CIM Commercial Trust Corporation (NASDAQ & TASE: CMCT)
("we", "our", “CMCT”, “CIM Commercial”, or the "Company"), a real
estate investment trust ("REIT") that primarily acquires, owns, and
operates Class A and creative office assets in vibrant and
improving urban communities throughout the United States, today
reported operating results for the three months ended
September 30, 2018.
Third Quarter 2018 Highlights
- Annualized rent per occupied square
foot1 on a same-store basis increased 6.8% to $43.30 as of
September 30, 2018 compared to $40.54 as of September 30,
2017; annualized rent per occupied square foot across all
properties was $44.86 as of September 30, 2018.
- Our same-store office portfolio was
94.2% leased as of September 30, 2018.
- During the third quarter of 2018, we
executed 40,567 square feet of leases with terms longer than 12
months, of which 34,026 square feet were recurring leases executed
at our same-store office portfolio, representing same-store cash
rent growth per square foot of 25.0%.
- Net loss attributable to common
stockholders was $4,448,000, or $0.10 per diluted share, for the
third quarter of 2018.
- Same-store office segment net operating
income (“NOI”), excluding lease termination income,2 increased
3.9%, and same-store office cash NOI, excluding lease termination
income,2 increased 3.0%, for the third quarter of 2018 from the
corresponding period in 2017.
- Same-store office segment NOI2
decreased 7.0%, while same-store office cash NOI2 increased 2.7%,
for the third quarter of 2018 from the corresponding period in
2017.
- Funds from operations (“FFO”)
attributable to common stockholders was $8,862,000, or $0.20 per
diluted share, for the third quarter of 2018.
Potential Recapitalization
As previously announced, CMCT is actively exploring a potential
recapitalization plan with the purpose of, among other things,
unlocking embedded value, enhancing growth prospects and improving
the trading liquidity of its common stock. There can be no
guarantee that the potential recapitalization will occur or, if any
or all of the steps of the potential recapitalization occur, that
the potential recapitalization will occur in the form currently
contemplated. If any or all of the potential recapitalization
occurs, the financial information reported herein may not
necessarily be indicative of future operating results or operating
conditions.
If the potential recapitalization is consummated, CMCT's
remaining portfolio would primarily consist of approximately
725,000 rentable square feet of office space, a 503-room hotel and
ancillary parking garage, and properties with development
opportunities located in Oakland, California, Washington, D.C.,
Austin, Texas, and Sacramento, California. The Company believes
that these existing development opportunities, as well as CMCT's
operating properties in Los Angeles, San Francisco and Austin with
below market in-place office rents, would position CMCT for
growth.
Following the potential recapitalization, the Company would
remain principally focused on Class A and creative office assets.
For the benefit of all classes of CMCT shareholders, the Company
may also participate more actively in additional urban real estate
strategies and product types of CIM Group in order to more fully
leverage CIM Group's large-scale platform and capabilities.
The Company intends to continue to maintain a highly-flexible
capital structure and expects to continue to target a 45% common
equity percentage of total capitalization, based on fair value.
______________________________
1 Annualized rent per occupied square foot represents gross
monthly base rent under leases commenced as of the specified
periods, multiplied by twelve. This amount reflects total cash rent
before abatements. Where applicable, annualized rent has been
grossed up by adding annualized expense reimbursements to base
rent. Annualized rent for certain office properties includes rent
attributable to retail. 2 Please see our definition of
"same-store" on page 10 and a reconciliation of these metrics to
net income starting on page 11.
Financial Highlights
As of September 30, 2018, our real estate portfolio
consists of 21 assets, all of which are fee-simple properties. The
portfolio includes 19 office properties (including one parking
garage and two development sites, one of which is being used as a
parking lot), totaling approximately 3.4 million rentable square
feet and one hotel, which has 503 rooms and an ancillary parking
garage. We also operate a lending business.
Third Quarter 2018
Net loss attributable to common stockholders was $4,448,000, or
$0.10 per diluted share of common stock, for the three months ended
September 30, 2018, compared to net income attributable to
common stockholders of $72,257,000, or $1.25 per diluted share of
common stock, for the three months ended September 30, 2017.
The decrease is primarily attributable to the gain on sale of real
estate of $74,715,000 recognized during the three months ended
September 30, 2017, $3,152,000 in redeemable preferred stock
dividends accumulated during the three months ended
September 30, 2018, a decrease of $2,567,000 in net operating
income of our operating segments, and an increase of $631,000 in
redeemable preferred stock dividends declared, partially offset by
a decrease of $2,911,000 in interest expense not allocated to our
operating segments, and a decrease of $670,000 in asset management
and other fees to related parties not allocated to our operating
segments.
FFO attributable to common stockholders was $8,862,000, or $0.20
per diluted share of common stock, for the three months ended
September 30, 2018, compared to $11,014,000, or $0.19 per
diluted share of common stock, for the three months ended
September 30, 2017. The decrease in FFO attributable to common
stockholders was primarily attributable to $3,152,000 in redeemable
preferred stock dividends accumulated during the three months ended
September 30, 2018, a decrease of $2,567,000 in net operating
income of our operating segments, and an increase of $631,000 in
redeemable preferred stock dividends declared, partially offset by
a decrease of $2,911,000 in interest expense not allocated to our
operating segments, and a decrease of $670,000 in asset management
and other fees to related parties not allocated to our operating
segments.
Year to Date 2018
Net loss attributable to common stockholders was $9,350,000, or
$0.21 per diluted share of common stock, for the nine months ended
September 30, 2018, compared to net income attributable to
common stockholders of $357,447,000, or $4.86 per diluted share of
common stock, for the nine months ended September 30,
2017.
FFO attributable to common stockholders was $30,433,000, or
$0.69 per diluted share of common stock, for the nine months ended
September 30, 2018, compared to $37,279,000, or $0.51 per
diluted share of common stock, for the nine months ended
September 30, 2017.
Segment Information
Our reportable segments during the three months ended
September 30, 2018 consisted of two types of commercial real
estate properties, namely, office and hotel, as well as a segment
for our lending business. Our reportable segments during the three
months ended September 30, 2017 consisted of three types of
commercial real estate properties, namely, office, hotel and
multifamily, as well as a segment for our lending business.
Aggregate segment NOI was $25,332,000 for the three months ended
September 30, 2018, compared to $27,899,000 for the three
months ended September 30, 2017.
Office
Same-Store
Same-store office segment NOI decreased 7.0% on a GAAP basis and
increased 2.7% on a cash basis for the three months ended
September 30, 2018 compared to the three months ended
September 30, 2017. The decrease in same-store segment NOI was
primarily due to a decrease in lease termination income at one of
our California properties, a decrease in expense reimbursements at
one of our California properties, and an increase in operating
expenses at certain of our California properties, partially offset
by an increase in revenue at certain of our California and
Washington D.C. properties due to increases in occupancy and or
rental rates.
At September 30, 2018, the Company’s same-store office
portfolio was 93.5% occupied, a decrease of 70 basis points
year-over-year on a same-store basis and 94.2% leased, a decrease
of 10 basis points year-over-year on a same-store basis. The
annualized rent per occupied square foot on a same-store basis was
$43.30 at September 30, 2018 compared to $40.54 at
September 30, 2017. For the three months ended
September 30, 2018, the Company executed 34,026 square feet of
recurring leases at our same-store office portfolio, representing
same-store cash rent growth per square foot of 25.0%.
Total
Office segment NOI decreased to $21,898,000 for the three months
ended September 30, 2018, from $22,560,000 for the three
months ended September 30, 2017. The decrease was primarily
attributable to a decrease in lease termination income at one of
our California properties, the sale of three office properties
during the last six months of 2017, a decrease in expense
reimbursements at one of our California properties, and an increase
in operating expenses at certain of our California properties,
partially offset by an increase due to the acquisition of two
office properties in December 2017 and January 2018 and an increase
in rental revenue at certain of our California and Washington D.C.
properties due to increases in occupancy and or rental rates.
Hotel
Hotel segment NOI was $2,596,000 for the three months ended
September 30, 2018, compared to $2,433,000 for the three
months ended September 30, 2017.
Multifamily
During the three months ended September 30, 2017, we sold
one of our two remaining multifamily properties and we sold the
remaining multifamily property in December 2017. Multifamily
segment NOI was $1,293,000 for the three months ended
September 30, 2017.
Lending
Our lending segment primarily consists of our SBA 7(a) lending
platform, which is a national lender that primarily originates
loans to small businesses in the hospitality industry. Lending
segment NOI was $838,000 for the three months ended
September 30, 2018, compared to $1,613,000 for the three
months ended September 30, 2017. The decrease was primarily
due to a decrease in premium income from the sale of the guaranteed
portion of our SBA 7(a) loans, an increase in interest expense that
commenced in May 2018 as a result of the issuance of the SBA 7(a)
loan-backed notes, and an increase in interest expense in
connection with our secured borrowings, partially offset by an
increase in interest income due to an increase in the principal
balance of our loan portfolio as well as increases in the prime
rate, and higher revenue as a result of the recognition of
accretion for discounts related to increased prepayments on our
loans.
Debt and Equity
During the three months ended September 30, 2018, we issued
307,856 Series A preferred units, with each Series A preferred unit
consisting of one share of Series A preferred stock and one warrant
to purchase 0.25 shares of our common stock, resulting in net
proceeds of approximately $7,083,000. Net proceeds represent
gross proceeds offset by costs specifically identifiable to the
offering of the Series A preferred units, such as commissions,
dealer manager fees, and other offering fees and expenses.
In October 2018, CIM Commercial entered into a revolving credit
facility with a bank syndicate pursuant to which CIM Commercial can
borrow up to a maximum of $250,000,000, subject to a borrowing base
calculation. The revolving credit facility is secured by deeds of
trust on certain properties. Outstanding advances under the
revolving credit facility bear interest at (i) the base rate
plus 0.55% or (ii) LIBOR plus 1.55%. The revolving credit
facility is also subject to an unused commitment fee of 0.15% or
0.25% depending on the amount of aggregate unused commitments. The
revolving credit facility matures in October 2022 and provides
for one one-year extension option under certain conditions. We
expect the revolving credit facility to remain in place following
the potential recapitalization (if it were to occur). On
October 30, 2018, we borrowed $170,000,000 on this facility to
repay outstanding borrowings on our unsecured term loan
facility.
Dividends
On August 22, 2018, CIM Commercial’s board of directors
(the "Board of Directors") approved, and we declared, a quarterly
cash dividend of $0.125 per common share. The dividend was paid on
September 25, 2018 to stockholders of record on September 5,
2018.
In addition, the Board of Directors approved, and we declared, a
quarterly cash dividend of $0.34375 per share of Series A preferred
stock. For shares of Series A preferred stock issued during the
third quarter of 2018, the dividend was prorated from the time of
issuance. The dividend was paid on October 15, 2018 to
stockholders of record on October 5, 2018.
About CMCT
CIM Commercial is a real estate investment trust that primarily
acquires, owns, and operates Class A and creative office assets in
vibrant and improving urban communities throughout the United
States. Its properties are primarily located in Los Angeles, the
San Francisco Bay Area and Washington, D.C. CIM Commercial is
operated by affiliates of CIM Group, L.P., a vertically-integrated
owner and operator of real assets with multi-disciplinary expertise
and in-house research, acquisition, credit analysis, development,
finance, leasing, and asset management capabilities
(www.cimcommercial.com).
FORWARD-LOOKING STATEMENTS
The information set forth herein contains "forward-looking
statements." You can identify these statements by the fact that
they do not relate strictly to historical or current facts or
discuss the business and affairs of CIM Commercial on a prospective
basis. Further, statements that include words such as "may,"
"will," "project," "might," "expect," “target,” "believe,"
"anticipate," "intend," "could," "would," "estimate," "continue,"
"pursue," "potential", "forecast", "seek", "plan", or "should" or
the negative or other words or expressions of similar meaning, may
identify forward-looking statements.
CIM Commercial bases these forward-looking statements on
particular assumptions that it has made in light of its experience,
as well as its perception of expected future developments and other
factors that it believes are appropriate under the circumstances.
These forward-looking statements are necessarily estimates
reflecting the judgment of CIM Commercial and involve a number of
risks and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements.
These forward-looking statements are subject to risks,
uncertainties and other factors, including, but not limited to,
those associated with (i) the approval of the potential sale by the
Board of Directors and, if required, the stockholders of CIM
Commercial, (ii) CIM Commercial's ability to consummate the
Potential Recapitalization, including the potential sale and the
potential return of capital event, (iii) the extent to which
directors and officers reinvest proceeds from the potential sale
into newly issued shares of the Company's common stock, (iv) the
terms and timing of the potential sale, including the price at
which assets are sold, (v) the development and redevelopment of
properties of CIM Commercial and (vi) changes in market rental
rates. For a further list and description of the risks and
uncertainties inherent in the forward looking statements, see CIM
Commercial's filings with the Securities and Exchange Commission,
including CIM Commercial's Annual Report on Form 10-K for the
fiscal year ended December 31, 2017, the Registration Statement on
Form S-11 (Reg. No. 333-210880) relating to the Series A preferred
stock, the Registration Statement on Form S-3 (Reg. No. 333-203639)
relating to the sale of common stock by a selling shareholder and
the Registration Statement on Form S-4 (Reg. No. 333-227707)
relating to the potential exchange offer for shares of our Series L
preferred stock.
As you read and consider the information herein, you are
cautioned to not place undue reliance on these forward-looking
statements. These statements are not guarantees of performance or
results and speak only as of the date hereof. These forward-looking
statements involve risks, uncertainties and assumptions. In light
of these risks and uncertainties, there can be no assurance that
the results and events contemplated by the forward-looking
statements contained herein will in fact transpire. New factors
emerge from time to time, and it is not possible for CIM Commercial
to predict all of them. Nor can CIM Commercial assess the impact of
each such factor or the extent to which any factor, or combination
of factors may cause results to differ materially from those
contained in any forward looking statement. CIM Commercial
undertakes no obligation to publicly update or release any
revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited and in thousands, except
share and per share amounts)
September 30, 2018 December 31, 2017
ASSETS Investments in real estate, net $ 1,066,971 $ 957,725
Cash and cash equivalents 97,040 129,310 Restricted cash 21,524
27,008 Loans receivable, net 81,898 81,056 Accounts receivable, net
8,085 13,627 Deferred rent receivable and charges, net 86,337
84,748 Other intangible assets, net 10,684 6,381 Other assets
19,176 36,533 TOTAL ASSETS $ 1,391,715 $
1,336,388
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND
EQUITY LIABILITIES: Debt, net $ 664,400 $ 630,852 Accounts
payable and accrued expenses 30,886 26,394 Intangible liabilities,
net 3,351 1,070 Due to related parties 10,838 8,814 Other
liabilities 15,657 14,629 Total liabilities 725,132
681,759 COMMITMENTS AND CONTINGENCIES
REDEEMABLE PREFERRED STOCK: Series A,
$0.001 par value; 36,000,000shares authorized; 1,893,183 and
1,890,943 shares issued and outstanding,respectively, at September
30, 2018 and 1,225,734 and 1,224,712 shares issued andoutstanding,
respectively, at December 31, 2017; liquidation preference of
$25.00per share, subject to adjustment
43,145 27,924 EQUITY:
Series A cumulative redeemable preferred
stock, $0.001 par value; 36,000,000shares authorized; 568,921 and
566,176 shares issued and outstanding,respectively, at September
30, 2018 and 61,435 and 60,592 shares issued andoutstanding,
respectively, at December 31, 2017; liquidation preference of
$25.00per share, subject to adjustment
14,062 1,508
Series L cumulative redeemable preferred
stock, $0.001 par value; 9,000,000shares authorized; 8,080,740
shares issued and outstanding at September 30, 2018and December 31,
2017; liquidation preference of $28.37 per share, subject to
adjustment
229,251 229,251
Common stock, $0.001 par value;
900,000,000 shares authorized; 43,795,073 and43,784,939 shares
issued and outstanding at September 30, 2018 and December31, 2017,
respectively
44 44 Additional paid-in capital 791,773 792,631 Accumulated other
comprehensive income 3,038 1,631 Distributions in excess of
earnings (415,568 ) (399,250 ) Total stockholders' equity 622,600
625,815 Noncontrolling interests 838 890 Total equity
623,438 626,705 TOTAL LIABILITIES, REDEEMABLE
PREFERRED STOCK, AND EQUITY $ 1,391,715 $ 1,336,388
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Consolidated Statements of
Operations
(Unaudited and in thousands, except per
share amounts)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2018 2017 2018
2017 REVENUES: Rental and other property income $ 34,782 $
37,299 $ 103,479 $ 134,482 Hotel income 7,715 7,749 27,564 27,331
Expense reimbursements 2,129 4,717 7,089 10,273 Interest and other
income 3,014 5,619 9,465 11,546 47,640
55,384 147,597 183,632 EXPENSES: Rental
and other property operating 20,438 26,058 59,238 76,267 Asset
management and other fees to related parties 6,121 6,896 18,475
23,459 Interest 6,965 9,359 20,409 28,645 General and
administrative 1,205 1,342 6,496 4,668 Transaction costs 15 242 359
11,870 Depreciation and amortization 13,310 13,472 39,783 45,464
Impairment of real estate — — — 13,100
48,054 57,369 144,760 203,473 Gain on
sale of real estate — 74,715 — 378,732
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES (414 ) 72,730 2,837
358,891 Provision for income taxes 115 339 795
1,193 NET (LOSS) INCOME (529 ) 72,391 2,042 357,698 Net loss
(income) attributable to noncontrolling interests 1 4
(15 ) (10 ) NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY (528 )
72,395 2,027 357,688 Redeemable preferred stock dividends
accumulated (3,152 ) — (9,456 ) — Redeemable preferred stock
dividends declared (769 ) (138 ) (1,924 ) (241 ) Redeemable
preferred stock redemptions 1 — 3 — NET
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (4,448 ) $
72,257 $ (9,350 ) $ 357,447 NET (LOSS) INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: Basic $ (0.10 ) $
1.25 $ (0.21 ) $ 4.86 Diluted $ (0.10 ) $ 1.25
$ (0.21 ) $ 4.86 WEIGHTED AVERAGE SHARES OF COMMON STOCK
OUTSTANDING: Basic 43,795 57,876 43,791 73,503
Diluted 43,795 57,876 43,791 73,503
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESFunds from Operations(Unaudited and in
thousands, except per share amounts)
We believe that FFO is a widely recognized and appropriate
measure of the performance of a REIT and that it is frequently used
by securities analysts, investors and other interested parties in
the evaluation of REITs, many of which present FFO when reporting
their results. FFO represents net income (loss) attributable to
common stockholders, computed in accordance with generally accepted
accounting principles ("GAAP"), which reflects the deduction of
redeemable preferred stock dividends accumulated, excluding gains
(or losses) from sales of real estate, impairment of real estate,
and real estate depreciation and amortization. We calculate FFO in
accordance with the standards established by the National
Association of Real Estate Investment Trusts (the "NAREIT").
Like any metric, FFO should not be used as the only measure of
our performance because it excludes depreciation and amortization
and captures neither the changes in the value of our real estate
properties that result from use or market conditions nor the level
of capital expenditures and leasing commissions necessary to
maintain the operating performance of our properties, all of which
have real economic effect and could materially impact our operating
results. Other REITs may not calculate FFO in accordance with the
standards established by the NAREIT; accordingly, our FFO may not
be comparable to the FFOs of other REITs. Therefore, FFO should be
considered only as a supplement to net income (loss) as a measure
of our performance and should not be used as a supplement to or
substitute measure for cash flows from operating activities
computed in accordance with GAAP. FFO should not be used as a
measure of our liquidity, nor is it indicative of funds available
to fund our cash needs, including our ability to pay dividends.
The following table sets forth a reconciliation of net (loss)
income attributable to common stockholders to FFO attributable to
common stockholders:
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2018 2017 2018
2017 Net (loss) income attributable to common stockholders $
(4,448 ) $ 72,257 $ (9,350 ) $ 357,447 Depreciation and
amortization 13,310 13,472 39,783 45,464 Impairment of real estate
— — — 13,100 Gain on sale of depreciable assets — (74,715 )
— (378,732 ) FFO attributable to common stockholders $ 8,862
$ 11,014 $ 30,433 $ 37,279 FFO
attributable to common stockholders per diluted share $ 0.20
$ 0.19 $ 0.69 $ 0.51
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESEarnings Per Share(Unaudited and in
thousands, except per share amounts)
Earnings per share ("EPS") for the year-to-date period may
differ from the sum of quarterly EPS amounts due to the required
method for computing EPS for the respective periods. In addition,
EPS is calculated independently for each component and may not be
additive due to rounding.
The following table reconciles the numerator and denominator
used in computing our basic and diluted per-share amounts for net
(loss) income attributable to common stockholders for the three and
nine months ended September 30, 2018 and 2017:
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2018 2017 2018
2017 Numerator: Net (loss) income attributable to
common stockholders $ (4,448 ) $ 72,257 $ (9,350 ) $ 357,447
Redeemable preferred stock dividends declared on dilutive shares —
— — — Numerator for dilutive net (loss) income
attributable to common stockholders $ (4,448 ) $ 72,257 $
(9,350 ) $ 357,447
Denominator: Basic weighted average
shares of common stock outstanding 43,795 57,876 43,791 73,503
Effect of dilutive securities—contingently issuable shares —
— — — Diluted weighted average shares and common
stock equivalents outstanding 43,795 57,876 43,791
73,503
Net (loss) income attributable to common
stockholders per share: Basic $ (0.10 ) $ 1.25 $ (0.21 )
$ 4.86 Diluted $ (0.10 ) $ 1.25 $ (0.21 ) $ 4.86
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESReconciliation of Net Operating
Income(Unaudited and in thousands)
We internally evaluate the operating performance and financial
results of our real estate segments based on segment NOI, which is
defined as rental and other property income and expense
reimbursements less property related expenses and excludes
non-property income and expenses, interest expense, depreciation
and amortization, corporate related general and administrative
expenses, gain (loss) on sale of real estate, impairment of real
estate, transaction costs, and provision for income taxes. For our
lending segment, we define NOI as interest income net of interest
expense and general overhead expenses. We also evaluate the
operating performance and financial results of our operating
segments using cash basis NOI, or "cash NOI". We define cash
NOI as segment NOI adjusted to exclude the effect of the straight
lining of rents, acquired above/below market lease amortization and
other adjustments required by GAAP.
Segment NOI and cash NOI are not measures of operating results
or cash flows from operating activities as measured by GAAP and
should not be considered alternatives to income from continuing
operations, or to cash flows as a measure of liquidity, or as an
indication of our performance or of our ability to pay dividends.
Companies may not calculate segment NOI or cash NOI in the same
manner. We consider segment NOI and cash NOI to be useful
performance measures to investors and management because, when
compared across periods, they reflect the revenues and expenses
directly associated with owning and operating our properties and
the impact to operations from trends in occupancy rates, rental
rates and operating costs, providing a perspective not immediately
apparent from income from continuing operations. Additionally, we
believe that cash NOI is helpful to investors because it eliminates
straight line rent and other non-cash adjustments to revenue and
expenses.
To facilitate a comparison of our segments and portfolio between
reporting periods, we calculate comparable amounts for a subset of
our segments and portfolio referred to as our “same-store
properties.” Our same-store properties are ones which we have owned
and operated in a consistent manner and reported in our
consolidated results during the entire span of the periods being
reported. We excluded from our same-store property set this quarter
any properties (i) acquired on or after July 1, 2017; (ii) sold or
otherwise removed from our consolidated financial statements before
September 30, 2018; or (iii) that underwent a major repositioning
project we believed significantly affected its results at any point
during the period commencing on July 1, 2017 and ending on
September 30, 2018.
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESReconciliation of Net Operating Income
(Continued)(Unaudited and in thousands)
Below is a reconciliation of cash NOI excluding lease
termination income to net income (loss) for the three months ended
September 30, 2018 and 2017.
Three Months Ended September 30, 2018
Same-StoreOffice
Non-Same-StoreOffice
TotalOffice
Hotel
Multi-family
Lending Total
Cash net operating income
excluding lease termination income
$ 19,981 $ 1,427 $ 21,408 $ 2,590 $ — $ 838 $ 24,836 Cash lease
termination income 57 — 57 — — —
57 Cash net operating income 20,038 1,427 21,465
2,590 — 838 24,893
Deferred rent and amortization of
intangible assets, liabilities, and
lease inducements
(277 ) 710 433 6 — — 439
Straight line rent, below-market
ground lease and amortization of
intangible assets
— — — — — — — Straight line lease termination income — —
— — — — — Segment net
operating income $ 19,761 $ 2,137 $ 21,898 $ 2,596 $ — $ 838 $
25,332
Asset management and other fees
to related parties
(5,381 ) Interest expense (6,332 ) General and administrative (708
) Transaction costs (15 ) Depreciation and amortization (13,310 )
Loss before provision for income taxes (414 ) Provision for income
taxes (115 ) Net loss (529 )
Net loss attributable to
noncontrolling interests
1 Net loss attributable to the Company $ (528 )
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESReconciliation of Net Operating Income
(Continued)(Unaudited and in thousands)
Three Months Ended September 30, 2017
Same-StoreOffice
Non-Same-StoreOffice
TotalOffice
Hotel
Multi-family
Lending Total
Cash net operating income
excluding lease termination income
$ 19,390 $ 1,159 $ 20,549 $ 2,433 1,356 $ 1,602 $ 25,940 Cash lease
termination income 122 — 122 — 10
— 132 Cash net operating income 19,512 1,159
20,671 2,433 1,366 1,602 26,072
Deferred rent and amortization of
intangible assets, liabilities, and
lease inducements
(421 ) 360 (61 ) — (73 ) — (134 )
Straight line rent, below-market
ground lease and amortization of
intangible assets
— (209 ) (209 ) — — 11 (198 ) Straight line lease termination
income 2,159 — 2,159 — — —
2,159 Segment net operating income $ 21,250 $ 1,310 $
22,560 $ 2,433 $ 1,293 $ 1,613 $ 27,899
Asset management and other fees
to related parties
(6,051 ) Interest expense (9,243 ) General and administrative (876
) Transaction costs (242 ) Depreciation and amortization (13,472 )
Gain on sale of real estate 74,715
Income before provision for
income taxes
72,730 Provision for income taxes (339 ) Net income 72,391
Net loss attributable to
noncontrolling interests
4 Net income attributable to the Company $ 72,395
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESReconciliation of Net Operating Income
(Continued)(Unaudited and in thousands)
Below is a reconciliation of segment NOI excluding lease
termination income to net income (loss) for the three months ended
September 30, 2018 and 2017.
Three Months Ended September 30, 2018
Same-StoreOffice
Non-Same-StoreOffice
TotalOffice
Hotel
Multi-family
Lending Total
Segment net operating income
excluding lease termination income
$ 19,704 $ 2,137 $ 21,841 $ 2,596 $ — $ 838 $ 25,275 Cash lease
termination income 57 — 57 — — —
57 Segment net operating income $ 19,761 $ 2,137 $
21,898 $ 2,596 $ — $ 838 $ 25,332
Asset management and other
fees to related parties
(5,381 ) Interest expense (6,332 ) General and administrative (708
) Transaction costs (15 ) Depreciation and amortization (13,310 )
Loss before provision for income taxes (414 ) Provision for income
taxes (115 ) Net loss (529 )
Net loss attributable to
noncontrolling interests
1 Net loss attributable to the Company $ (528 )
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIESReconciliation of Net Operating Income
(Continued)(Unaudited and in thousands)
Three Months Ended September 30, 2017
Same-StoreOffice
Non-Same-StoreOffice
TotalOffice
Hotel
Multi-family
Lending Total
Segment net operating income
excluding lease termination income
$ 18,969 $ 1,310 $ 20,279 $ 2,433 $ 1,283 $ 1,613 $ 25,608 Cash
lease termination income 2,281 — 2,281 —
10 — 2,291 Segment net operating income
$ 21,250 $ 1,310 $ 22,560 $ 2,433 $ 1,293 $ 1,613 $ 27,899
Asset management and other
fees to related parties
(6,051 ) Interest expense (9,243 ) General and administrative (876
) Transaction costs (242 ) Depreciation and amortization (13,472 )
Gain on sale of real estate 74,715
Income before provision for
income taxes
72,730 Provision for income taxes (339 ) Net income 72,391
Net loss attributable to
noncontrolling interests
4 Net income attributable to the Company $ 72,395
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181113006223/en/
For CIM Commercial Trust CorporationMedia Relations:Bill
Mendel, 212-397-1030bill@mendelcommunications.comorShareholder
Relations:Steve Altebrando, 646-652-8473shareholders@cimcommercial.com
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