CIM Commercial Trust Corporation (NASDAQ: CMCT and TASE: CMCT-L)
("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 ended
March 31, 2019.
First Quarter 2019 Highlights
- Annualized rent per occupied square
foot1 on a same-store2 basis increased 4.8% to $43.99 as of
March 31, 2019 compared to $41.99 as of March 31, 2018;
annualized rent per occupied square foot1 across all properties was
$46.24 as of March 31, 2019.
- Our same-store2 office portfolio was
93.6% leased as of March 31, 2019 compared to 92.9% as of
March 31, 2018.
- During the first quarter of 2019, we
executed 33,308 square feet of leases with terms longer than 12
months, of which 32,576 square feet were recurring leases executed
at our same-store2 office portfolio, representing same-store2 cash
rent growth per square foot of 21.6%.
- Net income attributable to common
stockholders was $287,631,000, or $6.30 per diluted share, for the
first quarter of 2019 compared to net loss attributable to common
stockholders of $(3,026,000), or $(0.07) per diluted share, for the
first quarter of 2018.
- Same-store2 office segment net
operating income3 ("NOI") increased 1.3%, while same-store2 office
cash NOI3 increased 9.0%, for the first quarter of 2019 from the
corresponding period in 2018.
- Funds from operations (“FFO”)
attributable to common stockholders4 was $(14,120,000), or $(0.31)
per diluted share, for the first quarter of 2019, inclusive of
$25,071,000, or $0.55 per diluted share, in loss on early
extinguishment of debt, compared to $10,122,000, or $0.23 per
diluted share, for the first quarter of 2018.
Management Commentary
David Thompson, CEO of CIM Commercial Trust Corporation stated,
“The increase in our net income was primarily driven by asset sales
as part of our program to unlock embedded value in our portfolio
and improve trading liquidity of our common stock. Further, our
same-store NOI growth was again driven by higher average rent per
square foot, which reflects both the strength of our portfolio and
our markets. We believe we have an embedded growth opportunity as
we increase below market rents to market, with further growth
potential from accretive acquisitions as well as select
redevelopment and build-to-suit opportunities."
____________________________ 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 properties" on
page 10. 3 Please see our reconciliations of office, hotel,
lending, and total segment NOI to net income starting on page 11.
4 Please see page 8 for a reconciliation of net income
(loss) 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.
Program to Unlock Embedded Value in Our Portfolio and Improve
Trading Liquidity of Our Common Stock
As part of our previously announced program to unlock embedded
value in our portfolio, enhance growth prospects and improve the
trading liquidity of our common stock, we sold six properties,
entered into a purchase and sale agreement to sell an office
property located in Oakland, California that is expected to close
in the second quarter of 2019 and are negotiating the sale of an
office property in Washington, D.C. Further, as a matter of prudent
management, after evaluating each asset within our portfolio as
well as the intrinsic value of each property, we are negotiating
the sales of additional properties. We intend to use the net
proceeds from these asset sales (other than to the extent used to
pay down debt) and a substantial portion of our unrestricted cash
balances and or funds from our revolving credit facility to return
capital to holders of our Common Stock. We currently expect such
return of capital to take the form of a special cash dividend
payable to all holders of our common stock. Further, we have been
informed that our principal stockholder intends to liquidate. The
liquidation may include, among other things, the distribution of
certain of the shares of our common stock owned by it to certain of
its investors. We believe that these actions will improve the
trading liquidity of our common stock and make our common stock
eligible for inclusion in several indices.
Financial Highlights
As of March 31, 2019, our real estate portfolio consists of
15 assets, all of which are fee-simple properties. The portfolio
includes 13 office properties (including two development sites, one
of which is being used as a parking lot), totaling approximately
2.1 million rentable square feet, and one hotel, with an ancillary
parking garage, which has 503 rooms. We also operate a lending
business.
Net income attributable to common stockholders was $287,631,000,
or $6.30 per diluted share of common stock, for the three months
ended March 31, 2019, compared to net loss attributable to
common stockholders of $(3,026,000), or $(0.07) per diluted share
of common stock, for the three months ended March 31, 2018.
The increase is primarily attributable to the gain on sale of real
estate of $377,581,000, a decrease of $3,518,000 in depreciation
and amortization, a decrease of $2,986,000 in interest expense not
allocated to our operating segments, a decrease of $891,000 in
general and administrative expense not allocated to our operating
segments, and a decrease of $361,000 in asset management and other
fees to related parties not allocated to our operating segments,
partially offset by $66,200,000 in impairment of real estate,
$25,071,000 in loss on early extinguishment of debt, a decrease of
$3,410,000 in net operating income of our operating segments, and
an increase of $517,000 in redeemable preferred stock dividends
declared or accumulated.
FFO attributable to common stockholders5 was $(14,120,000), or
$(0.31) per diluted share of common stock, for the three months
ended March 31, 2019, compared to $10,122,000, or $0.23 per
diluted share of common stock, for the three months ended
March 31, 2018. The decrease in FFO attributable to common
stockholders5 is primarily attributable to $25,071,000 in loss on
early extinguishment of debt, a decrease of $3,410,000 in NOI6 of
our operating segments, and an increase of $517,000 in redeemable
preferred stock dividends declared or accumulated, partially offset
by a decrease of $2,986,000 in interest expense not allocated to
our operating segments, a decrease of $891,000 in general and
administrative expense not allocated to our operating segments, and
a decrease of $361,000 in asset management and other fees to
related parties not allocated to our operating segments.
Segment Information
Our reportable segments during the three months ended
March 31, 2019 and 2018 consisted of two types of commercial
real estate properties, namely, office and hotel, as well as a
segment for our lending business. Net income attributable to common
stockholders was $287,631,000, or $6.30 per diluted share of common
stock, for the three months ended March 31, 2019, compared to
net loss attributable to common stockholders of $(3,026,000), or
$(0.07) per diluted share of common stock, for the three months
ended March 31, 2018, which represents an increase of
$290,657,000, or $6.37 per diluted share of common stock. Total
segment NOI6 was $24,815,000 for the three months ended
March 31, 2019, compared to $28,225,000 for the three months
ended March 31, 2018.
____________________________ 5 Please see page 8 for a
reconciliation of net income (loss) 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. 6 Please see our
reconciliations of office, hotel, lending, and total segment NOI to
net income starting on page 11.
Office
Same-Store7
Same-store7 office segment NOI8 increased 1.3% on a GAAP basis
and increased 9.0% on a cash basis for the three months ended
March 31, 2019 compared to the three months ended
March 31, 2018. The increase in same-store7 office segment
NOI8 was primarily due to increases in rental revenue at certain of
our properties as a result of increases in rental rates and an
increase in real estate tax reimbursements at one of our properties
in Oakland, California due to real estate tax refunds that reduced
such reimbursements during the first quarter of 2018, partially
offset by an increase in real estate taxes at certain of our
properties in California due to real estate tax refunds related to
prior years recognized during the first quarter of 2018 and at
certain of our Washington, D.C. properties due to increases in such
properties' assessed values.
At March 31, 2019, the Company’s same-store7 office
portfolio was 92.9% occupied, an increase of 30 basis points
year-over-year on a same-store7 basis, and 93.6% leased, an
increase of 70 basis points year-over-year on a same-store7 basis.
The annualized rent per occupied square foot9 on a same-store basis
was $43.99 at March 31, 2019 compared to $41.99 at
March 31, 2018. For the three months ended March 31,
2019, the Company executed 32,576 square feet of recurring leases
at our same-store7 office portfolio, representing same-store7 cash
rent growth per square foot of 21.6%.
Total
Office segment NOI8 decreased to $19,732,000 for the three
months ended March 31, 2019, from $22,548,000 for the three
months ended March 31, 2018. The decrease was primarily
attributable to the sale of three office properties and a parking
garage in Oakland, California, the sale of an office property in
Washington, D.C., and the sale of an office property in San
Francisco, California, all in March 2019 and an increase in real
estate taxes at certain of our properties in California due to real
estate tax refunds related to prior years recognized during the
first quarter of 2018 and at certain of our Washington, D.C.
properties due to increases in such properties' assessed values,
partially offset by increases in rental revenue at certain of our
properties due to increases in rental rates, and an increase in
real estate tax reimbursements at one of our properties in Oakland,
California due to real estate tax refunds that reduced such
reimbursements during the first quarter of 2018.
Hotel
Hotel segment NOI8 was $3,881,000 for the three months ended
March 31, 2019, compared to $3,940,000 for the three months
ended March 31, 2018.
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 NOI8 was $1,202,000 for the three months ended
March 31, 2019, compared to $1,737,000 for the three months
ended March 31, 2018. The decrease was primarily due to an
increase in interest expense as a result of the issuance of the SBA
7(a) loan-backed notes in May 2018.
Debt and Equity
During the three months ended March 31, 2019, we issued
305,474 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 $6,984,000. 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.
____________________________ 7 Please see our definition of
"same-store properties" on page 10. 8 Please see our
reconciliations of office, hotel, lending, and total segment NOI to
net income starting on page 11. 9 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.
During the three months ended March 31, 2019, we repaid the
outstanding borrowings on our revolving credit facility using cash
on hand and net proceeds from the asset sales completed in March
2019, and we terminated our two remaining interest rate swaps,
which had an aggregate notional value of $120,000,000. Such swaps
were in the money at the time of their termination and we received
aggregate termination payments, net of fees, of $1,302,000. 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.
On March 1, 2019, in connection with the sale of three office
properties and a parking garage in Oakland, California, we legally
defeased the related mortgage loans with an aggregate outstanding
principal balance of $205,500,000 at such time, using proceeds from
the sale.
On March 1, 2019, in connection with the sale of an office
property in Washington, D.C., we prepaid the related mortgage loan
with an outstanding principal balance of $46,000,000 at such time,
using proceeds from the sale.
On March 14, 2019, in connection with the sale of an office
property in San Francisco, California, a mortgage loan with an
outstanding principal balance of $28,200,000 at such time, was
assumed by the buyer.
Dispositions
On March 1, 2019, we sold 100% fee-simple interests in three
office properties and one parking garage, all in Oakland,
California, to an unrelated third-party and recognized an aggregate
gain of $289,779,000.
On March 1, 2019, we sold a 100% fee-simple interest in one
office property in Washington, D.C. to an unrelated third-party and
recognized a gain of $45,710,000.
On March 14, 2019, we sold a 100% fee-simple interest in one
office property in San Francisco, California to an unrelated
third-party and recognized a gain of $42,092,000.
Dividends
On February 20, 2019, we declared a quarterly cash dividend
of $0.125 per share of our common stock, which was paid on
March 25, 2019 to shareholders of record at the close of
business on March 6, 2019.
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 January 1, 2019 to March 31, 2019,
which was paid on April 15, 2019 to shareholders of record at
the close of business on April 5, 2019.
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 metropolitan communities throughout the
United States. Its properties are primarily located in Los Angeles
and the San Francisco Bay Area. 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 timing, manner, and nature of the liquidation and winding up of
CIM Commercial's controlling stockholder, 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) March 31,
2019 December 31, 2018 (Unaudited)
ASSETS
Investments in real estate, net $ 667,965 $ 1,040,937 Cash and cash
equivalents 299,429 54,931 Restricted cash 11,738 22,512 Loans
receivable, net 72,413 83,248 Accounts receivable, net 5,904 6,640
Deferred rent receivable and charges, net 46,625 84,230 Other
intangible assets, net 8,813 9,531 Other assets 15,471 18,197
Assets held for sale, net 58,216 22,175 TOTAL ASSETS
$ 1,186,574 $ 1,342,401
LIABILITIES, REDEEMABLE
PREFERRED STOCK, AND EQUITY LIABILITIES: Debt, net $ 165,550 $
588,671 Accounts payable and accrued expenses 13,072 41,598
Intangible liabilities, net 2,359 2,872 Due to related parties
9,105 10,951 Other liabilities 11,331 16,535 Liabilities associated
with assets held for sale, net 41,861 28,766 Total
liabilities 243,278 689,393 COMMITMENTS AND
CONTINGENCIES REDEEMABLE PREFERRED STOCK: Series A, $0.001 par
value; 36,000,000 shares authorized; 1,481,243 and 1,480,043 shares
issued and outstanding, respectively, at March 31, 2019 and
1,566,386 and 1,565,346 shares issued and outstanding,
respectively, at December 31, 2018; liquidation preference of
$25.00 per share, subject to adjustment 33,789 35,733 EQUITY:
Series A cumulative redeemable preferred stock, $0.001 par value;
36,000,000 shares authorized; 1,677,786 and 1,669,881 shares issued
and outstanding, respectively, at March 31, 2019 and 1,287,169 and
1,281,804 shares issued and outstanding, respectively, at December
31, 2018; liquidation preference of $25.00 per share, subject to
adjustment 41,541 31,866 Series L cumulative redeemable preferred
stock, $0.001 par value; 9,000,000 shares authorized; 8,080,740
shares issued and outstanding at March 31, 2019 and December 31,
2018; 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 shares issued and
outstanding at March 31, 2019 and December 31, 2018 44 44
Additional paid-in capital 789,578 790,354 Accumulated other
comprehensive income — 1,806 Distributions in excess of earnings
(151,570 ) (436,883 ) Total stockholders' equity 908,844 616,438
Noncontrolling interests 663 837 Total equity 909,507
617,275 TOTAL LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND EQUITY $ 1,186,574 $ 1,342,401
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited and in
thousands, except per share amounts) Three
Months Ended March 31, 2019 2018
(Unaudited) REVENUES: Rental and other property income $ 33,581 $
35,144 Hotel income 9,804 9,689 Interest and other income 3,892
3,461 47,277 48,294 EXPENSES: Rental
and other property operating 20,253 17,916 Asset management and
other fees to related parties 5,886 6,211 Interest 4,045 6,633
General and administrative 1,788 3,376 Transaction costs 44 —
Depreciation and amortization 9,630 13,148 Loss on early
extinguishment of debt 25,071 — Impairment of real estate 66,200
— 132,917 47,284 Gain on sale of real
estate 377,581 — INCOME BEFORE PROVISION FOR INCOME
TAXES 291,941 1,010 Provision for income taxes 318 388
NET INCOME 291,623 622 Net loss (income) attributable to
noncontrolling interests 174 (4 ) NET INCOME ATTRIBUTABLE TO
THE COMPANY 291,797 618 Redeemable preferred stock dividends
declared or accumulated (4,162 ) (3,645 ) Redeemable preferred
stock redemptions (4 ) 1 NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $ 287,631 $ (3,026 ) NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: Basic $ 6.57
$ (0.07 ) Diluted $ 6.30 $ (0.07 ) WEIGHTED AVERAGE SHARES
OF COMMON STOCK OUTSTANDING: Basic 43,795 43,785
Diluted 45,736 43,785
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 income
(loss) attributable to common stockholders to FFO attributable to
common stockholders:
Three Months EndedMarch 31, 2019
2018 (in thousands) Net income (loss) attributable to common
stockholders $ 287,631 $ (3,026 ) Depreciation and amortization
9,630 13,148 Impairment of real estate 66,200 — Gain on sale of
depreciable assets7 (377,581 ) — FFO attributable to common
stockholders $ (14,120 ) $ 10,122 FFO attributable to common
stockholders per diluted share $ (0.31 ) $ 0.23
____________________________ 7 In connection with the sale
of certain properties during the three months ended March 31, 2019,
we recognized $25,071,000, or $0.55 per diluted share, in loss on
early extinguishment of debt primarily related to the defeasance
and prepayment of mortgage loans collateralized by such properties.
Such loss on early extinguishment of debt is not included in the
adjustment for the gain on sale of depreciable assets presented in
the table above.
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
income (loss) attributable to common stockholders for the three
months ended March 31, 2019 and 2018:
Three Months Ended March 31, 2019
2018 Numerator: Net income (loss) attributable to
common stockholders $ 287,631 $ (3,026 ) Redeemable preferred stock
dividends declared on dilutive shares 492 — Diluted
net income (loss) attributable to common stockholders $ 288,123
$ (3,026 )
Denominator: Basic weighted average shares
of Common Stock outstanding 43,795 43,785 Effect of dilutive
securities—contingently issuable shares 1,941 —
Diluted weighted average shares and common stock equivalents
outstanding 45,736 43,785
Net income (loss)
attributable to common stockholders per share: Basic $ 6.57
$ (0.07 ) Diluted $ 6.30 $ (0.07 )
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, gain (loss) on early
extinguishment of debt, impairment of real estate, transaction
costs, and provision for income taxes. For our lending segment, we
define segment 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 January 1, 2018; (ii) sold
or otherwise removed from our consolidated financial statements on
or before March 31, 2019; or (iii) that underwent a major
repositioning project we believed significantly affected its
results at any point during the period commencing on January 1,
2018 and ending on March 31, 2019.
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES
Reconciliation of Net Operating Income (Continued)
(Unaudited and in thousands)
Below is a reconciliation of cash NOI to
segment NOI and net income for the three months ended March 31,
2019 and 2018.
Three Months Ended March 31, 2019
Same-StoreOffice
Non-Same-StoreOffice
TotalOffice
Hotel Lending Total
Cash net operating income excluding lease termination income
$ 12,510 $ 7,029 $ 19,539 $ 3,881 $ 1,202 $ 24,622 Cash lease
termination income — — — — — —
Cash net operating income 12,510 7,029 19,539 3,881 1,202
24,622 Deferred rent and amortization of intangible assets,
liabilities, and lease inducements 2 191 193 — — 193 Straight line
rent, below-market ground lease and amortization of intangible
assets — — — — — — Straight line lease termination income —
— — — — — Segment net operating
income 12,512 7,220 19,732 3,881 1,202 24,815 Interest and other
income 319 Asset management and other fees to related parties
(5,249 ) Interest expense (3,463 ) General and administrative
(1,117 ) Transaction costs (44 ) Depreciation and amortization
(9,630 ) Loss on early extinguishment of debt (25,071 ) Impairment
of real estate (66,200 ) Gain on sale of real estate 377,581
Income before provision for income taxes 291,941 Provision for
income taxes (318 ) Net income 291,623 Net loss attributable to
noncontrolling interests 174 Net income attributable to the
Company $ 291,797
CIM COMMERCIAL TRUST
CORPORATION AND SUBSIDIARIES Reconciliation of Net Operating
Income (Continued) (Unaudited and in thousands)
Three Months Ended March 31, 2018
Same-StoreOffice
Non-Same-StoreOffice
TotalOffice
Hotel Lending Total
Cash net operating income excluding lease termination income
$ 11,475 $ 9,681 $ 21,156 $ 3,938 $ 1,726 $ 26,820 Cash lease
termination income 6 — 6 — — 6
Cash net operating income 11,481 9,681 21,162 3,938 1,726
26,826 Deferred rent and amortization of intangible assets,
liabilities, and lease inducements 876 510 1,386 2 — 1,388 Straight
line rent, below-market ground lease and amortization of intangible
assets — — — — 11 11 Straight line lease termination income —
— — — — — Segment net
operating income 12,357 10,191 22,548 3,940 1,737 28,225 Asset
management and other fees to related parties (5,610 ) Interest
expense (6,449 ) General and administrative (2,008 ) Depreciation
and amortization (13,148 ) Income before provision for income taxes
1,010 Provision for income taxes (388 ) Net income 622 Net income
attributable to noncontrolling interests (4 ) Net income
attributable to the Company $ 618
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190513005823/en/
For CIM Commercial Trust CorporationMedia Relations:Bill
Mendel, 212-397-1030bill@mendelcommunications.com
or
Shareholder Relations:Steve Altebrando,
646-652-8473shareholders@cimcommercial.com
Creative Media and Commu... (NASDAQ:CMCT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Creative Media and Commu... (NASDAQ:CMCT)
Historical Stock Chart
From Jul 2023 to Jul 2024