Cover Page
Cover Page - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-54939 | |
Entity Registrant Name | CIM REAL ESTATE FINANCE TRUST, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-3148022 | |
Entity Address, Address Line One | 2398 East Camelback Road, 4th Floor | |
Entity Address, City or Town | Phoenix, | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85016 | |
City Area Code | (602) | |
Local Phone Number | 778-8700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity common stock, shares outstanding | 362.5 | |
Entity Central Index Key | 0001498547 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Real estate assets: | ||
Land | $ 874,610,000 | $ 881,896,000 |
Buildings, fixtures and improvements | 2,463,130,000 | 2,490,030,000 |
Intangible lease assets | 389,004,000 | 389,564,000 |
Condominium developments | 201,031,000 | 0 |
Total real estate assets, at cost | 3,927,775,000 | 3,761,490,000 |
Less: accumulated depreciation and amortization | (477,865,000) | (453,385,000) |
Total real estate assets, net | 3,449,910,000 | 3,308,105,000 |
Real estate-related securities | 67,222,000 | 38,194,000 |
Loans held-for-investment and related receivables, net | 1,022,279,000 | 962,624,000 |
Less: Allowance for credit losses | (12,888,000) | (70,358,000) |
Total loans held-for-investment and related receivables, net | 1,009,391,000 | 892,266,000 |
Cash and cash equivalents | 57,550,000 | 121,385,000 |
Restricted cash | 20,372,000 | 7,023,000 |
Rents and tenant receivables, net | 67,208,000 | 74,419,000 |
Prepaid expenses and other assets | 14,516,000 | 10,406,000 |
Deferred costs, net | 4,444,000 | 4,293,000 |
Assets held for sale | 31,241,000 | 3,518,000 |
Total assets | 4,721,854,000 | 4,459,609,000 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Credit facilities, notes payable and repurchase facilities, net | 2,445,246,000 | 2,144,993,000 |
Accrued expenses and accounts payable | 31,653,000 | 30,419,000 |
Due to affiliates | 15,376,000 | 14,723,000 |
Intangible lease liabilities, net | 31,075,000 | 32,718,000 |
Distributions payable | 10,969,000 | 10,969,000 |
Deferred rental income, derivative liabilities and other liabilities | 21,351,000 | 27,361,000 |
Total liabilities | 2,555,670,000 | 2,261,183,000 |
Commitments and contingencies | ||
Redeemable common stock | 0 | 0 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value per share; 490,000,000 shares authorized, 362,001,968 shares issued and outstanding as of both March 31, 2021 and December 31, 2020 | 3,620,000 | 3,620,000 |
Capital in excess of par value | 3,157,899,000 | 3,157,859,000 |
Accumulated distributions in excess of earnings | (996,665,000) | (961,006,000) |
Accumulated other comprehensive income (loss) | 1,330,000 | (2,047,000) |
Total stockholders’ equity | 2,166,184,000 | 2,198,426,000 |
Total liabilities, redeemable common stock and stockholders’ equity | $ 4,721,854,000 | $ 4,459,609,000 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 490,000,000 | 490,000,000 |
Common stock, shares issued (shares) | 362,001,968 | 362,001,968 |
Common stock, shares outstanding (shares) | 362,001,968 | 362,001,968 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Rental and other property income | $ 76,930,000 | $ 68,436,000 |
Interest income | 11,953,000 | 5,571,000 |
Total revenues | 88,883,000 | 74,007,000 |
Operating expenses: | ||
General and administrative | 5,471,000 | 3,682,000 |
Property operating | 10,119,000 | 6,865,000 |
Real estate tax | 12,219,000 | 6,978,000 |
Management and advisory fees and expenses | 13,014,000 | 11,090,000 |
Transaction-related | 185,000 | 252,000 |
Depreciation and amortization | 25,738,000 | 20,823,000 |
Real estate impairment | 4,300,000 | 11,676,000 |
Provision for credit losses | 568,000 | 17,777,000 |
Total operating expenses | 71,614,000 | 79,143,000 |
Gain on disposition of real estate, net | 0 | 13,110,000 |
Operating income | 17,269,000 | 7,974,000 |
Other expense: | ||
Interest expense and other, net | (20,022,000) | (15,767,000) |
Loss on extinguishment of debt | 0 | (4,382,000) |
Total other expense | (20,022,000) | (20,149,000) |
Net loss | $ (2,753,000) | $ (12,175,000) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (shares) | 362,001,968 | 311,248,421 |
Net loss per common share: | ||
Basic and diluted (USD per share) | $ (0.01) | $ (0.04) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (2,753) | $ (12,175) |
Other comprehensive income (loss) | ||
Unrealized gain on real estate-related securities | 122 | 0 |
Unrealized gain (loss) on interest rate swaps | 123 | (10,805) |
Amount of loss reclassified from other comprehensive income (loss) into income as interest expense and other, net | 3,132 | 977 |
Total other comprehensive income (loss) | 3,377 | (9,828) |
Comprehensive income (loss) | $ 624 | $ (22,003) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Accumulated Distributions in Excess of Earnings | Accumulated Other Comprehensive (Loss) Income | Revision of Prior Period, Accounting Standards Update, Adjustment | Revision of Prior Period, Accounting Standards Update, AdjustmentAccumulated Distributions in Excess of Earnings |
Beginning balance (shares) at Dec. 31, 2019 | 311,207,725 | ||||||
Beginning balance at Dec. 31, 2019 | $ 1,789,948 | $ 3,112 | $ 2,606,925 | $ (816,181) | $ (3,908) | $ (2,002) | $ (2,002) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (shares) | 2,223,298 | ||||||
Issuance of common stock | 19,231 | $ 22 | 19,209 | ||||
Equity-based compensation | 40 | 40 | |||||
Distributions declared on common stock | (48,332) | (48,332) | |||||
Redemptions of common stock (shares) | (2,256,037) | ||||||
Redemptions of common stock | (19,514) | $ (22) | (19,492) | ||||
Changes in redeemable common stock | 283 | 283 | |||||
Comprehensive (loss) income | (22,003) | (12,175) | (9,828) | ||||
Ending balance (shares) at Mar. 31, 2020 | 311,174,986 | ||||||
Ending balance at Mar. 31, 2020 | $ 1,717,651 | $ 3,112 | 2,606,965 | (878,690) | (13,736) | ||
Beginning balance (shares) at Dec. 31, 2020 | 362,001,968 | 362,001,968 | |||||
Beginning balance at Dec. 31, 2020 | $ 2,198,426 | $ 3,620 | 3,157,859 | (961,006) | (2,047) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 40 | 40 | |||||
Distributions declared on common stock | (32,906) | (32,906) | |||||
Comprehensive (loss) income | $ 624 | (2,753) | 3,377 | ||||
Ending balance (shares) at Mar. 31, 2021 | 362,001,968 | 362,001,968 | |||||
Ending balance at Mar. 31, 2021 | $ 2,166,184 | $ 3,620 | $ 3,157,899 | $ (996,665) | $ 1,330 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Distributions declared on common stock (USD per share) | $ 0.09 | $ 0.15 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (2,753) | $ (12,175) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization, net | 25,118 | 20,530 |
Amortization of deferred financing costs | 1,871 | 1,042 |
Amortization of fair value adjustment of mortgage notes payable assumed | (23) | (23) |
Amortization and accretion on deferred loan fees | (376) | (560) |
Amortization of premiums and discounts on credit investments | (442) | (21) |
Capitalized interest income on real estate-related securities | (173) | (539) |
Equity-based compensation | 40 | 40 |
Straight-line rental income | (1,706) | (375) |
Write-offs for uncollectible lease-related receivables | 1,773 | 636 |
Gain on disposition of real estate assets, net | 0 | (13,110) |
Loss on sale of credit investments, net | 111 | 0 |
Amortization of fair value adjustment and gain on interest rate swaps | (1,431) | (5) |
Impairment of real estate assets | 4,300 | 11,676 |
Provision for credit losses | 568 | 17,777 |
Write-off of deferred financing costs | 0 | 177 |
Changes in assets and liabilities: | ||
Rents and tenant receivables, net | 7,151 | (238) |
Prepaid expenses and other assets | (4,175) | (484) |
Accrued expenses and accounts payable | (435) | 1,918 |
Deferred rental income and other liabilities | (1,324) | (7,271) |
Due to affiliates | 653 | (1,849) |
Net cash provided by operating activities | 28,747 | 17,146 |
Cash flows from investing activities: | ||
Investment in real estate-related securities | (28,509) | 0 |
Investment in broadly syndicated loans | (82,144) | (330,678) |
Investment in real estate assets and capital expenditures | (10,864) | (1,534) |
Origination and acquisition of loans held-for-investment, net | (185,652) | (866) |
Origination and exit fees received on loans held-for-investment | 2,043 | 61 |
Principal payments received on loans held-for-investment | 51,650 | 6,853 |
Principal payments received on real estate-related securities | 10 | 0 |
Net proceeds from disposition of real estate assets | 3,511 | 126,645 |
Net proceeds from sale of broadly syndicated loans | 7,445 | 0 |
Net cash used in investing activities | (242,510) | (199,519) |
Cash flows from financing activities: | ||
Redemptions of common stock | 0 | (19,514) |
Distributions to stockholders | (32,906) | (29,148) |
Proceeds from credit facility and repurchase facilities | 282,323 | 100,000 |
Repayments of credit facility and notes payable | (85,298) | (97,129) |
Refund of loan deposits | 65 | 0 |
Deferred financing costs paid | (907) | (115) |
Net cash provided by (used in) financing activities | 163,277 | (45,906) |
Net decrease in cash and cash equivalents and restricted cash | (50,486) | (228,279) |
Cash and cash equivalents and restricted cash, beginning of period | 128,408 | 473,355 |
Cash and cash equivalents and restricted cash, end of period | 77,922 | 245,076 |
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets: | ||
Total cash and cash equivalents and restricted cash | $ 77,922 | $ 245,076 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | NOTE 1 — ORGANIZATION AND BUSINESS CIM Real Estate Finance Trust, Inc. (the “Company”) is a non-exchange traded real estate investment trust (“REIT”) formed as a Maryland corporation on July 27, 2010, that elected to be taxed, and currently qualifies, as a REIT for U.S. federal income tax purposes beginning with its taxable year ended December 31, 2012. The Company operates a diversified portfolio of core commercial real estate assets primarily consisting of net leased properties located throughout the United States. The Company continues to pursue a more diversified investment strategy across the capital structure by balancing the Company’s existing core of commercial real estate assets leased to creditworthy tenants under long-term net leases with a portfolio of commercial mortgage loans and other credit investments in which the Company’s sponsor and its affiliates have expertise. As of March 31, 2021, the Company owned 515 properties, comprising 21.3 million rentable square feet of commercial space located in 45 states. As of March 31, 2021, the rentable square feet at these properties was 93.7% leased, including month-to-month agreements, if any. As of March 31, 2021, the Company’s loan portfolio consisted of 227 loans with a net book value of $1.0 billion, and investments in real estate-related securities of $67.2 million. During the three months ended March 31, 2021, the Company completed foreclosure proceedings to take control of the assets which previously secured its eight mezzanine loans, including 75 condominium units and 21 rental units across four buildings. A majority of the Company’s business is conducted through CIM Real Estate Finance Operating Partnership, LP, a Delaware limited partnership, of which the Company is the sole general partner and owns, directly or indirectly, 100% of the partnership interests. The Company is externally managed by CIM Real Estate Finance Management, LLC, a Delaware limited liability company (“CMFT Management”), which is an affiliate of CIM Group, LLC (“CIM”). CIM is a community-focused real estate and infrastructure owner, operator, lender and developer. Headquartered in Los Angeles, California, CIM has offices across the United States and in Tokyo, Japan. CCO Group, LLC owns and controls CMFT Management, the Company’s manager, and is the indirect owner of CCO Capital, LLC (“CCO Capital”), the Company’s dealer manager, and CREI Advisors, LLC (“CREI Advisors”), the Company’s property manager. CCO Group, LLC and its subsidiaries (collectively, “CCO Group”) serve as the Company’s sponsor and as a sponsor to CIM Income NAV, Inc. (“CIM Income NAV”). The Company relies upon CIM Capital IC Management, LLC, the Company’s investment advisor (the “Investment Advisor”) to provide substantially all of the Company’s day-to-day management with respect to investments in securities. On January 26, 2012, the Company commenced its initial public offering on a “best efforts” basis of up to a maximum of $2.975 billion in shares of common stock (the “Offering”). The Company ceased issuing shares in the Offering on April 4, 2014. At the completion of the Offering, a total of approximately 297.4 million shares of common stock had been issued, including approximately 292.3 million shares of common stock sold to the public pursuant to the primary portion of the Offering and approximately 5.1 million shares of common stock issued pursuant to the distribution reinvestment plan (“DRIP”) portion of the Offering. The remaining approximately 404,000 unsold shares from the Offering were deregistered. The Company registered $247.0 million of shares of common stock under the DRIP (the “Initial DRIP Offering”) pursuant to a Registration Statement on Form S-3 (Registration No. 333-192958), which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2013 and automatically became effective with the SEC upon filing. The Company ceased issuing shares under the Initial DRIP Offering effective as of June 30, 2016. At the completion of the Initial DRIP Offering, a total of approximately $241.7 million of shares of common stock had been issued. The remaining $5.3 million of unsold shares from the Initial DRIP Offering were deregistered. The Company registered an additional $600.0 million of shares of common stock under the DRIP (the “Secondary DRIP Offering,” and together with the Initial DRIP Offering, the “DRIP Offerings,” and the DRIP Offerings collectively with the Offering, the “Offerings”) pursuant to a Registration Statement on Form S-3 (Registration No. 333-212832), which was filed with the SEC on August 2, 2016 and automatically became effective with the SEC upon filing. The Company began to issue shares under the Secondary DRIP Offering on August 2, 2016 and continued to issue shares under the Secondary DRIP Offering until, on August 30, 2020, the Company’s board of directors (the “Board”) suspended the Secondary DRIP Offering in connection with the entry of the Company into the merger agreements with Cole Office & Industrial REIT (CCIT III), Inc. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying condensed consolidated financial statements. Principles of Consolidation and Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2020, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation.These reclassifications had no effect on previously reported totals or subtotals. The Company is separately presenting the write-offs for uncollectible lease-related receivables of $636,000 for the three months ended March 31, 2020, which was previously included in straight-line rental income, net in the condensed consolidated statements of cash flows. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life. The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Recoverability of Real Estate Assets The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to: bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, lease concessions and other factors; a significant decrease in a property’s revenues due to lease terminations; vacancies; co-tenancy clauses; reduced lease rates; and changes in anticipated holding periods. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions. During the three months ended March 31, 2021, as part of the Company’s quarterly impairment review procedures, the Company recorded impairment charges of $4.3 million related to five properties, of which impairment at three properties was due to sales prices that were less than their respective carrying values and impairment at two properties was due to vacancy. The Company’s impairment assessment as of March 31, 2021 was based on the most current information available to the Company, including expected holding periods. If the Company’s expected holding periods for assets change, subsequent tests for impairment could result in additional impairment charges in the future. The Company cannot provide any assurance that additional material impairment charges with respect to the Company’s real estate assets will not occur during 2021 or in future periods. During the three months ended March 31, 2020, the Company recorded impairment charges of $11.7 million related to six properties due to revised cash flow estimates as a result of market conditions and one property due to a tenant bankruptcy. The assumptions and uncertainties utilized in the evaluation of the impairment of real estate assets are discussed in detail in Note 3 — Fair Value Measurements. See also Note 4 — Real Estate Assets for further discussion regarding real estate investment activity. Assets Held for Sale When a real estate asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the assets related to the property and estimate its fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount is then recorded to reflect the estimated fair value of the property, net of selling costs. As of March 31, 2021, the Company identified two properties with a fair value of $31.2 million as held for sale, which were sold subsequent to March 31, 2021 at a gain of $824,000. As of March 31, 2021, the Company had mortgage notes payable of $21.9 million related to one of the held for sale properties, which was repaid subsequent to March 31, 2021 in connection with the disposition of the underlying held for sale property. As of December 31, 2020, the Company identified one property with a fair value of $3.5 million as held for sale, which was sold during the three months ended March 31, 2021. No gain or loss was recognized on this disposition. Disposition of Real Estate Assets Gains and losses from dispositions are recognized once the various criteria relating to the terms of sale and any subsequent involvement by the Company with the asset sold are met. A discontinued operation includes only the disposal of a component of an entity and represents a strategic shift that has (or will have) a major effect on an entity’s financial results. The Company’s property dispositions during the three months ended March 31, 2021 and 2020 did not qualify for discontinued operations presentation and thus, the results of the properties that were sold will remain in operating income, and any associated gains or losses from the disposition are included in gain on disposition of real estate, net. See Note 4 — Real Estate Assets for a discussion of the disposition of individual properties during the three months ended March 31, 2021. Allocation of Purchase Price of Real Estate Assets Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and other intangibles, based in each case on their relative fair values. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information. The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations. Certain acquisition-related expenses related to asset acquisitions are capitalized and allocated to tangible and intangible assets and liabilities, as described above. Other acquisition-related expenses, such as manager expense reimbursements, continue to be expensed as incurred and are included in transaction-related expenses in the accompanying condensed consolidated statements of operations . Restricted Cash The Company had $20.4 million and $7.0 million in restricted cash as of March 31, 2021 and December 31, 2020, respectively. Included in restricted cash was $4.0 million and $3.6 million held by lenders in lockbox accounts, as of March 31, 2021 and December 31, 2020, respectively. As part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. Also included in restricted cash was $16.4 million and $3.4 million held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the associated lender’s loan agreement, as of March 31, 2021 and December 31, 2020, respectively. Real Estate-Related Securities Real estate-related securities consists primarily of the Company’s investment in commercial mortgage-backed securities (“CMBS”). The Company determines the appropriate classification for real estate-related securities at the time of purchase and reevaluates such designation as of each balance sheet date. As of March 31, 2021, the Company classified its investments as available-for-sale as the Company is not actively trading the securities; however, the Company may sell them prior to their maturity. These investments are carried at their estimated fair value with unrealized gains and losses reported in other comprehensive income (loss). During the three months ended March 31, 2021, the Company invested $28.5 million in CMBS. As of March 31, 2021, the Company had investments in five CMBS with an estimated aggregate fair value of $67.2 million. The Company monitors its available-for-sale securities for changes in fair value. An allowance for credit losses is recorded when the Company acquires CMBS, and any subsequent impairment is recognized when the Company determines that a decline in the estimated fair value of a security below its amortized cost has resulted from a credit loss or other factors. The Company records impairments related to credit losses through the allowance for credit losses. However, the allowance is limited by the amount that the fair value is less than the amortized cost basis. The Company considers many factors in determining whether a credit loss exists, including, but not limited to, the extent to which the fair value is less than the amortized cost basis, recent events specific to the security, industry or geographic area, the payment structure of the security, the failure of the issuer of the security to make scheduled interest or principal payments, and external credit ratings and recent changes in such ratings. The analysis of determining whether a credit loss exists requires significant judgments and assumptions. The use of alternative judgments and assumptions could result in a different conclusion. The amortized cost of real estate-related securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method and is recorded in the accompanying condensed consolidated statements of operations in interest and other expense, net. Upon the sale of a security, the realized net gain or loss is computed on the specific identification method. Interest earned is either received in cash or capitalized to real estate-related securities in the Company’s condensed consolidated balance sheets. Interest is capitalized when certain conditions are met as specified in each security agreement. During the three months ended March 31, 2021, the Company recorded $12.0 million in interest income on its credit investments, $173,000 of which was capitalized to real estate-related securities. No such amounts were capitalized during the three months ended March 31, 2020 as the Company began investing in real estate-related securities in June 2020. Loans Held-for-Investment The Company has acquired, and may continue to acquire, loans related to real estate assets. Additionally, the Company may acquire and originate credit investments, including commercial mortgage loans, mezzanine loans, preferred equity, and other loans and securities related to commercial real estate assets, as well as corporate loan opportunities that are consistent with the Company’s investment strategy and objectives. The Company intends to hold the loans held-for-investment for the foreseeable future or until maturity. Loans held-for-investment are carried on the Company’s condensed consolidated balance sheets at amortized cost, net of any allowance for credit losses. Discounts or premiums, origination fees and exit fees are amortized as a component of interest income using the effective interest method over the life of the respective loans, or on a straight-line basis when it approximates the effective interest method. Upon the sale of a loan, the realized net gain or loss is computed on the specific identification method. Interest earned is either received in cash or capitalized to loans held-for-investment and related receivables, net in the Company’s condensed consolidated balance sheets. Interest is capitalized when certain conditions are met as specified in each loan agreement. During the three months ended March 31, 2020, the Company recorded $5.6 million in interest income on its credit investments, $539,000 of which was capitalized to loans held-for-investment and related receivables, net. Accrual of interest income is suspended on nonaccrual loans. Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. Interest collected is recognized on a cash basis by crediting income when received. Loans may be restored to accrual status when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured. As of March 31, 2021, the Company did not have nonaccrual loans. Allowance for Credit Losses The Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), on January 1, 2020. The allowance for credit losses required under ASU 2016-13 reflects the Company’s current estimate of potential credit losses related to the Company’s loans held-for-investment included in the condensed consolidated balance sheets. The initial allowance for credit losses recorded on January 1, 2020 is reflected as a direct charge to retained earnings on the Company’s condensed consolidated statements of stockholders’ equity; however, subsequent changes to the allowance for credit losses are recognized through net income on the Company’s condensed consolidated statements of operations. While ASU 2016-13 does not require any particular method for determining the allowance for credit losses, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the credit loss model have some amount of loss reserve to reflect the GAAP principal underlying the credit loss model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. The Company has elected to use a discounted cash flow model to estimate the allowance for credit losses. This model requires the Company to develop cash flows which project estimated credit losses over the life of the loan and discount these cash flows at the asset’s effective interest rate. The Company then records an allowance for credit losses equal to the difference between the amortized cost basis of the asset and the present value of the expected cash flows. The Company considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that the Company determines that foreclosure of the collateral is probable, the Company measures the expected losses based on the difference between the fair value of the collateral less costs to sell and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. For the Company’s broadly syndicated loans, the Company uses a probability of default and loss given default method using an underlying third-party CMBS/Commercial Real Estate (“CRE”) loan database with historical loan losses from 1998 to 2019. The Company may use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost. Prior to adoption, the Company had no allowance for credit losses on its condensed consolidated balance sheets. The Company recorded a cumulative-effective adjustment to the opening retained earnings in its condensed consolidated statement of stockholders’ equity as of January 1, 2020 of $2.0 million. Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, grouped as follows: (i) loan and credit structure, including the as-is loan-to-value (“LTV”) ratio and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, dynamics of the geography, property type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform — Most satisfactory asset quality and liquidity, good leverage capacity. A “1” rating maintains predictable and strong cash flows from operations. The trends and outlook for the credit's operations, balance sheet, and industry are neutral to favorable. Collateral, if appropriate, exceeds performance metrics; 2- Meets or Exceeds Expectations — Acceptable asset quality, moderate excess liquidity, modest leverage capacity. A “2” rating could have some financial/non-financial weaknesses which are offset by strengths; however, the credit demonstrates an ample current cash flow from operations. The trends and outlook for the credit's operations, balance sheet, and industry are generally positive or neutral. Collateral performance, if appropriate, meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory — Acceptable asset quality, somewhat strained liquidity, minimal leverage capacity. A “3” rating is at times characterized by acceptable cash flows from operations. The trends and conditions of the credit's operations and balance sheet are neutral. Collateral performance, if appropriate, meets or is on track to meet underwriting; business plan can reasonably be achieved; 4- Underperformance — The debt investment possesses credit deficiencies or potential weaknesses which deserve management’s close and continued attention. The portfolio company’s operations and/or balance sheet have demonstrated an adverse trend or deterioration which, while serious, has not reached the point where the liquidation of debt is jeopardized. These weaknesses are generally considered correctable by the borrower in the normal course of business but may weaken the asset or inadequately protect the Company’s credit position if not checked or corrected. Collateral performance, if appropriate, falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5- Default/Possibility of Loss — The debt investment is protected inadequately by the current enterprise value or paying capacity of the obligor or of the collateral, if any. The underlying company’s operations have well-defined weaknesses based upon objective evidence, such as recurring or significant decreases in revenues and cash flows. Major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable; risk of principal loss. Collateral performance, if appropriate, is significantly worse than underwriting. The Company generally assigns a risk rating of “3” to all newly originated or acquired loans held-for-investment during a most recent quarter, except in the case of specific circumstances warranting an exception. Leases The Company has lease agreements with lease and non-lease components. The Company has elected to not separate non-lease components from lease components for all classes of underlying assets (primarily real estate assets) and will account for the combined components as rental and other property income. Non-lease components included in rental and other property income include certain tenant reimbursements for maintenance services (including common-area maintenance services or “CAM”), real estate taxes, insurance and utilities paid for by the lessor but consumed by the lessee. As a lessor, the Company has further determined that this policy will be effective only on a lease that has been classified as an operating lease and the revenue recognition pattern and timing is the same for both types of components. The Company is not a party to any material leases where it is the lessee. Significant judgments and assumptions are inherent in not only determining if a contract contains a lease, but also the lease classification, terms, payments, and, if needed, discount rates. Judgments include the nature of any options, including if they will be exercised, evaluation of implicit discount rates and the assessment and consideration of “fixed” payments for straight-line rent revenue calculations. The Company has an investment in a real estate property that is subject to a ground lease, for which a lease liability and right of use (“ROU”) asset of $2.4 million was recorded as of both March 31, 2021 and December 31, 2020. See Note 15 — Leases for a further discussion regarding this ground lease. Lease costs represent the initial direct costs incurred in the origination, negotiation and processing of a lease agreement. Such costs include outside broker commissions and other independent third-party costs and are amortized over the life of the lease on a straight-line basis. Costs related to salaries and benefits, supervision, administration, unsuccessful origination efforts and other activities not directly related to completed lease agreements are expensed as incurred. Upon successful lease execution, leasing commissions are capitalized. Development Activities Project costs and expenses, including interest incurred, associated with the development, construction and lease-up of a real estate project are capitalized as construction in progress. During the three months ended March 31, 2021, the Company capitalized $514,000 of interest expense associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets. There were no development projects during the three months ended March 31, 2020. Revenue Recognition Revenue from leasing activities Rental and other property income is primarily derived from fixed contractual payments from operating leases, and therefore, is generally recognized on a straight-line basis over the term of the lease, which typically begins the date the tenant takes control of the space. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. Variable rental and other property income consists primarily of tenant reimbursements for recoverable real estate taxes and operating expenses which are included in rental and other property income in the period when such costs are incurred, with offsetting expenses in real estate taxes and property operating expenses, respectively, within the condensed consolidated statements of operations. The Company defers the recognition of variable rental and other property income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. The Company continually reviews whether collection of lease-related receivables, including any straight-line rent, and current and future operating expense reimbursements from tenants are probable. The determination of whether collectability is probable takes into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. Upon the determination that the collectability of a receivable is not probable, the Company will record a reduction to rental and other property income for amounts previously recorded and a decrease in the outstanding receivable. Revenue from leases where collection is deemed to be not probable is recorded on a cash basis until collectability becomes probable. Management’s estimate of the collectability of lease-related receivables is based on the best information available at the time of estimate. The Company does not use a general reserve approach and lease-related receivables are adjusted and taken against rental and other property income only when collectability becomes not probable. During the three months ended March 31, 2021, the Company identified certain tenants where collection was no longer considered probable. For these tenants, the Company made the determination to record revenue on a cash basis and wrote off total outstanding receivables of $1.8 million for the three months ended March 31, 2021, which included $29,000 of straight-line rental income and $1.1 million related to certain tenant reimbursements. These write-offs reduced rental and other property income during the three months ended March 31, 2021. Revenue from lending activities Interest income from the Company’s loans held-for-investment and real estate-related securities is comprised of interest earned on loans and the accretion and amortization of net loan origination fees and discounts. Interest income on loans is accrued as earned, with the accrual of interest suspended when the related loan becomes a nonaccrual loan. Interest income on the Company’s broadly syndicated loans is accrued as earned beginning on the settlement date. Reportable Segments During the year ended December 31, 2020, the Company updated its reportable segment information to reflect how the chief operating decision makers regularly review and manage the business and determined that it has two reportable segments: Credit — engages primarily in acquiring and originating loans related to real estate assets. The Company may acquire first and second lien mortgage loans, mezzanine loans, bridge loans, wraparound mortgage loans, construction mortgage loans on real property and loans on leasehold interest mortgages. This segment also includes investments in CMBS and broadly syndicated loans. Real estate — engages primarily in acquiring and managing income-producing retail properties that are primarily single-tenant properties or anchored shopping centers, which are leased to creditworthy tenants under long-term net leases. The commercial properties are geographically diversified throughout the United States and have similar economic characteristics. See Note 16 — Segment Reporting for a further discussion regarding these segments. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements. In April 2020, the FASB issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the current novel coronavirus (“COVID-19”) pandemic. Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, many lessors may be required to provide rent deferrals and other lease concessions to lessees. While the lease modification guidance in ASC 842 addresses routine changes to lease terms resulting from negotiations between the lessee and the lessor, this guidance did not contemplate concessions being so rapidly executed to address the sudden liquidity constraints of some lessees arising from COVID-19 related impacts. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. The Company has elected to apply this guidance to avoid performing a lease by lease analysis for the lease concessions that (1) were granted as relief due to COVID-19 related imp |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3 — FAIR VALUE MEASUREMENTS GAAP defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows: Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs). Level 3 — Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability. The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities: Real estate-related securities — The Company generally determines the fair value of its real estate-related securities by utilizing broker-dealer quotations, reported trades or valuation estimates from pricing models to determine the reported price. Pricing models for real estate-related securities are generally discounted cash flow models that usually consider the attributes applicable to a particular class of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available. Depending upon the significance of the fair value inputs used in determining these fair values, these securities are valued using either Level 2 or Level 3 inputs. As of March 31, 2021, the Company concluded that $27.4 million of real estate-related securities fell under Level 2 and $39.8 million of real estate-related securities fell under Level 3. Credit facilities and notes payable — The fair value is estimated by discounting the expected cash flows based on estimated borrowing rates available to the Company as of the measurement date. Current and prior period liabilities’ carrying and fair values exclude net deferred financing costs. These financial instruments are valued using Level 2 inputs. As of March 31, 2021, the estimated fair value of the Company’s debt was $2.45 billion, which approximated its carrying value. The estimated fair value of the Company’s debt as of December 31, 2020 was $2.14 billion, compared to a carrying value of $2.15 billion. Derivative instruments — The Company’s derivative instruments are comprised of interest rate swaps. All derivative instruments are carried at fair value and are valued using Level 2 inputs. The fair value of these instruments is determined using interest rate market pricing models. In addition, credit valuation adjustments are incorporated into the fair values to account for the Company’s potential nonperformance risk and the performance risk of the respective counterparties. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of March 31, 2021 and December 31, 2020, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of the Company’s derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Loans held-for-investment — The Company’s loans held-for-investment are recorded at cost upon origination and adjusted by net loan origination fees and discounts. The Company estimates the fair value of its loans held-for-investment by performing a present value analysis for the anticipated future cash flows using an appropriate market discount rate taking into consideration the credit risk. The Company has determined that its CRE loans held-for-investment are classified in Level 3 of the fair value hierarchy. The Company’s broadly syndicated loans are classified as Level 2 or Level 3 depending on the number of market quotations or indicative prices from pricing services that are available, and whether the depth of the market is sufficient to transact at those prices in amounts approximating the Company’s investment position at the measurement date. As of March 31, 2021, $389.7 million and $107.6 million of the Company’s broadly syndicated loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2020, $359.6 million and $114.1 million of the Company’s broadly syndicated loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of March 31, 2021, the estimated fair value of the Company’s loans held-for-investment and related receivables, net was $1.03 billion, compared to its carrying value of $1.01 billion. As of December 31, 2020, the estimated fair value of the Company’s loans held-for-investment was $907.8 million, compared to its carrying value of $892.3 million. Other financial instruments — The Company considers the carrying values of its cash and cash equivalents, restricted cash, tenant receivables, accounts payable and accrued expenses, other liabilities, due to affiliates and distributions payable to approximate their fair values because of the short period of time between their origination and their expected realization as well as their highly-liquid nature. Due to the short-term maturities of these instruments, Level 1 inputs are utilized to estimate the fair value of these financial instruments. Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, upon disposition of the financial assets and liabilities. As of March 31, 2021 and December 31, 2020, there have been no transfer s of financial assets or liabilities between fair value hierarchy levels. Items Measured at Fair Value on a Recurring Basis In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: CMBS $ 67,222 $ — $ 27,441 $ 39,781 Total financial assets $ 67,222 $ — $ 27,441 $ 39,781 Financial liabilities: Interest rate swaps $ (7,622) $ — $ (7,622) $ — Total financial liabilities $ (7,622) $ — $ (7,622) $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: CMBS $ 38,194 $ — $ 27,461 $ 10,733 Total financial assets $ 38,194 $ — $ 27,461 $ 10,733 Financial liabilities: Interest rate swaps $ (12,308) $ — $ (12,308) $ — Total financial liabilities $ (12,308) $ — $ (12,308) $ — The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the three months ended March 31, 2021 (in thousands): CMBS Beginning Balance, January 1, 2021 $ 10,733 Total gains and losses: Unrealized loss included in other comprehensive income, net 70 Purchases and payments received: Purchases 34,491 Discounts, net (5,676) Capitalized interest income 173 Principal payments received (10) Ending Balance, March 31, 2021 $ 39,781 Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges) Certain financial and nonfinancial assets and liabilities are measured at fair value on a nonrecurring basis and are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The Company’s process for identifying and recording impairment related to real estate assets and intangible assets is discussed in Note 2 — Summary of Significant Accounting Policies. As discussed in Note 4 — Real Estate Assets, during the three months ended March 31, 2021, real estate assets related to five properties were deemed to be impaired and their carrying values were reduced to an estimated fair value of $31.3 million, resulting in impairment charges of $4.3 million. During the three months ended March 31, 2020, real estate assets related to seven properties were deemed to be impaired and their carrying values were reduced to an estimated fair value of $52.6 million, resulting in impairment charges of $11.7 million. The Company estimates fair values using Level 3 inputs and a combined income and market approach, specifically using discounted cash flow analysis and recent comparable sales transactions. The evaluation of real estate assets for potential impairment requires the Company’s management to exercise significant judgment and to make certain key assumptions, including, but not limited to, the following: (1) terminal capitalization rates; (2) discount rates; (3) the number of years the property will be held; (4) property operating expenses; and (5) re-leasing assumptions, including the number of months to re-lease, market rental income and required tenant improvements. There are inherent uncertainties in making these estimates such as market conditions and the future performance and sustainability of the Company’s tenants. The Company determined that the selling prices used to determine the fair values were Level 2 inputs. The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the three months ended March 31, 2021: Three Months Ended March 31, 2021 Discount Rate Terminal Capitalization Rate 7.9% - 9.7% 7.4% - 9.2% The following table presents the impairment charges by asset class recorded during the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Asset class impaired: Land $ 768 $ 2,925 Buildings, fixtures and improvements 3,434 8,264 Intangible lease assets 225 497 Intangible lease liabilities (127) (10) Total impairment loss $ 4,300 $ 11,676 |
REAL ESTATE ASSETS
REAL ESTATE ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE ASSETS | NOTE 4 — REAL ESTATE ASSETS Property Acquisitions During the three months ended March 31, 2021 and 2020, the Company did not acquire any properties. Assets Acquired Via Foreclosure During the three months ended March 31, 2021, the Company completed foreclosure proceedings to take control of the assets which previously secured its eight mezzanine loans, including 75 condominium units and 21 rental units across four buildings. No land was acquired in connection with the foreclosure. The following table summarizes the purchase price allocation for the real estate acquired via foreclosure (in thousands): As of March 31, 2021 Buildings, fixtures and improvements 192,182 Acquired in-place leases and other intangibles 134 Intangible lease liabilities (326) Total purchase price $ 191,990 In connection with the foreclosure, the Company assumed $102.6 million of mortgage notes payable related to the assets, as further discussed in Note 9 — Credit Facilities, Notes Payable and Repurchase Facilities. 2021 Condominium Development Project During the three months ended March 31, 2021, the Company capitalized $1.5 million of expenses as construction in progress associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets. 2021 Property Disposition and Real Estate Assets Held for Sale During the three months ended March 31, 2021, the Company disposed of one retail property for an aggregate gross sales price of $3.7 million, resulting in proceeds of $3.5 million after closing costs. The Company has no continuing involvement with this property. As of March 31, 2021, there were two properties classified as held for sale with a carrying value of $31.2 million included in assets held for sale in the accompanying condensed consolidated balance sheets. Subsequent to March 31, 2021, the Company disposed of these properties, as further discussed in Note 17 — Subsequent Events. 2021 Impairment The Company performs quarterly impairment review procedures, primarily through continuous monitoring of events and changes in circumstances that could indicate that the carrying value of certain of its real estate assets may not be recoverable. See Note 2 — Summary of Significant Accounting Policies for a discussion of the Company’s accounting policies regarding impairment of real estate assets. During the three months ended March 31, 2021, five properties totaling approximately 165,000 square feet with a carrying value of $35.6 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $31.3 million, resulting in impairment charges of $4.3 million, which were recorded in the condensed consolidated statements of operations. See Note 3 — Fair Value Measurements for a further discussion regarding these impairment charges. 2020 Property Dispositions During the three months ended March 31, 2020, the Company disposed of 12 properties, consisting of nine retail properties and three anchored shopping centers, for an aggregate gross sales price of $129.0 million, resulting in proceeds of $126.6 million after closing costs and disposition fees due to CMFT Management or its affiliates, and a gain of $13.1 million. The Company has no continuing involvement with these properties. The gain on sale of real estate is included in gain on disposition of real estate, net in the condensed consolidated statements of operations. 2020 Impairment During the three months ended March 31, 2020, seven properties totaling approximately 414,000 square feet with a carrying value of $64.3 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $52.6 million, resulting in impairment charges of $11.7 million, which were recorded in the condensed consolidated statements of operations. See Note 3 — Fair Value Measurements for a further discussion regarding these impairment charges. |
INTANGIBLE LEASE ASSETS AND LIA
INTANGIBLE LEASE ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE LEASE ASSETS AND LIABILITIES | NOTE 5 — INTANGIBLE LEASE ASSETS AND LIABILITIES Intangible lease assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands, except weighted average life remaining): March 31, 2021 December 31, 2020 Intangible lease assets: In-place leases and other intangibles, net of accumulated amortization of $140,462 and $132,967, respectively (with a weighted average life remaining of 9.6 years and 9.7 years, respectively) $ 209,676 $ 217,431 Acquired above-market leases, net of accumulated amortization of $22,607 and $22,054, respectively (with a weighted average life remaining of 7.7 years and 7.6 years, respectively) 16,398 17,112 Total intangible lease assets, net $ 226,074 $ 234,543 Intangible lease liabilities: Acquired below-market leases, net of accumulated amortization of $33,341 and $31,933, respectively (both with a weighted average life remaining of 7.5 years) $ 31,414 $ 32,718 Amortization of the above-market leases is recorded as a reduction to rental and other property income, and amortization expense for the in-place leases and other intangibles is included in depreciation and amortization in the accompanying condensed consolidated statements of operations. Amortization of below-market leases is recorded as an increase to rental and other property income in the accompanying condensed consolidated statements of operations. The following table summarizes the amortization related to the intangible lease assets and liabilities for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 In-place lease and other intangible amortization $ 7,773 $ 5,940 Above-market lease amortization $ 650 $ 908 Below-market lease amortization $ 1,466 $ 1,399 As of March 31, 2021, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands): Amortization In-Place Leases and Above-Market Leases Below-Market Leases Remainder of 2021 $ 22,301 $ 1,813 $ 4,012 2022 27,702 2,323 4,752 2023 24,509 2,070 4,088 2024 21,314 1,575 3,128 2025 17,534 1,334 2,760 Thereafter 96,316 7,283 12,674 Total $ 209,676 $ 16,398 $ 31,414 |
REAL ESTATE-RELATED SECURITIES
REAL ESTATE-RELATED SECURITIES | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE-RELATED SECURITIES | NOTE 6 — REAL ESTATE-RELATED SECURITIES As of March 31, 2021, the Company had CMBS investment securities with an aggregate estimated fair value of $67.2 million. The CMBS mature on various dates from January 2024 through June 2058 and have interest rates ranging from 4.0% to 13.0%. The following is a summary of the Company’s real estate-related securities as of March 31, 2021 (in thousands): Real Estate-Related Securities Amortized Cost Basis Unrealized Gain Fair Value CMBS $ 65,953 $ 1,269 $ 67,222 Total real estate-related securities $ 65,953 $ 1,269 $ 67,222 The following table provides the activity for the real estate-related securities during the three months ended March 31, 2021 (in thousands): Amortized Cost Basis Unrealized Gain Fair Value Real estate-related securities as of January 1, 2021 $ 37,047 $ 1,147 $ 38,194 Face value of real estate-related securities acquired 34,491 — 34,491 Premiums and discounts on purchase of real estate-related securities, net of acquisition costs (5,982) — (5,982) Amortization of discount on real estate-related securities 234 — 234 Capitalized interest income on real estate-related securities 173 — 173 Principal payments received on real estate-related securities (10) — (10) Unrealized gain on real estate-related securities — 122 122 Real estate-related securities as of March 31, 2021 $ 65,953 $ 1,269 $ 67,222 During the three months ended March 31, 2021, the Company invested $28.5 million in CMBS. Unrealized gains and losses on real estate-related securities are recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified into interest expense and other, net in the accompanying condensed consolidated statements of operations as securities are sold and gains and losses are recognized. During the three months ended March 31, 2021, the Company recorded $122,000 of unrealized gains on its real estate-related securities included in accumulated other comprehensive (loss) income in the accompanying condensed consolidated statement of stockholders’ equity. The scheduled maturities of the Company’s real estate-related securities as of March 31, 2021 are as follows (in thousands): Available-for-sale securities Amortized Cost Estimated Fair Value Due within one year $ — $ — Due after one year through five years 26,989 27,441 Due after five years through ten years — — Due after ten years 38,964 39,781 Total $ 65,953 $ 67,222 Actual maturities of real estate-related securities can differ from contractual maturities because borrowers on certain corporate credit securities may have the right to prepay their respective debt obligations at any time. In addition, factors such as prepayments and interest rates may affect the yields on such securities. In estimating credit losses related to real estate-related securities, management considers a variety of factors, including (1) whether the Company has the intent to sell the impaired security before the recovery of its amortized cost basis, (2) whether the Company expects to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value, and (3) whether the Company expects to recover the entire amortized cost basis of the security. As of March 31, 2021, the Company had no credit losses related to real estate-related securities. |
LOANS HELD-FOR-INVESTMENT
LOANS HELD-FOR-INVESTMENT | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
LOANS HELD-FOR-INVESTMENT | NOTE 7 — LOANS HELD-FOR-INVESTMENT The Company’s loans held-for-investment consisted of the following as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands): As of March 31, As of December 31, 2021 2020 Mezzanine loans $ — $ 147,475 Senior loans 525,447 341,546 Total CRE loans held-for-investment and related receivables, net 525,447 489,021 Broadly syndicated loans 496,832 473,603 Loans held-for-investment and related receivables, net $ 1,022,279 $ 962,624 Less: Allowance for credit losses $ (12,888) $ (70,358) Total loans held-for-investment and related receivable, net $ 1,009,391 $ 892,266 During the three months ended March 31, 2021, the Company invested $82.1 million in broadly syndicated loans. During the same period, the Company received $51.6 million of principal payments on broadly syndicated loans and sold $7.6 million of broadly syndicated loans, resulting in proceeds of $7.4 million after closing costs and a loss of $111,000. The loss was recorded as an increase to interest expense and other, net in the condensed consolidated statements of operations. As of March 31, 2021, the Company had $34.5 million of unsettled broadly syndicated loan purchases included in cash and cash equivalents in the accompanying condensed consolidated balance sheet. As of March 31, 2021, the Company had $64.4 million of unfunded commitments related to CRE loans held-for-investment, the funding of which is subject to the satisfaction of borrower milestones. These commitments are not reflected in the accompanying condensed consolidated balance sheet. The following table details overall statistics for the Company’s loans held-for-investment as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands): CRE Loans (1) (2) Broadly Syndicated Loans March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Number of loans 6 12 221 194 Principal balance $ 530,301 $ 481,438 $ 501,095 $ 477,777 Net book value $ 521,562 $ 428,393 $ 487,829 $ 463,873 Weighted-average interest rate 4.9 % 7.5 % 3.6 % 3.8 % Weighted-average maximum years to maturity 2.6 2.2 5.0 4.9 ____________________________________ (1) As of March 31, 2021, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to U.S. dollar LIBOR. (2) Maximum maturity date assumes all extension options are exercised by the borrower; however, the Company’s CRE loans may be repaid prior to such date. Activity relating to the Company’s loans held-for-investment portfolio was as follows (dollar amounts in thousands): Principal Balance Deferred Fees / Other Items (1) Loan Fees Receivable Net Book Value Balance, December 31, 2020 $ 959,215 $ (74,116) $ 7,167 $ 892,266 Loan originations and acquisitions 268,214 — — 268,214 Cure payments receivable (2) — (7,351) — (7,351) Sale of loans (7,594) 38 — (7,556) Principal repayments received (51,650) — — (51,650) Capitalized interest (2) (9,469) — — (9,469) Deferred fees and other items — (2,461) — (2,461) Accretion and amortization of fees and other items — 584 — 584 Foreclosure of assets (2) (127,320) 3,831 (7,167) (130,656) Allowance for credit losses (3) — 57,470 — 57,470 Balance, March 31, 2021 $ 1,031,396 $ (22,005) $ — $ 1,009,391 ____________________________________ (1) Other items primarily consist of allowance for credit losses (as discussed below), purchase discounts or premiums, accretion of exit fees and deferred origination expenses. (2) During the three months ended March 31, 2021, the Company completed foreclosure of the assets which previously secured its eight mezzanine loans. (3) Includes the reversal of the allowance for credit losses related to the mezzanine loans upon foreclosure of the assets which previously secured the loans, as further discussed below in “Allowance for Credit Losses,” partially offset by the increase in allowance for credit losses related to the Company’s loans held-for-investment during the three months ended March 31, 2021. Allowance for Credit Losses The allowance for credit losses reflects the Company’s current estimate of potential credit losses related to the loans held-for-investment included in the Company’s condensed consolidated balance sheets. Refer to Note 2 — Summary of Significant Accounting Policies for further discussion of the Company’s allowance for credit losses. The following table presents the activity in the Company’s allowance for credit losses by loan type for the three months ended March 31, 2021 (dollar amounts in thousands): Mezzanine Loans Senior Loans Broadly Syndicated Loans Total Allowance for credit losses as of December 31, 2020 $ 58,038 $ 2,590 $ 9,730 $ 70,358 Foreclosure of assets (1) (58,038) — — (58,038) Provision for credit losses — 1,295 (727) 568 Allowance for credit losses as of March 31, 2021 $ — $ 3,885 $ 9,003 $ 12,888 ____________________________________ (1) During the three months ended March 31, 2021, the Company completed foreclosure of the assets which previously secured its eight mezzanine loans. Changes to the allowance for credit losses are recognized through net loss on the Company’s condensed consolidated statements of operations. Troubled Debt Restructuring An individual financial instrument is classified as a troubled debt restructuring when there is a reasonable expectation that the financial instrument’s contractual terms will be modified in a manner that grants concessions to the borrower who is experiencing financial difficulties. Concessions could include term extensions, payment deferrals, interest rate reductions, principal forgiveness, forbearance, or other actions designed to maximize the Company’s collection on the financial instrument. The allowance for credit losses for financial instruments that are trouble debt restructurings are determined individually. The Company also classifies a financial instrument as a troubled debt restructuring when receivables from third parties, real estate, or other assets are transferred from the debtor to the creditor in order to fully or partially satisfy a debt, such as in the event of a foreclosure or repossession. During the year ended December 31, 2019, the borrower on the Company’s eight mezzanine loans became delinquent on certain required reserve payments. Throughout 2020, the borrower remained delinquent on the required reserve payments and became delinquent on principal and interest. As a result, the Company classified the loans as a troubled debt restructuring and commenced foreclosure proceedings during the year ended December 31, 2020. Upon completing foreclosure in January 2021, the Company took control of the assets which previously secured the loans, including 75 condominium units and 21 rental units across four buildings. As a result of the foreclosure, the Company recorded a $58.0 million decrease to its provision for credit losses related to its mezzanine loans during the three months ended March 31, 2021. During the same period, the Company recorded a $568,000 net increase to the provision for credit losses related to its senior loans and broadly syndicated loans to reflect the estimated fair value of such loans, bringing the total allowance for credit losses to $12.9 million as of March 31, 2021. As further described in Note 2 — Summary of Significant Accounting Policies, the Company evaluates its loans held-for-investment portfolio on a quarterly basis. Each quarter, the Company assesses the risk factors of each loan, and assigns a risk rating based on several factors. Factors considered in the assessment include, but are not limited to, loan and credit structure, current LTV, debt yield, collateral performance, and the quality and condition of the sponsor, borrower, and guarantor(s). Loans are rated “1” (less risk) through “5” (greater risk), which ratings are defined in Note 2 — Summary of Significant Accounting Policies. The Company’s primary credit quality indicator is its risk ratings, which are further discussed above. The following table presents the net book value of the Company’s loans held-for-investment portfolio as of March 31, 2021 by year of origination, loan type, and risk rating (dollar amounts in thousands): Amortized Cost of Loans Held-For-Investment by Year of Origination (1) As of March 31, 2021 Number of Loans 2021 2020 2019 Total Senior loans by internal risk rating: 1 — — — — — 2 — — — — — 3 6 176,908 232,573 115,966 525,447 4 — — — — — 5 — — — — — Total senior loans 6 176,908 232,573 115,966 525,447 Broadly syndicated loans by internal risk rating: 1 — — — — — 2 3 — 6,906 — 6,906 3 216 64,986 415,232 3,057 483,275 4 2 — 6,651 — 6,651 5 — — — — — Total broadly syndicated loans 221 64,986 428,789 3,057 496,832 Less: Allowance for credit losses (12,888) Total loans held-for-investment and related receivables, net 227 $ 1,009,391 Weighted Average Risk Rating (2) 3.0 ____________________________________ (1) Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 8 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES In the normal course of business, the Company uses certain types of derivative instruments for the purpose of managing or hedging its interest rate risk. During the three months ended March 31, 2021, one of the Company’s interest rate swap agreements matured. As of March 31, 2021, the Company had four interest rate swap agreements designated as hedging instruments. The following table summarizes the terms of the Company’s interest rate swap agreements designated as hedging instruments as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands): Outstanding Notional Fair Value of Liabilities as of Balance Sheet Amount as of Interest Effective Maturity March 31, December 31, Location March 31, 2021 Rates (1) Dates Dates 2021 2020 Interest Rate Swaps Deferred rental income, derivative liabilities and other liabilities $ 273,600 2.55% to 4.50% 6/29/2016 to 5/27/2020 4/5/2021 to 3/27/2023 $ (7,622) $ (12,308) ____________________________________ (1) The interest rates consist of the underlying index swapped to a fixed rate and the applicable interest rate spread as of March 31, 2021. Additional disclosures related to the fair value of the Company’s derivative instruments are included in Note 3 — Fair Value Measurements. The notional amount under the interest rate swap agreements is an indication of the extent of the Company’s involvement in each instrument, but does not represent exposure to credit, interest rate or market risks. Accounting for changes in the fair value of a derivative instrument depends on the intended use and designation of the derivative instrument. The Company designated the interest rate swaps as cash flow hedges in order to hedge the variability of the anticipated cash flows on its variable rate debt. The change in fair value of the derivative instruments that are designated as hedges is recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate debt. For the three months ended March 31, 2021 and 2020, the amount of losses reclassified from other comprehensive income (loss) as an increase to interest expense was $3.1 million and $977,000, respectively. The total unrealized gain on interest rate swaps was $61,000 as of March 31, 2021, and the total unrealized loss on interest rate swaps was $3.2 million as of December 31, 2020, which are included in accumulated other comprehensive income (loss) in the accompanying condensed consolidated statement of stockholders’ equity. During the next 12 months, the Company estimates that $82,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense. The Company includes cash flows from interest rate swap agreements in net cash flows provided by operating activities on its condensed consolidated statements of cash flows, as the Company’s accounting policy is to present cash flows from hedging instruments in the same category in its condensed consolidated statements of cash flows as the category for cash flows from the hedged items. The Company has agreements with each of its derivative counterparties that contain provisions whereby if the Company defaults on certain of its unsecured indebtedness, the Company could also be declared in default on its derivative obligations, resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value, inclusive of interest payments and accrued interest, of $7.7 million as of March 31, 2021. In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its interest rate swaps based on the credit quality of the Company and the respective counterparty. There were no termination events or events of default related to the interest rate swaps as of March 31, 2021. |
CREDIT FACILITIES, NOTES PAYABL
CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES | NOTE 9 — CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES As of March 31, 2021, the Company had $2.4 billion of debt outstanding, including net deferred financing costs, with a weighted average years to maturity of 1.6 years and a weighted average interest rate of 2.8%. The weighted average years to maturity is computed using the scheduled repayment date as specified in each loan agreement where applicable. The weighted average interest rate is computed using the interest rate in effect until the scheduled repayment date. The following table summarizes the debt balances as of March 31, 2021 and December 31, 2020, and the debt activity for the three months ended March 31, 2021 (in thousands): During the Three Months Ended March 31, 2021 Balance as of December 31, 2020 Debt Issuances & Assumptions (1) Repayments & Modifications Accretion and (Amortization) Balance as of Notes payable – fixed rate debt $ 578,096 $ — $ (243) $ — $ 577,853 Notes payable – variable rate debt — 102,553 — — 102,553 Credit facilities 1,336,500 160,000 (85,000) — 1,411,500 Repurchase facilities 235,380 122,323 (55) — 357,648 Total debt 2,149,976 384,876 (85,298) — 2,449,554 Net premiums (2) 149 — — (23) 126 Deferred costs – credit facility (3) (3,543) — — 733 (2,810) Deferred costs – fixed rate debt (1,589) — — 586 (1,003) Deferred costs – variable rate debt — (621) — — (621) Total debt, net $ 2,144,993 $ 384,255 $ (85,298) $ 1,296 $ 2,445,246 ____________________________________ (1) Includes deferred financing costs incurred during the period. (2) Net premiums on mortgage notes payable were recorded upon the assumption of the respective debt instruments. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective debt instruments using the effective-interest method. (3) Deferred costs related to the term portion of the CMFT Credit Facility (as defined below). Notes Payable As of March 31, 2021, the fixed rate debt outstanding of $577.9 million included $53.6 million of variable rate debt that is fixed through interest rate swap agreements, which has the effect of fixing the variable interest rates per annum through the maturity date of the variable rate debt. The fixed rate debt has interest rates ranging from 2.6% to 5.0% per annum. The fixed rate debt outstanding matures on various dates from April 2021 to December 2024. Should a loan not be repaid by its scheduled repayment date, the applicable interest rate may increase as specified in the respective loan agreement. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the fixed rate debt outstanding was $984.4 million as of March 31, 2021. Each of the mortgage notes payable comprising the fixed rate debt is secured by the respective properties on which the debt was placed. Upon completing foreclosure to take control of the assets which previously secured the Company’s mezzanine loans in January 2021, the Company assumed $102.6 million in variable rate debt related to the underlying properties. As of March 31, 2021, the variable rate debt outstanding had a weighted average interest rate of 5.5%.The variable rate debt outstanding is set to mature on May 9, 2021; however, the Company may elect to extend the maturity date for one 12-month period to May 9, 2022, which was elected subsequent to March 31, 2021. Credit Facilities The Company has a second amended and restated unsecured credit agreement (the “CMFT Second Amended and Restated Credit Agreement”) with JPMorgan Chase Bank, N.A. as administrative agent (“JPMorgan Chase”), and the other lenders party thereto that provides for borrowings of up to $1.24 billion as of March 31, 2021, which includes an $885.0 million unsecured term loan (the “CMFT Term Loan”) and up to $350.0 million in unsecured revolving loans (the “CMFT Revolving Loans” and, collectively with the CMFT Term Loan, the “CMFT Credit Facility”). The CMFT Credit Facility matures on March 15, 2022. Depending upon the type of loan specified and overall leverage ratio, the CMFT Credit Facility bears interest at (i) the one-month, two-month, three-month or six-month LIBOR multiplied by the statutory reserve rate (the “Eurodollar Rate”) plus an interest rate spread ranging from 1.65% to 2.25% or (ii) a base rate, ranging from 0.65% to 1.25%, plus the greater of: (a) JPMorgan Chase’s prime rate; (b) the Federal Funds Effective Rate (as defined in the CMFT Second Amended and Restated Credit Agreement) plus 0.50%; or (c) the one-month LIBOR multiplied by the statutory reserve rate plus 1.00%. On December 21, 2020, as a result of CCPT V’s merger with the Company, a subsidiary of the Company assumed CCPT V’s obligations pursuant to the credit agreement by and among Cole Operating Partnership V, LP, the operating partnership of CCPT V (“CCPT V OP”), JPMorgan Chase, as administrative agent, and the lender parties thereto (the “CCPT V Credit Agreement”), including as guarantor under a guaranty provided by CCPT V, and as modified by a modification agreement dated as of May 31, 2018 and subsequently modified following the consummation of CCPT V’s merger with the Company by a second modification agreement on December 21, 2020. The CCPT V Credit Agreement allows for borrowings of up to $350.0 million (the “CCPT V Credit Facility”). The CCPT V Credit Facility includes $220.0 million in term loans (the “CCPT V Term Loans”) and up to $130.0 million in revolving loans (the “CCPT V Revolving Loans”). The CCPT V Credit Facility matures on March 15, 2022. Depending upon the type of loan specified and overall leverage ratio, the CCPT V Credit Facility bears interest at (i) the one-month, two-month, three-month or six-month LIBOR multiplied by the statutory reserve rate (the “Adjusted LIBO Rate”) for the interest period plus an applicable rate ranging from 1.30% to 1.70%; or (ii) a base rate ranging from 0.30% to 0.70%, plus the greater of: (a) JPMorgan Chase’s Prime Rate (as defined in the CCPT V Credit Agreement); (b) the NYFRB Rate (as defined in the CCPT V Credit Agreement) plus 0.50%; or (c) the Adjusted LIBO Rate for a period of one month plus 1.0%. As of March 31, 2021, there was $50.0 million outstanding under the CMFT Revolving Loans at a weighted average interest rate of 1.9%, and there were no amounts outstanding under the CCPT V Revolving Loans (collectively, the “Revolving Loans”). As of March 31, 2021, the CMFT Term Loan and CCPT V Term Loans (collectively the “Term Loans”) outstanding totaled $1.11 billion, $220.0 million of which is subject to interest rate swap agreements (the “Swapped Term Loans”). The interest rate swap agreements had the effect of fixing the Eurodollar Rate per annum of the Swapped Term Loans at an all-in rate of 4.2%. As of March 31, 2021, the Company had $1.16 billion outstanding under the CMFT Credit Facility and CCPT V Credit Facility (collectively the “Credit Facilities”) at a weighted average interest rate of 2.3% and $430.0 million in unused capacity, subject to borrowing availability. The Company had available borrowings of $44.2 million as of March 31, 2021. The CMFT Second Amended and Restated Credit Agreement and the CCPT V Credit Agreement (collectively, the “Credit Agreements”) contain provisions with respect to covenants, events of default and remedies customary for facilities of this nature. In particular, the CMFT Second Amended and Restated Credit Agreement requires the Company to maintain a minimum consolidated net worth greater than or equal to the sum of $1.75 billion under the CMFT Second Amended and Restated Credit Agreement, and a leverage ratio less than or equal to 60%. The CCPT V Credit Agreement requires a minimum consolidated net worth not less than $225.0 million plus 75% of the equity issued and a net leverage ratio less than or equal to 60%. Each of the Credit Agreements require a fixed charge coverage ratio greater than 1.50, an unsecured debt to unencumbered asset value ratio equal to or less than 60%, an unsecured debt service coverage ratio greater than 1.75, a secured debt ratio equal to or less than 40% and the amount of secured debt that is recourse debt at no greater than 15% of total asset value. The Company believes it was in compliance with the financial covenants under the CMFT Second Amended and Restated Credit Agreement and the CCPT V Credit Agreement, as well as the financial covenants under the Company’s various fixed and variable rate debt agreements, as of March 31, 2021. On December 31, 2019 (the “Closing Date”), CMFT Corporate Credit Securities, LLC, an indirect wholly-owned, bankruptcy-remote subsidiary of the Company, entered into a revolving credit and security agreement (the “Credit and Security Agreement”) with the lenders from time to time parties thereto, Citibank, N.A. (“Citibank”), as administrative agent, CMFT Securities Investments, LLC, a wholly-owned subsidiary of the Company (“CMFT Securities”), as equityholder and as collateral manager, Citibank (acting through its Agency & Trust division), as both a collateral agent and as a collateral custodian, and Virtus Group, LP, as collateral administrator. The Credit and Security Agreement provides for borrowings in an aggregate principal amount up to $500.0 million (the “Credit Securities Revolver”), which may be increased from time to time pursuant to the Credit and Security Agreement. As of March 31, 2021, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $256.5 million at a weighted average interest rate of 1.9%. Borrowings under the Credit and Security Agreement will bear interest equal to the three-month LIBOR for the relevant interest period, plus an applicable rate. The applicable rate is 1.70% per annum during the reinvestment period and 2.00% per annum during the amortization period (and, in each case, an additional 2.00% per annum following an event of default under the Credit and Security Agreement). The reinvestment period begins on the Closing Date and concludes on the earlier of (i) the date that is three years after the Closing Date, (ii) the final maturity date and (iii) the date on which the total assets under management of the Company and its wholly-owned subsidiaries is less than $1.25 billion (the “Reinvestment Period”). The final maturity date is the earliest to occur of: (i) the date that the Credit Securities Revolver is paid down and (ii) the second anniversary after the Reinvestment Period concludes. Borrowings under the Credit and Security Agreement are secured by substantially all of the assets held by CMFT Corporate Credit Securities, LLC, which shall primarily consist of broadly-syndicated senior secured loans subject to certain eligibility criteria under the Credit and Security Agreement. Repurchase Facilities On June 4, 2020, CMFT RE Lending RF Sub CB, LLC, an indirect wholly-owned subsidiary of the Company, entered into a Master Repurchase Agreement with Citibank (the “Citibank Repurchase Agreement”), which provides up to $300.0 million of financing primarily through Citibank’s purchase of the Company’s CRE mortgage loans and future funding advances (the “Citibank Repurchase Facility”). Additionally, on September 21, 2020, CMFT RE Lending RF Sub BB, LLC, an indirect wholly-owned subsidiary of the Company, entered into a second Master Repurchase Agreement with Barclays Bank PLC (“Barclays”) (the “Barclays Repurchase Agreement”), which provides up to $500.0 million of financing primarily through Barclays’ purchase of the Company’s CRE mortgage loans and future funding advances (the “Barclays Repurchase Facility”, and collectively with the Citibank Repurchase Facility, the “Repurchase Facilities”). The Citibank Repurchase Agreement and the Barclays Repurchase Agreement (collectively, the “Repurchase Agreements”) provide for simultaneous agreements by Citibank and Barclays to re-sell such purchased CRE mortgage loans back to CMFT RE Lending RF Sub CB, LLC and CMFT RE Lending RF Sub BB, LLC (collectively, the “CMFT Lending Subs”) at a certain future date or upon demand. Advances under the Repurchase Agreements accrue interest at per annum rates based on the one-month LIBOR, plus a spread ranging from 2.00% to 2.40% to be determined on a case-by-case basis between Citibank or Barclays and the CMFT Lending Subs. The Repurchase Facilities mature on various dates between June 2023 and September 2023, with two one-year extension options, subject to certain conditions set forth in the Repurchase Agreements. In connection with the Repurchase Agreements, the Company (as the guarantor) entered into guaranties with Citibank and Barclays (the “Guaranties”), under which the Company agreed to guarantee up to 25% of the CMFT Lending Subs’ obligations under the Repurchase Agreements. As of March 31, 2021, the Company had six senior loans with an aggregate carrying value of $525.4 million financed with $357.6 million under the Repurchase Facilities, $170.2 million of which was financed under the Barclays Repurchase Facility at a weighted average interest rate of 2.7%, and $187.4 million of which was financed under the Citibank Repurchase Facility at a weighted average interest rate of 2.2%. The Repurchase Agreements and the Guaranties contain representations, warranties, covenants, conditions precedent to funding, events of default and indemnities that are customary for agreements of these types. In addition, the Guaranties contain financial covenants that require the Company to maintain: (i) minimum liquidity of not less than the lower of (a) $50.0 million and (b) the greater of (A) $10.0 million and (B) 5% of the Company’s recourse indebtedness, as defined in the Guaranties; (ii) minimum consolidated net worth greater than or equal to $1.0 billion plus (a) 75% of the equity issued by the Company following the respective closing dates of the Repurchase Agreements (the “Repurchase Closing Dates”) minus (b) the aggregate amount of any redemptions or similar transaction by the Company from the Repurchase Closing Dates; (iii) maximum leverage ratio of total indebtedness to total equity less than or equal to 80%; and (iv) minimum interest coverage ratio of EBITDA (as defined in the Guaranties) to interest expense equal to or greater than 1.40. The Company believes it was in compliance with the financial covenants under the Repurchase Agreements as of March 31, 2021. Maturities Liquidity and Financial Condition — As of March 31, 2021, the Company had $1.4 billion of debt maturing within the next 12 months following the date these financial statements are issued. The Company expects to enter into new financing arrangements or refinance existing arrangements to meet its obligations as they become due, which management believes is probable based on the current loan-to-value ratios, the occupancy of the Company’s properties and assessment of the current lending environment. The Company believes cash on hand, proceeds from real estate asset dispositions, net cash provided by operations, borrowings available under the credit facilities or the entry into new financing arrangements will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to March 31, 2021 (in thousands): Principal Repayments Remainder of 2021 $ 240,520 2022 1,184,391 2023 677,051 2024 347,592 2025 — Thereafter — Total $ 2,449,554 |
SUPPLEMENTAL CASH FLOW DISCLOSU
SUPPLEMENTAL CASH FLOW DISCLOSURES | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW DISCLOSURES | NOTE 10 — SUPPLEMENTAL CASH FLOW DISCLOSURES Supplemental cash flow disclosures for the three months ended March 31, 2021 and 2020 are as follows (in thousands): Three Months Ended March 31, 2021 2020 Supplemental Disclosures of Non-Cash Investing and Financing Activities: Distributions declared and unpaid $ 10,969 $ 16,463 Accrued capital expenditures $ 1,412 $ 87 Accrued deferred financing costs $ 417 $ 8 Real estate acquired via foreclosure $ 191,990 $ — Foreclosure of assets securing the mezzanine loans $ (79,968) $ — Mortgage notes payable assumed in connection with foreclosure of assets securing the mezzanine loans $ 102,553 $ — Change in interest income capitalized to loans held-for-investment $ (9,469) $ 539 Common stock issued through distribution reinvestment plan $ — $ 19,231 Change in fair value of interest rate swaps $ 4,686 $ (9,823) Change in fair value of real estate-related securities $ 122 $ — Supplemental Cash Flow Disclosures: Interest paid $ 18,493 $ 15,665 Cash paid for taxes $ 739 $ 138 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 — COMMITMENTS AND CONTINGENCIES Litigation In the ordinary course of business, the Company may become subject to litigation and claims. The Company is not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to the Company’s business, to which the Company is a party or of which the Company’s properties are the subject. Unfunded Commitments As of March 31, 2021, the Company had $64.4 million of unfunded commitments related to its existing CRE loans held-for-investment. These commitments are not reflected in the accompanying condensed consolidated balance sheet. Unsettled Broadly Syndicated Loans As of March 31, 2021, the Company had $34.5 million of unsettled broadly syndicated loan acquisitions, $711,000 of which settled subsequent to March 31, 2021. Additionally, the Company had $4.3 million of unsettled broadly syndicated loan sales, $1.2 million of which settled subsequent to March 31, 2021. Unsettled acquisitions are included in cash and cash equivalents in the accompanying condensed consolidated balance sheet. Environmental Matters In connection with the ownership and operation of real estate, the Company may potentially be liable for costs and damages related to environmental matters. In addition, the Company may own or acquire certain properties that are subject to environmental remediation. Generally, the seller of the property, the tenant of the property and/or another third party is responsible for environmental remediation costs related to a property. Additionally, in connection with the purchase of certain properties, the respective sellers and/or tenants may agree to indemnify the Company against future remediation costs. The Company also carries environmental liability insurance on its properties that provides limited coverage for any remediation liability and/or pollution liability for third-party bodily injury and/or property damage claims for which the Company may be liable. The Company is not aware of any environmental matters which it believes are reasonably likely to have a material effect on its results of operations, financial condition or liquidity. |
RELATED-PARTY TRANSACTIONS AND
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS | NOTE 12 — RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS The Company has incurred fees and expenses payable to CMFT Management and certain of its affiliates in connection with the acquisition, management and disposition of its assets. On August 20, 2019, the Company and CMFT Management entered into an Amended and Restated Management Agreement (the “Management Agreement”), which amended and restated that certain Advisory Agreement between the parties dated January 24, 2012, as amended (the “Prior Advisory Agreement”). Management and investment advisory fees The Company pays CMFT Management a management fee, payable quarterly in arrears, equal to the greater of (a) $250,000 per annum ($62,500 per quarter) and (b) 1.50% per annum (0.375% per quarter) of the Company’s Equity (as defined in the Management Agreement). CMFT Securities has an investment advisory and management agreement dated December 6, 2019 (the “Investment Advisory and Management Agreement”) with the Investment Advisor. CMFT Securities was formed for the purpose of holding any securities investments made by the Company. The Investment Advisor, a wholly-owned subsidiary of CIM, is registered as an investment advisor under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Pursuant to the Investment Advisory and Management Agreement, the Investment Advisor manages the day-to-day business affairs of CMFT Securities and its investments in corporate credit and real estate-related securities (collectively, the “Managed Assets”), subject to the supervision of the Board. In connection with the services provided by the Investment Advisor, CMFT Securities pays the Investment Advisor an investment advisory fee (the “Investment Advisory Fee”), payable quarterly in arrears, equal to 1.50% per annum (0.375% per quarter) of CMFT Securities’ Equity (as defined in the Investment Advisory and Management Agreement). Because the Managed Assets are excluded from the calculation of management fees payable by the Company to CMFT Management pursuant to the Management Agreement, the total management and advisory fees payable by the Company to its external advisors are not increased as a result of the Investment Advisory and Management Agreement. In addition, the Investment Advisor has a sub-advisory agreement dated December 6, 2019 (the “Sub-Advisory Agreement”) with OFS Capital Management, LLC (the “Sub-Advisor”) to act as an investment sub-advisor to CMFT Securities. The Sub-Advisor is registered as an investment adviser under the Advisers Act and is an affiliate of the Investment Advisor. The Sub-Advisor is responsible for providing investment management services with respect to the corporate credit-related securities held by CMFT Securities. On a quarterly basis, the Investment Advisor designates 50% of the sum of the Investment Advisory Fee and incentive compensation payable to the Investment Advisor as sub-advisory fees. Incentive compensation CMFT Management is entitled to receive incentive compensation, payable with respect to each quarter, which is generally equal to the excess of (a) the product of (i) 20% and (ii) the excess of (A) Core Earnings (as defined in the Management Agreement) of the Company for the previous 12-month period, over (B) the product of (1) the Company’s Consolidated Equity (as defined in the Management Agreement) in the previous 12-month period, and (2) 7% per annum, over (b) the sum of any incentive compensation paid to CMFT Management with respect to the first three calendar quarters of such previous 12-month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable). During the three months ended March 31, 2021 and 2020, no incentive compensation fees were incurred. In addition, the Investment Advisor is eligible to receive a portion of the incentive compensation payable to CMFT Management pursuant to the Management Agreement. In the event that the incentive compensation is earned and payable with respect to any quarter, CMFT Management calculates the portion of the incentive compensation that was attributable to the Managed Assets and payable to the Investment Advisor. Pursuant to the Investment Advisory and Management Agreement, CMFT Securities reimburses the Investment Advisor for costs and expenses incurred by the Investment Advisor on its behalf. Operating expenses The Company reimburses CMFT Management or its affiliates for certain expenses CMFT Management or its affiliates paid or incurred in connection with the services provided to the Company. The Company will reimburse CMFT Management or its affiliates for salaries and benefits paid to personnel who provide services to the Company including the Company’s executive officers and any portfolio management, acquisitions or investment professionals. Disposition fees If CMFT Management or its affiliates provided a substantial amount of services (as determined by a majority of the Company’s independent directors) in connection with the sale of one or more properties (or the Company’s entire portfolio), the Company paid CMFT Management or its affiliates a disposition fee in an amount equal to up to one-half of the real estate or brokerage commission paid by the Company to third parties on the sale of such property, not to exceed 1.0% of the contract price of the property sold; provided, however, in no event would the total disposition fees paid to CMFT Management, its affiliates and unaffiliated third parties exceed the lesser of the customary competitive real estate commission or an amount equal to 6.0% of the contract sales price. The Company recorded fees and expense reimbursements as shown in the table below for services provided by CMFT Management or its affiliates related to the services described above during the periods indicated (in thousands): Three Months Ended March 31, 2021 2020 Management fees and expenses $ 13,014 $ 11,090 Acquisition fees and expenses $ 181 $ 127 Disposition fees $ — $ 341 Operating expenses $ 1,043 $ 810 Of the amounts shown above, $15.4 million and $12.6 million had been incurred, but not yet paid, for services provided by CMFT Management or its affiliates in connection with management and operating activities during the three months ended March 31, 2021 and 2020, respectively, and such amounts were recorded as liabilities of the Company as of such dates. Due to Affiliates As of March 31, 2021 and December 31, 2020, $15.4 million and $14.7 million, respectively, had been incurred primarily for management fees and operating expenses by CMFT Management or its affiliates, but had not yet been reimbursed by the Company. These amounts were included in due to affiliates in the condensed consolidated balance sheets for such periods. Development Management Agreements On January 7, 2021, the Company completed foreclosure proceedings to take control of the assets which previously secured its mezzanine loans, including 75 condominium units and 21 rental units across four buildings in New York. Upon foreclosure, and with the approval of the valuation, compensation and affiliate transactions committee of the Board, CIM NY Management, LLC, an affiliate of the Company’s manager CMFT Management, entered into a Development Management Agreement with the indirect wholly owned subsidiaries of the Company that own each of the four buildings (the “Building Owners”), wherein CIM NY Management, LLC will act as project manager in overseeing the development and construction of property improvements in accordance with each respective Development Management Agreement (the “Development Services”). In consideration for the Development Services, CIM NY Management, LLC will receive a development management fee from the Building Owners equal to 4% of the aggregate gross project costs expended during the term of the Development Management Agreement, subject to the conditions in each respective Development Management Agreement. Additionally, CIM NY Management, LLC is reimbursed by the Building Owners for expenses incurred in connection with the Development Services, including services provided that are incidental to but not part thereof the Development Services. The Development Management Agreement shall remain in effect until the project completion date, and is terminable by either party with fifteen days prior notice to the other party, with or without cause. |
ECONOMIC DEPENDENCY
ECONOMIC DEPENDENCY | 3 Months Ended |
Mar. 31, 2021 | |
Economic Dependency [Abstract] | |
ECONOMIC DEPENDENCY | NOTE 13 — ECONOMIC DEPENDENCY Under various agreements, the Company has engaged and may in the future engage CMFT Management or its affiliates to provide certain services that are essential to the Company, including asset management services, supervision of the management and leasing of properties owned by the Company, asset acquisition and disposition decisions, as well as other administrative responsibilities for the Company including accounting services and stockholder relations. As a result of these relationships, the Company is dependent upon CMFT Management or its affiliates. In the event that these companies are unable to provide the Company with these services, the Company would be required to find alternative providers of these services. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 14 — STOCKHOLDERS’ EQUITY Equity-Based Compensation On August 10, 2018, the Board approved the adoption of the Company’s 2018 Equity Incentive Plan (the “Plan”), under which 400,000 of the Company’s shares of common stock were reserved for issuance and awards of approximately 345,000 shares of common stock are available for future grant at March 31, 2021. Under the Plan, the Board or a committee designated by the Board has the authority to grant restricted stock awards or deferred stock awards to non-employee directors of the Company, which will further align such directors’ interests with the interests of the Company’s stockholders. The Board or a committee designated by the Board also has the authority to determine the terms of any award granted pursuant to the Plan, including vesting schedules, restrictions and acceleration of any restrictions. The Plan may be amended or terminated by the Board at any time. The Plan expires on August 9, 2028. As of March 31, 2021, the Company has granted awards of approximately 11,000 restricted shares to each of the independent members of the Board (approximately 54,500 restricted shares in aggregate) under the Plan. As of March 31, 2021, 32,500 of the restricted shares had vested based on one year of continuous service. The remaining 22,000 restricted shares issued had not vested or been forfeited as of March 31, 2021. The fair value of the Company’s share awards is determined using the Company’s per share NAV on the date of grant. Compensation expense related to the restricted shares is recognized over the vesting period. The Company recorded compensation expense of $40,000 for each of the three months ended March 31, 2021 and 2020, respectively, related to the restricted shares which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. As of March 31, 2021, there was $80,000 of total unrecognized compensation expense related to these restricted shares, which will be recognized ratably over the remaining period of service prior to October 2021. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 15 — LEASES The Company’s real estate assets are leased to tenants under operating leases for which the terms, expirations and extension options vary. The Company’s operating leases do not convey to the lessee the right to purchase the underlying asset upon expiration of the lease period. To determine whether a contract contains a lease, the Company reviews contracts to determine if the agreement conveys the right to control the use of an asset. The Company accounts for lease and non-lease components as a single, combined operating lease component. Non-lease components primarily consist of maintenance services, including CAM, real estate taxes, insurance and utilities paid for by the lessor but consumed by the lessee. Non-lease components are considered to be variable rental and other property income and are recognized in the period incurred. As of March 31, 2021, the Company’s leases had a weighted-average remaining term of 8.7 years. Certain leases include provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other negotiated terms and conditions. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 31, 2021, the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands): Future Minimum Rental Income Remainder of 2021 $ 191,931 2022 248,096 2023 231,349 2024 212,216 2025 193,595 Thereafter 1,245,868 Total $ 2,323,055 A certain amount of the Company’s rental and other property income is from tenants with leases which are subject to contingent rent provisions. These contingent rents are subject to the tenant achieving periodic revenues in excess of specified levels. For the three months ended March 31, 2021 and 2020, the amount of the contingent rent earned by the Company was not significant . Rental and other property income during the three months ended March 31, 2021 and 2020 consisted of the following (in thousands): Three Months Ended March 31, 2021 2020 Fixed rental and other property income (1) $ 66,541 $ 56,673 Variable rental and other property income (2) 10,389 11,763 Total rental and other property income $ 76,930 $ 68,436 __________________________________ (1) Consists primarily of fixed contractual payments from operating leases with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above- and below-market leases, and is net of uncollectible lease-related receivables. (2) Consists primarily of tenant reimbursements for recoverable real estate taxes and property operating expenses, and percentage rent. The Company has one property subject to a non-cancelable operating ground lease with a remaining term of 12.4 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities) and a related ROU asset (in prepaid expenses and other assets) of $2.4 million in the condensed consolidated balance sheets. The lease liability and ROU asset were initially measured at the present value of the future minimum lease payments using a discount rate of 4.3%. This reflects the Company’s incremental borrowing rate, which was calculated based on the interest rate the Company would incur to borrow on a fully collateralized basis over a term similar to the lease. The Company recognized $63,000 of ground lease expense during the three months ended March 31, 2021, of which $61,000 was paid in cash during the period it was recognized. As of March 31, 2021, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $188,000 for the remainder of 2021, $250,000 annually for 2022 through 2026, and $1.6 million thereafter through the maturity date of the lease in August 2033. |
LEASES | NOTE 15 — LEASES The Company’s real estate assets are leased to tenants under operating leases for which the terms, expirations and extension options vary. The Company’s operating leases do not convey to the lessee the right to purchase the underlying asset upon expiration of the lease period. To determine whether a contract contains a lease, the Company reviews contracts to determine if the agreement conveys the right to control the use of an asset. The Company accounts for lease and non-lease components as a single, combined operating lease component. Non-lease components primarily consist of maintenance services, including CAM, real estate taxes, insurance and utilities paid for by the lessor but consumed by the lessee. Non-lease components are considered to be variable rental and other property income and are recognized in the period incurred. As of March 31, 2021, the Company’s leases had a weighted-average remaining term of 8.7 years. Certain leases include provisions to extend the lease agreements, options for early termination after paying a specified penalty, rights of first refusal to purchase the property at competitive market rates, and other negotiated terms and conditions. The Company retains substantially all of the risks and benefits of ownership of the real estate assets leased to tenants. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. As of March 31, 2021, the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands): Future Minimum Rental Income Remainder of 2021 $ 191,931 2022 248,096 2023 231,349 2024 212,216 2025 193,595 Thereafter 1,245,868 Total $ 2,323,055 A certain amount of the Company’s rental and other property income is from tenants with leases which are subject to contingent rent provisions. These contingent rents are subject to the tenant achieving periodic revenues in excess of specified levels. For the three months ended March 31, 2021 and 2020, the amount of the contingent rent earned by the Company was not significant . Rental and other property income during the three months ended March 31, 2021 and 2020 consisted of the following (in thousands): Three Months Ended March 31, 2021 2020 Fixed rental and other property income (1) $ 66,541 $ 56,673 Variable rental and other property income (2) 10,389 11,763 Total rental and other property income $ 76,930 $ 68,436 __________________________________ (1) Consists primarily of fixed contractual payments from operating leases with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above- and below-market leases, and is net of uncollectible lease-related receivables. (2) Consists primarily of tenant reimbursements for recoverable real estate taxes and property operating expenses, and percentage rent. The Company has one property subject to a non-cancelable operating ground lease with a remaining term of 12.4 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities) and a related ROU asset (in prepaid expenses and other assets) of $2.4 million in the condensed consolidated balance sheets. The lease liability and ROU asset were initially measured at the present value of the future minimum lease payments using a discount rate of 4.3%. This reflects the Company’s incremental borrowing rate, which was calculated based on the interest rate the Company would incur to borrow on a fully collateralized basis over a term similar to the lease. The Company recognized $63,000 of ground lease expense during the three months ended March 31, 2021, of which $61,000 was paid in cash during the period it was recognized. As of March 31, 2021, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $188,000 for the remainder of 2021, $250,000 annually for 2022 through 2026, and $1.6 million thereafter through the maturity date of the lease in August 2033. |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 16 — SEGMENT REPORTING The Company has two reportable segments: real estate and credit. Corporate/other represents all corporate level and unallocated items and includes the Company’s other asset management activities and operating expenses. There were no changes in the structure of the Company’s internal organization that prompted the change in reportable segments. Prior period amounts have been revised to conform to the current year presentation shown below. The following tables present segment reporting for the three months ended March 31, 2021 and 2020 (in thousands): Real Estate Credit Corporate/Other (1) Company Total Three Months Ended March 31, 2021 Rental and other property income $ 76,794 $ — $ 136 $ 76,930 Interest income — 11,953 — 11,953 Total revenues 76,794 11,953 136 88,883 General and administrative 64 376 5,031 5,471 Property operating 8,523 — 1,596 10,119 Real estate tax 7,869 — 4,350 12,219 Management and advisory fees and expenses 9,331 2,246 1,437 13,014 Transaction-related 4 — 181 185 Depreciation and amortization 25,738 — — 25,738 Real estate impairment 4,300 — — 4,300 Provision for credit losses — 568 — 568 Total operating expenses 55,829 3,190 12,595 71,614 Operating income (loss) 20,965 8,763 (12,459) 17,269 Other expense: Interest expense and other, net (4,116) (3,547) (12,359) (20,022) Segment net income (loss) $ 16,849 $ 5,216 $ (24,818) $ (2,753) Total assets as of March 31, 2021 $ 3,371,496 $ 1,155,640 $ 194,718 $ 4,721,854 __________________________________ |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 — SUBSEQUENT EVENTS The following events occurred subsequent to March 31, 2021: Broadly Syndicated Loans Subsequent to March 31, 2021, the Company settled $8.7 million of broadly syndicated loan acquisitions, $711,000 of which were traded as of March 31, 2021. Additionally, subsequent to March 31, 2021, the Company settled $8.6 million of broadly syndicated loan sales, $1.2 million of which were traded as of March 31, 2021. CMBS Sales Subsequent to March 31, 2021, the Company sold $24.4 million of CMBS, resulting in proceeds of $27.6 million and a gain of $660,000. CRE Loans Subsequent to March 31, 2021, the Company acquired two senior loans with an aggregate principal balance of $92.6 million and unfunded commitments of $12.4 million, the funding of which is subject to the satisfaction of borrower milestones. The senior loans have a weighted average interest rate of 2.1% and an initial maturity date of November 2021, with three one-year extension options for a final maturity date of November 2024. Property Dispositions Subsequent to March 31, 2021, the Company disposed of five properties for an aggregate gross sales price of $41.5 million. The property dispositions resulted in proceeds of $38.8 million after closing costs and a gain of approximately $2.0 million. In connection with one of the property dispositions, the Company legally defeased a mortgage loan with an outstanding balance of $21.9 million. The Company has no continuing involvement with these properties. Derivative Instruments and Notes Payable Subsequent to March 31, 2021, one of the Company’s interest rate swap agreements matured and the Company repaid in full $32.1 million of the underlying mortgage notes payable. Credit Facilities Subsequent to March 31, 2021, the Company borrowed $60.0 million under the Credit Securities Revolver. The Credit Securities Revolver bears interest equal to the three-month LIBOR for the relevant interest period, plus an applicable rate of 1.70% per annum during the reinvestment period and 2.00% per annum during the amortization period, as discussed in Note 9 — Credit Facilities, Notes Payable and Repurchase Facilities. Subsequent to March 31, 2021, the Company repaid $60.0 million on the CMFT Credit Facility. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying condensed consolidated financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements as of and for the year ended December 31, 2020, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation.These reclassifications had no effect on previously reported totals or subtotals. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Real Estate Assets, Recoverability of Real Estate Assets, Assets Held for Sale, and Disposition of Real Estate Assets | Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life. The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term Recoverability of Real Estate Assets |
Allocation of Purchase Price of Real Estate Assets | Allocation of Purchase Price of Real Estate Assets Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and other intangibles, based in each case on their relative fair values. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information. The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations. Certain acquisition-related expenses related to asset acquisitions are capitalized and allocated to tangible and intangible assets and liabilities, as described above. Other acquisition-related expenses, such as manager expense reimbursements, continue to be expensed as incurred and are included in transaction-related expenses in the accompanying condensed consolidated statements of operations . |
Restricted Cash | Restricted CashAs part of certain debt agreements, rents from certain encumbered properties are deposited directly into a lockbox account, from which the monthly debt service payment is disbursed to the lender and the excess is disbursed to the Company. |
Real Estate-Related Securities | Real Estate-Related SecuritiesReal estate-related securities consists primarily of the Company’s investment in commercial mortgage-backed securities (“CMBS”). The Company determines the appropriate classification for real estate-related securities at the time of purchase and reevaluates such designation as of each balance sheet date. As of March 31, 2021, the Company classified its investments as available-for-sale as the Company is not actively trading the securities; however, the Company may sell them prior to their maturity. These investments are carried at their estimated fair value with unrealized gains and losses reported in other comprehensive income (loss).The Company monitors its available-for-sale securities for changes in fair value. An allowance for credit losses is recorded when the Company acquires CMBS, and any subsequent impairment is recognized when the Company determines that a decline in the estimated fair value of a security below its amortized cost has resulted from a credit loss or other factors. The Company records impairments related to credit losses through the allowance for credit losses. However, the allowance is limited by the amount that the fair value is less than the amortized cost basis. The Company considers many factors in determining whether a credit loss exists, including, but not limited to, the extent to which the fair value is less than the amortized cost basis, recent events specific to the security, industry or geographic area, the payment structure of the security, the failure of the issuer of the security to make scheduled interest or principal payments, and external credit ratings and recent changes in such ratings. The analysis of determining whether a credit loss exists requires significant judgments and assumptions. The use of alternative judgments and assumptions could result in a different conclusion. The amortized cost of real estate-related securities is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method and is recorded in the accompanying condensed consolidated statements of operations in interest and other expense, net. Upon the sale of a security, the realized net gain or loss is computed on the specific identification method. |
Loans Held-for-Investment | Loans Held-for-Investment The Company has acquired, and may continue to acquire, loans related to real estate assets. Additionally, the Company may acquire and originate credit investments, including commercial mortgage loans, mezzanine loans, preferred equity, and other loans and securities related to commercial real estate assets, as well as corporate loan opportunities that are consistent with the Company’s investment strategy and objectives. The Company intends to hold the loans held-for-investment for the foreseeable future or until maturity. Loans held-for-investment are carried on the Company’s condensed consolidated balance sheets at amortized cost, net of any allowance for credit losses. Discounts or premiums, origination fees and exit fees are amortized as a component of interest income using the effective interest method over the life of the respective loans, or on a straight-line basis when it approximates the effective interest method. Upon the sale of a loan, the realized net gain or loss is computed on the specific identification method. |
Allowance for Credit Losses | Allowance for Credit Losses The Company adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), on January 1, 2020. The allowance for credit losses required under ASU 2016-13 reflects the Company’s current estimate of potential credit losses related to the Company’s loans held-for-investment included in the condensed consolidated balance sheets. The initial allowance for credit losses recorded on January 1, 2020 is reflected as a direct charge to retained earnings on the Company’s condensed consolidated statements of stockholders’ equity; however, subsequent changes to the allowance for credit losses are recognized through net income on the Company’s condensed consolidated statements of operations. While ASU 2016-13 does not require any particular method for determining the allowance for credit losses, it does specify the allowance should be based on relevant information about past events, including historical loss experience, current portfolio and market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than a few narrow exceptions, ASU 2016-13 requires that all financial instruments subject to the credit loss model have some amount of loss reserve to reflect the GAAP principal underlying the credit loss model that all loans, debt securities, and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. The Company has elected to use a discounted cash flow model to estimate the allowance for credit losses. This model requires the Company to develop cash flows which project estimated credit losses over the life of the loan and discount these cash flows at the asset’s effective interest rate. The Company then records an allowance for credit losses equal to the difference between the amortized cost basis of the asset and the present value of the expected cash flows. The Company considers loan investments that are both (i) expected to be substantially repaid through the operation or sale of the underlying collateral, and (ii) for which the borrower is experiencing financial difficulty, to be “collateral-dependent” loans. For such loans that the Company determines that foreclosure of the collateral is probable, the Company measures the expected losses based on the difference between the fair value of the collateral less costs to sell and the amortized cost basis of the loan as of the measurement date. For collateral-dependent loans that the Company determines foreclosure is not probable, the Company applies a practical expedient to estimate expected losses using the difference between the collateral’s fair value (less costs to sell the asset if repayment is expected through the sale of the collateral) and the amortized cost basis of the loan. For the Company’s broadly syndicated loans, the Company uses a probability of default and loss given default method using an underlying third-party CMBS/Commercial Real Estate (“CRE”) loan database with historical loan losses from 1998 to 2019. The Company may use other acceptable alternative approaches in the future depending on, among other factors, the type of loan, underlying collateral, and availability of relevant historical market loan loss data. The Company adopted ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost. Prior to adoption, the Company had no allowance for credit losses on its condensed consolidated balance sheets. The Company recorded a cumulative-effective adjustment to the opening retained earnings in its condensed consolidated statement of stockholders’ equity as of January 1, 2020 of $2.0 million. Quarterly, the Company evaluates the risk of all loans and assigns a risk rating based on a variety of factors, grouped as follows: (i) loan and credit structure, including the as-is loan-to-value (“LTV”) ratio and structural features; (ii) quality and stability of real estate value and operating cash flow, including debt yield, dynamics of the geography, property type and local market, physical condition, stability of cash flow, leasing velocity and quality and diversity of tenancy; (iii) performance against underwritten business plan; and (iv) quality, experience and financial condition of sponsor, borrower and guarantor(s). Based on a 5-point scale, the Company’s loans are rated “1” through “5,” from least risk to greatest risk, respectively, which ratings are defined as follows: 1- Outperform — Most satisfactory asset quality and liquidity, good leverage capacity. A “1” rating maintains predictable and strong cash flows from operations. The trends and outlook for the credit's operations, balance sheet, and industry are neutral to favorable. Collateral, if appropriate, exceeds performance metrics; 2- Meets or Exceeds Expectations — Acceptable asset quality, moderate excess liquidity, modest leverage capacity. A “2” rating could have some financial/non-financial weaknesses which are offset by strengths; however, the credit demonstrates an ample current cash flow from operations. The trends and outlook for the credit's operations, balance sheet, and industry are generally positive or neutral. Collateral performance, if appropriate, meets or exceeds substantially all performance metrics included in original or current underwriting / business plan; 3- Satisfactory — Acceptable asset quality, somewhat strained liquidity, minimal leverage capacity. A “3” rating is at times characterized by acceptable cash flows from operations. The trends and conditions of the credit's operations and balance sheet are neutral. Collateral performance, if appropriate, meets or is on track to meet underwriting; business plan can reasonably be achieved; 4- Underperformance — The debt investment possesses credit deficiencies or potential weaknesses which deserve management’s close and continued attention. The portfolio company’s operations and/or balance sheet have demonstrated an adverse trend or deterioration which, while serious, has not reached the point where the liquidation of debt is jeopardized. These weaknesses are generally considered correctable by the borrower in the normal course of business but may weaken the asset or inadequately protect the Company’s credit position if not checked or corrected. Collateral performance, if appropriate, falls short of original underwriting, material differences exist from business plan, or both; technical milestones have been missed; defaults may exist, or may soon occur absent material improvement; and 5- Default/Possibility of Loss — The debt investment is protected inadequately by the current enterprise value or paying capacity of the obligor or of the collateral, if any. The underlying company’s operations have well-defined weaknesses based upon objective evidence, such as recurring or significant decreases in revenues and cash flows. Major variance from business plan; loan covenants or technical milestones have been breached; timely exit from loan via sale or refinancing is questionable; risk of principal loss. Collateral performance, if appropriate, is significantly worse than underwriting. The Company generally assigns a risk rating of “3” to all newly originated or acquired loans held-for-investment during a most recent quarter, except in the case of specific circumstances warranting an exception. |
Leases | Leases The Company has lease agreements with lease and non-lease components. The Company has elected to not separate non-lease components from lease components for all classes of underlying assets (primarily real estate assets) and will account for the combined components as rental and other property income. Non-lease components included in rental and other property income include certain tenant reimbursements for maintenance services (including common-area maintenance services or “CAM”), real estate taxes, insurance and utilities paid for by the lessor but consumed by the lessee. As a lessor, the Company has further determined that this policy will be effective only on a lease that has been classified as an operating lease and the revenue recognition pattern and timing is the same for both types of components. The Company is not a party to any material leases where it is the lessee. Significant judgments and assumptions are inherent in not only determining if a contract contains a lease, but also the lease classification, terms, payments, and, if needed, discount rates. Judgments include the nature of any options, including if they will be exercised, evaluation of implicit discount rates and the assessment and consideration of “fixed” payments for straight-line rent revenue calculations. |
Development Activities | Development Activities Project costs and expenses, including interest incurred, associated with the development, construction and lease-up of a real estate project are capitalized as construction in progress. During the three months ended March 31, 2021, the Company capitalized $514,000 of interest expense associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets. There were no development projects during the three months ended March 31, 2020. |
Revenue Recognition | Revenue Recognition Revenue from leasing activities Rental and other property income is primarily derived from fixed contractual payments from operating leases, and therefore, is generally recognized on a straight-line basis over the term of the lease, which typically begins the date the tenant takes control of the space. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. Variable rental and other property income consists primarily of tenant reimbursements for recoverable real estate taxes and operating expenses which are included in rental and other property income in the period when such costs are incurred, with offsetting expenses in real estate taxes and property operating expenses, respectively, within the condensed consolidated statements of operations. The Company defers the recognition of variable rental and other property income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. The Company continually reviews whether collection of lease-related receivables, including any straight-line rent, and current and future operating expense reimbursements from tenants are probable. The determination of whether collectability is probable takes into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. Upon the determination that the collectability of a receivable is not probable, the Company will record a reduction to rental and other property income for amounts previously recorded and a decrease in the outstanding receivable. Revenue from leases where collection is deemed to be not probable is recorded on a cash basis until collectability becomes probable. Management’s estimate of the collectability of lease-related receivables is based on the best information available at the time of estimate. The Company does not use a general reserve approach and lease-related receivables are adjusted and taken against rental and other property income only when collectability becomes not probable. Revenue from lending activities Interest income from the Company’s loans held-for-investment and real estate-related securities is comprised of interest earned on loans and the accretion and amortization of net loan origination fees and discounts. Interest income on loans is accrued as earned, with the accrual of interest suspended when the related loan becomes a nonaccrual loan. Interest income on the Company’s broadly syndicated loans is accrued as earned beginning on the settlement date. |
Reportable Segments | Reportable Segments During the year ended December 31, 2020, the Company updated its reportable segment information to reflect how the chief operating decision makers regularly review and manage the business and determined that it has two reportable segments: Credit — engages primarily in acquiring and originating loans related to real estate assets. The Company may acquire first and second lien mortgage loans, mezzanine loans, bridge loans, wraparound mortgage loans, construction mortgage loans on real property and loans on leasehold interest mortgages. This segment also includes investments in CMBS and broadly syndicated loans. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements. In April 2020, the FASB issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the current novel coronavirus (“COVID-19”) pandemic. Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, many lessors may be required to provide rent deferrals and other lease concessions to lessees. While the lease modification guidance in ASC 842 addresses routine changes to lease terms resulting from negotiations between the lessee and the lessor, this guidance did not contemplate concessions being so rapidly executed to address the sudden liquidity constraints of some lessees arising from COVID-19 related impacts. Under existing lease guidance, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. The Company has elected to apply this guidance to avoid performing a lease by lease analysis for the lease concessions that (1) were granted as relief due to COVID-19 related impacts and (2) result in the cash flows remaining substantially the same or less than the original contract and will account for these lease concessions as if no changes were made to the leases. During the three months ended March 31, 2021, the Company provided lease concessions, either in the form of rental deferrals or abatements, to certain tenants in response to the impact of the COVID-19 pandemic on those tenants. During the three months ended March 31, 2021, the Company had granted rent deferrals of $427,000. The deferral of rental payments affects the timing, but not the amount, of the lease payments and resulted in an increase of $427,000 to the Company’s lease-related receivables balance as of March 31, 2021. Additionally, during the three months ended March 31, 2021, the Company had granted rental abatements of $13,000. In addition, the Company entered into lease amendments during the three months ended March 31, 2021 that provided for lease concessions, through rent abatements or rent deferrals, that represented substantive changes to the consideration in the original lease. These lease amendments extended the lease periods ranging from 12 months to 63 months. For these leases, the Company applied the lease modification accounting framework pursuant to ASC 842. During the three months ended March 31, 2021 , these lease amendments resulted in rent abatements of $235,000 and deferred rental income of $5,000. As of May 6, 2021, the Company has collected approximately 98% of rental payments billed to tenants during the three months ended March 31, 2021 . In January 2021, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2021-01, Reference Rate Reform (Topic 848) (“ASU 2021-01”). The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions for contract modifications and hedge accounting apply to derivative instruments that use an interest rate for margining, discounting, or contract price alignment that is modified as a result of the discontinuation of the use of the London Interbank Offered Rate (“LIBOR”) as a benchmark interest rate due to reference rate reform. ASU 2021-01 is effective immediately for all entities with the option to apply retrospectively as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, and can be applied prospectively to any new contract modifications made on or after January 7, 2021. The Company currently uses LIBOR as its benchmark interest rate for its derivative instruments, and has not entered into any new contracts on or after the effective date of ASU 2021-01. The Company has evaluated the impact of this ASU’s adoption, and does not believe this ASU will have a material impact on its condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of useful lives of real estate assets | The estimated useful lives of the Company’s real estate assets by class are generally as follows: Buildings 40 years Site improvements 15 years Tenant improvements Lesser of useful life or lease term Intangible lease assets Lease term |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of the company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis | In accordance with the fair value hierarchy described above, the following tables show the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020 (in thousands): Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: CMBS $ 67,222 $ — $ 27,441 $ 39,781 Total financial assets $ 67,222 $ — $ 27,441 $ 39,781 Financial liabilities: Interest rate swaps $ (7,622) $ — $ (7,622) $ — Total financial liabilities $ (7,622) $ — $ (7,622) $ — Balance as of Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: CMBS $ 38,194 $ — $ 27,461 $ 10,733 Total financial assets $ 38,194 $ — $ 27,461 $ 10,733 Financial liabilities: Interest rate swaps $ (12,308) $ — $ (12,308) $ — Total financial liabilities $ (12,308) $ — $ (12,308) $ — |
Reconciliation of the changes in liabilities with Level 3 inputs | The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the three months ended March 31, 2021 (in thousands): CMBS Beginning Balance, January 1, 2021 $ 10,733 Total gains and losses: Unrealized loss included in other comprehensive income, net 70 Purchases and payments received: Purchases 34,491 Discounts, net (5,676) Capitalized interest income 173 Principal payments received (10) Ending Balance, March 31, 2021 $ 39,781 |
Summary of discount rates and terminal capitalization rates of the company’s impairment test | The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the three months ended March 31, 2021: Three Months Ended March 31, 2021 Discount Rate Terminal Capitalization Rate 7.9% - 9.7% 7.4% - 9.2% |
Schedule of impairment charges by asset class | The following table presents the impairment charges by asset class recorded during the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Asset class impaired: Land $ 768 $ 2,925 Buildings, fixtures and improvements 3,434 8,264 Intangible lease assets 225 497 Intangible lease liabilities (127) (10) Total impairment loss $ 4,300 $ 11,676 |
REAL ESTATE ASSETS (Tables)
REAL ESTATE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of purchase price allocation for asset acquisition | The following table summarizes the purchase price allocation for the real estate acquired via foreclosure (in thousands): As of March 31, 2021 Buildings, fixtures and improvements 192,182 Acquired in-place leases and other intangibles 134 Intangible lease liabilities (326) Total purchase price $ 191,990 |
INTANGIBLE LEASE ASSETS AND L_2
INTANGIBLE LEASE ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Intangible lease assets and liabilities consisted of the following as of March 31, 2021 and December 31, 2020 (in thousands, except weighted average life remaining): March 31, 2021 December 31, 2020 Intangible lease assets: In-place leases and other intangibles, net of accumulated amortization of $140,462 and $132,967, respectively (with a weighted average life remaining of 9.6 years and 9.7 years, respectively) $ 209,676 $ 217,431 Acquired above-market leases, net of accumulated amortization of $22,607 and $22,054, respectively (with a weighted average life remaining of 7.7 years and 7.6 years, respectively) 16,398 17,112 Total intangible lease assets, net $ 226,074 $ 234,543 Intangible lease liabilities: Acquired below-market leases, net of accumulated amortization of $33,341 and $31,933, respectively (both with a weighted average life remaining of 7.5 years) $ 31,414 $ 32,718 |
Schedule of finite-lived intangible assets amortization expense | The following table summarizes the amortization related to the intangible lease assets and liabilities for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 In-place lease and other intangible amortization $ 7,773 $ 5,940 Above-market lease amortization $ 650 $ 908 Below-market lease amortization $ 1,466 $ 1,399 |
Schedule of finite-lived intangible assets, future amortization expense | As of March 31, 2021, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands): Amortization In-Place Leases and Above-Market Leases Below-Market Leases Remainder of 2021 $ 22,301 $ 1,813 $ 4,012 2022 27,702 2,323 4,752 2023 24,509 2,070 4,088 2024 21,314 1,575 3,128 2025 17,534 1,334 2,760 Thereafter 96,316 7,283 12,674 Total $ 209,676 $ 16,398 $ 31,414 |
REAL ESTATE-RELATED SECURITIES
REAL ESTATE-RELATED SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of securities available for sale | The following is a summary of the Company’s real estate-related securities as of March 31, 2021 (in thousands): Real Estate-Related Securities Amortized Cost Basis Unrealized Gain Fair Value CMBS $ 65,953 $ 1,269 $ 67,222 Total real estate-related securities $ 65,953 $ 1,269 $ 67,222 The following table provides the activity for the real estate-related securities during the three months ended March 31, 2021 (in thousands): Amortized Cost Basis Unrealized Gain Fair Value Real estate-related securities as of January 1, 2021 $ 37,047 $ 1,147 $ 38,194 Face value of real estate-related securities acquired 34,491 — 34,491 Premiums and discounts on purchase of real estate-related securities, net of acquisition costs (5,982) — (5,982) Amortization of discount on real estate-related securities 234 — 234 Capitalized interest income on real estate-related securities 173 — 173 Principal payments received on real estate-related securities (10) — (10) Unrealized gain on real estate-related securities — 122 122 Real estate-related securities as of March 31, 2021 $ 65,953 $ 1,269 $ 67,222 The scheduled maturities of the Company’s real estate-related securities as of March 31, 2021 are as follows (in thousands): Available-for-sale securities Amortized Cost Estimated Fair Value Due within one year $ — $ — Due after one year through five years 26,989 27,441 Due after five years through ten years — — Due after ten years 38,964 39,781 Total $ 65,953 $ 67,222 |
LOANS HELD-FOR-INVESTMENT (Tabl
LOANS HELD-FOR-INVESTMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of allowance for financing receivable | The Company’s loans held-for-investment consisted of the following as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands): As of March 31, As of December 31, 2021 2020 Mezzanine loans $ — $ 147,475 Senior loans 525,447 341,546 Total CRE loans held-for-investment and related receivables, net 525,447 489,021 Broadly syndicated loans 496,832 473,603 Loans held-for-investment and related receivables, net $ 1,022,279 $ 962,624 Less: Allowance for credit losses $ (12,888) $ (70,358) Total loans held-for-investment and related receivable, net $ 1,009,391 $ 892,266 The following table details overall statistics for the Company’s loans held-for-investment as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands): CRE Loans (1) (2) Broadly Syndicated Loans March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Number of loans 6 12 221 194 Principal balance $ 530,301 $ 481,438 $ 501,095 $ 477,777 Net book value $ 521,562 $ 428,393 $ 487,829 $ 463,873 Weighted-average interest rate 4.9 % 7.5 % 3.6 % 3.8 % Weighted-average maximum years to maturity 2.6 2.2 5.0 4.9 ____________________________________ (1) As of March 31, 2021, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to U.S. dollar LIBOR. (2) Maximum maturity date assumes all extension options are exercised by the borrower; however, the Company’s CRE loans may be repaid prior to such date. Activity relating to the Company’s loans held-for-investment portfolio was as follows (dollar amounts in thousands): Principal Balance Deferred Fees / Other Items (1) Loan Fees Receivable Net Book Value Balance, December 31, 2020 $ 959,215 $ (74,116) $ 7,167 $ 892,266 Loan originations and acquisitions 268,214 — — 268,214 Cure payments receivable (2) — (7,351) — (7,351) Sale of loans (7,594) 38 — (7,556) Principal repayments received (51,650) — — (51,650) Capitalized interest (2) (9,469) — — (9,469) Deferred fees and other items — (2,461) — (2,461) Accretion and amortization of fees and other items — 584 — 584 Foreclosure of assets (2) (127,320) 3,831 (7,167) (130,656) Allowance for credit losses (3) — 57,470 — 57,470 Balance, March 31, 2021 $ 1,031,396 $ (22,005) $ — $ 1,009,391 ____________________________________ (1) Other items primarily consist of allowance for credit losses (as discussed below), purchase discounts or premiums, accretion of exit fees and deferred origination expenses. (2) During the three months ended March 31, 2021, the Company completed foreclosure of the assets which previously secured its eight mezzanine loans. (3) Includes the reversal of the allowance for credit losses related to the mezzanine loans upon foreclosure of the assets which previously secured the loans, as further discussed below in “Allowance for Credit Losses,” partially offset by the increase in allowance for credit losses related to the Company’s loans held-for-investment during the three months ended March 31, 2021. The following table presents the activity in the Company’s allowance for credit losses by loan type for the three months ended March 31, 2021 (dollar amounts in thousands): Mezzanine Loans Senior Loans Broadly Syndicated Loans Total Allowance for credit losses as of December 31, 2020 $ 58,038 $ 2,590 $ 9,730 $ 70,358 Foreclosure of assets (1) (58,038) — — (58,038) Provision for credit losses — 1,295 (727) 568 Allowance for credit losses as of March 31, 2021 $ — $ 3,885 $ 9,003 $ 12,888 ____________________________________ (1) During the three months ended March 31, 2021, the Company completed foreclosure of the assets which previously secured its eight mezzanine loans. |
Schedule of financing receivable credit quality indicators | The following table presents the net book value of the Company’s loans held-for-investment portfolio as of March 31, 2021 by year of origination, loan type, and risk rating (dollar amounts in thousands): Amortized Cost of Loans Held-For-Investment by Year of Origination (1) As of March 31, 2021 Number of Loans 2021 2020 2019 Total Senior loans by internal risk rating: 1 — — — — — 2 — — — — — 3 6 176,908 232,573 115,966 525,447 4 — — — — — 5 — — — — — Total senior loans 6 176,908 232,573 115,966 525,447 Broadly syndicated loans by internal risk rating: 1 — — — — — 2 3 — 6,906 — 6,906 3 216 64,986 415,232 3,057 483,275 4 2 — 6,651 — 6,651 5 — — — — — Total broadly syndicated loans 221 64,986 428,789 3,057 496,832 Less: Allowance for credit losses (12,888) Total loans held-for-investment and related receivables, net 227 $ 1,009,391 Weighted Average Risk Rating (2) 3.0 ____________________________________ (1) Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table summarizes the terms of the Company’s interest rate swap agreements designated as hedging instruments as of March 31, 2021 and December 31, 2020 (dollar amounts in thousands): Outstanding Notional Fair Value of Liabilities as of Balance Sheet Amount as of Interest Effective Maturity March 31, December 31, Location March 31, 2021 Rates (1) Dates Dates 2021 2020 Interest Rate Swaps Deferred rental income, derivative liabilities and other liabilities $ 273,600 2.55% to 4.50% 6/29/2016 to 5/27/2020 4/5/2021 to 3/27/2023 $ (7,622) $ (12,308) ____________________________________ |
CREDIT FACILITIES, NOTES PAYA_2
CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes the debt balances as of March 31, 2021 and December 31, 2020, and the debt activity for the three months ended March 31, 2021 (in thousands): During the Three Months Ended March 31, 2021 Balance as of December 31, 2020 Debt Issuances & Assumptions (1) Repayments & Modifications Accretion and (Amortization) Balance as of Notes payable – fixed rate debt $ 578,096 $ — $ (243) $ — $ 577,853 Notes payable – variable rate debt — 102,553 — — 102,553 Credit facilities 1,336,500 160,000 (85,000) — 1,411,500 Repurchase facilities 235,380 122,323 (55) — 357,648 Total debt 2,149,976 384,876 (85,298) — 2,449,554 Net premiums (2) 149 — — (23) 126 Deferred costs – credit facility (3) (3,543) — — 733 (2,810) Deferred costs – fixed rate debt (1,589) — — 586 (1,003) Deferred costs – variable rate debt — (621) — — (621) Total debt, net $ 2,144,993 $ 384,255 $ (85,298) $ 1,296 $ 2,445,246 ____________________________________ (1) Includes deferred financing costs incurred during the period. (2) Net premiums on mortgage notes payable were recorded upon the assumption of the respective debt instruments. Amortization of these net premiums is recorded as a reduction to interest expense over the remaining term of the respective debt instruments using the effective-interest method. |
Schedule of maturities of long-term debt | The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to March 31, 2021 (in thousands): Principal Repayments Remainder of 2021 $ 240,520 2022 1,184,391 2023 677,051 2024 347,592 2025 — Thereafter — Total $ 2,449,554 |
SUPPLEMENTAL CASH FLOW DISCLO_2
SUPPLEMENTAL CASH FLOW DISCLOSURES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental cash flow disclosures | Supplemental cash flow disclosures for the three months ended March 31, 2021 and 2020 are as follows (in thousands): Three Months Ended March 31, 2021 2020 Supplemental Disclosures of Non-Cash Investing and Financing Activities: Distributions declared and unpaid $ 10,969 $ 16,463 Accrued capital expenditures $ 1,412 $ 87 Accrued deferred financing costs $ 417 $ 8 Real estate acquired via foreclosure $ 191,990 $ — Foreclosure of assets securing the mezzanine loans $ (79,968) $ — Mortgage notes payable assumed in connection with foreclosure of assets securing the mezzanine loans $ 102,553 $ — Change in interest income capitalized to loans held-for-investment $ (9,469) $ 539 Common stock issued through distribution reinvestment plan $ — $ 19,231 Change in fair value of interest rate swaps $ 4,686 $ (9,823) Change in fair value of real estate-related securities $ 122 $ — Supplemental Cash Flow Disclosures: Interest paid $ 18,493 $ 15,665 Cash paid for taxes $ 739 $ 138 |
RELATED-PARTY TRANSACTIONS AN_2
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The Company recorded fees and expense reimbursements as shown in the table below for services provided by CMFT Management or its affiliates related to the services described above during the periods indicated (in thousands): Three Months Ended March 31, 2021 2020 Management fees and expenses $ 13,014 $ 11,090 Acquisition fees and expenses $ 181 $ 127 Disposition fees $ — $ 341 Operating expenses $ 1,043 $ 810 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of future minimum rental income for operating leases - ASC 842 | As of March 31, 2021, the future minimum rental income from the Company’s real estate assets under non-cancelable operating leases, assuming no exercise of renewal options for the succeeding five fiscal years and thereafter, was as follows (in thousands): Future Minimum Rental Income Remainder of 2021 $ 191,931 2022 248,096 2023 231,349 2024 212,216 2025 193,595 Thereafter 1,245,868 Total $ 2,323,055 |
Schedule of components of lease income | Rental and other property income during the three months ended March 31, 2021 and 2020 consisted of the following (in thousands): Three Months Ended March 31, 2021 2020 Fixed rental and other property income (1) $ 66,541 $ 56,673 Variable rental and other property income (2) 10,389 11,763 Total rental and other property income $ 76,930 $ 68,436 __________________________________ (1) Consists primarily of fixed contractual payments from operating leases with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above- and below-market leases, and is net of uncollectible lease-related receivables. (2) Consists primarily of tenant reimbursements for recoverable real estate taxes and property operating expenses, and percentage rent. |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment information | The following tables present segment reporting for the three months ended March 31, 2021 and 2020 (in thousands): Real Estate Credit Corporate/Other (1) Company Total Three Months Ended March 31, 2021 Rental and other property income $ 76,794 $ — $ 136 $ 76,930 Interest income — 11,953 — 11,953 Total revenues 76,794 11,953 136 88,883 General and administrative 64 376 5,031 5,471 Property operating 8,523 — 1,596 10,119 Real estate tax 7,869 — 4,350 12,219 Management and advisory fees and expenses 9,331 2,246 1,437 13,014 Transaction-related 4 — 181 185 Depreciation and amortization 25,738 — — 25,738 Real estate impairment 4,300 — — 4,300 Provision for credit losses — 568 — 568 Total operating expenses 55,829 3,190 12,595 71,614 Operating income (loss) 20,965 8,763 (12,459) 17,269 Other expense: Interest expense and other, net (4,116) (3,547) (12,359) (20,022) Segment net income (loss) $ 16,849 $ 5,216 $ (24,818) $ (2,753) Total assets as of March 31, 2021 $ 3,371,496 $ 1,155,640 $ 194,718 $ 4,721,854 __________________________________ (1) Includes 75 condominium units and 21 rental units acquired via foreclosure during the three months ended March 31, 2021. During the year ended December 31, 2019, the borrower on the Company’s eight mezzanine loans became delinquent on certain required reserve payments. Throughout 2020, the borrower remained delinquent on the required reserve payments and became delinquent on principal and interest. As a result, the Company classified the loans as a troubled debt restructuring and commenced foreclosure proceedings. Upon completing foreclosure in January 2021, The Company took control of the assets which previously secured its mezzanine loans. Real Estate Credit Corporate/Other Company Total Three Months Ended March 31, 2020 Rental and other property income $ 68,436 $ — $ — $ 68,436 Interest income — 5,571 — 5,571 Total revenues 68,436 5,571 — 74,007 General and administrative 62 12 3,608 3,682 Property operating 6,865 — — 6,865 Real estate tax 6,978 — — 6,978 Management and advisory fees and expenses 7,981 1,869 1,240 11,090 Transaction-related 125 — 127 252 Depreciation and amortization 20,823 — — 20,823 Real estate impairment 11,676 — — 11,676 Provision for credit losses — 17,777 — 17,777 Total operating expenses 54,510 19,658 4,975 79,143 Gain on disposition of real estate, net 13,110 — — 13,110 Operating income (loss) 27,036 (14,087) (4,975) 7,974 Other expense: Interest expense and other, net (6,335) 200 (9,632) (15,767) Loss on extinguishment of debt (4,382) — — (4,382) Segment net income (loss) $ 16,319 $ (13,887) $ (14,607) $ (12,175) Total assets as of March 31, 2020 $ 2,749,026 $ 627,479 $ 224,187 $ 3,600,692 |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details) $ / shares in Units, ft² in Millions | Jan. 07, 2021apartmentUnitbuilding | Apr. 04, 2014shares | Mar. 31, 2021USD ($)ft²loanapartmentUnitstatebuildingproperty$ / sharesshares | Dec. 31, 2019loan | Dec. 31, 2020USD ($)shares | Aug. 14, 2020$ / shares | Aug. 02, 2016USD ($) | Jun. 30, 2016USD ($)shares | Dec. 19, 2013USD ($) | Jan. 26, 2012USD ($) |
Organization and Business [Line Items] | ||||||||||
Number of owned properties | property | 515 | |||||||||
Rentable square feet (sqft) | ft² | 21.3 | |||||||||
Number of states in which entity owns properties | state | 45 | |||||||||
Percentage of rentable space leased | 93.70% | |||||||||
Number of loans | loan | 227 | |||||||||
Net book value | $ 1,009,391,000 | $ 892,266,000 | ||||||||
Real estate-related securities | $ 67,222,000 | $ 38,194,000 | ||||||||
Common stock, shares issued (shares) | shares | 297,400,000 | 362,001,968 | 362,001,968 | |||||||
Shares deregistered (shares) | shares | 404,000 | |||||||||
Net asset value per share (USD per share) | $ / shares | $ 7.31 | |||||||||
Mezzanine Loans | ||||||||||
Organization and Business [Line Items] | ||||||||||
Net book value | $ 0 | |||||||||
Number of loans | loan | 8 | 8 | ||||||||
Condominium Units | Foreclosure Of Mezzanine Loans | Consolidated Properties | ||||||||||
Organization and Business [Line Items] | ||||||||||
Number of real estate properties secured through foreclosure | apartmentUnit | 75 | 75 | ||||||||
Rental Unit | Foreclosure Of Mezzanine Loans | Consolidated Properties | ||||||||||
Organization and Business [Line Items] | ||||||||||
Number of real estate properties secured through foreclosure | apartmentUnit | 21 | 21 | ||||||||
Buildings | Foreclosure Of Mezzanine Loans | ||||||||||
Organization and Business [Line Items] | ||||||||||
Number of real estate properties secured through foreclosure | building | 4 | 4 | ||||||||
IPO | ||||||||||
Organization and Business [Line Items] | ||||||||||
Common stock, shares authorized, value (maximum) | $ 2,975,000,000 | |||||||||
Common stock, shares issued (shares) | shares | 292,300,000 | |||||||||
DRIP | ||||||||||
Organization and Business [Line Items] | ||||||||||
Common stock, shares issued (shares) | shares | 5,100,000 | 241,700,000 | ||||||||
Common stock shares registered dividend reinvestment plan, value | $ 600,000,000 | $ 247,000,000 | ||||||||
Remaining unsold common stock | $ 5,300,000 | |||||||||
Share price (USD per share) | $ / shares | $ 7.31 | |||||||||
CIM Real Estate Finance Operating Partnership, LP | ||||||||||
Organization and Business [Line Items] | ||||||||||
General partner partnership interest percentage | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounting Policies [Abstract] | ||
Provision for credit losses | $ 1,800 | $ 636 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Real Estate Assets (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Buildings | |
Real Estate Properties [Line Items] | |
Useful life | 40 years |
Site improvements | |
Real Estate Properties [Line Items] | |
Useful life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recoverability of Real Estate Assets (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)property | Mar. 31, 2020USD ($)property | |
Real Estate [Line Items] | ||
Impairment of real estate assets | $ | $ 4,300 | $ 11,676 |
Number of properties impaired | 5 | 7 |
Revised Expected Holding Properties | ||
Real Estate [Line Items] | ||
Number of properties | 3 | 6 |
Vacant | ||
Real Estate [Line Items] | ||
Number of properties | 2 | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets Held for Sale (Details) | 1 Months Ended | 3 Months Ended | ||
May 14, 2021USD ($)property | Mar. 31, 2021USD ($)property | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)property | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Number of real estate property held for sale | property | 2 | 1 | ||
Assets held for sale | $ 31,200,000 | $ 3,500,000 | ||
Gain (loss) on disposition of real estate assets | $ 0 | $ 13,110,000 | ||
Subsequent event | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Mortgage notes payable | $ 21,900,000 | |||
Number of real estate properties, held for sale, related to mortgage notes payable | property | 1 | |||
Gain (loss) on disposition of real estate assets | $ 824,000 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 20,372 | $ 7,023 | $ 4,204 |
Restricted cash, held by lenders in lockbox accounts | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 4,000 | 3,600 | |
Restricted cash, held by lenders in escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 16,400 | $ 3,400 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Real Estate-Related Securities (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)investment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Real estate-related securities | $ 67,222 | $ 38,194 | |
Interest income | 11,953 | $ 5,571 | |
Capitalized interest income on real estate-related securities | 173 | $ 0 | |
CMBS | |||
Debt Securities, Available-for-sale [Line Items] | |||
Net investments in debt securities | $ 28,500 | ||
Number of debt instruments | investment | 5 | ||
Real estate-related securities | $ 67,222 | $ 38,194 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Held-for-Investments (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Interest income | $ 11,953,000 | $ 5,571,000 | |
Capitalized to held for investment | $ 539,000 | ||
Loans receivable, net amount | 1,009,391,000 | $ 892,266,000 | |
Mezzanine Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans receivable, net amount | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Credit Losses (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit losses | $ 12,888,000 | $ 70,358,000 | $ 0 | |
Cumulative Effect, Period Of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Allowance for credit losses | $ 2,000,000 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) - ASU 2016-02 - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability | $ 2.4 | $ 2.4 | $ 2.4 |
Right-of-use asset | $ 2.4 | $ 2.4 | $ 2.4 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Development Activities (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2020 |
Accounting Policies [Abstract] | ||
Capitalized interest expense in development project | $ 514,000 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Accounts receivable write off | $ 1,800 | $ 636 |
Straight-Line Rent | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable write off | 29 | |
Tenant Reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Accounts receivable write off | $ 1,100 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segment (Details) - segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Number of reportable segments | 2 | 2 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | May 06, 2021 | Sep. 30, 2020 | Mar. 31, 2021 |
Unusual or Infrequent Item, or Both [Line Items] | |||
Rent deferral request granted | $ 427 | ||
Allowance increase | $ 427 | ||
Additional granted rental abatements | 13 | ||
Granted rent abatements | 235 | ||
Rent deferral due to lease term adjustment | $ 5 | ||
Subsequent event | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Percent of rental payments collected | 98.00% | ||
Minimum | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Lease amendment extension term | 12 months | ||
Maximum | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Lease amendment extension term | 63 months |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)property | Mar. 31, 2020USD ($)property | Dec. 31, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of properties impaired | property | 5 | 7 | |
Impairment of real estate assets | $ 4,300 | $ 11,676 | |
Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 1,030,000 | $ 907,800 | |
Real estate investment property, net, carrying value of impaired property | 31,300 | 52,600 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 1,010,000 | 892,300 | |
Real estate investment property, net, carrying value of impaired property | 35,600 | $ 64,300 | |
Level 2 | Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value disclosure | 2,450,000 | 2,140,000 | |
Level 2 | Estimate of Fair Value Measurement | Broadly Syndicated Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 389,700 | 359,600 | |
Level 2 | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value disclosure | 2,450,000 | 2,150,000 | |
Level 3 | Estimate of Fair Value Measurement | Broadly Syndicated Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 107,600 | 114,100 | |
Fair value, measurements, recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of CMBS | 67,222 | 38,194 | |
Fair value, measurements, recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of CMBS | 27,441 | 27,461 | |
Fair value, measurements, recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of CMBS | $ 39,781 | $ 10,733 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
CMBS | $ 67,222 | $ 38,194 |
Total financial assets | 67,222 | 38,194 |
Financial liabilities: | ||
Interest rate swaps | (12,308) | |
Total financial liabilities | (7,622) | (12,308) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
CMBS | 0 | 0 |
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Interest rate swaps | 0 | |
Total financial liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
CMBS | 27,441 | 27,461 |
Total financial assets | 27,441 | 27,461 |
Financial liabilities: | ||
Interest rate swaps | (12,308) | |
Total financial liabilities | (7,622) | (12,308) |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
CMBS | 39,781 | 10,733 |
Total financial assets | 39,781 | 10,733 |
Financial liabilities: | ||
Interest rate swaps | 0 | |
Total financial liabilities | 0 | $ 0 |
Interest rate swaps | ||
Financial liabilities: | ||
Interest rate swaps | (7,622) | |
Interest rate swaps | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial liabilities: | ||
Interest rate swaps | 0 | |
Interest rate swaps | Significant Other Observable Inputs (Level 2) | ||
Financial liabilities: | ||
Interest rate swaps | (7,622) | |
Interest rate swaps | Significant Unobservable Inputs (Level 3) | ||
Financial liabilities: | ||
Interest rate swaps | $ 0 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Level 3 Reconciliation (Details) - CMBS $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance, January 1, 2021 | $ 10,733 |
Total gains and losses: | |
Unrealized loss included in other comprehensive income, net | 70 |
Purchases and payments received: | |
Purchases | 34,491 |
Discounts, net | (5,676) |
Capitalized interest income | 173 |
Principal payments received | (10) |
Ending Balance, March 31, 2021 | $ 39,781 |
FAIR VALUE MEASUREMENTS - Disco
FAIR VALUE MEASUREMENTS - Discount Rates and Terminal Capitalization Rates (Details) | Mar. 31, 2021 |
Minimum | Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 7.90% |
Minimum | Terminal Capitalization Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 7.40% |
Maximum | Discount Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 9.70% |
Maximum | Terminal Capitalization Rate | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Discount rate | 9.20% |
FAIR VALUE MEASUREMENTS - Impai
FAIR VALUE MEASUREMENTS - Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | $ 4,300 | $ 11,676 |
Land | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | 768 | 2,925 |
Buildings, fixtures and improvements | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | 3,434 | 8,264 |
Intangible lease assets | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | 225 | 497 |
Intangible lease liabilities | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of intangible lease liability | $ (127) | $ (10) |
REAL ESTATE ASSETS - Property A
REAL ESTATE ASSETS - Property Acquisition (Details) - property | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commercial property | ||
Real Estate [Line Items] | ||
Number of properties acquired | 0 | 0 |
REAL ESTATE ASSETS - Assets Acq
REAL ESTATE ASSETS - Assets Acquired Via Foreclosure (Details) $ in Thousands | Jan. 07, 2021apartmentUnitbuilding | Mar. 31, 2021USD ($)loanapartmentUnitbuildingland_parcel | Dec. 31, 2019loan | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Real Estate [Line Items] | |||||
Outstanding debt | $ | $ 2,449,554 | $ 2,149,976 | |||
Variable rate debt | |||||
Real Estate [Line Items] | |||||
Outstanding debt | $ | $ 102,553 | $ 102,600 | $ 0 | ||
Mezzanine Loans | |||||
Real Estate [Line Items] | |||||
Number of loans | loan | 8 | 8 | |||
Condominium Units | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||||
Real Estate [Line Items] | |||||
Number of real estate properties secured through foreclosure | apartmentUnit | 75 | 75 | |||
Rental Unit | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||||
Real Estate [Line Items] | |||||
Number of real estate properties secured through foreclosure | apartmentUnit | 21 | 21 | |||
Buildings | Foreclosure Of Mezzanine Loans | |||||
Real Estate [Line Items] | |||||
Number of real estate properties secured through foreclosure | building | 4 | 4 | |||
Land | Foreclosure Of Mezzanine Loans | |||||
Real Estate [Line Items] | |||||
Number of real estate properties secured through foreclosure | land_parcel | 0 |
REAL ESTATE ASSETS - Purchase P
REAL ESTATE ASSETS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate [Line Items] | ||
Buildings, fixtures and improvements | $ 2,463,130 | $ 2,490,030 |
Intangible lease assets | 389,004 | 389,564 |
Total real estate assets, at cost | 3,927,775 | $ 3,761,490 |
Foreclosure Of Mezzanine Loans | ||
Real Estate [Line Items] | ||
Buildings, fixtures and improvements | 192,182 | |
Total real estate assets, at cost | 191,990 | |
Acquired in-place leases and other intangibles | Foreclosure Of Mezzanine Loans | ||
Real Estate [Line Items] | ||
Intangible lease assets | 134 | |
Intangible lease liabilities | Foreclosure Of Mezzanine Loans | ||
Real Estate [Line Items] | ||
Intangible lease liabilities | $ (326) |
REAL ESTATE ASSETS - Condominiu
REAL ESTATE ASSETS - Condominium Development Project (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate [Line Items] | ||
Condominium developments | $ 201,031 | $ 0 |
Condominium Units | ||
Real Estate [Line Items] | ||
Condominium developments | $ 1,500 |
REAL ESTATE ASSETS - Property D
REAL ESTATE ASSETS - Property Dispositions and Real Estate Assets Held for Sale (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)property | Mar. 31, 2020USD ($)property | Dec. 31, 2020USD ($)property | |
Real Estate [Line Items] | |||
Proceeds from disposition of properties | $ 3,511 | $ 126,645 | |
Number of real estate property held for sale | property | 2 | 1 | |
Assets held for sale | $ 31,200 | $ 3,500 | |
Gain (loss) on sale of properties | $ 0 | $ 13,110 | |
Properties sold | Property Disposition 2021 | |||
Real Estate [Line Items] | |||
Number of properties disposed | property | 1 | ||
Aggregate gross sales price | $ 3,700 | ||
Proceeds from disposition of properties | $ 3,500 | ||
Properties sold | Property Disposition 2020 | |||
Real Estate [Line Items] | |||
Number of properties disposed | property | 12 | ||
Aggregate gross sales price | $ 129,000 | ||
Proceeds from disposition of properties | 126,600 | ||
Gain (loss) on sale of properties | $ 13,100 | ||
Properties sold | Property Disposition 2020 | Retail property | |||
Real Estate [Line Items] | |||
Number of properties disposed | property | 9 | ||
Properties sold | Property Disposition 2020 | Anchored shopping center | |||
Real Estate [Line Items] | |||
Number of properties disposed | property | 3 |
REAL ESTATE ASSETS - Impairment
REAL ESTATE ASSETS - Impairment (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)ft²property | Mar. 31, 2020USD ($)ft²property | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of properties impaired | property | 5 | 7 |
Area of real estate property impaired (sq ft) | ft² | 165 | 414 |
Impairment of real estate assets | $ 4,300 | $ 11,676 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate asset deemed to be impaired | 35,600 | 64,300 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate asset deemed to be impaired | $ 31,300 | $ 52,600 |
INTANGIBLE LEASE ASSETS AND L_3
INTANGIBLE LEASE ASSETS AND LIABILITIES - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Intangible lease assets: | ||
Intangible leased assets | $ 226,074 | $ 234,543 |
Intangible lease liabilities: | ||
Below market leases net of amortization | 31,414 | 32,718 |
Below market lease, accumulated amortization | $ 33,341 | $ 31,933 |
Below market lease, weighted average useful life | 7 years 6 months | 7 years 6 months |
In-place leases and other intangibles | ||
Intangible lease assets: | ||
Intangible leased assets | $ 209,676 | $ 217,431 |
Accumulated amortization | $ 140,462 | $ 132,967 |
Useful life | 9 years 7 months 6 days | 9 years 8 months 12 days |
Acquired above-market leases | ||
Intangible lease assets: | ||
Intangible leased assets | $ 16,398 | $ 17,112 |
Accumulated amortization | $ 22,607 | $ 22,054 |
Useful life | 7 years 8 months 12 days | 7 years 7 months 6 days |
INTANGIBLE LEASE ASSETS AND L_4
INTANGIBLE LEASE ASSETS AND LIABILITIES - Schedule of Finite-Lived Intangible Assets Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Below-market lease amortization | $ 1,466 | $ 1,399 |
In-place lease and other intangible amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | 7,773 | 5,940 |
Above-market lease amortization | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 650 | $ 908 |
INTANGIBLE LEASE ASSETS AND L_5
INTANGIBLE LEASE ASSETS AND LIABILITIES - Estimated Amortization of Intangible Lease Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases | ||
Total | $ 226,074 | $ 234,543 |
Amortization, Below-Market Leases | ||
Remainder of 2021 | 4,012 | |
2022 | 4,752 | |
2023 | 4,088 | |
2024 | 3,128 | |
2025 | 2,760 | |
Thereafter | 12,674 | |
Total | 31,414 | 32,718 |
In-Place Leases and Other Intangibles | ||
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases | ||
Remainder of 2021 | 22,301 | |
2022 | 27,702 | |
2023 | 24,509 | |
2024 | 21,314 | |
2025 | 17,534 | |
Thereafter | 96,316 | |
Total | 209,676 | 217,431 |
Above-Market Leases | ||
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases | ||
Remainder of 2021 | 1,813 | |
2022 | 2,323 | |
2023 | 2,070 | |
2024 | 1,575 | |
2025 | 1,334 | |
Thereafter | 7,283 | |
Total | $ 16,398 | $ 17,112 |
REAL ESTATE-RELATED SECURITIE_2
REAL ESTATE-RELATED SECURITIES - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)investment | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||
Real estate-related securities | $ 67,222,000 | $ 38,194,000 |
Credit losses | $ 0 | |
CMBS | ||
Debt Instrument [Line Items] | ||
Number of debt instruments | investment | 5 | |
Real estate-related securities | $ 67,222,000 | $ 38,194,000 |
Net investments in debt securities | 28,500,000 | |
Unrealized gain on real estate-related securities | $ 122,000 | |
Minimum | CMBS | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.00% | |
Maximum | CMBS | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 13.00% |
REAL ESTATE-RELATED SECURITIE_3
REAL ESTATE-RELATED SECURITIES - Summary of Real Estate Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 65,953 | |
Unrealized Gain | 1,269 | |
Fair Value | 67,222 | $ 38,194 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 65,953 | 37,047 |
Unrealized Gain | 1,269 | 1,147 |
Fair Value | $ 67,222 | $ 38,194 |
REAL ESTATE-RELATED SECURITIE_4
REAL ESTATE-RELATED SECURITIES - Activity for the Real Estate-Related Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Amortized Cost Basis | ||
Capitalized interest income on real estate-related securities | $ 173 | $ 0 |
Real estate-related securities as of March 31, 2021 | 65,953 | |
Unrealized Gain | ||
Real estate-related securities as of March 31, 2021 | 1,269 | |
Fair Value | ||
Real estate-related securities as of January 1, 2021 | 38,194 | |
Capitalized interest income on real estate-related securities | 173 | $ 0 |
Real estate-related securities as of March 31, 2021 | 67,222 | |
CMBS | ||
Amortized Cost Basis | ||
Real estate-related securities as of January 1, 2021 | 37,047 | |
Face value of real estate-related securities acquired | 34,491 | |
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs | (5,982) | |
Amortization of discount on real estate-related securities | 234 | |
Principal payments received on real estate-related securities | (10) | |
Real estate-related securities as of March 31, 2021 | 65,953 | |
Unrealized Gain | ||
Real estate-related securities as of January 1, 2021 | 1,147 | |
Unrealized gain on real estate-related securities | 122 | |
Real estate-related securities as of March 31, 2021 | 1,269 | |
Fair Value | ||
Real estate-related securities as of January 1, 2021 | 38,194 | |
Face value of real estate-related securities acquired | 34,491 | |
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs | (5,982) | |
Amortization of discount on real estate-related securities | 234 | |
Principal payments received on real estate-related securities | (10) | |
Unrealized gain on real estate-related securities | 122 | |
Real estate-related securities as of March 31, 2021 | $ 67,222 |
REAL ESTATE-RELATED SECURITIE_5
REAL ESTATE-RELATED SECURITIES - The Scheduled Maturities of Real Estate-Related Securities (Details) - CMBS $ in Thousands | Mar. 31, 2021USD ($) |
Available-for-sale securities, Amortized Cost | |
Due within one year | $ 0 |
Due after one year through five years | 26,989 |
Due after five years through ten years | 0 |
Due after ten years | 38,964 |
Total | 65,953 |
Available-for-sale securities, Estimated Fair Value | |
Due within one year | 0 |
Due after one year through five years | 27,441 |
Due after five years through ten years | 0 |
Due after ten years | 39,781 |
Total | $ 67,222 |
LOANS HELD-FOR-INVESTMENT - Sch
LOANS HELD-FOR-INVESTMENT - Schedule of Loans Held for Investment (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held-for-investment and related receivables, net | $ 1,022,279,000 | $ 962,624,000 | |
Less: Allowance for credit losses | (12,888,000) | (70,358,000) | $ 0 |
Total loans held-for-investment and related receivables, net | 1,009,391,000 | 892,266,000 | |
Mezzanine Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held-for-investment and related receivables, net | 0 | 147,475,000 | |
Less: Allowance for credit losses | 0 | (58,038,000) | |
Total loans held-for-investment and related receivables, net | 0 | ||
Senior Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held-for-investment and related receivables, net | 525,447,000 | 341,546,000 | |
Less: Allowance for credit losses | (3,885,000) | (2,590,000) | |
Total CRE loans held-for-investment and related receivables, net | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held-for-investment and related receivables, net | 525,447,000 | 489,021,000 | |
Total loans held-for-investment and related receivables, net | 521,562,000 | 428,393,000 | |
Broadly Syndicated Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held-for-investment and related receivables, net | 496,832,000 | 473,603,000 | |
Less: Allowance for credit losses | (9,003,000) | (9,730,000) | |
Total loans held-for-investment and related receivables, net | $ 487,829,000 | $ 463,873,000 |
LOANS HELD-FOR-INVESTMENT - Nar
LOANS HELD-FOR-INVESTMENT - Narrative (Details) $ in Thousands | Jan. 07, 2021apartmentUnitbuilding | Mar. 31, 2021USD ($)loanbuildingapartmentUnit | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Sale | $ (7,594) | ||||
Proceeds from sale of broadly syndicated loans | 7,445 | $ 0 | |||
Loss on sale of broadly syndicated loans | 111 | ||||
Cash and cash equivalents | 77,922 | 245,076 | $ 473,355 | $ 128,408 | |
Foreclosure of assets | (58,038) | ||||
Increase (decrease) in provision for credit losses | 568 | 17,777 | |||
Provision for credit losses | 568 | $ 17,777 | |||
Unfunded Loan Commitment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other commitment | 64,400 | ||||
Reserves For Settlement Of Loan Acquisitions | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Cash and cash equivalents | 34,500 | ||||
Broadly Syndicated Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net book value | (82,100) | ||||
Principle payment received | 51,600 | ||||
Foreclosure of assets | 0 | ||||
Increase (decrease) in provision for credit losses | $ (727) | ||||
Mezzanine Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | loan | 8 | 8 | |||
Foreclosure of assets | $ (58,038) | ||||
Increase (decrease) in provision for credit losses | 0 | ||||
Provision for credit losses | $ 12,900 | ||||
Foreclosure Of Mezzanine Loans | Condominium Units | Consolidated Properties | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of real estate properties secured through foreclosure | apartmentUnit | 75 | 75 | |||
Foreclosure Of Mezzanine Loans | Rental Unit | Consolidated Properties | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of real estate properties secured through foreclosure | apartmentUnit | 21 | 21 | |||
Foreclosure Of Mezzanine Loans | Buildings | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of real estate properties secured through foreclosure | building | 4 | 4 | |||
Senior Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Foreclosure of assets | $ 0 | ||||
Increase (decrease) in provision for credit losses | $ 1,295 |
LOANS HELD-FOR-INVESTMENT - Sta
LOANS HELD-FOR-INVESTMENT - Statistics (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 227 | |
Net book value | $ 1,009,391 | $ 892,266 |
Loans receivable with variable rate of interest | 100.00% | |
CRE Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 6 | 12 |
Principal balance | $ 530,301 | $ 481,438 |
Net book value | $ 521,562 | $ 428,393 |
Weighted-average interest rate | 4.90% | 7.50% |
Weighted-average maximum years to maturity | 2 years 7 months 6 days | 2 years 2 months 12 days |
Broadly Syndicated Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 221 | 194 |
Principal balance | $ 501,095 | $ 477,777 |
Net book value | $ 487,829 | $ 463,873 |
Weighted-average interest rate | 3.60% | 3.80% |
Weighted-average maximum years to maturity | 5 years | 4 years 10 months 24 days |
LOANS HELD-FOR-INVESTMENT - Act
LOANS HELD-FOR-INVESTMENT - Activity (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)loan | Dec. 31, 2019loan | |
Loans Held-for-Investment [Roll Forward] | ||
Beginning Balance, Principal Balance | $ 959,215,000 | |
Beginning Balance, Deferred Fees/Other Items | (74,116,000) | |
Beginning Balance, Loan Fees Receivable | 7,167,000 | |
Beginning Balance, Net Book Value | 892,266,000 | |
Loan originations and acquisitions | 268,214,000 | |
Cure payments receivable | (7,351,000) | |
Sale of loans, Principal Balance | (7,594,000) | |
Sale of loans, Deferred Fees/Other Items | 38,000 | |
Sale of loans, Net Book Value | (7,556,000) | |
Principal repayments received | (51,650,000) | |
Capitalized interest | (9,469,000) | |
Deferred fees and other items | (2,461,000) | |
Accretion and amortization of fees and other items | 584,000 | |
Foreclosure of mezzanine loans, Principal Balance | (127,320,000) | |
Foreclosure of mezzanine loans, Deferred Fees And Other Items | 3,831,000 | |
Foreclosure of mezzanine loans, Loan Fees Receivable | (7,167,000) | |
Foreclosure of mezzanine loans, Net Book Value | (130,656,000) | |
Allowance for credit loss and other items | 57,470,000 | |
Ending Balance, Principal Balance | 1,031,396,000 | |
Ending Balance, Deferred Fees/Other Items | (22,005,000) | |
Ending Balance, Loan Fees Receivable | 0 | |
Ending Balance, Net Book Value | 1,009,391,000 | |
Mezzanine Loans | ||
Loans Held-for-Investment [Roll Forward] | ||
Ending Balance, Net Book Value | $ 0 | |
Number of loans | loan | 8 | 8 |
LOANS HELD-FOR-INVESTMENT - All
LOANS HELD-FOR-INVESTMENT - Allowance for Financing Receivable (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)loan | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses as of beginning of the period | $ 70,358,000 | $ 0 | |
Foreclosure of assets | (58,038,000) | ||
Provision for credit losses | 568,000 | $ 17,777,000 | |
Allowance for credit losses end of period | 12,888,000 | $ 0 | |
Mezzanine Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses as of beginning of the period | 58,038,000 | ||
Foreclosure of assets | (58,038,000) | ||
Provision for credit losses | 0 | ||
Allowance for credit losses end of period | $ 0 | ||
Number of loans | loan | 8 | 8 | |
Senior Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses as of beginning of the period | $ 2,590,000 | ||
Foreclosure of assets | 0 | ||
Provision for credit losses | 1,295,000 | ||
Allowance for credit losses end of period | 3,885,000 | ||
Broadly Syndicated Loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit losses as of beginning of the period | 9,730,000 | ||
Foreclosure of assets | 0 | ||
Provision for credit losses | (727,000) | ||
Allowance for credit losses end of period | $ 9,003,000 |
LOANS HELD-FOR-INVESTMENT - S_2
LOANS HELD-FOR-INVESTMENT - Schedule Of Primary Credit Quality Indicator (Details) | Mar. 31, 2021USD ($)state | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 227 | ||
Loans held-for-investment and related receivables, net | $ 1,022,279,000 | $ 962,624,000 | |
Less: Allowance for credit losses | (12,888,000) | (70,358,000) | $ 0 |
Total loans held-for-investment and related receivables, net | $ 1,009,391,000 | 892,266,000 | |
Weighted Average Risk Rating | 3 | ||
Senior Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 6 | ||
2021 | $ 176,908,000 | ||
2020 | 232,573,000 | ||
2019 | 115,966,000 | ||
Loans held-for-investment and related receivables, net | 525,447,000 | 341,546,000 | |
Less: Allowance for credit losses | $ (3,885,000) | (2,590,000) | |
Senior Loans | 1 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 0 | ||
2021 | $ 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 0 | ||
Senior Loans | 2 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 0 | ||
2021 | $ 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 0 | ||
Senior Loans | 3 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 6 | ||
2021 | $ 176,908,000 | ||
2020 | 232,573,000 | ||
2019 | 115,966,000 | ||
Loans held-for-investment and related receivables, net | $ 525,447,000 | ||
Senior Loans | 4 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 0 | ||
2021 | $ 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 0 | ||
Senior Loans | 5 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 0 | ||
2021 | $ 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 0 | ||
Broadly Syndicated Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 221 | ||
2021 | $ 64,986,000 | ||
2020 | 428,789,000 | ||
2019 | 3,057,000 | ||
Loans held-for-investment and related receivables, net | 496,832,000 | 473,603,000 | |
Less: Allowance for credit losses | (9,003,000) | (9,730,000) | |
Total loans held-for-investment and related receivables, net | $ 487,829,000 | $ 463,873,000 | |
Broadly Syndicated Loans | 1 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 0 | ||
2021 | $ 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 0 | ||
Broadly Syndicated Loans | 2 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 3 | ||
2021 | $ 0 | ||
2020 | 6,906,000 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 6,906,000 | ||
Broadly Syndicated Loans | 3 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 216 | ||
2021 | $ 64,986,000 | ||
2020 | 415,232,000 | ||
2019 | 3,057,000 | ||
Loans held-for-investment and related receivables, net | $ 483,275,000 | ||
Broadly Syndicated Loans | 4 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 2 | ||
2021 | $ 0 | ||
2020 | 6,651,000 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 6,651,000 | ||
Broadly Syndicated Loans | 5 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of Loans | state | 0 | ||
2021 | $ 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Loans held-for-investment and related receivables, net | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)derivativeswap_agreement | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Derivatives, Fair Value [Line Items] | |||
Amount of gain (loss) reclassified from other comprehensive income (loss) into income as interest expense and other, net | $ (3,132) | $ (977) | |
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | $ 82 | ||
Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments terminated | swap_agreement | 1 | ||
Number of interest rate derivatives held | derivative | 4 | ||
Total unrealized gain (loss) on interest rate swap | $ 61 | $ (3,200) | |
Interest Rate Swap | Cash Flow Hedging | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability, event of default, termination amount | $ 7,700 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - Interest rate swaps - Cash Flow Hedging - Deferred rental income, derivative liabilities and other liabilities - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Outstanding Notional Amount | $ 273,600 | |
Fair Value of Liabilities | $ (7,622) | $ (12,308) |
Minimum | ||
Derivative [Line Items] | ||
Interest Rates | 2.55% | |
Maximum | ||
Derivative [Line Items] | ||
Interest Rates | 4.50% |
CREDIT FACILITIES, NOTES PAYA_3
CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES - Narrative (Details) | Dec. 21, 2020USD ($) | Jun. 04, 2020USD ($)extension | Mar. 31, 2021USD ($)loanextensionstate | May 14, 2021USD ($) | Jan. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Credit facilities, notes payable and repurchase facilities, net | $ 2,445,246,000 | $ 2,144,993,000 | |||||
Weighted average years to maturity | 1 year 7 months 6 days | ||||||
Weighted average interest rate (percent) | 2.80% | ||||||
Outstanding debt | $ 2,449,554,000 | 2,149,976,000 | |||||
Number of extensions | extension | 1 | ||||||
Term of extensions | 12 months | ||||||
Number of Loans | state | 227 | ||||||
Loans held-for-investment and related receivables, net | $ 1,022,279,000 | 962,624,000 | |||||
Reinvestment Period | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.70% | ||||||
Amortization Period | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.00% | ||||||
Senior Loans | |||||||
Debt Instrument [Line Items] | |||||||
Number of Loans | state | 6 | ||||||
Loans held-for-investment and related receivables, net | $ 525,447,000 | 341,546,000 | |||||
Senior Loans | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Percent of lending guaranteed (up to) | 25.00% | ||||||
Number of Loans | loan | 6 | ||||||
Loans held-for-investment and related receivables, net | $ 525,400,000 | ||||||
Credit facilities | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 357,600,000 | ||||||
Number of extension options | extension | 2 | ||||||
Extension period | 1 year | ||||||
Consolidated net worth, minimum | $ 1,000,000,000 | ||||||
Equity issued by the company, minimum | 75.00% | ||||||
Maximum leverage ratio to total indebtedness to total equity (less than or equal) | 80.00% | ||||||
Minimum interest coverage ratio of EBITDA to interest expense (greater than or equal) | 1.40 | ||||||
Credit facilities | Affiliated Entity | Term a | |||||||
Debt Instrument [Line Items] | |||||||
Minimum liquidity | $ 50,000,000 | ||||||
Credit facilities | Affiliated Entity | Term b | |||||||
Debt Instrument [Line Items] | |||||||
Minimum liquidity | $ 10,000,000 | ||||||
Recourse indebtedness | 5.00% | ||||||
JPMorgan Chase Bank, N.A. | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 2.30% | ||||||
Stated interest rate | 2.00% | ||||||
Line of credit maximum borrowing capacity | $ 1,240,000,000 | ||||||
Long-term line of credit | 1,160,000,000 | ||||||
Line of credit, current borrowing capacity | 430,000,000 | ||||||
Remaining borrowing capacity | 44,200,000 | ||||||
Line of credit facility, covenant, minimum consolidated net worth | $ 1,750,000,000 | ||||||
Debt instrument, covenant, fixed charge coverage ratio, minimum (greater than) | 1.50 | ||||||
Reinvestment period | 3 years | ||||||
Available borrowings (less than) | $ 1,250,000,000 | ||||||
JPMorgan Chase Bank, N.A. | Federal funds rate plus | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||
JPMorgan Chase Bank, N.A. | One-Month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
JPMorgan Chase Bank, N.A. | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 1.90% | ||||||
Line of credit maximum borrowing capacity | $ 885,000,000 | ||||||
Long-term line of credit | 1,110,000,000 | ||||||
JPMorgan Chase Bank, N.A. | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit maximum borrowing capacity | 350,000,000 | ||||||
Long-term line of credit | $ 50,000,000 | ||||||
Citibank | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 1.90% | ||||||
Line of credit maximum borrowing capacity | $ 500,000,000 | ||||||
Long-term line of credit | $ 256,500,000 | ||||||
Citibank | Revolving Credit Facility | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 60,000,000 | ||||||
Citibank | Credit facilities | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 2.20% | ||||||
Line of credit maximum borrowing capacity | $ 300,000,000 | ||||||
Long-term line of credit | $ 187,400,000 | ||||||
Barclays bank | Credit facilities | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 2.70% | ||||||
Line of credit maximum borrowing capacity | $ 500,000,000 | ||||||
Long-term line of credit | $ 170,200,000 | ||||||
Minimum | One-Month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.00% | ||||||
Minimum | JPMorgan Chase Bank, N.A. | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.65% | ||||||
Line of credit facility, covenant, unsecured debt service coverage ratio (greater than) | 1.75 | ||||||
Minimum | JPMorgan Chase Bank, N.A. | Statutory Reserve Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.65% | ||||||
Maximum | One-Month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.40% | ||||||
Maximum | JPMorgan Chase Bank, N.A. | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.25% | ||||||
Line of credit facility, covenant, leverage ratio (less than or equal) | 60.00% | ||||||
Debt instrument, covenant, unsecured debt to unencumbered asset value ratio (equal or less than) | 60.00% | ||||||
Line of credit facility, covenant, secured debt ratio (equal or less than) | 40.00% | ||||||
Line of credit facility, covenant, recourse debt ratio (no greater than) | 15.00% | ||||||
Maximum | JPMorgan Chase Bank, N.A. | Statutory Reserve Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.25% | ||||||
Interest Rate Swap | JPMorgan Chase Bank, N.A. | Term Loan | Cash Flow Hedging | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 4.20% | ||||||
Long-term line of credit | $ 220,000,000 | ||||||
Notes payable – fixed rate debt | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding debt | 577,853,000 | 578,096,000 | |||||
Debt security, amount, aggregate gross real estate assets net of gross intangible lease liabilities | $ 984,400,000 | ||||||
Notes payable – fixed rate debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.60% | ||||||
Notes payable – fixed rate debt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 5.00% | ||||||
Variable rate debt | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate (percent) | 5.50% | ||||||
Outstanding debt | $ 102,553,000 | $ 102,600,000 | 0 | ||||
Long term debt maturing in the next year | 1,400,000,000 | ||||||
Variable rate debt | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding debt | 53,600,000 | ||||||
Credit facilities | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding debt | 1,411,500,000 | $ 1,336,500,000 | |||||
Credit facilities | Reinvestment Period | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.70% | ||||||
Credit facilities | Amortization Period | Subsequent event | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.00% | ||||||
Credit facilities | JPMorgan Chase Bank, N.A. | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit maximum borrowing capacity | $ 350,000,000 | ||||||
Line of credit facility, covenant, minimum consolidated net worth | $ 225,000,000 | ||||||
Line of credit facility, covenant, minimum consolidated net worth, percentage of equity issuance | 75.00% | ||||||
Credit facilities | JPMorgan Chase Bank, N.A. | NYFRB Rate Plus | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||
Credit facilities | JPMorgan Chase Bank, N.A. | Adjusted LIBO Rate | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.00% | ||||||
Credit facilities | JPMorgan Chase Bank, N.A. | Term Loan | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit maximum borrowing capacity | $ 220,000,000 | ||||||
Credit facilities | JPMorgan Chase Bank, N.A. | Revolving Credit Facility | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit maximum borrowing capacity | $ 130,000,000 | ||||||
Credit facilities | Minimum | JPMorgan Chase Bank, N.A. | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.30% | ||||||
Credit facilities | Minimum | JPMorgan Chase Bank, N.A. | Statutory Reserve Rate | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.30% | ||||||
Credit facilities | Maximum | JPMorgan Chase Bank, N.A. | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 0.70% | ||||||
Line of credit facility, covenant, leverage ratio (less than or equal) | 60.00% | ||||||
Credit facilities | Maximum | JPMorgan Chase Bank, N.A. | Statutory Reserve Rate | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.70% |
CREDIT FACILITIES, NOTES PAYA_4
CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Short-Term and Long-Term Debt [Roll Forward] | ||
Total debt, Beginning Balance | $ 2,149,976 | |
Net premiums, Beginning Balance | 149 | |
Total debt, net, Beginning Balance | 2,144,993 | |
Total debt, Debt Issuances & Assumptions | 384,876 | |
Total debt, net, Debt Issuances & Assumptions | 384,255 | |
Total debt, Repayments & Modifications | (85,298) | |
Total debt, net, Repayments & Modifications | (85,298) | |
Net premiums, Accretion and (Amortization) | (23) | $ (23) |
Accretion and (Amortization) | 1,296 | |
Total debt, Ending Balance | 2,449,554 | |
Net premiums, Ending Balance | 126 | |
Total debt, net, Ending Balance | 2,445,246 | |
Fixed rate debt | ||
Short-Term and Long-Term Debt [Roll Forward] | ||
Total debt, Beginning Balance | 578,096 | |
Deferred costs, Beginning Balance | (1,589) | |
Total debt, Debt Issuances & Assumptions | 0 | |
Total debt, Repayments & Modifications | (243) | |
Deferred costs, Repayments & Modifications | 0 | |
Deferred costs, Accretion and (Amortization) | 586 | |
Total debt, Ending Balance | 577,853 | |
Deferred costs, Ending Balance | (1,003) | |
Variable rate debt | ||
Short-Term and Long-Term Debt [Roll Forward] | ||
Total debt, Beginning Balance | 0 | |
Deferred costs, Beginning Balance | 0 | |
Total debt, Debt Issuances & Assumptions | 102,553 | |
Deferred costs, Debt Issuances & Assumptions | (621) | |
Total debt, Repayments & Modifications | 0 | |
Deferred costs, Repayments & Modifications | 0 | |
Deferred costs, Accretion and (Amortization) | 0 | |
Total debt, Ending Balance | 102,553 | |
Deferred costs, Ending Balance | (621) | |
Credit facilities | ||
Short-Term and Long-Term Debt [Roll Forward] | ||
Total debt, Beginning Balance | 1,336,500 | |
Deferred costs, Beginning Balance | (3,543) | |
Total debt, Debt Issuances & Assumptions | 160,000 | |
Deferred costs, Debt Issuances & Assumptions | 0 | |
Total debt, Repayments & Modifications | (85,000) | |
Deferred costs, Repayments & Modifications | 0 | |
Deferred costs, Accretion and (Amortization) | 733 | |
Total debt, Ending Balance | 1,411,500 | |
Deferred costs, Ending Balance | (2,810) | |
Repurchase facilities | ||
Short-Term and Long-Term Debt [Roll Forward] | ||
Total debt, Beginning Balance | 235,380 | |
Total debt, Debt Issuances & Assumptions | 122,323 | |
Total debt, Repayments & Modifications | (55) | |
Total debt, Ending Balance | $ 357,648 |
CREDIT FACILITIES, NOTES PAYA_5
CREDIT FACILITIES, NOTES PAYABLE AND REPURCHASE FACILITIES - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Principal Repayments | ||
Remainder of 2021 | $ 240,520 | |
2022 | 1,184,391 | |
2023 | 677,051 | |
2024 | 347,592 | |
2025 | 0 | |
Thereafter | 0 | |
Total | $ 2,449,554 | $ 2,149,976 |
SUPPLEMENTAL CASH FLOW DISCLO_3
SUPPLEMENTAL CASH FLOW DISCLOSURES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||
Distributions declared and unpaid | $ 10,969 | $ 16,463 |
Accrued capital expenditures | 1,412 | 87 |
Accrued deferred financing costs | 417 | 8 |
Real estate acquired via foreclosure | 191,990 | 0 |
Foreclosure of assets securing the mezzanine loans | (79,968) | 0 |
Mortgage notes payable assumed in connection with foreclosure of assets securing the mezzanine loans | 102,553 | 0 |
Change in interest income capitalized to loans held-for-investment | (9,469) | 539 |
Common stock issued through distribution reinvestment plan | 0 | 19,231 |
Change in fair value of interest rate swaps | 4,686 | (9,823) |
Change in fair value of real estate-related securities | 122 | 0 |
Supplemental Cash Flow Disclosures: | ||
Interest paid | 18,493 | 15,665 |
Cash paid for taxes | $ 739 | $ 138 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
May 14, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||||
Cash and cash equivalents | $ 77,922 | $ 128,408 | $ 245,076 | $ 473,355 | |
Reserves For Settlement Of Loan Acquisitions | |||||
Loss Contingencies [Line Items] | |||||
Cash and cash equivalents | 34,500 | ||||
Reserves For Settlement Of Loan Acquisitions | Broadly Syndicated Loans | Subsequent event | |||||
Loss Contingencies [Line Items] | |||||
Loans settled | $ 711 | ||||
Reserves For Settlement Of Loan Sales | |||||
Loss Contingencies [Line Items] | |||||
Cash and cash equivalents | 4,300 | ||||
Reserves For Settlement Of Loan Sales | Broadly Syndicated Loans | Subsequent event | |||||
Loss Contingencies [Line Items] | |||||
Loans settled | $ 1,200 | ||||
Unfunded Loan Commitment | |||||
Loss Contingencies [Line Items] | |||||
Other commitment | $ 64,400 |
RELATED-PARTY TRANSACTIONS AN_3
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Management and investment advisory fees (Details) - USD ($) | Dec. 06, 2019 | Mar. 31, 2021 |
Related Party Transaction [Line Items] | ||
Investment advisory fee, percent per quarter | 0.375% | |
Advisors | ||
Related Party Transaction [Line Items] | ||
Management fee per annum | $ 250,000 | |
Management fee per quarter | $ 62,500 | |
Management fee percent per annum | 1.50% | |
Management fee percent per quarter | 0.375% | |
Investment advisory fee, percent per annum | 1.50% | |
Investment sub-advisory fees, percent per quarter | 50.00% |
RELATED-PARTY TRANSACTIONS AN_4
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Incentive Compensation (Details) - Advisors - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Incentive compensation. in excess of product, quarterly percentage | 20.00% | |
Incentive compensation. in excess of product, annualized percentage | 7.00% | |
Incentive compensation fees | $ 0 | $ 0 |
RELATED-PARTY TRANSACTIONS AN_5
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Disposition Fees (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Aug. 20, 2019 |
Related Party Transaction [Line Items] | ||||
Due to affiliates | $ 15,376 | $ 14,723 | ||
Advisors | ||||
Related Party Transaction [Line Items] | ||||
Due to affiliates | 15,400 | $ 14,700 | ||
Advisors | Brokerage Commission Fee | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Commissions performance and other fees | 50.00% | |||
Advisors | Property sales commission | ||||
Related Party Transaction [Line Items] | ||||
Commissions performance and other fees | 1.00% | |||
Advisors | Property portfolio | ||||
Related Party Transaction [Line Items] | ||||
Commissions performance and other fees | 6.00% | |||
Advisors | Acquisitions and Operations Costs | ||||
Related Party Transaction [Line Items] | ||||
Due to affiliates | $ 15,400 | $ 12,600 |
RELATED-PARTY TRANSACTIONS AN_6
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Fees and Expense Reimbursements Related Party Transactions (Details) - Advisors - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Management fees and expenses | ||
Related Party Transaction [Line Items] | ||
Related party transaction, expenses from transactions with related party | $ 13,014 | $ 11,090 |
Acquisition fees and expenses | ||
Related Party Transaction [Line Items] | ||
Related party transaction, expenses from transactions with related party | 181 | 127 |
Disposition fees | ||
Related Party Transaction [Line Items] | ||
Related party transaction, expenses from transactions with related party | 0 | 341 |
Operating expenses | ||
Related Party Transaction [Line Items] | ||
Related party transaction, expenses from transactions with related party | $ 1,043 | $ 810 |
RELATED-PARTY TRANSACTIONS AN_7
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Due to Affiliates (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 15,376 | $ 14,723 |
Advisors | ||
Related Party Transaction [Line Items] | ||
Due to affiliates | $ 15,400 | $ 14,700 |
RELATED-PARTY TRANSACTIONS AN_8
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Development Management Agreements (Details) | Jan. 07, 2021apartmentUnitbuilding | Mar. 31, 2021apartmentUnitbuilding |
Development Management Agreements | CIM NY Management, LLC | ||
Related Party Transaction [Line Items] | ||
Management fee, percentage | 4.00% | |
Condominium Units | Foreclosure Of Mezzanine Loans | Consolidated Properties | ||
Related Party Transaction [Line Items] | ||
Number of real estate properties secured through foreclosure | apartmentUnit | 75 | 75 |
Rental Unit | Foreclosure Of Mezzanine Loans | Consolidated Properties | ||
Related Party Transaction [Line Items] | ||
Number of real estate properties secured through foreclosure | apartmentUnit | 21 | 21 |
Buildings | Foreclosure Of Mezzanine Loans | ||
Related Party Transaction [Line Items] | ||
Number of real estate properties secured through foreclosure | building | 4 | 4 |
Buildings | Foreclosure Of Mezzanine Loans | Development Management Agreements | ||
Related Party Transaction [Line Items] | ||
Number of real estate properties secured through foreclosure | building | 4 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - CCPT IV 2018 Equity Incentive Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Aug. 10, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares vested (shares) | 32,500 | |
Restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in period to each independent member of board of directors (shares) | 11,000 | |
Total grants in period (shares) | 54,500 | |
Vesting period | 1 year | |
Forfeited in period (shares) | 22,000 | |
Unrecognized compensation expense | $ 80 | |
Restricted stock | General and administrative expenses | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 40 | |
Common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (shares) | 400,000 | |
Number of shares available for future grants (shares) | 345,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)lease | Dec. 31, 2020USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lessor, weighted average remaining lease term | 8 years 8 months 12 days | ||
Number of operating leases | lease | 1 | ||
Operating lease, remaining lease term | 12 years 4 months 24 days | ||
Operating lease, liability, statement of financial position | Deferred rental income, derivative liabilities and other liabilities | ||
Operating lease, discount rate | 4.30% | ||
Ground lease, expense | $ 63 | ||
Ground lease, payments | 61 | ||
Future minimum rental payments, remainder of 2021 | 188 | ||
Future minimum rental payments, 2022 | 250 | ||
Future minimum rental payments, 2023 | 250 | ||
Future minimum rental payments, 2024 | 250 | ||
Future minimum rental payments, 2025 | 250 | ||
Future minimum rental payments, 2026 | 250 | ||
Future minimum rental payments, thereafter | 1,600 | ||
ASC 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability | 2,400 | $ 2,400 | $ 2,400 |
Operating lease, right-of-use asset | $ 2,400 | $ 2,400 | $ 2,400 |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Income (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Future Minimum Rental Income | |
Remainder of 2021 | $ 191,931 |
2022 | 248,096 |
2023 | 231,349 |
2024 | 212,216 |
2025 | 193,595 |
Thereafter | 1,245,868 |
Total | $ 2,323,055 |
LEASES - Schedule of Components
LEASES - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Fixed rental and other property income | $ 66,541 | $ 56,673 |
Variable rental and other property income | 10,389 | 11,763 |
Total rental and other property income | $ 76,930 | $ 68,436 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | Jan. 07, 2021apartmentUnit | Mar. 31, 2021USD ($)loansegmentapartmentUnit | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019loan |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 2 | 2 | |||
Revenues: | |||||
Rental and other property income | $ 76,930,000 | $ 68,436,000 | |||
Interest income | 11,953,000 | 5,571,000 | |||
Total revenues | 88,883,000 | 74,007,000 | |||
Operating expenses: | |||||
General and administrative | 5,471,000 | 3,682,000 | |||
Property operating | 10,119,000 | 6,865,000 | |||
Real estate tax | 12,219,000 | 6,978,000 | |||
Management and advisory fees and expenses | 13,014,000 | 11,090,000 | |||
Transaction-related | 185,000 | 252,000 | |||
Depreciation and amortization | 25,738,000 | 20,823,000 | |||
Real estate impairment | 4,300,000 | 11,676,000 | |||
Provision for credit losses | 568,000 | 17,777,000 | |||
Total operating expenses | 71,614,000 | 79,143,000 | |||
Gain on disposition of real estate, net | 0 | 13,110,000 | |||
Operating income | 17,269,000 | 7,974,000 | |||
Other expense: | |||||
Interest expense and other, net | (20,022,000) | (15,767,000) | |||
Loss on extinguishment of debt | 0 | (4,382,000) | |||
Net loss | (2,753,000) | (12,175,000) | |||
Assets | 4,721,854,000 | $ 4,459,609,000 | |||
Mezzanine Loans | |||||
Operating expenses: | |||||
Provision for credit losses | $ 12,900,000 | ||||
Other expense: | |||||
Number of loans | loan | 8 | 8 | |||
Condominium Units | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||||
Other expense: | |||||
Number of real estate properties secured through foreclosure | apartmentUnit | 75 | 75 | |||
Rental Unit | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||||
Other expense: | |||||
Number of real estate properties secured through foreclosure | apartmentUnit | 21 | 21 | |||
Operating Segments | |||||
Revenues: | |||||
Rental and other property income | $ 76,930,000 | 68,436,000 | |||
Interest income | 11,953,000 | 5,571,000 | |||
Total revenues | 88,883,000 | 74,007,000 | |||
Operating expenses: | |||||
General and administrative | 5,471,000 | 3,682,000 | |||
Property operating | 10,119,000 | 6,865,000 | |||
Real estate tax | 12,219,000 | 6,978,000 | |||
Management and advisory fees and expenses | 13,014,000 | 11,090,000 | |||
Transaction-related | 185,000 | 252,000 | |||
Depreciation and amortization | 25,738,000 | 20,823,000 | |||
Real estate impairment | 4,300,000 | 11,676,000 | |||
Provision for credit losses | 568,000 | 17,777,000 | |||
Total operating expenses | 71,614,000 | 79,143,000 | |||
Gain on disposition of real estate, net | 13,110,000 | ||||
Operating income | 17,269,000 | 7,974,000 | |||
Other expense: | |||||
Interest expense and other, net | (20,022,000) | (15,767,000) | |||
Loss on extinguishment of debt | (4,382,000) | ||||
Net loss | (2,753,000) | (12,175,000) | |||
Assets | 4,721,854,000 | 3,600,692,000 | |||
Operating Segments | Real Estate | |||||
Revenues: | |||||
Rental and other property income | 76,794,000 | 68,436,000 | |||
Interest income | 0 | 0 | |||
Total revenues | 76,794,000 | 68,436,000 | |||
Operating expenses: | |||||
General and administrative | 64,000 | 62,000 | |||
Property operating | 8,523,000 | 6,865,000 | |||
Real estate tax | 7,869,000 | 6,978,000 | |||
Management and advisory fees and expenses | 9,331,000 | 7,981,000 | |||
Transaction-related | 4,000 | 125,000 | |||
Depreciation and amortization | 25,738,000 | 20,823,000 | |||
Real estate impairment | 4,300,000 | 11,676,000 | |||
Provision for credit losses | 0 | 0 | |||
Total operating expenses | 55,829,000 | 54,510,000 | |||
Gain on disposition of real estate, net | 13,110,000 | ||||
Operating income | 20,965,000 | 27,036,000 | |||
Other expense: | |||||
Interest expense and other, net | (4,116,000) | (6,335,000) | |||
Loss on extinguishment of debt | (4,382,000) | ||||
Net loss | 16,849,000 | 16,319,000 | |||
Assets | 3,371,496,000 | 2,749,026,000 | |||
Operating Segments | Credit | |||||
Revenues: | |||||
Rental and other property income | 0 | 0 | |||
Interest income | 11,953,000 | 5,571,000 | |||
Total revenues | 11,953,000 | 5,571,000 | |||
Operating expenses: | |||||
General and administrative | 376,000 | 12,000 | |||
Property operating | 0 | 0 | |||
Real estate tax | 0 | 0 | |||
Management and advisory fees and expenses | 2,246,000 | 1,869,000 | |||
Transaction-related | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | |||
Real estate impairment | 0 | 0 | |||
Provision for credit losses | 568,000 | 17,777,000 | |||
Total operating expenses | 3,190,000 | 19,658,000 | |||
Gain on disposition of real estate, net | 0 | ||||
Operating income | 8,763,000 | (14,087,000) | |||
Other expense: | |||||
Interest expense and other, net | (3,547,000) | 200,000 | |||
Loss on extinguishment of debt | 0 | ||||
Net loss | 5,216,000 | (13,887,000) | |||
Assets | 1,155,640,000 | 627,479,000 | |||
Corporate And Reconciling Items | Corporate / Other | |||||
Revenues: | |||||
Rental and other property income | 136,000 | 0 | |||
Interest income | 0 | 0 | |||
Total revenues | 136,000 | 0 | |||
Operating expenses: | |||||
General and administrative | 5,031,000 | 3,608,000 | |||
Property operating | 1,596,000 | 0 | |||
Real estate tax | 4,350,000 | 0 | |||
Management and advisory fees and expenses | 1,437,000 | 1,240,000 | |||
Transaction-related | 181,000 | 127,000 | |||
Depreciation and amortization | 0 | 0 | |||
Real estate impairment | 0 | 0 | |||
Provision for credit losses | 0 | 0 | |||
Total operating expenses | 12,595,000 | 4,975,000 | |||
Gain on disposition of real estate, net | 0 | ||||
Operating income | (12,459,000) | (4,975,000) | |||
Other expense: | |||||
Interest expense and other, net | (12,359,000) | (9,632,000) | |||
Loss on extinguishment of debt | 0 | ||||
Net loss | (24,818,000) | (14,607,000) | |||
Assets | $ 194,718,000 | $ 224,187,000 |
SUBSEQUENT EVENTS - Broadly Syn
SUBSEQUENT EVENTS - Broadly Syndicated Loans (Details) - Broadly Syndicated Loans - Subsequent event $ in Thousands | 1 Months Ended |
May 14, 2021USD ($) | |
Reserves For Settlement Of Loan Acquisitions | |
Subsequent Event [Line Items] | |
Debt settled | $ 8,700 |
Loans settled | 711 |
Reserves For Settlement Of Loan Sales | |
Subsequent Event [Line Items] | |
Debt settled | 8,600 |
Loans settled | $ 1,200 |
SUBSEQUENT EVENTS - CMBS Sales
SUBSEQUENT EVENTS - CMBS Sales (Details) - CMBS - Subsequent event $ in Thousands | 1 Months Ended |
May 14, 2021USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |
Sale price | $ 24,400 |
Proceeds from sale of CMBS | 27,600 |
Gain on sale of CMBS | $ 660 |
SUBSEQUENT EVENTS - CRE Loans (
SUBSEQUENT EVENTS - CRE Loans (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
May 14, 2021USD ($)loanextension_option | Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 227 | ||
Unfunded Loan Commitment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other commitment | $ 64,400 | ||
CRE Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 6 | 12 | |
Principal balance | $ 530,301 | $ 481,438 | |
Weighted-average interest rate | 4.90% | 7.50% | |
CRE Loans | Subsequent event | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 2 | ||
Principal balance | $ 92,600 | ||
Weighted-average interest rate | 2.10% | ||
Number of extension option | extension_option | 3 | ||
Extension period | 1 year | ||
CRE Loans | Subsequent event | Unfunded Loan Commitment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other commitment | $ 12,400 |
SUBSEQUENT EVENTS - Property Di
SUBSEQUENT EVENTS - Property Disposition (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 14, 2021USD ($)property | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | |
Subsequent Event [Line Items] | |||
Net proceeds from disposition of real estate assets | $ 3,511 | $ 126,645 | |
Gain (loss) on sale of properties | $ 0 | $ 13,110 | |
Subsequent event | |||
Subsequent Event [Line Items] | |||
Number of properties disposed | property | 5 | ||
Aggregate gross sales price | $ 41,500 | ||
Net proceeds from disposition of real estate assets | 38,800 | ||
Gain (loss) on sale of properties | $ 2,000 | ||
Number of real estate properties, held for sale, related to mortgage notes payable | property | 1 | ||
Mortgage notes payable | $ 21,900 |
SUBSEQUENT EVENTS - Derivative
SUBSEQUENT EVENTS - Derivative Instruments and Notes Payable (Details) - Subsequent event $ in Millions | 1 Months Ended |
May 14, 2021USD ($)swap_agreement | |
Subsequent Event [Line Items] | |
Repayment of mortgage notes payable | $ | $ 32.1 |
Interest Rate Swap | |
Subsequent Event [Line Items] | |
Number of interest rate derivatives matured | swap_agreement | 1 |
SUBSEQUENT EVENTS - Credit Faci
SUBSEQUENT EVENTS - Credit Facility (Details) - USD ($) $ in Millions | 1 Months Ended | |
May 14, 2021 | Mar. 31, 2021 | |
Reinvestment Period | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.70% | |
Reinvestment Period | Credit facilities | Subsequent event | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.70% | |
Amortization Period | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.00% | |
Amortization Period | Credit facilities | Subsequent event | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.00% | |
Revolving Credit Facility | Subsequent event | CMFT Credit Facility | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 60 | |
Revolving Credit Facility | Citibank | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 256.5 | |
Revolving Credit Facility | Citibank | Subsequent event | ||
Debt Instrument [Line Items] | ||
Long-term line of credit | $ 60 |
Uncategorized Items - cmft-2021
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |