Cover
Cover - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 (shares) | 436.9 | |
Entity Central Index Key | 0001498547 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate assets: | ||
Land | $ 599,394 | $ 655,273 |
Buildings, fixtures and improvements | 1,545,493 | 1,706,902 |
Intangible lease assets | 287,710 | 314,832 |
Condominium developments | 152,473 | 171,080 |
Total real estate assets, at cost | 2,585,070 | 2,848,087 |
Less: accumulated depreciation and amortization | (244,150) | (235,481) |
Total real estate assets, net | 2,340,920 | 2,612,606 |
Investments in unconsolidated entities | 96,161 | 109,547 |
Real estate-related securities ($274,382 and $41,981 held at fair value as of June 30, 2022 and December 31, 2021, respectively) | 274,382 | 105,471 |
Loans held-for-investment and related receivables, net | 3,911,239 | 2,624,101 |
Less: Current expected credit losses | (23,935) | (15,201) |
Total loans held-for-investment and related receivables, net | 3,887,304 | 2,608,900 |
Cash and cash equivalents | 173,417 | 107,381 |
Restricted cash | 61,022 | 36,792 |
Rents and tenant receivables, net | 33,101 | 58,948 |
Prepaid expenses, derivative assets and other assets | 76,348 | 16,279 |
Deferred costs, net | 11,373 | 7,214 |
Assets held for sale | 76,623 | 1,299,638 |
Total assets | 7,030,651 | 6,962,776 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Repurchase facilities, notes payable and credit facilities, net | 4,227,067 | 4,143,205 |
Accrued expenses and accounts payable | 29,271 | 45,872 |
Due to affiliates | 14,414 | 14,594 |
Intangible lease liabilities, net | 20,337 | 24,896 |
Distributions payable | 13,338 | 13,252 |
Deferred rental income, derivative liabilities and other liabilities | 7,803 | 21,282 |
Total liabilities | 4,312,230 | 4,263,101 |
Commitments and contingencies | ||
Redeemable common stock | 170,096 | 170,714 |
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, 437,311,071 and 437,373,981 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 4,373 | 4,374 |
Capital in excess of par value | 3,529,285 | 3,529,126 |
Accumulated distributions in excess of earnings | (975,820) | (1,008,561) |
Accumulated other comprehensive (loss) income | (10,493) | 2,949 |
Total stockholders’ equity | 2,547,345 | 2,527,888 |
Non-controlling interests | 980 | 1,073 |
Total equity | 2,548,325 | 2,528,961 |
Total liabilities, redeemable common stock, non-controlling interests and stockholders’ equity | $ 7,030,651 | $ 6,962,776 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fair value of CMBS | $ 274,382 | $ 41,981 |
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) | 437,311,071 | 437,373,981 |
Common stock, shares outstanding (shares) | 437,311,071 | 437,373,981 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Rental and other property income | $ 53,508 | $ 75,302 | $ 127,244 | $ 152,232 |
Interest income | 44,984 | 16,460 | 76,447 | 28,413 |
Total revenues | 98,492 | 91,762 | 203,691 | 180,645 |
Operating expenses: | ||||
General and administrative | 3,680 | 3,605 | 7,155 | 8,033 |
Property operating | 5,249 | 11,356 | 12,976 | 21,475 |
Real estate tax | 2,024 | 7,706 | 8,737 | 19,925 |
Expense reimbursements to related parties | 3,777 | 3,210 | 7,471 | 5,871 |
Management fees | 13,351 | 11,755 | 26,698 | 23,332 |
Transaction-related | 446 | 27 | 453 | 31 |
Depreciation and amortization | 18,015 | 24,647 | 37,156 | 50,385 |
Real estate impairment | 15,996 | 77 | 19,287 | 4,377 |
Increase in provision for credit losses | 4,942 | 123 | 9,651 | 691 |
Total operating expenses | 67,480 | 62,506 | 129,584 | 134,120 |
Gain on disposition of real estate and condominium developments, net | 81,107 | 46,469 | 113,681 | 46,469 |
Operating income (loss) | 112,119 | 75,725 | 187,788 | 92,994 |
Other expense: | ||||
Gain on investment in unconsolidated entities | 1,323 | 0 | 6,663 | 0 |
Interest expense and other, net | (34,460) | (16,460) | (65,497) | (36,482) |
Loss on extinguishment of debt | (5,369) | (1,478) | (16,240) | (1,478) |
Total other expense | (38,506) | (17,938) | (75,074) | (37,960) |
Net income | 73,613 | 57,787 | 112,714 | 55,034 |
Net loss allocated to noncontrolling interest | (72) | 0 | (63) | 0 |
Net income attributable to the Company | $ 73,685 | $ 57,787 | $ 112,777 | $ 55,034 |
Weighted average number of common shares outstanding: | ||||
Basic (shares) | 437,346,523 | 362,448,778 | 437,360,190 | 362,226,607 |
Diluted (shares) | 437,346,523 | 362,448,778 | 437,360,190 | 362,226,607 |
Net income per common share: | ||||
Basic (USD per share) | $ 0.17 | $ 0.16 | $ 0.26 | $ 0.15 |
Diluted (USD per share) | $ 0.17 | $ 0.16 | $ 0.26 | $ 0.15 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 73,613 | $ 57,787 | $ 112,714 | $ 55,034 |
Other comprehensive (loss) income | ||||
Unrealized (loss) gain on real estate-related securities | (10,909) | 1,930 | (15,787) | 2,052 |
Reclassification adjustment for realized gain included in income as other income | 0 | (648) | 0 | (648) |
Unrealized gain (loss) on interest rate swaps | 795 | (52) | 2,283 | 71 |
Amount of loss reclassified from other comprehensive (loss) income into income as interest expense and other, net | 69 | 71 | 62 | 3,203 |
Total other comprehensive (loss) income | (10,045) | 1,301 | (13,442) | 4,678 |
Comprehensive income | 63,568 | 59,088 | 99,272 | 59,712 |
Comprehensive loss attributable to noncontrolling interest | (72) | 0 | (63) | 0 |
Comprehensive income attributable to the Company | $ 63,640 | $ 59,088 | $ 99,335 | $ 59,712 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Total Stockholders’ Equity | Common Stock | Capital in Excess of Par Value | Accumulated Distributions in Excess of Earnings | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interests |
Beginning balance (shares) at Dec. 31, 2020 | 362,001,968 | ||||||
Beginning balance at Dec. 31, 2020 | $ 2,198,426 | $ 2,198,426 | $ 3,620 | $ 3,157,859 | $ (961,006) | $ (2,047) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Equity-based compensation | 40 | 40 | 40 | ||||
Distributions declared on common stock | (32,906) | (32,906) | (32,906) | ||||
Comprehensive income (loss) | 624 | 624 | (2,753) | 3,377 | 0 | ||
Ending balance (shares) at Mar. 31, 2021 | 362,001,968 | ||||||
Ending balance at Mar. 31, 2021 | 2,166,184 | 2,166,184 | $ 3,620 | 3,157,899 | (996,665) | 1,330 | 0 |
Beginning balance (shares) at Dec. 31, 2020 | 362,001,968 | ||||||
Beginning balance at Dec. 31, 2020 | 2,198,426 | 2,198,426 | $ 3,620 | 3,157,859 | (961,006) | (2,047) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 59,712 | ||||||
Ending balance (shares) at Jun. 30, 2021 | 362,923,841 | ||||||
Ending balance at Jun. 30, 2021 | 2,025,405 | 2,025,405 | $ 3,629 | 2,990,971 | (971,826) | 2,631 | 0 |
Beginning balance (shares) at Mar. 31, 2021 | 362,001,968 | ||||||
Beginning balance at Mar. 31, 2021 | 2,166,184 | 2,166,184 | $ 3,620 | 3,157,899 | (996,665) | 1,330 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (shares) | 917,769 | ||||||
Issuance of common stock | 6,660 | 6,660 | $ 9 | 6,651 | |||
Equity-based compensation (shares) | 4,104 | ||||||
Equity-based compensation | 49 | 49 | 49 | ||||
Distributions declared on common stock | (32,948) | (32,948) | (32,948) | ||||
Changes in redeemable common stock | (173,628) | (173,628) | (173,628) | ||||
Comprehensive income (loss) | 59,088 | 59,088 | 57,787 | 1,301 | 0 | ||
Ending balance (shares) at Jun. 30, 2021 | 362,923,841 | ||||||
Ending balance at Jun. 30, 2021 | $ 2,025,405 | 2,025,405 | $ 3,629 | 2,990,971 | (971,826) | 2,631 | 0 |
Beginning balance (shares) at Dec. 31, 2021 | 437,373,981 | 437,373,981 | |||||
Beginning balance at Dec. 31, 2021 | $ 2,528,961 | 2,527,888 | $ 4,374 | 3,529,126 | (1,008,561) | 2,949 | 1,073 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (shares) | 1,329,825 | ||||||
Issuance of common stock | 9,574 | 9,574 | $ 13 | 9,561 | |||
Equity-based compensation | 37 | 37 | 37 | ||||
Distributions declared on common stock | (40,018) | (40,018) | (40,018) | ||||
Redemptions of common stock (shares) | (1,345,814) | ||||||
Redemptions of common stock | (9,689) | (9,689) | $ (13) | (9,676) | |||
Changes in redeemable common stock | 115 | 115 | 115 | ||||
Distributions to non-controlling interests | (14) | (14) | |||||
Comprehensive income (loss) | 35,704 | 35,695 | 39,092 | (3,397) | 9 | ||
Ending balance (shares) at Mar. 31, 2022 | 437,357,992 | ||||||
Ending balance at Mar. 31, 2022 | $ 2,524,670 | 2,523,602 | $ 4,374 | 3,529,163 | (1,009,487) | (448) | 1,068 |
Beginning balance (shares) at Dec. 31, 2021 | 437,373,981 | 437,373,981 | |||||
Beginning balance at Dec. 31, 2021 | $ 2,528,961 | 2,527,888 | $ 4,374 | 3,529,126 | (1,008,561) | 2,949 | 1,073 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions to non-controlling interests | (30) | ||||||
Comprehensive income (loss) | $ 99,272 | ||||||
Ending balance (shares) at Jun. 30, 2022 | 437,311,071 | 437,311,071 | |||||
Ending balance at Jun. 30, 2022 | $ 2,548,325 | 2,547,345 | $ 4,373 | 3,529,285 | (975,820) | (10,493) | 980 |
Beginning balance (shares) at Mar. 31, 2022 | 437,357,992 | ||||||
Beginning balance at Mar. 31, 2022 | 2,524,670 | 2,523,602 | $ 4,374 | 3,529,163 | (1,009,487) | (448) | 1,068 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of common stock (shares) | 1,325,282 | ||||||
Issuance of common stock | 9,542 | 9,542 | $ 13 | 9,529 | |||
Equity-based compensation (shares) | 22,892 | ||||||
Equity-based compensation | 120 | 120 | 120 | ||||
Distributions declared on common stock | (40,018) | (40,018) | (40,018) | ||||
Redemptions of common stock (shares) | (1,395,095) | ||||||
Redemptions of common stock | (10,044) | (10,044) | $ (14) | (10,030) | |||
Changes in redeemable common stock | 503 | 503 | 503 | ||||
Distributions to non-controlling interests | (16) | (16) | |||||
Comprehensive income (loss) | $ 63,568 | 63,640 | 73,685 | (10,045) | (72) | ||
Ending balance (shares) at Jun. 30, 2022 | 437,311,071 | 437,311,071 | |||||
Ending balance at Jun. 30, 2022 | $ 2,548,325 | $ 2,547,345 | $ 4,373 | $ 3,529,285 | $ (975,820) | $ (10,493) | $ 980 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Distributions declared on common stock (USD per share) | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 112,714 | $ 55,034 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization, net | 37,174 | 49,184 |
Amortization of deferred financing costs | 6,144 | 3,782 |
Amortization of fair value adjustment of mortgage notes payable assumed | 0 | (149) |
Amortization and accretion on deferred loan fees | (4,937) | (817) |
Amortization of premiums and discounts on credit investments | (1,585) | (3,767) |
Capitalized interest income on real estate-related securities and loans held-for-investment | (608) | (435) |
Equity-based compensation | 157 | 89 |
Straight-line rental income | (3,191) | (2,756) |
Write-offs for uncollectible lease-related receivables | (695) | 591 |
Gain on disposition of real estate assets and condominium developments, net | (113,681) | (46,469) |
Loss (gain) on sale of credit investments, net | 170 | (813) |
Gain on investment in unconsolidated entities | (6,663) | 0 |
Gain on sale of marketable security | (22) | 0 |
Unrealized loss on equity security | 6,431 | 0 |
Amortization of fair value adjustment and gain on interest rate swaps | 140 | (2,757) |
Gain on interest rate caps | (1,851) | 0 |
Impairment of real estate assets | 19,287 | 4,377 |
Increase in provision for credit losses | 9,651 | 691 |
Write-off of deferred financing costs | 7,836 | 45 |
Return on investment in unconsolidated entities | 2,022 | 0 |
Changes in assets and liabilities: | ||
Rents and tenant receivables, net | 67,285 | 15,466 |
Prepaid expenses and other assets | (58,802) | (6,234) |
Accrued expenses and accounts payable | (3,440) | 707 |
Deferred rental income and other liabilities | (12,125) | (1,656) |
Due to affiliates | (180) | 1,234 |
Net cash provided by operating activities | 61,231 | 65,347 |
Cash flows from investing activities: | ||
Investment in unconsolidated entities | (43,250) | 0 |
Return of investment in unconsolidated entities | 614 | 0 |
Investment in real estate-related securities | (259,198) | (28,509) |
Investment in liquid senior loans | (110,369) | (142,324) |
Investment in real estate assets and capital expenditures | (14,426) | (14,543) |
Investment in corporate senior loans | (55,251) | 0 |
Origination and acquisition of loans held-for-investment, net | (1,223,605) | (533,222) |
Origination and exit fees received on loans held-for-investment | 13,365 | 4,694 |
Principal payments received on loans held-for-investment | 127,101 | 97,459 |
Principal payments received on real estate-related securities | 1,250 | 20 |
Net proceeds from sale of real estate-related securities | 132 | 27,624 |
Net proceeds from disposition of real estate assets and condominium developments | 1,205,183 | 304,370 |
Net proceeds from sale of liquid senior loans | 35,290 | 36,518 |
Redemption of investment in unconsolidated entities | 60,663 | 0 |
Proceeds from the settlement of insurance claims | 619 | 58 |
Net cash used in investing activities | (261,882) | (247,855) |
Cash flows from financing activities: | ||
Redemptions of common stock | (19,733) | 0 |
Distributions to stockholders | (60,834) | (59,166) |
Proceeds from borrowings | 1,615,858 | 590,182 |
Repayments of borrowings, and prepayment penalties | (1,235,322) | (298,021) |
Termination of interest rate swaps | (101) | 0 |
Payment of loan deposits | 0 | (650) |
Refund of loan deposits | 0 | 65 |
Distributions to non-controlling interests | (30) | 0 |
Deferred financing costs paid | (8,921) | (4,093) |
Net cash provided by financing activities | 290,917 | 228,317 |
Net increase in cash and cash equivalents and restricted cash | 90,266 | 45,809 |
Cash and cash equivalents and restricted cash, beginning of period | 144,173 | 128,408 |
Cash and cash equivalents and restricted cash, end of period | 234,439 | 174,217 |
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets: | ||
Cash and cash equivalents | 173,417 | 141,299 |
Restricted cash | 61,022 | 32,918 |
Total cash and cash equivalents and restricted cash | 234,439 | 174,217 |
Supplemental Disclosures of Non-Cash Investing and Financing Activities: | ||
Distributions declared and unpaid | 13,338 | 10,997 |
Accrued capital expenditures | 561 | 4,104 |
Accrued deferred financing costs | 596 | 32 |
Real estate acquired via foreclosure | 0 | 191,990 |
Foreclosure of assets securing the mezzanine loans | 0 | (79,968) |
Mortgage notes payable assumed in connection with foreclosure of assets securing the mezzanine loans | 0 | 102,553 |
Mortgage notes payable assumed by buyer in connection with disposition of real estate assets | (313,712) | 0 |
Change in interest income capitalized to loans held-for-investment | 0 | (9,469) |
Common stock issued through distribution reinvestment plan | 19,116 | 6,660 |
Change in fair value of derivative instruments | 2,205 | 6,031 |
Change in fair value of real estate-related securities | (15,787) | 1,404 |
Conversion of preferred units to debt | 68,242 | 0 |
Supplemental Cash Flow Disclosures: | ||
Interest paid | 61,802 | 34,183 |
Cash paid for taxes | $ 1,018 | $ 1,412 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 6 Months Ended |
Jun. 30, 2022 | |
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 operates its business to qualify, 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 primarily consisting of net leased properties located throughout the United States and short duration senior secured loans and other credit investments. As of June 30, 2022, the Company owned 402 properties, including two properties owned through a consolidated joint venture arrangement (the “Consolidated Joint Venture”), comprised of 12.1 million rentable square feet of commercial space located in 45 states. As of June 30, 2022, the rentable square feet at these properties was 99.2% leased, including month-to-month agreements, if any. As of June 30, 2022, the Company’s loan portfolio consisted of 341 loans with a net book value of $3.9 billion, and investments in real estate-related securities of $274.4 million. As of June 30, 2022, the Company owned condominium developments with a net book value of $152.5 million. 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. CIM is headquartered in Los Angeles, CA, with offices in Atlanta, GA, Bethesda, MD, Chicago, IL, Dallas, TX, New York, NY, Orlando, FL, Phoenix, AZ, and Tokyo, Japan. CIM also maintains additional offices across the Unites States, as well as in Korea, Hong Kong, and the United Kingdom to support its platform. CCO Group, LLC is a subsidiary of CIM and 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. 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 and certain other investments. 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 will continue to issue shares under the Secondary DRIP Offering. The Company’s board of directors (the “Board”) establishes an updated estimated per share net asset value (“NAV”) of the Company’s common stock on at least an annual basis for purposes of assisting broker-dealers that participated in the Offering in meeting their customer account reporting obligations under Financial Industry Regulatory Authority Rule 2231. Distributions |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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, its wholly-owned subsidiaries, and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. In determining whether the Company has controlling interests in an entity and the requirement to consolidate the accounts in that entity, the Company analyzes its credit and real estate investments in accordance with standards set forth in GAAP to determine whether they are variable interest entities (“VIEs”), and if so, whether the Company is the primary beneficiary. The Company’s judgment with respect to its level of influence or control over an entity and whether the Company is the primary beneficiary of a VIE involves consideration of various factors, including the form of the Company’s ownership interest, the Company’s voting interest, the size of the Company’s investment (including loans), and the Company’s ability to participate in major policy-making decisions. The Company’s ability to correctly assess its influence or control over an entity affects the presentation of these credit and real estate investments on the Company’s condensed consolidated financial statements. As of June 30, 2022, the Company has determined that the Consolidated Joint Venture is considered a VIE. Applying the consolidation requirements for VIEs, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits and therefore met the requirements for consolidation. Reclassifications Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. Other than as shown below, these reclassifications had no effect on previously reported totals or subtotals. The reclassifications have been made to the condensed consolidated balance sheet as of December 31, 2021, and to the condensed consolidated statement of cash flows for the six months ended June 30, 2021 as follows (in thousands): As of December 31, 2021 As previously reported Reclassifications As Revised Condensed Consolidated Balance Sheets Rents and tenant receivables, net $ 61,468 $ (2,520) $ 58,948 Prepaid expenses and other assets $ 13,759 $ 2,520 $ 16,279 Six Months Ended June 30, 2021 As previously reported Reclassifications As Revised Condensed Consolidated Statements of Cash Flows Rents and tenant receivables, net $ 15,315 $ 151 $ 15,466 Prepaid expenses and other assets $ (6,083) $ (151) $ (6,234) 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; changes in anticipated holding periods; and significant increases to budgeted costs for units under development. 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 six months ended June 30, 2022, as part of the Company’s quarterly impairment review procedures, the Company recorded impairment charges of $11.3 million related to 18 properties, all of which was due to sales prices that were less than their respective carrying values. Additionally, during the six months ended June 30, 2022, certain condominium units were deemed to be impaired and their carrying values were reduced to their estimated fair value, resulting in impairment charges of $7.9 million. The Company’s impairment assessment as of June 30, 2022 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 2022 or in future periods. During the six months ended June 30, 2021, the Company recorded impairment charges of $4.4 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 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 June 30, 2022, the Company identified four properties with a carrying value of $76.6 million as held for sale, one of which is in connection with the Purchase and Sale Agreement (as defined in Note 4 — Real Estate Assets). The Company had a mortgage note payable of $42.8 million that was related to the held for sale property in connection with the Purchase and Sale Agreement, which was assumed by the buyer in connection with the disposition of the underlying held for sale property. The Company disposed of these properties subsequent to June 30, 2022, as further discussed in Note 17 — Subsequent Events. As of December 31, 2021, in connection with the Purchase and Sale Agreement, the Company identified 81 properties with a carrying value of $1.3 billion as held for sale, of which the sale of 80 such properties closed during the six months ended June 30, 2022. Dispositions 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 dispositions during the six months ended June 30, 2022 and 2021 did not qualify for discontinued operations presentation and thus, the results of the properties and condominiums that were sold will remain in operating income, and any associated gains or losses from the dispositions are included in gain on disposition of real estate and condominium developments, net. See Note 4 — Real Estate Assets for a discussion of the disposition of individual properties and condominiums during the six months ended June 30, 2022. 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. Acquisition-related manager expense reimbursements are expensed as incurred and are included in expense reimbursements to related parties in the accompanying condensed consolidated statements of operations. Other acquisition-related expenses continue to be expensed as incurred and are included in transaction-related expenses in the accompanying condensed consolidated statements of operations. Investments in Unconsolidated Entities On March 31, 2022, the Company fully redeemed its $60.7 million investment in CIM UII Onshore, L. P. (“CIM UII Onshore”) and received 100% of the $60.7 million redemption proceeds as of June 30, 2022. Prior to redemption, the Company had less than 5% ownership of CIM UII Onshore and accounted for its investment under the equity method. The equity method of accounting requires the investment to be initially recorded at cost, including transaction costs incurred to finalize the investment, and subsequently adjusted for the Company’s share of equity in CIM UII Onshore’s earnings and distributions. Prior to redemption, the Company recorded its share of CIM UII Onshore’s profits or losses on a quarterly basis as an adjustment to the carrying value of the investment on the Company’s condensed consolidated balance sheet and such share is recognized as a profit or loss on the condensed consolidated statements of operations. The Company recorded its share of CIM UII Onshore’s gain, totaling $5.2 million during the six months ended June 30, 2022, in the condensed consolidated statements of operations. During the six months ended June 30, 2022, the Company received distributions of $531,000 related to its investment in CIM UII Onshore, all of which was recognized as a return on investment. As of December 31, 2021, the Company’s investment in CIM UII Onshore had a carrying value of $56.0 million. CMFT MT JV Holdings, LLC, an indirect wholly-owned subsidiary of the Company, is engaged in an unconsolidated joint venture arrangement through CIM NP JV Holdings, LLC (“NP JV Holdings”) (the “Unconsolidated Joint Venture”), of which it owns 50% of the outstanding equity. Through the Unconsolidated Joint Venture, which holds 90% of the membership interest in NewPoint JV, LLC (the “NewPoint JV”) pursuant to the terms of the Operating Agreement entered into between the Unconsolidated Joint Venture and NewPoint Bridge Lending, LLC, the Company indirectly owns 45% of the outstanding equity of the NewPoint JV on a fully diluted basis. The Company accounts for its investment under the equity method. The equity method of accounting requires the investment to be initially recorded at cost, including transaction costs incurred to finalize the investment, and is subsequently adjusted for the Company’s share of equity in NP JV Holdings’ earnings and distributions, including unrealized gains and losses as a result of changes in fair value of the NewPoint JV. The Company records its share of NP JV Holdings’ profits or losses on a quarterly basis as an adjustment to the carrying value of the investment on the Company’s condensed consolidated balance sheet and such share is recognized as a profit or loss on the condensed consolidated statements of operations. The Company recorded a gain totaling $1.5 million, which represented its share of NP JV Holdings’ gain, during the six months ended June 30, 2022 in the condensed consolidated statements of operations. During the six months ended June 30, 2022, the Company contributed an additional $43.3 million in NP JV Holdings. As of June 30, 2022, the Company’s aggregate investment in NP JV Holdings of $96.2 million is included in investment in unconsolidated entities on the condensed consolidated balance sheets. The Company received $2.1 million in distributions related to its investment in the NP JV Holdings during the six months ended June 30, 2022. Noncontrolling Interest in Consolidated Joint Venture As of June 30, 2022, the Company had a controlling interest in the Consolidated Joint Venture and, therefore, met the requirements for consolidation. The Company recorded a net loss of $63,000 and paid distributions of $30,000 to the noncontrolling interest during the six months ended June 30, 2022. The Company recorded the noncontrolling interest of $1.0 million and $1.1 million as of June 30, 2022 and December 31, 2021, respectively, on the condensed consolidated balance sheets. Restricted Cash The Company had $61.0 million and $36.8 million in restricted cash as of June 30, 2022 and December 31, 2021, respectively. Included in restricted cash was $5.7 million and $7.8 million held by lenders in lockbox accounts, as of June 30, 2022 and December 31, 2021, 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 $55.3 million and $29.0 million of construction reserves, amounts 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 June 30, 2022 and December 31, 2021, respectively. Real Estate-Related Securities Real estate-related securities consists primarily of the Company’s investments in commercial mortgage-backed securities (“CMBS”) and equity securities. 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 June 30, 2022, the Company classified its investments in CMBS 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 (loss) income. During the six months ended June 30, 2022, the Company invested $259.2 million in CMBS. As of June 30, 2022, the Company had investments in 10 CMBS with an estimated aggregate fair value of $227.4 million. In addition, the Company had an investment in an equity security with an estimated aggregate fair value of $47.0 million as of June 30, 2022, which is comprised of RTL Common Stock (as defined in Note 4 — Real Estate Assets) received as consideration in connection with the Purchase and Sale Agreement. These investments are carried at their estimated fair value with unrealized gains and losses reported on the condensed consolidated statements of operations. Dividends received are recorded in interest income on the condensed consolidated statements of operations. The Company monitors its available-for-sale securities for changes in fair value. A loss 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 current expected 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. During the six months ended June 30, 2022 and 2021, the Company did not record current expected credit losses related to CMBS. 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 income. 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 and six months ended June 30, 2022, the Company capitalized $274,000 and $546,000, respectively, of interest income to real estate-related securities. During the three and six months ended June 30, 2021, the Company capitalized $262,000 and $435,000, respectively, of interest income to real estate-related securities. Loans Held-for-Investment The Company’s loans held-for-investment include loans related to real estate assets, as well as credit investments, including commercial mortgage loans 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 current expected 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 and six months ended June 30, 2022, the Company capitalized $62,000 of interest income to loans held-for-investment. 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 June 30, 2022, the Company did not have nonaccrual loans. Current Expected 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. Current expected credit losses (“CECL”) 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. Changes to current expected 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 current expected credit losses, it does specify current expected credit losses 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 estimates the current expected credit loss for its first mortgage loans primarily using the Weighted Average Remaining Maturity method, which has been identified as an acceptable method for estimating CECL reserves in the Financial Accounting Standards Board (“FASB”) Staff Q&A Topic 326, No. 1. This method requires the Company to reference historic loan loss data across a comparable data set and apply such loss rate to each loan investment over its expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. 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 liquid senior loans and corporate senior loans, the Company uses a probability of default and loss given default method using a comparable data set. 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. 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. 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 six months ended June 30, 2022 and 2021, the Company capitalized $7.2 million and $4.5 million, respectively, of expenses associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets. Included in the amounts capitalized during the six months ended June 30, 2022 and 2021 was $711,000 and $1.8 million, respectively, of capitalized interest expense. Revenue Recognition Revenue from leasing activities Rental and other property income is primarily derived from fixed contractual payments from operating leases, and therefore, is |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
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 Level 1, Level 2 or Level 3 inputs. As of June 30, 2022, the Company concluded that $193.1 million of its CMBS fell under Level 2 and $34.4 million of its CMBS fell under Level 3. The Company’s equity security investment is valued using Level 1 inputs. The estimated fair value of the Company’s equity security is based on quoted market prices that are readily and regularly available in an active market. 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 June 30, 2022, the estimated fair value of the Company’s debt was $4.11 billion, compared to a carrying value of $4.25 billion. The estimated fair value of the Company’s debt as of December 31, 2021 was $4.11 billion, compared to a carrying value of $4.17 billion. Derivative instruments — The Company’s derivative instruments are comprised of interest rate swaps and interest rate caps. 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 June 30, 2022 and December 31, 2021, 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 commercial real estate (“CRE”) loans held-for-investment and corporate senior loans are classified in Level 3 of the fair value hierarchy. The Company’s liquid senior 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 June 30, 2022, $491.3 million and $149.2 million of the Company’s liquid senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2021, $560.4 million and $94.1 million of the Company’s liquid senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of June 30, 2022, the estimated fair value of the Company’s loans held-for-investment and related receivables, net was $3.89 billion, which approximated carrying value. As of December 31, 2021, the estimated fair value of the Company’s loans held-for-investment was $2.63 billion, compared to their carrying value of $2.61 billion. 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. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. The Company does not expect that changes in classifications between levels will be frequent. 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 June 30, 2022 and December 31, 2021 (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 $ 227,425 $ — $ 193,074 $ 34,351 Equity security 46,957 46,957 — — Interest rate caps 2,030 — 2,030 — Interest rate swaps 35 — 35 — Total financial assets $ 276,447 $ 46,957 $ 195,139 $ 34,351 Financial liabilities: Interest rate swaps $ (195) $ — $ (195) $ — Total financial liabilities $ (195) $ — $ (195) $ — 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 $ 41,871 $ — $ — $ 41,871 Preferred units 63,490 — — 63,490 Marketable security 110 110 — — Interest rate caps 179 — 179 — Total financial assets $ 105,650 $ 110 $ 179 $ 105,361 Financial liabilities: Interest rate swaps $ (2,466) $ — $ (2,466) $ — Total financial liabilities $ (2,466) $ — $ (2,466) $ — The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the six months ended June 30, 2022 (in thousands): Level 3 Beginning Balance, January 1, 2022 $ 105,361 Total gains and losses: Unrealized loss included in other comprehensive (loss) income, net (8,687) Purchases and payments received: Conversion of preferred units (1) (68,243) Purchases 4,752 Discounts, net 622 Capitalized interest income 546 Ending Balance, June 30, 2022 $ 34,351 ____________________________________ (1) Reflects the Company’s investment in preferred units which matured during the six months ended June 30, 2022 and was redeemed in exchange for an investment in a first mortgage loan. Refer to Note 8 — Loans Held-For-Investment for further discussion. 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 six months ended June 30, 2022, real estate assets related to 18 properties were deemed to be impaired and their carrying values were reduced to an estimated fair value of $110.5 million, resulting in impairment charges of $11.3 million. Additionally, during the six months ended June 30, 2022, certain condominium units were deemed to be impaired and their carrying values were reduced to their estimated fair value, resulting in impairment charges of $7.9 million. During the six months ended June 30, 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 $31.2 million, resulting in impairment charges of $4.4 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 six months ended June 30, 2022 and 2021: Six Months Ended June 30, 2022 2021 Discount Rate Terminal Capitalization Rate Discount Rate Terminal Capitalization Rate 8.0% – 9.7% 7.5% – 9.2% 7.9% – 9.7% 7.4% – 9.2% The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2022 and 2021 (in thousands): Six Months Ended June 30, 2022 2021 Asset class impaired: Land $ 1,913 $ 781 Buildings, fixtures and improvements 8,453 3,496 Intangible lease assets 980 230 Intangible lease liabilities (4) (130) Condominium developments 7,945 — Total impairment loss $ 19,287 $ 4,377 |
REAL ESTATE ASSETS
REAL ESTATE ASSETS | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE ASSETS | NOTE 4 — REAL ESTATE ASSETS 2022 Property Acquisitions During the six months ended June 30, 2022, the Company did not acquire any properties. 2022 Condominium Development Project During the six months ended June 30, 2022, the Company capitalized $7.2 million of expenses associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets. 2022 Condominium Dispositions During the six months ended June 30, 2022, the Company disposed of condominium units for an aggregate sales price of $22.5 million, resulting in proceeds of $20.6 million after closing costs and a gain of $3.3 million. The Company has no continuing involvement that would preclude sale treatment with these condominium units. The gain on sale of condominium units is included in gain on disposition of real estate and condominium developments, net in the condensed consolidated statements of operations. 2022 Property Dispositions and Real Estate Assets Held for Sale On December 20, 2021, certain subsidiaries of the Company entered into an Agreement of Purchase and Sale, as amended (the “Purchase and Sale Agreement”), with American Finance Trust, Inc. (now known as The Necessity Retail REIT, Inc.) (NASDAQ: RTL) (“RTL”), American Finance Operating Partnership, L.P. (now known as The Necessity Retail REIT Operating Partnership, L.P.) (“RTL OP”), and certain of their subsidiaries (collectively, the “Purchaser”) to sell to the Purchaser 79 shopping centers and two single-tenant properties encompassing approximately 9.5 million gross rentable square feet of commercial space across 27 states for total consideration of $1.32 billion (the “Purchase Price”). The Purchase Price included the Purchaser’s option to seek the assumption of certain existing debt, and Purchaser’s issuance of up to $53.4 million in value of RTL’s Class A common stock, par value $0.01 per share (“RTL Common Stock”), or Class A units in RTL OP (“RTL OP Units”), subject to certain limits described more fully in the Purchase and Sale Agreement. During the six months ended June 30, 2022, the Company disposed of 112 properties, including 55 anchored shopping centers, 54 retail properties, two office buildings and one industrial property, and an outparcel of land for an aggregate gross sales price of $1.55 billion, resulting in proceeds of $1.50 billion after closing costs and a gain of $110.4 million. The sale of 80 of these properties closed pursuant to the Purchase and Sale Agreement for total consideration of $1.3 billion, which consisted of $1.2 billion in cash proceeds and $53.4 million of RTL Common Stock, which shares are subject to certain registration rights as described in the Purchase and Sale Agreement. Such shares are included in real estate-related securities in the condensed consolidated balance sheets. During the six months ended June 30, 2022, the Company recognized earnout income of $74.1 million related to the disposition of these properties pursuant to the Purchase and Sale Agreement, and recorded a related receivable of $51.0 million in prepaid expenses and other assets in the condensed consolidated balance sheets. The Company has no continuing involvement that would preclude sale treatment with these properties. The gain on sale of real estate, including the earnout income, is included in gain on disposition of real estate and condominium developments, net in the condensed consolidated statements of operations. As of June 30, 2022, the Company identified four properties with a carrying value of $76.6 million as held for sale, one of which is in connection with the Purchase and Sale Agreement. Subsequent to June 30, 2022, the Company disposed of these properties, as further discussed in Note 17 — Subsequent Events. 2022 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 six months ended June 30, 2022, 18 properties totaling approximately 800,000 square feet with a carrying value of $121.8 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $110.5 million, resulting in impairment charges of $11.3 million, which were recorded in the condensed consolidated statements of operations. Additionally, during the six months ended June 30, 2022, certain condominium units were deemed to be impaired and their carrying values were reduced to their estimated fair value, resulting in impairment charges of $7.9 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. 2021 Property Acquisitions During the six months ended June 30, 2021, the Company did not acquire any properties. Assets Acquired Via Foreclosure During the six months ended June 30, 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, including certain units that are under development. 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 June 30, 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 10 — Repurchase Facilities, Credit Facilities and Notes Payable. 2021 Condominium Development Project During the six months ended June 30, 2021, the Company capitalized $4.5 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 Condominium Dispositions During the six months ended June 30, 2021, the Company disposed of condominium units for an aggregate sales price of $8.8 million, resulting in proceeds of $8.5 million after closing costs and a gain of $1.5 million. The Company has no continuing involvement that would preclude sale treatment with these condominium units. The gain on sale of condominium units is included in gain on disposition of real estate and condominium developments, net in the condensed consolidated statements of operations. 2021 Property Dispositions and Real Estate Assets Held for Sale During the six months ended June 30, 2021, the Company disposed of 47 retail properties, for an aggregate gross sales price of $304.0 million, resulting in proceeds of $269.0 million after closing costs and a gain of $46.5 million. The Company has no continuing involvement that would preclude sale treatment with these properties. As of June 30, 2021, there were two properties classified as held for sale with a carrying value of $6.1 million included in assets held for sale in the accompanying condensed consolidated balance sheets. Subsequent to June 30, 2021, the Company disposed of these properties. 2021 Impairment During the six months ended June 30, 2021, five properties totaling approximately 165,000 square feet with a carrying value of $35.5 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $31.2 million, resulting in impairment charges of $4.4 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. Consolidated Joint Venture As of June 30, 2022, the Company had an interest in a Consolidated Joint Venture that owned and managed two properties, with total assets of $6.8 million, which included $7.2 million of land, building and improvements and $641,000 of intangible assets, net of accumulated depreciation and amortization of $1.2 million, and total liabilities of $47,000. The Consolidated Joint Venture did not have any debt outstanding as of June 30, 2022. The Company has the ability to control operating and financial policies of the Consolidated Joint Venture. There are restrictions on the use of these assets as the Company would generally be required to obtain the approval of the partner (the “Consolidated Joint Venture Partner”) in accordance with the joint venture agreement for any major transactions. The Company and the Consolidated Joint Venture Partner are subject to the provisions of the joint venture agreement, which includes provisions for when additional contributions may be required to fund certain cash shortfalls. Subsequent to June 30, 2022, the Company disposed of the two properties previously owned through the Consolidated Joint Venture, as further discussed in Note 17 — Subsequent Events. |
INTANGIBLE LEASE ASSETS AND LIA
INTANGIBLE LEASE ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021 (in thousands, except weighted average life remaining): June 30, 2022 December 31, 2021 Intangible lease assets: In-place leases and other intangibles, net of accumulated amortization of $77,745 and $73,923, respectively (both with a weighted average life remaining of 11.4 years) $ 194,473 $ 224,931 Acquired above-market leases, net of accumulated amortization of $3,733 and $3,204, respectively (with a weighted average life remaining of 13.1 years and 13.3 years, respectively) 11,759 12,774 Total intangible lease assets, net $ 206,232 $ 237,705 Intangible lease liabilities: Acquired below-market leases, net of accumulated amortization of $4,922 and $9,043, respectively (with a weighted average life remaining of 12.8 years and 11.5 years, respectively) $ 20,337 $ 24,896 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 and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 In-place lease and other intangible amortization $ 6,326 $ 7,428 $ 13,112 $ 15,201 Above-market lease amortization $ 305 $ 599 $ 621 $ 1,249 Below-market lease amortization $ 484 $ 1,377 $ 1,063 $ 2,843 As of June 30, 2022, 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 2022 $ 12,128 $ 573 $ 959 2023 23,167 1,140 1,865 2024 21,696 1,035 1,739 2025 18,734 975 1,667 2026 16,961 930 1,646 Thereafter 101,787 7,106 12,461 Total $ 194,473 $ 11,759 $ 20,337 |
INVESTMENTS IN UNCONSOLIDATED E
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | NOTE 6 — INVESTMENTS IN UNCONSOLIDATED ENTITIES On December 16, 2021, as a result of the merger with CIM Income NAV, Inc. (“CIM Income NAV”) (the “CIM Income NAV Merger”), the Company acquired a limited partnership interest in CIM UII Onshore. CIM UII Onshore’s sole purpose is to invest all of its assets in CIM Urban Income Investments, L.P. (“CIM Urban Income”), which is a private institutional fund that acquires, owns and operates substantially stabilized, diversified real estate and real estate-related assets in urban markets primarily located throughout North America. During the three and six months ended June 30, 2022, the Company recognized an equity method net gain of $5.2 million related to its investment in CIM UII Onshore. The Company recognized distributions of $531,000 related to its investment in CIM UII Onshore during the six months ended June 30, 2022, all of which was recognized as a return on investment. On March 31, 2022, the Company fully redeemed its $60.7 million investment in CIM UII Onshore, which represented less than 5% ownership of CIM UII Onshore and approximated fair value. As of June 30, 2022, the Company received 100% of the redemption proceeds. Additionally, during the year ended December 31, 2021, the Company entered into the Unconsolidated Joint Venture, of which the Company owns 50% of the outstanding equity. The Unconsolidated Joint Venture holds 90% of the membership interest in the NewPoint JV. Through the Unconsolidated Joint Venture, the Company has a 45% interest in the NewPoint JV and accounts for its investment under the equity method. The primary purpose of the NewPoint JV is to source, underwrite, close and service on an ongoing basis multifamily bridge loans, participation interests, and other debt instruments such as loans. As of June 30, 2022, the carrying value of the Company’s investment in NP JV Holdings was $96.2 million, which approximates fair value and is included in investments in unconsolidated entities on the condensed consolidated balance sheets. The Company received $2.1 million in distributions related to its investment in NP JV Holdings during the six months ended June 30, 2022, $1.5 million of which was recognized as a return on investment and $614,000 of which was recognized as a return of investment and reduced the invested capital and the carrying amount. |
REAL ESTATE-RELATED SECURITIES
REAL ESTATE-RELATED SECURITIES | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE-RELATED SECURITIES | NOTE 7 — REAL ESTATE-RELATED SECURITIES As of June 30, 2022, the Company had real estate-related securities with an aggregate estimated fair value of $274.4 million, which included 10 CMBS investments and an investment in a publicly-traded equity security. The CMBS mature on various dates from March 2024 through June 2058 and have interest rates ranging from 5.4% to 7.6%, with one CMBS earning a zero coupon rate. The following is a summary of the Company’s real estate-related securities as of June 30, 2022 (in thousands): Real Estate-Related Securities Amortized Cost Basis Unrealized Loss Fair Value CMBS $ 240,415 $ (12,990) $ 227,425 Equity security 53,388 (6,431) 46,957 Total real estate-related securities $ 293,803 $ (19,421) $ 274,382 The following table provides the activity for the real estate-related securities during the six months ended June 30, 2022 (in thousands): Amortized Cost Basis Unrealized Gain (Loss) Fair Value Real estate-related securities as of January 1, 2022 $ 102,674 $ 2,797 $ 105,471 Face value of real estate-related securities acquired 258,820 — 258,820 Investment in preferred units, net (1) (63,490) — (63,490) Premiums and discounts on purchase of real estate-related securities, net of acquisition costs (4,374) — (4,374) Amortization of discount on real estate-related securities 987 — 987 Realized gain on sale of real estate-related securities (110) (22) (132) Capitalized interest income on real estate-related securities 546 — 546 Principal payments received on real estate-related securities (1,250) — (1,250) Unrealized loss on real estate-related securities — (22,196) (22,196) Real estate-related securities as of June 30, 2022 $ 293,803 $ (19,421) $ 274,382 ____________________________________ (1) Included in this balance is $68.2 million of the Company’s investment in preferred units which were redeemed during the six months ended June 30, 2022 in exchange for an investment in a first mortgage loan, as further discussed in Note 8 — Loans Held-For-Investment. During the six months ended June 30, 2022, the Company invested $259.2 million in CMBS. During the same period, the Company sold one marketable security with an aggregate carrying value of $110,000 resulting in net proceeds of $132,000 and a gain of $22,000. The Company also received $53.4 million in an equity security during the six months ended June 30, 2022 as consideration in connection with the Purchase and Sale Agreement. Unrealized gains and losses on CMBS are recorded in other comprehensive (loss) income, 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. Unrealized gains and losses on the equity security are reported on the condensed consolidated statements of operations. During the six months ended June 30, 2022, the Company recorded $22.2 million of unrealized loss on its real estate-related securities, $15.8 million of which is included in other comprehensive (loss) income in the accompanying condensed consolidated statements of comprehensive income. The remaining $6.4 million of unrealized loss on the Company’s equity security is included in interest expense and other, net in the accompanying condensed consolidated statements of operations. The scheduled maturities of the Company’s CMBS as of June 30, 2022 are as follows (in thousands): CMBS Amortized Cost Estimated Fair Value Due within one year $ — $ — Due after one year through five years 200,175 193,074 Due after five years through ten years — — Due after ten years 40,240 34,351 Total $ 240,415 $ 227,425 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 June 30, 2022, the Company had no credit losses related to real estate-related securities. |
LOANS HELD-FOR-INVESTMENT
LOANS HELD-FOR-INVESTMENT | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
LOANS HELD-FOR-INVESTMENT | NOTE 8 — LOANS HELD-FOR-INVESTMENT The Company’s loans held-for-investment consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): As of June 30, As of December 31, 2022 2021 First mortgage loans (1) $ 3,171,155 $ 1,968,585 Total CRE loans held-for-investment and related receivables, net 3,171,155 1,968,585 Liquid senior loans 684,866 655,516 Corporate senior loans 55,218 — Loans held-for-investment and related receivables, net $ 3,911,239 $ 2,624,101 Less: Current expected credit losses $ (23,935) $ (15,201) Total loans held-for-investment and related receivable, net $ 3,887,304 $ 2,608,900 ____________________________________ (1) As of June 30, 2022, first mortgage loans included $20.1 million of contiguous mezzanine loan components that, as a whole, have expected credit quality similar to that of a first mortgage loan. The following table details overall statistics for the Company’s loans held-for-investment as of June 30, 2022 and December 31, 2021 (dollar amounts in thousands): CRE Loans (1) (2) Liquid Senior Loans Corporate Senior Loans June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Number of loans 28 22 309 295 4 — Principal balance $ 3,196,721 $ 1,985,722 $ 688,965 $ 659,007 $ 55,801 $ — Net book value $ 3,158,080 $ 1,958,655 $ 674,677 $ 650,245 $ 54,547 $ — Weighted-average interest rate 4.5 % 3.3 % 5.1 % 3.7 % 7.8 % — % Weighted-average maximum years to maturity 4.1 4.3 5.0 5.1 5.3 0.0 Unfunded loan commitments (3) $ 364,221 $ 209,368 $ 2,031 $ 1,562 $ 6,649 $ — ____________________________________ (1) As of June 30, 2022, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to U.S. dollar LIBOR and the Secured Overnight Financing Rate (“SOFR”). (2) Maximum maturity date assumes all extension options are exercised by the borrowers; however, the Company’s CRE loans may be repaid prior to such date. (3) Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying condensed consolidated balance sheets. This balance does not include unsettled liquid senior loan purchases of $22.4 million that are included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. Activity relating to the Company’s loans held-for-investment portfolio was as follows (in thousands): CRE Loans Liquid Senior Loans Corporate Senior Loans Total Loan Portfolio Balance, January 1, 2022 $ 1,958,655 $ 650,245 $ — $ 2,608,900 Loan originations and acquisitions (1) 1,291,847 111,546 55,851 1,459,244 Sale of loans — (35,460) — (35,460) Principal repayments received (2) (80,911) (46,140) (50) (127,101) Capitalized interest 62 — — 62 Deferred fees and other items (3) (13,367) (1,176) (600) (15,143) Accretion and amortization of fees and other items 4,938 581 17 5,536 Current expected credit losses (3,144) (4,919) (671) (8,734) Balance, June 30, 2022 $ 3,158,080 $ 674,677 $ 54,547 $ 3,887,304 ____________________________________ (1) The Company’s investment in preferred units, which was previously recorded in real estate-related securities on the accompanying condensed consolidated balance sheets, was redeemed during the six months ended June 30, 2022 in exchange for an investment in a first mortgage loan. The converted investment in preferred units of $68.2 million is included in the CRE loans balance with an all-in-rate of 8.0% and an initial maturity date of October 9, 2023. (2) Includes the repayment of a $80.9 million first mortgage loan prior to the maturity date. (3) Other items primarily consist of purchase discounts or premiums, accretion of exit fees and deferred origination expenses. Current Expected Credit Losses Current expected credit losses reflect 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 current expected credit losses. The following table presents the activity in the Company’s current expected credit losses by loan type for the six months ended June 30, 2022 (in thousands): First Mortgage Loans Unfunded First Mortgage Loans (1) Liquid Senior Loans Unfunded or Unsettled Liquid Senior Loans (1) Corporate Senior Loans Unfunded Corporate Senior Loans (1) Total Current expected credit losses as of January 1, 2022 $ 9,930 $ — $ 5,271 $ — $ — $ — $ 15,201 Provision for credit losses 1,312 360 2,581 400 56 — 4,709 Current expected credit losses as of March 31, 2022 $ 11,242 $ 360 $ 7,852 $ 400 $ 56 $ — $ 19,910 Provision for credit losses 1,832 170 2,338 (96) 615 83 4,942 Current expected credit losses as of June 30, 2022 $ 13,074 $ 530 $ 10,190 $ 304 $ 671 $ 83 $ 24,852 ____________________________________ (1) Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable in the condensed consolidated balance sheets. Changes to current expected credit losses are recognized through net income 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. Current expected credit losses for financial instruments that are troubled 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. Risk Ratings 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 ratio, 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 June 30, 2022 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 June 30, 2022 Number of Loans 2022 2021 2020 2019 Total First mortgage loans by internal risk rating: 1 — $ — $ — $ — $ — $ — 2 — — — — — — 3 28 1,171,306 1,803,406 147,736 48,707 3,171,155 4 — — — — — — 5 — — — — — — Total first mortgage loans 28 1,171,306 1,803,406 147,736 48,707 3,171,155 Liquid senior loans by internal risk rating: 1 — — — — — — 2 2 — — 5,325 — 5,325 3 301 89,497 338,809 235,780 3,024 667,110 4 6 3,306 — 9,125 — 12,431 5 — — — — — — Total liquid senior loans 309 92,803 338,809 250,230 3,024 684,866 Corporate senior loans by internal risk rating: 1 — — — — — — 2 — — — — — — 3 4 55,218 — — — 55,218 4 — — — — — — 5 — — — — — — Total corporate senior loans 4 55,218 — — — 55,218 Less: Current expected credit losses (23,935) Total loans held-for-investment and related receivables, net 341 $ 3,887,304 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 | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 9 — 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 six months ended June 30, 2022, one of the Company’s interest rate swap agreements matured, four of the Company’s interest rate cap agreements matured, and the Company terminated one interest rate swap agreement prior to the maturity date. As of June 30, 2022, the Company had one non-designated interest rate cap agreement and three interest rate swap agreements designated as hedging instruments. Subsequent to June 30, 2022, one of the Company’s interest rate swap agreements matured, as further discussed in Note 17 — Subsequent Events. The following table summarizes the terms of the Company’s interest rate cap agreements and interest rate swap agreements as of June 30, 2022 and December 31, 2021 (dollar amounts in thousands): Outstanding Notional Fair Value of Assets (Liabilities) as of Balance Sheet Amount as of Interest Effective Maturity June 30, December 31, Location June 30, 2022 Rates (1) Dates Dates 2022 2021 Interest Rate Cap Prepaid expenses, derivative assets and other assets $ 650,000 5.99% 7/15/2021 7/15/2023 $ 2,030 $ 179 Interest Rate Swaps Prepaid expenses, derivative assets and other assets $ 55,800 3.46% to 4.04% 6/27/2017 to 9/30/2019 7/1/2022 to 9/6/2022 $ 35 $ — Interest Rate Swap Deferred rental income, derivative liabilities and other liabilities $ 100,000 4.99% 10/31/2018 9/6/2022 $ (195) $ (2,466) ____________________________________ (1) The interest rate consists of the underlying index swapped or capped to a fixed rate as of June 30, 2022. 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 derivative instruments 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 has interest rate caps that are used to manage exposure to interest rate movements, but do not meet the requirements to be designated as hedging instruments. The change in fair value of the derivative instruments that are not designated as hedges is recorded directly to earnings in interest expense and other, net on the accompanying condensed consolidated statements of operations. During the six months ended June 30, 2022, the Company had interest rate swaps designated 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 designated as hedges is recorded in other comprehensive (loss) income, 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 and six months ended June 30, 2022, the amount of loss reclassified from other comprehensive (loss) income as an increase to interest expense was $69,000 and $62,000, respectively. For the three and six months ended June 30, 2021, the amount of loss reclassified from other comprehensive (loss) income as an increase to interest expense was $71,000 and $3.2 million, respectively. The total unrealized gain on interest rate swaps of $2.5 million as of June 30, 2022, and the total unrealized gain on interest rate swaps of $152,000 as of December 31, 2021, respectively, is included in accumulated other comprehensive (loss) income in the accompanying condensed consolidated statements of stockholders’ equity. During the next 12 months, the Company estimates that $203,000 will be reclassified from other comprehensive (loss) income 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 |
REPURCHASE FACILITIES, CREDIT F
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE | NOTE 10 — REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE As of June 30, 2022, the Company had $4.2 billion of debt outstanding, including net deferred financing costs, with a weighted average years to maturity of 3.2 years and a weighted average interest rate of 3.3%. 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 June 30, 2022 and December 31, 2021, and the debt activity for the six months ended June 30, 2022 (in thousands): During the Six Months Ended June 30, 2022 Balance as of December 31, 2021 Debt Issuances & Assumptions (1) Repayments & Modifications (2) Accretion & (Amortization) Balance as of Notes payable – fixed rate debt $ 471,967 $ — $ (376,650) (4) $ — $ 95,317 Notes payable – variable rate debt 70,268 314,903 (21,007) — 364,164 First lien mortgage loan 650,000 — (514,728) — 135,272 ABS mortgage notes 770,775 — (3,870) — 766,905 Credit facilities 910,000 372,000 (548,000) — 734,000 Repurchase facilities 1,298,414 928,955 (76,375) — 2,150,994 Total debt 4,171,424 1,615,858 (1,540,630) — 4,246,652 Deferred costs – credit facility (3) (143) (213) — 239 (117) Deferred costs – fixed rate debt and first lien mortgage loan (11,678) — 7,481 1,923 (2,274) Deferred costs – variable rate debt (271) (2,524) — 380 (2,415) Deferred costs – ABS mortgage notes (16,127) — 382 966 (14,779) Total debt, net $ 4,143,205 $ 1,613,121 $ (1,532,767) $ 3,508 $ 4,227,067 ____________________________________ (1) Includes deferred financing costs incurred during the period. (2) In connection with the repayment of certain mortgage notes, the Company recognized a loss on extinguishment of debt of $16.2 million during the six months ended June 30, 2022. (3) Deferred costs related to the term portion of the CIM Income NAV Credit Facility (as defined below). (4) Includes mortgage notes of $313.7 million that were assumed by buyer in connection with disposition of real estate assets. Notes Payable As of June 30, 2022, the fixed rate debt outstanding of $95.3 million included $15.8 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 4.0% to 4.5% per annum. The fixed rate debt outstanding matures on various dates from July 2022 through February 2025. 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 $173.4 million as of June 30, 2022. Each of the mortgage notes payable comprising the fixed rate debt is secured by the respective properties on which the debt was placed. As of June 30, 2022, the Company had $364.2 million of variable rate debt outstanding, which included $314.9 million of borrowings financed through a note on note financing arrangement with Massachusetts Mutual Life Insurance Company (the “Mass Mutual Financing”). In addition, upon completing foreclosure proceedings 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. The variable rate debt outstanding had a weighted average interest rate of 3.8% as of June 30, 2022, and matures on various dates from July 2022 to October 2027. First Lien Mortgage Loan On July 15, 2021, JPMorgan Chase Bank, N.A., as administrative agent (“JPMorgan Chase”), and DBR Investments Co. Limited originated a $650.0 million first lien mortgage loan (the “Mortgage Loan”) to 114 single purpose entities (the “Borrowers”), each of which is an affiliate of the Company and is managed on a day-to-day basis by affiliates of CIM. As of June 30, 2022, the Mortgage Loan is secured by, among other things, cross-collateralized and cross-defaulted first priority mortgages, deeds of trust, security agreements or other similar security instruments on the Borrowers’ fee simple interests in 53 properties, comprised of 52 single-tenant retail properties and one office property. As of June 30, 2022, the aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the notes was $333.9 million. Amounts outstanding on the Mortgage Loan totaled $135.3 million with a weighted average interest rate of 6.0% as of June 30, 2022. The Mortgage Loan is a floating-rate, interest-only, non-recourse loan with a two-year initial term ending on August 9, 2023, with three one-year extension options, subject to certain conditions. ABS Mortgage Notes On July 28, 2021, the Company issued $774.0 million aggregate principal amount of asset backed securities (“ABS”) mortgage notes, Series 2021-1 (the “Class A Notes”) in six classes, as shown below: Class of Notes Initial Principal Balance Note Rate Anticipated Repayment Date Rated Final Payment Date Credit Rating (1) A-1 (AAA) $ 146,400,000 2.09% July 2028 July 2051 AAA (sf) A-2 (AAA) $ 219,600,000 2.57% July 2031 July 2051 AAA (sf) A-3 (AA) $ 39,200,000 2.51% July 2028 July 2051 AA (sf) A-4 (AA) $ 58,800,000 3.04% July 2031 July 2051 AA (sf) A-5 (A) $ 124,000,000 2.91% July 2028 July 2051 A (sf) A-6 (A) $ 186,000,000 3.44% July 2031 July 2051 A (sf) ____________________________________ (1) Reflects credit rating from Standard & Poor’s Financial Services LLC (“Standard & Poor’s”). The collateral pool for the Class A Notes is comprised of 168 of the Company’s double- and triple-net leased single tenant properties, together with the related leases and certain other rights and interests. The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the Class A Notes was $977.3 million. As of June 30, 2022, amounts outstanding on the Class A Notes totaled $766.9 million with a weighted average interest rate of 2.8%. The Company may prepay the Class A Notes in full on or after the payment date beginning in July 2026 for the Class A-1 (AAA) Notes, the Class A-3 (AA) Notes and the Class A-5 (A) Notes, and on or after the payment date in July 2028 for the Class A-2 (AAA) Notes, the Class A-4 (AA) Notes and the Class A-6 (A) Notes. Credit Facilities On December 16, 2021, as a result of the CIM Income NAV Merger, a subsidiary of the Company assumed CIM Income NAV’s obligations pursuant to the credit agreement by and among CIM Income NAV Operating Partnership, LP, the operating partnership of CIM Income NAV (“CIM Income NAV OP”), JPMorgan Chase, as administrative agent, and the lender parties thereto (the “CIM Income NAV Credit Agreement”), including as guarantor under a guaranty provided by CIM Income NAV, and as modified by a modification agreement dated as of September 6, 2017 and subsequently modified following the consummation of the CIM Income NAV Merger by a second modification agreement on December 16, 2021. The CIM Income NAV Credit Agreement allowed for borrowings of up to $425.0 million (the “CIM Income NAV Credit Facility”), including $212.5 million in term loans (the “CIM Income NAV Term Loans”) and up to $212.5 million in revolving loans (the “CIM Income NAV Revolving Loans”). The CIM Income NAV Term Loans and the CIM Income NAV Revolving Loans had a maturity date of September 6, 2022. The Company paid down the $212.5 million outstanding balance under the CIM Income NAV Credit Facility and terminated the CIM Income NAV Credit Facility subsequent to June 30, 2022, as further discussed in Note 17 — Subsequent Events. As of June 30, 2022, the CIM Income NAV Term Loans outstanding totaled $212.5 million, $140.0 million of which was 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 4.6%. As of June 30, 2022, the Company had $212.5 million outstanding under the CIM Income NAV Credit Facility at a weighted average interest rate of 4.2% and $212.5 million in unused capacity, subject to borrowing availability. CMFT Corporate Credit Securities, LLC, an indirect wholly-owned, bankruptcy-remote subsidiary of the Company, has a revolving credit and security agreement (the “Third Amended 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 Third Amended Credit and Security Agreement provides for available borrowings under the revolving credit facility to an aggregate principal amount up to $550.0 million (the “Credit Securities Revolver”). The Credit Securities Revolver may be increased from time to time pursuant to the Third Amended Credit and Security Agreement. As of June 30, 2022, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $521.5 million at a weighted average interest rate of 3.4%. Borrowings under the Third Amended Credit and Security Agreement will bear interest equal to the one-month Term SOFR (as defined in the Third Amended Credit and Security Agreement) for the relevant interest period, plus an applicable rate. The applicable rate is dependent on the type of loan being financed, which includes broadly syndicated, private and middle market loans meeting certain criteria as set forth in the Third Amended Credit and Security Agreement and ranges from 1.90% to 2.75% per annum during the first two years of the reinvestment period and 2.00% to 2.85% during the last year of the reinvestment period and 2.10% to 2.95% per annum during the amortization period (and, in each case, an additional 2.00% per annum following an event of default under the Third Amended Credit and Security Agreement). The reinvestment period began on December 31, 2019 (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 Third Amended Credit and Security Agreement are secured by substantially all of the assets held by CMFT Corporate Credit Securities, LLC, which shall primarily consist of liquid senior secured loans subject to certain eligibility criteria under the Third Amended Credit and Security Agreement. The Company believes it was in compliance with the financial covenants under the Company’s various fixed and variable rate debt agreements, as of June 30, 2022. Repurchase Facilities As of June 30, 2022, indirect wholly-owned subsidiaries of the Company (collectively, the “CMFT Lending Subs”), had Master Repurchase Agreements with Citibank, Barclays Bank PLC (“Barclays”), Wells Fargo Bank, N.A. (“Wells Fargo”), Deutsche Bank AG (“Deutsche Bank”), and J.P. Morgan Securities LLC (“J.P. Morgan”) (collectively, the “Repurchase Agreements”) to provide financing primarily through each bank’s purchase of the Company’s CRE mortgage loans and CMBS and future funding advances (the “Repurchase Facilities”). The following table is a summary of the Repurchase Facilities as of June 30, 2022 (dollar amounts in thousands): Repurchase Facility Date of Agreement Maturity Date (1) Maximum Facility Size (2) Weighted Average Interest Rate Carrying Value of Loans Financed under Repurchase Facility Amount Financed Citibank 6/4/2020 8/17/2024 $ 400,000 3.0% (3) $ 456,225 $ 329,153 Barclays 9/21/2020 9/21/2024 1,250,000 3.1% (3) 1,158,109 912,598 Wells Fargo 5/20/2021 5/19/2024 750,000 2.9% (3) 881,515 690,810 Deutsche Bank 10/8/2021 10/8/2022 300,000 3.5% (4) 186,253 143,023 J.P. Morgan 6/1/2022 7/13/2022 (5) (5) 2.5% (6) 193,075 75,410 Total $ 2,700,000 $ 2,875,177 $ 2,150,994 __________________________________ (1) The repurchase facilities with Citibank, Barclays, and Wells Fargo are set to mature on various dates between May 2024 and September 2024, with up to two one-year extension options, while the repurchase facility with Deutsche Bank (“Deutsche Bank Repurchase Facility”) is set to mature on October 8, 2022, with four one-year extension options, all of which are subject to certain conditions set forth in the Repurchase Agreements . Subsequent to June 30, 2022, the Company exercised the Deutsche Bank Repurchase Facility’s first extension option, extending the date of maturity to October 8, 2023, as discussed in Note 17 — Subsequent Events. (2) During the six months ended June 30, 2022 , the Company increased the repurchase facility with Barclays (the “Barclays Repurchase Facility”) and Wells Fargo (the “Wells Fargo Repurchase Facility”) to provide up to $1.25 billion and $750.0 million, respectively, in financing. (3) Advances under the repurchase agreement accrue interest at per annum rates based on the one-month LIBOR, Term SOFR (as such term is defined in the applicable Repurchase Agreement), 30-day SOFR average, or the daily compounded SOFR plus a spread ranging from 1.25% to 2.15% to be determined on a case-by-case basis between Citibank, Barclays or Wells Fargo and the CMFT Lending Subs. (4) Under the Amended and Restated Master Repurchase Agreement with Deutsche Bank, advances under the repurchase agreement may be made based on one-month Term SOFR plus a spread designated by Deutsche Bank and the interest rate used for certain existing advances under the existing Deutsche Bank Repurchase Facility may be converted from the one-month LIBOR to one-month SOFR plus a spread ranging from 1.90% to 2.75%. (5) Facilities under the Master Repurchase Agreement with J.P. Morgan carry a rolling term which is reset monthly. Such facilities carry no maximum facility size. (6) Under the Master Repurchase Agreement with J.P. Morgan, advances under the repurchase agreement may be made based on one-month Term SOFR plus a spread designated by J.P. Morgan ranging from 1.20% to 1.35%. The Repurchase Agreements provide for simultaneous agreements by Citibank, Barclays, Wells Fargo, Deutsche Bank and J.P. Morgan to re-sell such purchased CRE mortgage loans and CMBS back to CMFT Lending Subs at a certain future date or upon demand. In connection with certain of the Repurchase Agreements, the Company (as the guarantor) entered into guaranties with Citibank, Barclays, Wells Fargo, and Deutsche Bank (the “Guaranties”), under which the Company agreed to guarantee up to 25% of the CMFT Lending Subs’ obligations under certain Repurchase Agreements. 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 June 30, 2022. Maturities The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2022 (in thousands): Principal Repayments Remainder of 2022 $ 500,079 2023 140,235 2024 2,520,151 2025 12,763 2026 — Thereafter 1,073,424 Total $ 4,246,652 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, the Company had $370.9 million of unfunded loan commitments related to its existing CRE loans held-for-investment and corporate senior loans, and $115.7 million of unfunded commitments related to the NewPoint JV. These commitments are not reflected in the accompanying condensed consolidated balance sheet. Unfunded Liquid Senior Loans As of June 30, 2022, the Company had $2.0 million of unfunded liquid senior loans and $22.4 million of unsettled liquid senior loan acquisitions, $14.8 million of which settled subsequent to June 30, 2022. 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 | 6 Months Ended |
Jun. 30, 2022 | |
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. 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 and certain other 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 principally provides investment management services with respect to the corporate credit-related securities held by CMFT Securities and its subsidiaries. The Sub-Advisor may allocate a portion of these corporate credit-related securities to its other clients, including affiliates of CIM. On a quarterly basis, the Investment Advisor designates 50% of the sum of the Investment Advisory Fee and incentive compensation attributable to the assets for which Sub-Advisor has provided investment management services 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 and six months ended June 30, 2022 and 2021, 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. Expense reimbursements to related parties The Company reimburses CMFT Management, the Investment Advisor or their affiliates for certain expenses paid or incurred in connection with the services provided to the Company. The Company will reimburse CMFT Management, the Investment Advisor, or their affiliates for salaries and benefits paid to personnel who provide services to the Company, excluding the Company’s executive officers and any portfolio management, acquisitions or investment professionals. 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Management fees $ 13,351 $ 11,755 $ 26,698 $ 23,332 Expense reimbursements to related parties (1) $ 3,777 $ 3,210 $ 7,471 $ 5,871 ____________________________________ (1) During the six months ended June 30, 2022, the Company paid $461,000 of expense reimbursements attributable to earnout leasing costs under the Purchase and Sale Agreement, which are included in gain on disposition of real estate and condominium developments, net in the condensed consolidated statements of operations. Due to Affiliates Of the amounts shown above, $14.4 million and $16.0 million had been incurred, but not yet paid, for services provided by CMFT Management or its affiliates in connection with the management and operating activities during the six months ended June 30, 2022 and 2021, respectively, and such amounts were recorded as liabilities of the Company as of such dates. 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. During the six months ended June 30, 2022 and 2021, the Company recorded $234,000 and $56,000, respectively, in development management fees. 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 of 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. Affiliated Investments In September 2021, the Company co-invested $68.4 million in preferred units and $138.8 million in a mortgage loan to a third-party for the purchase of a multi-family, office and retail building in Fort Lauderdale, Florida with CIM Real Assets & Credit Fund, a fund that is advised by affiliates of CMFT Management (“CIM RACR”). During the six months ended June 30, 2022, the Company and CIM RACR upsized their investment in the preferred units with an additional $4.8 million and $364,000, respectively, and upsized their investment in the mortgage loan with an additional $6.4 million and $490,000, respectively. The Company subsequently redeemed its investment in the preferred units during the six months ended June 30, 2022 in exchange for an investment in a first mortgage loan. As a result of the upsize and the conversion of preferred units, as of June 30, 2022, the Company had $203.6 million invested in the mortgage loan. In October 2021, the Company invested in a $130.0 million first mortgage loan, with an initial advance of $119.0 million, to a third-party, the proceeds of which were used to finance the acquisition of a property from a fund that is advised by an affiliate of CMFT Management. As of June 30, 2022, $121.2 million of the first mortgage loan was outstanding. An affiliate of CMFT Management serves as the property manager for this property and has entered into a subordination agreement with the Company in connection with the loan. In November 2021, the Company entered into the Unconsolidated Joint Venture (the “MT-FT JV”) with CMMT Holdings, LLC, a fund that is advised by an affiliate of CMFT Management, for the purposes of investing in the NewPoint JV. The Company owns 50% of the equity interests of the MT-FT JV and has committed to fund capital to the MT-FT JV up to $212.5 million, of which $96.8 million has been funded. For more information on the NewPoint JV, see Note 2 — Summary of Significant Accounting Policies. In December 2021, the Company invested in a $155.0 million first mortgage loan, with an initial advance of $154.0 million, to a third-party, the proceeds of which were used to finance the acquisition of a property from a fund that is advised by an affiliate of CMFT Management. As of June 30, 2022, $154.0 million of the first mortgage loan was outstanding. During the six months ended June 30, 2022, the Company invested in a $147.0 million first mortgage loan, with an initial advance of $143.0 million, to a third-party, which was previously funded by a fund that is advised by an affiliate of CMFT Management. As of June 30, 2022, $143.3 million of the first mortgage loan was outstanding. As a result of the CIM Income NAV Merger, the Company had an investment in CIM UII Onshore, a fund that is advised by an affiliate of CMFT Management, which was fully redeemed for $60.7 million during the six months ended June 30, 2022. See Note 2 — Summary of Significant Accounting Policies for more information on the CIM UII Onshore investment. |
ECONOMIC DEPENDENCY
ECONOMIC DEPENDENCY | 6 Months Ended |
Jun. 30, 2022 | |
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 | 6 Months Ended |
Jun. 30, 2022 | |
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 “2018 Plan”), under which 400,000 of the Company’s shares of common stock were reserved for issuance and awards of approximately 284,000 shares of common stock were available for future grant at June 30, 2022. On April 27, 2022, the Board and the compensation committee of the Board approved the Amended and Restated CIM Real Estate Finance Trust, Inc. 2022 Equity Incentive Plan (the “2022 Plan”) and the 2022 Plan was approved by the Company’s stockholders at the Company’s 2022 Annual Meeting of Stockholders held on July 12, 2022. The 2022 Plan supersedes and replaces the 2018 Plan. Awards that are granted on or after the effective date of the 2022 Plan are subject to the terms and provisions of the 2022 Plan. The total number of shares of Company common stock reserved and available for issuance under the 2022 Plan at any time during the term of the 2022 Plan are 250,000 shares, which is a reduction from 400,000 shares authorized for issuance under the 2018 Plan. Under the 2022 Plan, the Board or the compensation committee of the Board has the authority to grant certain awards to employees, non-employee directors, and consultants or advisors of the Company, including stock option awards, restricted stock awards or deferred stock awards, which awards will further align such persons’ interests with the interests of the Company’s stockholders. The Board or the compensation committee of the Board also has the authority to determine the terms of any award granted pursuant to the 2022 Plan, including vesting schedules, restrictions and acceleration of any restrictions. The 2022 Plan may be amended or terminated by the Board or the compensation committee of the Board at any time, subject to the right of the Company’s stockholders to approve certain amendments. As of June 30, 2022, the Company has granted awards of approximately 116,000 restricted shares in the aggregate to the independent members of the Board under the 2018 Plan. As of June 30, 2022, 73,000 of the restricted shares had vested based on one year of continuous service. The remaining 43,000 restricted shares issued had not vested or been forfeited as of June 30, 2022. 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 $120,000 and $157,000 for the three and six months ended June 30, 2022, respectively, and $49,000 and $89,000 for the three and six months ended June 30, 2021, respectively, related to the restricted shares, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. As of June 30, 2022, there was $285,000 of total unrecognized compensation expense related to these restricted shares, which will be recognized ratably over the applicable remaining service period. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, the Company’s leases had a weighted-average remaining term of 10.6 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 June 30, 2022, 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 2022 $ 79,395 2023 158,069 2024 156,089 2025 152,295 2026 148,093 Thereafter 1,110,635 Total $ 1,804,576 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 and six months ended June 30, 2022 and 2021, the amount of the contingent rent earned by the Company was not significant . Rental and other property income during the three and six months ended June 30, 2022 and 2021 consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed rental and other property income (1) $ 47,941 $ 64,060 $ 112,647 $ 130,601 Variable rental and other property income (2) 5,567 11,242 14,597 21,631 Total rental and other property income $ 53,508 $ 75,302 $ 127,244 $ 152,232 __________________________________ (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 11.2 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities prepaid expenses, derivative assets and other assets The Company recognized $63,000 and $125,000 of ground lease expense during the three and six months ended June 30, 2022, of which $61,000 and $121,000 was paid in cash during the period it was recognized. As of June 30, 2022, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $125,000 for the remainder of 2022, $250,000 annually for 2023 through 2027, and $1.4 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 June 30, 2022, the Company’s leases had a weighted-average remaining term of 10.6 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 June 30, 2022, 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 2022 $ 79,395 2023 158,069 2024 156,089 2025 152,295 2026 148,093 Thereafter 1,110,635 Total $ 1,804,576 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 and six months ended June 30, 2022 and 2021, the amount of the contingent rent earned by the Company was not significant . Rental and other property income during the three and six months ended June 30, 2022 and 2021 consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed rental and other property income (1) $ 47,941 $ 64,060 $ 112,647 $ 130,601 Variable rental and other property income (2) 5,567 11,242 14,597 21,631 Total rental and other property income $ 53,508 $ 75,302 $ 127,244 $ 152,232 __________________________________ (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 11.2 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities prepaid expenses, derivative assets and other assets The Company recognized $63,000 and $125,000 of ground lease expense during the three and six months ended June 30, 2022, of which $61,000 and $121,000 was paid in cash during the period it was recognized. As of June 30, 2022, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $125,000 for the remainder of 2022, $250,000 annually for 2023 through 2027, and $1.4 million thereafter through the maturity date of the lease in August 2033. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2022 | |
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 and six months ended June 30, 2022 and 2021 (in thousands): Real Estate Credit Corporate/Other (1) Company Total Three Months Ended June 30, 2022 Rental and other property income $ 53,405 $ — $ 103 $ 53,508 Interest income — 44,984 — 44,984 Total revenues 53,405 44,984 103 98,492 General and administrative 130 (61) 3,611 3,680 Property operating 4,155 — 1,094 5,249 Real estate tax 1,515 — 509 2,024 Expense reimbursements to related parties — — 3,777 3,777 Management fees 5,196 8,155 — 13,351 Transaction-related 430 — 16 446 Depreciation and amortization 18,015 — — 18,015 Real estate impairment 8,051 — 7,945 15,996 Increase in provision for credit losses — 4,942 — 4,942 Total operating expenses 37,492 13,036 16,952 67,480 Gain (loss) on disposition of real estate and condominium developments, net 81,181 — (74) 81,107 Operating income (loss) 97,094 31,948 (16,923) 112,119 Other expense: Gain on investment in unconsolidated entities — 1,323 — 1,323 Interest expense and other, net (9,169) (21,698) (3,593) (34,460) Loss on extinguishment of debt (2,257) — (3,112) (5,369) Segment net income (loss) $ 85,668 $ 11,573 $ (23,628) $ 73,613 Net income allocated to noncontrolling interest (72) — — (72) Segment net income (loss) attributable to the Company 85,740 11,573 (23,628) 73,685 Total assets as of June 30, 2022 $ 2,399,845 $ 4,375,338 $ 255,468 $ 7,030,651 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. Real Estate Credit Corporate/Other (1) (2) Company Total Six Months Ended June 30, 2022 Rental and other property income $ 127,044 $ — $ 200 $ 127,244 Interest income — 76,447 — 76,447 Total revenues 127,044 76,447 200 203,691 General and administrative 279 169 6,707 7,155 Property operating 11,292 — 1,684 12,976 Real estate tax 7,866 — 871 8,737 Expense reimbursements to related parties — — 7,471 7,471 Management fees 12,327 14,371 — 26,698 Transaction-related 437 — 16 453 Depreciation and amortization 37,156 — — 37,156 Real estate impairment 11,342 — 7,945 19,287 Increase in provision for credit losses — 9,651 — 9,651 Total operating expenses 80,699 24,191 24,694 129,584 Gain on disposition of real estate and condominium developments, net 110,446 — 3,235 113,681 Operating income (loss) 156,791 52,256 (21,259) 187,788 Other expense: Gain on investment in unconsolidated entities — 1,491 5,172 6,663 Interest expense and other, net (23,010) (35,612) (6,875) (65,497) Loss on extinguishment of debt (12,994) — (3,246) (16,240) Segment net income (loss) $ 120,787 $ 18,135 $ (26,208) $ 112,714 Net income allocated to noncontrolling interest (63) — — (63) Segment net income (loss) attributable to the Company 120,850 18,135 (26,208) 112,777 Total assets as of June 30, 2022 $ 2,399,845 $ 4,375,338 $ 255,468 $ 7,030,651 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. (2) Includes the Company’s investment in CIM UII Onshore. Real Estate Credit Corporate/Other (1) Company Total Three Months Ended June 30, 2021 Rental and other property income $ 75,203 $ — $ 99 $ 75,302 Interest income — 16,460 — 16,460 Total revenues 75,203 16,460 99 91,762 General and administrative 55 331 3,219 3,605 Property operating 7,613 — 3,743 11,356 Real estate tax 7,196 — 510 7,706 Expense reimbursements to related parties — — 3,210 3,210 Management fees 8,533 3,222 — 11,755 Transaction-related 27 — — 27 Depreciation and amortization 24,647 — — 24,647 Real estate impairment 77 — — 77 Increase in provision for credit losses — 123 — 123 Total operating expenses 48,148 3,676 10,682 62,506 Gain on disposition of real estate and condominium developments, net 44,976 — 1,493 46,469 Operating income (loss) 72,031 12,784 (9,090) 75,725 Other expense: Interest expense and other, net (3,713) (3,341) (9,406) (16,460) Loss on extinguishment of debt (1,372) — (106) (1,478) Segment net income (loss) $ 66,946 $ 9,443 $ (18,602) $ 57,787 Total assets as of June 30, 2021 $ 3,089,744 $ 1,479,061 $ 280,357 $ 4,849,162 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 — SUBSEQUENT EVENTS Redemptions of Shares of Common Stock Subsequent to June 30, 2022, the Company redeemed approximately 1.3 million shares for $9.4 million (at a redemption price of $7.20 per share). The remaining redemption requests received during the three months ended June 30, 2022 totaling approximately 23.1 million shares went unfulfilled. Investment and Disposition Activity Subsequent to June 30, 2022, the Company’s investment and disposition activity included the following: • Disposed of the final property under contract for sale pursuant to the Purchase and Sale Agreement for total consideration of $68.3 million. • In addition to the property disposed of pursuant to the Purchase and Sale Agreement, the Company disposed of seven properties and condominium units for an aggregate gross sales price of $36.9 million, resulting in net proceeds of $33.3 million after closing costs and a net gain of approximately $1.6 million. • Invested $20.0 million in a corporate senior loan to a third-party and received principal repayments of $17.6 million. • Purchased $4.4 million in CMBS. • Settled $37.7 million of liquid senior loan transactions, $14.1 million of which were traded as of June 30, 2022. • Contributed an additional $5.4 million in capital to NP JV Holdings. Financing Activity Subsequent to June 30, 2022, the Company’s financing activity included the following: • Financed one of the Company’s first mortgage loans under the Mass Mutual Financing arrangement for $60.8 million. • Extended the maturity date on $49.3 million of its mortgage note payable that was set to mature in July 2022, extending the date of maturity to September 1, 2022. • Exercised the Deutsche Bank Repurchase Facility’s first extension option which was set to mature on October 8, 2022, extending the date of maturity to October 8, 2023. • Paid down the $212.5 million outstanding balance under the CIM Income NAV Credit Facility and terminated the CIM Income NAV Credit Facility. In connection with the facility pay down and termination, the Company terminated two interest rate swap agreements that held an aggregate notional value of $140.0 million upon termination. • Entered into a credit agreement with JPMorgan Chase, which provides for borrowings of $300.0 million, which includes a $100.0 million term loan facility and the ability to borrow up to $200.0 million in revolving loans under a revolving credit facility with a $30.0 million letter of credit subfacility. The term loan and the revolving facility both mature on July 15, 2025. • Borrowed $215.0 million under the credit agreement entered into with JPMorgan Chase subsequent to June 30, 2022 and repaid $100.0 million of such borrowings. • One of the Company’s interest rate swap agreements matured and the Company repaid in full $15.8 million of the underlying mortgage notes payable. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
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, 2021, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. 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, its wholly-owned subsidiaries, and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. In determining whether the Company has controlling interests in an entity and the requirement to consolidate the accounts in that entity, the Company analyzes its credit and real estate investments in accordance with standards set forth in GAAP to determine whether they are variable interest entities (“VIEs”), and if so, whether the Company is the primary beneficiary. The Company’s judgment with respect to its level of influence or control over an entity and whether the Company is the primary beneficiary of a VIE involves consideration of various factors, including the form of the Company’s ownership interest, the Company’s voting interest, the size of the Company’s investment (including loans), and the Company’s ability to participate in major policy-making decisions. The Company’s ability to correctly assess its influence or control over an entity affects the presentation of these credit and real estate investments on the Company’s condensed consolidated financial statements. As of June 30, 2022, the Company has determined that the Consolidated Joint Venture is considered a VIE. Applying the consolidation requirements for VIEs, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits and therefore met the requirements for consolidation. |
Reclassifications | ReclassificationsCertain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. Other than as shown below, 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. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities On March 31, 2022, the Company fully redeemed its $60.7 million investment in CIM UII Onshore, L. P. (“CIM UII Onshore”) and received 100% of the $60.7 million redemption proceeds as of June 30, 2022. Prior to redemption, the Company had less than 5% ownership of CIM UII Onshore and accounted for its investment under the equity method. The equity method of accounting requires the investment to be initially recorded at cost, including transaction costs incurred to finalize the investment, and subsequently adjusted for the Company’s share of equity in CIM UII Onshore’s earnings and distributions. Prior to redemption, the Company recorded its share of CIM UII Onshore’s profits or losses on a quarterly basis as an adjustment to the carrying value of the investment on the Company’s condensed consolidated balance sheet and such share is recognized as a profit or loss on the condensed consolidated statements of operations. The Company recorded its share of CIM UII Onshore’s gain, totaling $5.2 million during the six months ended June 30, 2022, in the condensed consolidated statements of operations. During the six months ended June 30, 2022, the Company received distributions of $531,000 related to its investment in CIM UII Onshore, all of which was recognized as a return on investment. As of December 31, 2021, the Company’s investment in CIM UII Onshore had a carrying value of $56.0 million. CMFT MT JV Holdings, LLC, an indirect wholly-owned subsidiary of the Company, is engaged in an unconsolidated joint venture arrangement through CIM NP JV Holdings, LLC (“NP JV Holdings”) (the “Unconsolidated Joint Venture”), of which it owns 50% of the outstanding equity. Through the Unconsolidated Joint Venture, which holds 90% of the membership interest in NewPoint JV, LLC (the “NewPoint JV”) pursuant to the terms of the Operating Agreement entered into between the Unconsolidated Joint Venture and NewPoint Bridge Lending, LLC, the Company indirectly owns 45% of the outstanding equity of the NewPoint JV on a fully diluted basis. The Company accounts for its investment under the equity method. The equity method of accounting requires the investment to be initially recorded at cost, including transaction costs incurred to finalize the investment, and is subsequently adjusted for the Company’s share of equity in NP JV Holdings’ earnings and distributions, including unrealized gains and losses as a result of changes in fair value of the NewPoint JV. The Company records its share of NP JV Holdings’ profits or losses on a quarterly basis as an adjustment to the carrying value of the investment on the Company’s condensed consolidated balance sheet and such share is recognized as a profit or loss on the condensed consolidated statements of operations. The Company recorded a gain totaling $1.5 million, which represented its share of NP JV Holdings’ gain, during the six months ended June 30, 2022 in the condensed consolidated statements of operations. During the six months ended June 30, 2022, the Company contributed an additional $43.3 million in NP JV Holdings. As of June 30, 2022, the Company’s aggregate investment in NP JV Holdings of $96.2 million is included in investment in unconsolidated entities on the condensed consolidated balance sheets. The Company received $2.1 million in distributions related to its investment in the NP JV Holdings during the six months ended June 30, 2022. |
Noncontrolling Interest in Consolidated Joint Venture | Noncontrolling Interest in Consolidated Joint Venture As of June 30, 2022, the Company had a controlling interest in the Consolidated Joint Venture and, therefore, met the requirements for consolidation. The Company recorded a net loss of $63,000 and paid distributions of $30,000 to the noncontrolling interest during the six months ended June 30, 2022. The Company recorded the noncontrolling interest of $1.0 million and $1.1 million as of June 30, 2022 and December 31, 2021, respectively, on the condensed consolidated balance sheets. |
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 Securities Real estate-related securities consists primarily of the Company’s investments in commercial mortgage-backed securities (“CMBS”) and equity securities. 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 June 30, 2022, the Company classified its investments in CMBS 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 The Company monitors its available-for-sale securities for changes in fair value. A loss 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 current expected 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. During the six months ended June 30, 2022 and 2021, the Company did not record current expected credit losses related to CMBS. 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 income. 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 and six months ended June 30, 2022, the Company capitalized $274,000 and $546,000, respectively, of interest income to real estate-related securities. During the three and six months ended June 30, 2021, the Company capitalized $262,000 and $435,000, respectively, of interest income to real estate-related securities. |
Loans Held-for-Investment | Loans Held-for-Investment The Company’s loans held-for-investment include loans related to real estate assets, as well as credit investments, including commercial mortgage loans 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 current expected 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. |
Current Expected Credit Losses | Current Expected 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. Current expected credit losses (“CECL”) 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. Changes to current expected 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 current expected credit losses, it does specify current expected credit losses 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 estimates the current expected credit loss for its first mortgage loans primarily using the Weighted Average Remaining Maturity method, which has been identified as an acceptable method for estimating CECL reserves in the Financial Accounting Standards Board (“FASB”) Staff Q&A Topic 326, No. 1. This method requires the Company to reference historic loan loss data across a comparable data set and apply such loss rate to each loan investment over its expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. 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 liquid senior loans and corporate senior loans, the Company uses a probability of default and loss given default method using a comparable data set. 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. 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 six months ended June 30, 2022 and 2021, the Company capitalized $7.2 million and $4.5 million, respectively, of expenses associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets. Included in the amounts capitalized during the six months ended June 30, 2022 and 2021 was $711,000 and $1.8 million, respectively, of capitalized interest expense. |
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 liquid senior loans is accrued as earned beginning on the settlement date. |
Reportable Segments | Reportable Segments The Company’s segment information reflects how the chief operating decision makers review information for operational decision-making purposes. The Company has two reportable segments: Credit — engages primarily in acquiring and originating loans, either directly or through co-investments in joint ventures, 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 real estate-related securities, liquid senior loans and corporate senior 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 January 2021, 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. In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
Fair Value Measurement | 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 Level 1, Level 2 or Level 3 inputs. As of June 30, 2022, the Company concluded that $193.1 million of its CMBS fell under Level 2 and $34.4 million of its CMBS fell under Level 3. The Company’s equity security investment is valued using Level 1 inputs. The estimated fair value of the Company’s equity security is based on quoted market prices that are readily and regularly available in an active market. 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 June 30, 2022, the estimated fair value of the Company’s debt was $4.11 billion, compared to a carrying value of $4.25 billion. The estimated fair value of the Company’s debt as of December 31, 2021 was $4.11 billion, compared to a carrying value of $4.17 billion. Derivative instruments — The Company’s derivative instruments are comprised of interest rate swaps and interest rate caps. 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 June 30, 2022 and December 31, 2021, 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 commercial real estate (“CRE”) loans held-for-investment and corporate senior loans are classified in Level 3 of the fair value hierarchy. The Company’s liquid senior 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 June 30, 2022, $491.3 million and $149.2 million of the Company’s liquid senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2021, $560.4 million and $94.1 million of the Company’s liquid senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of June 30, 2022, the estimated fair value of the Company’s loans held-for-investment and related receivables, net was $3.89 billion, which approximated carrying value. As of December 31, 2021, the estimated fair value of the Company’s loans held-for-investment was $2.63 billion, compared to their carrying value of $2.61 billion. 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. The Company evaluates its hierarchy disclosures each quarter and depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. The Company does not expect that changes in classifications between levels will be frequent. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The reclassifications have been made to the condensed consolidated balance sheet as of December 31, 2021, and to the condensed consolidated statement of cash flows for the six months ended June 30, 2021 as follows (in thousands): As of December 31, 2021 As previously reported Reclassifications As Revised Condensed Consolidated Balance Sheets Rents and tenant receivables, net $ 61,468 $ (2,520) $ 58,948 Prepaid expenses and other assets $ 13,759 $ 2,520 $ 16,279 Six Months Ended June 30, 2021 As previously reported Reclassifications As Revised Condensed Consolidated Statements of Cash Flows Rents and tenant receivables, net $ 15,315 $ 151 $ 15,466 Prepaid expenses and other assets $ (6,083) $ (151) $ (6,234) |
Summary of Estimated Useful Lives of Real Estate Assets By Class | 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) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured 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 June 30, 2022 and December 31, 2021 (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 $ 227,425 $ — $ 193,074 $ 34,351 Equity security 46,957 46,957 — — Interest rate caps 2,030 — 2,030 — Interest rate swaps 35 — 35 — Total financial assets $ 276,447 $ 46,957 $ 195,139 $ 34,351 Financial liabilities: Interest rate swaps $ (195) $ — $ (195) $ — Total financial liabilities $ (195) $ — $ (195) $ — 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 $ 41,871 $ — $ — $ 41,871 Preferred units 63,490 — — 63,490 Marketable security 110 110 — — Interest rate caps 179 — 179 — Total financial assets $ 105,650 $ 110 $ 179 $ 105,361 Financial liabilities: Interest rate swaps $ (2,466) $ — $ (2,466) $ — Total financial liabilities $ (2,466) $ — $ (2,466) $ — |
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 six months ended June 30, 2022 (in thousands): Level 3 Beginning Balance, January 1, 2022 $ 105,361 Total gains and losses: Unrealized loss included in other comprehensive (loss) income, net (8,687) Purchases and payments received: Conversion of preferred units (1) (68,243) Purchases 4,752 Discounts, net 622 Capitalized interest income 546 Ending Balance, June 30, 2022 $ 34,351 ____________________________________ (1) Reflects the Company’s investment in preferred units which matured during the six months ended June 30, 2022 and was redeemed in exchange for an investment in a first mortgage loan. Refer to Note 8 — Loans Held-For-Investment for further discussion. |
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 six months ended June 30, 2022 and 2021: Six Months Ended June 30, 2022 2021 Discount Rate Terminal Capitalization Rate Discount Rate Terminal Capitalization Rate 8.0% – 9.7% 7.5% – 9.2% 7.9% – 9.7% 7.4% – 9.2% |
Summary of Impairment Charges by Asset Class | The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2022 and 2021 (in thousands): Six Months Ended June 30, 2022 2021 Asset class impaired: Land $ 1,913 $ 781 Buildings, fixtures and improvements 8,453 3,496 Intangible lease assets 980 230 Intangible lease liabilities (4) (130) Condominium developments 7,945 — Total impairment loss $ 19,287 $ 4,377 |
REAL ESTATE ASSETS (Tables)
REAL ESTATE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 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) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-lived Intangible Assets and Liabilities | Intangible lease assets and liabilities consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands, except weighted average life remaining): June 30, 2022 December 31, 2021 Intangible lease assets: In-place leases and other intangibles, net of accumulated amortization of $77,745 and $73,923, respectively (both with a weighted average life remaining of 11.4 years) $ 194,473 $ 224,931 Acquired above-market leases, net of accumulated amortization of $3,733 and $3,204, respectively (with a weighted average life remaining of 13.1 years and 13.3 years, respectively) 11,759 12,774 Total intangible lease assets, net $ 206,232 $ 237,705 Intangible lease liabilities: Acquired below-market leases, net of accumulated amortization of $4,922 and $9,043, respectively (with a weighted average life remaining of 12.8 years and 11.5 years, respectively) $ 20,337 $ 24,896 |
Schedule of Amortization Expense Related to the Intangible Lease Assets | The following table summarizes the amortization related to the intangible lease assets and liabilities for the three and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 In-place lease and other intangible amortization $ 6,326 $ 7,428 $ 13,112 $ 15,201 Above-market lease amortization $ 305 $ 599 $ 621 $ 1,249 Below-market lease amortization $ 484 $ 1,377 $ 1,063 $ 2,843 |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | As of June 30, 2022, 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 2022 $ 12,128 $ 573 $ 959 2023 23,167 1,140 1,865 2024 21,696 1,035 1,739 2025 18,734 975 1,667 2026 16,961 930 1,646 Thereafter 101,787 7,106 12,461 Total $ 194,473 $ 11,759 $ 20,337 |
REAL ESTATE-RELATED SECURITIES
REAL ESTATE-RELATED SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 (in thousands): Real Estate-Related Securities Amortized Cost Basis Unrealized Loss Fair Value CMBS $ 240,415 $ (12,990) $ 227,425 Equity security 53,388 (6,431) 46,957 Total real estate-related securities $ 293,803 $ (19,421) $ 274,382 The following table provides the activity for the real estate-related securities during the six months ended June 30, 2022 (in thousands): Amortized Cost Basis Unrealized Gain (Loss) Fair Value Real estate-related securities as of January 1, 2022 $ 102,674 $ 2,797 $ 105,471 Face value of real estate-related securities acquired 258,820 — 258,820 Investment in preferred units, net (1) (63,490) — (63,490) Premiums and discounts on purchase of real estate-related securities, net of acquisition costs (4,374) — (4,374) Amortization of discount on real estate-related securities 987 — 987 Realized gain on sale of real estate-related securities (110) (22) (132) Capitalized interest income on real estate-related securities 546 — 546 Principal payments received on real estate-related securities (1,250) — (1,250) Unrealized loss on real estate-related securities — (22,196) (22,196) Real estate-related securities as of June 30, 2022 $ 293,803 $ (19,421) $ 274,382 ____________________________________ (1) Included in this balance is $68.2 million of the Company’s investment in preferred units which were redeemed during the six months ended June 30, 2022 in exchange for an investment in a first mortgage loan, as further discussed in Note 8 — Loans Held-For-Investment. The scheduled maturities of the Company’s CMBS as of June 30, 2022 are as follows (in thousands): CMBS Amortized Cost Estimated Fair Value Due within one year $ — $ — Due after one year through five years 200,175 193,074 Due after five years through ten years — — Due after ten years 40,240 34,351 Total $ 240,415 $ 227,425 |
LOANS HELD-FOR-INVESTMENT (Tabl
LOANS HELD-FOR-INVESTMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Allowance for Financing Receivable | The Company’s loans held-for-investment consisted of the following as of June 30, 2022 and December 31, 2021 (in thousands): As of June 30, As of December 31, 2022 2021 First mortgage loans (1) $ 3,171,155 $ 1,968,585 Total CRE loans held-for-investment and related receivables, net 3,171,155 1,968,585 Liquid senior loans 684,866 655,516 Corporate senior loans 55,218 — Loans held-for-investment and related receivables, net $ 3,911,239 $ 2,624,101 Less: Current expected credit losses $ (23,935) $ (15,201) Total loans held-for-investment and related receivable, net $ 3,887,304 $ 2,608,900 ____________________________________ (1) As of June 30, 2022, first mortgage loans included $20.1 million of contiguous mezzanine loan components that, as a whole, have expected credit quality similar to that of a first mortgage loan. The following table details overall statistics for the Company’s loans held-for-investment as of June 30, 2022 and December 31, 2021 (dollar amounts in thousands): CRE Loans (1) (2) Liquid Senior Loans Corporate Senior Loans June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 December 31, 2021 Number of loans 28 22 309 295 4 — Principal balance $ 3,196,721 $ 1,985,722 $ 688,965 $ 659,007 $ 55,801 $ — Net book value $ 3,158,080 $ 1,958,655 $ 674,677 $ 650,245 $ 54,547 $ — Weighted-average interest rate 4.5 % 3.3 % 5.1 % 3.7 % 7.8 % — % Weighted-average maximum years to maturity 4.1 4.3 5.0 5.1 5.3 0.0 Unfunded loan commitments (3) $ 364,221 $ 209,368 $ 2,031 $ 1,562 $ 6,649 $ — ____________________________________ (1) As of June 30, 2022, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to U.S. dollar LIBOR and the Secured Overnight Financing Rate (“SOFR”). (2) Maximum maturity date assumes all extension options are exercised by the borrowers; however, the Company’s CRE loans may be repaid prior to such date. (3) Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying condensed consolidated balance sheets. This balance does not include unsettled liquid senior loan purchases of $22.4 million that are included in cash and cash equivalents in the accompanying condensed consolidated balance sheets. Activity relating to the Company’s loans held-for-investment portfolio was as follows (in thousands): CRE Loans Liquid Senior Loans Corporate Senior Loans Total Loan Portfolio Balance, January 1, 2022 $ 1,958,655 $ 650,245 $ — $ 2,608,900 Loan originations and acquisitions (1) 1,291,847 111,546 55,851 1,459,244 Sale of loans — (35,460) — (35,460) Principal repayments received (2) (80,911) (46,140) (50) (127,101) Capitalized interest 62 — — 62 Deferred fees and other items (3) (13,367) (1,176) (600) (15,143) Accretion and amortization of fees and other items 4,938 581 17 5,536 Current expected credit losses (3,144) (4,919) (671) (8,734) Balance, June 30, 2022 $ 3,158,080 $ 674,677 $ 54,547 $ 3,887,304 ____________________________________ (1) The Company’s investment in preferred units, which was previously recorded in real estate-related securities on the accompanying condensed consolidated balance sheets, was redeemed during the six months ended June 30, 2022 in exchange for an investment in a first mortgage loan. The converted investment in preferred units of $68.2 million is included in the CRE loans balance with an all-in-rate of 8.0% and an initial maturity date of October 9, 2023. (2) Includes the repayment of a $80.9 million first mortgage loan prior to the maturity date. (3) Other items primarily consist of purchase discounts or premiums, accretion of exit fees and deferred origination expenses. The following table presents the activity in the Company’s current expected credit losses by loan type for the six months ended June 30, 2022 (in thousands): First Mortgage Loans Unfunded First Mortgage Loans (1) Liquid Senior Loans Unfunded or Unsettled Liquid Senior Loans (1) Corporate Senior Loans Unfunded Corporate Senior Loans (1) Total Current expected credit losses as of January 1, 2022 $ 9,930 $ — $ 5,271 $ — $ — $ — $ 15,201 Provision for credit losses 1,312 360 2,581 400 56 — 4,709 Current expected credit losses as of March 31, 2022 $ 11,242 $ 360 $ 7,852 $ 400 $ 56 $ — $ 19,910 Provision for credit losses 1,832 170 2,338 (96) 615 83 4,942 Current expected credit losses as of June 30, 2022 $ 13,074 $ 530 $ 10,190 $ 304 $ 671 $ 83 $ 24,852 ____________________________________ (1) Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable in the condensed consolidated balance sheets. |
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 June 30, 2022 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 June 30, 2022 Number of Loans 2022 2021 2020 2019 Total First mortgage loans by internal risk rating: 1 — $ — $ — $ — $ — $ — 2 — — — — — — 3 28 1,171,306 1,803,406 147,736 48,707 3,171,155 4 — — — — — — 5 — — — — — — Total first mortgage loans 28 1,171,306 1,803,406 147,736 48,707 3,171,155 Liquid senior loans by internal risk rating: 1 — — — — — — 2 2 — — 5,325 — 5,325 3 301 89,497 338,809 235,780 3,024 667,110 4 6 3,306 — 9,125 — 12,431 5 — — — — — — Total liquid senior loans 309 92,803 338,809 250,230 3,024 684,866 Corporate senior loans by internal risk rating: 1 — — — — — — 2 — — — — — — 3 4 55,218 — — — 55,218 4 — — — — — — 5 — — — — — — Total corporate senior loans 4 55,218 — — — 55,218 Less: Current expected credit losses (23,935) Total loans held-for-investment and related receivables, net 341 $ 3,887,304 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) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the terms of the Company’s interest rate cap agreements and interest rate swap agreements as of June 30, 2022 and December 31, 2021 (dollar amounts in thousands): Outstanding Notional Fair Value of Assets (Liabilities) as of Balance Sheet Amount as of Interest Effective Maturity June 30, December 31, Location June 30, 2022 Rates (1) Dates Dates 2022 2021 Interest Rate Cap Prepaid expenses, derivative assets and other assets $ 650,000 5.99% 7/15/2021 7/15/2023 $ 2,030 $ 179 Interest Rate Swaps Prepaid expenses, derivative assets and other assets $ 55,800 3.46% to 4.04% 6/27/2017 to 9/30/2019 7/1/2022 to 9/6/2022 $ 35 $ — Interest Rate Swap Deferred rental income, derivative liabilities and other liabilities $ 100,000 4.99% 10/31/2018 9/6/2022 $ (195) $ (2,466) ____________________________________ (1) The interest rate consists of the underlying index swapped or capped to a fixed rate as of June 30, 2022. |
REPURCHASE FACILITIES, CREDIT_2
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes the debt balances as of June 30, 2022 and December 31, 2021, and the debt activity for the six months ended June 30, 2022 (in thousands): During the Six Months Ended June 30, 2022 Balance as of December 31, 2021 Debt Issuances & Assumptions (1) Repayments & Modifications (2) Accretion & (Amortization) Balance as of Notes payable – fixed rate debt $ 471,967 $ — $ (376,650) (4) $ — $ 95,317 Notes payable – variable rate debt 70,268 314,903 (21,007) — 364,164 First lien mortgage loan 650,000 — (514,728) — 135,272 ABS mortgage notes 770,775 — (3,870) — 766,905 Credit facilities 910,000 372,000 (548,000) — 734,000 Repurchase facilities 1,298,414 928,955 (76,375) — 2,150,994 Total debt 4,171,424 1,615,858 (1,540,630) — 4,246,652 Deferred costs – credit facility (3) (143) (213) — 239 (117) Deferred costs – fixed rate debt and first lien mortgage loan (11,678) — 7,481 1,923 (2,274) Deferred costs – variable rate debt (271) (2,524) — 380 (2,415) Deferred costs – ABS mortgage notes (16,127) — 382 966 (14,779) Total debt, net $ 4,143,205 $ 1,613,121 $ (1,532,767) $ 3,508 $ 4,227,067 ____________________________________ (1) Includes deferred financing costs incurred during the period. (2) In connection with the repayment of certain mortgage notes, the Company recognized a loss on extinguishment of debt of $16.2 million during the six months ended June 30, 2022. (3) Deferred costs related to the term portion of the CIM Income NAV Credit Facility (as defined below). (4) Includes mortgage notes of $313.7 million that were assumed by buyer in connection with disposition of real estate assets. On July 28, 2021, the Company issued $774.0 million aggregate principal amount of asset backed securities (“ABS”) mortgage notes, Series 2021-1 (the “Class A Notes”) in six classes, as shown below: Class of Notes Initial Principal Balance Note Rate Anticipated Repayment Date Rated Final Payment Date Credit Rating (1) A-1 (AAA) $ 146,400,000 2.09% July 2028 July 2051 AAA (sf) A-2 (AAA) $ 219,600,000 2.57% July 2031 July 2051 AAA (sf) A-3 (AA) $ 39,200,000 2.51% July 2028 July 2051 AA (sf) A-4 (AA) $ 58,800,000 3.04% July 2031 July 2051 AA (sf) A-5 (A) $ 124,000,000 2.91% July 2028 July 2051 A (sf) A-6 (A) $ 186,000,000 3.44% July 2031 July 2051 A (sf) ____________________________________ (1) Reflects credit rating from Standard & Poor’s Financial Services LLC (“Standard & Poor’s”). |
Schedule of Repurchase Agreements | The following table is a summary of the Repurchase Facilities as of June 30, 2022 (dollar amounts in thousands): Repurchase Facility Date of Agreement Maturity Date (1) Maximum Facility Size (2) Weighted Average Interest Rate Carrying Value of Loans Financed under Repurchase Facility Amount Financed Citibank 6/4/2020 8/17/2024 $ 400,000 3.0% (3) $ 456,225 $ 329,153 Barclays 9/21/2020 9/21/2024 1,250,000 3.1% (3) 1,158,109 912,598 Wells Fargo 5/20/2021 5/19/2024 750,000 2.9% (3) 881,515 690,810 Deutsche Bank 10/8/2021 10/8/2022 300,000 3.5% (4) 186,253 143,023 J.P. Morgan 6/1/2022 7/13/2022 (5) (5) 2.5% (6) 193,075 75,410 Total $ 2,700,000 $ 2,875,177 $ 2,150,994 __________________________________ (1) The repurchase facilities with Citibank, Barclays, and Wells Fargo are set to mature on various dates between May 2024 and September 2024, with up to two one-year extension options, while the repurchase facility with Deutsche Bank (“Deutsche Bank Repurchase Facility”) is set to mature on October 8, 2022, with four one-year extension options, all of which are subject to certain conditions set forth in the Repurchase Agreements . Subsequent to June 30, 2022, the Company exercised the Deutsche Bank Repurchase Facility’s first extension option, extending the date of maturity to October 8, 2023, as discussed in Note 17 — Subsequent Events. (2) During the six months ended June 30, 2022 , the Company increased the repurchase facility with Barclays (the “Barclays Repurchase Facility”) and Wells Fargo (the “Wells Fargo Repurchase Facility”) to provide up to $1.25 billion and $750.0 million, respectively, in financing. (3) Advances under the repurchase agreement accrue interest at per annum rates based on the one-month LIBOR, Term SOFR (as such term is defined in the applicable Repurchase Agreement), 30-day SOFR average, or the daily compounded SOFR plus a spread ranging from 1.25% to 2.15% to be determined on a case-by-case basis between Citibank, Barclays or Wells Fargo and the CMFT Lending Subs. (4) Under the Amended and Restated Master Repurchase Agreement with Deutsche Bank, advances under the repurchase agreement may be made based on one-month Term SOFR plus a spread designated by Deutsche Bank and the interest rate used for certain existing advances under the existing Deutsche Bank Repurchase Facility may be converted from the one-month LIBOR to one-month SOFR plus a spread ranging from 1.90% to 2.75%. (5) Facilities under the Master Repurchase Agreement with J.P. Morgan carry a rolling term which is reset monthly. Such facilities carry no maximum facility size. (6) Under the Master Repurchase Agreement with J.P. Morgan, advances under the repurchase agreement may be made based on one-month Term SOFR plus a spread designated by J.P. Morgan ranging from 1.20% to 1.35%. |
Schedule of Maturities of Long-term Debt | The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2022 (in thousands): Principal Repayments Remainder of 2022 $ 500,079 2023 140,235 2024 2,520,151 2025 12,763 2026 — Thereafter 1,073,424 Total $ 4,246,652 |
RELATED-PARTY TRANSACTIONS AN_2
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Management fees $ 13,351 $ 11,755 $ 26,698 $ 23,332 Expense reimbursements to related parties (1) $ 3,777 $ 3,210 $ 7,471 $ 5,871 ____________________________________ (1) During the six months ended June 30, 2022, the Company paid $461,000 of expense reimbursements attributable to earnout leasing costs under the Purchase and Sale Agreement, which are included in gain on disposition of real estate and condominium developments, net in the condensed consolidated statements of operations. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Income for Operating Leases - ASC 842 | As of June 30, 2022, 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 2022 $ 79,395 2023 158,069 2024 156,089 2025 152,295 2026 148,093 Thereafter 1,110,635 Total $ 1,804,576 |
Schedule of Components of Lease Income | Rental and other property income during the three and six months ended June 30, 2022 and 2021 consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Fixed rental and other property income (1) $ 47,941 $ 64,060 $ 112,647 $ 130,601 Variable rental and other property income (2) 5,567 11,242 14,597 21,631 Total rental and other property income $ 53,508 $ 75,302 $ 127,244 $ 152,232 __________________________________ (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) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following tables present segment reporting for the three and six months ended June 30, 2022 and 2021 (in thousands): Real Estate Credit Corporate/Other (1) Company Total Three Months Ended June 30, 2022 Rental and other property income $ 53,405 $ — $ 103 $ 53,508 Interest income — 44,984 — 44,984 Total revenues 53,405 44,984 103 98,492 General and administrative 130 (61) 3,611 3,680 Property operating 4,155 — 1,094 5,249 Real estate tax 1,515 — 509 2,024 Expense reimbursements to related parties — — 3,777 3,777 Management fees 5,196 8,155 — 13,351 Transaction-related 430 — 16 446 Depreciation and amortization 18,015 — — 18,015 Real estate impairment 8,051 — 7,945 15,996 Increase in provision for credit losses — 4,942 — 4,942 Total operating expenses 37,492 13,036 16,952 67,480 Gain (loss) on disposition of real estate and condominium developments, net 81,181 — (74) 81,107 Operating income (loss) 97,094 31,948 (16,923) 112,119 Other expense: Gain on investment in unconsolidated entities — 1,323 — 1,323 Interest expense and other, net (9,169) (21,698) (3,593) (34,460) Loss on extinguishment of debt (2,257) — (3,112) (5,369) Segment net income (loss) $ 85,668 $ 11,573 $ (23,628) $ 73,613 Net income allocated to noncontrolling interest (72) — — (72) Segment net income (loss) attributable to the Company 85,740 11,573 (23,628) 73,685 Total assets as of June 30, 2022 $ 2,399,845 $ 4,375,338 $ 255,468 $ 7,030,651 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. Real Estate Credit Corporate/Other (1) (2) Company Total Six Months Ended June 30, 2022 Rental and other property income $ 127,044 $ — $ 200 $ 127,244 Interest income — 76,447 — 76,447 Total revenues 127,044 76,447 200 203,691 General and administrative 279 169 6,707 7,155 Property operating 11,292 — 1,684 12,976 Real estate tax 7,866 — 871 8,737 Expense reimbursements to related parties — — 7,471 7,471 Management fees 12,327 14,371 — 26,698 Transaction-related 437 — 16 453 Depreciation and amortization 37,156 — — 37,156 Real estate impairment 11,342 — 7,945 19,287 Increase in provision for credit losses — 9,651 — 9,651 Total operating expenses 80,699 24,191 24,694 129,584 Gain on disposition of real estate and condominium developments, net 110,446 — 3,235 113,681 Operating income (loss) 156,791 52,256 (21,259) 187,788 Other expense: Gain on investment in unconsolidated entities — 1,491 5,172 6,663 Interest expense and other, net (23,010) (35,612) (6,875) (65,497) Loss on extinguishment of debt (12,994) — (3,246) (16,240) Segment net income (loss) $ 120,787 $ 18,135 $ (26,208) $ 112,714 Net income allocated to noncontrolling interest (63) — — (63) Segment net income (loss) attributable to the Company 120,850 18,135 (26,208) 112,777 Total assets as of June 30, 2022 $ 2,399,845 $ 4,375,338 $ 255,468 $ 7,030,651 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. (2) Includes the Company’s investment in CIM UII Onshore. Real Estate Credit Corporate/Other (1) Company Total Three Months Ended June 30, 2021 Rental and other property income $ 75,203 $ — $ 99 $ 75,302 Interest income — 16,460 — 16,460 Total revenues 75,203 16,460 99 91,762 General and administrative 55 331 3,219 3,605 Property operating 7,613 — 3,743 11,356 Real estate tax 7,196 — 510 7,706 Expense reimbursements to related parties — — 3,210 3,210 Management fees 8,533 3,222 — 11,755 Transaction-related 27 — — 27 Depreciation and amortization 24,647 — — 24,647 Real estate impairment 77 — — 77 Increase in provision for credit losses — 123 — 123 Total operating expenses 48,148 3,676 10,682 62,506 Gain on disposition of real estate and condominium developments, net 44,976 — 1,493 46,469 Operating income (loss) 72,031 12,784 (9,090) 75,725 Other expense: Interest expense and other, net (3,713) (3,341) (9,406) (16,460) Loss on extinguishment of debt (1,372) — (106) (1,478) Segment net income (loss) $ 66,946 $ 9,443 $ (18,602) $ 57,787 Total assets as of June 30, 2021 $ 3,089,744 $ 1,479,061 $ 280,357 $ 4,849,162 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. Real Estate Credit Corporate/Other (1) Company Total Six Months Ended June 30, 2021 Rental and other property income $ 151,998 $ — $ 234 $ 152,232 Interest income — 28,413 — 28,413 Total revenues 151,998 28,413 234 180,645 General and administrative 119 713 7,201 8,033 Property operating 14,742 — 6,733 21,475 Real estate tax 15,065 — 4,860 19,925 Expense reimbursements to related parties — — 5,871 5,871 Management fees 17,864 5,468 — 23,332 Transaction-related 31 — — 31 Depreciation and amortization 50,385 — — 50,385 Real estate impairment 4,377 — — 4,377 Increase in provision for credit losses — 691 — 691 Total operating expenses 102,583 6,872 24,665 134,120 Gain on disposition of real estate and condominium developments, net 44,976 — 1,493 46,469 Operating income (loss) 94,391 21,541 (22,938) 92,994 Other expense: Interest expense and other, net (7,829) (6,888) (21,765) (36,482) Loss on extinguishment of debt (1,372) — (106) (1,478) Segment net income (loss) $ 85,190 $ 14,653 $ (44,809) $ 55,034 Total assets as of June 30, 2021 $ 3,089,744 $ 1,479,061 $ 280,357 $ 4,849,162 __________________________________ (1) Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021. |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details) $ / shares in Units, ft² in Millions | 6 Months Ended | 24 Months Ended | 30 Months Ended | |||||
Jun. 30, 2022 USD ($) ft² loan property state $ / shares shares | Apr. 04, 2014 shares | Jun. 30, 2016 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 20, 2021 state | Aug. 02, 2016 USD ($) | Dec. 19, 2013 USD ($) | Jan. 26, 2012 USD ($) | |
Organization and Business [Line Items] | ||||||||
Number of owned properties | property | 402 | |||||||
Rentable square feet (sqft) | ft² | 12.1 | |||||||
Number of states in which entity owns properties | state | 45 | 27 | ||||||
Percentage of rentable space leased | 99.20% | |||||||
Number of loans | loan | 341 | |||||||
Net book value | $ 3,887,304,000 | $ 2,608,900,000 | ||||||
Net value | 274,382,000 | 105,471,000 | ||||||
Real estate investment property, at cost | $ 2,585,070,000 | $ 2,848,087,000 | ||||||
Common stock, shares issued (shares) | shares | 437,311,071 | 297,400,000 | 437,373,981 | |||||
Shares deregistered (shares) | shares | 404,000 | |||||||
Net asset value per share (USD per share) | $ / shares | $ 7.20 | |||||||
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 | |||||||
Common stock shares registered dividend reinvestment plan, value | $ 600,000,000 | $ 247,000,000 | ||||||
Value of shares issued in transaction | $ 241,700,000 | |||||||
Remaining unsold common stock | $ 5,300,000 | |||||||
CIM Real Estate Finance Operating Partnership, LP | ||||||||
Organization and Business [Line Items] | ||||||||
General partner partnership interest percentage | 100% | |||||||
Condominium developments | ||||||||
Organization and Business [Line Items] | ||||||||
Real estate investment property, at cost | $ 152,500,000 | |||||||
Consolidated Properties | ||||||||
Organization and Business [Line Items] | ||||||||
Number of owned properties | property | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Reclassification [Line Items] | |||
Rents and tenant receivables, net | $ 33,101 | $ 58,948 | |
Prepaid expenses, derivative assets and other assets | 76,348 | 16,279 | |
Rents and tenant receivables, net | 67,285 | $ 15,466 | |
Prepaid expenses and other assets | $ (58,802) | (6,234) | |
As previously reported | |||
Reclassification [Line Items] | |||
Rents and tenant receivables, net | 61,468 | ||
Prepaid expenses, derivative assets and other assets | 13,759 | ||
Rents and tenant receivables, net | 15,315 | ||
Prepaid expenses and other assets | (6,083) | ||
Reclassifications | |||
Reclassification [Line Items] | |||
Rents and tenant receivables, net | (2,520) | ||
Prepaid expenses, derivative assets and other assets | $ 2,520 | ||
Rents and tenant receivables, net | 151 | ||
Prepaid expenses and other assets | $ (151) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Real Estate Assets (Details) | 6 Months Ended |
Jun. 30, 2022 | |
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 | 6 Months Ended | |
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) property loan | |
Real Estate [Line Items] | ||
Impairment of real estate assets | $ | $ 19,287 | $ 4,377 |
Number of properties impaired | loan | 5 | |
Number of properties | 5 | |
Sales Price Less Than Carrying Value | ||
Real Estate [Line Items] | ||
Number of properties | 3 | |
Vacant | ||
Real Estate [Line Items] | ||
Number of properties | 2 | |
Property | ||
Real Estate [Line Items] | ||
Impairment of real estate assets | $ | $ 11,300 | $ 4,400 |
Number of properties impaired | 18 | 5 |
Condominium Units | ||
Real Estate [Line Items] | ||
Impairment of real estate assets | $ | $ 7,900 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets Held for Sale (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Jun. 30, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of real estate property held for sale | 4 | 81 | |
Assets held for sale | $ | $ 76.6 | $ 1,300 | $ 6.1 |
Mortgage note payable | $ | $ 42.8 | ||
Number of real estate property sold | 80 | ||
Property Disposition 2022 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Number of remaining properties to be dispose | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gain on investment in unconsolidated entities | $ 6,663 | $ 0 | ||
Proceeds from investment distributions | $ 2,022 | $ 0 | ||
N P J V Holdings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity method investment, ownership percentage | 50% | 50% | ||
Equity method investments | $ 96,200 | |||
Additional contribution | 43,300 | |||
Proceeds from investment distributions | $ 2,100 | |||
New Point JV, LLC | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity method investment, ownership percentage | 90% | |||
Gain on investment in unconsolidated entities | $ 1,500 | |||
Equity method investment, indirect ownership percentage | 45% | |||
C I M U I I Onshore | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Investments redeemed | $ 60,700 | |||
Equity method investment, ownership percentage | 5% | 5% | ||
Gain on investment in unconsolidated entities | $ 5,200 | |||
Equity method investments | $ 56,000 | |||
Proceeds from investment distributions | $ 531 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Noncontrolling Interest in Consolidated Joint Venture (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||||||
Net loss allocated to noncontrolling interest | $ (72) | $ 0 | $ (63) | $ 0 | ||
Distributions to non-controlling interests | 16 | $ 14 | 30 | |||
Minority interest | $ 980 | $ 980 | $ 1,073 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 61,022 | $ 36,792 | $ 32,918 |
Restricted cash, held by lenders in lockbox accounts | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | 5,700 | 7,800 | |
Restricted cash, held by lenders in escrow | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash | $ 55,300 | $ 29,000 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Real Estate-Related Securities (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) investment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Fair Value | $ 274,382,000 | $ 274,382,000 | $ 105,471,000 | ||
Allowance for credit losses | 23,935,000 | 23,935,000 | $ 15,201,000 | ||
Capitalized interest income on real estate-related securities | 274,000 | $ 262,000 | 546,000 | $ 435,000 | |
CMBS | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Net investments in debt securities | 259,200,000 | $ 259,200,000 | |||
Number of debt instruments | investment | 10 | ||||
Fair Value | 227,425,000 | $ 227,425,000 | |||
Allowance for credit losses | 0 | $ 0 | 0 | $ 0 | |
RTL Common Stock | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Investments redeemed | $ 47,000,000 | $ 47,000,000 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Held-for-Investments (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Capitalized interest | $ 62,000 | |
Loans receivable, net amount | 3,887,304,000 | $ 2,608,900,000 |
Mezzanine Loans | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Loans receivable, net amount | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Development Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Condominium developments | $ 152,473 | $ 171,080 | |
Capitalized interest cost | 711,000 | $ 1,800 | |
Condominium Units | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Condominium developments | $ 7,200 | $ 4,500 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segment (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 2 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 USD ($) property | Jun. 30, 2021 USD ($) property loan | Dec. 31, 2021 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of properties impaired | loan | 5 | ||
Impairment of real estate assets | $ 19,287 | $ 4,377 | |
Condominium Units | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of real estate assets | $ 7,900 | ||
Property | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of properties impaired | property | 18 | 5 | |
Impairment of real estate assets | $ 11,300 | $ 4,400 | |
Estimate of Fair Value Measurement | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 3,890,000 | $ 2,630,000 | |
Real estate investment property, net, carrying value of impaired property | 31,200 | ||
Estimate of Fair Value Measurement | Property | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investment property, net, carrying value of impaired property | 110,500 | 31,200 | |
Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 2,610,000 | ||
Real estate investment property, net, carrying value of impaired property | $ 35,500 | ||
Carrying Value | Property | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Real estate investment property, net, carrying value of impaired property | 121,800 | ||
CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net investments in debt securities | 259,200 | ||
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 | 4,110,000 | 4,110,000 | |
Level 2 | Estimate of Fair Value Measurement | Liquid senior loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 491,300 | 560,400 | |
Level 2 | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value disclosure | 4,250,000 | 4,170,000 | |
Level 2 | CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net investments in debt securities | 193,100 | ||
Level 3 | Estimate of Fair Value Measurement | Liquid senior loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans held for investment | 149,200 | $ 94,100 | |
Level 3 | CMBS | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net investments in debt securities | $ 34,400 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets: | ||
CMBS | $ 274,382 | $ 41,981 |
Fair Value | 274,382 | 105,471 |
Equity security | ||
Financial assets: | ||
Fair Value | 46,957 | |
Fair value, measurements, recurring | ||
Financial assets: | ||
CMBS | 227,425 | 41,871 |
Derivative Asset | 179 | |
Total financial assets | 276,447 | 105,650 |
Financial liabilities: | ||
Derivative Liability | (195) | (2,466) |
Total financial liabilities | (195) | (2,466) |
Fair value, measurements, recurring | Interest Rate Cap | ||
Financial assets: | ||
Derivative Asset | 2,030 | |
Fair value, measurements, recurring | Interest rate swaps | ||
Financial assets: | ||
Derivative Asset | 35 | |
Fair value, measurements, recurring | Preferred units | ||
Financial assets: | ||
Fair Value | 63,490 | |
Fair value, measurements, recurring | Equity security | ||
Financial assets: | ||
Equity security | 46,957 | |
Fair value, measurements, recurring | Marketable security | ||
Financial assets: | ||
Fair Value | 110 | |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
CMBS | 0 | 0 |
Derivative Asset | 0 | |
Total financial assets | 46,957 | 110 |
Financial liabilities: | ||
Derivative Liability | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Cap | ||
Financial assets: | ||
Derivative Asset | 0 | |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | ||
Financial assets: | ||
Derivative Asset | 0 | |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Preferred units | ||
Financial assets: | ||
Fair Value | 0 | |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity security | ||
Financial assets: | ||
Equity security | 46,957 | |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Marketable security | ||
Financial assets: | ||
Fair Value | 110 | |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
CMBS | 193,074 | 0 |
Derivative Asset | 179 | |
Total financial assets | 195,139 | 179 |
Financial liabilities: | ||
Derivative Liability | (195) | (2,466) |
Total financial liabilities | (195) | (2,466) |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Cap | ||
Financial assets: | ||
Derivative Asset | 2,030 | |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Financial assets: | ||
Derivative Asset | 35 | |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Preferred units | ||
Financial assets: | ||
Fair Value | 0 | |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Equity security | ||
Financial assets: | ||
Equity security | 0 | |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Marketable security | ||
Financial assets: | ||
Fair Value | 0 | |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
CMBS | 34,351 | 41,871 |
Derivative Asset | 0 | |
Total financial assets | 34,351 | 105,361 |
Financial liabilities: | ||
Derivative Liability | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Cap | ||
Financial assets: | ||
Derivative Asset | 0 | |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||
Financial assets: | ||
Derivative Asset | 0 | |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Preferred units | ||
Financial assets: | ||
Fair Value | 63,490 | |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Equity security | ||
Financial assets: | ||
Equity security | $ 0 | |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Marketable security | ||
Financial assets: | ||
Fair Value | $ 0 |
FAIR VALUE MEASUREMENTS - Level
FAIR VALUE MEASUREMENTS - Level 3 Reconciliation (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance, January 1, 2022 | $ 105,361 |
Total gains and losses: | |
Unrealized loss included in other comprehensive (loss) income, net | (8,687) |
Purchases and payments received: | |
Conversion of preferred units | (68,243) |
Purchases | 4,752 |
Discounts, net | 622 |
Capitalized interest income | 546 |
Ending Balance, June 30, 2022 | $ 34,351 |
FAIR VALUE MEASUREMENTS - Disco
FAIR VALUE MEASUREMENTS - Discount Rates and Terminal Capitalization Rates (Details) | Jun. 30, 2022 | Jun. 30, 2021 |
Minimum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 8% | 7.90% |
Minimum | Terminal Capitalization Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 7.50% | 7.40% |
Maximum | Discount Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 9.70% | 9.70% |
Maximum | Terminal Capitalization Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 9.20% | 9.20% |
FAIR VALUE MEASUREMENTS - Impai
FAIR VALUE MEASUREMENTS - Impairment Charges (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | $ 19,287 | $ 4,377 |
Land | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | 1,913 | 781 |
Buildings, fixtures and improvements | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | 8,453 | 3,496 |
Intangible lease assets | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | 980 | 230 |
Intangible lease liabilities | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Intangible lease liabilities | (4) | (130) |
Condominium developments | ||
Impaired Long-Lived Assets Held and Used [Line Items] | ||
Impairment of real estate assets | $ 7,945 | $ 0 |
REAL ESTATE ASSETS - Property A
REAL ESTATE ASSETS - Property Acquisition (Details) - Commercial property - property | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
2022 Property Acquisition | ||
Real Estate [Line Items] | ||
Number of properties acquired | 0 | |
2021 Property Acquisition | ||
Real Estate [Line Items] | ||
Number of properties acquired | 0 |
REAL ESTATE ASSETS - Condominiu
REAL ESTATE ASSETS - Condominium Development Project and Dispositions (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Real Estate [Line Items] | |||
Condominium developments | $ 152,473 | $ 171,080 | |
Proceeds from disposition of properties | 1,205,183 | $ 304,370 | |
Gain (loss) on sale of properties | 113,681 | 46,469 | |
Condominium Units | |||
Real Estate [Line Items] | |||
Condominium developments | 7,200 | 4,500 | |
Condominium Dispositions | |||
Real Estate [Line Items] | |||
Aggregate gross sales price | 22,500 | 8,800 | |
Proceeds from disposition of properties | 20,600 | 8,500 | |
Gain (loss) on sale of properties | $ 3,300 | $ 1,500 |
REAL ESTATE ASSETS - Property D
REAL ESTATE ASSETS - Property Dispositions and Real Estate Assets Held for Sale (Details) $ / shares in Units, $ in Thousands, ft² in Millions | 6 Months Ended | |||
Dec. 20, 2021 USD ($) ft² property state center $ / shares | Jun. 30, 2022 USD ($) building property state $ / shares | Jun. 30, 2021 USD ($) property | Dec. 31, 2021 USD ($) property $ / shares | |
Real Estate [Line Items] | ||||
Number of real estate property held for sale | property | 4 | 81 | ||
Number of states in which entity owns properties | state | 27 | 45 | ||
Common stock, value, issued (in share) | $ 4,373 | $ 4,374 | ||
Common stock, par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Proceeds from disposition of properties | $ 1,205,183 | $ 304,370 | ||
Gain (loss) on sale of properties | 113,681 | 46,469 | ||
Assets held for sale | $ 76,600 | $ 6,100 | $ 1,300,000 | |
American Finance Trust Inc | ||||
Real Estate [Line Items] | ||||
Common stock, par value (USD per share) | $ / shares | $ 0.01 | |||
Property Disposition 2021 | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 2 | |||
Area of real estate property | ft² | 9.5 | |||
Aggregate gross sales price | $ 1,320,000 | |||
Property Disposition 2021 | Properties sold | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 47 | |||
Aggregate gross sales price | $ 304,000 | |||
Proceeds from disposition of properties | 269,000 | |||
Gain (loss) on sale of properties | $ 46,500 | |||
Property Disposition 2021 | American Finance Trust Inc | ||||
Real Estate [Line Items] | ||||
Common stock, value, issued (in share) | $ 53,400 | |||
Property Disposition 2021 | Shopping Center | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | center | 79 | |||
Property Disposition 2021 | Single-Tenant Properties | ||||
Real Estate [Line Items] | ||||
Number of real estate property held for sale | property | 2 | |||
Property Disposition 2022 | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 112 | |||
Aggregate gross sales price | $ 1,550,000 | |||
Proceeds from disposition of properties | 1,500,000 | |||
Gain (loss) on sale of properties | $ 110,400 | |||
Number of remaining properties to be dispose | property | 1 | |||
Property Disposition 2022 | Prepaid expenses, derivative assets and other assets | ||||
Real Estate [Line Items] | ||||
Proceeds receivable, sale of productive assets | $ 51,000 | |||
Property Disposition 2022 | Anchored shopping center | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 55 | |||
Property Disposition 2022 | Retail property | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 54 | |||
Property Disposition 2022 | Office Building | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | building | 2 | |||
Property Disposition 2022 | Industrial Property | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 1 | |||
Purchase And Sale Agreement | ||||
Real Estate [Line Items] | ||||
Number of properties disposed | property | 80 | |||
Aggregate gross sales price | $ 1,300,000 | |||
Proceeds from sale of productive assets in cash | 1,200,000 | |||
Earnout income (loss) on disposition | 74,100 | |||
Purchase And Sale Agreement | American Finance Trust Inc | ||||
Real Estate [Line Items] | ||||
Common stock, value, issued (in share) | $ 53,400 |
REAL ESTATE ASSETS - Impairment
REAL ESTATE ASSETS - Impairment (Details) ft² in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) ft² property | Jun. 30, 2021 USD ($) ft² property loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of properties impaired | loan | 5 | |
Area of real estate property impaired (sq ft) | ft² | 165 | |
Impairment of real estate assets | $ 19,287 | $ 4,377 |
Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of properties impaired | property | 18 | 5 |
Area of real estate property impaired (sq ft) | ft² | 800 | |
Impairment of real estate assets | $ 11,300 | $ 4,400 |
Condominium Units | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of real estate assets | 7,900 | |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate asset deemed to be impaired | 35,500 | |
Carrying Value | Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate asset deemed to be impaired | 121,800 | |
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 | 31,200 | |
Estimate of Fair Value Measurement | Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate asset deemed to be impaired | $ 110,500 | $ 31,200 |
REAL ESTATE ASSETS - Assets Acq
REAL ESTATE ASSETS - Assets Acquired Via Foreclosure (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jan. 07, 2021 building unit | Jun. 30, 2021 unit building property loan | Dec. 31, 2019 loan | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 31, 2021 USD ($) | |
Real Estate [Line Items] | ||||||
Long-term debt | $ | $ 4,246,652 | $ 4,171,424 | ||||
Mortgage Notes Payable | ||||||
Real Estate [Line Items] | ||||||
Long-term debt | $ | $ 102,600 | |||||
Mezzanine Loans | ||||||
Real Estate [Line Items] | ||||||
Number of loans | loan | 8 | 8 | ||||
Foreclosure Of Mezzanine Loans | Condominium Units | Consolidated Properties | ||||||
Real Estate [Line Items] | ||||||
Number of real estate properties secured through foreclosure | unit | 75 | 75 | ||||
Foreclosure Of Mezzanine Loans | Rental Unit | Consolidated Properties | ||||||
Real Estate [Line Items] | ||||||
Number of real estate properties secured through foreclosure | unit | 21 | 21 | ||||
Foreclosure Of Mezzanine Loans | Buildings | Consolidated Properties | ||||||
Real Estate [Line Items] | ||||||
Number of real estate properties secured through foreclosure | building | 4 | 4 | ||||
Foreclosure Of Mezzanine Loans | Land | Consolidated Properties | ||||||
Real Estate [Line Items] | ||||||
Number of real estate properties secured through foreclosure | property | 0 |
REAL ESTATE ASSETS - Purchase P
REAL ESTATE ASSETS - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Real Estate [Line Items] | |||
Buildings, fixtures and improvements | $ 1,545,493 | $ 1,706,902 | |
Acquired in-place leases and other intangibles | 287,710 | 314,832 | |
Total real estate assets, at cost | $ 2,585,070 | $ 2,848,087 | |
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] | |||
Acquired in-place leases and other intangibles | 134 | ||
Intangible lease liabilities | Foreclosure Of Mezzanine Loans | |||
Real Estate [Line Items] | |||
Intangible lease liabilities | $ (326) |
REAL ESTATE ASSETS - Consolidat
REAL ESTATE ASSETS - Consolidated Joint Venture (Details) | Aug. 12, 2022 property | Jun. 30, 2022 USD ($) property | Dec. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) |
Real Estate [Line Items] | ||||
Number of owned properties | property | 402 | |||
Assets | $ 7,030,651,000 | $ 6,962,776,000 | $ 4,849,162,000 | |
Real estate investment property, net | 2,340,920,000 | 2,612,606,000 | ||
Intangible leased assets | 206,232,000 | 237,705,000 | ||
Liabilities | 4,312,230,000 | 4,263,101,000 | ||
Repurchase facilities, notes payable and credit facilities, net | 4,227,067,000 | $ 4,143,205,000 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Real Estate [Line Items] | ||||
Assets | 6,800,000 | |||
Real estate investment property, net | 7,200,000 | |||
Intangible leased assets | 641,000 | |||
Accumulated depreciation, depletion and amortization, property, plant, and equipment | 1,200,000 | |||
Liabilities | $ 47,000 | |||
Variable Interest Entity, Primary Beneficiary | Subsequent event | ||||
Real Estate [Line Items] | ||||
Number of owned properties | property | 2 | |||
Consolidated Properties | Variable Interest Entity, Primary Beneficiary | ||||
Real Estate [Line Items] | ||||
Number of owned properties | property | 2 | |||
Repurchase facilities, notes payable and credit facilities, net | $ 0 |
INTANGIBLE LEASE ASSETS AND L_3
INTANGIBLE LEASE ASSETS AND LIABILITIES - Components (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Intangible lease assets: | ||
Intangible leased assets | $ 206,232 | $ 237,705 |
Intangible lease liabilities: | ||
Below market leases net of amortization | 20,337 | 24,896 |
Below market lease, accumulated amortization | $ 4,922 | $ 9,043 |
Below market lease, weighted average useful life | 12 years 9 months 18 days | 11 years 6 months |
In-place leases and other intangibles | ||
Intangible lease assets: | ||
Intangible leased assets | $ 194,473 | $ 224,931 |
Accumulated amortization | $ 77,745 | $ 73,923 |
Useful life | 11 years 4 months 24 days | 11 years 4 months 24 days |
Acquired above-market leases | ||
Intangible lease assets: | ||
Intangible leased assets | $ 11,759 | $ 12,774 |
Accumulated amortization | $ 3,733 | $ 3,204 |
Useful life | 13 years 1 month 6 days | 13 years 3 months 18 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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Below-market lease amortization | $ 484 | $ 1,377 | $ 1,063 | $ 2,843 |
In-place lease and other intangible amortization | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | 6,326 | 7,428 | 13,112 | 15,201 |
Above-market lease amortization | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 305 | $ 599 | $ 621 | $ 1,249 |
INTANGIBLE LEASE ASSETS AND L_5
INTANGIBLE LEASE ASSETS AND LIABILITIES - Estimated Amortization of Intangible Lease Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases | ||
Total | $ 206,232 | $ 237,705 |
Amortization, Below-Market Leases | ||
Remainder of 2022 | 959 | |
2023 | 1,865 | |
2024 | 1,739 | |
2025 | 1,667 | |
2026 | 1,646 | |
Thereafter | 12,461 | |
Total | 20,337 | 24,896 |
In-Place Leases and Other Intangibles | ||
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases | ||
Remainder of 2022 | 12,128 | |
2023 | 23,167 | |
2024 | 21,696 | |
2025 | 18,734 | |
2026 | 16,961 | |
Thereafter | 101,787 | |
Total | 194,473 | 224,931 |
Above-Market Leases | ||
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases | ||
Remainder of 2022 | 573 | |
2023 | 1,140 | |
2024 | 1,035 | |
2025 | 975 | |
2026 | 930 | |
Thereafter | 7,106 | |
Total | $ 11,759 | $ 12,774 |
INVESTMENTS IN UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | Mar. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Gain on investment in unconsolidated entities | $ 6,663 | $ 0 | ||
Proceeds from investment distributions | 2,022 | $ 0 | ||
New Point JV, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on investment in unconsolidated entities | $ 1,500 | |||
Equity method investment, ownership percentage | 90% | |||
Holds the membership interest | 90% | |||
Equity method investment, indirect ownership percentage | 45% | |||
N P J V Holdings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from investment distributions | $ 2,100 | |||
Equity method investment, ownership percentage | 50% | 50% | ||
Equity method investments | $ 96,200 | |||
Proceeds from investment distribution, return on investment | 1,500 | |||
Increase (decrease) in equity method investment | 614 | |||
C I M U I I Onshore | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Gain on investment in unconsolidated entities | 5,200 | |||
Proceeds from investment distributions | 531 | |||
Investments redeemed | $ 60,700 | |||
Equity method investment, ownership percentage | 5% | 5% | ||
Redemption proceeds | 100% | |||
Equity method investments | $ 56,000 |
REAL ESTATE-RELATED SECURITIE_2
REAL ESTATE-RELATED SECURITIES - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) investment security | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||
Fair Value | $ 274,382,000 | $ 274,382,000 | $ 105,471,000 | ||
Number of marketable security, sold | security | 1 | ||||
Realized gain on sale of real estate-related securities | $ 110,000 | ||||
Realized gain on sale of real estate-related securities | 132,000 | ||||
Gain (loss) on sale of CMBS | 22,000 | ||||
Proceeds from investments | 53,400,000 | ||||
Unrealized loss on real estate-related securities | (22,196,000) | ||||
Unrealized (loss) gain on real estate-related securities | (10,909,000) | $ 1,930,000 | (15,787,000) | $ 2,052,000 | |
Credit losses | 0 | ||||
CMBS | |||||
Debt Instrument [Line Items] | |||||
Fair Value | 227,425,000 | $ 227,425,000 | |||
Number of debt instruments | investment | 10 | ||||
Net investments in debt securities | $ 259,200,000 | $ 259,200,000 | |||
Unrealized loss on real estate-related securities | $ (22,200,000) | ||||
CMBS Two | Minimum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 5.40% | 5.40% | |||
CMBS Two | Maximum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.60% | 7.60% | |||
CMBS One | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 0% | 0% | |||
CMBS | |||||
Debt Instrument [Line Items] | |||||
Gain (loss) on sale of CMBS | $ (6,400,000) |
REAL ESTATE-RELATED SECURITIE_3
REAL ESTATE-RELATED SECURITIES - Summary of Real Estate Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | $ 293,803 | $ 102,674 |
Unrealized Gain (Loss) | (19,421) | 2,797 |
Fair Value | 274,382 | $ 105,471 |
CMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 240,415 | |
Unrealized Gain (Loss) | (12,990) | |
Fair Value | 227,425 | |
Equity security | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost Basis | 53,388 | |
Unrealized Gain (Loss) | (6,431) | |
Fair Value | $ 46,957 |
REAL ESTATE-RELATED SECURITIE_4
REAL ESTATE-RELATED SECURITIES - Activity for the Real Estate-Related Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amortized Cost Basis | ||||
Real estate-related securities as of January 1, 2022 | $ 102,674 | |||
Face value of real estate-related securities acquired | 258,820 | |||
Investment in preferred units, net | (63,490) | |||
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs | (4,374) | |||
Amortization of discount on real estate-related securities | 987 | |||
Realized gain on sale of real estate-related securities | (110) | |||
Capitalized interest income on real estate-related securities | $ 274 | $ 262 | 546 | $ 435 |
Principal payments received on real estate-related securities | (1,250) | |||
Real estate-related securities as of June 30, 2022 | 293,803 | 293,803 | ||
Unrealized Gain (Loss) | ||||
Real estate-related securities as of January 1, 2022 | 2,797 | |||
Realized gain on sale of real estate-related securities | (22) | |||
Unrealized loss on real estate-related securities | (22,196) | |||
Real estate-related securities as of June 30, 2022 | (19,421) | (19,421) | ||
Fair Value | ||||
Real estate-related securities as of January 1, 2022 | 105,471 | |||
Face value of real estate-related securities acquired | 258,820 | |||
Investment in preferred units, net | (63,490) | |||
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs | (4,374) | |||
Amortization of discount on real estate-related securities | 987 | |||
Realized gain on sale of real estate-related securities | (132) | |||
Capitalized interest income on real estate-related securities | 274 | $ 262 | 546 | $ 435 |
Unrealized loss on real estate-related securities | (22,196) | |||
Real estate-related securities as of June 30, 2022 | 274,382 | 274,382 | ||
Preferred units | ||||
Amortized Cost Basis | ||||
Real estate-related securities as of June 30, 2022 | $ 68,200 | $ 68,200 |
REAL ESTATE-RELATED SECURITIE_5
REAL ESTATE-RELATED SECURITIES - The Scheduled Maturities of Real Estate-Related Securities (Details) - CMBS $ in Thousands | Jun. 30, 2022 USD ($) |
Amortized Cost | |
Due within one year | $ 0 |
Due after one year through five years | 200,175 |
Due after five years through ten years | 0 |
Due after ten years | 40,240 |
Total | 240,415 |
Estimated Fair Value | |
Due within one year | 0 |
Due after one year through five years | 193,074 |
Due after five years through ten years | 0 |
Due after ten years | 34,351 |
Total | $ 227,425 |
LOANS HELD-FOR-INVESTMENT - Sch
LOANS HELD-FOR-INVESTMENT - Schedule of Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment and related receivables, net | $ 3,911,239 | $ 2,624,101 |
Less: Current expected credit losses | (23,935) | (15,201) |
Total loans held-for-investment and related receivables, net | 3,887,304 | 2,608,900 |
Contiguous mezzanine loan components | 20,100 | |
First mortgage loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment and related receivables, net | 3,171,155 | 1,968,585 |
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 | 3,171,155 | 1,968,585 |
Total loans held-for-investment and related receivables, net | 3,158,080 | 1,958,655 |
Liquid senior loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment and related receivables, net | 684,866 | 655,516 |
Total loans held-for-investment and related receivables, net | 674,677 | 650,245 |
Corporate senior loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held-for-investment and related receivables, net | 55,218 | 0 |
Total loans held-for-investment and related receivables, net | $ 54,547 | $ 0 |
LOANS HELD-FOR-INVESTMENT - Sta
LOANS HELD-FOR-INVESTMENT - Statistics (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 341 | |
Net book value | $ 3,887,304 | $ 2,608,900 |
Loans receivable with variable rate of interest | 100% | |
Unfunded Loan Commitment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 370,900 | |
Unsettled Liquid Senior Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 22,400 | |
CRE Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 28 | 22 |
Principal balance | $ 3,196,721 | $ 1,985,722 |
Net book value | $ 3,158,080 | $ 1,958,655 |
Weighted-average interest rate | 4.50% | 3.30% |
Weighted-average maximum years to maturity | 4 years 1 month 6 days | 4 years 3 months 18 days |
CRE Loans | Unfunded Loan Commitment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 364,221 | $ 209,368 |
Liquid Senior Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 309 | 295 |
Principal balance | $ 688,965 | $ 659,007 |
Net book value | $ 674,677 | $ 650,245 |
Weighted-average interest rate | 5.10% | 3.70% |
Weighted-average maximum years to maturity | 5 years | 5 years 1 month 6 days |
Liquid Senior Loans | Unfunded Loan Commitment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 2,031 | $ 1,562 |
Liquid Senior Loans | Unsettled Liquid Senior Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 2,000 | |
Corporate senior loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans | loan | 4 | 0 |
Principal balance | $ 55,801 | $ 0 |
Net book value | $ 54,547 | $ 0 |
Weighted-average interest rate | 7.80% | 0% |
Weighted-average maximum years to maturity | 5 years 3 months 18 days | 0 years |
Corporate senior loans | Unfunded Loan Commitment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unfunded loan commitments | $ 6,649 |
LOANS HELD-FOR-INVESTMENT - Act
LOANS HELD-FOR-INVESTMENT - Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Loans Held-for-Investment [Roll Forward] | ||
Beginning Balance, Net Book Value | $ 2,608,900 | |
Loan originations and acquisitions | 1,459,244 | |
Sale of loans | (35,460) | |
Principal repayments received | (127,101) | |
Capitalized interest | 62 | |
Deferred fees and other items | (15,143) | |
Accretion and amortization of fees and other items | 5,536 | |
Current expected credit losses | (8,734) | |
Ending Balance, Net Book Value | 3,887,304 | |
Equity securities | $ 293,803 | $ 102,674 |
Redemption price, percentage | 8% | |
Preferred units | ||
Loans Held-for-Investment [Roll Forward] | ||
Equity securities | $ 68,200 | |
CRE Loans | ||
Loans Held-for-Investment [Roll Forward] | ||
Beginning Balance, Net Book Value | 1,958,655 | |
Loan originations and acquisitions | 1,291,847 | |
Sale of loans | 0 | |
Principal repayments received | (80,911) | |
Capitalized interest | 62 | |
Deferred fees and other items | (13,367) | |
Accretion and amortization of fees and other items | 4,938 | |
Current expected credit losses | (3,144) | |
Ending Balance, Net Book Value | 3,158,080 | |
Liquid senior loans | ||
Loans Held-for-Investment [Roll Forward] | ||
Beginning Balance, Net Book Value | 650,245 | |
Loan originations and acquisitions | 111,546 | |
Sale of loans | (35,460) | |
Principal repayments received | (46,140) | |
Capitalized interest | 0 | |
Deferred fees and other items | (1,176) | |
Accretion and amortization of fees and other items | 581 | |
Current expected credit losses | (4,919) | |
Ending Balance, Net Book Value | 674,677 | |
Corporate senior loans | ||
Loans Held-for-Investment [Roll Forward] | ||
Beginning Balance, Net Book Value | 0 | |
Loan originations and acquisitions | 55,851 | |
Sale of loans | 0 | |
Principal repayments received | (50) | |
Capitalized interest | 0 | |
Deferred fees and other items | (600) | |
Accretion and amortization of fees and other items | 17 | |
Current expected credit losses | (671) | |
Ending Balance, Net Book Value | 54,547 | |
First mortgage loans | ||
Loans Held-for-Investment [Roll Forward] | ||
Repayments of senior loan | $ 80,900 |
LOANS HELD-FOR-INVESTMENT - All
LOANS HELD-FOR-INVESTMENT - Allowance for Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | $ 19,910 | $ 15,201 | $ 15,201 | ||
Provision for credit losses | 4,942 | 4,709 | $ 123 | 9,651 | $ 691 |
Allowance for credit losses end of period | 24,852 | 19,910 | 24,852 | ||
First Mortgage Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | 11,242 | 9,930 | 9,930 | ||
Provision for credit losses | 1,832 | 1,312 | |||
Allowance for credit losses end of period | 13,074 | 11,242 | 13,074 | ||
Unfunded First Mortgage Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | 360 | 0 | 0 | ||
Provision for credit losses | 170 | 360 | |||
Allowance for credit losses end of period | 530 | 360 | 530 | ||
Liquid Senior Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | 7,852 | 5,271 | 5,271 | ||
Provision for credit losses | 2,338 | 2,581 | |||
Allowance for credit losses end of period | 10,190 | 7,852 | 10,190 | ||
Unsettled Liquid Senior Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | 400 | 0 | 0 | ||
Provision for credit losses | (96) | 400 | |||
Allowance for credit losses end of period | 304 | 400 | 304 | ||
Corporate senior loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | 56 | 0 | 0 | ||
Provision for credit losses | 615 | 56 | |||
Allowance for credit losses end of period | 671 | 56 | 671 | ||
Unfunded Corporate Senior Loans | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance for credit losses as of beginning of the period | 0 | 0 | 0 | ||
Provision for credit losses | 83 | 0 | |||
Allowance for credit losses end of period | $ 83 | $ 0 | $ 83 |
LOANS HELD-FOR-INVESTMENT - Pri
LOANS HELD-FOR-INVESTMENT - Primary Credit Quality Indicator (Details) $ in Thousands | Jun. 30, 2022 USD ($) loan | Dec. 31, 2021 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 341 | |
Loans held-for-investment and related receivables, net | $ 3,911,239 | $ 2,624,101 |
Less: Current expected credit losses | (23,935) | (15,201) |
Total loans held-for-investment and related receivables, net | $ 3,887,304 | $ 2,608,900 |
Weighted Average Risk Rating | 3 | |
First mortgage loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 28 | |
2022 | $ 1,171,306 | |
2021 | 1,803,406 | |
2020 | 147,736 | |
2019 | 48,707 | |
Loans held-for-investment and related receivables, net | $ 3,171,155 | |
First mortgage loans | 1 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
First mortgage loans | 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
First mortgage loans | 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 28 | |
2022 | $ 1,171,306 | |
2021 | 1,803,406 | |
2020 | 147,736 | |
2019 | 48,707 | |
Loans held-for-investment and related receivables, net | $ 3,171,155 | |
First mortgage loans | 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
First mortgage loans | 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
Liquid senior loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 309 | |
2022 | $ 92,803 | |
2021 | 338,809 | |
2020 | 250,230 | |
2019 | 3,024 | |
Loans held-for-investment and related receivables, net | $ 684,866 | |
Liquid senior loans | 1 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
Liquid senior loans | 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 2 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 5,325 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 5,325 | |
Liquid senior loans | 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 301 | |
2022 | $ 89,497 | |
2021 | 338,809 | |
2020 | 235,780 | |
2019 | 3,024 | |
Loans held-for-investment and related receivables, net | $ 667,110 | |
Liquid senior loans | 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 6 | |
2022 | $ 3,306 | |
2021 | 0 | |
2020 | 9,125 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 12,431 | |
Liquid senior loans | 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
Corporate senior loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 4 | |
2022 | $ 55,218 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 55,218 | |
Corporate senior loans | 1 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
Corporate senior loans | 2 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
Corporate senior loans | 3 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 4 | |
2022 | $ 55,218 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 55,218 | |
Corporate senior loans | 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 | |
Corporate senior loans | 5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Number of Loans | loan | 0 | |
2022 | $ 0 | |
2021 | 0 | |
2020 | 0 | |
2019 | 0 | |
Loans held-for-investment and related receivables, net | $ 0 |
LOANS HELD-FOR-INVESTMENT - Nar
LOANS HELD-FOR-INVESTMENT - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jan. 07, 2021 building unit | Mar. 31, 2021 USD ($) | Jun. 30, 2021 unit building loan | Dec. 31, 2019 loan | |
Mezzanine Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of loans | loan | 8 | 8 | ||
Foreclosure of assets | $ | $ 58 | |||
Foreclosure Of Mezzanine Loans | Condominium Units | Consolidated Properties | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of real estate properties secured through foreclosure | 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 | 21 | 21 | ||
Foreclosure Of Mezzanine Loans | Buildings | Consolidated Properties | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of real estate properties secured through foreclosure | building | 4 | 4 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 12, 2022 agreement | Jun. 30, 2022 USD ($) agreement | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) agreement | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||
Amount of loss reclassified from other comprehensive (loss) income into income as interest expense and other, net | $ | $ 69 | $ 71 | $ 62 | $ 3,203 | ||
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months | $ | $ 203 | $ 203 | ||||
Interest rate swaps | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Number of derivative instruments terminated | 1 | |||||
Number of instruments terminated remaining | 1 | |||||
Number of interest rate derivatives held | 3 | 3 | ||||
Total unrealized gain (loss) on interest rate swap | $ | $ 2,500 | $ 2,500 | $ 152 | |||
Interest rate swaps | Subsequent event | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Number of derivative instruments terminated | 1 | |||||
Number of interest rate derivatives held | 1 | |||||
Interest rate swaps | Cash Flow Hedging | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, event of default, termination amount | $ | $ 210 | $ 210 | ||||
Interest Rate Cap | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Number of derivative instruments terminated | 4 | |||||
Number of interest rate derivatives held | 1 | 1 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - Cash Flow Hedging - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Interest Rate Cap | Prepaid expenses, derivative assets and other assets | ||
Derivative [Line Items] | ||
Outstanding notional amount | $ 650,000 | |
Interest rates | 5.99% | |
Fair value of assets | $ 2,030 | $ 179 |
Interest rate swaps | Prepaid expenses, derivative assets and other assets | ||
Derivative [Line Items] | ||
Outstanding notional amount | 55,800 | |
Fair value of assets | $ 35 | 0 |
Interest rate swaps | Prepaid expenses, derivative assets and other assets | Minimum | ||
Derivative [Line Items] | ||
Interest rates | 3.46% | |
Interest rate swaps | Prepaid expenses, derivative assets and other assets | Maximum | ||
Derivative [Line Items] | ||
Interest rates | 4.04% | |
Interest rate swaps | Deferred rental income, derivative liabilities and other liabilities | ||
Derivative [Line Items] | ||
Outstanding notional amount | $ 100,000 | |
Interest rates | 4.99% | |
Fair value of liabilities | $ (195) | $ (2,466) |
REPURCHASE FACILITIES, CREDIT_3
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE - Narrative (Details) | 6 Months Ended | ||||||
Jul. 15, 2021 USD ($) entity option | Jun. 04, 2020 USD ($) | Jun. 30, 2022 USD ($) property loan | Dec. 31, 2021 USD ($) | Dec. 16, 2021 USD ($) | Jul. 28, 2021 USD ($) | Jan. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 4,227,067,000 | $ 4,143,205,000 | |||||
Weighted average years to maturity | 3 years 2 months 12 days | ||||||
Weighted average interest rate | 3.30% | ||||||
Long-term debt | $ 4,246,652,000 | 4,171,424,000 | |||||
Number of properties used as collateral | loan | 168 | ||||||
Reinvestment Period | |||||||
Debt Instrument [Line Items] | |||||||
Reinvestment period | 2 years | ||||||
C I M Income N A V Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 212,500,000 | ||||||
Senior Loan | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Percent of lending guaranteed (up to) | 25% | ||||||
Credit facilities | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 2,700,000,000 | ||||||
Long-term line of credit | $ 2,150,994,000 | ||||||
Consolidated net worth, minimum | $ 1,000,000,000 | ||||||
Equity issued by the company, minimum | 75% | ||||||
Maximum leverage ratio to total indebtedness to total equity (less than or equal) | 80% | ||||||
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% | ||||||
J.P. Morgan | |||||||
Debt Instrument [Line Items] | |||||||
Reinvestment period | 3 years | ||||||
Minimum required assets under management | $ 1,250,000,000 | ||||||
J.P. Morgan | Credit facilities | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 2.50% | ||||||
Long-term line of credit | $ 75,410,000 | ||||||
Citibank | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 3.40% | ||||||
Line of credit facility, maximum borrowing capacity | 550,000,000 | ||||||
Long-term line of credit | $ 521,500,000 | ||||||
Citibank | Credit facilities | Affiliated Entity | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 3% | ||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||
Long-term line of credit | 329,153,000 | ||||||
Notes payable – fixed rate debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 95,317,000 | 471,967,000 | |||||
Debt security, amount, aggregate gross real estate assets net of gross intangible lease liabilities | $ 173,400,000 | ||||||
Notes payable – fixed rate debt | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4% | ||||||
Notes payable – fixed rate debt | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 4.50% | ||||||
Variable rate debt | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 3.80% | ||||||
Long-term debt | $ 364,164,000 | 70,268,000 | |||||
Variable rate debt | Massachusetts Mutual Life Insurance Company | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 314,900,000 | ||||||
Variable rate debt | Interest rate swaps | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 15,800,000 | ||||||
First lien mortgage loan | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 6% | ||||||
Long-term debt | $ 135,272,000 | 650,000,000 | |||||
Debt security, amount, aggregate gross real estate assets net of gross intangible lease liabilities | 333,900,000 | ||||||
Outstanding mortgage loan | $ 650,000,000 | $ 135,300,000 | |||||
Number of single purpose entities | entity | 114 | ||||||
Number of properties for security on borrowers fee simple interest | property | 53 | ||||||
Initial term | 2 years | ||||||
Number of extension options | option | 3 | ||||||
Extension period | 1 year | ||||||
First lien mortgage loan | Retail property | |||||||
Debt Instrument [Line Items] | |||||||
Number of properties for security on borrowers fee simple interest | property | 52 | ||||||
First lien mortgage loan | Office Property | |||||||
Debt Instrument [Line Items] | |||||||
Number of properties for security on borrowers fee simple interest | property | 1 | ||||||
ABS mortgage notes | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 2.80% | ||||||
Long-term debt | $ 766,905,000 | 770,775,000 | |||||
Debt security, amount, aggregate gross real estate assets net of gross intangible lease liabilities | 977,300,000 | ||||||
Aggregate principal amount | $ 774,000,000 | ||||||
Credit facilities | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 734,000,000 | $ 910,000,000 | |||||
Credit facilities | J.P. Morgan | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 4.20% | ||||||
Stated interest rate | 2% | ||||||
Unused borrowing capacity | $ 212,500,000 | ||||||
Credit facilities | J.P. Morgan | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 425,000,000 | ||||||
Credit facilities | J.P. Morgan | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Long-term line of credit | $ 212,500,000 | ||||||
Credit facilities | J.P. Morgan | Term Loan | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 212,500,000 | ||||||
Credit facilities | J.P. Morgan | Revolving Credit Facility | CCPT V | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 212,500,000 | ||||||
Credit facilities | Minimum | Reinvestment Period | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 1.90% | 2% | |||||
Credit facilities | Minimum | Amortization Period | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.10% | ||||||
Credit facilities | Maximum | Reinvestment Period | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.75% | 2.85% | |||||
Credit facilities | Maximum | Amortization Period | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 2.95% | ||||||
Credit facilities | Interest rate swaps | J.P. Morgan | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Weighted average interest rate | 4.60% | ||||||
Long-term line of credit | $ 140,000,000 | ||||||
Mortgage Notes Payable | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 102,600,000 |
REPURCHASE FACILITIES, CREDIT_4
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | $ 4,171,424 | |||
Total debt, net, Beginning Balance | 4,143,205 | |||
Debt issuances & assumptions | 1,615,858 | |||
Total debt, net, Debt Issuances & Assumptions | 1,613,121 | |||
Total debt, Repayments & Modifications | (1,540,630) | |||
Total debt, net, Repayments & Modifications | (1,532,767) | |||
Accretion & (Amortization) | 3,508 | |||
Total debt, Ending Balance | $ 4,246,652 | 4,246,652 | ||
Total debt, net, Ending Balance | 4,227,067 | 4,227,067 | ||
Loss on extinguishment of debt | (5,369) | $ (1,478) | (16,240) | $ (1,478) |
Fixed rate debt | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | 471,967 | |||
Debt issuances & assumptions | 0 | |||
Total debt, Repayments & Modifications | (376,650) | |||
Total debt, Ending Balance | 95,317 | 95,317 | ||
Variable rate debt | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | 70,268 | |||
Deferred costs, Beginning Balance | (271) | |||
Debt issuances & assumptions | 314,903 | |||
Deferred costs, Debt Issuances & Assumptions | (2,524) | |||
Total debt, Repayments & Modifications | (21,007) | |||
Deferred costs, Repayments & Modifications | 0 | |||
Deferred costs, Accretion and (Amortization) | 380 | |||
Total debt, Ending Balance | 364,164 | 364,164 | ||
Deferred costs, Ending Balance | (2,415) | (2,415) | ||
First lien mortgage loan | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | 650,000 | |||
Debt issuances & assumptions | 0 | |||
Total debt, Repayments & Modifications | (514,728) | |||
Total debt, Ending Balance | 135,272 | 135,272 | ||
ABS mortgage notes | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | 770,775 | |||
Deferred costs, Beginning Balance | (16,127) | |||
Debt issuances & assumptions | 0 | |||
Deferred costs, Debt Issuances & Assumptions | 0 | |||
Total debt, Repayments & Modifications | (3,870) | |||
Deferred costs, Repayments & Modifications | 382 | |||
Deferred costs, Accretion and (Amortization) | 966 | |||
Total debt, Ending Balance | 766,905 | 766,905 | ||
Deferred costs, Ending Balance | (14,779) | (14,779) | ||
Credit facilities | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | 910,000 | |||
Deferred costs, Beginning Balance | (143) | |||
Debt issuances & assumptions | 372,000 | |||
Deferred costs, Debt Issuances & Assumptions | (213) | |||
Total debt, Repayments & Modifications | (548,000) | |||
Deferred costs, Repayments & Modifications | 0 | |||
Deferred costs, Accretion and (Amortization) | 239 | |||
Total debt, Ending Balance | 734,000 | 734,000 | ||
Deferred costs, Ending Balance | (117) | (117) | ||
Repurchase facilities | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Beginning Balance | 1,298,414 | |||
Debt issuances & assumptions | 928,955 | |||
Total debt, Repayments & Modifications | (76,375) | |||
Total debt, Ending Balance | 2,150,994 | 2,150,994 | ||
Fixed rate debt and first lien mortgage loan | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Deferred costs, Beginning Balance | (11,678) | |||
Deferred costs, Debt Issuances & Assumptions | 0 | |||
Deferred costs, Repayments & Modifications | 7,481 | |||
Deferred costs, Accretion and (Amortization) | 1,923 | |||
Deferred costs, Ending Balance | $ (2,274) | (2,274) | ||
Mortgages | ||||
Short-Term and Long-Term Debt [Roll Forward] | ||||
Total debt, Repayments & Modifications | $ (313,700) |
REPURCHASE FACILITIES, CREDIT_5
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE - Schedule of ABS Mortgage Notes (Details) - ABS mortgage notes | Jul. 28, 2021 USD ($) |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 774,000,000 |
A-1 (AAA) | |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 146,400,000 |
Note Rate | 2.09% |
A-2 (AAA) | |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 219,600,000 |
Note Rate | 2.57% |
A-3 (AA) | |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 39,200,000 |
Note Rate | 2.51% |
A-4 (AA) | |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 58,800,000 |
Note Rate | 3.04% |
A-5 (A) | |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 124,000,000 |
Note Rate | 2.91% |
A-6 (A) | |
Line of Credit Facility [Line Items] | |
Initial Principal Balance | $ 186,000,000 |
Note Rate | 3.44% |
REPURCHASE FACILITIES, CREDIT_6
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE - Schedule of Repurchase Facilities (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 USD ($) option | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||
Weighted Average Interest Rate | 3.30% | |
Carrying Value of Loans Financed under Repurchase Facility | $ 3,911,239 | $ 2,624,101 |
Minimum | One-Month LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
Minimum | One-Month Term SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.90% | |
Maximum | One-Month LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.15% | |
Maximum | One-Month Term SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 2.75% | |
Deutsche Bank | ||
Line of Credit Facility [Line Items] | ||
Number of extension options | option | 4 | |
Extension period | 1 year | |
J.P. Morgan | Minimum | One-Month Term SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.20% | |
J.P. Morgan | Maximum | One-Month Term SOFR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.35% | |
Citibank, Barclays And Wells Fargo | ||
Line of Credit Facility [Line Items] | ||
Number of extension options | option | 2 | |
Extension period | 1 year | |
Credit facilities | Affiliated Entity | ||
Line of Credit Facility [Line Items] | ||
Maximum Facility Size | $ 2,700,000 | |
Amount Financed | 2,150,994 | |
Credit facilities | Affiliated Entity | Senior Loan | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Loans Financed under Repurchase Facility | 2,875,177 | |
Credit facilities | Citibank | Affiliated Entity | ||
Line of Credit Facility [Line Items] | ||
Maximum Facility Size | $ 400,000 | |
Weighted Average Interest Rate | 3% | |
Amount Financed | $ 329,153 | |
Credit facilities | Citibank | Affiliated Entity | Senior Loan | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Loans Financed under Repurchase Facility | 456,225 | |
Credit facilities | Barclays | Affiliated Entity | ||
Line of Credit Facility [Line Items] | ||
Maximum Facility Size | $ 1,250,000 | |
Weighted Average Interest Rate | 3.10% | |
Amount Financed | $ 912,598 | |
Credit facilities | Barclays | Affiliated Entity | Senior Loan | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Loans Financed under Repurchase Facility | 1,158,109 | |
Credit facilities | Wells Fargo | Affiliated Entity | ||
Line of Credit Facility [Line Items] | ||
Maximum Facility Size | $ 750,000 | |
Weighted Average Interest Rate | 2.90% | |
Amount Financed | $ 690,810 | |
Credit facilities | Wells Fargo | Affiliated Entity | Senior Loan | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Loans Financed under Repurchase Facility | 881,515 | |
Credit facilities | Deutsche Bank | Affiliated Entity | ||
Line of Credit Facility [Line Items] | ||
Maximum Facility Size | $ 300,000 | |
Weighted Average Interest Rate | 3.50% | |
Amount Financed | $ 143,023 | |
Credit facilities | Deutsche Bank | Affiliated Entity | Senior Loan | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Loans Financed under Repurchase Facility | $ 186,253 | |
Credit facilities | J.P. Morgan | Affiliated Entity | ||
Line of Credit Facility [Line Items] | ||
Weighted Average Interest Rate | 2.50% | |
Amount Financed | $ 75,410 | |
Credit facilities | J.P. Morgan | Affiliated Entity | Senior Loan | ||
Line of Credit Facility [Line Items] | ||
Carrying Value of Loans Financed under Repurchase Facility | $ 193,075 |
REPURCHASE FACILITIES, CREDIT_7
REPURCHASE FACILITIES, CREDIT FACILITIES AND NOTES PAYABLE - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Principal Repayments | ||
Remainder of 2022 | $ 500,079 | |
2023 | 140,235 | |
2024 | 2,520,151 | |
2025 | 12,763 | |
2026 | 0 | |
Thereafter | 1,073,424 | |
Total | $ 4,246,652 | $ 4,171,424 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Aug. 12, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Reserves For Settlement Of Loan Acquisitions | Subsequent event | |||
Other Commitments [Line Items] | |||
Loans settled | $ 14,800 | ||
Liquid senior loans | Reserves For Settlement Of Loan Acquisitions | Subsequent event | |||
Other Commitments [Line Items] | |||
Loans settled | $ 14,100 | ||
Unfunded Loan Commitment | |||
Other Commitments [Line Items] | |||
Unfunded loan commitments | $ 370,900 | ||
Unfunded Loan Commitment | Liquid senior loans | |||
Other Commitments [Line Items] | |||
Unfunded loan commitments | 2,031 | $ 1,562 | |
Unfunded Loan Commitment | N P J V Holdings | |||
Other Commitments [Line Items] | |||
Unfunded loan commitments | 115,700 | ||
Unsettled Liquid Senior Loans | |||
Other Commitments [Line Items] | |||
Unfunded loan commitments | 22,400 | ||
Unsettled Liquid Senior Loans | Liquid senior loans | |||
Other Commitments [Line Items] | |||
Unfunded loan commitments | $ 2,000 |
RELATED-PARTY TRANSACTIONS AN_3
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Management and Investment Advisory Fees (Details) - USD ($) | Dec. 06, 2019 | Aug. 20, 2019 |
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% |
RELATED-PARTY TRANSACTIONS AN_4
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Incentive Compensation (Details) - Advisors - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 20, 2019 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Incentive compensation. in excess of product, quarterly percentage | 20% | ||||
Incentive compensation. in excess of product, annualized percentage | 7% | ||||
Incentive compensation fees | $ 0 | $ 0 | $ 0 | $ 0 |
RELATED-PARTY TRANSACTIONS AN_5
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Schedule of Related Party Transactions (Details) - Advisors - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Management fees | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, expenses from transactions with related party | $ 13,351 | $ 11,755 | $ 26,698 | $ 23,332 |
Expense reimbursements to related parties (1) | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, expenses from transactions with related party | $ 3,777 | $ 3,210 | 7,471 | $ 5,871 |
Expense reimbursements attributable to earnout leasing costs | ||||
Related Party Transaction [Line Items] | ||||
Payment of expense reimbursements attributable to earnout leasing costs | $ 461 |
RELATED-PARTY TRANSACTIONS AN_6
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Due to Affiliates (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 14,414 | $ 14,594 | |
Advisors | Operating Activities Fees and Expenses | |||
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 14,400 | $ 16,000 |
RELATED-PARTY TRANSACTIONS AN_7
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Development Management Agreements (Details) $ in Thousands | 6 Months Ended | ||
Jan. 07, 2021 building unit | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) unit building | |
Related Party Transaction [Line Items] | |||
Development management fees | $ | $ 234 | $ 56 | |
Development Management Agreements | |||
Related Party Transaction [Line Items] | |||
Termination period | 15 days | ||
Development Management Agreements | CIM NY Management, LLC | |||
Related Party Transaction [Line Items] | |||
Management fee, percentage | 4% | ||
Condominium Units | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||
Related Party Transaction [Line Items] | |||
Number of real estate properties secured through foreclosure | 75 | 75 | |
Rental Unit | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||
Related Party Transaction [Line Items] | |||
Number of real estate properties secured through foreclosure | 21 | 21 | |
Buildings | Foreclosure Of Mezzanine Loans | Consolidated Properties | |||
Related Party Transaction [Line Items] | |||
Number of real estate properties secured through foreclosure | building | 4 | 4 |
RELATED-PARTY TRANSACTIONS AN_8
RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Affiliated Investments (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) loan | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) loan | Aug. 12, 2022 USD ($) | Mar. 31, 2022 | Nov. 30, 2021 USD ($) | Oct. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | |
Net Investment Income [Line Items] | |||||||||
Long-term debt | $ 4,143,205 | $ 4,227,067 | $ 4,143,205 | ||||||
Advances to affiliate | $ 119,000 | ||||||||
Payments to acquire equity method investments | $ 43,250 | $ 0 | |||||||
Number of loans | loan | 341 | ||||||||
C I M U I I Onshore | |||||||||
Net Investment Income [Line Items] | |||||||||
Equity method investment, ownership percentage | 5% | 5% | |||||||
Equity method investments | 56,000 | 56,000 | |||||||
Investments redeemed | $ 60,700 | ||||||||
First mortgage loans | |||||||||
Net Investment Income [Line Items] | |||||||||
Long-term debt | 155,000 | 121,200 | $ 155,000 | $ 130,000 | |||||
Advances to affiliate | 154,000 | ||||||||
Equity method investments | 147,000 | ||||||||
Initial advance in mortgage loan | $ 154,000 | 143,000 | |||||||
Mortgage loan receivable, affiliate | 143,300 | ||||||||
Corporate senior loans | |||||||||
Net Investment Income [Line Items] | |||||||||
Long-term debt | 55,900 | ||||||||
Advances to affiliate | $ 55,800 | ||||||||
Number of loans | loan | 4 | 0 | |||||||
MT-FT JV | |||||||||
Net Investment Income [Line Items] | |||||||||
Equity method investment, ownership percentage | 50% | ||||||||
Equity method investments | $ 212,500 | ||||||||
New Point JV, LLC | |||||||||
Net Investment Income [Line Items] | |||||||||
Equity method investment, ownership percentage | 90% | ||||||||
Payments to acquire equity method investments | $ 96,800 | ||||||||
CIM RACR | Corporate senior loans | |||||||||
Net Investment Income [Line Items] | |||||||||
Long-term debt | 12,200 | ||||||||
CIM RACR | Corporate senior loans | Subsequent event | |||||||||
Net Investment Income [Line Items] | |||||||||
Long-term debt | $ 2,500 | ||||||||
Preferred units | |||||||||
Net Investment Income [Line Items] | |||||||||
Related party investments | $ 68,400 | ||||||||
Preferred units | Maximum | |||||||||
Net Investment Income [Line Items] | |||||||||
Related party investments | 4,800 | ||||||||
Preferred units | CIM RACR | Maximum | |||||||||
Net Investment Income [Line Items] | |||||||||
Related party investments | 364 | ||||||||
Mortgage Loan | |||||||||
Net Investment Income [Line Items] | |||||||||
Related party investments | 203,600 | $ 138,800 | |||||||
Mortgage Loan | Maximum | |||||||||
Net Investment Income [Line Items] | |||||||||
Related party investments | 6,400 | ||||||||
Mortgage Loan | CIM RACR | Maximum | |||||||||
Net Investment Income [Line Items] | |||||||||
Related party investments | $ 490 |
STOCKHOLDERS_ EQUITY (Details)
STOCKHOLDERS’ EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Apr. 27, 2022 | Aug. 10, 2018 | |
CCPT IV 2018 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested in period (shares) | 73,000 | |||||
CCPT IV 2018 Equity Incentive Plan | Restricted stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted to each of the independent members of the Board (shares) | 116,000 | |||||
Award requisite service period | 1 year | |||||
Remaining shares non vested (shares) | 43,000 | 43,000 | ||||
Unrecognized compensation expense | $ 285 | $ 285 | ||||
CCPT IV 2018 Equity Incentive Plan | Restricted stock | General and administrative expenses | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 120 | $ 49 | $ 157 | $ 89 | ||
CCPT IV 2018 Equity Incentive Plan | Common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for issuance (shares) | 400,000 | |||||
Shares available for future grant (shares) | 284,000 | 284,000 | ||||
2022 Equity Incentive Plan | Common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for issuance (shares) | 250,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) lease | |
Leases [Abstract] | ||
Lessor, weighted average remaining lease term | 10 years 7 months 6 days | |
Number of operating leases | lease | 1 | |
Operating lease, remaining lease term | 11 years 2 months 12 days | |
Operating lease, liability, statement of financial position | Deferred rental income, derivative liabilities and other liabilities | Deferred rental income, derivative liabilities and other liabilities |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses, derivative assets and other assets | Prepaid expenses, derivative assets and other assets |
Lease liability | $ 2,200 | $ 2,200 |
Operating lease, discount rate | 4.30% | 4.30% |
Ground lease, expense | $ 63 | $ 125 |
Ground lease, payments | 61 | 121 |
Future minimum rental payments, remainder of 2022 | 125 | 125 |
Future minimum rental payments, 2023 | 250 | 250 |
Future minimum rental payments, 2024 | 250 | 250 |
Future minimum rental payments, 2025 | 250 | 250 |
Future minimum rental payments, 2026 | 250 | 250 |
Future minimum rental payments, 2027 | 250 | 250 |
Future minimum rental payments, thereafter | $ 1,400 | $ 1,400 |
LEASES - Future Minimum Rental
LEASES - Future Minimum Rental Income (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Future Minimum Rental Income | |
Remainder of 2022 | $ 79,395 |
2023 | 158,069 |
2024 | 156,089 |
2025 | 152,295 |
2026 | 148,093 |
Thereafter | 1,110,635 |
Total | $ 1,804,576 |
LEASES - Schedule of Components
LEASES - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Fixed rental and other property income | $ 47,941 | $ 64,060 | $ 112,647 | $ 130,601 |
Variable rental and other property income | 5,567 | 11,242 | 14,597 | 21,631 |
Total rental and other property income | $ 53,508 | $ 75,302 | $ 127,244 | $ 152,232 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) segment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 2 | |||||
Revenues: | ||||||
Rental and other property income | $ 53,508 | $ 75,302 | $ 127,244 | $ 152,232 | ||
Interest income | 44,984 | 16,460 | 76,447 | 28,413 | ||
Total revenues | 98,492 | 91,762 | 203,691 | 180,645 | ||
Operating expenses: | ||||||
General and administrative | 3,680 | 3,605 | 7,155 | 8,033 | ||
Property operating | 5,249 | 11,356 | 12,976 | 21,475 | ||
Real estate tax | 2,024 | 7,706 | 8,737 | 19,925 | ||
Expense reimbursements to related parties | 3,777 | 3,210 | 7,471 | 5,871 | ||
Management fees | 13,351 | 11,755 | 26,698 | 23,332 | ||
Transaction-related | 446 | 27 | 453 | 31 | ||
Depreciation and amortization | 18,015 | 24,647 | 37,156 | 50,385 | ||
Real estate impairment | 15,996 | 77 | 19,287 | 4,377 | ||
Increase in provision for credit losses | 4,942 | $ 4,709 | 123 | 9,651 | 691 | |
Total operating expenses | 67,480 | 62,506 | 129,584 | 134,120 | ||
Gain (loss) on disposition of real estate and condominium developments, net | 81,107 | 46,469 | 113,681 | 46,469 | ||
Operating income (loss) | 112,119 | 75,725 | 187,788 | 92,994 | ||
Other expense: | ||||||
Gain on investment in unconsolidated entities | 1,323 | 0 | 6,663 | 0 | ||
Interest expense and other, net | (34,460) | (16,460) | (65,497) | (36,482) | ||
Loss on extinguishment of debt | (5,369) | (1,478) | (16,240) | (1,478) | ||
Net income | 73,613 | 57,787 | 112,714 | 55,034 | ||
Net income allocated to noncontrolling interest | (72) | 0 | (63) | 0 | ||
Segment net income (loss) attributable to the Company | 73,685 | 57,787 | 112,777 | 55,034 | ||
Assets | 7,030,651 | 4,849,162 | 7,030,651 | 4,849,162 | $ 6,962,776 | |
Operating Segments | Real Estate | ||||||
Revenues: | ||||||
Rental and other property income | 53,405 | 75,203 | 127,044 | 151,998 | ||
Interest income | 0 | 0 | 0 | 0 | ||
Total revenues | 53,405 | 75,203 | 127,044 | 151,998 | ||
Operating expenses: | ||||||
General and administrative | 130 | 55 | 279 | 119 | ||
Property operating | 4,155 | 7,613 | 11,292 | 14,742 | ||
Real estate tax | 1,515 | 7,196 | 7,866 | 15,065 | ||
Expense reimbursements to related parties | 0 | 0 | 0 | 0 | ||
Management fees | 5,196 | 8,533 | 12,327 | 17,864 | ||
Transaction-related | 430 | 27 | 437 | 31 | ||
Depreciation and amortization | 18,015 | 24,647 | 37,156 | 50,385 | ||
Real estate impairment | 8,051 | 77 | 11,342 | 4,377 | ||
Increase in provision for credit losses | 0 | 0 | 0 | 0 | ||
Total operating expenses | 37,492 | 48,148 | 80,699 | 102,583 | ||
Gain (loss) on disposition of real estate and condominium developments, net | 81,181 | 44,976 | 110,446 | 44,976 | ||
Operating income (loss) | 97,094 | 72,031 | 156,791 | 94,391 | ||
Other expense: | ||||||
Gain on investment in unconsolidated entities | 0 | 0 | ||||
Interest expense and other, net | (9,169) | (3,713) | (23,010) | (7,829) | ||
Loss on extinguishment of debt | (2,257) | (1,372) | (12,994) | (1,372) | ||
Net income | 85,668 | 66,946 | 120,787 | 85,190 | ||
Net income allocated to noncontrolling interest | (72) | (63) | ||||
Segment net income (loss) attributable to the Company | 85,740 | 120,850 | ||||
Assets | 2,399,845 | 3,089,744 | 2,399,845 | 3,089,744 | ||
Operating Segments | Credit | ||||||
Revenues: | ||||||
Rental and other property income | 0 | 0 | 0 | 0 | ||
Interest income | 44,984 | 16,460 | 76,447 | 28,413 | ||
Total revenues | 44,984 | 16,460 | 76,447 | 28,413 | ||
Operating expenses: | ||||||
General and administrative | (61) | 331 | 169 | 713 | ||
Property operating | 0 | 0 | 0 | 0 | ||
Real estate tax | 0 | 0 | 0 | 0 | ||
Expense reimbursements to related parties | 0 | 0 | 0 | 0 | ||
Management fees | 8,155 | 3,222 | 14,371 | 5,468 | ||
Transaction-related | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Real estate impairment | 0 | 0 | 0 | 0 | ||
Increase in provision for credit losses | 4,942 | 123 | 9,651 | 691 | ||
Total operating expenses | 13,036 | 3,676 | 24,191 | 6,872 | ||
Gain (loss) on disposition of real estate and condominium developments, net | 0 | 0 | 0 | 0 | ||
Operating income (loss) | 31,948 | 12,784 | 52,256 | 21,541 | ||
Other expense: | ||||||
Gain on investment in unconsolidated entities | 1,323 | 1,491 | ||||
Interest expense and other, net | (21,698) | (3,341) | (35,612) | (6,888) | ||
Loss on extinguishment of debt | 0 | 0 | 0 | 0 | ||
Net income | 11,573 | 9,443 | 18,135 | 14,653 | ||
Net income allocated to noncontrolling interest | 0 | 0 | ||||
Segment net income (loss) attributable to the Company | 11,573 | 18,135 | ||||
Assets | 4,375,338 | 1,479,061 | 4,375,338 | 1,479,061 | ||
Corporate/Other | Corporate/Other | ||||||
Revenues: | ||||||
Rental and other property income | 103 | 99 | 200 | 234 | ||
Interest income | 0 | 0 | 0 | 0 | ||
Total revenues | 103 | 99 | 200 | 234 | ||
Operating expenses: | ||||||
General and administrative | 3,611 | 3,219 | 6,707 | 7,201 | ||
Property operating | 1,094 | 3,743 | 1,684 | 6,733 | ||
Real estate tax | 509 | 510 | 871 | 4,860 | ||
Expense reimbursements to related parties | 3,777 | 3,210 | 7,471 | 5,871 | ||
Management fees | 0 | 0 | 0 | 0 | ||
Transaction-related | 16 | 0 | 16 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Real estate impairment | 7,945 | 0 | 7,945 | 0 | ||
Increase in provision for credit losses | 0 | 0 | 0 | 0 | ||
Total operating expenses | 16,952 | 10,682 | 24,694 | 24,665 | ||
Gain (loss) on disposition of real estate and condominium developments, net | (74) | 1,493 | 3,235 | 1,493 | ||
Operating income (loss) | (16,923) | (9,090) | (21,259) | (22,938) | ||
Other expense: | ||||||
Gain on investment in unconsolidated entities | 0 | 5,172 | ||||
Interest expense and other, net | (3,593) | (9,406) | (6,875) | (21,765) | ||
Loss on extinguishment of debt | (3,112) | (106) | (3,246) | (106) | ||
Net income | (23,628) | (18,602) | (26,208) | (44,809) | ||
Net income allocated to noncontrolling interest | 0 | 0 | ||||
Segment net income (loss) attributable to the Company | (23,628) | (26,208) | ||||
Assets | $ 255,468 | $ 280,357 | $ 255,468 | $ 280,357 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Aug. 12, 2022 USD ($) agreement loan $ / shares shares | Jun. 30, 2022 USD ($) shares | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) property agreement shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Oct. 31, 2021 USD ($) | |
Subsequent Event [Line Items] | |||||||
Redemptions of common stock | $ 10,044 | $ 9,689 | |||||
Remaining redemption (shares) | shares | 23.1 | 23.1 | |||||
Proceeds from disposition of properties | $ 1,205,183 | $ 304,370 | |||||
Gain (loss) on sale of properties | 113,681 | 46,469 | |||||
Investment in corporate senior loans | 55,251 | 0 | |||||
Return on investment in unconsolidated entities | 2,022 | $ 0 | |||||
Long-term debt | $ 4,227,067 | $ 4,227,067 | $ 4,143,205 | ||||
Interest rate swaps | |||||||
Subsequent Event [Line Items] | |||||||
Number of derivative instruments terminated | agreement | 1 | ||||||
N P J V Holdings | |||||||
Subsequent Event [Line Items] | |||||||
Additional contribution | 43,300 | $ 43,300 | |||||
Return on investment in unconsolidated entities | 2,100 | ||||||
Corporate senior loans | |||||||
Subsequent Event [Line Items] | |||||||
Long-term debt | 55,900 | 55,900 | |||||
First mortgage loans | |||||||
Subsequent Event [Line Items] | |||||||
Long-term debt | 121,200 | 121,200 | $ 155,000 | $ 130,000 | |||
Repayments of senior loan | 80,900 | ||||||
C I M Income N A V Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Long-term debt | 212,500 | 212,500 | |||||
CMBS | |||||||
Subsequent Event [Line Items] | |||||||
Net investments in debt securities | $ 259,200 | 259,200 | |||||
Property Disposition 2022 | |||||||
Subsequent Event [Line Items] | |||||||
Aggregate gross sales price | $ 1,550,000 | ||||||
Number of properties disposed | property | 112 | ||||||
Proceeds from disposition of properties | $ 1,500,000 | ||||||
Gain (loss) on sale of properties | $ 110,400 | ||||||
Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Redemption of common stock (shares) | shares | 1.3 | ||||||
Redemptions of common stock | $ 9,400 | ||||||
Redemption price per Share (usd per share) | $ / shares | $ 7.20 | ||||||
Proceeds from disposition of properties | $ 33,300 | ||||||
Gain (loss) on sale of properties | $ 1,600 | ||||||
Subsequent event | Interest rate swaps | |||||||
Subsequent Event [Line Items] | |||||||
Number of derivative instruments terminated | agreement | 1 | ||||||
Subsequent event | Mortgages | |||||||
Subsequent Event [Line Items] | |||||||
Long-term debt | $ 49,300 | ||||||
Repayments of senior loan | 15,800 | ||||||
Subsequent event | J.P. Morgan | Credit facilities | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 300,000 | ||||||
Proceeds from credit agreement | 215,000 | ||||||
Repayments of credit agreement | 100,000 | ||||||
Subsequent event | J.P. Morgan | Credit facilities | Term Loan | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 100,000 | ||||||
Subsequent event | J.P. Morgan | Credit facilities | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 200,000 | ||||||
Subsequent event | J.P. Morgan | Credit facilities | Letter of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 30,000 | ||||||
Subsequent event | N P J V Holdings | |||||||
Subsequent Event [Line Items] | |||||||
Additional contribution | 5,400 | ||||||
Subsequent event | Reserves For Settlement Of Loan Acquisitions | |||||||
Subsequent Event [Line Items] | |||||||
Loans settled | 14,800 | ||||||
Subsequent event | Corporate senior loans | |||||||
Subsequent Event [Line Items] | |||||||
Investment in corporate senior loans | 20,000 | ||||||
Proceeds from principal repayments | 17,600 | ||||||
Subsequent event | Liquid senior loans | |||||||
Subsequent Event [Line Items] | |||||||
Debt settled | 37,700 | ||||||
Subsequent event | Liquid senior loans | Reserves For Settlement Of Loan Acquisitions | |||||||
Subsequent Event [Line Items] | |||||||
Loans settled | 14,100 | ||||||
Subsequent event | First mortgage loans | Mass Mutual | |||||||
Subsequent Event [Line Items] | |||||||
Long-term debt | 60,800 | ||||||
Subsequent event | C I M Income N A V Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Repayments of senior loan | $ 212,500 | ||||||
Subsequent event | C I M Income N A V Credit Facility | Interest rate swaps | |||||||
Subsequent Event [Line Items] | |||||||
Number of derivative instruments terminated | agreement | 2 | ||||||
Outstanding notional amount | $ 140,000 | ||||||
Subsequent event | Commercial property | |||||||
Subsequent Event [Line Items] | |||||||
Aggregate gross sales price | $ 36,900 | ||||||
Number of properties disposed | loan | 7 | ||||||
Subsequent event | CMBS | |||||||
Subsequent Event [Line Items] | |||||||
Net investments in debt securities | $ 4,400 | ||||||
Subsequent event | Property Disposition 2022 | |||||||
Subsequent Event [Line Items] | |||||||
Aggregate gross sales price | $ 68,300 |