commercial footprint to 186 properties across 36 states, totaling 6.6 million square feet. Occupancy stood at 94.8%, including month-to-month leases.

Real estate assets grew to $1.17 billion from $1.06 billion at year-end. The foreclosed properties accounted for most of that increase, supported by new lease intangibles and continued investment in development projects. At the same time, CMFT sold three retail properties and a set of condominiums, exiting those positions with a modest gain.

Credit book remains under pressure

The company’s $3.3 billion loan portfolio —comprising 68 loans—continues to face credit strain. CMFT booked a $61.8 million provision for credit losses during the quarter, reflecting specific adjustments to six first mortgage loans. Two of those loans transitioned to real estate ownership this quarter, resulting in asset write-downs and adjustments to loss reserves.

On a net basis, the loans held-for-investment decreased from $3.76 billion at year-end to $3.6 billion. In addition to the foreclosure transfers, CMFT recorded $90.8 million in write-offs, including $3.4 million related to liquid credit loan sales.

Mixed results in lending and securities

Rental and property income landed at $28.8 million, up from $24.6 million in Q1 2024. But the increase came alongside higher property management and operating costs. On the lending side, interest income dropped to $77.6 million, driven by lower loan balances and reduced originations.

The securities book delivered mixed signals. CMFT posted gains on equity positions but recorded valuation losses on structured instruments—particularly one CMBS position that experienced credit deterioration. A $71 million reclassification of unrealized losses added to the quarter’s expense line.

Managing cash and capital

CMFT ended the quarter with $139.3 million in cash and $3.1 billion in total liabilities. The company:

• Paid out $32.5 million in distributions


• Repurchased $11.2 million in stock


• Issued $90.8 million in new debt


• Repaid $116.7 million in borrowings

Redemptions continued through the share repurchase program, and as of March 28, the company’s updated NAV per share is $5.22.

What’s next

The company remains focused on asset-by-asset risk management, leaning into leasing stability while continuing to refine its loan exposure. As new debt structures and asset sales come into play, CMFT is positioning itself to keep flexibility high and credit discipline sharp.