The declaration, amount and payment of future cash distributions on our common stock are subject to uncertainty due to current market conditions.
Failure to complete the Merger could negatively impact the future of our business and financial results.
The pendency of the Merger, including as a result of the restrictions on the operation of our and CMFT’s business during the period between signing the Merger Agreement and the completion of the Merger, could adversely affect the business and operations of our Company, CMFT or both.
The Merger Agreement and our Advisory Agreement contain provisions that could discourage a potential competing acquiror of us or could result in a competing acquisition proposal being at a lower price than it might otherwise be.
In certain circumstances, either we or CMFT may terminate the Merger Agreement.
We and CMFT each expect to incur substantial expenses related to the Merger.
The Merger may be dilutive to estimated net income for our stockholders.
The market value ascribed to the shares of common stock of our Company upon a liquidity event may be significantly lower than the estimated per share NAV of CMFT Common Stock considered by our Board in approving and recommending the Merger.
We are not aware of any material trends or uncertainties, other than those listed in the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2019 and this Quarterly Report on Form 10-Q, the effects of the recent outbreak of COVID-19, and national economic conditions affecting real estate in general, that may reasonably be expected to have a material impact on our results from the acquisition, management and operation of properties. Currently, we are unable to predict the impact that the COVID-19 pandemic will have on our financial condition, results of operations and cash flows in future periods due to numerous uncertainties.
Our revenue consists primarily of rental and other property income from net leased commercial properties. We also incur certain property operating expenses that are subject to reimbursement by our tenants, which results in additional rental and other property income.
The decreases in revenue of $4,000 and $31,000 during the three and nine months ended September 30, 2020, as compared to the same periods in 2019, were primarily due to decreases in certain operating expense reimbursements from our tenants.
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