James Sprow | Blue Vault |
On December 29, 2022, CIM Real Estate Finance Trust, Inc. (CIMREFT) entered into an Agreement of Purchase and Sale with Realty Income Corporation (NYSE: O) to sell 185 single-tenant net lease properties, for approximately $894 million in total consideration at closing. The consideration will be paid in cash, and the Company anticipates closing the transaction during the first quarter of 2023.
The material terms of the Purchase and Sale Agreement include a deposit from the Purchaser of $20 million due within three business days after the Effective Date, which shall be non-refundable to the Purchaser (except as otherwise provided in the Purchase and Sale Agreement) after the expiration of the due diligence period ending on February 17, 2023.
Following the final closing of the transaction, the Company’s remaining net lease portfolio is expected to consist of 199 properties encompassing approximately 6.4 million gross rentable square feet of commercial space. Those assets are 99.7% leased with a weighted average lease term of 11.5 years. The remaining net lease portfolio is primarily financed with a long-term, fixed rate asset-backed securitization.
The proceeds from the transaction, net of the repayment of debt and other transaction costs, will be redeployed in accordance with the Company’s investment strategy, with an immediate focus on secured loans and other similar credit investments.
As of September 30, 2022, CIMREFT’s loan portfolio consisted of 346 loans with a net book value of $4.0 billion, and investments in real estate-related securities of $470.1 million.
As of September 30, 2022, the REIT owned 384 properties, which consisted of 367 retail properties, nine office properties, and eight industrial properties, representing 25 industry sectors and comprising 11.0 million rentable square feet of commercial space located in 44 states, with a net book value of $2.2 billion. As of September 30, 2022, CIMREFT owned condominium developments with a net book value of $153.6 million.
The REIT is continuing its strategy as a credit focused REIT, balancing its existing core of necessity commercial real estate assets leased to creditworthy tenants under long-term net leases with a portfolio of commercial mortgage loans and other credit investments. Assuming the successful repositioning of its portfolio and subject to market conditions, it then expects to pursue a listing of its common stock on a national securities exchange.
Source: SEC
