10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to             

Commission file number 000-54939

CIM REAL ESTATE FINANCE TRUST, INC.

(Exact name of registrant as specified in its charter)

Maryland			27-3148022
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)
2398 East Camelback Road, 4th Floor
Phoenix,	Arizona		85016
(Address of principal executive offices)			(Zip code)
	(602)	778-8700
(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report) 

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
None	None	None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐	Non-accelerated filer	☒
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of August 4, 2023, there were approximately 436.8 million shares of common stock, par value $0.01 per share, of CIM Real Estate Finance Trust, Inc. outstanding.

CIM REAL ESTATE FINANCE TRUST, INC.

INDEX

PART I — FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	3
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022	4
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2023 and 2022	5
Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2023 and 2022	6
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022	8
Notes to Condensed Consolidated Financial Statements	10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3. Quantitative and Qualitative Disclosures About Market Risk	59
Item 4. Controls and Procedures	61
PART II — OTHER INFORMATION
Item 1. Legal Proceedings	62
Item 1A. Risk Factors	62
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3. Defaults Upon Senior Securities	62
Item 4. Mine Safety Disclosures	62
Item 5. Other Information	62
Item 6. Exhibits	63
Signature	64

2

PART I — FINANCIAL INFORMATION

Item 1.    Financial Statements

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 (in thousands, except share and per share amounts) (Unaudited)

	June 30, 2023		December 31, 2022
ASSETS
Real estate assets:
Land	$	325,628	$	578,970
Buildings, fixtures and improvements	841,746		1,462,726
Intangible lease assets	159,202		276,684
Condominium developments	111,981		130,494
Total real estate assets, at cost	1,438,557		2,448,874
Less: accumulated depreciation and amortization	(157,122)		(270,946)
Total real estate assets, net	1,281,435		2,177,928
Investment in unconsolidated entities	101,223		100,604
Real estate-related securities, at fair value, net of credit loss allowances of $23,452 and $0 as of June 30, 2023 and December 31, 2022, respectively	647,327		576,391
Loans held-for-investment and related receivables, net	4,165,521		4,043,898
Less: Current expected credit losses	(67,562)		(42,344)
Total loans held-for-investment and related receivables, net	4,097,959		4,001,554
Cash and cash equivalents	416,891		118,978
Restricted cash	51,772		57,616
Rents and tenant receivables, net	16,481		33,968
Prepaid expenses, derivative assets and other assets	9,322		26,243
Deferred costs, net	15,335		16,429
Accrued interest receivable	26,861		22,343
Total assets	$	6,664,606	$	7,132,054
LIABILITIES AND STOCKHOLDERS’ EQUITY
Repurchase facilities, notes payable and credit facilities, net	$	3,989,898	$	4,422,833
Accrued expenses and accounts payable	23,375		25,666
Due to affiliates	14,298		16,086
Intangible lease liabilities, net	13,956		19,054
Distributions payable	15,308		14,828
Deferred rental income and other liabilities	5,428		7,274
Total liabilities	4,062,263		4,505,741
Commitments and contingencies (Note 11)
Redeemable common stock	170,136		170,238
STOCKHOLDERS’ EQUITY
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized, none issued and outstanding	—		—
Common stock, $0.01 par value per share; 490,000,000 shares authorized, 437,381,972 and 437,397,414 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	4,374		4,373
Capital in excess of par value	3,529,765		3,529,523
Accumulated distributions in excess of earnings	(1,035,084)		(1,029,287)
Accumulated other comprehensive loss	(66,848)		(48,526)
Total stockholders’ equity	2,432,207		2,456,083
Non-controlling interests	—		(8)
Total equity	2,432,207		2,456,075
Total liabilities, redeemable common stock, non-controlling interests and stockholders’ equity	$	6,664,606	$	7,132,054

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 (in thousands, except share and per share amounts) (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Rental and other property income	$	25,682	$	53,508	$	64,463	$	127,244
Interest income	115,038		44,984		223,121		76,447
Total revenues	140,720		98,492		287,584		203,691
Expenses:
General and administrative	4,921		3,680		8,219		7,155
Interest expense, net	59,548		32,668		125,782		62,664
Property operating	3,007		5,249		5,583		12,976
Real estate tax	1,231		2,024		2,048		8,737
Expense reimbursements to related parties	3,681		3,777		7,249		7,471
Management fees	12,859		13,351		25,438		26,698
Transaction-related	63		446		76		453
Depreciation and amortization	9,319		18,015		24,429		37,156
Real estate impairment	—		15,996		4,814		19,287
Increase in provision for credit losses	49,637		4,942		51,090		9,651
Total expenses	144,266		100,148		254,728		192,248
Other income (expense):
Gain on disposition of real estate and condominium developments, net	26,563		81,107		46,186		113,681
Gain on investment in unconsolidated entities	5,806		1,323		5,036		6,663
Unrealized gain (loss) on equity security	3,096		(4,064)		5,354		(6,410)
Other income, net	850		2,272		1,174		3,577
Loss on extinguishment of debt	(894)		(5,369)		(4,539)		(16,240)
Total other income	35,421		75,269		53,211		101,271
Net income	$	31,875	$	73,613	$	86,067	$	112,714
Net (loss) income allocated to noncontrolling interest	—		(72)		8		(63)
Net income attributable to the Company	$	31,875	$	73,685	$	86,059	$	112,777
Weighted average number of common shares outstanding:
Basic and diluted	437,401,621		437,346,523		437,417,648		437,360,190
Net income per common share:
Basic and diluted	$	0.07	$	0.17	$	0.20	$	0.26

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 (in thousands) (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net income	$	31,875	$	73,613	$	86,067	$	112,714
Other comprehensive income (loss)
Unrealized loss on real estate-related securities	(5,606)		(10,909)		(31,916)		(15,787)
Amount of loss reclassified from other comprehensive loss into income as an increase in provision for credit losses	13,594		—		13,594		—
Unrealized gain on interest rate swaps	—		795		—		2,283
Amount of loss reclassified from other comprehensive loss into income as interest expense, net	—		69		—		62
Total other comprehensive income (loss)	7,988		(10,045)		(18,322)		(13,442)
Comprehensive income	39,863		63,568		67,745		99,272
Comprehensive (loss) income attributable to noncontrolling interest	—		(72)		8		(63)
Comprehensive income attributable to the Company	$	39,863	$	63,640	$	67,737	$	99,335

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 (in thousands, except share amounts) (Unaudited)

	Common Stock			Capital in  Excess of Par Value		Accumulated Distributions in Excess of Earnings		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity		Non-Controlling Interests		Total Equity
	Number of Shares	Par Value
Balance as of January 1, 2023	437,397,414	$	4,373	$	3,529,523	$	(1,029,287)	$	(48,526)	$	2,456,083	$	(8)	$	2,456,075
Issuance of common stock	1,637,923	17		10,746		—		—		10,763		—		10,763
Equity-based compensation	—	—		120		—		—		120		—		120
Distributions declared on common stock — $0.11 per common share	—	—		—		(45,929)		—		(45,929)		—		(45,929)
Redemptions of common stock	(1,605,529)	(16)		(10,532)		—		—		(10,548)		—		(10,548)
Changes in redeemable common stock	—	—		(213)		—		—		(213)		—		(213)
Comprehensive income (loss)	—	—		—		54,184		(26,310)		27,874		8		27,882
Balance as of March 31, 2023	437,429,808	$	4,374	$	3,529,644	$	(1,021,032)	$	(74,836)	$	2,438,150	$	—	$	2,438,150
Issuance of common stock	1,637,602	16		10,743		—		—		10,759		—		10,759
Equity-based compensation	—	—		120		—		—		120		—		120
Distributions declared on common stock — $0.11 per common share	—	—		—		(45,927)		—		(45,927)		—		(45,927)
Redemptions of common stock	(1,685,438)	(16)		(11,057)		—		—		(11,073)		—		(11,073)
Changes in redeemable common stock	—	—		315		—		—		315		—		315
Comprehensive income	—	—		—		31,875		7,988		39,863		—		39,863
Balance as of June 30, 2023	437,381,972	$	4,374	$	3,529,765	$	(1,035,084)	$	(66,848)	$	2,432,207	$	—	$	2,432,207

6

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 (in thousands, except share amounts) (Unaudited) — Continued

	Common Stock			Capital in  Excess of Par Value		Accumulated Distributions in Excess of Earnings		Accumulated Other Comprehensive Income (Loss)		Total Stockholders’ Equity		Non-Controlling Interests		Total Equity
	Number of Shares	Par Value
Balance as of January 1, 2022	437,373,981	$	4,374	$	3,529,126	$	(1,008,561)	$	2,949	$	2,527,888	$	1,073	$	2,528,961
Issuance of common stock	1,329,825	13		9,561		—		—		9,574		—		9,574
Equity-based compensation	—	—		37		—		—		37		—		37
Distributions declared on common stock — $0.09 per common share	—	—		—		(40,018)		—		(40,018)		—		(40,018)
Redemptions of common stock	(1,345,814)	(13)		(9,676)		—		—		(9,689)		—		(9,689)
Changes in redeemable common stock	—	—		115		—		—		115		—		115
Distributions to non-controlling interests	—	—		—		—		—		—		(14)		(14)
Comprehensive income (loss)	—	—		—		39,092		(3,397)		35,695		9		35,704
Balance as of March 31, 2022	437,357,992	$	4,374	$	3,529,163	$	(1,009,487)	$	(448)	$	2,523,602	$	1,068	$	2,524,670
Issuance of common stock	1,325,282	13		9,529		—		—		9,542		—		9,542
Equity-based compensation	22,892	—		120		—		—		120		—		120
Distributions declared on common stock — $0.09 per common share	—	—		—		(40,018)		—		(40,018)		—		(40,018)
Redemptions of common stock	(1,395,095)	(14)		(10,030)		—		—		(10,044)		—		(10,044)
Changes in redeemable common stock	—	—		503		—		—		503		—		503
Distributions to non-controlling interests	—	—		—		—		—		—		(16)		(16)
Comprehensive income (loss)	—	—		—		73,685		(10,045)		63,640		(72)		63,568
Balance as of June 30, 2022	437,311,071	$	4,373	$	3,529,285	$	(975,820)	$	(10,493)	$	2,547,345	$	980	$	2,548,325

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands) (Unaudited)

	Six Months Ended June 30,
	2023		2022
Cash flows from operating activities:
Net income	$	86,067	$	112,714
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, net	24,376		37,174
Amortization of deferred financing costs	5,235		6,144
Amortization and accretion on deferred loan fees	(5,977)		(4,937)
Amortization of premiums and discounts on credit investments	(18,717)		(1,585)
Capitalized interest income on real estate-related securities and loans held-for-investment	(571)		(608)
Equity-based compensation	240		157
Straight-line rental income	(1,435)		(3,191)
Write-offs for uncollectible lease-related receivables	578		(695)
Gain on disposition of real estate assets and condominium developments, net	(46,186)		(113,681)
Loss on sale of credit investments, net	690		170
Gain on investment in unconsolidated entities	(5,036)		(6,663)
Gain on sale of marketable security	—		(22)
Unrealized (gain) loss on equity security	(5,354)		6,431
Amortization of fair value adjustment and gain on interest rate swaps	—		140
Loss (gain) on interest rate caps	4,399		(1,851)
Impairment of real estate assets	4,814		19,287
Increase in provision for credit losses	51,090		9,651
Write-off of deferred financing costs	3,564		7,836
Return on investment in unconsolidated entities	5,036		2,022
Changes in assets and liabilities:
Rents and tenant receivables, net	6,141		67,285
Prepaid expenses and other assets	12,522		(51,398)
Accrued interest receivable	(4,518)		(7,404)
Accrued expenses and accounts payable	(3,272)		(3,440)
Deferred rental income and other liabilities	(1,846)		(12,125)
Due to affiliates	(1,788)		(180)
Net cash provided by operating activities	110,052		61,231
Cash flows from investing activities:
Investment in unconsolidated entities	(5,420)		(43,250)
Return of investment in unconsolidated entities	4,801		614
Investment in real estate-related securities	(143,157)		(259,198)
Investment in liquid corporate senior loans	(80,553)		(110,369)
Investment in real estate assets and capital expenditures	(5,639)		(14,426)
Investment in corporate senior loans	(80,977)		(55,251)
Investment in first mortgage loans	(135,398)		(1,223,605)
Origination and exit fees received on loans held-for-investment	—		13,365
Principal payments received on loans held-for-investment	156,601		127,101
Principal payments received on real estate-related securities	53,591		1,250
Net proceeds from sale of real estate-related securities	—		132
Net proceeds from disposition of real estate assets and condominium developments	925,848		1,205,183
Net proceeds from sale of liquid corporate senior loans	25,490		35,290
Redemption of investment in unconsolidated entities	—		60,663
Proceeds from the settlement of insurance claims	—		619
Net cash provided by (used in) investing activities	$	715,187	$	(261,882)

8

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands) (Unaudited) — Continued

	Six Months Ended June 30,
	2023		2022
Cash flows from financing activities:
Redemptions of common stock	$	(21,621)	$	(19,733)
Distributions to stockholders	(69,854)		(60,834)
Proceeds from borrowings	241,610		1,615,858
Repayments of borrowings, and prepayment penalties	(679,322)		(1,235,322)
Termination of interest rate swaps	—		(101)
Distributions to non-controlling interests	—		(30)
Deferred financing costs paid	(3,983)		(8,921)
Net cash (used in) provided by financing activities	(533,170)		290,917
Net increase in cash and cash equivalents and restricted cash	292,069		90,266
Cash and cash equivalents and restricted cash, beginning of period	176,594		144,173
Cash and cash equivalents and restricted cash, end of period	$	468,663	$	234,439
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	$	416,891	$	173,417
Restricted cash	51,772		61,022
Total cash and cash equivalents and restricted cash	$	468,663	$	234,439
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Distributions declared and unpaid	$	15,308	$	13,338
Accrued capital expenditures	$	54	$	561
Construction reserve allocation	$	(190)	$	—
Accrued deferred financing costs	$	167	$	596
Mortgage notes payable assumed by buyer in connection with disposition of real estate assets	$	—	$	(313,712)
Common stock issued through distribution reinvestment plan	$	21,522	$	19,116
Change in fair value of derivative instruments	$	—	$	2,205
Change in fair value of real estate-related securities	$	(18,322)	$	(15,787)
Conversion of preferred units to loans held-for-investment	$	—	$	68,242
Supplemental Cash Flow Disclosures:
Interest paid	$	122,068	$	61,802
Cash paid for taxes	$	911	$	1,018

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited)

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 seeks to attain attractive risk-adjusted returns and create long term value for its investors by investing in a diversified portfolio of senior secured mortgage loans, creditworthy long-term net-leased property investments and other senior loan and liquid credit investments. As of June 30, 2023, the Company’s loan portfolio consisted of 357 loans with a net book value of $4.1 billion, and investments in real estate-related securities of $647.3 million. As of June 30, 2023, the Company owned 195 properties, comprising approximately 6.3 million rentable square feet of commercial space located in 37 states. As of June 30, 2023, the rentable square feet at these properties was 99.8% leased, including month-to-month agreements, if any. As of June 30, 2023, the Company owned condominium developments with a net book value of $112.0 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 Group”). CIM Group is a community-focused real estate and infrastructure owner, operator, lender and developer. CIM Group is headquartered in Los Angeles, CA, with offices in Atlanta, GA, Chicago, IL, Dallas, TX, New York, NY, Orlando, FL, Phoenix, AZ and Tokyo, Japan. CIM Group also maintains additional offices across the United States, as well as in Korea, Hong Kong and the United Kingdom to support its platform.

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. Collectively, CMFT Management, the Company’s manager, and the Investment Advisor, together with certain other affiliates of CIM Group, serve as the Company’s sponsor, which is referred to as the Company’s “sponsor” or “CIM”.

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 “Initial Offering”). The Company ceased issuing shares in the Initial Offering on April 4, 2014. At the completion of the Initial 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 Initial Offering and approximately 5.1 million shares of common stock issued pursuant to the distribution reinvestment plan (“DRIP”) portion of the Initial Offering. The remaining approximately 404,000 unsold shares from the Initial 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 Initial 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 continues 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 Initial

10

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

Offering in meeting their customer account reporting obligations under Financial Industry Regulatory Authority Rule 2231. Distributions are reinvested in shares of the Company’s common stock for participants in the DRIP at the estimated per share NAV as determined by the Board. Additionally, the estimated per share NAV as determined by the Board serves as the per share NAV for purposes of the share redemption program. As of June 30, 2023, the estimated per share NAV of the Company’s common stock was $6.57, which was established by the Board on December 19, 2022 using a valuation date of September 30, 2022. Commencing on December 21, 2022, $6.57 served as the per share NAV, including for shares issued pursuant to the DRIP. The Company’s estimated per share NAVs are not audited or reviewed by its independent registered public accounting firm.

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, 2022, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

In determining whether the Company has controlling interests in an entity and is required 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 the entities 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.

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June 30, 2023 (Unaudited) – (Continued)

Reclassifications

Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. The Company has chosen to break out the details of $32.7 million and $62.7 million of interest expense, net from other income, net into expenses in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively, driven by the Company’s current investment portfolio composition being predominantly comprised of credit investments. This reclassification of interest expense, net did not have an impact on net income or cash flow from operating activities. In addition, the Company has chosen to break out the details of $4.1 million and $6.4 million of unrealized loss on equity security from other income, net in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively. The Company has also chosen to break out the details of $11.9 million of accrued interest receivable from prepaid expenses, derivative assets and other assets in the Company’s condensed consolidated balance sheet as of June 30, 2022, which resulted in a corresponding breakout of $7.4 million from prepaid expenses, derivative assets and other assets to accrued interest receivable in the Company’s condensed consolidated statement of cash flows for the six months ended June 30, 2022. The reclassifications had no effect on previously reported totals or subtotals.

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; significant increases to budgeted costs for units under development; and a reduction in prevailing market values for assets being considered for disposition. 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, 2023, as part of the Company’s quarterly impairment review procedures, the Company recorded impairment charges of $4.8 million related to one property, due to the sales price being less than its respective carrying value. The Company’s impairment assessment as of June 30, 2023 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. During the six months ended June 30, 2022, 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 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.

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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, 2023, the Company did not identify any real estate assets as held for sale.

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. Given the Company’s current asset portfolio and strategy, the Company’s dispositions during the six months ended June 30, 2023 and 2022 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, 2023.

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.

Investment in Unconsolidated Entities

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 approximately 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 approximately 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 of $5.8 million and $5.0 million, respectively, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2023, respectively, in the condensed consolidated statements of operations. The Company recorded a gain of $1.3 million and $1.5 million, respectively, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2022. During the six

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months ended June 30, 2023, the Company contributed an additional $5.4 million in NP JV Holdings and received $5.8 million as a return of capital that can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date. As of June 30, 2023 and December 31, 2022, the Company’s aggregate investment in NP JV Holdings of $101.2 million and $100.6 million, respectively, is included in investment in unconsolidated entities on the condensed consolidated balance sheets. For more information, refer to Note 6 — Investment 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”). 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 consolidated balance sheet and such share is recognized as a profit or loss on the consolidated statements of operations. During the six months ended June 30, 2022, the Company recorded its share of CIM UII Onshore’s gain totaling $5.2 million. 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.

Restricted Cash

The Company had $51.8 million and $57.6 million in restricted cash as of June 30, 2023 and December 31, 2022, respectively. Included in restricted cash was $7.4 million and $15.4 million held by lenders in lockbox accounts, as of June 30, 2023 and December 31, 2022, 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 $24.8 million and $22.6 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, 2023 and December 31, 2022, respectively. In addition, the Company had a $19.6 million deposit held as cash collateral included in restricted cash as of June 30, 2023 and December 31, 2022 to be applied by Barclays Bank PLC (“Barclays”) as repayment of certain eligible assets transferred under the master repurchase agreement with Barclays.

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, 2023, 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 income (loss). During the six months ended June 30, 2023, the Company invested $143.2 million in CMBS. As of June 30, 2023, the Company had investments in 24 CMBS with an estimated aggregate fair value of $603.7 million.

In addition, the Company had an investment in an equity security with an estimated aggregate fair value of $43.6 million as of June 30, 2023, which is comprised of RTL Common Stock received as consideration in connection with the RTL Purchase and Sale Agreement (both of which are defined in Note 4 — Real Estate Assets). This investment is carried at its estimated fair value with unrealized gains and losses reported on the condensed consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recorded $1.4 million and $2.7 million, respectively, of dividend income on RTL Common Stock. During the three and six months ended June 30, 2022, the Company recorded $1.4 million of dividend income on RTL Common Stock. Dividend income is included in other income, net on the condensed consolidated statements of operations. The Company also recorded $3.1 million and $5.4 million of unrealized gain on RTL Common Stock during the three and six months ended June 30, 2023, respectively, and recorded $4.1 million and $6.4 million of unrealized loss on RTL Common Stock during the three and six months ended June 30, 2022, respectively, all of which is included in unrealized gain (loss) on equity security in 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, such as market conditions. Such losses that are credit related are recorded as a current expected credit loss in increase in provision to credit losses on the Company’s condensed consolidated statements of operations. Subsequent

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cumulative adverse changes in expected cash flows on the Company’s available-for-sale securities are recognized as an increase to current expected credit losses. However, the allowance is limited to the amount by which the available-for-sale security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are recognized as a decrease to current expected credit losses. For additional information regarding the Company’s process for estimating current expected credit losses for its real estate-related securities, see the Current Expected Credit Losses section below.

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, 2023, the Company capitalized $287,000 and $571,000, respectively, of interest income to real estate-related securities. 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.

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, 2023, one of the Company’s liquid corporate senior loan investments was on a nonaccrual status with a carrying value of $2.9 million, which represented less than 1% of the carrying value of the Company’s liquid corporate senior loans portfolio.

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 and CMBS 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,

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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 corporate 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 held-for-investment 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.

In estimating credit losses related to real estate-related securities, management considers a variety of factors, 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

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interest or principal payments, and external credit ratings and recent changes in such ratings. Credit losses, if any, are estimated by calculating the difference between (i) the present value of estimated cash flows expected to be collected from the security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) the net amortized cost basis of the security. Significant judgment is used in estimating future cash flows for the Company’s real estate-related securities.

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, 2023 and 2022, the Company capitalized $5.3 million and $7.2 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, 2023 and 2022 was $848,000 and $711,000, 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 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

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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 corporate senior loans is accrued as earned beginning on the settlement date.

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 primarily floating rate first and second lien mortgage loans, either directly or through co-investments in joint ventures, related to real estate assets. This segment also includes investments in real estate-related securities, liquid corporate senior loans and corporate senior loans.

Real estate — engages primarily in acquiring and managing geographically diversified income-producing retail, industrial and office properties that are primarily single-tenant properties, which are leased to creditworthy tenants under long-term net leases.

See Note 16 — Segment Reporting for a further discussion regarding these segments.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements.

On March 31, 2022, the FASB issued ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures (Topic 326) (“ASU 2022-02”). ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The ASU became effective for the Company beginning January 1, 2023 and is generally to be applied prospectively. ASU 2022-02 did not have an impact on the Company’s condensed consolidated financial statements for the six months ended June 30, 2023.

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. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

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:

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June 30, 2023 (Unaudited) – (Continued)

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 CMBS by utilizing broker-dealer quotations, reported trades or valuation estimates from pricing models to determine the reported price. Pricing models for CMBS 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, 2023, the Company concluded that $440.2 million of its CMBS fell under Level 2 and $163.5 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, 2023, the estimated fair value of the Company’s debt was $3.90 billion, compared to a carrying value of $4.01 billion. The estimated fair value of the Company’s debt as of December 31, 2022 was $4.32 billion, compared to a carrying value of $4.44 billion.

Derivative instruments — The Company’s derivative instruments are comprised of 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, 2023 and December 31, 2022, 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 corporate 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, 2023, $551.3 million and $132.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2022, $494.4 million and $168.0 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of June 30, 2023, the estimated fair value of the Company’s loans held-for-investment and related receivables, net was $4.15 billion, compared to its carrying value of $4.10 billion. As of December 31, 2022, the

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June 30, 2023 (Unaudited) – (Continued)

estimated fair value of the Company’s loans held-for-investment and related receivables, net was $3.98 billion, compared to its carrying value of $4.00 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 that are required to be measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 (in thousands):

	Balance as of June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	$	603,724	$	—	$	440,240	$	163,484
Equity security	43,603		43,603		—		—
Interest rate caps	641		—		641		—
Total financial assets	$	647,968	$	43,603	$	440,881	$	163,484

	Balance as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	$	538,142	$	—	$	348,241	$	189,901
Equity security	38,249		38,249		—		—
Interest rate caps	5,040		—		5,040		—
Total financial assets	$	581,431	$	38,249	$	353,281	$	189,901

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

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, 2023 (in thousands):

	Level 3
Beginning Balance, January 1, 2023	$	189,901
Total gains and losses:
Unrealized loss included in other comprehensive loss, net	(19,552)
Current expected credit losses (1)	(16,432)
Purchases and payments received:
Discounts, net	8,996
Capitalized interest income	571
Ending Balance, June 30, 2023	$	163,484

____________________________________

(1)    Does not include $7.1 million of unrealized losses recognized prior to January 1, 2023 that were reclassified from other comprehensive income on the condensed consolidated statements of comprehensive income to increase in provision for credit losses on the condensed consolidated statements of operations during the six months ended June 30, 2023.

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, 2023, real estate assets related to one property was deemed to be impaired and its carrying value was reduced to an estimated fair value of $4.8 million, resulting in impairment charges of $4.8 million. 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. 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, 2023 and 2022:

Six Months Ended June 30,
2023		2022
Discount Rate	Terminal Capitalization Rate	Discount Rate	Terminal Capitalization Rate
9.7%	7.0% – 9.2%	8.0% – 9.7%	7.5% – 9.2%

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2023 and 2022 (in thousands):

	Six Months Ended June 30,
	2023		2022
Asset class impaired:
Land	$	1,144	$	1,913
Buildings, fixtures and improvements	3,652		8,453
Intangible lease assets	18		980
Intangible lease liabilities	—		(4)
Condominium developments	—		7,945
Total impairment loss	$	4,814	$	19,287

NOTE 4 — REAL ESTATE ASSETS

Property Acquisitions

During the six months ended June 30, 2023 and 2022, the Company did not acquire any properties.

Condominium Development Project

During the six months ended June 30, 2023 and 2022, the Company capitalized $5.3 million and $7.2 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.

Condominium Dispositions

During the six months ended June 30, 2023, the Company disposed of condominium units for a sales price of $29.0 million, resulting in proceeds of $26.1 million after closing costs and a gain of $2.4 million. 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.

2023 Property Dispositions

On December 29, 2022, certain subsidiaries of the Company entered into an Agreement of Purchase and Sale (the “Realty Income Purchase and Sale Agreement”) with certain subsidiaries of Realty Income Corporation (NYSE: O) (“Realty Income”), to sell to Realty Income 185 single-tenant net lease properties encompassing approximately 4.6 million gross rentable square feet of commercial space across 34 states for total consideration of $894.0 million. The consideration was paid in cash.

During the six months ended June 30, 2023, the Company disposed of 185 properties, including 183 retail properties and two industrial properties, for an aggregate gross sales price of $909.3 million, resulting in proceeds of $899.7 million after closing costs and a gain of $43.8 million. The sale of 178 of these properties closed pursuant to the Realty Income Purchase and Sale Agreement for total consideration of $861.0 million, resulting in proceeds of $852.6 million after closing costs and a gain of $32.3 million. No properties are remaining to be sold pursuant to the Realty Income Purchase and Sale Agreement. The Company has no continuing involvement that would preclude sale treatment with these properties. The gain on sale of real estate 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 “RTL 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

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

commercial space across 27 states for total consideration of $1.32 billion (the “Purchase Price”). The Purchase Price includes 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 RTL 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 RTL 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 RTL Purchase and Sale Agreement. 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 RTL 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 with these properties that would preclude sale treatment. 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 was in connection with the RTL Purchase and Sale Agreement. The Company disposed of these properties in phases subsequent to June 30, 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, 2023, one property totaling approximately 45,000 square feet with a carrying value of $9.6 million was deemed to be impaired and its carrying value was reduced to an estimated fair value of $4.8 million, resulting in impairment charges of $4.8 million, which were recorded in the condensed consolidated statements of operations.

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.

NOTE 5 — INTANGIBLE LEASE ASSETS AND LIABILITIES

Intangible lease assets and liabilities consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands, except weighted average life remaining):

	June 30, 2023		December 31, 2022
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $46,351 and $86,881, respectively (with a weighted average life remaining of 11.6 years and 11.1 years, respectively)
	$	105,816	$	174,954
Acquired above-market leases, net of accumulated amortization of $2,891 and $4,210, respectively (with a weighted average life remaining of 11.5 years and 12.9 years, respectively)
	4,144		10,639
Total intangible lease assets, net	$	109,960	$	185,593
Intangible lease liabilities:
Acquired below-market leases, net of accumulated amortization of $4,534 and $5,575, respectively (with a weighted average life remaining of 12.6 years and 12.4 years, respectively)
	$	13,956	$	19,054

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

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, 2023 and 2022 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
In-place lease and other intangible amortization	$	3,014	$	6,326	$	8,096	$	13,112
Above-market lease amortization	$	118	$	305	$	352	$	621
Below-market lease amortization	$	313	$	484	$	746	$	1,063

As of June 30, 2023, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands):

	Amortization
	In-Place Leases and Other Intangibles		Above-Market Leases		Below-Market Leases
Remainder of 2023	$	5,911	$	230	$	602
2024	11,441		424		1,126
2025	11,047		424		1,120
2026	9,843		379		1,120
2027	9,131		356		1,120
Thereafter	58,443		2,331		8,868
Total	$	105,816	$	4,144	$	13,956

NOTE 6 — INVESTMENT IN UNCONSOLIDATED ENTITIES

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 approximately 90% of the membership interest in the NewPoint JV. Through the Unconsolidated Joint Venture, the Company has an approximate 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, 2023, the carrying value of the Company’s investment in NP JV Holdings was $101.2 million, which approximates fair value and is included in investment in unconsolidated entities on the condensed consolidated balance sheets. The Company received $9.8 million in distributions related to its investment in NP JV Holdings during the six months ended June 30, 2023, $5.0 million of which was recognized as a return on investment and $4.8 million of which was recognized as a return of investment and reduced the invested capital and the carrying amount. As of June 30, 2023, the Company had $113.0 million of unfunded commitments related to NewPoint JV. These commitments are not reflected in the accompanying condensed consolidated balance sheets.

The Company provided a limited guaranty to NewPoint JV, under which the Company agreed to guarantee the Unconsolidated Joint Venture’s cross indemnity and its share of capital contribution obligations under the agreement with NewPoint JV.

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. During the 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.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

NOTE 7 — REAL ESTATE-RELATED SECURITIES

As of June 30, 2023, the Company had real estate-related securities with an aggregate estimated fair value of $647.3 million, which included 24 CMBS investments and an investment in a publicly-traded equity security. The CMBS mature on various dates from July 2023 through June 2058 and have interest rates ranging from 6.7% to 12.5% as of June 30, 2023, 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, 2023 (in thousands):

	Real Estate-Related Securities
	Amortized Cost Basis		Unrealized Loss		CECL		Fair Value
CMBS	$	694,006	$	(66,830)	$	(23,452)	$	603,724
Equity security	53,388		(9,785)		—		43,603
Total real estate-related securities	$	747,394	$	(76,615)	$	(23,452)	$	647,327

The following table provides the activity for the real estate-related securities during the six months ended June 30, 2023 (in thousands):

	Amortized Cost Basis		Unrealized Loss		CECL		Fair Value
Real estate-related securities as of January 1, 2023	$	640,037	$	(63,646)	$	—	$	576,391
Face value of real estate-related securities acquired	146,037		—		—		146,037
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs	(2,879)		—		—		(2,879)
Amortization of discount on real estate-related securities	17,219		—		—		17,219
Capitalized interest income on real estate-related securities	571		—		—		571
Principal payments received on real estate-related securities (1)	(53,591)		—		—		(53,591)
Unrealized loss on real estate-related securities, net	—		(12,969)		—		(12,969)
Current expected credit losses	—		—		(23,452)		(23,452)
Real estate-related securities as of June 30, 2023	$	747,394	$	(76,615)	$	(23,452)	$	647,327

____________________________________

(1)    Includes the repayment of the Company’s position in two different tranches of a CMBS instrument prior to their stated maturity dates.

During the six months ended June 30, 2023, the Company invested $143.2 million in CMBS. Unrealized gains and losses on CMBS are recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified into other income, 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, 2023, the Company recorded $13.0 million of net unrealized loss on its real estate-related securities, comprised of an $18.3 million unrealized loss on CMBS, which is included in other comprehensive income (loss) in the accompanying condensed consolidated statements of comprehensive income and a $5.4 million unrealized gain on the Company’s equity security, which is included in unrealized gain (loss) on equity security in the accompanying condensed consolidated statements of operations.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

The scheduled maturities of the Company’s CMBS as of June 30, 2023 are as follows (in thousands):

	CMBS
	Amortized Cost		Estimated Fair Value
Due within one year	$	518,174	$	439,574
Due after one year through five years	133,204		133,091
Due after five years through ten years	—		—
Due after ten years	42,628		31,059
Total	$	694,006	$	603,724

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.

Current Expected Credit Losses

Current expected credit losses reflect the Company’s current estimate for potential credit losses related to real estate-related securities included in the Company’s condensed consolidated balance sheets. Current expected credit related losses are recorded in increase in provision to credit losses on the Company’s condensed consolidated statements of operations. 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 related to its position in one of two different tranches of a CMBS instrument for the six months ended June 30, 2023 (dollar amounts in thousands):

	CMBS
Current expected credit losses as of January 1, 2023	$	—
Provision for credit losses	—
Current expected credit losses as of March 31, 2023	—
Provision for credit losses	23,452
Current expected credit losses as of June 30, 2023	$	23,452

During the six months ended June 30, 2023, the loan collateralizing one of the Company’s CMBS positions was transferred from the master servicer to a special servicer due to payment default generated by halted rent payments on the underlying office properties being mortgaged. During the three months ended June 30, 2023, the underlying collateral of the loan was appraised by the special servicer, resulting in an appraisal reduction representing approximately 44% of one of the CMBS position’s tranches the Company is invested in. Further, the appraisal reduction resulted in reduced cash flows received from the respective CMBS investment during the three months ended June 30, 2023. The Company considered various factors, including the factors noted above, in determining whether a credit loss existed. The present value of cash flows expected to be collected from the CMBS position did not exceed its amortized cost basis, and as such the Company determined the security had incurred a credit loss. The Company does not intend to sell the CMBS position and it is not considered more likely than not that the Company will be forced to sell the security prior to recovering the amortized cost.

As a result of the credit loss incurred, the Company reclassified $13.6 million of unrealized loss from other comprehensive income on the condensed consolidated statements of comprehensive income to increase in provision for credit losses on the condensed consolidated statements of operations during the three months ended June 30, 2023, and recorded an incremental $9.9 million to increase in provision for credit losses on the condensed consolidated statements of operations identified as part of the Company’s quantitative credit loss assessment. The Company will continue to monitor for changes in expected cash flows in order to continue to measure the credit loss.

As of June 30, 2023, there were 15 CMBS positions with unrealized losses reflected in other comprehensive income (loss) in the accompanying condensed consolidated statements of comprehensive income. Upon evaluating these securities, the Company concluded that the unrealized losses included in other comprehensive income (loss) as of June 30, 2023 were noncredit-related and would be recovered from the securities’ estimated future cash flows. The Company considered various factors in reaching this conclusion, including that the Company did not intend to sell the securities, it was not considered more

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

likely than not that the Company would be forced to sell the securities prior to recovering the amortized cost, and there were no material credit events that would have caused the Company to conclude that the amortized cost would not be recovered.

NOTE 8 — LOANS HELD-FOR-INVESTMENT

The Company’s loans held-for-investment consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands):

	As of June 30,		As of December 31,
	2023		2022
First mortgage loans (1)	$	3,317,027	$	3,285,193
Total CRE loans held-for-investment and related receivables, net	3,317,027		3,285,193
Liquid corporate senior loans	710,546		701,540
Corporate senior loans	137,948		57,165
Loans held-for-investment and related receivables, net	$	4,165,521	$	4,043,898
Less: Current expected credit losses	$	(67,562)	$	(42,344)
Total loans held-for-investment and related receivables, net	$	4,097,959	$	4,001,554

____________________________________

(1)    As of June 30, 2023, first mortgage loans included $20.2 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, 2023 and December 31, 2022 (dollar amounts in thousands):

	CRE Loans (1) (2)						Liquid Corporate Senior Loans						Corporate Senior Loans
	June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Number of loans	29			29			317			317			11			4
Principal balance	$	3,334,312		$	3,306,411		$	717,600		$	708,254		$	140,320		$	57,918
Net book value	$	3,272,258		$	3,264,841		$	689,714		$	680,345		$	135,987		$	56,368
Weighted-average interest rate	8.5		%	7.6		%	8.9		%	8.0		%	11.7		%	10.5		%
Weighted-average maximum years to maturity	3.2			3.6			4.5			4.7			3.7			4.6
Unfunded loan commitments (3)	$	266,999		$	304,649		$	1,233		$	1,425		$	30,341		$	4,324

____________________________________

(1)As of June 30, 2023, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to 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 corporate senior loan purchases of $18.4 million that are included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.

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June 30, 2023 (Unaudited) – (Continued)

Activity relating to the Company’s loans held-for-investment portfolio was as follows (in thousands):

	CRE Loans		Liquid Corporate Senior Loans		Corporate Senior Loans		Total Loan Portfolio
Balance, January 1, 2023	$	3,264,841	$	680,345	$	56,368	$	4,001,554
Loan originations and acquisitions	137,524		82,370		82,734		302,628
Sale of loans	—		(25,490)		—		(25,490)
Principal repayments received (1)	(109,623)		(46,645)		(332)		(156,600)
Deferred fees and other items (2)	(2,125)		(2,508)		(1,757)		(6,390)
Accretion and amortization of fees and other items	6,058		1,279		138		7,475
(Provision for) reversal of credit losses (3)	(24,417)		363		(1,164)		(25,218)
Balance, June 30, 2023	$	3,272,258	$	689,714	$	135,987	$	4,097,959

____________________________________

(1)Includes the repayment of a $105.0 million first mortgage loan prior to the maturity date.

(2)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.

(3)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.

Current Expected Credit Losses

Current expected credit losses reflect the Company’s current estimate of potential credit losses related to 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 related to loans held-for-investment by loan type for the six months ended June 30, 2023 (in thousands):

	First Mortgage Loans		Unfunded First Mortgage Loans (1)		Liquid Corporate Senior Loans		Unfunded or Unsettled Liquid Corporate Senior Loans (1)		Corporate Senior Loans		Unfunded Corporate Senior Loans (1)		Total
Current expected credit losses as of January 1, 2023	$	20,352	$	1,890	$	21,195	$	377	$	797	$	66	$	44,677
Provision for (reversal of) credit losses	1,949		138		(914)		(121)		400		1		1,453
Current expected credit losses as of March 31, 2023	$	22,301	$	2,028	$	20,281	$	256	$	1,197	$	67	$	46,130
Provision for credit losses	22,468		2,140		551		3		764		259		26,185
Current expected credit losses as of June 30, 2023	$	44,769	$	4,168	$	20,832	$	259	$	1,961	$	326	$	72,315

____________________________________

(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on 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.

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).

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June 30, 2023 (Unaudited) – (Continued)

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, 2023 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, 2023
	Number of Loans		2023		2022		2021		2020		2019		Total
First mortgage loans by internal risk rating:
1	—		$	—	$	—	$	—	$	—	$	—	$	—
2	1		—		—		—		89,707		—		89,707
3	24		97,955		1,178,664		1,378,990		72,864		49,878		2,778,351
4	4		—		80,566		368,403		—		—		448,969
5	—		—		—		—		—		—		—
Total first mortgage loans	29		97,955		1,259,230		1,747,393		162,571		49,878		3,317,027
Liquid corporate senior loans by internal risk rating:
1	—		—		—		—		—		—		—
2	2		—		—		—		5,272		—		5,272
3	304		45,746		126,649		360,279		148,293		2,312		683,279
4	10		—		3,228		7,989		7,860		—		19,077
5	1	(2)	—		2,918		—		—		—		2,918
Total liquid corporate senior loans	317		45,746		132,795		368,268		161,425		2,312		710,546
Corporate senior loans by internal risk rating:
1	—		—		—		—		—		—		—
2	—		—		—		—		—		—		—
3	11		81,120		56,828		—		—		—		137,948
4	—		—		—		—		—		—		—
5	—		—		—		—		—		—		—
Total corporate senior loans	11		81,120		56,828		—		—		—		137,948
Less: Current expected credit losses													(67,562)
Total loans held-for-investment and related receivables, net	357												$	4,097,959
Weighted Average Risk Rating (3)													3.1

____________________________________

(1)Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.

(2)As of June 30, 2023, one of the Company’s liquid corporate senior loan investments was on nonaccrual status with a carrying value of $2.9 million, which represented less than 1% of the carrying value of the Company’s liquid corporate senior loans portfolio.

(3)Weighted average risk rating calculated based on carrying value at period end.

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. As of June 30, 2023, the Company had two non-designated interest rate cap agreements.

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June 30, 2023 (Unaudited) – (Continued)

The following table summarizes the terms of the Company’s interest rate cap agreements as of June 30, 2023 and December 31, 2022 (dollar amounts in thousands):

		Outstanding Notional					Fair Value of Assets as of
	Balance Sheet	Amount as of		Strike	Effective	Maturity	June 30,		December 31,
	Location	June 30, 2023		Rates	Dates	Dates	2023		2022
Interest Rate Caps	Prepaid expenses, derivative assets and other assets	$	712,000	3.50% (1) to 4.00% (2)	7/15/2021 to 9/13/2022	7/15/2023 to 10/9/2023	$	641	$	5,040

____________________________________

(1)The index used for this derivative instrument is 1-Month London Inter-bank Offered Rate (“LIBOR”).

(2)The index used for this derivative instrument is 1-Month Term SOFR.

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 other income, net on the accompanying condensed consolidated statements of operations. Interest rate swaps are designated as cash flow hedges in order to hedge the variability of the anticipated cash flows on the Company’s variable rate debt. The change in fair value of the derivative instruments designated as hedges is recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate debt. During the year ended December 31, 2022, two of the Company’s interest rate swap agreements matured and three interest rate swap agreements were terminated prior to the maturity dates. For the three and six months ended June 30, 2023, no amounts were reclassified from other comprehensive income (loss) as a change to interest expense. For the three and six months ended June 30, 2022, the amount of loss reclassified from other comprehensive income (loss) as an increase to interest expense was $69,000 and $62,000, respectively. The total unrealized gain on interest rate swaps of $2.5 million as of June 30, 2022 is included in accumulated other comprehensive loss in the accompanying condensed consolidated statements of stockholders’ equity. No such unrealized amounts on interest rate swaps were remaining in other comprehensive income (loss) as of June 30, 2023. Subsequent to June 30, 2023, the interest rate cap indexed to LIBOR matured. The Company includes cash flows from interest rate swap agreements in net cash flows provided by operating activities on its condensed consolidated statements of cash flows, as the Company’s accounting policy is to present cash flows from hedging instruments in the same category in its condensed consolidated statements of cash flows as the category for cash flows from the hedged items.

The Company has agreements with each of its derivative counterparties that contain provisions whereby if the Company defaults on certain of its unsecured indebtedness, the Company could also be declared in default on its derivative obligations, resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value, inclusive of interest payments and accrued interest. In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its derivative instruments based on the credit quality of the Company and the respective counterparty. There were no events of default related to the derivative instruments as of June 30, 2023.

NOTE 10 — REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES

As of June 30, 2023, the Company had $4.0 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 6.2%. 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.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

The following table summarizes the debt balances as of June 30, 2023 and December 31, 2022, and the debt activity for the six months ended June 30, 2023 (in thousands):

			During the Six Months Ended June 30, 2023
	Balance as of December 31, 2022		Debt Issuances & Assumptions (1)		Repayments & Modifications (2)			Amortization		Balance as of June 30, 2023
Notes payable – fixed rate debt	$	36,538	$	—	$	(36,538)		$	—	$	—
Notes payable – variable rate debt	465,517		76,112		(29,057)			—		512,572
First lien mortgage loan	121,940		—		(121,940)			—		—
ABS mortgage notes	763,035		—		(3,870)			—		759,165
Credit facilities	738,500		35,000		(328,000)			—		445,500
Repurchase facilities	2,318,381		130,498		(158,942)			—		2,289,937
Total debt	4,443,911		241,610		(678,347)			—		4,007,174
Deferred costs – credit facility (3)	(740)		—		679		(4)	61		—
Deferred costs – fixed rate debt and first lien mortgage loan	(1,109)		—		702		(4)	407		—
Deferred costs – variable rate debt	(5,261)		(42)		1,210		(4)	257		(3,836)
Deferred costs – ABS mortgage notes	(13,968)		(493)		—			1,021		(13,440)
Total debt, net	$	4,422,833	$	241,075	$	(675,756)		$	1,746	$	3,989,898

____________________________________

(1)Includes deferred financing costs incurred during the period.

(2)In connection with the repayment of certain mortgage notes and the termination of the CMFT Credit Facility (defined below), the Company recognized a loss on extinguishment of debt of $4.5 million during the six months ended June 30, 2023, which included approximately $1.0 million in prepayment penalties.

(3)Deferred costs related to the term portion of the CMFT Credit Facility.

(4)In connection with the repayment of certain mortgage notes and the termination of the CMFT Credit Facility, the Company wrote off approximately $2.6 million of unamortized deferred loan costs.

Notes Payable

During the six months ended June 30, 2023, the Company legally defeased a mortgage loan with an outstanding balance of $23.7 million, resulting in a $205,000 loss on extinguishment of debt in the Company’s condensed consolidated statement of operations during the six months ended June 30, 2023, and repaid the remaining $12.8 million of fixed rate debt outstanding, both in connection with the disposition of the underlying properties securing the fixed rate debt.

As of June 30, 2023, the Company had $512.6 million of variable rate debt outstanding, which included $420.8 million of borrowings financed through a note on note financing arrangement with Massachusetts Mutual Life Insurance Company (the “Mass Mutual Financing”) and $75.0 million of borrowings financed through a note on note financing agreement with Citibank, N.A. (the “Citibank 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 “Assumed Variable Rate Debt”), which the Company subsequently refinanced and paid down the outstanding balance during the year ended December 31, 2022. The amended borrowing agreement related to the refinanced Assumed Variable Rate Debt provides for borrowings up to $62.0 million. As of June 30, 2023, the amount outstanding on the refinanced Assumed Variable Rate Debt totaled $16.8 million. The Company’s outstanding variable rate debt had a weighted average interest rate of 7.2% as of June 30, 2023, and matures on various dates from August 2024 to January 2028.

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, each of which is an affiliate of the Company and is managed on a day-to-day basis by affiliates of CIM. During the six months ended June 30, 2023, the Company paid down the $121.9 million outstanding balance on the Mortgage Loan, $105.8 million of which

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June 30, 2023 (Unaudited) – (Continued)

was in connection with the sale of properties pursuant to the Realty Income Purchase and Sale Agreement. Refer to Note 4 — Real Estate Assets for additional information regarding the sale.

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 175 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 $963.8 million. As of June 30, 2023, amounts outstanding on the Class A Notes totaled $759.2 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

During the six months ended June 30, 2023, CMFT CL Lending Sub AB, LLC (the “Borrower”), an indirect wholly owned subsidiary of the Company, entered into a revolving loan and security agreement (the “Loan and Security Agreement”) with each of the lenders from time to time party thereto (the “Lenders”), Ally Bank as administrative agent and arranger (“Ally Bank”), U.S. Bank Trust Company, National Association, as the collateral custodian, and U.S. Bank National Association as the document custodian, which provides for borrowings in an aggregate principal amount up to $300.0 million (the “Loan Facility”), which may be increased during the revolving period (as defined below) to an aggregate principal amount up to $500.0 million as agreed to by the Borrower, any applicable Lender and Ally Bank.

Borrowings under the Loan and Security Agreement will bear interest equal to SOFR for the relevant interest period, plus an applicable rate. The applicable rate is 2.875% per annum (and an additional 2.00% per annum following an event of default under the Loan and Security Agreement). The revolving period began on February 10, 2023 and concludes on the day preceding the earlier to occur of (i) the scheduled revolving period end date of February 10, 2026, (ii) the date of the declaration of the revolving period end date upon the occurrence and continuation of an event of default, and (iii) the termination date. The termination date is the earlier to occur of (i) February 10, 2028 (two years after the revolving period end date) and (ii) the date of the declaration of the termination date or the date of the automatic occurrence of the termination date upon the occurrence and continuation of an event of default. As of June 30, 2023, no amounts were borrowed and outstanding under the Loan Facility.

The Company had a credit agreement with the lenders from time to time parties thereto, JPMorgan Chase, as administrative agent, letter of credit issuer and syndication agent, and PNC Bank, N.A., as syndication agent, that provided for borrowings in the initial amount of $300.0 million (the “CMFT Credit Facility”). The CMFT Credit Facility was set to mature on July 15, 2025. During the six months ended June 30, 2023, the Company paid down the $240.0 million outstanding balance under the CMFT Credit Facility and terminated the CMFT Credit Facility.

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, as administrative agent, CMFT Securities Investments, LLC, a wholly-owned subsidiary of the

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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, 2023, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $445.5 million at a weighted average interest rate of 7.2%.

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 and concludes on the earlier of (i) the date that is three years after June 23, 2022, the date the third amendment became effective, (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 corporate 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, 2023.

Repurchase Facilities

As of June 30, 2023, indirect wholly-owned subsidiaries of the Company (collectively, the “CMFT Lending Subs”), had Master Repurchase Agreements with Citibank, 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, 2023 (dollar amounts in thousands):

Repurchase Facility	Date of Agreement	Maturity Date(1)		Maximum Facility Size			Weighted Average Interest Rate		Loans Financed under Repurchase Facility (2)		Amount Financed
Citibank	6/4/2020	8/17/2024		$	400,000		6.9%	(3)	$	470,251	$	336,035
Barclays	9/21/2020	9/22/2025		1,250,000			7.0%	(3)	1,112,474		806,317
Wells Fargo	5/20/2021	8/30/2025		750,000			6.8%	(3)	900,638		696,712
Deutsche Bank	10/8/2021	10/8/2023		300,000			7.4%	(3)	196,960		143,862
J.P. Morgan	6/1/2022	7/31/2023	(4)	—		(4)	6.4%	(5)	548,480		307,011
Total				$	2,700,000				$	3,228,803	$	2,289,937

__________________________________

(1)As of June 30, 2023, the repurchase facilities with Citibank and Wells Fargo each have two one-year extension options remaining, the repurchase facility with Barclays has one one-year extension option remaining and the repurchase facility with Deutsche Bank has four one-year extension options remaining. All repurchase facilities are subject to certain conditions set forth in their respective Repurchase Agreements.

(2)CRE mortgage loan balances financed under the Repurchase Facilities with Citibank, Barclays, Wells Fargo and Deutsche Bank reflect the aggregate outstanding principal balance while the CMBS balance financed under the J.P. Morgan Repurchase Facility reflects fair value.

(3)Advances under the Repurchase Agreements accrue interest at per annum rates based on Term SOFR (as such term is defined in the applicable Repurchase Agreement) or the daily compounded SOFR plus a spread ranging from 1.30% to 2.85% to be determined on a case-by-case basis between Citibank, Barclays, Wells Fargo or Deutsche Bank and the CMFT Lending Subs.

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June 30, 2023 (Unaudited) – (Continued)

(4)Facilities under the repurchase facility with J.P. Morgan (“J.P. Morgan Repurchase Facility”) carry a rolling term which is reset monthly. Such facilities carry no maximum facility size.

(5)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, which as of June 30, 2023, ranges from 1.05% to 1.45%.

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, 2023.

Maturities

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2023 (in thousands):

	Principal Repayments
Remainder of 2023	$	451,518
2024	427,838
2025	1,503,029
2026	—
2027	820,429
Thereafter	804,360
Total	$	4,007,174

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, 2023, the Company had $298.6 million of unfunded loan commitments related to its existing CRE loans held-for-investment, corporate senior loans, and liquid corporate senior loans, and $113.0 million of unfunded commitments related to NewPoint JV. These commitments are not reflected in the accompanying condensed consolidated balance sheets.

As of June 30, 2023, the Company had $18.4 million of unsettled liquid corporate senior loan acquisitions, $10.5 million of which settled subsequent to June 30, 2023. Unsettled acquisitions are included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

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.

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 March 24, 2023, the Company and CMFT Management entered into the second amended and restated management agreement (the “Management Agreement”), which amended and restated the amended and restated management agreement between the parties dated August 20, 2019.

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 Group, 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 Group. 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 the 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, 2023 and 2022, no incentive compensation fees were incurred.

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June 30, 2023 (Unaudited) – (Continued)

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,
	2023		2022		2023		2022
Management fees	$	12,859	$	13,351	$	25,438	$	26,698
Expense reimbursements to related parties	$	3,681	$	3,777	$	7,249	$	7,471

Due to Affiliates

Of the amounts shown above, $14.3 million and $14.4 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, 2023 and 2022, 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 Board’s former valuation, compensation and affiliate transactions committee, 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, 2023 and 2022, the Company recorded $107,000 and $234,000, 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 first 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”). The Company redeemed its investment in the preferred units during the year ended December 31, 2022 in exchange for an investment in a first mortgage loan. As of June 30, 2023, $203.6 million of the first mortgage loan was outstanding.

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, 2023, $123.0 million of the first mortgage loan was outstanding.

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 (“CMMT”), 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

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

$212.5 million, of which $99.5 million has been funded, net of $45.8 million returned as a return of capital that can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date. For more information on the NewPoint JV, see Note 2 — Summary of Significant Accounting Policies and Note 6 — Investment in Unconsolidated Entities.

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, 2023, $154.0 million of the first mortgage loan was outstanding.

In April 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, 2023, $145.5 million of the first mortgage loan was outstanding.

During the year ended December 31, 2022, the Company and CIM RACR co-invested $75.9 million and $14.7 million, respectively, in five corporate senior loans to a third-party. During the six months ended June 30, 2023, the Company and CIM RACR co-invested $71.6 million and $13.6 million, respectively, in six corporate senior loans to a third-party. In addition, the Company and CIM RACR upsized a co-invested corporate senior loan to a third-party by $1.7 million and $348,000, respectively, during the six months ended June 30, 2023. As of June 30, 2023, $130.2 million of the corporate senior loans was outstanding. The Sub-Advisor provided investment management services related to these corporate senior loans pursuant to the Sub-Advisory Agreement.

Subsequent to June 30, 2023, the Company and CIM RACR co-invested $464,000 and $58,000, respectively, in one corporate senior loan to a third-party. The Sub-Advisor provided investment management services related to this corporate senior loan pursuant to the Sub-Advisory Agreement.

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.

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. 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 superseded and replaced 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 is 250,000 shares, which is a reduction from 400,000 shares authorized for issuance under the 2018 Plan, and awards of approximately 183,000 shares of common stock are available for future grant at June 30, 2023. 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, 2023, 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 and approximately 67,000 restricted shares in the aggregate to the independent members of the Board under the 2022 Plan. As of June 30, 2023, 116,000 of the restricted shares had vested based on one year of continuous service. The remaining 67,000 restricted shares issued had not vested or been forfeited as of June 30, 2023. The fair value of the Company’s share awards is determined using the Company’s per share NAV on the date of grant.

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

Compensation expense related to the restricted shares is recognized over the vesting period. The Company recorded compensation expense of $120,000 and $240,000 for the three and six months ended June 30, 2023, respectively, and $120,000 and $157,000 for the three and six months ended June 30, 2022, 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, 2023, there was $120,000 of total unrecognized compensation expense related to these restricted shares, which will be recognized ratably over the remaining period of service prior to October 2023.

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, 2023, the Company’s leases had a weighted-average remaining term of 11.1 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, 2023, 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 2023	$	44,620
2024	88,250
2025	88,007
2026	85,242
2027	82,829
Thereafter	635,820
Total	$	1,024,768

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, 2023 and 2022, 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, 2023 and 2022 consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fixed rental and other property income (1)	$	23,035	$	47,941	$	60,392	$	112,647
Variable rental and other property income (2)	2,647		5,567		4,071		14,597
Total rental and other property income	$	25,682	$	53,508	$	64,463	$	127,244

__________________________________

(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.

38

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

The Company has one property subject to a non-cancelable operating ground lease with a remaining term of 10.2 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities) and a related right-of-use (“ROU”) asset (in prepaid expenses, derivative assets and other assets) of $2.0 million in the condensed consolidated balance sheets. The lease liability and ROU asset were initially measured at the present value of the future minimum lease payments using a discount rate of 4.3%. This reflects the Company’s incremental borrowing rate, which was calculated based on the interest rate the Company would incur to borrow on a fully collateralized basis over a term similar to the lease.

The Company recognized $63,000 and $125,000 of ground lease expense during the three and six months ended June 30, 2023, respectively, of which $61,000 and $121,000, respectively, was paid in cash during the period it was recognized. As of June 30, 2023, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $125,000 for the remainder of 2023, $250,000 annually for 2024 through 2028, and $1.2 million thereafter through the maturity date of the lease in August 2033.

NOTE 16 — SEGMENT REPORTING

The Company has two reportable segments: Credit and Real Estate. Corporate/other represents all corporate level and unallocated items and includes the Company’s other asset management activities and 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, 2023 and 2022 (in thousands):

	Real Estate		Credit		Corporate/Other (1)		Company Total
Three Months Ended June 30, 2023
Rental and other property income	$	25,590	$	—	$	92	$	25,682
Interest income	—		115,038		—		115,038
Total revenues	25,590		115,038		92		140,720
General and administrative	348		1,187		3,386		4,921
Interest expense, net	3,165		56,049		334		59,548
Property operating	1,201		—		1,806		3,007
Real estate tax	890		—		341		1,231
Expense reimbursements to related parties	—		—		3,681		3,681
Management fees	2,641		10,218		—		12,859
Transaction-related	12		—		51		63
Depreciation and amortization	9,319		—		—		9,319
Increase in provision for credit losses	—		49,637		—		49,637
Total expenses	17,576		117,091		9,599		144,266
Other income (expense):
Gain on disposition of real estate and condominium developments, net	24,285		—		2,278		26,563
Gain on investment in unconsolidated entities	—		5,806		—		5,806
Unrealized gain on equity security	—		3,096		—		3,096
Other (expense) income, net	(2,352)		1,166		2,036		850
Loss on extinguishment of debt	(24)		—		(870)		(894)
Segment net income (loss)	$	29,923	$	8,015	$	(6,063)	$	31,875
Total assets as of June 30, 2023	$	1,198,007	$	4,948,370	$	518,229	$	6,664,606

__________________________________

(1)Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021.

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

	Real Estate		Credit		Corporate/Other (1)		Company Total
Six Months Ended June 30, 2023
Rental and other property income	$	64,305	$	—	$	158	$	64,463
Interest income	—		223,121		—		223,121
Total revenues	64,305		223,121		158		287,584
General and administrative	422		1,559		6,238		8,219
Interest expense, net	11,316		110,066		4,400		125,782
Property operating	2,888		—		2,695		5,583
Real estate tax	1,315		—		733		2,048
Expense reimbursements to related parties	—		—		7,249		7,249
Management fees	5,891		19,547		—		25,438
Transaction-related	25		—		51		76
Depreciation and amortization	24,429		—		—		24,429
Real estate impairment	4,814		—		—		4,814
Increase in provision for credit losses	—		51,090		—		51,090
Total expenses	51,100		182,262		21,366		254,728
Other income (expense):
Gain on disposition of real estate and condominium developments, net	43,845		—		2,341		46,186
Gain on investment in unconsolidated entities	—		5,036		—		5,036
Unrealized gain on equity security	—		5,354		—		5,354
Other (expense) income, net	(4,192)		3,007		2,359		1,174
Loss on extinguishment of debt	(1,195)		—		(3,344)		(4,539)
Segment net income (loss)	$	51,663	$	54,256	$	(19,852)	$	86,067
Net income allocated to noncontrolling interest	8		—		—		8
Segment net income (loss) attributable to the Company	$	51,655	$	54,256	$	(19,852)	$	86,059
Total assets as of June 30, 2023	$	1,198,007	$	4,948,370	$	518,229	$	6,664,606

__________________________________

(1)Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021.

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

	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
Interest expense, net	10,258		18,784		3,626		32,668
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 expenses	47,750		31,820		20,578		100,148
Other income (expense):
Gain (loss) on disposition of real estate and condominium developments, net	81,181		—		(74)		81,107
Gain on investment in unconsolidated entities	—		1,323		—		1,323
Unrealized loss on equity security	—		(4,064)		—		(4,064)
Other income, net	1,089		1,150		33		2,272
Loss on extinguishment of debt	(2,257)		—		(3,112)		(5,369)
Segment net income (loss)	$	85,668	$	11,573	$	(23,628)	$	73,613
Net loss 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.

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

	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
Interest expense, net	25,341		30,391		6,932		62,664
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 expenses	106,040		54,582		31,626		192,248
Other income (expense):
Gain on disposition of real estate and condominium developments, net	110,446		—		3,235		113,681
Gain on investment in unconsolidated entities	—		1,491		5,172		6,663
Unrealized (loss) gain on equity security	—		(6,433)		23		(6,410)
Other income, net	2,331		1,212		34		3,577
Loss on extinguishment of debt	(12,994)		—		(3,246)		(16,240)
Segment net income (loss)	$	120,787	$	18,135	$	(26,208)	$	112,714
Net loss 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, L.P. (“CIM UII Onshore”).

NOTE 17 — SUBSEQUENT EVENTS

Redemptions of Shares of Common Stock

Subsequent to June 30, 2023, the Company redeemed approximately 1.6 million shares for $10.8 million (at a redemption price of $6.57 per share). The remaining redemption requests received during the three months ended June 30, 2023 totaling approximately 24.8 million shares went unfulfilled.

Investment and Disposition Activity

Subsequent to June 30, 2023, the Company’s investment and disposition activity included the following:

•Disposed of one condominium unit for a sales price of $1.5 million, resulting in net proceeds of $1.4 million after closing costs and a gain of approximately $459,000.

•Settled $10.5 million of liquid senior loan purchases, all of which were traded as of June 30, 2023, and sold $25.8 million of liquid senior loans.

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CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2023 (Unaudited) – (Continued)

•Invested $9.1 million in two corporate senior loans to a third-party.

•Funded an aggregate amount of $5.2 million to five of the Company’s first mortgage loans, and received $4.9 million of principal repayments.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the accompanying condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q. We make statements in this section that are forward-looking statements within the meaning of the federal securities laws. Certain risks may cause our actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. For a complete discussion of such risk factors, see Item 1A — Risk Factors of this Quarterly Report on Form 10-Q and the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Capitalized terms used herein, but not otherwise defined, shall have the meaning ascribed to those terms in “Part I — Financial Information” of this Quarterly Report on Form 10-Q, including the notes to the condensed consolidated financial statements contained therein, and the terms “we,” “us,” “our” and the “Company” refer to CIM Real Estate Finance Trust, Inc.

Forward-Looking Statements

This Quarterly Report on Form 10-Q includes “forward-looking statements” (within the meaning of the federal securities laws, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that reflect our expectations and projections about our future results, performance, prospects and opportunities. We have attempted to identify these forward-looking statements by the use of words such as “may,” “will,” “seek,” “expects,” “anticipates,” “believes,” “targets,” “intends,” “should,” “estimates,” “could,” “continue,” “assume,” “projects,” “plans” or similar expressions. These forward-looking statements are based on information currently available to us and are subject to a number of known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. These factors include, among other things, those discussed below. In addition, these risks and uncertainties include those associated with general economic, market and other conditions. We intend for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act and Section 21E of the Exchange Act, as applicable by law. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of changes in underlying assumptions or new information, future events or otherwise, except as may be required to satisfy our obligations under federal securities law. The forward-looking statements should be read in light of the risk factors identified in Item 1A — Risk Factors of this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2022.

The following are some, but not all, of the assumptions, risks, uncertainties and other factors that could cause our actual results to differ materially from those presented in our forward-looking statements:

•We are subject to risks associated with bankruptcies or insolvencies of our borrowers and tenants and from borrower or tenant defaults generally.

•Our credit and real estate investments subject us to the domestic and international political, economic, capital markets and other conditions, including with respect to the effects of the COVID-19 pandemic and other events.

•We are subject to fluctuations in interest rates which could reduce our ability to generate income on our credit investments.

•We are subject to an increase in inflation that could increase our credit and real estate portfolio related costs at a higher rate than our rental income and other revenue and adversely impact demand for rental space and future extensions of our tenants’ leases.

•We are subject to competition from entities engaged in lending which may impact the availability of origination and acquisition opportunities acceptable to us.

•We may be unable to renew leases, lease vacant space or re-lease space as leases expire on favorable terms or at all.

•We are subject to risks associated with tenant, geographic and industry concentrations with respect to our investments and properties.

•Our properties, intangible assets and other assets, as well as the property securing our loans or other investments, may be subject to impairment charges.

•We could be subject to unexpected costs or unexpected liabilities that may arise from dispositions.

•We are subject to competition in the acquisition and disposition of properties and in the leasing of our properties and we may suffer delays or be unable to acquire, dispose of, or lease properties on advantageous terms.

•We have substantial indebtedness, which may affect our ability to pay distributions and expose us to interest rate fluctuation risk and the risk of default under our debt obligations.

•We are subject to risks associated with the incurrence of additional secured or unsecured debt.

•We may not be able to maintain profitability.

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•We may not generate cash flows sufficient to pay our distributions to stockholders or meet our debt service obligations.

•Our continued compliance with debt covenants depends on many factors and could be impacted by current or future economic conditions, including those associated with the COVID-19 pandemic.

•We may be affected by risks resulting from losses in excess of insured limits.

•We may fail to remain qualified as a REIT for U.S. federal income tax purposes.

•We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability or reduce our operating flexibility.

•We may be unable to list our shares on a national securities exchange in a particular timeframe or at all.

Definitions

We use certain defined terms throughout this Quarterly Report on Form 10-Q that have the following meanings:

The phrase “annualized rental income” refers to the straight-line rental revenue under our leases on operating properties owned as of the respective reporting date, which includes the effect of rent escalations and any tenant concessions, such as free rent, and excludes any contingent rent, such as percentage rent. Management uses annualized rental income as a basis for tenant, industry and geographic concentrations and other metrics within the portfolio. Annualized rental income is not indicative of future performance.

Under a “net lease,” the tenant occupying the leased property (usually as a single tenant) does so in much the same manner as if the tenant were the owner of the property. The tenant generally agrees that it will either have no ability or only limited ability to terminate the lease or abate rent prior to the expiration of the term of the lease as a result of real estate driven events such as casualty, condemnation or failure by the landlord to fulfill its obligations under the lease. There are various forms of net leases, most typically classified as either triple-net or double-net. Triple-net leases typically require the tenant to pay all expenses associated with the property (e.g., real estate taxes, insurance, maintenance and repairs, including roof, structure and parking lot). Double-net leases typically hold the landlord responsible for the capital expenditures for the roof and structure, while the tenant is responsible for all lease payments and remaining operating expenses associated with the property (e.g., real estate taxes, insurance and maintenance).

Overview

We are a non-traded REIT that seeks to attain attractive risk-adjusted returns and create long term value for our investors by investing in a diversified portfolio of senior secured mortgage loans, creditworthy long-term net-leased property investments and other senior loan and liquid credit investments. Our investment strategy allows us to adapt over time in order to respond to evolving market conditions and to capitalize on investment opportunities that may arise at different points in the economic and real estate investment cycle. Subject to market conditions, we expect to pursue a listing of our common stock on a national securities exchange at such time as our Board determines that such a listing would be in the best interests of our stockholders, though we can provide no assurance that a listing will happen in a particular timeframe or at all.

We were formed on July 27, 2010, and we elected to be taxed, and conduct our operations to qualify, as a REIT for U.S. federal income tax purposes. We have no paid employees and are externally managed by CMFT Management and, with respect to investments in securities and certain other of our investments, our Investment Advisor, each of which is an affiliate of CIM Group, a community-focused real estate and infrastructure owner, operator, lender and developer.

As of June 30, 2023, our loan portfolio consisted of 357 loans with a net book value of $4.1 billion, and investments in real estate-related securities of $647.3 million.

As of June 30, 2023, we owned 195 properties, which consisted of 180 retail properties, nine office properties, and six industrial properties, representing 18 industry sectors and comprising approximately 6.3 million rentable square feet of commercial space located in 37 states, with a net book value of $1.2 billion. As of June 30, 2023, we owned condominium developments with a net book value of $112.0 million.

In furtherance of our strategy, during the six months ended June 30, 2023, we disposed of 185 properties encompassing approximately 4.7 million gross rentable square feet, including the sale of 178 properties that closed under the Realty Income Purchase and Sale Agreement for total consideration of $861.0 million, as further discussed in Note 4 — Real Estate Assets to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

Our operating results and cash flows are primarily influenced by interest income from our credit investments, rental and other property income from our commercial properties, interest expense on our indebtedness and credit investments and

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expenses. In general, our business model is such that rising interest rates will correlate to increases in our net income, while declining interest rates will correlate to decreases in our net income. As of June 30, 2023, 99.3% of our CMBS and loans held-for-investment by carrying value earned a floating rate of interest, primarily indexed to SOFR, and were financed with liabilities that pay interest at floating rates, which resulted in an amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on certain of our floating rate loans. CMFT Management reviews our investment portfolio and is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary. In addition, as 99.8% of our rentable square feet was under lease, including any month-to-month agreements, as of June 30, 2023, with a weighted average remaining lease term of 11.1 years, we believe our exposure to changes in commercial rental rates on our portfolio is substantially mitigated, except for vacancies caused by tenant bankruptcies or other factors. Our manager regularly monitors the creditworthiness of our tenants by reviewing each tenant’s financial results, any available credit rating agency reports on the tenant or guarantor, the operating history of the property with such tenant, the tenant’s market share and track record within its industry segment, the general health and outlook of the tenant’s industry segment and other information for changes and possible trends. If our manager identifies significant changes or trends that may adversely affect the creditworthiness of a tenant, it will gather a more in-depth knowledge of the tenant’s financial condition and, if necessary, attempt to mitigate the tenant credit risk by evaluating the possible sale of the property or identifying a possible replacement tenant should the current tenant fail to perform on the lease.

Macroeconomic Environment

The six months ended June 30, 2023 have been characterized by continued volatility in global markets, driven by investor concerns over inflation, rising interest rates, slowing economic growth, political and regulatory uncertainty and geopolitical conditions. Multiple bank failures have contributed to instability in the banking sector and have also contributed to diminished liquidity and credit availability in the market broadly.

Continued inflation has caused the Federal Reserve to continue raising interest rates, which has created further uncertainty for the economy and for our borrowers and tenants. Although the majority of our business model is such that rising interest rates will, all else being equal, correlate to increases in our net income, increases in interest rates may adversely affect our existing borrowers, tenants and owned property values. Additionally, rising rates and increasing costs may dampen consumer spending and slow corporate profit growth, which may negatively impact the collateral underlying certain of our loans and the ability of our tenants to pay rent. While there is debate among economists as to whether such factors indicate that the U.S. will enter a recession, it remains difficult to predict the full impact of recent changes and any future changes in interest rates or inflation.

For a complete discussion of risk factors related to the economy that could impact our lending and our business, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

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Operating Highlights and Key Performance Indicators

Activity from January 1, 2023 through June 30, 2023

Operating Results:

•Net income attributable to the Company of $86.1 million, or $0.20 per share.

•Declared aggregate distributions of $0.21 per share.

Credit Portfolio Activity:

•Invested $135.4 million in first mortgage loans and received principal repayments on loans held-for-investment of $156.6 million.

•Invested $80.6 million in liquid corporate senior loans and sold liquid corporate senior loans for an aggregate gross sales price of $26.4 million.

•Invested $143.2 million in CMBS and received repayments on CMBS of $53.6 million.

•Invested $81.0 million in corporate senior loans.

Real Estate Portfolio Activity:

•Disposed of 185 properties for an aggregate sales price of $909.3 million.

•Disposed of 10 condominium units for a sales price of $29.0 million.

Financing Activity:

•Decreased total debt by $436.7 million.

•Entered into a new financing facility that provides up to $300.0 million in financing, which may be increased to an aggregate principal amount up to $500.0 million, pursuant to the Loan and Security Agreement.

•Paid down the $240.0 million outstanding balance under the CMFT Credit Facility and terminated the CMFT Credit Facility.

•Paid down the $121.9 million outstanding balance on the Mortgage Loan.

Portfolio Information

The following table shows the carrying value of our portfolio by investment type as of June 30, 2023 and 2022 (dollar amounts in thousands):

	As of June 30,
	2023					2022
	Asset Count	Carrying Value				Asset Count	Carrying Value
Loan Held-For-Investment
First mortgage loans	29	$	3,317,027	55.1	%	28	$	3,171,155	48.5	%
Liquid corporate senior loans	317	710,546		11.8	%	309	684,866		10.4	%
Corporate senior loans	11	137,948		2.3	%	4	55,218		0.8	%
Less: Current expected credit losses		(67,562)		(1.1)	%		(23,935)		(0.4)	%
Total loans held-for-investment and related receivables, net	357	4,097,959		68.1	%	341	3,887,304		59.3	%
Real Estate-Related Securities
CMBS and equity security	25	670,779		11.2	%	11	274,382		4.2	%
Less: Current expected credit losses		(23,452)		(0.4)	%		—		—	%
Total real estate-related securities, net	25	647,327		10.8	%	11	274,382		4.2	%
Real Estate
Total real estate assets and intangible lease liabilities, net	195	1,267,479		21.1	%	402	2,397,206		36.5	%
Total Investment Portfolio	577	$	6,012,765	100.0	%	754	$	6,558,892	100.0	%

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Credit Portfolio Information

The following table details overall statistics for our credit portfolio as of June 30, 2023 (dollar amounts in thousands):

	CRE Loans (1)(2)			Liquid Corporate Senior Loans			CMBS and Equity Security			Corporate Senior Loans
Number of investments (3)	29			317			25			11
Principal balance	$	3,334,312		$	717,600		$	776,058		$	140,320
Net book value	$	3,272,258		$	689,714		$	647,327		$	135,987
Unfunded loan commitments	$	266,999		$	1,233		$	—		$	30,341
Weighted-average interest rate	8.5		%	8.9		%	9.1		%	11.7		%
Weighted-average maximum years to maturity	3.2			4.5			2.1			3.7

____________________________________

(1)As of June 30, 2023, 100% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.

(2)Maximum maturity date assumes all extension options are exercised by the borrower; however, our CRE loans may be repaid prior to such date.

(3)Table does not include our investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies — Investment in Unconsolidated Entities to the condensed consolidated financial statements in this Quarterly Report on Form 10-Q), which had a carrying value of $101.2 million as of June 30, 2023.

Real Estate Portfolio Information

As of June 30, 2023, we owned 195 properties located in 37 states, the gross rentable square feet of which was 99.8% leased, including any month-to-month agreements, with a weighted average lease term remaining of 11.1 years. As of June 30, 2023, no single tenant accounted for greater than 10% of our 2023 annualized rental income. As of June 30, 2023, we had certain geographic and industry concentrations in our property holdings. In particular, we had properties located in Ohio, which accounted for 16% of our 2023 annualized rental income. In addition, we had tenants in the health and personal care stores, manufacturing, and sporting goods, hobby, and musical instrument retailers industries, which accounted for 14%, 12%, and 11%, respectively, of our 2023 annualized rental income. During the six months ended June 30, 2023, we disposed of 185 properties for an aggregate gross sales price of $909.3 million. Additionally, during the six months ended June 30, 2023, we sold 10 condominium units for a gross sales price of $29.0 million.

The following table shows the property statistics of our real estate assets as of June 30, 2023 and 2022:

	As of June 30,
	2023		2022
Number of commercial properties	195		402
Rentable square feet (in thousands) (1)	6,270		12,079
Percentage of rentable square feet leased	99.8	%	99.2	%
Percentage of investment-grade tenants (2)	33.7	%	38.7	%

____________________________________

(1)Includes square feet of buildings on land parcels subject to ground leases.

(2)Investment-grade tenants are those with a credit rating of BBB- or higher by Standard & Poor’s or a credit rating of Baa3 or higher by Moody’s Investor Service, Inc. (“Moody’s”). The ratings may reflect those assigned by Standard & Poor’s or Moody’s to the lease guarantor or the parent company, as applicable. The weighted average credit rating is weighted based on annualized rental income and is for only those tenants rated by Standard & Poor’s.

During the six months ended June 30, 2023 and 2022, the Company did not acquire any properties.

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Results of Operations

Overview

We are not aware of any material trends or uncertainties, other than national economic conditions affecting real estate in general, such as inflation and rising interest rates, that may reasonably be expected to have a material impact on our results from the acquisition, management and operation of properties and credit investments other than those listed in the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022 and this Quarterly Report on Form 10-Q.

Our operating segments include Credit and Real Estate. Refer to Note 16 — Segment Reporting to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for further discussion of our operating segments.

The following table compares our summarized results of operations for the three and six months ended June 30, 2023 and 2022 by operating segment (amounts in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30, 2023		June 30, 2022		Change		June 30, 2023		June 30, 2022		Change
Revenues:
Credit Segment	$	115,038	$	44,984	$	70,054	$	223,121	$	76,447	$	146,674
Real Estate Segment	25,590		53,405		(27,815)		64,305		127,044		(62,739)
Corporate	92		103		(11)		158		200		(42)
	140,720		98,492		42,228		287,584		203,691		83,893
Expenses:
Credit Segment	117,091		31,820		85,271		182,262		54,582		127,680
Real Estate Segment	17,576		47,750		(30,174)		51,100		106,040		(54,940)
Corporate	9,599		20,578		(10,979)		21,366		31,626		(10,260)
	144,266		100,148		44,118		254,728		192,248		62,480
Other income (expense):
Credit Segment	10,068		(1,591)		11,659		13,397		(3,730)		17,127
Real Estate Segment	21,909		80,013		(58,104)		38,458		99,783		(61,325)
Corporate	3,444		(3,153)		6,597		1,356		5,218		(3,862)
	35,421		75,269		(39,848)		53,211		101,271		(48,060)
Net income	31,875		73,613		(41,738)		86,067		112,714		(26,647)
Net (loss) income allocated to non-controlling interest	—		(72)		72		8		(63)		71
Net income attributable to the Company	$	31,875	$	73,685	$	(41,810)	$	86,059	$	112,777	$	(26,718)

Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Credit Segment

Revenues

The increase in our Credit segment revenues of $70.1 million for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to increased average index rates during 2023, as well as an increase in the overall size of our investment portfolio. As of June 30, 2023, we held $4.8 billion in credit investments compared to $4.2 billion in credit investments as of June 30, 2022.

Expenses

Expenses for our Credit segment consist primarily of interest expense, management fees, increases (decreases) to our provision for credit losses, and general and administrative expenses. The increase in our Credit segment expenses of $85.3 million for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to increased interest expenses due to higher average index rates during 2023 and increased outstanding borrowings used to fund credit investments. As of June 30, 2023, we held $4.8 billion in credit investments compared to $4.2 billion in credit investments as of June 30, 2022. The increase was further driven by an increase in the provision for credit losses of $44.7 million, primarily

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driven by the $23.5 million credit loss allowance related to a CMBS position that was recognized due to a decline in the underlying collateral value during the three months ended June 30, 2023, as compared to the same period in 2022.

Other Income (Expense)

Other income (expense) for our Credit segment consists of gain on investment in unconsolidated entities, unrealized gain (loss) on equity security, along with dividend income from our equity security. The increase in our Credit segment other income (expense) of $11.7 million during the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to recognizing a $3.1 million unrealized gain on equity security during the three months ended June 30, 2023 compared to a $4.1 million unrealized loss on equity security during the three months ended June 30, 2022. The increase was further driven by a gain on the Unconsolidated Joint Venture of $5.8 million during the three months ended June 30, 2023, compared to a gain of $1.3 million recognized during the same period in 2022.

Real Estate Segment

Revenues

The decrease in our Real Estate segment revenues of $27.8 million for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to the disposition of 207 properties subsequent to June 30, 2022. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”.

Expenses

The decrease in our Real Estate segment expenses of $30.2 million for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to the disposition of 207 properties subsequent to June 30, 2022. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”. The decrease was further driven by a decrease in impairment charges of $8.1 million for the three months ended June 30, 2023, as compared to the same period in 2022, as no properties were deemed to be impaired during the three months ended June 30, 2023, as compared to 11 properties that were deemed to be impaired, resulting in impairment charges of $8.1 million during the three months ended June 30, 2022.

Other Income (Expense)

Other income (expense) for our Real Estate segment primarily consists of gain on disposition of real estate and condominium developments, net, loss on extinguishment of debt and other income, net. The decrease in our Real Estate segment other income (expense) of $58.1 million for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to the disposition of 33 properties for a gain of $24.3 million during the three months ended June 30, 2023, compared to the disposition of 43 properties for a gain of $81.2 million during the three months ended June 30, 2022.

Corporate Segment and Other

Revenues

Our Corporate segment revenues, which consist primarily of rental income from our condominium and rental units acquired via foreclosure, decreased $11,000 during the three months ended June 30, 2023 as compared to the same period in 2022, primarily due to the disposition of certain condominium units subsequent to June 30, 2022.

Expenses

Expenses for our Corporate segment consist primarily of general and administrative expenses, expense reimbursements to related parties, interest expense, net related to our credit facilities, and impairment on our condominium and rental units acquired via foreclosure. The decrease in Corporate segment expenses of $11.0 million during the three months ended June 30, 2023 as compared to the same period in 2022, was primarily driven by the decrease in impairment charges related to condominium units of $7.9 million during the three months ended June 30, 2023, compared to the same period in 2022. The decrease was further driven by a decrease in interest expense, net of $3.3 million during the three months ended June 30, 2023 as compared to the same period in 2022, primarily due to the pay down and termination of the CMFT Credit Facility during the six months ended June 30, 2023.

Other Income (Expense)

The increase in Corporate segment other income (expense) of $6.6 million during the three months ended June 30, 2023, as compared to the same period in 2022, was partially driven by a $2.3 million gain on real estate and condominium developments, net during the three months ended June 30, 2023 due to an increased amount of condominium units disposed of

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during the three months ended June 30, 2023 as compared to the same period in 2022. The change was further driven by the decrease in loss on extinguishment of debt of $2.2 million and an increase in other income, net of $2.0 million due to interest income generated by an increase in short-term liquid investments included in cash and cash equivalents on the condensed consolidated balance sheets during the three months ended June 30, 2023, as compared to the same period in 2022.

Net (Loss) Income Allocated to Non-Controlling Interest

The change in net (loss) income allocated to non-controlling interest of $72,000 for the three months ended June 30, 2023, as compared to the same period in 2022, was due to the disposition of two properties previously owned through a consolidated joint venture arrangement during the year ended December 31, 2022, and therefore no income allocated to non-controlling interest was recorded during the three months ended June 30, 2023.

Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Credit Segment

Revenues

The increase in our Credit segment revenues of $146.7 million for the six months ended June 30, 2023, as compared to the same period in 2022, was primarily due to increased average index rates during 2023, as well as an increase in the overall size of our investment portfolio. As of June 30, 2023, we held $4.8 billion in credit investments compared to $4.2 billion in credit investments as of June 30, 2022.

Expenses

Expenses for our Credit segment consists primarily of interest expense, management fees, increases (decreases) to our provision for credit losses, and general and administrative expenses. The increase in our Credit segment expenses of $127.7 million for the six months ended June 30, 2023, as compared to the same period in 2022, was primarily driven by increased interest expenses due to higher average index rates during 2023 and increased outstanding borrowings used to fund credit investments. As of June 30, 2023, we held $4.8 billion in credit investments compared to $4.2 billion in credit investments as of June 30, 2022. The increase was further driven by an increase in the provision for credit losses of $41.4 million, primarily driven by the $23.5 million credit loss allowance related to a CMBS position that was recognized due to a decline in the underlying collateral value during the six months ended June 30, 2023.

Other Income (Expense)

Other income (expense) for our Credit segment consists of gain on investment in unconsolidated entities, unrealized gain (loss) on equity security, along with dividend income from our equity security. The increase in our Credit segment other income (expense) of $17.1 million during the six months ended June 30, 2023, as compared to the same period in 2022, was primarily due to recognizing a $5.4 million unrealized gain on equity security during the six months ended June 30, 2023, compared to a $6.4 million unrealized loss on equity security during the six months ended June 30, 2022. The increase was further driven by $2.7 million of dividend income from our equity security during the six months ended June 30, 2023, compared to $1.4 million recognized during the same period in 2022, and a gain on the Unconsolidated Joint Venture of $5.0 million during the six months ended June 30, 2023, compared to a gain of $1.5 million recognized during the same period in 2022.

Real Estate Segment

Revenues

The decrease in our Real Estate segment revenues of $62.7 million for the six months ended June 30, 2023, as compared to the same period in 2022, was primarily due to the disposition of 207 properties subsequent to June 30, 2022. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”.

Expenses

The decrease in our Real Estate segment expenses of $54.9 million for the six months ended June 30, 2023, as compared to the same period in 2022, was primarily due to the disposition of 207 properties subsequent to June 30, 2022. Refer to “Same Store Analysis” below for a further discussion of net operating income at our “same store properties”. The decrease was further driven by a decrease in impairment charges of $6.5 million for the six months ended June 30, 2023, as compared to the same period in 2022, due to one property that was deemed to be impaired, resulting in impairment charges of $4.8 million during the six months ended June 30, 2023, as compared to 18 properties that were deemed to be impaired, resulting in impairment charges of $11.3 million during the six months ended June 30, 2022.

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Other Income (Expense)

Other income (expense) for our Real Estate segment primarily consists of gain on disposition of real estate and condominium developments, net, loss on extinguishment of debt and other income, net. The decrease in our Real Estate segment other income (expense) of $61.3 million for the six months ended June 30, 2023, as compared to the same period in 2022, was primarily due to the disposition of 185 properties for a gain of $43.8 million during the six months ended June 30, 2023, compared to the disposition of 112 properties and an outparcel of land for a gain of $110.4 million during the six months ended June 30, 2022. Other income (expense) was further reduced due to a $4.2 million decrease in the fair value of our interest rate caps during the six months ended June 30, 2023, as compared to a $1.9 million increase in the fair value of our interest rate caps during the six months ended June 30, 2022. The decrease was partially offset by an $11.8 million decrease in loss on extinguishment of debt, driven by increased termination of certain mortgage notes in connection with the disposition of the underlying properties during the six months ended June 30, 2022, as compared to the six months ended June 30, 2023.

Corporate Segment and Other

Revenues

Our Corporate segment revenues, which consist primarily of rental income from our condominium and rental units acquired via foreclosure, decreased $42,000 during the six months ended June 30, 2023, as compared to the same period in 2022, primarily due to the disposition of certain condominium units subsequent to June 30, 2022.

Expenses

Expenses for our Corporate segment consists primarily of general and administrative expenses, expense reimbursements to related parties, interest expense related to our credit facilities, and impairment on our condominium and rental units acquired via foreclosure. The decrease in Corporate segment expenses of $10.3 million during the six months ended June 30, 2023, as compared to the same period in 2022, was primarily driven by a decrease in impairment charges related to condominium units of $7.9 million. The change was further driven by a decrease in interest expense, net during the six months ended June 30, 2023 as compared to the same period in 2022.

Other Income (Expense)

The decrease in Corporate segment other income (expense) of $3.9 million during the six months ended June 30, 2023, as compared to the same period in 2022, was primarily driven by the $5.2 million net gain during the six months ended June 30, 2022 related to our investment in CIM UII Onshore, which was subsequently redeemed during 2022. The change was further driven by an $894,000 decrease in gain on disposition of real estate and condominium developments, net, during the six months ended June 30, 2023 as compared to the same period in 2022. The change was partially offset by an increase in other income, net of $2.3 million due to interest income generated by an increase in short-term liquid investments included in cash and cash equivalents on the condensed consolidated balance sheets during the six months ended June 30, 2023, as compared to the same period in 2022.

Net Income (Loss) Allocated to Non-Controlling Interest

The change in net income (loss) allocated to non-controlling interest for the six months ended June 30, 2023, as compared to the same period in 2022, was due to the Company having sold the two properties previously owned through a consolidated joint venture arrangement during the year ended December 31, 2022, and therefore no longer had a controlling financial interest in the Consolidated Joint Venture during the six months ended June 30, 2023.

Same Store Analysis

Our results of operations are influenced by the timing of acquisitions and the operating performance of our real estate assets. We review our stabilized operating results, measured by net operating income, from properties that we owned for the entirety of both the current and prior year reporting periods, referred to as “same store” properties, and we believe that the presentation of operating results for same store properties provides useful information to stockholders. Net operating income is a supplemental non-GAAP financial measure of a real estate company’s operating performance. Net operating income is considered by management to be a helpful supplemental performance measure, as it enables management to evaluate the impact of occupancy, rents, leasing activity and other controllable property operating results at our real estate properties, and it provides a consistent method for the comparison of our properties. We define net operating income as operating revenues less operating expenses, which exclude (i) depreciation and amortization, (ii) interest expense and other non-property related revenue and expense items such as (a) general and administrative expenses, (b) expense reimbursements to related parties, (c) management fees, (d) transaction-related expenses, (e) real estate impairment, (f) increase in provision for credit losses, (g) gain on disposition of real estate and condominium developments, net, (h) merger-related expenses, net and (i) interest income. Our

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calculation of net operating income may not be comparable to that of other REITs and should not be considered to be more relevant or accurate in evaluating our operating performance than the current GAAP methodology used in calculating net income. In determining the same store property pool, we include all properties that were owned for the entirety of both the current and prior reporting periods, except for properties during the current or prior year that were under development or redevelopment.

Comparison of the Three Months Ended June 30, 2023 and 2022

The following table reconciles our Real Estate segment net income, calculated in accordance with GAAP, to net operating income (dollar amounts in thousands):

	For the Three Months Ended June 30,
	2023		2022		Change
Net income	$	29,923	$	85,668	$	(55,745)
Loss on extinguishment of debt	24		2,257		(2,233)
Other income (expense), net	2,352		(1,089)		3,441
Gain on disposition of real estate and condominium developments, net	(24,285)		(81,181)		56,896
Real estate impairment	—		8,051		(8,051)
Depreciation and amortization	9,319		18,015		(8,696)
Transaction-related expenses	12		430		(418)
Management fees	2,641		5,196		(2,555)
General and administrative expenses	348		130		218
Interest expense, net	3,165		10,258		(7,093)
Net operating income	$	23,499	$	47,735	$	(24,236)

A total of 195 properties were acquired before April 1, 2022 and represent our “same store” properties during the three months ended June 30, 2023 and 2022. “Non-same store” properties, for purposes of the table below, includes properties acquired or disposed of on or after April 1, 2022.

The following table details the components of our Real Estate segment net operating income broken out between same store and non-same store properties (dollar amounts in thousands):

	Total						Same Store						Non-Same Store
	For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
	2023		2022		Change		2023		2022		Change		2023		2022		Change
Rental and other property income	$	25,590	$	53,405	$	(27,815)	$	24,292	$	24,541	$	(249)	$	1,298	$	28,864	$	(27,566)
Property operating expenses	1,201		4,155		(2,954)		971		826		145		230		3,329		(3,099)
Real estate tax expenses	890		1,515		(625)		933		977		(44)		(43)		538		(581)
Total property operating expenses	2,091		5,670		(3,579)		1,904		1,803		101		187		3,867		(3,680)
Net operating income	$	23,499	$	47,735	$	(24,236)	$	22,388	$	22,738	$	(350)	$	1,111	$	24,997	$	(23,886)

Net Operating Income

Same store property net operating income remained relatively consistent during the three months ended June 30, 2023, as compared to the same period in 2022.

Non-same store property net operating income decreased $23.9 million during the three months ended June 30, 2023, as compared to the same period in 2022. The decrease was primarily due to the disposition of 207 properties subsequent to June 30, 2022.

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Comparison of the Six Months Ended June 30, 2023 and 2022

The following table reconciles our Real Estate segment net income, calculated in accordance with GAAP, to net operating income (dollar amounts in thousands):

	For the Six Months Ended June 30,
	2023		2022		Change
Net income	$	51,663	$	120,787	$	(69,124)
Loss on extinguishment of debt	1,195		12,994		(11,799)
Other income (expense), net	4,192		(2,331)		6,523
Gain on disposition of real estate and condominium developments, net	(43,845)		(110,446)		66,601
Real estate impairment	4,814		11,342		(6,528)
Depreciation and amortization	24,429		37,156		(12,727)
Transaction-related expenses	25		437		(412)
Management fees	5,891		12,327		(6,436)
General and administrative expenses	422		279		143
Interest expense, net	11,316		25,341		(14,025)
Net operating income	$	60,102	$	107,886	$	(47,784)

A total of 195 properties were acquired before January 1, 2022 and represent our “same store” properties during the six months ended June 30, 2023 and 2022. “Non-same store” properties, for purposes of the table below, includes properties acquired or disposed of on or after January 1, 2022.

The following table details the components of our Real Estate segment net operating income broken out between same store and non-same store properties (dollar amounts in thousands):

	Total						Same Store						Non-Same Store
	For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2023		2022		Change		2023		2022		Change		2023		2022		Change
Rental and other property income	$	64,305	$	127,044	$	(62,739)	$	49,046	$	48,613	$	433	$	15,259	$	78,431	$	(63,172)
Property operating expenses	2,888		11,292		(8,404)		1,965		1,732		233		923		9,560		(8,637)
Real estate tax expenses	1,315		7,866		(6,551)		1,917		1,875		42		(602)		5,991		(6,593)
Total property operating expenses	4,203		19,158		(14,955)		3,882		3,607		275		321		15,551		(15,230)
Net operating income	$	60,102	$	107,886	$	(47,784)	$	45,164	$	45,006	$	158	$	14,938	$	62,880	$	(47,942)

Net Operating Income

Same store property net operating income remained relatively consistent during the six months ended June 30, 2023, as compared to the same period in 2022.

Non-same store property net operating income decreased $47.9 million during the six months ended June 30, 2023, as compared to the same period in 2022. The decrease was primarily due to the disposition of 207 properties subsequent to June 30, 2022.

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Distributions

Our Board declares distributions on a quarterly basis, which are paid out on a monthly basis.

Our Board authorized the following monthly distribution amounts per share, payable to stockholders as of the record date for the applicable month, during the year ended December 31, 2022 and the six months ended June 30, 2023 for the periods indicated below:

Period Commencing	Period Ending	Monthly Distribution Amount
January 2022	September 2022	$0.0305
October 2022	December 2022	$0.0339
January 2023	September 2023	$0.0350
October 2023	December 2023	$0.0367

As of June 30, 2023, we had distributions payable of $15.3 million.

The following table presents distributions and source of distributions for the periods indicated below (dollar amounts in thousands):

	Six Months Ended June 30,
	2023				2022
	Amount		Percent		Amount		Percent
Distributions paid in cash	$	69,854	76	%	$	60,834	76	%
Distributions reinvested	21,522		24	%	19,116		24	%
Total distributions	$	91,376	100	%	$	79,950	100	%
Source of distributions:
Net cash provided by operating activities (1)(2)	$	91,376	100	%	$	79,950	100	%
Total sources	$	91,376	100	%	$	79,950	100	%

____________________________________

(1)Net cash provided by operating activities for the six months ended June 30, 2023 and 2022 was $110.1 million and $61.2 million, respectively.

(2)Our distributions covered by cash flows from operating activities for the six months ended June 30, 2022 include cash flows from operating activities in excess of distributions from prior periods of $18.7 million.

Share Redemptions

Our share redemption program permits our stockholders to sell their shares of common stock back to us, subject to certain conditions and limitations. We will limit the number of shares redeemed pursuant to our share redemption program as follows: (1) we will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid; and (2) funding for the redemption of shares will be limited, among other things, to the net proceeds we receive from the sale of shares under our DRIP, net of shares redeemed to date. In an effort to accommodate redemption requests throughout the calendar year, we will generally limit quarterly redemptions to approximately 1.25% of the weighted average number of shares outstanding during the trailing 12-month period ending on the last day of the fiscal quarter for which the redemptions are being paid, and to the net proceeds we receive from the sale of shares in the respective quarter under the Secondary DRIP Offering. Any of the foregoing limits might prevent us from accommodating all redemption requests made in any fiscal quarter or in any 12-month period. We will determine whether we have sufficient funds and/or shares available as soon as practicable after the end of each fiscal quarter, but in any event prior to the applicable payment date. If we cannot purchase all shares presented for redemption in any fiscal quarter, based upon insufficient cash available from the sale of shares under our DRIP and/or the limit on the number of shares we may redeem during any quarter or year, we will give priority to the redemption of deceased stockholders’ shares and stockholders with exigent circumstances, as determined in our sole discretion and accompanied by such evidentiary documentation as we may request. While the shares of deceased stockholders and stockholders determined to have exigent circumstances will be included in calculating the maximum number of shares that may be redeemed in any annual or quarterly period, they will not be subject to the annual or quarterly percentage caps; therefore, if the volume of requests to redeem deceased stockholders’ shares and stockholders determined to have exigent circumstances in a particular quarter were large enough to cause the annual or quarterly percentage caps to be exceeded, even if no other redemption requests were processed, the redemptions of deceased stockholders’ shares and stockholders determined to have exigent circumstances would be completed in full, assuming

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sufficient proceeds from the sale of shares under our DRIP, net of shares redeemed to date, were available. If sufficient proceeds from the sale of shares under our DRIP, net of shares redeemed to date, were not available to pay all such redemptions in full, the requests to redeem deceased stockholders’ shares and shareholders determined to have exigent circumstances would be honored on a pro rata basis. We next will give priority to requests for full redemption of accounts with a balance of 250 shares or less at the time we receive the request, in order to reduce the expense of maintaining small accounts. Thereafter, we will honor the remaining redemption requests on a pro rata basis. Following such quarterly redemption period, if a stockholder would like to resubmit the unsatisfied portion of the prior request for redemption, such stockholder must submit a new request for redemption of such shares prior to the last day of the new quarter. Unfulfilled requests for redemption will not be carried over automatically to subsequent redemption periods. In addition, our management reserves the right, in its sole discretion at any time, and from time to time, to reject any request for redemption for any reason. Our Board may choose to amend the terms of, suspend or terminate our share redemption program at any time in its sole discretion if it believes that such action is in the best interest of us and our stockholders. Any material modifications or suspension of the share redemption program will be disclosed to our stockholders as promptly as practicable in our reports filed with the SEC and via our website. During the six months ended June 30, 2023, we received valid redemption requests under our share redemption program totaling approximately 51.9 million shares, of which we redeemed approximately 1.7 million shares as of June 30, 2023 for $11.1 million (at an average redemption price of $6.57 per share) and approximately 1.6 million shares subsequent to June 30, 2023 for $10.8 million (at a redemption price of $6.57 per share). The remaining redemption requests relating to 48.6 million shares went unfulfilled. A valid redemption request is one that complies with the applicable requirements and guidelines of the share redemption program then in effect. The share redemptions were funded with proceeds from the Secondary DRIP Offering.

Liquidity and Capital Resources

General

We expect to utilize proceeds from real estate dispositions, sales proceeds and principal payments received on credit investments, cash flows from operations and future proceeds from secured or unsecured financing to complete future acquisitions and loan originations, repayment of certain indebtedness and for general corporate uses. The sources of our operating cash flows will primarily be provided by interest income from our portfolio of credit investments and the rental and other property income received from current and future leased properties.

Sources of Liquidity

Our primary sources of liquidity include cash and cash equivalents and available borrowings under our debt facilities, which are set forth in the following table (in thousands):

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	416,891	$	118,978
Unused borrowing capacity (1)	1,166,771		513,121
	$	1,583,662	$	632,099

____________________________________

(1)Subject to borrowing availability.

See Note 10 — Repurchase Facilities, Notes Payable and Credit Facilities to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for additional details regarding our repurchase facilities, notes payable and credit facilities. The following table details our outstanding financing arrangements and borrowing capacity as of June 30, 2023 (in thousands):

	Portfolio Financing Outstanding Principal Balance		Maximum Capacity (1)
Notes payable – variable rate debt	$	512,572	$	557,769
ABS mortgage notes	759,165		759,165
Credit facilities	445,500		850,000
Repurchase facilities	2,289,937		3,007,011		(2)
Total portfolio financing	$	4,007,174	$	5,173,945

____________________________________

(1)Subject to borrowing availability.

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(2)Facilities under the J.P. Morgan Repurchase Facility carry no maximum facility size.

Capital Resources

Our principal demands for funds will be for the acquisition or origination of credit investments and real estate, and the payment of tenant improvements, acquisition-related expenses, operating expenses, distributions, redemptions and interest and principal on current and any future debt financings, including principal repayments of $451.5 million within the next 12 months, $307.0 million of which has a rolling term that resets monthly, as further discussed in Note 10 — Repurchase Facilities, Notes Payable and Credit Facilities to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q.

Generally, we expect to meet our liquidity requirements through net cash provided by operations, cash proceeds from real estate asset dispositions, cash proceeds from the sale of credit investments, principal payments received on credit investments, and proceeds from the Secondary DRIP Offering, as well as secured or unsecured borrowings from banks and other lenders to finance our future acquisitions and loan originations. We expect that substantially all net cash flows from operations will be used to pay distributions to our stockholders after certain capital expenditures, including tenant improvements and leasing commissions, are paid; however, we have used, and may continue to use, other sources to fund distributions, as necessary, including borrowings on our unencumbered assets. To the extent that cash flows from operations are lower, distributions paid to our stockholders may be lower. Operating cash flows are expected to increase as we complete future acquisitions. We expect that substantially all net cash flows from the Secondary DRIP Offering or debt financings will be used to fund acquisitions, loan originations, certain capital expenditures, repayments of outstanding debt or distributions and redemptions to our stockholders. We believe that the resources stated above will be sufficient to satisfy our operating requirements for the foreseeable future, and we do not anticipate a need to raise funds from sources other than those described above within the next 12 months. Management intends to use the proceeds from the disposition of properties to, among other things, acquire additional high-quality net-lease properties and credit investments in furtherance of our investment objectives and for other general corporate purposes.

Contractual Obligations

As of June 30, 2023, we had debt outstanding with a carrying value of $4.0 billion and a weighted average interest rate of 6.2%. See Note 10 — Repurchase Facilities, Notes Payable and Credit Facilities to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for certain terms of our debt outstanding.

Our contractual obligations as of June 30, 2023 were as follows (in thousands):

	Payments due by period (1)
	Total		Less Than 1 Year		1-3 Years		3-5 Years		More Than 5 Years
Principal payments — variable rate debt	$	512,572	$	—	$	91,803	$	420,769	$	—
Principal payments — ABS mortgage notes	759,165		645		—		—		758,520
Principal payments — credit facilities	445,500		—		—		445,500		—
Principal payments — repurchase facilities	2,289,937		450,873		1,839,064		—		—
Interest payments (2)	673,805		222,464		296,738		112,716		41,887
Total	$	4,680,979	$	673,982	$	2,227,605	$	978,985	$	800,407

____________________________________

(1)The table does not include amounts due to CMFT Management or its affiliates pursuant to our Management Agreement because such amounts are not fixed and determinable. The table also does not include $298.6 million of unfunded commitments related to our existing CRE loans held-for-investment, corporate senior loans held-for-investment and liquid corporate senior loans and $113.0 million of unfunded commitments related to the NewPoint JV, which are subject to the satisfaction of borrower milestones. In addition, the table does not include $18.4 million of unsettled liquid corporate senior loan acquisitions, which is included in cash and cash equivalents on the accompanying condensed consolidated balance sheet.

(2)Interest payments on the variable rate debt, credit facilities and repurchase facilities have been calculated based on outstanding balances as of June 30, 2023 through their respective maturity dates. This is only an estimate as actual amounts borrowed and interest rates could vary over time.

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We expect to incur additional borrowings in the future to acquire additional properties and credit investments. There is no limitation on the amount we may borrow against any single improved property. As of June 30, 2023, our ratio of debt to total gross assets net of gross intangible lease liabilities was 64.3%.

Cash Flow Analysis

Operating Activities. Net cash provided by operating activities increased by $48.8 million for the six months ended June 30, 2023, as compared to the same period in 2022. The increase was primarily due to net increases in credit investments of $627.2 million coupled with an increase in interest rates driving higher interest income, partially offset by the disposition of 207 properties subsequent to June 30, 2022. See “— Results of Operations” for a more complete discussion of the factors impacting our operating performance.

Investing Activities. For the six months ended June 30, 2023, net cash provided by investing activities was $715.2 million, as compared to net cash used in investing activities of $261.9 million in the same period in 2022. The change was primarily due to a decrease in the net investment in loans held-for-investment of $1.1 billion and a decrease in the net investment in real estate-related securities of $168.3 million, partially offset by a decrease in proceeds from disposition of real estate assets of $279.3 million and a decrease in net proceeds in relation to our investment in unconsolidated entities of $18.6 million.

Financing Activities. For the six months ended June 30, 2023, net cash used in financing activities was $533.2 million, as compared to net cash provided by financing activities of $290.9 million in the same period in 2022. The change was primarily due to an increase in net repayments on the repurchase facilities, notes payable and credit facilities of $818.2 million, coupled with an increase in distributions to stockholders of $9.0 million.

Election as a REIT

We elected to be taxed, and operate our business to qualify, as a REIT for federal income tax purposes commencing with our taxable year ended December 31, 2012. To maintain our qualification as a REIT, we must continue to meet certain requirements relating to our organization, sources of income, nature of assets, distributions of income to our stockholders and recordkeeping. As a REIT, we generally are not subject to federal income tax on taxable income that we distribute to our stockholders so long as we distribute at least 90% of our annual taxable income (computed without regard to the dividends paid deduction and excluding net capital gains).

If we fail to maintain our qualification as a REIT for any reason in a taxable year and applicable relief provisions do not apply, we will be subject to tax on our taxable income at regular corporate rates. We will not be able to deduct distributions paid to our stockholders in any year in which we fail to maintain our qualification as a REIT. We also will be disqualified for the four taxable years following the year during which qualification was lost, unless we are entitled to relief under specific statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we are organized and operate in such a manner as to maintain our qualification as a REIT for federal income tax purposes. No provision for federal income taxes has been made in our accompanying condensed consolidated financial statements. We are subject to certain state and local taxes related to the operations of properties in certain locations, which have been provided for in our accompanying condensed consolidated financial statements.

Critical Accounting Policies and Significant Accounting Estimates

Our accounting policies have been established to conform with GAAP. The preparation of financial statements in conformity with GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that we have made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these estimates and assumptions. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses. We believe the following critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements, which should be read in conjunction with the more complete discussion of our accounting policies and procedures included in Note 2 — Summary of Significant Accounting Policies to our audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2022. We consider our critical accounting policies to be the following:

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•Recoverability of Real Estate Assets;

•Allocation of Purchase Price of Real Estate Assets; and

•Current Expected Credit Losses.

A complete description of such policies and our considerations is contained in our Annual Report on Form 10-K for the year ended December 31, 2022. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2022 and related notes thereto.

Related-Party Transactions and Agreements

We have entered into agreements with CMFT Management and our Investment Advisor whereby we agree to pay certain fees to, or reimburse certain expenses of, CMFT Management, the Investment Advisor or their affiliates. In addition, we have invested in, and may continue to invest in, certain co-investments with funds that are advised by an affiliate of CMFT Management. We may also originate loans to third parties that use the proceeds to finance the acquisition of real estate from funds that are advised by an affiliate of CMFT Management. See Note 12 — Related-Party Transactions and Arrangements to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for a discussion of the various related-party transactions, agreements and fees.

Conflicts of Interest

Richard S. Ressler, the chairman of our Board, chief executive officer and president, who is also a founder and principal of CIM Group and is an officer/director of certain of its affiliates, is the vice president of our manager. One of our directors, Avraham Shemesh, who is also a founder and principal of CIM Group and is an officer/director of certain of its affiliates, is the president and treasurer of our manager. Additionally, two of our directors, Jason Schreiber and Emily Vande Krol, are employees of CIM Group. Nathan D. DeBacker, our chief financial officer, principal accounting officer and treasurer, is a vice president of our manager and is an officer of certain of its affiliates. As such, there may be conflicts of interest where CMFT Management or its affiliates, while serving in the capacity as sponsor, general partner, officer, director, key personnel and/or advisor for CIM Group or another program sponsored or operated by affiliates of our manager, may be in conflict with us in connection with providing services to other real estate-related programs related to property acquisitions, property dispositions, and property management, among others. The compensation arrangements between affiliates of CMFT Management and these other real estate programs sponsored or operated by affiliates of our manager could influence the advice provided to us. See Part I, Item 1. Business — Conflicts of Interest in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 3.Quantitative and Qualitative Disclosures About Market Risk

Market Risk

The market risk associated with financial instruments and derivative financial instruments is the risk of loss from adverse changes in market prices or interest rates. Our market risk arises primarily from interest rate risk relating to variable rate borrowings. To meet our short and long-term liquidity requirements, we borrow funds at a combination of fixed and variable rates. Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to manage our overall borrowing costs. To achieve these objectives, from time to time, we may enter into interest rate hedge contracts such as swaps, collars and treasury lock agreements in order to mitigate our interest rate risk with respect to various debt instruments. We do not intend to hold or issue these derivative contracts for trading or speculative purposes. We do not have any foreign operations and thus we are not exposed to foreign currency fluctuations.

Interest Rate Risk

Interest rates are highly sensitive to many factors, including fiscal and monetary policies and domestic and international economic and political considerations, as well as other factors beyond our control. We are subject to interest rate risk in connection with our investments and the related financing obligations. In general, we seek to match the interest rate characteristics of our investments with the interest rate characteristics of any related financing obligations such as repurchase agreements, bank credit facilities, term loans, revolving facilities and securitizations.

As of June 30, 2023, we had an aggregate of $3.2 billion of variable rate debt, excluding any debt subject to interest rate swap agreements and interest rate cap agreements, and therefore, we are exposed to interest rate changes in LIBOR and SOFR. As of June 30, 2023, an increase or decrease of 50 basis points in interest rates would result in an increase or decrease in interest expense of $16.2 million per year.

As of June 30, 2023, we had two interest rate cap agreements outstanding, which had maturity dates ranging from July 2023 through October 2023, with an aggregate notional amount of $712.0 million and an aggregate fair value of the net

59

derivative asset of $641,000. The fair value of these interest rate cap agreements is dependent upon existing market interest rates and spreads. As of June 30, 2023, an increase of 50 basis points in interest rates would result in a change of $78,000 to the fair value of the net derivative asset, resulting in a net derivative asset of $719,000. A decrease of 50 basis points in interest rates would result in a $76,000 change to the fair value of the net derivative asset, resulting in a net derivative asset of $565,000.

As the information presented above includes only those exposures that existed as of June 30, 2023, it does not consider exposures or positions arising after that date. The information presented herein has limited predictive value. Future actual realized gains or losses with respect to interest rate fluctuations will depend on cumulative exposures, hedging strategies employed and the magnitude of the fluctuations.

These amounts were determined by considering the impact of hypothetical interest rate changes on our borrowing costs and assume no other changes in our capital structure.

In July 2017, the Financial Conduct Authority (“FCA”) that regulates LIBOR announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. As a result, the Federal Reserve Board and the Federal Reserve Bank of New York organized the Alternative Reference Rates Committee which identified SOFR as its preferred alternative to U.S. dollar LIBOR in derivatives and other financial contracts. Any changes adopted by FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If that were to occur, our interest payments could change. In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.

If a contract is not transitioned to an alternative rate and LIBOR is discontinued, the impact on our contracts is likely to vary by contract. If LIBOR is discontinued or if the methods of calculating LIBOR change from their current form, interest rates on our current or future indebtedness may be adversely affected.

Alternative rates and other market changes related to the replacement of LIBOR, including the introduction of financial products and changes in market practices, may lead to risk modeling and valuation challenges, such as adjusting interest rate accrual calculations and building a term structure for an alternative rate.

The introduction of an alternative rate also may create additional basis risk and increased volatility as alternative rates are phased in and utilized in parallel with LIBOR.

As of June 30, 2023, we had an interest rate cap agreement that was indexed to LIBOR. Subsequent to June 30, 2023, the interest rate cap agreement matured. Additionally, subsequent to June 30, 2023, all outstanding variable rate debt indexed to LIBOR was transitioned to SOFR.

Credit Risk

Concentrations of credit risk arise when a number of tenants are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations, including those to us, to be similarly affected by changes in economic conditions. We are subject to tenant, geographic and industry concentrations. Any downturn of the economic conditions in one or more of these tenants, states or industries could result in a material reduction of our cash flows or material losses to us.

The factors considered in determining the credit risk of our tenants include, but are not limited to: payment history; credit status and change in status, including the impact of the COVID-19 pandemic (credit ratings for public companies are used as a primary metric); change in tenant space needs (i.e., expansion/downsize); tenant financial performance; economic conditions in a specific geographic region; and industry specific credit considerations. We believe that the credit risk of our portfolio is reduced by the high quality of our existing tenant base, reviews of prospective tenants’ risk profiles prior to lease execution and consistent monitoring of our portfolio to identify potential problem tenants and mitigation options.

Our loans and investments are also subject to credit risk. The performance and value of our loans and investments depend upon the owners’ ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay interest and principal due to us. To monitor this risk, our manager reviews our investment portfolios and in certain instances is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as necessary.

60

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, we recognize that no controls and procedures, no matter how well designed and operated, can provide absolute assurance of achieving the desired control objectives.

As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation as of June 30, 2023 was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures, as of June 30, 2023, were effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1.Legal Proceedings

In the ordinary course of business, we may become subject to litigation or claims. We are not aware of any material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we or our subsidiaries are a party or to which our properties are the subject.

Item 1A.Risk Factors

There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Our share redemption program permits our stockholders to sell their shares of common stock back to us, subject to certain conditions and limitations. We will limit the number of shares redeemed pursuant to our share redemption program as follows: (1) we will not redeem in excess of 5% of the weighted average number of shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which the redemptions are being paid; and (2) funding for the redemption of shares will be limited, among other things, to the net proceeds we receive from the sale of shares under our DRIP, net of shares redeemed to date. In an effort to accommodate redemption requests throughout the calendar year, we will generally limit quarterly redemptions to approximately 1.25% of the weighted average number of shares outstanding during the trailing 12-month period ending on the last day of the fiscal quarter for which the redemptions are being paid, and to the net proceeds we receive from the sale of shares in the respective quarter under the Secondary DRIP Offering. Any of the foregoing limits might prevent us from accommodating all redemption requests made in any fiscal quarter or in any 12-month period. As of June 30, 2023, the estimated per share NAV was $6.57, which was determined by the Board on December 19, 2022 using a valuation date of September 30, 2022.

In general, we redeem shares on a quarterly basis. Shares are redeemed with a trade date no later than the end of the month following the end of each fiscal quarter. Any redemption capacity that is not used as a result of the withdrawal or rejection of redemption requests may be used to satisfy the redemption requests of other stockholders received for that fiscal quarter, and such redemption payments may be made at a later time than when that quarter’s redemption payments are made. During the three months ended June 30, 2023, we redeemed shares, including those redeemable due to death, as follows:

Period (1)	Total Number of Shares Redeemed	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2023 - April 30, 2023	—	$	—	—	(2)
May 1, 2023 - May 31, 2023	1,651,210	$	6.57	1,651,210	(2)
June 1, 2023 - June 30, 2023	34,228	$	6.57	34,228	(2)
Total	1,685,438			1,685,438	(2)

____________________________________

(1)Redemptions are included in the month of payment, which is made one business day following the trade date.

(2)A description of the maximum number of shares that may be purchased under our share redemption program is included in the narrative preceding this table.

Unregistered Sales of Equity Securities

None.

Item 3.Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

None.

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Item 6.Exhibits

The following exhibits are included, or incorporated by reference, in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023 (and are numbered in accordance with Item 601 of Regulation S-K).

		Incorporated by Reference
Exhibit  No.	Description	Form	File No.	Exhibit	Filing Date
3.1	Articles of Amendment and Restatement of CIM Real Estate Finance Trust, Inc.	8-K	000-54939	3.1	8/20/2019
3.2	Second Amended and Restated Bylaws of CIM Real Estate Finance Trust, Inc.	10-K	000-54939	3.2	3/28/2023
4.1	Second Amended and Restated Distribution Reinvestment Plan.	8-K	000-54939	4.1	5/1/2020
4.2	Master Indenture, dated as of July 28, 2021, by and among CMFT Net Lease Master Issuer, LLC, as issuer, and Citibank N.A., as indenture trustee.	8-K	000-54939	4.1	8/3/2021
4.3	Series 2021-1 Indenture Supplement, dated as of July 28, 2021, by and among CMFT Net Lease Master Issuer, LLC, as issuer, and Citibank N.A., as indenture trustee.	8-K	000-54939	4.2	8/3/2021
31.1*	Certifications of the Principal Executive Officer of the Company pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certifications of the Principal Financial Officer of the Company pursuant to Exchange Act Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Certifications of the Principal Executive Officer and Principal Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document.
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.
104*	Cover Page Interactive Data File (formatted as InLine XBRL and contained in Exhibit 101).

*

Filed herewith.

**

In accordance with Item 601(b)(32) of Regulation S-K, this Exhibit is not deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

63

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CIM Real Estate Finance Trust, Inc. (Registrant)
By:		/s/ Nathan D. DeBacker
Name:		Nathan D. DeBacker
Title:		Chief Financial Officer, Principal Accounting Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)

Date: August 11, 2023

64

EX-31.1

Exhibit 31.1

CERTIFICATIONS OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard S. Ressler, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of CIM Real Estate Finance Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 11, 2023	/s/ RICHARD S. RESSLER
		Name:	Richard S. Ressler
		Title:	Chief Executive Officer, President and Chairman of the Board of Directors (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Nathan D. DeBacker, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of CIM Real Estate Finance Trust, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 11, 2023	/s/ NATHAN D. DEBACKER
		Name:	Nathan D. DeBacker
		Title:	Chief Financial Officer, Principal Accounting Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. § 1350)

Each of the undersigned officers of CIM Real Estate Finance Trust, Inc. (the “Company”) hereby certifies, for purposes of Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge:

(i)the accompanying Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2023 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended, and

(ii)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

		/s/ Richard S. Ressler
		Name:	Richard S. Ressler
		Title:	Chief Executive Officer, President and Chairman of the Board of Directors (Principal Executive Officer)
		/s/ Nathan D. DeBacker
		Name:	Nathan D. DeBacker
Date:	August 11, 2023	Title:	Chief Financial Officer, Principal Accounting Officer and Treasurer (Principal Financial Officer and Principal Accounting Officer)

The foregoing certification is being furnished with the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2023 pursuant to 18 U.S.C. § 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except to the extent the Company specifically incorporates this certification by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover - shares shares in Millions	6 Months Ended
	Jun. 30, 2023	Aug. 04, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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		436.8
Entity Central Index Key	0001498547
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Real estate assets:
Land	$ 325,628	$ 578,970
Buildings, fixtures and improvements	841,746	1,462,726
Intangible lease assets	159,202	276,684
Condominium developments	111,981	130,494
Total real estate assets, at cost	1,438,557	2,448,874
Less: accumulated depreciation and amortization	(157,122)	(270,946)
Total real estate assets, net	1,281,435	2,177,928
Investment in unconsolidated entities	101,223	100,604
Real estate-related securities, at fair value, net of credit loss allowances of $23,452 and $0 as of June 30, 2023 and December 31, 2022, respectively	647,327	576,391
Loans held-for-investment and related receivables, net	4,165,521	4,043,898
Less: Current expected credit losses	(67,562)	(42,344)
Total loans held-for-investment and related receivables, net	4,097,959	4,001,554
Cash and cash equivalents	416,891	118,978
Restricted cash	51,772	57,616
Rents and tenant receivables, net	16,481	33,968
Prepaid expenses, derivative assets and other assets	9,322	26,243
Deferred costs, net	15,335	16,429
Accrued interest receivable	26,861	22,343
Total assets	6,664,606	7,132,054
LIABILITIES AND STOCKHOLDERS’ EQUITY
Repurchase facilities, notes payable and credit facilities, net	3,989,898	4,422,833
Accrued expenses and accounts payable	23,375	25,666
Intangible lease liabilities, net	13,956	19,054
Distributions payable	15,308	14,828
Deferred rental income and other liabilities	5,428	7,274
Total liabilities	4,062,263	4,505,741
Commitments and contingencies (Note 11)
Redeemable common stock	170,136	170,238
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, 437,381,972 and 437,397,414 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	4,374	4,373
Capital in excess of par value	3,529,765	3,529,523
Accumulated distributions in excess of earnings	(1,035,084)	(1,029,287)
Accumulated other comprehensive loss	(66,848)	(48,526)
Total stockholders’ equity	2,432,207	2,456,083
Non-controlling interests	0	(8)
Total equity	2,432,207	2,456,075
Total liabilities, redeemable common stock, non-controlling interests and stockholders’ equity	6,664,606	7,132,054
Affiliate
LIABILITIES AND STOCKHOLDERS’ EQUITY
Due to affiliates	$ 14,298	$ 16,086

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Fair value of CMBS	$ 23,452	$ 0
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	490,000,000	490,000,000
Common stock, shares issued (in shares)	437,381,972	437,397,414
Common stock, shares outstanding (in shares)	437,381,972	437,397,414

XML

Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues:
Rental and other property income	$ 25,682	$ 53,508	$ 64,463	$ 127,244
Interest income	115,038	44,984	223,121	76,447
Total revenues	140,720	98,492	287,584	203,691
Expenses:
General and administrative	4,921	3,680	8,219	7,155
Interest expense, net	59,548	32,668	125,782	62,664
Property operating	3,007	5,249	5,583	12,976
Real estate tax	1,231	2,024	2,048	8,737
Expense reimbursements to related parties	3,681	3,777	7,249	7,471
Management fees	12,859	13,351	25,438	26,698
Transaction-related	63	446	76	453
Depreciation and amortization	9,319	18,015	24,429	37,156
Real estate impairment	0	15,996	4,814	19,287
Increase in provision for credit losses	49,637	4,942	51,090	9,651
Total expenses	144,266	100,148	254,728	192,248
Other income (expense):
Gain on disposition of real estate and condominium developments, net	26,563	81,107	46,186	113,681
Gain on investment in unconsolidated entities	5,806	1,323	5,036	6,663
Unrealized gain (loss) on equity security	3,096	(4,064)	5,354	(6,410)
Other income, net	850	2,272	1,174	3,577
Loss on extinguishment of debt	(894)	(5,369)	(4,539)	(16,240)
Total other income	35,421	75,269	53,211	101,271
Net income	31,875	73,613	86,067	112,714
Net (loss) income allocated to noncontrolling interest	0	(72)	8	(63)
Net income attributable to the Company	$ 31,875	$ 73,685	$ 86,059	$ 112,777
Weighted average number of common shares outstanding:
Basic (in shares)	437,401,621	437,346,523	437,417,648	437,360,190
Diluted (in shares)	437,401,621	437,346,523	437,417,648	437,360,190
Net income per common share:
Basic (in usd per share)	$ 0.07	$ 0.17	$ 0.20	$ 0.26
Diluted (in usd per share)	$ 0.07	$ 0.17	$ 0.20	$ 0.26

XML

Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 31,875	$ 73,613	$ 86,067	$ 112,714
Other comprehensive income (loss)
Unrealized loss on real estate-related securities	(5,606)	(10,909)	(31,916)	(15,787)
Amount of loss reclassified from other comprehensive loss into income as an increase in provision for credit losses	13,594	0	13,594	0
Unrealized gain on interest rate swaps	0	795	0	2,283
Amount of loss reclassified from other comprehensive loss into income as interest expense, net	0	69	0	62
Total other comprehensive income (loss)	7,988	(10,045)	(18,322)	(13,442)
Comprehensive income	39,863	63,568	67,745	99,272
Comprehensive (loss) income attributable to noncontrolling interest	0	(72)	8	(63)
Comprehensive income attributable to the Company	$ 39,863	$ 63,640	$ 67,737	$ 99,335

XML

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 (in shares) at Dec. 31, 2021			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 (in 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 (in 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 (in 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 (in shares) at Dec. 31, 2021			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]
Comprehensive income (loss)	99,272
Ending balance (in shares) at Jun. 30, 2022			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 (in 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 (in 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 (in 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 (in shares) at Jun. 30, 2022			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 (in shares) at Dec. 31, 2022	437,397,414		437,397,414
Beginning balance at Dec. 31, 2022	$ 2,456,075	2,456,083	$ 4,373	3,529,523	(1,029,287)	(48,526)	(8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			1,637,923
Issuance of common stock	10,763	10,763	$ 17	10,746
Equity-based compensation	120	120		120
Distributions declared on common stock	(45,929)	(45,929)			(45,929)
Redemptions of common stock (in shares)			(1,605,529)
Redemptions of common stock	(10,548)	(10,548)	$ (16)	(10,532)
Changes in redeemable common stock	(213)	(213)		(213)
Comprehensive income (loss)	27,882	27,874			54,184	(26,310)	8
Ending balance (in shares) at Mar. 31, 2023			437,429,808
Ending balance at Mar. 31, 2023	$ 2,438,150	2,438,150	$ 4,374	3,529,644	(1,021,032)	(74,836)	0
Beginning balance (in shares) at Dec. 31, 2022	437,397,414		437,397,414
Beginning balance at Dec. 31, 2022	$ 2,456,075	2,456,083	$ 4,373	3,529,523	(1,029,287)	(48,526)	(8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income (loss)	$ 67,745
Ending balance (in shares) at Jun. 30, 2023	437,381,972		437,381,972
Ending balance at Jun. 30, 2023	$ 2,432,207	2,432,207	$ 4,374	3,529,765	(1,035,084)	(66,848)	0
Beginning balance (in shares) at Mar. 31, 2023			437,429,808
Beginning balance at Mar. 31, 2023	2,438,150	2,438,150	$ 4,374	3,529,644	(1,021,032)	(74,836)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)			1,637,602
Issuance of common stock	10,759	10,759	$ 16	10,743
Equity-based compensation	120	120		120
Distributions declared on common stock	(45,927)	(45,927)			(45,927)
Redemptions of common stock (in shares)			(1,685,438)
Redemptions of common stock	(11,073)	(11,073)	$ (16)	(11,057)
Changes in redeemable common stock	315	315		315
Comprehensive income (loss)	$ 39,863	39,863			31,875	7,988
Ending balance (in shares) at Jun. 30, 2023	437,381,972		437,381,972
Ending balance at Jun. 30, 2023	$ 2,432,207	$ 2,432,207	$ 4,374	$ 3,529,765	$ (1,035,084)	$ (66,848)	$ 0

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Condensed Consolidated Statements Of Stockholders’ Equity (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
Statement of Stockholders' Equity [Abstract]
Distributions declared on common stock (in USD per share)	$ 0.11	$ 0.11	$ 0.09	$ 0.09

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Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 86,067	$ 112,714
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, net	24,376	37,174
Amortization of deferred financing costs	5,235	6,144
Amortization and accretion on deferred loan fees	(5,977)	(4,937)
Amortization of premiums and discounts on credit investments	(18,717)	(1,585)
Capitalized interest income on real estate-related securities and loans held-for-investment	(571)	(608)
Equity-based compensation	240	157
Straight-line rental income	(1,435)	(3,191)
Write-offs for uncollectible lease-related receivables	578	(695)
Gain on disposition of real estate assets and condominium developments, net	(46,186)	(113,681)
Loss on sale of credit investments, net	690	170
Gain on investment in unconsolidated entities	(5,036)	(6,663)
Gain on sale of marketable security	0	(22)
Unrealized (gain) loss on equity security	(5,354)	6,431
Amortization of fair value adjustment and gain on interest rate swaps	0	140
Loss (gain) on interest rate caps	4,399	(1,851)
Impairment of real estate assets	4,814	19,287
Increase in provision for credit losses	51,090	9,651
Write-off of deferred financing costs	3,564	7,836
Return on investment in unconsolidated entities	5,036	2,022
Changes in assets and liabilities:
Rents and tenant receivables, net	6,141	67,285
Prepaid expenses and other assets	12,522	(51,398)
Accrued interest receivable	(4,518)	(7,404)
Accrued expenses and accounts payable	(3,272)	(3,440)
Deferred rental income and other liabilities	(1,846)	(12,125)
Due to affiliates	(1,788)	(180)
Net cash provided by operating activities	110,052	61,231
Cash flows from investing activities:
Investment in unconsolidated entities	(5,420)	(43,250)
Return of investment in unconsolidated entities	4,801	614
Investment in real estate-related securities	(143,157)	(259,198)
Investment in liquid corporate senior loans	(80,553)	(110,369)
Investment in real estate assets and capital expenditures	(5,639)	(14,426)
Investment in corporate senior loans	(80,977)	(55,251)
Investment in first mortgage loans	(135,398)	(1,223,605)
Origination and exit fees received on loans held-for-investment	0	13,365
Principal payments received on loans held-for-investment	156,601	127,101
Principal payments received on real estate-related securities	53,591	1,250
Net proceeds from sale of real estate-related securities	0	132
Net proceeds from disposition of real estate assets and condominium developments	925,848	1,205,183
Net proceeds from sale of liquid corporate senior loans	25,490	35,290
Redemption of investment in unconsolidated entities	0	60,663
Proceeds from the settlement of insurance claims	0	619
Net cash provided by (used in) investing activities	715,187	(261,882)
Cash flows from financing activities:
Redemptions of common stock	(21,621)	(19,733)
Distributions to stockholders	(69,854)	(60,834)
Proceeds from borrowings	241,610	1,615,858
Repayments of borrowings, and prepayment penalties	(679,322)	(1,235,322)
Termination of interest rate swaps	0	(101)
Distributions to non-controlling interests	0	(30)
Deferred financing costs paid	(3,983)	(8,921)
Net cash (used in) provided by financing activities	(533,170)	290,917
Net increase in cash and cash equivalents and restricted cash	292,069	90,266
Cash and cash equivalents and restricted cash, beginning of period	176,594	144,173
Cash and cash equivalents and restricted cash, end of period	468,663	234,439
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	416,891	173,417
Restricted cash	51,772	61,022
Total cash and cash equivalents and restricted cash	468,663	234,439
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Distributions declared and unpaid	15,308	13,338
Accrued capital expenditures	54	561
Construction reserve allocation	(190)	0
Accrued deferred financing costs	167	596
Mortgage notes payable assumed by buyer in connection with disposition of real estate assets	0	(313,712)
Common stock issued through distribution reinvestment plan	21,522	19,116
Change in fair value of derivative instruments	0	2,205
Change in fair value of real estate-related securities	(18,322)	(15,787)
Conversion of preferred units to loans held-for-investment	0	68,242
Supplemental Cash Flow Disclosures:
Interest paid	122,068	61,802
Cash paid for taxes	$ 911	$ 1,018

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ORGANIZATION AND BUSINESS

6 Months Ended

Jun. 30, 2023

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 seeks to attain attractive risk-adjusted returns and create long term value for its investors by investing in a diversified portfolio of senior secured mortgage loans, creditworthy long-term net-leased property investments and other senior loan and liquid credit investments. As of June 30, 2023, the Company’s loan portfolio consisted of 357 loans with a net book value of $4.1 billion, and investments in real estate-related securities of $647.3 million. As of June 30, 2023, the Company owned 195 properties, comprising approximately 6.3 million rentable square feet of commercial space located in 37 states. As of June 30, 2023, the rentable square feet at these properties was 99.8% leased, including month-to-month agreements, if any. As of June 30, 2023, the Company owned condominium developments with a net book value of $112.0 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 Group”). CIM Group is a community-focused real estate and infrastructure owner, operator, lender and developer. CIM Group is headquartered in Los Angeles, CA, with offices in Atlanta, GA, Chicago, IL, Dallas, TX, New York, NY, Orlando, FL, Phoenix, AZ and Tokyo, Japan. CIM Group also maintains additional offices across the United States, as well as in Korea, Hong Kong and the United Kingdom to support its platform.

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. Collectively, CMFT Management, the Company’s manager, and the Investment Advisor, together with certain other affiliates of CIM Group, serve as the Company’s sponsor, which is referred to as the Company’s “sponsor” or “CIM”.

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 “Initial Offering”). The Company ceased issuing shares in the Initial Offering on April 4, 2014. At the completion of the Initial 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 Initial Offering and approximately 5.1 million shares of common stock issued pursuant to the distribution reinvestment plan (“DRIP”) portion of the Initial Offering. The remaining approximately 404,000 unsold shares from the Initial 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 Initial 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 continues 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 Initial

Offering in meeting their customer account reporting obligations under Financial Industry Regulatory Authority Rule 2231. Distributions are reinvested in shares of the Company’s common stock for participants in the DRIP at the estimated per share NAV as determined by the Board. Additionally, the estimated per share NAV as determined by the Board serves as the per share NAV for purposes of the share redemption program. As of June 30, 2023, the estimated per share NAV of the Company’s common stock was $6.57, which was established by the Board on December 19, 2022 using a valuation date of September 30, 2022. Commencing on December 21, 2022, $6.57 served as the per share NAV, including for shares issued pursuant to the DRIP. The Company’s estimated per share NAVs are not audited or reviewed by its independent registered public accounting firm.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2023

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, 2022, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

In determining whether the Company has controlling interests in an entity and is required 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 the entities 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.

Reclassifications

Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. The Company has chosen to break out the details of $32.7 million and $62.7 million of interest expense, net from other income, net into expenses in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively, driven by the Company’s current investment portfolio composition being predominantly comprised of credit investments. This reclassification of interest expense, net did not have an impact on net income or cash flow from operating activities. In addition, the Company has chosen to break out the details of $4.1 million and $6.4 million of unrealized loss on equity security from other income, net in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively. The Company has also chosen to break out the details of $11.9 million of accrued interest receivable from prepaid expenses, derivative assets and other assets in the Company’s condensed consolidated balance sheet as of June 30, 2022, which resulted in a corresponding breakout of $7.4 million from prepaid expenses, derivative assets and other assets to accrued interest receivable in the Company’s condensed consolidated statement of cash flows for the six months ended June 30, 2022. The reclassifications had no effect on previously reported totals or subtotals.

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; significant increases to budgeted costs for units under development; and a reduction in prevailing market values for assets being considered for disposition. 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, 2023, as part of the Company’s quarterly impairment review procedures, the Company recorded impairment charges of $4.8 million related to one property, due to the sales price being less than its respective carrying value. The Company’s impairment assessment as of June 30, 2023 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. During the six months ended June 30, 2022, 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 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, 2023, the Company did not identify any real estate assets as held for sale.

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. Given the Company’s current asset portfolio and strategy, the Company’s dispositions during the six months ended June 30, 2023 and 2022 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, 2023.

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.

Investment in Unconsolidated Entities

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 approximately 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 approximately 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 of $5.8 million and $5.0 million, respectively, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2023, respectively, in the condensed consolidated statements of operations. The Company recorded a gain of $1.3 million and $1.5 million, respectively, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2022. During the six

months ended June 30, 2023, the Company contributed an additional $5.4 million in NP JV Holdings and received $5.8 million as a return of capital that can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date. As of June 30, 2023 and December 31, 2022, the Company’s aggregate investment in NP JV Holdings of $101.2 million and $100.6 million, respectively, is included in investment in unconsolidated entities on the condensed consolidated balance sheets. For more information, refer to Note 6 — Investment 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”). 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 consolidated balance sheet and such share is recognized as a profit or loss on the consolidated statements of operations. During the six months ended June 30, 2022, the Company recorded its share of CIM UII Onshore’s gain totaling $5.2 million. 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.

Restricted Cash

The Company had $51.8 million and $57.6 million in restricted cash as of June 30, 2023 and December 31, 2022, respectively. Included in restricted cash was $7.4 million and $15.4 million held by lenders in lockbox accounts, as of June 30, 2023 and December 31, 2022, 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 $24.8 million and $22.6 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, 2023 and December 31, 2022, respectively. In addition, the Company had a $19.6 million deposit held as cash collateral included in restricted cash as of June 30, 2023 and December 31, 2022 to be applied by Barclays Bank PLC (“Barclays”) as repayment of certain eligible assets transferred under the master repurchase agreement with Barclays.

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, 2023, 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 income (loss). During the six months ended June 30, 2023, the Company invested $143.2 million in CMBS. As of June 30, 2023, the Company had investments in 24 CMBS with an estimated aggregate fair value of $603.7 million.

In addition, the Company had an investment in an equity security with an estimated aggregate fair value of $43.6 million as of June 30, 2023, which is comprised of RTL Common Stock received as consideration in connection with the RTL Purchase and Sale Agreement (both of which are defined in Note 4 — Real Estate Assets). This investment is carried at its estimated fair value with unrealized gains and losses reported on the condensed consolidated statements of operations. During the three and six months ended June 30, 2023, the Company recorded $1.4 million and $2.7 million, respectively, of dividend income on RTL Common Stock. During the three and six months ended June 30, 2022, the Company recorded $1.4 million of dividend income on RTL Common Stock. Dividend income is included in other income, net on the condensed consolidated statements of operations. The Company also recorded $3.1 million and $5.4 million of unrealized gain on RTL Common Stock during the three and six months ended June 30, 2023, respectively, and recorded $4.1 million and $6.4 million of unrealized loss on RTL Common Stock during the three and six months ended June 30, 2022, respectively, all of which is included in unrealized gain (loss) on equity security in 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, such as market conditions. Such losses that are credit related are recorded as a current expected credit loss in increase in provision to credit losses on the Company’s condensed consolidated statements of operations. Subsequent

cumulative adverse changes in expected cash flows on the Company’s available-for-sale securities are recognized as an increase to current expected credit losses. However, the allowance is limited to the amount by which the available-for-sale security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are recognized as a decrease to current expected credit losses. For additional information regarding the Company’s process for estimating current expected credit losses for its real estate-related securities, see the Current Expected Credit Losses section below.

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, 2023, the Company capitalized $287,000 and $571,000, respectively, of interest income to real estate-related securities. 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.

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, 2023, one of the Company’s liquid corporate senior loan investments was on a nonaccrual status with a carrying value of $2.9 million, which represented less than 1% of the carrying value of the Company’s liquid corporate senior loans portfolio.

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 and CMBS 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 corporate 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 held-for-investment 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.

In estimating credit losses related to real estate-related securities, management considers a variety of factors, 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. Credit losses, if any, are estimated by calculating the difference between (i) the present value of estimated cash flows expected to be collected from the security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) the net amortized cost basis of the security. Significant judgment is used in estimating future cash flows for the Company’s real estate-related securities.

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, 2023 and 2022, the Company capitalized $5.3 million and $7.2 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, 2023 and 2022 was $848,000 and $711,000, 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 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 corporate senior loans is accrued as earned beginning on the settlement date.

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 primarily floating rate first and second lien mortgage loans, either directly or through co-investments in joint ventures, related to real estate assets. This segment also includes investments in real estate-related securities, liquid corporate senior loans and corporate senior loans.

Real estate — engages primarily in acquiring and managing geographically diversified income-producing retail, industrial and office properties that are primarily single-tenant properties, which are leased to creditworthy tenants under long-term net leases.

See Note 16 — Segment Reporting for a further discussion regarding these segments.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements.

On March 31, 2022, the FASB issued ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures (Topic 326) (“ASU 2022-02”). ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The ASU became effective for the Company beginning January 1, 2023 and is generally to be applied prospectively. ASU 2022-02 did not have an impact on the Company’s condensed consolidated financial statements for the six months ended June 30, 2023.

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. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2023

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 CMBS by utilizing broker-dealer quotations, reported trades or valuation estimates from pricing models to determine the reported price. Pricing models for CMBS 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, 2023, the Company concluded that $440.2 million of its CMBS fell under Level 2 and $163.5 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, 2023, the estimated fair value of the Company’s debt was $3.90 billion, compared to a carrying value of $4.01 billion. The estimated fair value of the Company’s debt as of December 31, 2022 was $4.32 billion, compared to a carrying value of $4.44 billion.

Derivative instruments — The Company’s derivative instruments are comprised of 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, 2023 and December 31, 2022, 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 corporate 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, 2023, $551.3 million and $132.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2022, $494.4 million and $168.0 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of June 30, 2023, the estimated fair value of the Company’s loans held-for-investment and related receivables, net was $4.15 billion, compared to its carrying value of $4.10 billion. As of December 31, 2022, the

estimated fair value of the Company’s loans held-for-investment and related receivables, net was $3.98 billion, compared to its carrying value of $4.00 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 that are required to be measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 (in thousands):

	Balance as of June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	$	603,724	$	—	$	440,240	$	163,484
Equity security	43,603		43,603		—		—
Interest rate caps	641		—		641		—
Total financial assets	$	647,968	$	43,603	$	440,881	$	163,484

	Balance as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	$	538,142	$	—	$	348,241	$	189,901
Equity security	38,249		38,249		—		—
Interest rate caps	5,040		—		5,040		—
Total financial assets	$	581,431	$	38,249	$	353,281	$	189,901

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, 2023 (in thousands):

	Level 3
Beginning Balance, January 1, 2023	$	189,901
Total gains and losses:
Unrealized loss included in other comprehensive loss, net	(19,552)
Current expected credit losses (1)	(16,432)
Purchases and payments received:
Discounts, net	8,996
Capitalized interest income	571
Ending Balance, June 30, 2023	$	163,484

____________________________________

(1)    Does not include $7.1 million of unrealized losses recognized prior to January 1, 2023 that were reclassified from other comprehensive income on the condensed consolidated statements of comprehensive income to increase in provision for credit losses on the condensed consolidated statements of operations during the six months ended June 30, 2023.

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, 2023, real estate assets related to one property was deemed to be impaired and its carrying value was reduced to an estimated fair value of $4.8 million, resulting in impairment charges of $4.8 million. 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. 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, 2023 and 2022:

Six Months Ended June 30,
2023		2022
Discount Rate	Terminal Capitalization Rate	Discount Rate	Terminal Capitalization Rate
9.7%	7.0% – 9.2%	8.0% – 9.7%	7.5% – 9.2%

The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2023 and 2022 (in thousands):

	Six Months Ended June 30,
	2023		2022
Asset class impaired:
Land	$	1,144	$	1,913
Buildings, fixtures and improvements	3,652		8,453
Intangible lease assets	18		980
Intangible lease liabilities	—		(4)
Condominium developments	—		7,945
Total impairment loss	$	4,814	$	19,287

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REAL ESTATE ASSETS

6 Months Ended

Jun. 30, 2023

Real Estate [Abstract]

REAL ESTATE ASSETS

NOTE 4 — REAL ESTATE ASSETS

Property Acquisitions

During the six months ended June 30, 2023 and 2022, the Company did not acquire any properties.

Condominium Development Project

During the six months ended June 30, 2023 and 2022, the Company capitalized $5.3 million and $7.2 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.

Condominium Dispositions

During the six months ended June 30, 2023, the Company disposed of condominium units for a sales price of $29.0 million, resulting in proceeds of $26.1 million after closing costs and a gain of $2.4 million. 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.

2023 Property Dispositions

On December 29, 2022, certain subsidiaries of the Company entered into an Agreement of Purchase and Sale (the “Realty Income Purchase and Sale Agreement”) with certain subsidiaries of Realty Income Corporation (NYSE: O) (“Realty Income”), to sell to Realty Income 185 single-tenant net lease properties encompassing approximately 4.6 million gross rentable square feet of commercial space across 34 states for total consideration of $894.0 million. The consideration was paid in cash.

During the six months ended June 30, 2023, the Company disposed of 185 properties, including 183 retail properties and two industrial properties, for an aggregate gross sales price of $909.3 million, resulting in proceeds of $899.7 million after closing costs and a gain of $43.8 million. The sale of 178 of these properties closed pursuant to the Realty Income Purchase and Sale Agreement for total consideration of $861.0 million, resulting in proceeds of $852.6 million after closing costs and a gain of $32.3 million. No properties are remaining to be sold pursuant to the Realty Income Purchase and Sale Agreement. The Company has no continuing involvement that would preclude sale treatment with these properties. The gain on sale of real estate 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 “RTL 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 includes 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 RTL 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 RTL 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 RTL Purchase and Sale Agreement. 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 RTL 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 with these properties that would preclude sale treatment. 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 was in connection with the RTL Purchase and Sale Agreement. The Company disposed of these properties in phases subsequent to June 30, 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, 2023, one property totaling approximately 45,000 square feet with a carrying value of $9.6 million was deemed to be impaired and its carrying value was reduced to an estimated fair value of $4.8 million, resulting in impairment charges of $4.8 million, which were recorded in the condensed consolidated statements of operations.

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.

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INTANGIBLE LEASE ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2023

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, 2023 and December 31, 2022 (in thousands, except weighted average life remaining):

	June 30, 2023		December 31, 2022
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $46,351 and $86,881, respectively (with a weighted average life remaining of 11.6 years and 11.1 years, respectively)
	$	105,816	$	174,954
Acquired above-market leases, net of accumulated amortization of $2,891 and $4,210, respectively (with a weighted average life remaining of 11.5 years and 12.9 years, respectively)
	4,144		10,639
Total intangible lease assets, net	$	109,960	$	185,593
Intangible lease liabilities:
Acquired below-market leases, net of accumulated amortization of $4,534 and $5,575, respectively (with a weighted average life remaining of 12.6 years and 12.4 years, respectively)
	$	13,956	$	19,054

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, 2023 and 2022 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
In-place lease and other intangible amortization	$	3,014	$	6,326	$	8,096	$	13,112
Above-market lease amortization	$	118	$	305	$	352	$	621
Below-market lease amortization	$	313	$	484	$	746	$	1,063

As of June 30, 2023, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands):

	Amortization
	In-Place Leases and Other Intangibles		Above-Market Leases		Below-Market Leases
Remainder of 2023	$	5,911	$	230	$	602
2024	11,441		424		1,126
2025	11,047		424		1,120
2026	9,843		379		1,120
2027	9,131		356		1,120
Thereafter	58,443		2,331		8,868
Total	$	105,816	$	4,144	$	13,956

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INVESTMENT IN UNCONSOLIDATED ENTITIES

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

INVESTMENT IN UNCONSOLIDATED ENTITIES

NOTE 6 — INVESTMENT IN UNCONSOLIDATED ENTITIES

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 approximately 90% of the membership interest in the NewPoint JV. Through the Unconsolidated Joint Venture, the Company has an approximate 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, 2023, the carrying value of the Company’s investment in NP JV Holdings was $101.2 million, which approximates fair value and is included in investment in unconsolidated entities on the condensed consolidated balance sheets. The Company received $9.8 million in distributions related to its investment in NP JV Holdings during the six months ended June 30, 2023, $5.0 million of which was recognized as a return on investment and $4.8 million of which was recognized as a return of investment and reduced the invested capital and the carrying amount. As of June 30, 2023, the Company had $113.0 million of unfunded commitments related to NewPoint JV. These commitments are not reflected in the accompanying condensed consolidated balance sheets.

The Company provided a limited guaranty to NewPoint JV, under which the Company agreed to guarantee the Unconsolidated Joint Venture’s cross indemnity and its share of capital contribution obligations under the agreement with NewPoint JV.

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. During the 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.

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REAL ESTATE-RELATED SECURITIES

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

REAL ESTATE-RELATED SECURITIES

NOTE 7 — REAL ESTATE-RELATED SECURITIES

As of June 30, 2023, the Company had real estate-related securities with an aggregate estimated fair value of $647.3 million, which included 24 CMBS investments and an investment in a publicly-traded equity security. The CMBS mature on various dates from July 2023 through June 2058 and have interest rates ranging from 6.7% to 12.5% as of June 30, 2023, 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, 2023 (in thousands):

	Real Estate-Related Securities
	Amortized Cost Basis		Unrealized Loss		CECL		Fair Value
CMBS	$	694,006	$	(66,830)	$	(23,452)	$	603,724
Equity security	53,388		(9,785)		—		43,603
Total real estate-related securities	$	747,394	$	(76,615)	$	(23,452)	$	647,327

The following table provides the activity for the real estate-related securities during the six months ended June 30, 2023 (in thousands):

	Amortized Cost Basis		Unrealized Loss		CECL		Fair Value
Real estate-related securities as of January 1, 2023	$	640,037	$	(63,646)	$	—	$	576,391
Face value of real estate-related securities acquired	146,037		—		—		146,037
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs	(2,879)		—		—		(2,879)
Amortization of discount on real estate-related securities	17,219		—		—		17,219
Capitalized interest income on real estate-related securities	571		—		—		571
Principal payments received on real estate-related securities (1)	(53,591)		—		—		(53,591)
Unrealized loss on real estate-related securities, net	—		(12,969)		—		(12,969)
Current expected credit losses	—		—		(23,452)		(23,452)
Real estate-related securities as of June 30, 2023	$	747,394	$	(76,615)	$	(23,452)	$	647,327

____________________________________

(1)    Includes the repayment of the Company’s position in two different tranches of a CMBS instrument prior to their stated maturity dates.

During the six months ended June 30, 2023, the Company invested $143.2 million in CMBS. Unrealized gains and losses on CMBS are recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified into other income, 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, 2023, the Company recorded $13.0 million of net unrealized loss on its real estate-related securities, comprised of an $18.3 million unrealized loss on CMBS, which is included in other comprehensive income (loss) in the accompanying condensed consolidated statements of comprehensive income and a $5.4 million unrealized gain on the Company’s equity security, which is included in unrealized gain (loss) on equity security in the accompanying condensed consolidated statements of operations.

The scheduled maturities of the Company’s CMBS as of June 30, 2023 are as follows (in thousands):

	CMBS
	Amortized Cost		Estimated Fair Value
Due within one year	$	518,174	$	439,574
Due after one year through five years	133,204		133,091
Due after five years through ten years	—		—
Due after ten years	42,628		31,059
Total	$	694,006	$	603,724

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.

Current Expected Credit Losses

Current expected credit losses reflect the Company’s current estimate for potential credit losses related to real estate-related securities included in the Company’s condensed consolidated balance sheets. Current expected credit related losses are recorded in increase in provision to credit losses on the Company’s condensed consolidated statements of operations. 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 related to its position in one of two different tranches of a CMBS instrument for the six months ended June 30, 2023 (dollar amounts in thousands):

	CMBS
Current expected credit losses as of January 1, 2023	$	—
Provision for credit losses	—
Current expected credit losses as of March 31, 2023	—
Provision for credit losses	23,452
Current expected credit losses as of June 30, 2023	$	23,452

During the six months ended June 30, 2023, the loan collateralizing one of the Company’s CMBS positions was transferred from the master servicer to a special servicer due to payment default generated by halted rent payments on the underlying office properties being mortgaged. During the three months ended June 30, 2023, the underlying collateral of the loan was appraised by the special servicer, resulting in an appraisal reduction representing approximately 44% of one of the CMBS position’s tranches the Company is invested in. Further, the appraisal reduction resulted in reduced cash flows received from the respective CMBS investment during the three months ended June 30, 2023. The Company considered various factors, including the factors noted above, in determining whether a credit loss existed. The present value of cash flows expected to be collected from the CMBS position did not exceed its amortized cost basis, and as such the Company determined the security had incurred a credit loss. The Company does not intend to sell the CMBS position and it is not considered more likely than not that the Company will be forced to sell the security prior to recovering the amortized cost.

As a result of the credit loss incurred, the Company reclassified $13.6 million of unrealized loss from other comprehensive income on the condensed consolidated statements of comprehensive income to increase in provision for credit losses on the condensed consolidated statements of operations during the three months ended June 30, 2023, and recorded an incremental $9.9 million to increase in provision for credit losses on the condensed consolidated statements of operations identified as part of the Company’s quantitative credit loss assessment. The Company will continue to monitor for changes in expected cash flows in order to continue to measure the credit loss.

As of June 30, 2023, there were 15 CMBS positions with unrealized losses reflected in other comprehensive income (loss) in the accompanying condensed consolidated statements of comprehensive income. Upon evaluating these securities, the Company concluded that the unrealized losses included in other comprehensive income (loss) as of June 30, 2023 were noncredit-related and would be recovered from the securities’ estimated future cash flows. The Company considered various factors in reaching this conclusion, including that the Company did not intend to sell the securities, it was not considered more

likely than not that the Company would be forced to sell the securities prior to recovering the amortized cost, and there were no material credit events that would have caused the Company to conclude that the amortized cost would not be recovered.

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LOANS HELD-FOR-INVESTMENT

6 Months Ended

Jun. 30, 2023

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, 2023 and December 31, 2022 (in thousands):

	As of June 30,		As of December 31,
	2023		2022
First mortgage loans (1)	$	3,317,027	$	3,285,193
Total CRE loans held-for-investment and related receivables, net	3,317,027		3,285,193
Liquid corporate senior loans	710,546		701,540
Corporate senior loans	137,948		57,165
Loans held-for-investment and related receivables, net	$	4,165,521	$	4,043,898
Less: Current expected credit losses	$	(67,562)	$	(42,344)
Total loans held-for-investment and related receivables, net	$	4,097,959	$	4,001,554

____________________________________

(1)    As of June 30, 2023, first mortgage loans included $20.2 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, 2023 and December 31, 2022 (dollar amounts in thousands):

	CRE Loans (1) (2)						Liquid Corporate Senior Loans						Corporate Senior Loans
	June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Number of loans	29			29			317			317			11			4
Principal balance	$	3,334,312		$	3,306,411		$	717,600		$	708,254		$	140,320		$	57,918
Net book value	$	3,272,258		$	3,264,841		$	689,714		$	680,345		$	135,987		$	56,368
Weighted-average interest rate	8.5		%	7.6		%	8.9		%	8.0		%	11.7		%	10.5		%
Weighted-average maximum years to maturity	3.2			3.6			4.5			4.7			3.7			4.6
Unfunded loan commitments (3)	$	266,999		$	304,649		$	1,233		$	1,425		$	30,341		$	4,324

____________________________________

(1)As of June 30, 2023, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to 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 corporate senior loan purchases of $18.4 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 Corporate Senior Loans		Corporate Senior Loans		Total Loan Portfolio
Balance, January 1, 2023	$	3,264,841	$	680,345	$	56,368	$	4,001,554
Loan originations and acquisitions	137,524		82,370		82,734		302,628
Sale of loans	—		(25,490)		—		(25,490)
Principal repayments received (1)	(109,623)		(46,645)		(332)		(156,600)
Deferred fees and other items (2)	(2,125)		(2,508)		(1,757)		(6,390)
Accretion and amortization of fees and other items	6,058		1,279		138		7,475
(Provision for) reversal of credit losses (3)	(24,417)		363		(1,164)		(25,218)
Balance, June 30, 2023	$	3,272,258	$	689,714	$	135,987	$	4,097,959

____________________________________

(1)Includes the repayment of a $105.0 million first mortgage loan prior to the maturity date.

(2)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.

(3)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.

Current Expected Credit Losses

Current expected credit losses reflect the Company’s current estimate of potential credit losses related to 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 related to loans held-for-investment by loan type for the six months ended June 30, 2023 (in thousands):

	First Mortgage Loans		Unfunded First Mortgage Loans (1)		Liquid Corporate Senior Loans		Unfunded or Unsettled Liquid Corporate Senior Loans (1)		Corporate Senior Loans		Unfunded Corporate Senior Loans (1)		Total
Current expected credit losses as of January 1, 2023	$	20,352	$	1,890	$	21,195	$	377	$	797	$	66	$	44,677
Provision for (reversal of) credit losses	1,949		138		(914)		(121)		400		1		1,453
Current expected credit losses as of March 31, 2023	$	22,301	$	2,028	$	20,281	$	256	$	1,197	$	67	$	46,130
Provision for credit losses	22,468		2,140		551		3		764		259		26,185
Current expected credit losses as of June 30, 2023	$	44,769	$	4,168	$	20,832	$	259	$	1,961	$	326	$	72,315

____________________________________

(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on 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.

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, 2023 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, 2023
	Number of Loans		2023		2022		2021		2020		2019		Total
First mortgage loans by internal risk rating:
1	—		$	—	$	—	$	—	$	—	$	—	$	—
2	1		—		—		—		89,707		—		89,707
3	24		97,955		1,178,664		1,378,990		72,864		49,878		2,778,351
4	4		—		80,566		368,403		—		—		448,969
5	—		—		—		—		—		—		—
Total first mortgage loans	29		97,955		1,259,230		1,747,393		162,571		49,878		3,317,027
Liquid corporate senior loans by internal risk rating:
1	—		—		—		—		—		—		—
2	2		—		—		—		5,272		—		5,272
3	304		45,746		126,649		360,279		148,293		2,312		683,279
4	10		—		3,228		7,989		7,860		—		19,077
5	1	(2)	—		2,918		—		—		—		2,918
Total liquid corporate senior loans	317		45,746		132,795		368,268		161,425		2,312		710,546
Corporate senior loans by internal risk rating:
1	—		—		—		—		—		—		—
2	—		—		—		—		—		—		—
3	11		81,120		56,828		—		—		—		137,948
4	—		—		—		—		—		—		—
5	—		—		—		—		—		—		—
Total corporate senior loans	11		81,120		56,828		—		—		—		137,948
Less: Current expected credit losses													(67,562)
Total loans held-for-investment and related receivables, net	357												$	4,097,959
Weighted Average Risk Rating (3)													3.1

____________________________________

(1)Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.

(2)As of June 30, 2023, one of the Company’s liquid corporate senior loan investments was on nonaccrual status with a carrying value of $2.9 million, which represented less than 1% of the carrying value of the Company’s liquid corporate senior loans portfolio.

(3)Weighted average risk rating calculated based on carrying value at period end.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2023

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. As of June 30, 2023, the Company had two non-designated interest rate cap agreements.

The following table summarizes the terms of the Company’s interest rate cap agreements as of June 30, 2023 and December 31, 2022 (dollar amounts in thousands):

		Outstanding Notional					Fair Value of Assets as of
	Balance Sheet	Amount as of		Strike	Effective	Maturity	June 30,		December 31,
	Location	June 30, 2023		Rates	Dates	Dates	2023		2022
Interest Rate Caps	Prepaid expenses, derivative assets and other assets	$	712,000	3.50% (1) to 4.00% (2)	7/15/2021 to 9/13/2022	7/15/2023 to 10/9/2023	$	641	$	5,040

____________________________________

(1)The index used for this derivative instrument is 1-Month London Inter-bank Offered Rate (“LIBOR”).

(2)The index used for this derivative instrument is 1-Month Term SOFR.

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 other income, net on the accompanying condensed consolidated statements of operations. Interest rate swaps are designated as cash flow hedges in order to hedge the variability of the anticipated cash flows on the Company’s variable rate debt. The change in fair value of the derivative instruments designated as hedges is recorded in other comprehensive income (loss), with a portion of the amount subsequently reclassified to interest expense as interest payments are made on the Company’s variable rate debt. During the year ended December 31, 2022, two of the Company’s interest rate swap agreements matured and three interest rate swap agreements were terminated prior to the maturity dates. For the three and six months ended June 30, 2023, no amounts were reclassified from other comprehensive income (loss) as a change to interest expense. For the three and six months ended June 30, 2022, the amount of loss reclassified from other comprehensive income (loss) as an increase to interest expense was $69,000 and $62,000, respectively. The total unrealized gain on interest rate swaps of $2.5 million as of June 30, 2022 is included in accumulated other comprehensive loss in the accompanying condensed consolidated statements of stockholders’ equity. No such unrealized amounts on interest rate swaps were remaining in other comprehensive income (loss) as of June 30, 2023. Subsequent to June 30, 2023, the interest rate cap indexed to LIBOR matured. The Company includes cash flows from interest rate swap agreements in net cash flows provided by operating activities on its condensed consolidated statements of cash flows, as the Company’s accounting policy is to present cash flows from hedging instruments in the same category in its condensed consolidated statements of cash flows as the category for cash flows from the hedged items.

The Company has agreements with each of its derivative counterparties that contain provisions whereby if the Company defaults on certain of its unsecured indebtedness, the Company could also be declared in default on its derivative obligations, resulting in an acceleration of payment. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value, inclusive of interest payments and accrued interest. In addition, the Company is exposed to credit risk in the event of non-performance by its derivative counterparties. The Company believes it mitigates its credit risk by entering into agreements with creditworthy counterparties. The Company records credit risk valuation adjustments on its derivative instruments based on the credit quality of the Company and the respective counterparty. There were no events of default related to the derivative instruments as of June 30, 2023.

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES

NOTE 10 — REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES

As of June 30, 2023, the Company had $4.0 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 6.2%. 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, 2023 and December 31, 2022, and the debt activity for the six months ended June 30, 2023 (in thousands):

			During the Six Months Ended June 30, 2023
	Balance as of December 31, 2022		Debt Issuances & Assumptions (1)		Repayments & Modifications (2)			Amortization		Balance as of June 30, 2023
Notes payable – fixed rate debt	$	36,538	$	—	$	(36,538)		$	—	$	—
Notes payable – variable rate debt	465,517		76,112		(29,057)			—		512,572
First lien mortgage loan	121,940		—		(121,940)			—		—
ABS mortgage notes	763,035		—		(3,870)			—		759,165
Credit facilities	738,500		35,000		(328,000)			—		445,500
Repurchase facilities	2,318,381		130,498		(158,942)			—		2,289,937
Total debt	4,443,911		241,610		(678,347)			—		4,007,174
Deferred costs – credit facility (3)	(740)		—		679		(4)	61		—
Deferred costs – fixed rate debt and first lien mortgage loan	(1,109)		—		702		(4)	407		—
Deferred costs – variable rate debt	(5,261)		(42)		1,210		(4)	257		(3,836)
Deferred costs – ABS mortgage notes	(13,968)		(493)		—			1,021		(13,440)
Total debt, net	$	4,422,833	$	241,075	$	(675,756)		$	1,746	$	3,989,898

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(1)Includes deferred financing costs incurred during the period.

(2)In connection with the repayment of certain mortgage notes and the termination of the CMFT Credit Facility (defined below), the Company recognized a loss on extinguishment of debt of $4.5 million during the six months ended June 30, 2023, which included approximately $1.0 million in prepayment penalties.

(3)Deferred costs related to the term portion of the CMFT Credit Facility.

(4)In connection with the repayment of certain mortgage notes and the termination of the CMFT Credit Facility, the Company wrote off approximately $2.6 million of unamortized deferred loan costs.

Notes Payable

During the six months ended June 30, 2023, the Company legally defeased a mortgage loan with an outstanding balance of $23.7 million, resulting in a $205,000 loss on extinguishment of debt in the Company’s condensed consolidated statement of operations during the six months ended June 30, 2023, and repaid the remaining $12.8 million of fixed rate debt outstanding, both in connection with the disposition of the underlying properties securing the fixed rate debt.

As of June 30, 2023, the Company had $512.6 million of variable rate debt outstanding, which included $420.8 million of borrowings financed through a note on note financing arrangement with Massachusetts Mutual Life Insurance Company (the “Mass Mutual Financing”) and $75.0 million of borrowings financed through a note on note financing agreement with Citibank, N.A. (the “Citibank 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 “Assumed Variable Rate Debt”), which the Company subsequently refinanced and paid down the outstanding balance during the year ended December 31, 2022. The amended borrowing agreement related to the refinanced Assumed Variable Rate Debt provides for borrowings up to $62.0 million. As of June 30, 2023, the amount outstanding on the refinanced Assumed Variable Rate Debt totaled $16.8 million. The Company’s outstanding variable rate debt had a weighted average interest rate of 7.2% as of June 30, 2023, and matures on various dates from August 2024 to January 2028.

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, each of which is an affiliate of the Company and is managed on a day-to-day basis by affiliates of CIM. During the six months ended June 30, 2023, the Company paid down the $121.9 million outstanding balance on the Mortgage Loan, $105.8 million of which

was in connection with the sale of properties pursuant to the Realty Income Purchase and Sale Agreement. Refer to Note 4 — Real Estate Assets for additional information regarding the sale.

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)

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(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 175 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 $963.8 million. As of June 30, 2023, amounts outstanding on the Class A Notes totaled $759.2 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

During the six months ended June 30, 2023, CMFT CL Lending Sub AB, LLC (the “Borrower”), an indirect wholly owned subsidiary of the Company, entered into a revolving loan and security agreement (the “Loan and Security Agreement”) with each of the lenders from time to time party thereto (the “Lenders”), Ally Bank as administrative agent and arranger (“Ally Bank”), U.S. Bank Trust Company, National Association, as the collateral custodian, and U.S. Bank National Association as the document custodian, which provides for borrowings in an aggregate principal amount up to $300.0 million (the “Loan Facility”), which may be increased during the revolving period (as defined below) to an aggregate principal amount up to $500.0 million as agreed to by the Borrower, any applicable Lender and Ally Bank.

Borrowings under the Loan and Security Agreement will bear interest equal to SOFR for the relevant interest period, plus an applicable rate. The applicable rate is 2.875% per annum (and an additional 2.00% per annum following an event of default under the Loan and Security Agreement). The revolving period began on February 10, 2023 and concludes on the day preceding the earlier to occur of (i) the scheduled revolving period end date of February 10, 2026, (ii) the date of the declaration of the revolving period end date upon the occurrence and continuation of an event of default, and (iii) the termination date. The termination date is the earlier to occur of (i) February 10, 2028 (two years after the revolving period end date) and (ii) the date of the declaration of the termination date or the date of the automatic occurrence of the termination date upon the occurrence and continuation of an event of default. As of June 30, 2023, no amounts were borrowed and outstanding under the Loan Facility.

The Company had a credit agreement with the lenders from time to time parties thereto, JPMorgan Chase, as administrative agent, letter of credit issuer and syndication agent, and PNC Bank, N.A., as syndication agent, that provided for borrowings in the initial amount of $300.0 million (the “CMFT Credit Facility”). The CMFT Credit Facility was set to mature on July 15, 2025. During the six months ended June 30, 2023, the Company paid down the $240.0 million outstanding balance under the CMFT Credit Facility and terminated the CMFT Credit Facility.

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, 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, 2023, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $445.5 million at a weighted average interest rate of 7.2%.

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 and concludes on the earlier of (i) the date that is three years after June 23, 2022, the date the third amendment became effective, (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 corporate 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, 2023.

Repurchase Facilities

As of June 30, 2023, indirect wholly-owned subsidiaries of the Company (collectively, the “CMFT Lending Subs”), had Master Repurchase Agreements with Citibank, 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, 2023 (dollar amounts in thousands):

Repurchase Facility	Date of Agreement	Maturity Date(1)		Maximum Facility Size			Weighted Average Interest Rate		Loans Financed under Repurchase Facility (2)		Amount Financed
Citibank	6/4/2020	8/17/2024		$	400,000		6.9%	(3)	$	470,251	$	336,035
Barclays	9/21/2020	9/22/2025		1,250,000			7.0%	(3)	1,112,474		806,317
Wells Fargo	5/20/2021	8/30/2025		750,000			6.8%	(3)	900,638		696,712
Deutsche Bank	10/8/2021	10/8/2023		300,000			7.4%	(3)	196,960		143,862
J.P. Morgan	6/1/2022	7/31/2023	(4)	—		(4)	6.4%	(5)	548,480		307,011
Total				$	2,700,000				$	3,228,803	$	2,289,937

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(1)As of June 30, 2023, the repurchase facilities with Citibank and Wells Fargo each have two one-year extension options remaining, the repurchase facility with Barclays has one one-year extension option remaining and the repurchase facility with Deutsche Bank has four one-year extension options remaining. All repurchase facilities are subject to certain conditions set forth in their respective Repurchase Agreements.

(2)CRE mortgage loan balances financed under the Repurchase Facilities with Citibank, Barclays, Wells Fargo and Deutsche Bank reflect the aggregate outstanding principal balance while the CMBS balance financed under the J.P. Morgan Repurchase Facility reflects fair value.

(3)Advances under the Repurchase Agreements accrue interest at per annum rates based on Term SOFR (as such term is defined in the applicable Repurchase Agreement) or the daily compounded SOFR plus a spread ranging from 1.30% to 2.85% to be determined on a case-by-case basis between Citibank, Barclays, Wells Fargo or Deutsche Bank and the CMFT Lending Subs.

(4)Facilities under the repurchase facility with J.P. Morgan (“J.P. Morgan Repurchase Facility”) carry a rolling term which is reset monthly. Such facilities carry no maximum facility size.

(5)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, which as of June 30, 2023, ranges from 1.05% to 1.45%.

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, 2023.

Maturities

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2023 (in thousands):

	Principal Repayments
Remainder of 2023	$	451,518
2024	427,838
2025	1,503,029
2026	—
2027	820,429
Thereafter	804,360
Total	$	4,007,174

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2023

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, 2023, the Company had $298.6 million of unfunded loan commitments related to its existing CRE loans held-for-investment, corporate senior loans, and liquid corporate senior loans, and $113.0 million of unfunded commitments related to NewPoint JV. These commitments are not reflected in the accompanying condensed consolidated balance sheets.

As of June 30, 2023, the Company had $18.4 million of unsettled liquid corporate senior loan acquisitions, $10.5 million of which settled subsequent to June 30, 2023. Unsettled acquisitions are included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.

Environmental MattersIn 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

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RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS

6 Months Ended

Jun. 30, 2023

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 March 24, 2023, the Company and CMFT Management entered into the second amended and restated management agreement (the “Management Agreement”), which amended and restated the amended and restated management agreement between the parties dated August 20, 2019.

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 Group, 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 Group. 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 the 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, 2023 and 2022, 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,
	2023		2022		2023		2022
Management fees	$	12,859	$	13,351	$	25,438	$	26,698
Expense reimbursements to related parties	$	3,681	$	3,777	$	7,249	$	7,471

Due to Affiliates

Of the amounts shown above, $14.3 million and $14.4 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, 2023 and 2022, 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 Board’s former valuation, compensation and affiliate transactions committee, 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, 2023 and 2022, the Company recorded $107,000 and $234,000, 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 first 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”). The Company redeemed its investment in the preferred units during the year ended December 31, 2022 in exchange for an investment in a first mortgage loan. As of June 30, 2023, $203.6 million of the first mortgage loan was outstanding.

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, 2023, $123.0 million of the first mortgage loan was outstanding.

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 (“CMMT”), 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 $99.5 million has been funded, net of $45.8 million returned as a return of capital that can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date. For more information on the NewPoint JV, see Note 2 — Summary of Significant Accounting Policies and Note 6 — Investment in Unconsolidated Entities.

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, 2023, $154.0 million of the first mortgage loan was outstanding.

In April 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, 2023, $145.5 million of the first mortgage loan was outstanding.

During the year ended December 31, 2022, the Company and CIM RACR co-invested $75.9 million and $14.7 million, respectively, in five corporate senior loans to a third-party. During the six months ended June 30, 2023, the Company and CIM RACR co-invested $71.6 million and $13.6 million, respectively, in six corporate senior loans to a third-party. In addition, the Company and CIM RACR upsized a co-invested corporate senior loan to a third-party by $1.7 million and $348,000, respectively, during the six months ended June 30, 2023. As of June 30, 2023, $130.2 million of the corporate senior loans was outstanding. The Sub-Advisor provided investment management services related to these corporate senior loans pursuant to the Sub-Advisory Agreement.

Subsequent to June 30, 2023, the Company and CIM RACR co-invested $464,000 and $58,000, respectively, in one corporate senior loan to a third-party. The Sub-Advisor provided investment management services related to this corporate senior loan pursuant to the Sub-Advisory Agreement.

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ECONOMIC DEPENDENCY

6 Months Ended

Jun. 30, 2023

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.

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STOCKHOLDERS’ EQUITY

6 Months Ended

Jun. 30, 2023

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. 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 superseded and replaced 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 is 250,000 shares, which is a reduction from 400,000 shares authorized for issuance under the 2018 Plan, and awards of approximately 183,000 shares of common stock are available for future grant at June 30, 2023. 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, 2023, 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 and approximately 67,000 restricted shares in the aggregate to the independent members of the Board under the 2022 Plan. As of June 30, 2023, 116,000 of the restricted shares had vested based on one year of continuous service. The remaining 67,000 restricted shares issued had not vested or been forfeited as of June 30, 2023. 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 $240,000 for the three and six months ended June 30, 2023, respectively, and $120,000 and $157,000 for the three and six months ended June 30, 2022, 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, 2023, there was $120,000 of total unrecognized compensation expense related to these restricted shares, which will be recognized ratably over the remaining period of service prior to October 2023.

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LEASES

6 Months Ended

Jun. 30, 2023

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, 2023, the Company’s leases had a weighted-average remaining term of 11.1 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, 2023, 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 2023	$	44,620
2024	88,250
2025	88,007
2026	85,242
2027	82,829
Thereafter	635,820
Total	$	1,024,768

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, 2023 and 2022, 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, 2023 and 2022 consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fixed rental and other property income (1)	$	23,035	$	47,941	$	60,392	$	112,647
Variable rental and other property income (2)	2,647		5,567		4,071		14,597
Total rental and other property income	$	25,682	$	53,508	$	64,463	$	127,244

__________________________________

(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 10.2 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities) and a related right-of-use (“ROU”) asset (in prepaid expenses, derivative assets and other assets) of $2.0 million in the condensed consolidated balance sheets. The lease liability and ROU asset were initially measured at the present value of the future minimum lease payments using a discount rate of 4.3%. This reflects the Company’s incremental borrowing rate, which was calculated based on the interest rate the Company would incur to borrow on a fully collateralized basis over a term similar to the lease.

The Company recognized $63,000 and $125,000 of ground lease expense during the three and six months ended June 30, 2023, respectively, of which $61,000 and $121,000, respectively, was paid in cash during the period it was recognized. As of June 30, 2023, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $125,000 for the remainder of 2023, $250,000 annually for 2024 through 2028, and $1.2 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, 2023, the Company’s leases had a weighted-average remaining term of 11.1 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, 2023, 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 2023	$	44,620
2024	88,250
2025	88,007
2026	85,242
2027	82,829
Thereafter	635,820
Total	$	1,024,768

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, 2023 and 2022, 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, 2023 and 2022 consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fixed rental and other property income (1)	$	23,035	$	47,941	$	60,392	$	112,647
Variable rental and other property income (2)	2,647		5,567		4,071		14,597
Total rental and other property income	$	25,682	$	53,508	$	64,463	$	127,244

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(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 10.2 years, with a lease liability (in deferred rental income, derivative liabilities and other liabilities) and a related right-of-use (“ROU”) asset (in prepaid expenses, derivative assets and other assets) of $2.0 million in the condensed consolidated balance sheets. The lease liability and ROU asset were initially measured at the present value of the future minimum lease payments using a discount rate of 4.3%. This reflects the Company’s incremental borrowing rate, which was calculated based on the interest rate the Company would incur to borrow on a fully collateralized basis over a term similar to the lease.

The Company recognized $63,000 and $125,000 of ground lease expense during the three and six months ended June 30, 2023, respectively, of which $61,000 and $121,000, respectively, was paid in cash during the period it was recognized. As of June 30, 2023, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $125,000 for the remainder of 2023, $250,000 annually for 2024 through 2028, and $1.2 million thereafter through the maturity date of the lease in August 2033.

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SEGMENT REPORTING

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 16 — SEGMENT REPORTING

The Company has two reportable segments: Credit and Real Estate. Corporate/other represents all corporate level and unallocated items and includes the Company’s other asset management activities and 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, 2023 and 2022 (in thousands):

	Real Estate		Credit		Corporate/Other (1)		Company Total
Three Months Ended June 30, 2023
Rental and other property income	$	25,590	$	—	$	92	$	25,682
Interest income	—		115,038		—		115,038
Total revenues	25,590		115,038		92		140,720
General and administrative	348		1,187		3,386		4,921
Interest expense, net	3,165		56,049		334		59,548
Property operating	1,201		—		1,806		3,007
Real estate tax	890		—		341		1,231
Expense reimbursements to related parties	—		—		3,681		3,681
Management fees	2,641		10,218		—		12,859
Transaction-related	12		—		51		63
Depreciation and amortization	9,319		—		—		9,319
Increase in provision for credit losses	—		49,637		—		49,637
Total expenses	17,576		117,091		9,599		144,266
Other income (expense):
Gain on disposition of real estate and condominium developments, net	24,285		—		2,278		26,563
Gain on investment in unconsolidated entities	—		5,806		—		5,806
Unrealized gain on equity security	—		3,096		—		3,096
Other (expense) income, net	(2,352)		1,166		2,036		850
Loss on extinguishment of debt	(24)		—		(870)		(894)
Segment net income (loss)	$	29,923	$	8,015	$	(6,063)	$	31,875
Total assets as of June 30, 2023	$	1,198,007	$	4,948,370	$	518,229	$	6,664,606

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(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, 2023
Rental and other property income	$	64,305	$	—	$	158	$	64,463
Interest income	—		223,121		—		223,121
Total revenues	64,305		223,121		158		287,584
General and administrative	422		1,559		6,238		8,219
Interest expense, net	11,316		110,066		4,400		125,782
Property operating	2,888		—		2,695		5,583
Real estate tax	1,315		—		733		2,048
Expense reimbursements to related parties	—		—		7,249		7,249
Management fees	5,891		19,547		—		25,438
Transaction-related	25		—		51		76
Depreciation and amortization	24,429		—		—		24,429
Real estate impairment	4,814		—		—		4,814
Increase in provision for credit losses	—		51,090		—		51,090
Total expenses	51,100		182,262		21,366		254,728
Other income (expense):
Gain on disposition of real estate and condominium developments, net	43,845		—		2,341		46,186
Gain on investment in unconsolidated entities	—		5,036		—		5,036
Unrealized gain on equity security	—		5,354		—		5,354
Other (expense) income, net	(4,192)		3,007		2,359		1,174
Loss on extinguishment of debt	(1,195)		—		(3,344)		(4,539)
Segment net income (loss)	$	51,663	$	54,256	$	(19,852)	$	86,067
Net income allocated to noncontrolling interest	8		—		—		8
Segment net income (loss) attributable to the Company	$	51,655	$	54,256	$	(19,852)	$	86,059
Total assets as of June 30, 2023	$	1,198,007	$	4,948,370	$	518,229	$	6,664,606

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(1)Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021.

	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
Interest expense, net	10,258		18,784		3,626		32,668
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 expenses	47,750		31,820		20,578		100,148
Other income (expense):
Gain (loss) on disposition of real estate and condominium developments, net	81,181		—		(74)		81,107
Gain on investment in unconsolidated entities	—		1,323		—		1,323
Unrealized loss on equity security	—		(4,064)		—		(4,064)
Other income, net	1,089		1,150		33		2,272
Loss on extinguishment of debt	(2,257)		—		(3,112)		(5,369)
Segment net income (loss)	$	85,668	$	11,573	$	(23,628)	$	73,613
Net loss 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

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(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
Interest expense, net	25,341		30,391		6,932		62,664
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 expenses	106,040		54,582		31,626		192,248
Other income (expense):
Gain on disposition of real estate and condominium developments, net	110,446		—		3,235		113,681
Gain on investment in unconsolidated entities	—		1,491		5,172		6,663
Unrealized (loss) gain on equity security	—		(6,433)		23		(6,410)
Other income, net	2,331		1,212		34		3,577
Loss on extinguishment of debt	(12,994)		—		(3,246)		(16,240)
Segment net income (loss)	$	120,787	$	18,135	$	(26,208)	$	112,714
Net loss 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

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(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, L.P. (“CIM UII Onshore”).

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE 17 — SUBSEQUENT EVENTS

Redemptions of Shares of Common Stock

Subsequent to June 30, 2023, the Company redeemed approximately 1.6 million shares for $10.8 million (at a redemption price of $6.57 per share). The remaining redemption requests received during the three months ended June 30, 2023 totaling approximately 24.8 million shares went unfulfilled.

Investment and Disposition Activity

Subsequent to June 30, 2023, the Company’s investment and disposition activity included the following:

•Disposed of one condominium unit for a sales price of $1.5 million, resulting in net proceeds of $1.4 million after closing costs and a gain of approximately $459,000.

•Settled $10.5 million of liquid senior loan purchases, all of which were traded as of June 30, 2023, and sold $25.8 million of liquid senior loans.

•Invested $9.1 million in two corporate senior loans to a third-party.

•Funded an aggregate amount of $5.2 million to five of the Company’s first mortgage loans, and received $4.9 million of principal repayments.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2023

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, 2022, and related notes thereto, set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated financial statements should also be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

In determining whether the Company has controlling interests in an entity and is required 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 the entities 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.

Reclassifications

Reclassifications

Certain amounts in the Company’s prior period condensed consolidated financial statements have been reclassified to conform to the current period presentation. The Company has chosen to break out the details of $32.7 million and $62.7 million of interest expense, net from other income, net into expenses in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively, driven by the Company’s current investment portfolio composition being predominantly comprised of credit investments. This reclassification of interest expense, net did not have an impact on net income or cash flow from operating activities. In addition, the Company has chosen to break out the details of $4.1 million and $6.4 million of unrealized loss on equity security from other income, net in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2022, respectively. The Company has also chosen to break out the details of $11.9 million of accrued interest receivable from prepaid expenses, derivative assets and other assets in the Company’s condensed consolidated balance sheet as of June 30, 2022, which resulted in a corresponding breakout of $7.4 million from prepaid expenses, derivative assets and other assets to accrued interest receivable in the Company’s condensed consolidated statement of cash flows for the six months ended June 30, 2022. The 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 Dispositions 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

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; significant increases to budgeted costs for units under development; and a reduction in prevailing market values for assets being considered for disposition. 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.The Company’s impairment assessment as of June 30, 2023 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 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, 2023, the Company did not identify any real estate assets as held for sale.

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. Given the Company’s current asset portfolio and strategy, the Company’s dispositions during the six months ended June 30, 2023 and 2022 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.

Allocation of Purchase Price of Real Estate Assets

Allocation of Purchase Price of Real Estate Assets

Upon the acquisition of real properties, the Company allocates the purchase price to acquired tangible assets, consisting of land, buildings and improvements, and to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and other intangibles, based in each case on their relative fair values. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations.

Certain acquisition-related expenses related to asset acquisitions are capitalized and allocated to tangible and intangible assets and liabilities, as described above. 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

Investment in Unconsolidated Entities

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 approximately 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 approximately 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 of $5.8 million and $5.0 million, respectively, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2023, respectively, in the condensed consolidated statements of operations. The Company recorded a gain of $1.3 million and $1.5 million, respectively, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2022. During the six

months ended June 30, 2023, the Company contributed an additional $5.4 million in NP JV Holdings and received $5.8 million as a return of capital that can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date. As of June 30, 2023 and December 31, 2022, the Company’s aggregate investment in NP JV Holdings of $101.2 million and $100.6 million, respectively, is included in investment in unconsolidated entities on the condensed consolidated balance sheets. For more information, refer to Note 6 — Investment 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”). 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 consolidated balance sheet and such share is recognized as a profit or loss on the consolidated statements of operations. During the six months ended June 30, 2022, the Company recorded its share of CIM UII Onshore’s gain totaling $5.2 million. 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.

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, 2023, 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 income (loss).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, such as market conditions. Such losses that are credit related are recorded as a current expected credit loss in increase in provision to credit losses on the Company’s condensed consolidated statements of operations. Subsequent

cumulative adverse changes in expected cash flows on the Company’s available-for-sale securities are recognized as an increase to current expected credit losses. However, the allowance is limited to the amount by which the available-for-sale security’s amortized cost exceeds its fair value. Favorable changes in expected cash flows are recognized as a decrease to current expected credit losses. For additional information regarding the Company’s process for estimating current expected credit losses for its real estate-related securities, see the Current Expected Credit Losses section below.

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, 2023, the Company capitalized $287,000 and $571,000, respectively, of interest income to real estate-related securities. 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.

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.

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.

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 and CMBS 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 corporate 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 held-for-investment 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.

In estimating credit losses related to real estate-related securities, management considers a variety of factors, 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. Credit losses, if any, are estimated by calculating the difference between (i) the present value of estimated cash flows expected to be collected from the security discounted at the yield determined as of the initial acquisition date or, if since revised, as of the last date previously revised, to (ii) the net amortized cost basis of the security. Significant judgment is used in estimating future cash flows for the Company’s real estate-related securities.

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.

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

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, 2023 and 2022, the Company capitalized $5.3 million and $7.2 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, 2023 and 2022 was $848,000 and $711,000, 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 corporate 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 primarily floating rate first and second lien mortgage loans, either directly or through co-investments in joint ventures, related to real estate assets. This segment also includes investments in real estate-related securities, liquid corporate senior loans and corporate senior loans.

Real estate — engages primarily in acquiring and managing geographically diversified income-producing retail, industrial and office properties that are primarily single-tenant properties, which are leased to creditworthy tenants under long-term net leases.

See Note 16 — Segment Reporting for a further discussion regarding these segments.

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.

On March 31, 2022, the FASB issued ASU No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures (Topic 326) (“ASU 2022-02”). ASU 2022-02 eliminates the recognition and measurement guidance for troubled debt restructurings (“TDRs”) and, instead, requires that an entity evaluate (consistent with the accounting for other loan modifications) whether the modification represents a new loan or a continuation of an existing loan. The ASU also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. The ASU became effective for the Company beginning January 1, 2023 and is generally to be applied prospectively. ASU 2022-02 did not have an impact on the Company’s condensed consolidated financial statements for the six months ended June 30, 2023.

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. The amendments in this update clarify the guidance in Topic 820 when measuring the fair value of an equity security subject to contractual sale restrictions and introduce new disclosure requirements related to such equity securities. The amendments are effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its condensed consolidated financial statements.

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 CMBS by utilizing broker-dealer quotations, reported trades or valuation estimates from pricing models to determine the reported price. Pricing models for CMBS 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, 2023, the Company concluded that $440.2 million of its CMBS fell under Level 2 and $163.5 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, 2023, the estimated fair value of the Company’s debt was $3.90 billion, compared to a carrying value of $4.01 billion. The estimated fair value of the Company’s debt as of December 31, 2022 was $4.32 billion, compared to a carrying value of $4.44 billion.

Derivative instruments — The Company’s derivative instruments are comprised of 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, 2023 and December 31, 2022, 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 corporate 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, 2023, $551.3 million and $132.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of December 31, 2022, $494.4 million and $168.0 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively. As of June 30, 2023, the estimated fair value of the Company’s loans held-for-investment and related receivables, net was $4.15 billion, compared to its carrying value of $4.10 billion. As of December 31, 2022, the

estimated fair value of the Company’s loans held-for-investment and related receivables, net was $3.98 billion, compared to its carrying value of $4.00 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

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

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2023

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 that are required to be measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022 (in thousands):

	Balance as of June 30, 2023		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	$	603,724	$	—	$	440,240	$	163,484
Equity security	43,603		43,603		—		—
Interest rate caps	641		—		641		—
Total financial assets	$	647,968	$	43,603	$	440,881	$	163,484

	Balance as of December 31, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	$	538,142	$	—	$	348,241	$	189,901
Equity security	38,249		38,249		—		—
Interest rate caps	5,040		—		5,040		—
Total financial assets	$	581,431	$	38,249	$	353,281	$	189,901

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, 2023 (in thousands):

	Level 3
Beginning Balance, January 1, 2023	$	189,901
Total gains and losses:
Unrealized loss included in other comprehensive loss, net	(19,552)
Current expected credit losses (1)	(16,432)
Purchases and payments received:
Discounts, net	8,996
Capitalized interest income	571
Ending Balance, June 30, 2023	$	163,484

____________________________________

(1)    Does not include $7.1 million of unrealized losses recognized prior to January 1, 2023 that were reclassified from other comprehensive income on the condensed consolidated statements of comprehensive income to increase in provision for credit losses on the condensed consolidated statements of operations during the six months ended June 30, 2023.

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, 2023 and 2022:

Six Months Ended June 30,
2023		2022
Discount Rate	Terminal Capitalization Rate	Discount Rate	Terminal Capitalization Rate
9.7%	7.0% – 9.2%	8.0% – 9.7%	7.5% – 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, 2023 and 2022 (in thousands):

	Six Months Ended June 30,
	2023		2022
Asset class impaired:
Land	$	1,144	$	1,913
Buildings, fixtures and improvements	3,652		8,453
Intangible lease assets	18		980
Intangible lease liabilities	—		(4)
Condominium developments	—		7,945
Total impairment loss	$	4,814	$	19,287

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INTANGIBLE LEASE ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023 and December 31, 2022 (in thousands, except weighted average life remaining):

	June 30, 2023		December 31, 2022
Intangible lease assets:
In-place leases and other intangibles, net of accumulated amortization of $46,351 and $86,881, respectively (with a weighted average life remaining of 11.6 years and 11.1 years, respectively)
	$	105,816	$	174,954
Acquired above-market leases, net of accumulated amortization of $2,891 and $4,210, respectively (with a weighted average life remaining of 11.5 years and 12.9 years, respectively)
	4,144		10,639
Total intangible lease assets, net	$	109,960	$	185,593
Intangible lease liabilities:
Acquired below-market leases, net of accumulated amortization of $4,534 and $5,575, respectively (with a weighted average life remaining of 12.6 years and 12.4 years, respectively)
	$	13,956	$	19,054

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, 2023 and 2022 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
In-place lease and other intangible amortization	$	3,014	$	6,326	$	8,096	$	13,112
Above-market lease amortization	$	118	$	305	$	352	$	621
Below-market lease amortization	$	313	$	484	$	746	$	1,063

Schedule of Finite-lived Intangible Assets, Future Amortization Expense

As of June 30, 2023, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands):

	Amortization
	In-Place Leases and Other Intangibles		Above-Market Leases		Below-Market Leases
Remainder of 2023	$	5,911	$	230	$	602
2024	11,441		424		1,126
2025	11,047		424		1,120
2026	9,843		379		1,120
2027	9,131		356		1,120
Thereafter	58,443		2,331		8,868
Total	$	105,816	$	4,144	$	13,956

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REAL ESTATE-RELATED SECURITIES (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023 (in thousands):

	Real Estate-Related Securities
	Amortized Cost Basis		Unrealized Loss		CECL		Fair Value
CMBS	$	694,006	$	(66,830)	$	(23,452)	$	603,724
Equity security	53,388		(9,785)		—		43,603
Total real estate-related securities	$	747,394	$	(76,615)	$	(23,452)	$	647,327

The following table provides the activity for the real estate-related securities during the six months ended June 30, 2023 (in thousands):

	Amortized Cost Basis		Unrealized Loss		CECL		Fair Value
Real estate-related securities as of January 1, 2023	$	640,037	$	(63,646)	$	—	$	576,391
Face value of real estate-related securities acquired	146,037		—		—		146,037
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs	(2,879)		—		—		(2,879)
Amortization of discount on real estate-related securities	17,219		—		—		17,219
Capitalized interest income on real estate-related securities	571		—		—		571
Principal payments received on real estate-related securities (1)	(53,591)		—		—		(53,591)
Unrealized loss on real estate-related securities, net	—		(12,969)		—		(12,969)
Current expected credit losses	—		—		(23,452)		(23,452)
Real estate-related securities as of June 30, 2023	$	747,394	$	(76,615)	$	(23,452)	$	647,327

____________________________________

(1)    Includes the repayment of the Company’s position in two different tranches of a CMBS instrument prior to their stated maturity dates.

The scheduled maturities of the Company’s CMBS as of June 30, 2023 are as follows (in thousands):

	CMBS
	Amortized Cost		Estimated Fair Value
Due within one year	$	518,174	$	439,574
Due after one year through five years	133,204		133,091
Due after five years through ten years	—		—
Due after ten years	42,628		31,059
Total	$	694,006	$	603,724

Schedule of Allowance for Financing Receivable

The following table presents the activity in the Company’s current expected credit losses related to its position in one of two different tranches of a CMBS instrument for the six months ended June 30, 2023 (dollar amounts in thousands):

	CMBS
Current expected credit losses as of January 1, 2023	$	—
Provision for credit losses	—
Current expected credit losses as of March 31, 2023	—
Provision for credit losses	23,452
Current expected credit losses as of June 30, 2023	$	23,452

The Company’s loans held-for-investment consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands):

	As of June 30,		As of December 31,
	2023		2022
First mortgage loans (1)	$	3,317,027	$	3,285,193
Total CRE loans held-for-investment and related receivables, net	3,317,027		3,285,193
Liquid corporate senior loans	710,546		701,540
Corporate senior loans	137,948		57,165
Loans held-for-investment and related receivables, net	$	4,165,521	$	4,043,898
Less: Current expected credit losses	$	(67,562)	$	(42,344)
Total loans held-for-investment and related receivables, net	$	4,097,959	$	4,001,554

____________________________________

(1)    As of June 30, 2023, first mortgage loans included $20.2 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, 2023 and December 31, 2022 (dollar amounts in thousands):

	CRE Loans (1) (2)						Liquid Corporate Senior Loans						Corporate Senior Loans
	June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Number of loans	29			29			317			317			11			4
Principal balance	$	3,334,312		$	3,306,411		$	717,600		$	708,254		$	140,320		$	57,918
Net book value	$	3,272,258		$	3,264,841		$	689,714		$	680,345		$	135,987		$	56,368
Weighted-average interest rate	8.5		%	7.6		%	8.9		%	8.0		%	11.7		%	10.5		%
Weighted-average maximum years to maturity	3.2			3.6			4.5			4.7			3.7			4.6
Unfunded loan commitments (3)	$	266,999		$	304,649		$	1,233		$	1,425		$	30,341		$	4,324

____________________________________

(1)As of June 30, 2023, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to 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 corporate senior loan purchases of $18.4 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 Corporate Senior Loans		Corporate Senior Loans		Total Loan Portfolio
Balance, January 1, 2023	$	3,264,841	$	680,345	$	56,368	$	4,001,554
Loan originations and acquisitions	137,524		82,370		82,734		302,628
Sale of loans	—		(25,490)		—		(25,490)
Principal repayments received (1)	(109,623)		(46,645)		(332)		(156,600)
Deferred fees and other items (2)	(2,125)		(2,508)		(1,757)		(6,390)
Accretion and amortization of fees and other items	6,058		1,279		138		7,475
(Provision for) reversal of credit losses (3)	(24,417)		363		(1,164)		(25,218)
Balance, June 30, 2023	$	3,272,258	$	689,714	$	135,987	$	4,097,959

____________________________________

(1)Includes the repayment of a $105.0 million first mortgage loan prior to the maturity date.

(2)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.

(3)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.

The following table presents the activity in the Company’s current expected credit losses related to loans held-for-investment by loan type for the six months ended June 30, 2023 (in thousands):

	First Mortgage Loans		Unfunded First Mortgage Loans (1)		Liquid Corporate Senior Loans		Unfunded or Unsettled Liquid Corporate Senior Loans (1)		Corporate Senior Loans		Unfunded Corporate Senior Loans (1)		Total
Current expected credit losses as of January 1, 2023	$	20,352	$	1,890	$	21,195	$	377	$	797	$	66	$	44,677
Provision for (reversal of) credit losses	1,949		138		(914)		(121)		400		1		1,453
Current expected credit losses as of March 31, 2023	$	22,301	$	2,028	$	20,281	$	256	$	1,197	$	67	$	46,130
Provision for credit losses	22,468		2,140		551		3		764		259		26,185
Current expected credit losses as of June 30, 2023	$	44,769	$	4,168	$	20,832	$	259	$	1,961	$	326	$	72,315

____________________________________

(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on the condensed consolidated balance sheets.

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LOANS HELD-FOR-INVESTMENT (Tables)

6 Months Ended

Jun. 30, 2023

Receivables [Abstract]

Schedule of Allowance for Financing Receivable

The following table presents the activity in the Company’s current expected credit losses related to its position in one of two different tranches of a CMBS instrument for the six months ended June 30, 2023 (dollar amounts in thousands):

	CMBS
Current expected credit losses as of January 1, 2023	$	—
Provision for credit losses	—
Current expected credit losses as of March 31, 2023	—
Provision for credit losses	23,452
Current expected credit losses as of June 30, 2023	$	23,452

The Company’s loans held-for-investment consisted of the following as of June 30, 2023 and December 31, 2022 (in thousands):

	As of June 30,		As of December 31,
	2023		2022
First mortgage loans (1)	$	3,317,027	$	3,285,193
Total CRE loans held-for-investment and related receivables, net	3,317,027		3,285,193
Liquid corporate senior loans	710,546		701,540
Corporate senior loans	137,948		57,165
Loans held-for-investment and related receivables, net	$	4,165,521	$	4,043,898
Less: Current expected credit losses	$	(67,562)	$	(42,344)
Total loans held-for-investment and related receivables, net	$	4,097,959	$	4,001,554

____________________________________

(1)    As of June 30, 2023, first mortgage loans included $20.2 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, 2023 and December 31, 2022 (dollar amounts in thousands):

	CRE Loans (1) (2)						Liquid Corporate Senior Loans						Corporate Senior Loans
	June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022			June 30, 2023			December 31, 2022
Number of loans	29			29			317			317			11			4
Principal balance	$	3,334,312		$	3,306,411		$	717,600		$	708,254		$	140,320		$	57,918
Net book value	$	3,272,258		$	3,264,841		$	689,714		$	680,345		$	135,987		$	56,368
Weighted-average interest rate	8.5		%	7.6		%	8.9		%	8.0		%	11.7		%	10.5		%
Weighted-average maximum years to maturity	3.2			3.6			4.5			4.7			3.7			4.6
Unfunded loan commitments (3)	$	266,999		$	304,649		$	1,233		$	1,425		$	30,341		$	4,324

____________________________________

(1)As of June 30, 2023, 100% of the Company’s CRE loans by principal balance earned a floating rate of interest, primarily indexed to 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 corporate senior loan purchases of $18.4 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 Corporate Senior Loans		Corporate Senior Loans		Total Loan Portfolio
Balance, January 1, 2023	$	3,264,841	$	680,345	$	56,368	$	4,001,554
Loan originations and acquisitions	137,524		82,370		82,734		302,628
Sale of loans	—		(25,490)		—		(25,490)
Principal repayments received (1)	(109,623)		(46,645)		(332)		(156,600)
Deferred fees and other items (2)	(2,125)		(2,508)		(1,757)		(6,390)
Accretion and amortization of fees and other items	6,058		1,279		138		7,475
(Provision for) reversal of credit losses (3)	(24,417)		363		(1,164)		(25,218)
Balance, June 30, 2023	$	3,272,258	$	689,714	$	135,987	$	4,097,959

____________________________________

(1)Includes the repayment of a $105.0 million first mortgage loan prior to the maturity date.

(2)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.

(3)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.

The following table presents the activity in the Company’s current expected credit losses related to loans held-for-investment by loan type for the six months ended June 30, 2023 (in thousands):

	First Mortgage Loans		Unfunded First Mortgage Loans (1)		Liquid Corporate Senior Loans		Unfunded or Unsettled Liquid Corporate Senior Loans (1)		Corporate Senior Loans		Unfunded Corporate Senior Loans (1)		Total
Current expected credit losses as of January 1, 2023	$	20,352	$	1,890	$	21,195	$	377	$	797	$	66	$	44,677
Provision for (reversal of) credit losses	1,949		138		(914)		(121)		400		1		1,453
Current expected credit losses as of March 31, 2023	$	22,301	$	2,028	$	20,281	$	256	$	1,197	$	67	$	46,130
Provision for credit losses	22,468		2,140		551		3		764		259		26,185
Current expected credit losses as of June 30, 2023	$	44,769	$	4,168	$	20,832	$	259	$	1,961	$	326	$	72,315

____________________________________

(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on 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, 2023 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, 2023
	Number of Loans		2023		2022		2021		2020		2019		Total
First mortgage loans by internal risk rating:
1	—		$	—	$	—	$	—	$	—	$	—	$	—
2	1		—		—		—		89,707		—		89,707
3	24		97,955		1,178,664		1,378,990		72,864		49,878		2,778,351
4	4		—		80,566		368,403		—		—		448,969
5	—		—		—		—		—		—		—
Total first mortgage loans	29		97,955		1,259,230		1,747,393		162,571		49,878		3,317,027
Liquid corporate senior loans by internal risk rating:
1	—		—		—		—		—		—		—
2	2		—		—		—		5,272		—		5,272
3	304		45,746		126,649		360,279		148,293		2,312		683,279
4	10		—		3,228		7,989		7,860		—		19,077
5	1	(2)	—		2,918		—		—		—		2,918
Total liquid corporate senior loans	317		45,746		132,795		368,268		161,425		2,312		710,546
Corporate senior loans by internal risk rating:
1	—		—		—		—		—		—		—
2	—		—		—		—		—		—		—
3	11		81,120		56,828		—		—		—		137,948
4	—		—		—		—		—		—		—
5	—		—		—		—		—		—		—
Total corporate senior loans	11		81,120		56,828		—		—		—		137,948
Less: Current expected credit losses													(67,562)
Total loans held-for-investment and related receivables, net	357												$	4,097,959
Weighted Average Risk Rating (3)													3.1

____________________________________

(1)Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.

(2)As of June 30, 2023, one of the Company’s liquid corporate senior loan investments was on nonaccrual status with a carrying value of $2.9 million, which represented less than 1% of the carrying value of the Company’s liquid corporate senior loans portfolio.

(3)Weighted average risk rating calculated based on carrying value at period end.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2023

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 as of June 30, 2023 and December 31, 2022 (dollar amounts in thousands):

		Outstanding Notional					Fair Value of Assets as of
	Balance Sheet	Amount as of		Strike	Effective	Maturity	June 30,		December 31,
	Location	June 30, 2023		Rates	Dates	Dates	2023		2022
Interest Rate Caps	Prepaid expenses, derivative assets and other assets	$	712,000	3.50% (1) to 4.00% (2)	7/15/2021 to 9/13/2022	7/15/2023 to 10/9/2023	$	641	$	5,040

____________________________________

(1)The index used for this derivative instrument is 1-Month London Inter-bank Offered Rate (“LIBOR”).

(2)The index used for this derivative instrument is 1-Month Term SOFR.

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes the debt balances as of June 30, 2023 and December 31, 2022, and the debt activity for the six months ended June 30, 2023 (in thousands):

			During the Six Months Ended June 30, 2023
	Balance as of December 31, 2022		Debt Issuances & Assumptions (1)		Repayments & Modifications (2)			Amortization		Balance as of June 30, 2023
Notes payable – fixed rate debt	$	36,538	$	—	$	(36,538)		$	—	$	—
Notes payable – variable rate debt	465,517		76,112		(29,057)			—		512,572
First lien mortgage loan	121,940		—		(121,940)			—		—
ABS mortgage notes	763,035		—		(3,870)			—		759,165
Credit facilities	738,500		35,000		(328,000)			—		445,500
Repurchase facilities	2,318,381		130,498		(158,942)			—		2,289,937
Total debt	4,443,911		241,610		(678,347)			—		4,007,174
Deferred costs – credit facility (3)	(740)		—		679		(4)	61		—
Deferred costs – fixed rate debt and first lien mortgage loan	(1,109)		—		702		(4)	407		—
Deferred costs – variable rate debt	(5,261)		(42)		1,210		(4)	257		(3,836)
Deferred costs – ABS mortgage notes	(13,968)		(493)		—			1,021		(13,440)
Total debt, net	$	4,422,833	$	241,075	$	(675,756)		$	1,746	$	3,989,898

____________________________________

(1)Includes deferred financing costs incurred during the period.

(2)In connection with the repayment of certain mortgage notes and the termination of the CMFT Credit Facility (defined below), the Company recognized a loss on extinguishment of debt of $4.5 million during the six months ended June 30, 2023, which included approximately $1.0 million in prepayment penalties.

(3)Deferred costs related to the term portion of the CMFT Credit Facility.

(4)In connection with the repayment of certain mortgage notes and the termination of the CMFT Credit Facility, the Company wrote off approximately $2.6 million of unamortized deferred loan costs.

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, 2023 (dollar amounts in thousands):

Repurchase Facility	Date of Agreement	Maturity Date(1)		Maximum Facility Size			Weighted Average Interest Rate		Loans Financed under Repurchase Facility (2)		Amount Financed
Citibank	6/4/2020	8/17/2024		$	400,000		6.9%	(3)	$	470,251	$	336,035
Barclays	9/21/2020	9/22/2025		1,250,000			7.0%	(3)	1,112,474		806,317
Wells Fargo	5/20/2021	8/30/2025		750,000			6.8%	(3)	900,638		696,712
Deutsche Bank	10/8/2021	10/8/2023		300,000			7.4%	(3)	196,960		143,862
J.P. Morgan	6/1/2022	7/31/2023	(4)	—		(4)	6.4%	(5)	548,480		307,011
Total				$	2,700,000				$	3,228,803	$	2,289,937

__________________________________

(1)As of June 30, 2023, the repurchase facilities with Citibank and Wells Fargo each have two one-year extension options remaining, the repurchase facility with Barclays has one one-year extension option remaining and the repurchase facility with Deutsche Bank has four one-year extension options remaining. All repurchase facilities are subject to certain conditions set forth in their respective Repurchase Agreements.

(2)CRE mortgage loan balances financed under the Repurchase Facilities with Citibank, Barclays, Wells Fargo and Deutsche Bank reflect the aggregate outstanding principal balance while the CMBS balance financed under the J.P. Morgan Repurchase Facility reflects fair value.

(3)Advances under the Repurchase Agreements accrue interest at per annum rates based on Term SOFR (as such term is defined in the applicable Repurchase Agreement) or the daily compounded SOFR plus a spread ranging from 1.30% to 2.85% to be determined on a case-by-case basis between Citibank, Barclays, Wells Fargo or Deutsche Bank and the CMFT Lending Subs.

(4)Facilities under the repurchase facility with J.P. Morgan (“J.P. Morgan Repurchase Facility”) carry a rolling term which is reset monthly. Such facilities carry no maximum facility size.

(5)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, which as of June 30, 2023, ranges from 1.05% to 1.45%.

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, 2023 (in thousands):

	Principal Repayments
Remainder of 2023	$	451,518
2024	427,838
2025	1,503,029
2026	—
2027	820,429
Thereafter	804,360
Total	$	4,007,174

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RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS (Tables)

6 Months Ended

Jun. 30, 2023

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,
	2023		2022		2023		2022
Management fees	$	12,859	$	13,351	$	25,438	$	26,698
Expense reimbursements to related parties	$	3,681	$	3,777	$	7,249	$	7,471

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LEASES (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Schedule of Future Minimum Rental Income from Operating Leases

As of June 30, 2023, 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 2023	$	44,620
2024	88,250
2025	88,007
2026	85,242
2027	82,829
Thereafter	635,820
Total	$	1,024,768

Schedule of Components of Lease Income

Rental and other property income during the three and six months ended June 30, 2023 and 2022 consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Fixed rental and other property income (1)	$	23,035	$	47,941	$	60,392	$	112,647
Variable rental and other property income (2)	2,647		5,567		4,071		14,597
Total rental and other property income	$	25,682	$	53,508	$	64,463	$	127,244

__________________________________

(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.

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SEGMENT REPORTING (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Information

The following tables present segment reporting for the three and six months ended June 30, 2023 and 2022 (in thousands):

	Real Estate		Credit		Corporate/Other (1)		Company Total
Three Months Ended June 30, 2023
Rental and other property income	$	25,590	$	—	$	92	$	25,682
Interest income	—		115,038		—		115,038
Total revenues	25,590		115,038		92		140,720
General and administrative	348		1,187		3,386		4,921
Interest expense, net	3,165		56,049		334		59,548
Property operating	1,201		—		1,806		3,007
Real estate tax	890		—		341		1,231
Expense reimbursements to related parties	—		—		3,681		3,681
Management fees	2,641		10,218		—		12,859
Transaction-related	12		—		51		63
Depreciation and amortization	9,319		—		—		9,319
Increase in provision for credit losses	—		49,637		—		49,637
Total expenses	17,576		117,091		9,599		144,266
Other income (expense):
Gain on disposition of real estate and condominium developments, net	24,285		—		2,278		26,563
Gain on investment in unconsolidated entities	—		5,806		—		5,806
Unrealized gain on equity security	—		3,096		—		3,096
Other (expense) income, net	(2,352)		1,166		2,036		850
Loss on extinguishment of debt	(24)		—		(870)		(894)
Segment net income (loss)	$	29,923	$	8,015	$	(6,063)	$	31,875
Total assets as of June 30, 2023	$	1,198,007	$	4,948,370	$	518,229	$	6,664,606

__________________________________

(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, 2023
Rental and other property income	$	64,305	$	—	$	158	$	64,463
Interest income	—		223,121		—		223,121
Total revenues	64,305		223,121		158		287,584
General and administrative	422		1,559		6,238		8,219
Interest expense, net	11,316		110,066		4,400		125,782
Property operating	2,888		—		2,695		5,583
Real estate tax	1,315		—		733		2,048
Expense reimbursements to related parties	—		—		7,249		7,249
Management fees	5,891		19,547		—		25,438
Transaction-related	25		—		51		76
Depreciation and amortization	24,429		—		—		24,429
Real estate impairment	4,814		—		—		4,814
Increase in provision for credit losses	—		51,090		—		51,090
Total expenses	51,100		182,262		21,366		254,728
Other income (expense):
Gain on disposition of real estate and condominium developments, net	43,845		—		2,341		46,186
Gain on investment in unconsolidated entities	—		5,036		—		5,036
Unrealized gain on equity security	—		5,354		—		5,354
Other (expense) income, net	(4,192)		3,007		2,359		1,174
Loss on extinguishment of debt	(1,195)		—		(3,344)		(4,539)
Segment net income (loss)	$	51,663	$	54,256	$	(19,852)	$	86,067
Net income allocated to noncontrolling interest	8		—		—		8
Segment net income (loss) attributable to the Company	$	51,655	$	54,256	$	(19,852)	$	86,059
Total assets as of June 30, 2023	$	1,198,007	$	4,948,370	$	518,229	$	6,664,606

__________________________________

(1)Includes condominium and rental units acquired via foreclosure during the year ended December 31, 2021.

	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
Interest expense, net	10,258		18,784		3,626		32,668
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 expenses	47,750		31,820		20,578		100,148
Other income (expense):
Gain (loss) on disposition of real estate and condominium developments, net	81,181		—		(74)		81,107
Gain on investment in unconsolidated entities	—		1,323		—		1,323
Unrealized loss on equity security	—		(4,064)		—		(4,064)
Other income, net	1,089		1,150		33		2,272
Loss on extinguishment of debt	(2,257)		—		(3,112)		(5,369)
Segment net income (loss)	$	85,668	$	11,573	$	(23,628)	$	73,613
Net loss 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
Interest expense, net	25,341		30,391		6,932		62,664
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 expenses	106,040		54,582		31,626		192,248
Other income (expense):
Gain on disposition of real estate and condominium developments, net	110,446		—		3,235		113,681
Gain on investment in unconsolidated entities	—		1,491		5,172		6,663
Unrealized (loss) gain on equity security	—		(6,433)		23		(6,410)
Other income, net	2,331		1,212		34		3,577
Loss on extinguishment of debt	(12,994)		—		(3,246)		(16,240)
Segment net income (loss)	$	120,787	$	18,135	$	(26,208)	$	112,714
Net loss 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, L.P. (“CIM UII Onshore”).

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ORGANIZATION AND BUSINESS (Details) $ / shares in Units, ft² in Millions		6 Months Ended
	Apr. 04, 2014 shares	Jun. 30, 2023 USD ($) ft² loan property state $ / shares shares	Dec. 31, 2022 USD ($) shares	Dec. 29, 2022 state	Dec. 21, 2022 $ / shares	Dec. 20, 2021 state	Aug. 02, 2016 USD ($)	Jun. 30, 2016 USD ($) shares	Dec. 19, 2013 USD ($)	Jan. 26, 2012 USD ($)
Organization and Business [Line Items]
Number of loans | loan		357
Net book value		$ 4,097,959,000	$ 4,001,554,000
Investments in real estate-related securities		$ 647,327,000	576,391,000
Number of real estate properties | property		195
Rentable commercial space (sqft) | ft²		6.3
Number of states in which entity owns properties | state		37		34		27
Percentage of rentable space leased		99.80%
Real estate investment property, at cost		$ 1,438,557,000	$ 2,448,874,000
Common stock, shares issued (in shares) | shares	297,400,000	437,381,972	437,397,414
Common stock, shares deregistered (shares) | shares	404,000
NAV per share (in usd per share) | $ / shares		$ 6.57
IPO
Organization and Business [Line Items]
Common stock, shares authorized, value (maximum)										$ 2,975,000,000
Common stock, shares issued (in shares) | shares	292,300,000
Distribution Reinvestment Plan
Organization and Business [Line Items]
Common stock, shares issued (in shares) | shares	5,100,000							241,700,000
Common stock shares registered dividend reinvestment plan, value							$ 600,000,000		$ 247,000,000
Remaining unsold common stock								$ 5,300,000
Share price (in usd per share) | $ / shares					$ 6.57
CCPT IV OP
Organization and Business [Line Items]
General partner partnership interest percentage		100.00%
Condominium developments
Organization and Business [Line Items]
Real estate investment property, at cost		$ 112,000,000

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounting Policies [Abstract]
Interest expense, net	$ 59,548	$ 32,668	$ 125,782	$ 62,664
Unrealized loss on equity securities		4,100		6,400
Accrued interest receivable	26,861	11,900	26,861	11,900	$ 22,343
Prepaid expenses, derivative assets and other assets	$ 9,322	$ 7,400	$ 9,322	$ 7,400	$ 26,243
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	Prepaid expenses, derivative assets and other assets	Prepaid expenses, derivative assets and other assets

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Real Estate Assets (Details)	Jun. 30, 2023
Buildings
Real Estate Properties [Line Items]
Property, plant and equipment, useful life	40 years
Site improvements
Real Estate Properties [Line Items]
Property, plant and equipment, useful life	15 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recoverability of Real Estate Assets (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property
Real Estate [Line Items]
Impairment of real estate assets	$ 4.8	$ 11.3
Impairment of real estate, number of properties | property	1	18
Condominium Units
Real Estate [Line Items]
Impairment of real estate assets		$ 7.9

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		20 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Gain on investment in unconsolidated entities				$ 5,036	$ 6,663
Return of investment in unconsolidated entities				4,801	614
Return on investment in unconsolidated entities				$ 5,036	2,022
New Point JV, LLC | N P J V Holdings
Schedule of Equity Method Investments [Line Items]
Noncontrolling interest, ownership percentage by parent	90.00%			90.00%		90.00%
N P J V Holdings
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	50.00%			50.00%		50.00%		50.00%
Additional Equity Method Investments	$ 5,400			$ 5,400		$ 5,400
Return of investment in unconsolidated entities				5,800		45,800
Equity method investments	$ 101,200			$ 101,200		$ 101,200	$ 100,600
New Point JV, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	45.00%			45.00%		45.00%
Gain on investment in unconsolidated entities	$ 5,800	$ 1,300		$ 5,000	1,500
Equity method investments	$ 101,200			101,200		$ 101,200
Return on investment in unconsolidated entities				$ 9,800
C I M U I I Onshore
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage			5.00%
Gain on investment in unconsolidated entities					5,200
Equity method investments			$ 60,700
Return on investment in unconsolidated entities			$ 531		$ 531

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 51,772	$ 57,616	$ 61,022
Cash collateral included in restricted cash	19,600	19,600
Restricted Lockbox Accounts
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	7,400	15,400
Escrow Deposits
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 24,800	$ 22,600

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Real Estate-Related Securities (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Debt Securities, Available-for-sale [Line Items]
Fair Value	$ 647,327		$ 647,327		$ 576,391
Unrealized gain (loss) on equity security	3,100	$ (4,100)	5,354	$ (6,431)
Capitalized interest income on real estate-related securities	287	274	571	546
CMBS
Debt Securities, Available-for-sale [Line Items]
Net investments in debt securities	143,200		$ 143,200
Number of debt instruments | security			24
Fair Value	603,724		$ 603,724
RTL Common Stock
Debt Securities, Available-for-sale [Line Items]
Investments redeemed	43,600		43,600
Dividend income, equity securities operating	$ 1,400	$ 1,400	$ 2,700	$ 1,400

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Held-for-Investments (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2023
Fair Value, Option, Quantitative Disclosures [Line Items]
Capitalized interest	$ 62	$ 62
Liquid corporate senior loans
Fair Value, Option, Quantitative Disclosures [Line Items]
Nonaccrual status with a carrying value			$ 2,900
Percentage carrying value of loan portfolio (less than)			1.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Development Activities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Condominium developments	$ 111,981	$ 130,494
Capitalized interest cost	848		$ 711
Condominium Units
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Condominium developments	$ 5,300		$ 7,200

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reportable Segment (Details)	6 Months Ended
	Jun. 30, 2023 segment
Accounting Policies [Abstract]
Number of reportable segments	2

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FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
CMBS	$ 23,452		$ 0
Impairment of real estate, number of properties | property	1	18
Impairment of real estate assets	$ 4,800	$ 11,300
Condominium Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate assets		7,900
Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
CMBS	603,724		538,142
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, fair value disclosure	4,100,000		4,000,000
Carrying value of impaired real estate	9,600	121,800
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, fair value disclosure	4,150,000		3,980,000
Carrying value of impaired real estate	4,800	$ 110,500
Level 2 | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
CMBS	440,240		348,241
Level 2 | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Company's debt	4,010,000		4,440,000
Level 2 | Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Company's debt	3,900,000		4,320,000
Level 2 | Fair Value | Syndicated Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, fair value disclosure	551,300		494,400
Level 3 | Fair Value, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
CMBS	163,484		189,901
Level 3 | Fair Value | Syndicated Loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loans receivable, fair value disclosure	$ 132,100		$ 168,000

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FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial assets:
CMBS	$ 23,452	$ 0
Fair Value, Recurring
Financial assets:
CMBS	603,724	538,142
Total financial assets	647,968	581,431
Fair Value, Recurring | Interest Rate Caps
Financial assets:
Interest rate caps	641	5,040
Fair Value, Recurring | Equity security
Financial assets:
Equity security	43,603	38,249
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
CMBS	0	0
Total financial assets	43,603	38,249
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest Rate Caps
Financial assets:
Interest rate caps	0	0
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity security
Financial assets:
Equity security	43,603	38,249
Fair Value, Recurring | Significant Other Observable Inputs (Level 2)
Financial assets:
CMBS	440,240	348,241
Total financial assets	440,881	353,281
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Caps
Financial assets:
Interest rate caps	641	5,040
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Equity security
Financial assets:
Equity security	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3)
Financial assets:
CMBS	163,484	189,901
Total financial assets	163,484	189,901
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Interest Rate Caps
Financial assets:
Interest rate caps	0	0
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Equity security
Financial assets:
Equity security	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Level 3 Reconciliation (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Total gains and losses:
Fair Value Recurring Basis Unobservable Input Reconciliation Liability Gain Loss Statement Of Other Comprehensive Income Extensible List Not Disclosed Flag	Unrealized loss included in other comprehensive loss, net
Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 189,901
Total gains and losses:
Unrealized loss included in other comprehensive loss, net	(19,552)
Current expected credit losses	(16,432)
Purchases and payments received:
Discounts, net	8,996
Capitalized interest income	571
Ending balance	163,484
Current expected credit losses	16,432
Level 3 | Other
Total gains and losses:
Current expected credit losses	(7,100)
Purchases and payments received:
Current expected credit losses	$ 7,100

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FAIR VALUE MEASUREMENTS - Discount Rates and Terminal Capitalization Rates (Details)	Jun. 30, 2023	Jun. 30, 2022
Minimum | Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate		8.00%
Minimum | Terminal Capitalization Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	7.00%	7.50%
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%

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FAIR VALUE MEASUREMENTS - Summary of Impairment Charges by Asset Class (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of real estate assets	$ 4,814	$ 19,287
Intangible lease liabilities	0	(4)
Land
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of real estate assets	1,144	1,913
Buildings, fixtures and improvements
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of real estate assets	3,652	8,453
Intangible lease assets
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of real estate assets	18	980
Condominium developments
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of real estate assets	$ 0	$ 7,945

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REAL ESTATE ASSETS - Property Acquisition (Details) - property	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Commercial Real Estate
Real Estate [Line Items]
Number of properties acquired	0	0

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REAL ESTATE ASSETS - Condominium Development Project and Dispositions (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Real Estate [Line Items]
Condominium developments	$ 111,981		$ 130,494
Net proceeds from disposition of real estate assets and condominium developments	925,848	$ 1,205,183
Gain on disposition of real estate, net	46,186	113,681
Condominium Units
Real Estate [Line Items]
Condominium developments	5,300	7,200
Condominium Dispositions
Real Estate [Line Items]
Aggregate gross sales price	29,000	22,500
Net proceeds from disposition of real estate assets and condominium developments	26,100	20,600
Gain on disposition of real estate, net	$ 2,400	$ 3,300

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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. 29, 2022 USD ($) ft² property state	Dec. 20, 2021 USD ($) ft² center state property $ / shares	Jun. 30, 2023 USD ($) property state $ / shares	Jun. 30, 2022 USD ($) property	Dec. 31, 2022 USD ($) $ / shares
Real Estate [Line Items]
Number of real estate property held for sale | property				4
Number of states in which entity owns properties | state	34	27	37
Net proceeds from disposition of real estate assets and condominium developments			$ 925,848	$ 1,205,183
Gain on disposition of real estate, net			46,186	113,681
Common stock, value, issued (in share)			$ 4,374		$ 4,373
Assets held for sale				76,600
Common stock, par value (USD per share) | $ / shares			$ 0.01		$ 0.01
Property Disposition 2023
Real Estate [Line Items]
Area of real estate property | ft²	4.6
Aggregate gross sales price	$ 894,000
Proceeds from sale of productive assets in cash			$ 852,600
Property Disposition 2023 | Properties Sold
Real Estate [Line Items]
Number of properties disposed | property			185
Aggregate gross sales price			$ 909,300
Net proceeds from disposition of real estate assets and condominium developments			899,700
Gain on disposition of real estate, net			43,800
Property Disposition 2023 | AFIN
Real Estate [Line Items]
Common stock, value, issued (in share)			32,300
Property Disposition 2022
Real Estate [Line Items]
Area of real estate property | ft²		9.5
Aggregate gross sales price		$ 1,320,000
Proceeds from sale of productive assets in cash				1,200,000
Earnout income on disposition				74,100
Property Disposition 2022 | Properties Sold
Real Estate [Line Items]
Aggregate gross sales price				$ 1,550,000
Number of properties disposed | property				112
Net proceeds from disposition of real estate assets and condominium developments				$ 1,500,000
Gain on disposition of real estate, net				110,400
Property Disposition 2022 | AFIN
Real Estate [Line Items]
Common stock, value, issued (in share)		$ 53,400		$ 53,400
Common stock, par value (USD per share) | $ / shares		$ 0.01
Purchase And Sale Agreement
Real Estate [Line Items]
Number of real estate property held for sale | property				1
Aggregate gross sales price			$ 861,000	$ 1,300,000
Number of properties disposed | property			178	80
Other receivables				$ 51,000
Single-Tenant Properties | Property Disposition 2023
Real Estate [Line Items]
Number of real estate property held for sale | property	185
Single-Tenant Properties | Property Disposition 2022
Real Estate [Line Items]
Number of real estate property held for sale | property		2
Retail Property | Property Disposition 2023 | Properties Sold
Real Estate [Line Items]
Number of properties disposed | property			183
Retail Property | Property Disposition 2022 | Properties Sold
Real Estate [Line Items]
Number of properties disposed | property				54
Industrial Property | Property Disposition 2023 | Properties Sold
Real Estate [Line Items]
Number of properties disposed | property			2
Industrial Property | Property Disposition 2022 | Properties Sold
Real Estate [Line Items]
Number of properties disposed | property				1
Shopping Center | Property Disposition 2022
Real Estate [Line Items]
Number of properties disposed | center		79
Anchored Shopping Center | Property Disposition 2022
Real Estate [Line Items]
Number of properties disposed | property				55
Office Building | Property Disposition 2022 | Properties Sold
Real Estate [Line Items]
Number of properties disposed | property				2

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REAL ESTATE ASSETS - Impairment (Details) ft² in Thousands, $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($) ft² property	Jun. 30, 2022 USD ($) ft² property
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate, number of properties | property	1	18
Area of real estate property impaired | ft²	45	800
Impairment of real estate assets	$ 4.8	$ 11.3
Condominium Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of real estate assets		7.9
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate asset deemed to be impaired	9.6	121.8
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Real estate asset deemed to be impaired	$ 4.8	$ 110.5

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INTANGIBLE LEASE ASSETS AND LIABILITIES - Components (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Intangible lease assets:
Intangible leased assets	$ 109,960	$ 185,593
Intangible lease liabilities:
Acquired below market liabilities, net	13,956	19,054
Below market lease, accumulated amortization	$ 4,534	$ 5,575
Below market lease, weighted average useful life	12 years 7 months 6 days	12 years 4 months 24 days
In-place leases and other intangibles
Intangible lease assets:
Intangible leased assets	$ 105,816	$ 174,954
Accumulated amortization of intangible lease assets	$ 46,351	$ 86,881
Useful life	11 years 7 months 6 days	11 years 1 month 6 days
Acquired above-market leases
Intangible lease assets:
Intangible leased assets	$ 4,144	$ 10,639
Accumulated amortization of intangible lease assets	$ 2,891	$ 4,210
Useful life	11 years 6 months	12 years 10 months 24 days

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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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Below-market lease amortization	$ 313	$ 484	$ 746	$ 1,063
In-place lease and other intangible amortization
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	3,014	6,326	8,096	13,112
Above-market lease amortization
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 118	$ 305	$ 352	$ 621

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INTANGIBLE LEASE ASSETS AND LIABILITIES - Schedule of Finite-lived Intangible Assets and Liabilities, Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases
Total	$ 109,960	$ 185,593
Amortization, Below-Market Leases
Remainder of 2023	602
2024	1,126
2025	1,120
2026	1,120
2027	1,120
Thereafter	8,868
Total	13,956	19,054
In-Place Leases and Other Intangibles
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases
Remainder of 2023	5,911
2024	11,441
2025	11,047
2026	9,843
2027	9,131
Thereafter	58,443
Total	105,816	174,954
Above-Market Leases
Amortiztaion, In-Place Leases and Other Intangibles, Above-Market Leases
Remainder of 2023	230
2024	424
2025	424
2026	379
2027	356
Thereafter	2,331
Total	$ 4,144	$ 10,639

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INVESTMENT IN UNCONSOLIDATED ENTITIES (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		20 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Return on investment in unconsolidated entities				$ 5,036	$ 2,022
Proceeds from investment distribution, return on investment				5,000
Return of investment in unconsolidated entities				4,801	614
Gain on investment in unconsolidated entities				5,036	6,663
Unfunded Loan Commitment
Schedule of Equity Method Investments [Line Items]
Unfunded loan commitments	$ 298,600			298,600		$ 298,600
N P J V Holdings | Unfunded Loan Commitment
Schedule of Equity Method Investments [Line Items]
Unfunded loan commitments	$ 113,000			$ 113,000		$ 113,000
New Point JV, LLC | N P J V Holdings
Schedule of Equity Method Investments [Line Items]
Noncontrolling interest, ownership percentage by parent	90.00%			90.00%		90.00%
N P J V Holdings
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	50.00%			50.00%		50.00%		50.00%
Equity method investments	$ 101,200			$ 101,200		$ 101,200	$ 100,600
Return of investment in unconsolidated entities				$ 5,800		$ 45,800
New Point JV, LLC
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	45.00%			45.00%		45.00%
Equity method investments	$ 101,200			$ 101,200		$ 101,200
Return on investment in unconsolidated entities				9,800
Gain on investment in unconsolidated entities	$ 5,800	$ 1,300		$ 5,000	1,500
C I M U I I Onshore
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage			5.00%
Equity method investments			$ 60,700
Return on investment in unconsolidated entities			531		531
Investments redeemed			$ 60,700
Gain on investment in unconsolidated entities					$ 5,200

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REAL ESTATE-RELATED SECURITIES - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) position	Mar. 31, 2023 USD ($)	Jun. 30, 2023 USD ($) security position	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
CMBS	$ 23,452		$ 23,452	$ 0
Unrealized loss on real estate-related securities			(13,000)
Current expected credit losses			23,452
Percentage reduction of collateral loan	44.00%
Provision for (reversal of) credit losses			25,218
CMBS
Debt Instrument [Line Items]
CMBS	$ 647,300		$ 647,300
Number of debt instruments | security			24
Net investments in debt securities	143,200		$ 143,200
Unrealized loss on real estate-related securities			$ (18,300)
Current expected credit losses	23,452	$ 0
Provision for (reversal of) credit losses	$ 9,900
Number of positions with unrealized losses | position	15		15
CMBS | Comprehensive Income
Debt Instrument [Line Items]
Unrealized loss from other comprehensive income	$ 13,600
CMBS Two | Minimum
Debt Instrument [Line Items]
Stated interest rate	6.70%		6.70%
CMBS Two | Maximum
Debt Instrument [Line Items]
Stated interest rate	12.50%		12.50%
CMBS One
Debt Instrument [Line Items]
Number of debt instruments | security			1
Stated interest rate	0.00%		0.00%
Equity security
Debt Instrument [Line Items]
Unrealized loss on real estate-related securities			$ 5,400

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REAL ESTATE-RELATED SECURITIES - Summary of Real Estate Securities (Details) $ in Thousands	Jun. 30, 2023 USD ($) tranche	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost Basis	$ 747,394
Unrealized Loss	(76,615)		$ (63,646)
CECL	(23,452)		0
Fair Value	647,327		576,391
CMBS
Debt Securities, Available-for-sale [Line Items]
Amortized Cost Basis	694,006
Unrealized Loss	(66,830)
CECL	(23,452)	$ 0	$ 0
Fair Value	$ 603,724
Number of tranches | tranche	2
Equity security
Debt Securities, Available-for-sale [Line Items]
Amortized Cost Basis	$ 53,388
Unrealized Loss	(9,785)
CECL	0
Fair Value	$ 43,603

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REAL ESTATE-RELATED SECURITIES - Activity for the Real Estate-Related Securities (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Amortized Cost Basis
Beginning balance			$ 640,037
Face value of real estate-related securities acquired			146,037
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs			(2,879)
Amortization of discount on real estate-related securities			17,219
Capitalized interest income on real estate-related securities	$ 287	$ 274	571	$ 546
Principal payments received on real estate-related securities			(53,591)
Ending balance	747,394		747,394
Unrealized Loss
Beginning balance			(63,646)
Unrealized loss on real estate-related securities, net			(12,969)
Ending balance	(76,615)		(76,615)
CECL
Beginning balance			0
Current expected credit losses			(23,452)
Ending balance	(23,452)		(23,452)
Fair Value
Beginning balance			576,391
Face value of real estate-related securities acquired			146,037
Premiums and discounts on purchase of real estate-related securities, net of acquisition costs			(2,879)
Amortization of discount on real estate-related securities			17,219
Capitalized interest income on real estate-related securities	287	$ 274	571	$ 546
Principal payments received on real estate-related securities (1)			(53,591)
Unrealized loss on real estate-related securities, net			(12,969)
Current expected credit losses			(23,452)
Ending balance	$ 647,327		$ 647,327

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REAL ESTATE-RELATED SECURITIES - The Scheduled Maturities of Real Estate-Related Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Amortized Cost
Total	$ 747,394
Estimated Fair Value
Total	647,327	$ 576,391
CMBS
Amortized Cost
Due within one year	518,174
Due after one year through five years	133,204
Due after five years through ten years	0
Due after ten years	42,628
Total	694,006
Estimated Fair Value
Due within one year	439,574
Due after one year through five years	133,091
Due after five years through ten years	0
Due after ten years	31,059
Total	$ 603,724

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REAL ESTATE-RELATED SECURITIES - Schedule of Current Expected Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023
Debt Instrument [Line Items]
Beginning balance		$ 0	$ 0
Current expected credit losses			23,452
Ending balance	$ 23,452		23,452
CMBS
Debt Instrument [Line Items]
Beginning balance	0	0	0
Current expected credit losses	23,452	0
Ending balance	$ 23,452	$ 0	$ 23,452

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LOANS HELD-FOR-INVESTMENT - Schedule of Loans Held for Investment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment and related receivables, net	$ 4,165,521	$ 4,043,898
Less: Current expected credit losses	(67,562)	(42,344)
Total loans held-for-investment and related receivables, net	4,097,959	4,001,554
Contiguous mezzanine loan components	20,200
First Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment and related receivables, net	3,317,027	3,285,193
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	3,317,027	3,285,193
Total loans held-for-investment and related receivables, net	3,272,258	3,264,841
Liquid corporate senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment and related receivables, net	710,546	701,540
Total loans held-for-investment and related receivables, net	689,714	680,345
Corporate senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held-for-investment and related receivables, net	137,948	57,165
Total loans held-for-investment and related receivables, net	$ 135,987	$ 56,368

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LOANS HELD-FOR-INVESTMENT - Statistics (Details) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($) loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	357
Net book value	$ 4,097,959	$ 4,001,554
Loans receivable with variable rate of interest	100.00%
Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded loan commitments	$ 298,600
Unfunded or Unsettled Liquid Senior Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded loan commitments	$ 18,400
CRE Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	29	29
Principal balance	$ 3,334,312	$ 3,306,411
Net book value	$ 3,272,258	$ 3,264,841
Weighted-average interest rate	8.50%	7.60%
Weighted-average maximum years to maturity	3 years 2 months 12 days	3 years 7 months 6 days
CRE Loans | Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded loan commitments	$ 266,999	$ 304,649
Liquid corporate senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	317	317
Principal balance	$ 717,600	$ 708,254
Net book value	$ 689,714	$ 680,345
Weighted-average interest rate	8.90%	8.00%
Weighted-average maximum years to maturity	4 years 6 months	4 years 8 months 12 days
Liquid corporate senior loans | Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded loan commitments	$ 1,233	$ 1,425
Corporate senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loans | loan	11	4
Principal balance	$ 140,320	$ 57,918
Net book value	$ 135,987	$ 56,368
Weighted-average interest rate	11.70%	10.50%
Weighted-average maximum years to maturity	3 years 8 months 12 days	4 years 7 months 6 days
Corporate senior loans | Unfunded Loan Commitment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unfunded loan commitments	$ 30,341	$ 4,324

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LOANS HELD-FOR-INVESTMENT - Activity (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance, Net Book Value	$ 4,001,554
Loan originations and acquisitions	302,628
Sale of loans	(25,490)
Principal repayments received	(156,600)
Deferred fees and other items	(6,390)
Accretion and amortization of fees and other items	7,475
(Provision for) reversal of credit losses	(25,218)
Ending Balance, Net Book Value	4,097,959
CRE Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance, Net Book Value	3,264,841
Loan originations and acquisitions	137,524
Sale of loans	0
Principal repayments received	(109,623)
Deferred fees and other items	(2,125)
Accretion and amortization of fees and other items	6,058
(Provision for) reversal of credit losses	(24,417)
Ending Balance, Net Book Value	3,272,258
Liquid corporate senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance, Net Book Value	680,345
Loan originations and acquisitions	82,370
Sale of loans	(25,490)
Principal repayments received	(46,645)
Deferred fees and other items	(2,508)
Accretion and amortization of fees and other items	1,279
(Provision for) reversal of credit losses	363
Ending Balance, Net Book Value	689,714
Corporate senior loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance, Net Book Value	56,368
Loan originations and acquisitions	82,734
Sale of loans	0
Principal repayments received	(332)
Deferred fees and other items	(1,757)
Accretion and amortization of fees and other items	138
(Provision for) reversal of credit losses	(1,164)
Ending Balance, Net Book Value	135,987
First Mortgage Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal repayments received	$ 105,000

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LOANS HELD-FOR-INVESTMENT - Allowance for Financing Receivable (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value		$ 4,001,554	$ 4,001,554
Provision for (reversal of) credit losses			25,218
Ending Balance, Net Book Value	$ 4,097,959		4,097,959
Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	46,130	44,677	44,677
Provision for (reversal of) credit losses	26,185	1,453
Ending Balance, Net Book Value	72,315	46,130	72,315
First Mortgage Loans | Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	22,301	20,352	20,352
Provision for (reversal of) credit losses	22,468	1,949
Ending Balance, Net Book Value	44,769	22,301	44,769
Unfunded First Mortgage Loans | Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	2,028	1,890	1,890
Provision for (reversal of) credit losses	2,140	138
Ending Balance, Net Book Value	4,168	2,028	4,168
Liquid Corporate Senior Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value		680,345	680,345
Provision for (reversal of) credit losses			(363)
Ending Balance, Net Book Value	689,714		689,714
Liquid Corporate Senior Loans | Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	20,281	21,195	21,195
Provision for (reversal of) credit losses	551	(914)
Ending Balance, Net Book Value	20,832	20,281	20,832
Unfunded or Unsettled Liquid Senior Loans | Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	256	377	377
Provision for (reversal of) credit losses	3	(121)
Ending Balance, Net Book Value	259	256	259
Corporate Senior Loans
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value		56,368	56,368
Provision for (reversal of) credit losses			1,164
Ending Balance, Net Book Value	135,987		135,987
Corporate Senior Loans | Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	1,197	797	797
Provision for (reversal of) credit losses	764	400
Ending Balance, Net Book Value	1,961	1,197	1,961
Unfunded Corporate Senior Loans | Gross Credit Losses
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance, Net Book Value	67	66	66
Provision for (reversal of) credit losses	259	1
Ending Balance, Net Book Value	$ 326	$ 67	$ 326

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LOANS HELD-FOR-INVESTMENT - Schedule of Primary Credit Quality Indicator (Details) $ in Thousands	Jun. 30, 2023 USD ($) loan	Dec. 31, 2022 USD ($)
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	357
Loans held-for-investment and related receivables, net	$ 4,165,521	$ 4,043,898
Less: Current expected credit losses	(67,562)	(42,344)
Total loans held-for-investment and related receivables, net	$ 4,097,959	4,001,554
Weighted Average Risk Rating	3.1
Liquid corporate senior loans
Financing Receivable, Credit Quality Indicator [Line Items]
Number of loans, nonaccrual status | loan	1
Nonaccrual status with a carrying value	$ 2,900
Percentage carrying value of loan portfolio (less than)	1.00%
First Mortgage Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	29
2023	$ 97,955
2022	1,259,230
2021	1,747,393
2020	162,571
2019	49,878
Loans held-for-investment and related receivables, net	$ 3,317,027	3,285,193
First Mortgage Loans | 1
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0
2023	$ 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	1
2023	$ 0
2022	0
2021	0
2020	89,707
2019	0
Loans held-for-investment and related receivables, net	$ 89,707
First Mortgage Loans | 3
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	24
2023	$ 97,955
2022	1,178,664
2021	1,378,990
2020	72,864
2019	49,878
Loans held-for-investment and related receivables, net	$ 2,778,351
First Mortgage Loans | 4
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	4
2023	$ 0
2022	80,566
2021	368,403
2020	0
2019	0
Loans held-for-investment and related receivables, net	$ 448,969
First Mortgage Loans | 5
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0
2023	$ 0
2022	0
2021	0
2020	0
2019	0
Loans held-for-investment and related receivables, net	$ 0
Liquid corporate senior loans
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	317
2023	$ 45,746
2022	132,795
2021	368,268
2020	161,425
2019	2,312
Loans held-for-investment and related receivables, net	710,546	701,540
Total loans held-for-investment and related receivables, net	$ 689,714	680,345
Liquid corporate senior loans | 1
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0
2023	$ 0
2022	0
2021	0
2020	0
2019	0
Loans held-for-investment and related receivables, net	$ 0
Liquid corporate senior loans | 2
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	2
2023	$ 0
2022	0
2021	0
2020	5,272
2019	0
Loans held-for-investment and related receivables, net	$ 5,272
Liquid corporate senior loans | 3
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	304
2023	$ 45,746
2022	126,649
2021	360,279
2020	148,293
2019	2,312
Loans held-for-investment and related receivables, net	$ 683,279
Liquid corporate senior loans | 4
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	10
2023	$ 0
2022	3,228
2021	7,989
2020	7,860
2019	0
Loans held-for-investment and related receivables, net	$ 19,077
Liquid corporate senior loans | 5
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	1
2023	$ 0
2022	2,918
2021	0
2020	0
2019	0
Loans held-for-investment and related receivables, net	$ 2,918
Corporate senior loans
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	11
2023	$ 81,120
2022	56,828
2021	0
2020	0
2019	0
Loans held-for-investment and related receivables, net	137,948	57,165
Total loans held-for-investment and related receivables, net	$ 135,987	$ 56,368
Corporate senior loans | 1
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0
2023	$ 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
2023	$ 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	11
2023	$ 81,120
2022	56,828
2021	0
2020	0
2019	0
Loans held-for-investment and related receivables, net	$ 137,948
Corporate senior loans | 4
Financing Receivable, Credit Quality Indicator [Line Items]
Number of Loans | loan	0
2023	$ 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
2023	$ 0
2022	0
2021	0
2020	0
2019	0
Loans held-for-investment and related receivables, net	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2023 USD ($) agreement	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) agreement	Jun. 30, 2022 USD ($)	Dec. 31, 2022 derivative
Derivatives, Fair Value [Line Items]
Derivative, number of instruments matured (derivative) | derivative					2
Derivative, number of instruments terminated (derivative) | derivative					3
Amount of income (loss) reclassified from other comprehensive income into income as interest expense and other, net | $	$ 0	$ 69	$ 0	$ 62
Interest Rate Caps
Derivatives, Fair Value [Line Items]
Derivative, number of instruments held (derivative) | agreement	2		2
Interest Rate Swap
Derivatives, Fair Value [Line Items]
Total unrealized gain (loss) on interest rate swap | $	$ 0	$ 2,500	$ 0	$ 2,500

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Instruments (Details) - Prepaid expenses, derivative assets and other assets - Interest Rate Caps - Cash Flow Hedging - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Derivative [Line Items]
Outstanding notional amount	$ 712,000
Fair value of assets	$ 641	$ 5,040
Minimum
Derivative [Line Items]
Interest rates	3.50%
Maximum
Derivative [Line Items]
Interest rates	4.00%

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES - Narrative (Details)		3 Months Ended		6 Months Ended
	Jul. 15, 2021 USD ($) entity	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) property	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Jul. 28, 2021 USD ($)	Jan. 31, 2021 USD ($)
Debt Instrument [Line Items]
Repurchase facilities, notes payable and credit facilities, net		$ 3,989,898,000		$ 3,989,898,000		$ 4,422,833,000
Weighted average years to maturity				3 years 2 months 12 days
Debt, weighted average interest rate		6.20%		6.20%
Long-term debt		$ 4,007,174,000		$ 4,007,174,000		4,443,911,000
Loss on extinguishment of debt		$ (894,000)	$ (5,369,000)	(4,539,000)	$ (16,240,000)
Repayments of lines of credit				$ 679,322,000	$ 1,235,322,000
Number of properties used as collateral | property		175		175
Reinvestment Period 1
Debt Instrument [Line Items]
Reinvestment period				2 years
Credit facilities | Affiliate
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 2,700,000,000		$ 2,700,000,000
Amount Financed		2,289,937,000		2,289,937,000
Consolidated net worth, minimum				$ 1,000,000,000
Equity issued by the company, minimum				75.00%
Maximum leverage ratio to total indebtedness to total equity (less than or equal)				80.00%
Minimum interest coverage ratio of EBITDA to interest expense (greater than or equal)				1.40
Credit facilities | Affiliate | Term a
Debt Instrument [Line Items]
Minimum liquidity				$ 50,000,000
Credit facilities | Affiliate | Term b
Debt Instrument [Line Items]
Minimum liquidity				$ 10,000,000
Recourse indebtedness				5.00%
Senior Loan | Affiliate
Debt Instrument [Line Items]
Percent of lending guaranteed (up to)				25.00%
Variable Rate Debt
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		62,000,000		$ 62,000,000
Short-term debt		$ 16,800,000		$ 16,800,000
Citibank | Revolving Credit Facility
Debt Instrument [Line Items]
Debt, weighted average interest rate		7.20%		7.20%
Line of credit facility, maximum borrowing capacity		$ 550,000,000		$ 550,000,000
Amount Financed		$ 445,500,000		$ 445,500,000
Citibank | Credit facilities | Affiliate
Debt Instrument [Line Items]
Debt, weighted average interest rate		6.90%		6.90%
Line of credit facility, maximum borrowing capacity		$ 400,000,000		$ 400,000,000
Amount Financed		336,035,000		$ 336,035,000
J.P. Morgan
Debt Instrument [Line Items]
Reinvestment period				3 years
Minimum required assets under management		$ 1,250,000,000		$ 1,250,000,000
J.P. Morgan | Credit facilities | Affiliate
Debt Instrument [Line Items]
Debt, weighted average interest rate		6.40%		6.40%
Amount Financed		$ 307,011,000		$ 307,011,000
Mortgage Notes Payable
Debt Instrument [Line Items]
Long-term debt		23,700,000		23,700,000				$ 102,600,000
Loss on extinguishment of debt				205,000
Notes payable – fixed rate debt
Debt Instrument [Line Items]
Long-term debt		$ 0		0		36,538,000
Repayments of lines of credit				$ 12,800,000
Variable Rate Debt
Debt Instrument [Line Items]
Debt, weighted average interest rate		7.20%		7.20%
Long-term debt		$ 512,572,000		$ 512,572,000		465,517,000
Variable Rate Debt | Mass Mutual
Debt Instrument [Line Items]
Long-term debt		420,800,000		420,800,000
Variable Rate Debt | Citibank
Debt Instrument [Line Items]
Long-term debt		75,000,000		75,000,000
First lien mortgage loan
Debt Instrument [Line Items]
Long-term debt		$ 0		0		121,940,000
Repayments of lines of credit				121,900,000
Initial Principal Balance	$ 650,000,000
Number of single purpose entities | entity	114
First lien mortgage loan | Realty Income Purchase and Sale Agreement
Debt Instrument [Line Items]
Repayments of lines of credit				$ 105,800,000
ABS mortgage notes
Debt Instrument [Line Items]
Debt, weighted average interest rate		2.80%		2.80%
Long-term debt		$ 759,165,000		$ 759,165,000		763,035,000
Initial Principal Balance							$ 774,000,000
Debt instrument, collateral amount		963,800,000		963,800,000
Credit facilities
Debt Instrument [Line Items]
Long-term debt		$ 445,500,000		$ 445,500,000		$ 738,500,000
Debt instrument, basis spread on variable rate				2.00%
Credit facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate				2.875%
Credit facilities | Reinvestment Period 1 | Minimum
Debt Instrument [Line Items]
Stated interest rate		1.90%		1.90%
Credit facilities | Reinvestment Period 1 | Maximum
Debt Instrument [Line Items]
Stated interest rate		2.75%		2.75%
Credit facilities | Reinvestment Period 2 | Minimum
Debt Instrument [Line Items]
Stated interest rate		2.00%		2.00%
Credit facilities | Reinvestment Period 2 | Maximum
Debt Instrument [Line Items]
Stated interest rate		2.85%		2.85%
Credit facilities | Amortization Period | Minimum
Debt Instrument [Line Items]
Stated interest rate		2.10%		2.10%
Credit facilities | Amortization Period | Maximum
Debt Instrument [Line Items]
Stated interest rate		2.95%		2.95%
Credit facilities | CMFT Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 300,000,000		$ 300,000,000
Credit facilities | CMFT Credit Facility | Term Loan
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		300,000,000		300,000,000
Credit facilities | CMFT Credit Facility | Revolving Loan
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity		$ 500,000,000		500,000,000
Credit facilities | CMFT Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Repayments of lines of credit				$ 240,000,000
Credit facilities | J.P. Morgan
Debt Instrument [Line Items]
Stated interest rate		2.00%		2.00%

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES - Schedule of Debt (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			$ 4,443,911
Total debt, net, Beginning Balance			4,422,833
Debt issuances & assumptions			241,610
Total debt, net, Debt Issuances & Assumptions			241,075
Total debt, Repayments & Modifications			(678,347)
Total debt, net, Repayments & Modifications			(675,756)
Amortization			1,746
Total debt, Ending Balance	$ 4,007,174		4,007,174
Total debt, net, Ending Balance	3,989,898		3,989,898
Loss on extinguishment of debt	(894)	$ (5,369)	(4,539)	$ (16,240)
Prepayment penalties			1,000
Write-off of deferred financing costs			3,564	$ 7,836
Notes payable – fixed rate debt
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			36,538
Debt issuances & assumptions			0
Total debt, Repayments & Modifications			(36,538)
Total debt, Ending Balance	0		0
Variable Rate Debt
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			465,517
Deferred costs, Beginning Balance			(5,261)
Debt issuances & assumptions			76,112
Deferred costs, Debt Issuances & Assumptions			(42)
Total debt, Repayments & Modifications			(29,057)
Deferred costs, Repayments & Modifications			1,210
Deferred costs, Accretion and (Amortization)			257
Total debt, Ending Balance	512,572		512,572
Deferred costs, Ending Balance	(3,836)		(3,836)
First lien mortgage loan
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			121,940
Debt issuances & assumptions			0
Total debt, Repayments & Modifications			(121,940)
Total debt, Ending Balance	0		0
ABS mortgage notes
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			763,035
Deferred costs, Beginning Balance			(13,968)
Debt issuances & assumptions			0
Deferred costs, Debt Issuances & Assumptions			(493)
Total debt, Repayments & Modifications			(3,870)
Deferred costs, Repayments & Modifications			0
Deferred costs, Accretion and (Amortization)			1,021
Total debt, Ending Balance	759,165		759,165
Deferred costs, Ending Balance	(13,440)		(13,440)
Credit facilities
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			738,500
Deferred costs, Beginning Balance			(740)
Debt issuances & assumptions			35,000
Deferred costs, Debt Issuances & Assumptions			0
Total debt, Repayments & Modifications			(328,000)
Deferred costs, Repayments & Modifications			679
Deferred costs, Accretion and (Amortization)			61
Total debt, Ending Balance	445,500		445,500
Deferred costs, Ending Balance	0		0
Repurchase facilities
Short-Term and Long-Term Debt [Roll Forward]
Total debt, Beginning Balance			2,318,381
Debt issuances & assumptions			130,498
Total debt, Repayments & Modifications			(158,942)
Total debt, Ending Balance	2,289,937		2,289,937
Deferred costs – fixed rate debt and first lien mortgage loan
Short-Term and Long-Term Debt [Roll Forward]
Deferred costs, Beginning Balance			(1,109)
Deferred costs, Debt Issuances & Assumptions			0
Deferred costs, Repayments & Modifications			702
Deferred costs, Accretion and (Amortization)			407
Deferred costs, Ending Balance	$ 0		0
Write-off of deferred financing costs			$ 2,600

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES- 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%

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES - Schedule of Repurchase Facilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) option	Dec. 31, 2022 USD ($)
Line of Credit Facility [Line Items]
Weighted Average Interest Rate	6.20%
Loans Financed under Repurchase Facility	$ 4,165,521	$ 4,043,898
Maximum | One-Month LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	2.85%
Minimum | One-Month LIBOR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.30%
Deutsche Bank
Line of Credit Facility [Line Items]
Number of extension options | option	4
Extension period	1 year
J.P. Morgan | Maximum | One-Month Term SOFR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.45%
J.P. Morgan | Minimum | One-Month Term SOFR
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate	1.05%
Citibank, Barclays And Wells Fargo
Line of Credit Facility [Line Items]
Number of extension options | option	2
Extension period	1 year
Citibank, Barclays And Wells Fargo | Minimum
Line of Credit Facility [Line Items]
Number of extension options | option	1
Credit facilities | Affiliate
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 2,700,000
Amount Financed	2,289,937
Credit facilities | Affiliate | Senior Loan
Line of Credit Facility [Line Items]
Loans Financed under Repurchase Facility	3,228,803
Credit facilities | Citibank | Affiliate
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 400,000
Weighted Average Interest Rate	6.90%
Amount Financed	$ 336,035
Credit facilities | Citibank | Affiliate | Senior Loan
Line of Credit Facility [Line Items]
Loans Financed under Repurchase Facility	470,251
Credit facilities | Barclays | Affiliate
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 1,250,000
Weighted Average Interest Rate	7.00%
Amount Financed	$ 806,317
Credit facilities | Barclays | Affiliate | Senior Loan
Line of Credit Facility [Line Items]
Loans Financed under Repurchase Facility	1,112,474
Credit facilities | Wells Fargo | Affiliate
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 750,000
Weighted Average Interest Rate	6.80%
Amount Financed	$ 696,712
Credit facilities | Wells Fargo | Affiliate | Senior Loan
Line of Credit Facility [Line Items]
Loans Financed under Repurchase Facility	900,638
Credit facilities | Deutsche Bank | Affiliate
Line of Credit Facility [Line Items]
Maximum Facility Size	$ 300,000
Weighted Average Interest Rate	7.40%
Amount Financed	$ 143,862
Credit facilities | Deutsche Bank | Affiliate | Senior Loan
Line of Credit Facility [Line Items]
Loans Financed under Repurchase Facility	$ 196,960
Credit facilities | J.P. Morgan | Affiliate
Line of Credit Facility [Line Items]
Weighted Average Interest Rate	6.40%
Amount Financed	$ 307,011
Credit facilities | J.P. Morgan | Affiliate | Senior Loan
Line of Credit Facility [Line Items]
Loans Financed under Repurchase Facility	$ 548,480

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REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Principal Repayments
Remainder of 2023	$ 451,518
2024	427,838
2025	1,503,029
2026	0
2027	820,429
Thereafter	804,360
Total	$ 4,007,174	$ 4,443,911

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	1 Months Ended
	Aug. 11, 2023	Jun. 30, 2023
Subsequent event | Reserves For Settlement Of Loan Acquisitions
Other Commitments [Line Items]
Loans settled	$ 10.5
Unfunded Loan Commitment
Other Commitments [Line Items]
Unfunded loan commitments		$ 298.6
Unfunded Loan Commitment | N P J V Holdings
Other Commitments [Line Items]
Unfunded loan commitments		113.0
Unfunded or Unsettled Liquid Senior Loans
Other Commitments [Line Items]
Unfunded loan commitments		$ 18.4

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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	50.00%

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RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Incentive Compensation (Details) - Advisors - USD ($)		3 Months Ended		6 Months Ended
	Aug. 20, 2019	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Incentive compensation. in excess of product, quarterly percentage	20.00%
Incentive compensation. in excess of product, annualized percentage	7.00%
Incentive compensation fees		$ 0	$ 0	$ 0	$ 0

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RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Management fees	$ 12,859	$ 13,351	$ 25,438	$ 26,698
Expense reimbursements to related parties	3,681	3,777	7,249	7,471
Advisors | Management fees
Related Party Transaction [Line Items]
Management fees	12,859	13,351	25,438	26,698
Advisors | Expense reimbursements to related parties
Related Party Transaction [Line Items]
Expense reimbursements to related parties	$ 3,681	$ 3,777	$ 7,249	$ 7,471

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RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Due to Affiliates (Details) - USD ($) $ in Millions	Jun. 30, 2023	Jun. 30, 2022
Advisors | Acquisition, Disposition and Operating Activities Fees and Expenses
Related Party Transaction [Line Items]
Due to affiliates	$ 14.3	$ 14.4

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RELATED-PARTY TRANSACTIONS AND ARRANGEMENTS - Development Management Agreements and Affiliated Investments (Details) $ in Thousands		1 Months Ended				3 Months Ended		6 Months Ended		12 Months Ended	20 Months Ended
	Jan. 07, 2021 building unit	Aug. 11, 2023 USD ($) loan	Apr. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Oct. 31, 2021 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) loan	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) loan	Jun. 30, 2023 USD ($)	Nov. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)
Related Party Transaction [Line Items]
Management fees						$ 12,859	$ 13,351	$ 25,438	$ 26,698
Payments to acquire finance receivables					$ 119,000
Payments to acquire equity method investments								5,420	43,250
Return of investment in unconsolidated entities								$ 4,801	614
MT-FT JV
Related Party Transaction [Line Items]
Equity method investment, ownership percentage												50.00%
Equity method investments												$ 212,500
N P J V Holdings
Related Party Transaction [Line Items]
Equity method investment, ownership percentage				50.00%		50.00%		50.00%			50.00%
Equity method investments						$ 101,200		$ 101,200		$ 100,600	$ 101,200
Return of investment in unconsolidated entities								$ 5,800			$ 45,800
New Point JV, LLC
Related Party Transaction [Line Items]
Equity method investment, ownership percentage						45.00%		45.00%			45.00%
Equity method investments						$ 101,200		$ 101,200			$ 101,200
Payments to acquire equity method investments											99,500
Preferred units
Related Party Transaction [Line Items]
Related party investments													$ 68,400
Mortgage Loan
Related Party Transaction [Line Items]
Related party investments						203,600		$ 203,600			203,600		$ 138,800
Development Management Agreements
Related Party Transaction [Line Items]
Termination period								15 days
CIM NY Management, LLC | Development Management Agreements
Related Party Transaction [Line Items]
Management fee, percentage	4.00%
Management fees								$ 107	$ 234
First Mortgage Loans
Related Party Transaction [Line Items]
Loans held-for-investment and related receivables, net					$ 130,000
Payments to acquire finance receivables			$ 143,000
Advances to affiliate						123,000		123,000			123,000
Equity method investments			$ 147,000
First Mortgage Loans | Subsequent event
Related Party Transaction [Line Items]
Number of loans | loan		5
First Mortgage Loans | Third-Party, Number Two
Related Party Transaction [Line Items]
Advances to affiliate						145,500		145,500			145,500
First Mortgage Loans | Affiliate
Related Party Transaction [Line Items]
Loans held-for-investment and related receivables, net				$ 155,000
Payments to acquire finance receivables				$ 154,000
First Mortgage Loans | Affiliate | Third-Party, Number One | Maximum
Related Party Transaction [Line Items]
Advances to affiliate						154,000		154,000			154,000
Corporate senior loans | Subsequent event
Related Party Transaction [Line Items]
Net investments in debt securities		$ 9,100
Number of loans | loan		2
Corporate senior loans | Investment in Corporate Senior Loans
Related Party Transaction [Line Items]
Loans held-for-investment and related receivables, net						71,600		71,600		$ 75,900	71,600
Advances to affiliate						130,200		$ 130,200			130,200
Number of loans, co-invested during period | loan								6		5
Corporate senior loans | Investment in Corporate Senior Loans | Subsequent event
Related Party Transaction [Line Items]
Net investments in debt securities		$ 464
Number of loans | loan		1
Corporate senior loans | Investment in Corporate Senior Loans | CIM RACR | Subsequent event
Related Party Transaction [Line Items]
Net investments in debt securities		$ 58
Corporate senior loans | Investment in Corporate Senior Loans | CIM RACR
Related Party Transaction [Line Items]
Loans held-for-investment and related receivables, net						13,600		$ 13,600		$ 14,700	13,600
Corporate senior loans | Upsized Investment in Corporate Senior Loan
Related Party Transaction [Line Items]
Net investments in debt securities						1,700		1,700			1,700
Corporate senior loans | Upsized Investment in Corporate Senior Loan | CIM RACR
Related Party Transaction [Line Items]
Net investments in debt securities						$ 348		$ 348			$ 348
Condominium Units | Foreclosure Of Mezzanine Loans | Consolidated Properties
Related Party Transaction [Line Items]
Number of real estate properties secured through foreclosure | unit	75
Rental Units | Foreclosure Of Mezzanine Loans | Consolidated Properties
Related Party Transaction [Line Items]
Number of real estate properties secured through foreclosure | unit	21
Buildings | Foreclosure Of Mezzanine Loans | Consolidated Properties
Related Party Transaction [Line Items]
Number of real estate properties secured through foreclosure | building	4

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STOCKHOLDERS’ EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 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)			116,000
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
Forfeited in period (shares)			67,000
Unrecognized compensation expense	$ 120		$ 120
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	$ 120	$ 240	$ 157
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)	183,000		183,000
CCPT IV 2022 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)			67,000
CCPT IV 2022 Equity Incentive Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved for issuance (shares)	250,000		250,000

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LEASES - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2023 USD ($) lease	Jun. 30, 2022
Leases [Abstract]
Lessor, weighted average remaining lease term		11 years 1 month 6 days
Number of operating leases | lease		1
Operating ground lease, remaining term	10 years 2 months 12 days	10 years 2 months 12 days
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Deferred rental income and other liabilities	Deferred rental income and other liabilities	Deferred rental income 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	Prepaid expenses, derivative assets and other assets
Lease liability	$ 2,000	$ 2,000
Operating lease, discount rate	4.30%	4.30%
Ground lease, expense	$ 63	$ 125
Ground lease, payments	61	121
Future minimum rental payments, remainder of 2023	125	125
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, 2028	250	250
Future minimum rental payments, thereafter	$ 1,200	$ 1,200

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LEASES - Future Minimum Rental Income (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Future Minimum Rental Income
Remainder of 2023	$ 44,620
2024	88,250
2025	88,007
2026	85,242
2027	82,829
Thereafter	635,820
Total	$ 1,024,768

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LEASES - Schedule of Components of Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Fixed rental and other property income	$ 23,035	$ 47,941	$ 60,392	$ 112,647
Variable rental and other property income	2,647	5,567	4,071	14,597
Total rental and other property income	$ 25,682	$ 53,508	$ 64,463	$ 127,244

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SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Revenues:
Rental and other property income	$ 25,682	$ 53,508	$ 64,463	$ 127,244
Interest income	115,038	44,984	223,121	76,447
Total revenues	140,720	98,492	287,584	203,691
Expenses:
General and administrative	4,921	3,680	8,219	7,155
Interest expense, net	59,548	32,668	125,782	62,664
Property operating	3,007	5,249	5,583	12,976
Real estate tax	1,231	2,024	2,048	8,737
Expense reimbursements to related parties	3,681	3,777	7,249	7,471
Management fees	12,859	13,351	25,438	26,698
Transaction-related	63	446	76	453
Depreciation and amortization	9,319	18,015	24,429	37,156
Real estate impairment	0	15,996	4,814	19,287
Increase in provision for credit losses	49,637	4,942	51,090	9,651
Total expenses	144,266	100,148	254,728	192,248
Other income (expense):
Gain on disposition of real estate and condominium developments, net	26,563	81,107	46,186	113,681
Gain on investment in unconsolidated entities	5,806	1,323	5,036	6,663
Unrealized gain (loss) on equity security	3,096	(4,064)	5,354	(6,410)
Other (expense) income, net	850	2,272	1,174	3,577
Loss on extinguishment of debt	(894)	(5,369)	(4,539)	(16,240)
Net income	31,875	73,613	86,067	112,714
Net income (loss) allocated to noncontrolling interest	0	(72)	8	(63)
Segment net income (loss) attributable to the Company	31,875	73,685	86,059	112,777
Assets	6,664,606	7,030,651	6,664,606	7,030,651	$ 7,132,054
Operating Segments | Real Estate
Revenues:
Rental and other property income	25,590	53,405	64,305	127,044
Interest income	0	0	0	0
Total revenues	25,590	53,405	64,305	127,044
Expenses:
General and administrative	348	130	422	279
Interest expense, net	3,165	10,258	11,316	25,341
Property operating	1,201	4,155	2,888	11,292
Real estate tax	890	1,515	1,315	7,866
Expense reimbursements to related parties	0	0	0	0
Management fees	2,641	5,196	5,891	12,327
Transaction-related	12	430	25	437
Depreciation and amortization	9,319	18,015	24,429	37,156
Real estate impairment		8,051	4,814	11,342
Increase in provision for credit losses	0	0	0	0
Total expenses	17,576	47,750	51,100	106,040
Other income (expense):
Gain on disposition of real estate and condominium developments, net	24,285	81,181	43,845	110,446
Gain on investment in unconsolidated entities	0	0	0	0
Unrealized gain (loss) on equity security	0	0	0	0
Other (expense) income, net	(2,352)	1,089	(4,192)	2,331
Loss on extinguishment of debt	(24)	(2,257)	(1,195)	(12,994)
Net income	29,923	85,668	51,663	120,787
Net income (loss) allocated to noncontrolling interest		(72)	8	(63)
Segment net income (loss) attributable to the Company		85,740	51,655	120,850
Assets	1,198,007	2,399,845	1,198,007	2,399,845
Operating Segments | Credit
Revenues:
Rental and other property income	0	0	0	0
Interest income	115,038	44,984	223,121	76,447
Total revenues	115,038	44,984	223,121	76,447
Expenses:
General and administrative	1,187	(61)	1,559	169
Interest expense, net	56,049	18,784	110,066	30,391
Property operating	0	0	0	0
Real estate tax	0	0	0	0
Expense reimbursements to related parties	0	0	0	0
Management fees	10,218	8,155	19,547	14,371
Transaction-related	0	0	0	0
Depreciation and amortization	0	0	0	0
Real estate impairment		0	0	0
Increase in provision for credit losses	49,637	4,942	51,090	9,651
Total expenses	117,091	31,820	182,262	54,582
Other income (expense):
Gain on disposition of real estate and condominium developments, net	0	0	0	0
Gain on investment in unconsolidated entities	5,806	1,323	5,036	1,491
Unrealized gain (loss) on equity security	3,096	(4,064)	5,354	(6,433)
Other (expense) income, net	1,166	1,150	3,007	1,212
Loss on extinguishment of debt	0	0	0	0
Net income	8,015	11,573	54,256	18,135
Net income (loss) allocated to noncontrolling interest		0	0	0
Segment net income (loss) attributable to the Company		11,573	54,256	18,135
Assets	4,948,370	4,375,338	4,948,370	4,375,338
Corporate/Other | Corporate/Other
Revenues:
Rental and other property income	92	103	158	200
Interest income	0	0	0	0
Total revenues	92	103	158	200
Expenses:
General and administrative	3,386	3,611	6,238	6,707
Interest expense, net	334	3,626	4,400	6,932
Property operating	1,806	1,094	2,695	1,684
Real estate tax	341	509	733	871
Expense reimbursements to related parties	3,681	3,777	7,249	7,471
Management fees	0	0	0	0
Transaction-related	51	16	51	16
Depreciation and amortization	0	0	0	0
Real estate impairment		7,945	0	7,945
Increase in provision for credit losses	0	0	0	0
Total expenses	9,599	20,578	21,366	31,626
Other income (expense):
Gain on disposition of real estate and condominium developments, net	2,278	(74)	2,341	3,235
Gain on investment in unconsolidated entities	0	0	0	5,172
Unrealized gain (loss) on equity security	0	0	0	23
Other (expense) income, net	2,036	33	2,359	34
Loss on extinguishment of debt	(870)	(3,112)	(3,344)	(3,246)
Net income	(6,063)	(23,628)	(19,852)	(26,208)
Net income (loss) allocated to noncontrolling interest		0	0	0
Segment net income (loss) attributable to the Company		(23,628)	(19,852)	(26,208)
Assets	$ 518,229	$ 255,468	$ 518,229	$ 255,468

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SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended				6 Months Ended
	Aug. 11, 2023 USD ($) condominiumUnit loan $ / shares shares	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Subsequent Event [Line Items]
Redemptions of common stock		$ 11,073	$ 10,548	$ 10,044	$ 9,689
Gain on disposition of real estate, net						$ 46,186	$ 113,681
Subsequent event
Subsequent Event [Line Items]
Redemption of common stock (in shares) | shares	1.6
Redemptions of common stock	$ 10,800
Common stock, redemption price per share (USD per share) | $ / shares	$ 6.57
Unfulfilled redemption requests (shares) | shares	24.8
Subsequent event | Liquid corporate senior loans
Subsequent Event [Line Items]
Debt settled	$ 10,500
Loans sold	25,800
Subsequent event | Corporate senior loans
Subsequent Event [Line Items]
Net investments in debt securities	$ 9,100
Number of loans | loan	2
Subsequent event | First Mortgage Loans
Subsequent Event [Line Items]
Number of loans | loan	5
Funded aggregate amount	$ 5,200
Principle payment received	$ 4,900
Subsequent event | Discontinued Operations, Disposed of by Sale
Subsequent Event [Line Items]
Number of properties disposed | condominiumUnit	1
Aggregate gross sales price	$ 1,500
Proceeds from sale of assets	1,400
Gain on disposition of real estate, net	$ 459