CIM Real Estate Finance Trust Reports $25.2 Million Net Income in Q2 2025

CIM Real Estate Finance Trust, Inc. reported a net income of $25.2 million for the second quarter of 2025, a significant recovery from a net loss of $245.8 million in the same period last year. This translates to earnings of $0.06 per share, compared to a loss of $0.56 per share in the prior year. Total revenues for the quarter were $107.2 million, down from $121.9 million year-over-year, primarily due to a decrease in interest income, which fell to $78.0 million from $98.3 million. Rental and other property income, however, increased to $29.2 million from $23.6 million, reflecting a growing portfolio of leased properties.

In terms of financial position, CIM's total assets decreased to $5.04 billion as of June 30, 2025, from $5.20 billion at the end of 2024. The decline was driven by a reduction in loans held-for-investment, which fell to $3.22 billion from $3.37 billion, alongside a decrease in real estate-related securities. The company’s liabilities also decreased, totaling $3.12 billion, down from $3.26 billion, largely due to repayments of debt. The company’s equity stood at $1.76 billion, slightly down from $1.78 billion at the end of 2024.

Strategically, CIM has been active in managing its real estate portfolio, taking control of two office buildings through deeds-in-lieu of foreclosure, valued at $151 million. The company disposed of four properties and 11 condominium units during the first half of 2025, generating total proceeds of $66 million. The real estate segment's revenues increased by $10 million compared to the previous year, attributed to the addition of new properties. The company also reported a significant reduction in impairment charges, which fell to $7.7 million from $56.9 million in the prior year.

Operationally, CIM's portfolio consisted of 185 properties across 36 states, with a 94.9% occupancy rate. The company’s loan portfolio included 73 loans with a net book value of $3.2 billion. The weighted average interest rate on loans held-for-investment was 7.4%, with 91.1% of these loans earning a floating rate indexed to SOFR. The company’s management continues to monitor tenant performance closely, particularly in light of ongoing economic challenges, including inflation and interest rate fluctuations.

Looking ahead, CIM Real Estate Finance Trust anticipates continued volatility in the market but remains focused on leveraging its diversified portfolio to generate stable returns. The company plans to pursue additional acquisitions and loan originations while managing its debt levels and maintaining compliance with financial covenants. The management expressed confidence in its ability to navigate the current economic landscape and deliver value to its shareholders.