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 metropolitan communities throughout the United States,
today reported operating results for the three months and year
ended December 31, 2018.
Fourth Quarter 2018 Highlights
- Annualized rent per occupied square
foot1 on a same-store basis increased 6.9% to $43.64 as of December
31, 2018 compared to $40.82 as of December 31, 2017; annualized
rent per occupied square foot across all properties was $45.21 as
of December 31, 2018.
- Our same-store office portfolio was
95.4% leased as of December 31, 2018.
- During the fourth quarter of 2018, we
executed 160,927 square feet of leases with terms longer than 12
months, of which 119,476 square feet were recurring leases executed
at our same-store office portfolio, representing same-store cash
rent growth per square foot of 56.1%.
- Net loss attributable to common
stockholders was $(4,948,000), or $(0.11) per diluted share, for
the fourth quarter of 2018 compared to net income attributable to
common stockholders of $20,366,000, or $0.36 per diluted share, for
the fourth quarter of 2017.
- Same-store office segment NOI2
decreased 5.9%, while same-store office cash NOI2 decreased 15.2%,
for the fourth quarter of 2018 from the corresponding period in
2017.
- Same-store office segment net operating
income (“NOI”), excluding lease termination income,2 increased
7.9%, and same- store office cash NOI, excluding lease termination
income,2 increased 6.6%, for the fourth quarter of 2018 from the
corresponding period in 2017.
- Funds from operations (“FFO”)
attributable to common stockholders3 was $8,497,000, or $0.19 per
diluted share, for the fourth quarter of 2018 compared to
$10,261,000, or $0.18 per diluted share, for the fourth quarter of
2017.
Management Commentary
Charles E. Garner II, CEO of CIM Commercial Trust Corporation,
stated, “We generated strong same-store NOI growth, excluding lease
termination income, in the fourth quarter as compared to the
year-earlier period. The increase was driven by higher average rent
per square foot and reflects the strength of our portfolio. We are
well positioned to grow through same-store growth, development, and
accretive acquisitions.”
Program to Unlock Embedded Value in Our Portfolio and Improve
Trading Liquidity of Our Common Stock
We sold six properties in early March 2019 as part of our
previously announced program to unlock embedded value in our
portfolio and improve the trading liquidity of our common stock.
The properties were located in Oakland, California, San Francisco,
California, and Washington, D.C. and represent more than 50% of the
properties that we targeted for sale in connection with the
program. Three additional properties are being actively marketed
for sale.
______________________________
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. 3 Please see page 8 for a
reconciliation of net (loss) income attributable to common
stockholders to FFO attributable to common stockholders and a
discussion of the benefits and limitations of FFO as a supplemental
measure of operating performance.
After the completion of such property sales, we intend to
provide liquidity to our common stockholders by returning a
significant portion of the net proceeds from the property sales to
them. Further, we expect that shares of our common stock held by
our majority stockholder will be distributed to a diverse group of
holders which we expect to be comprised of some of the current
investors of such majority stockholder. We believe that these
actions will improve the trading liquidity of our common stock and
that the price of our common stock will better reflect the strength
of our underlying portfolio.
We intend to continue to maintain a highly-flexible capital
structure and expect to continue to target a 45% common equity
percentage of total capitalization, based on fair value.
Financial Highlights
As of December 31, 2018, our real estate portfolio consisted of
21 assets, all of which were fee-simple properties. The portfolio
included 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 with an ancillary parking garage, which has a total of 503
rooms. We also operate a lending business.
Fourth Quarter 2018
Net loss attributable to common stockholders was $(4,948,000),
or $(0.11) per diluted share of common stock, for the three months
ended December 31, 2018, compared to net income attributable to
common stockholders of $20,366,000, or $0.36 per diluted share of
common stock, for the three months ended December 31, 2017. The
decrease is primarily attributable to the gain on sale of real
estate of $23,005,000 recognized during the three months ended
December 31, 2017, and increases in certain costs during the three
months ended December 31, 2018, including an increase of $2,358,000
in redeemable preferred stock dividends declared and accumulated,
an increase of $587,000 in transaction costs and an increase of
$545,000 in depreciation and amortization, partially offset by an
increase of $579,000 in net operating income of our operating
segments and a decrease of $484,000 in interest expense not
allocated to our operating segments.
FFO attributable to common stockholders was $8,497,000, or $0.19
per diluted share of common stock, for the three months ended
December 31, 2018, compared to $10,261,000, or $0.18 per diluted
share of common stock, for the three months ended December 31,
2017. The decrease in FFO attributable to common stockholders was
primarily attributable to an increase of $2,358,000 in redeemable
preferred stock dividends declared and accumulated and an increase
of $587,000 in transaction costs, partially offset by an increase
of $579,000 in net operating income of our operating segments and a
decrease of $484,000 in interest expense not allocated to our
operating segments.
Fiscal Year 2018
Net loss attributable to common stockholders was $14,298,000, or
$0.33 per diluted share of common stock, for the twelve months
ended December 31, 2018, compared to net income attributable to
common stockholders of $377,813,000, or $5.47 per diluted share of
common stock, for the twelve months ended December 31, 2017.
FFO attributable to common stockholders was $38,930,000, or
$0.89 per diluted share of common stock, for the twelve months
ended December 31, 2018, compared to $47,540,000, or $0.69 per
diluted share of common stock, for the twelve months ended December
31, 2017.
Segment Information
Our reportable segments during the three months ended December
31, 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 December 31, 2017 consisted of three types of commercial real
estate properties, namely, office, hotel and multifamily, as well
as a segment for our lending business. Net loss attributable to
common stockholders was $(4,948,000), or $(0.11) per diluted share
of common stock, for the three months ended December 31, 2018,
compared to net income attributable to common stockholders of
$20,366,000, or $0.36 per diluted share of common stock, for the
three months ended December 31, 2017, which represents a decrease
of $(25,314,000), or $(0.47) per diluted share of common stock.
Total segment NOI was $26,548,000 for the three months ended
December 31, 2018, compared to $25,969,000 for the three months
ended December 31, 2017. 4
______________________________ 4 Please see our
reconciliations of total segment NOI to net income starting on page
11.
Office
Same-Store
Same-store office segment NOI, excluding lease termination
income, increased 7.9% on a GAAP basis and increased 6.6% on a cash
basis for the three months ended December 31, 2018 compared to the
three months ended December 31, 2017. Same-store office segment NOI
decreased 5.9% on a GAAP basis and decreased 15.2% on a cash basis
for the three months ended December 31, 2018 compared to the three
months ended December 31, 2017. The decrease in same-store office
segment NOI was primarily due to a decrease in expense
reimbursements at one of our Washington, D.C. properties, a
decrease in lease termination income at one of our California
properties, and an increase in operating expenses at certain of our
California properties, partially offset by a decrease in other
tenant reimbursable expenses at one of our Washington, D.C.
properties and an increase in rental revenue at certain of our
California properties due to increases in rental rates.
At December 31, 2018, the Company’s same-store office portfolio
was 93.1% occupied, a decrease of 100 basis points year- over-year
on a same-store basis, and 95.4% leased, an increase of 20 basis
points year-over-year on a same-store basis. The annualized rent
per occupied square foot on a same-store basis was $43.64 at
December 31, 2018 compared to $40.82 at December 31, 2017. For the
three months ended December 31, 2018, the Company executed 119,476
square feet of recurring leases at our same-store office portfolio,
representing same-store cash rent growth per square foot of
56.1%.
Total
Office segment NOI increased to $22,498,000 for the three months
ended December 31, 2018, from $20,894,000 for the three months
ended December 31, 2017.5 The increase was primarily attributable
to a decrease in other tenant reimbursable expenses at one of our
Washington, D.C. properties, an increase due to the acquisition of
two office properties in December 2017 and January 2018, an
increase in rental revenue at certain of our California properties
due to increases in rental rates, and an increase from real estate
tax refunds related to prior years received during the three months
ended December 31, 2018 for the property in Washington, D.C. that
we sold in October 2017, partially offset by a decrease in expense
reimbursements at one of our Washington, D.C. properties, a
decrease in lease termination income at one of our California
properties, and an increase in operating expenses at certain of our
California properties.
Hotel
Hotel segment NOI was $2,848,000 for the three months ended
December 31, 2018, compared to $2,958,000 for the three months
ended December 31, 2017.5
Multifamily
During the three months ended December 31, 2017, we sold our
last multifamily property. Multifamily segment NOI was $407,000 for
the three months ended December 31, 2017.5
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 $1,202,000 for the three months ended December 31,
2018, compared to $1,710,000 for the three months ended December
31, 2017.5 The decrease was primarily due to a decrease in premium
income from the sale of the government guaranteed portion of our
SBA 7(a) loans.
Debt and Equity
During the three months ended December 31, 2018, we issued
391,451 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 $9,011,000. 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.
______________________________ 5 Please see our
reconciliations of office, hotel, multifamily and lending segment
NOI to net income starting on page 11.
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 and bears interest at (i) the base rate
plus 0.55% or (ii) LIBOR plus 1.55%. At December 31, 2018,
$130,000,000 was outstanding under the revolving credit facility.
Subsequent to December 31, 2018, we repaid the outstanding balance
on this facility, which was $130,000,000 at such time. We expect
the revolving credit facility to remain in place following our
program to unlock embedded value in our portfolio and improve
trading liquidity of our common stock.
Dispositions
In March 2019 we completed the disposition of six assets in San
Francisco, California; Oakland, California; and Washington,
D.C.
Dividends
On December 4, 2018, we declared a quarterly cash dividend of
$0.125 per share of our common stock, which was paid on December
27, 2018 to stockholders of record at the close of business on
December 14, 2018.
In addition, we declared an annual cash dividend of $1.56035 per
share of our Series L preferred stock. The dividend paid for 2018
also included a prorated dividend to cover the period from and
including the original date of issuance of the Series L preferred
stock to and including December 31, 2017. The dividend was paid on
January 17, 2019 to stockholders of record at the close of business
on December 31, 2018.
Further, we declared a quarterly cash dividend of $0.34375 per
share of our Series A preferred stock, or portion thereof for
issuances during the period from October 1, 2018 to December 31,
2018, which was paid on January 15, 2019 to stockholders of record
at the close of business on January 5, 2019.
About CIM Commercial
CIM Commercial is a real estate investment trust that primarily
acquires, owns, and operates Class A and creative office assets in
vibrant and improving metropolitan 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 onsite property 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 those associated with
(i) CIM Commercial's ability to consummate the sales of properties
currently targeted for sale, (ii) the extent to which capital is
returned to stockholders, if at all, and the timing thereof, (iii)
the decision of CIM Commercial's majority stockholder to distribute
shares of CIM Commercial common stock to its investors and (iv)
general economic, market and other conditions. For a further list
and description of the risks and uncertainties inherent in
forward-looking statements, see CIM Commercial's Annual Report on
Form 10-K for the fiscal year ended December 31, 2018.
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) December 31,
2018 2017
ASSETS Investments in real estate, net $ 1,040,937 $ 957,725
Cash and cash equivalents 54,931 129,310 Restricted cash 22,512
27,008 Loans receivable, net 83,248 81,056 Accounts receivable, net
6,640 13,627 Deferred rent receivable and charges, net 84,230
84,748 Other intangible assets, net 9,531 6,381 Other assets 18,197
36,533 Assets held for sale, net 22,175 -
TOTAL ASSETS $ 1,342,401 $ 1,336,388
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY
LIABILITIES: Debt, net $ 588,671 $ 630,852 Accounts payable and
accrued expenses 41,598 26,394 Intangible liabilities, net 2,872
1,070 Due to related parties 10,951 8,814 Other liabilities 16,535
14,629 Liabilities associated with assets held for sale, net
28,766 - Total liabilities 689,393
681,759 COMMITMENTS AND CONTINGENCIES
REDEEMABLE PREFERRED STOCK: Series A, $0.001 par value; 36,000,000
shares authorized; 1,566,386 and 1,565,346 shares issued and
outstanding, respectively, at December 31, 2018 and 1,225,734 and
1,224,712 shares issued and outstanding, respectively, at December
31, 2017; liquidation preference of $25.00 per share, subject to
adjustment 35,733 27,924 EQUITY: Series A cumulative redeemable
preferred stock, $0.001 par value; 36,000,000 shares authorized;
1,287,169 and 1,281,804 shares issued and outstanding,
respectively, at December 31, 2018 and 61,435 and 60,592 shares
issued and outstanding, respectively, at December 31, 2017;
liquidation preference of $25.00 per share, subject to adjustment
31,866 1,508 Series L cumulative redeemable preferred stock, $0.001
par value; 9,000,000 shares authorized; 8,080,740 shares issued and
outstanding at December 31, 2018 and 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
and 43,784,939 shares issued and outstanding at December 31, 2018
and 2017, respectively 44 44 Additional paid-in capital 790,354
792,631 Accumulated other comprehensive income 1,806 1,631
Distributions in excess of earnings (436,883 )
(399,250 ) Total stockholders' equity 616,438 625,815
Noncontrolling interests 837 890 Total
equity 617,275 626,705
TOTAL LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND EQUITY
$ 1,342,401 $ 1,336,388
CIM
COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES Consolidated
Statements of Operations (Unaudited and in thousands, except
per share amounts) Three Months Ended Year
Ended December 31, December 31,
2018 2017
2018 2017 REVENUES:
Rental and other property income $ 34,831 $ 32,105 $ 138,310 $
166,587 Hotel income 8,108 8,245 35,672 35,576 Expense
reimbursements 2,934 6,373 10,023 16,646 Interest and other income
4,254 6,021 13,719
17,567 50,127 52,744
197,724 236,376 EXPENSES: Rental and other
property operating 20,933 25,318 80,171 101,585 Asset management
and other fees to related parties 5,976 6,792 24,451 30,251
Interest 7,293 7,693 27,702 36,338 General and administrative 2,671
811 9,167 5,479 Transaction costs 579 (8 ) 938 11,862 Depreciation
and amortization 13,445 12,900 53,228 58,364 Impairment of real
estate - - -
13,100 50,897 53,506
195,657 256,979 Gain on sale of real estate
- 23,005 - 401,737
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES (770 )
22,243 2,067 381,134 Provision for income taxes 130
183 925 1,376 NET (LOSS)
INCOME (900 ) 22,060 1,142 379,758 Net income attributable to
noncontrolling interests (6 ) (11 ) (21 )
(21 ) NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY (906 )
22,049 1,121 379,737 Redeemable preferred stock dividends declared
and accumulated (4,043 ) (1,685 ) (15,423 ) (1,926 ) Redeemable
preferred stock redemptions 1 2
4 2 NET (LOSS) INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (4,948 ) $ 20,366 $ (14,298 ) $ 377,813
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER
SHARE: Basic $ (0.11 ) $ 0.36 $ (0.33 ) $ 5.47
Diluted $ (0.11 ) $ 0.36 $ (0.33 ) $ 5.47 WEIGHTED
AVERAGE SHARES OF COMMON STOCK OUTSTANDING: Basic 43,795
55,885 43,792 69,062
Diluted 43,795 55,917
43,792 69,070
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Funds 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 Ended Year Ended
December 31, December 31, 2018
2017 2018
2017 Net (loss) income attributable to
common stockholders $ (4,948 ) $ 20,366 $ (14,298 ) $ 377,813
Depreciation and amortization 13,445 12,900 53,228 58,364
Impairment of real estate - - - 13,100 Gain on sale of depreciable
assets - (23,005 ) -
(401,737 ) FFO attributable to common stockholders $ 8,497 $
10,261 $ 38,930 $ 47,540 FFO attributable to
common stockholders per diluted share $ 0.19 $ 0.18 $
0.89 $ 0.69
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Earnings 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:
Three Months Ended Year Ended
December 31, December 31, 2018
2017 2018 2017
Numerator: Basic net (loss) income attributable to common
stockholders $ (4,948 ) $ 20,366 $ (14,298 ) $ 377,813 Redeemable
preferred stock dividends declared on dilutive shares -
9 - 9 Diluted net (loss) income
attributable to common stockholders $ (4,948 ) $ 20,375 $ (14,298 )
$ 377,822
Denominator: Basic weighted average shares of
common stock outstanding 43,795 55,885 43,792 69,062 Effect of
dilutive securities—contingently issuable shares -
32 - 8 Diluted weighted average shares
and common stock equivalents outstanding 43,795
55,917 43,792 69,070
Net (loss)
income attributable to common stockholders per share: Basic $
(0.11 ) $ 0.36 $ (0.33 ) $ 5.47 Diluted $ (0.11 ) $ 0.36 $ (0.33 )
$ 5.47
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Reconciliation 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 October 1, 2017; (ii) sold
or otherwise removed from our consolidated financial statements on
or before December 31, 2018; or (iii) that underwent a major
repositioning project we believed significantly affected its
results at any point during the period commencing on October 1,
2017 and ending on December 31, 2018.
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Reconciliation of Net Operating Income
(Continued)
(Unaudited and in thousands)
Below is a reconciliation of cash NOI excluding lease
termination income to net income (loss) attributable to the
Company:
Three Months Ended December 31, 2018
Same-Store Office
Non-Same-Store
Office
Total Office
Hotel
Multi-family
Lending Total
Cash net operating income excluding lease
termination income
$ 20,119 $ 1,983 $ 22,102 $ 2,848 $ - $ 1,202 $ 26,152
Cash lease termination income
6 - 6 - - -
6 Cash net operating income 20,125 1,983 22,108 2,848 -
1,202 26,158
Deferred rent and amortization of
intangible assets, liabilities, and lease inducements
(149 ) 539 390 - - - 390
Straight line rent, below-market ground
lease and amortization of intangible assets
- - - - - - -
Straight line lease termination income
- - - - - -
- Segment net operating income $ 19,976 $ 2,522 $ 22,498 $
2,848 $ - $ 1,202 $ 26,548
Asset management and other fees to related
parties
(5,511 ) Interest expense (6,998 ) General and administrative (785
) Transaction costs (579 ) Depreciation and amortization
(13,445 )
Loss before provision for income taxes
(770 ) Provision for income taxes (130 ) Net loss (900 )
Net loss attributable to noncontrolling
interests
(6 )
Net loss attributable to the Company
$ (906 )
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES Reconciliation of Net Operating Income
(Continued) (Unaudited and in thousands)
Three Months Ended December 31, 2017
Same-Store Office
Non-Same-Store
Office
Total Office
Hotel
Multi-family
Lending Total
Cash net operating income (loss) excluding
lease termination income
$
18,872 $ (335 ) $ 18,537 $ 2,959 $ 404 $ 1,700 $ 23,600
Cash lease termination income
4,871 - 4,871 -
3 - 4,874 Cash net operating
income (loss) 23,743 (335 ) 23,408 2,959 407 1,700 28,474
Deferred rent and amortization of
intangible assets, liabilities, and lease inducements
(366 ) 11 (355 ) (1 ) - - (356 )
Straight line rent, below-market ground
lease and amortization of intangible assets
- - - - - 10 10
Straight line lease termination income
(2,159 ) - (2,159 ) -
- - (2,159 )
Segment net operating income (loss)
$
21,218
$
(324 )
$
20,894
$
2,958
$
407
$
1,710
$
25,969
Asset management and other fees to related
parties
(5,801 ) Interest expense (7,482 )
General and administrative
(556 ) Transaction costs 8 Depreciation and amortization (12,900 )
Gain on sale of real estate 23,005
Income before provision for income
taxes
22,243 Provision for income taxes (183 ) Net income 22,060
Net loss attributable to noncontrolling
interests
(11 )
Net income attributable to the Company
$ 22,049
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES
Reconciliation of Net Operating Income
(Continued)
(Unaudited and in thousands)
Below is a reconciliation of segment NOI excluding lease
termination income to net income (loss) attributable to the
Company:
Three Months Ended December 31, 2018
Same-Store Office
Non-Same-Store
Office
Total Office
Hotel
Multi-family
Lending Total
Segment net operating income excluding
lease termination income
$ 19,970 $ 2,522 $ 22,492 $ 2,848 $ - $ 1,202 $ 26,542 Lease
termination income 6 - 6 - -
- 6 Segment net operating income $ 19,976 $
2,522 $ 22,498 $ 2,848 $ - $ 1,202 $ 26,548
Asset management and other fees to related
parties
(5,511 ) Interest expense (6,998 ) General and administrative (785
) Transaction costs (579 ) Depreciation and amortization
(13,445 )
Loss before provision for income taxes
(770 ) Provision for income taxes (130 ) Net loss (900 )
Net income attributable to noncontrolling
interests
(6 )
Net loss attributable to the Company
$ (906 )
CIM COMMERCIAL TRUST CORPORATION AND
SUBSIDIARIES Reconciliation of Net Operating Income
(Continued) (Unaudited and in thousands)
Three Months Ended December 31, 2017
Same-Store Office
Non-Same-Store
Office
Total Office
Hotel
Multi-family
Lending Total
Segment net operating income (loss)
excluding lease termination income
$ 18,506 $ (324 ) $ 18,182 $ 2,958 $ 404 $ 1,710 $ 23,254
Lease termination income
2,712 - 2,712 - 3
- 2,715
Segment net operating income (loss)
$ 21,218 $ (324 ) $ 20,894 $ 2,958 $ 407 $ 1,710 $ 25,969
Asset management and other fees to related
parties
(5,801 ) Interest expense (7,482 )
General and administrative
(556 ) Transaction costs 8
Depreciation and amortization
(12,900 )
Gain on sale of real estate
23,005
Income before provision for income
taxes
22,243
Provision for income taxes
(183 ) Net income 22,060
Net income attributable to noncontrolling
interests
(11 )
Net income attributable to the Company
$ 22,049
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190318005786/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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