CIM Commercial Trust Corporation Reports 2019 Second Quarter Results
On
Second Quarter 2019 Highlights
-
Annualized rent per occupied square foot1 on a same-store2 basis increased 8.1% to
$48.94 as ofJune 30, 2019 compared to$45.27 as ofJune 30, 2018 ; annualized rent per occupied square foot1 across all properties was$48.94 as ofJune 30, 2019 . -
Our same-store2 office portfolio was 88.2% leased as of
June 30, 2019 compared to 92.9% as ofJune 30, 2018 . - During the second quarter of 2019, we executed 24,115 square feet of leases with terms longer than 12 months, of which 17,821 square feet were recurring leases executed at our same-store2 office portfolio, representing same-store2 cash rent growth per square foot of 6.0%.
-
Net income attributable to common stockholders was
$48,260,000 , or$1.07 per diluted share, for the second quarter of 2019 compared to net loss attributable to common stockholders of$(1,876,000) , or$(0.04) per diluted share, for the second quarter of 2018. - Same-store2 office segment net operating income3 ("NOI") decreased 5.0%, while same-store2 office cash NOI3 decreased 5.5%, for the second quarter of 2019 as compared to the corresponding period in 2018.
-
Funds from operations (“FFO”) attributable to common stockholders4 was
$3,024,000 , or$0.07 per diluted share, for the second quarter of 2019, inclusive of$4,911,000 , or$0.11 per diluted share, in loss on early extinguishment of debt, compared to$11,449,000 , or$0.26 per diluted share, for the second quarter of 2018.
_____________________________
1 |
Annualized rent per occupied square foot represents gross monthly base rent under leases commenced as of the specified periods, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent. Annualized rent for certain office properties includes rent attributable to retail. |
|
2 |
Please see our definition of "same-store properties" on page 12. |
|
3 |
Please see our reconciliations of office, hotel, lending, and total segment NOI to net income attributable to the Company starting on page 13. |
|
4 |
Please see page 9 for a reconciliation of net income (loss) attributable to common stockholders to FFO attributable to common stockholders and a discussion of the benefits and limitations of FFO as a supplemental measure of operating performance. |
Program to Unlock Embedded Value in Our Portfolio and Improve Trading Liquidity of Our Common Stock
As described in a separate release, our Board of Directors declared a special cash dividend of
We have also been informed that approximately 31.9 million of the shares of our common stock held by our principal stockholder (the "Fund”), representing approximately 72.8% of the outstanding shares of our common stock, will be distributed to approximately 19 members of the Fund by the end of
No further property sales will be made under the program to unlock embedded value in our portfolio and improve the trading liquidity of our common stock. Our remaining portfolio, after the sale of two office properties and one development site, all in
Guidance
We are initiating guidance for 2019 NOI and net income (loss) attributable to common stockholders as follows:
2019 Outlook
|
|
Low |
|
High |
||||||
|
|
(Unaudited, estimated and in millions) |
||||||||
Cash NOI from retained properties and lending activities |
|
$ |
|
47.1 |
|
|
$ |
|
48.1 |
|
Non-cash adjustments from retained properties and lending activities |
|
|
4.1 |
|
|
|
4.1 |
|
||
Segment NOI from retained properties and lending activities |
|
|
51.2 |
|
|
|
52.2 |
|
||
Segment NOI from sold properties |
|
|
16.0 |
|
|
|
16.0 |
|
||
Total Segment NOI |
|
|
67.2 |
|
|
|
68.2 |
|
||
Asset management and other fees to related parties and G&A |
|
|
(21.0 |
) |
|
|
(20.5 |
) |
||
Depreciation and amortization, interest expense, non-segment interest and other
|
|
|
(52.2 |
) |
|
|
(52.2 |
) |
||
Gain on sale of real estate, impairment of real estate, loss on early
|
|
|
333.6 |
|
|
|
333.6 |
|
||
Net income attributable to common stockholders |
|
$ |
|
327.6 |
|
|
$ |
|
329.1 |
|
Key 2019 Assumptions
-
No acquisitions or additional dispositions after the sale of two office properties and one development site, all in
Washington, D.C. , onJuly 30, 2019 , occur during the remainder of 2019. - No future transaction costs, offerings or share repurchases have been assumed, except for continued monthly issuances of Series A preferred units.
Financial Highlights
As of
Second Quarter 2019
Net income attributable to common stockholders was
FFO attributable to common stockholders6 was
Year to Date 2019
Net income attributable to common stockholders was
FFO attributable to common stockholders6 was
____________________________
5 |
Please see our reconciliations of office, hotel, lending, and total segment NOI to net income attributable to the Company starting on page 13. |
|
6 |
Please see page 9 for a reconciliation of net income (loss) attributable to common stockholders to FFO attributable to common stockholders and a discussion of the benefits and limitations of FFO as a supplemental measure of operating performance. |
Segment Information
Our reportable segments during the three months ended
Office
Same-Store8
Same-store8 office segment NOI7 decreased 5.0% on a GAAP basis and decreased 5.5% on a cash basis for the three months ended
At
____________________________
7 |
Please see our reconciliations of office, hotel, lending, and total segment NOI to net income attributable to the Company starting on page 13. |
|
8 |
Please see our definition of "same-store properties" on page 12. |
|
9 |
Annualized rent per occupied square foot represents gross monthly base rent under leases commenced as of the specified periods, multiplied by twelve. This amount reflects total cash rent before abatements. Where applicable, annualized rent has been grossed up by adding annualized expense reimbursements to base rent. Annualized rent for certain office properties includes rent attributable to retail. |
Total
Office segment NOI10 decreased to
Hotel
Hotel segment NOI10 was
Lending
Our lending segment primarily consists of our SBA 7(a) lending platform, which is a national lender that primarily originates loans to small businesses in the hospitality industry. Lending segment NOI10 was
Debt and Equity
During the three months ended
On
Dispositions
On
Dividends
On
Further, we declared a quarterly cash dividend of
____________________________
10 |
Please see our reconciliations of office, hotel, lending, and total segment NOI to net income attributable to the Company starting on page 13. |
About CIM Commercial
CIM Commercial is a real estate investment trust that primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements about CIM Commercial's outlook for net income (loss), NOI and derivations thereof. Such forward-looking statements are based on particular assumptions that management of CIM Commercial has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CIM Commercial and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the timing, manner and extent, if any, of the distribution of shares of common stock held by the principal stockholder of CMCT to its members, (ii) the timing, manner and extent, if any, of repurchases of Series L preferred stock by the Company, and (iii) general economic, market and other conditions. For a further list and description of the risks and uncertainties inherent in forward-looking statements, see CIM Commercial's Annual Report on Form 10-K for the fiscal year ended
Forward-looking statements are not guarantees of performance or results and speak only as of the date such statements are made. CIM Commercial undertakes no obligation to publicly update or release any revisions to its forward-looking statements, whether to reflect new information, future events, changes in assumptions or circumstances or otherwise, except as required by law.
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES |
||||||||||
Consolidated Balance Sheets |
||||||||||
(Unaudited and in thousands, except share and per share amounts) |
||||||||||
|
|
June 30, 2019 |
|
December 31, 2018 |
||||||
ASSETS |
|
|
|
|
||||||
Investments in real estate, net |
|
$ |
|
504,302 |
|
|
$ |
|
1,040,937 |
|
Cash and cash equivalents |
|
|
373,665 |
|
|
|
54,931 |
|
||
Restricted cash |
|
|
10,824 |
|
|
|
22,512 |
|
||
Loans receivable, net |
|
|
72,485 |
|
|
|
83,248 |
|
||
Accounts receivable, net |
|
|
4,821 |
|
|
|
6,640 |
|
||
Deferred rent receivable and charges, net |
|
|
33,158 |
|
|
|
84,230 |
|
||
Other intangible assets, net |
|
|
8,252 |
|
|
|
9,531 |
|
||
Other assets |
|
|
10,069 |
|
|
|
18,197 |
|
||
Assets held for sale, net |
|
|
178,927 |
|
|
|
22,175 |
|
||
TOTAL ASSETS |
|
$ |
|
1,196,503 |
|
|
$ |
|
1,342,401 |
|
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY |
|
|
|
|
||||||
LIABILITIES: |
|
|
|
|
||||||
Debt, net |
|
$ |
|
162,337 |
|
|
$ |
|
588,671 |
|
Accounts payable and accrued expenses |
|
|
13,288 |
|
|
|
41,598 |
|
||
Intangible liabilities, net |
|
|
1,938 |
|
|
|
2,872 |
|
||
Due to related parties |
|
|
6,775 |
|
|
|
10,951 |
|
||
Other liabilities |
|
|
9,357 |
|
|
|
16,535 |
|
||
Liabilities associated with assets held for sale, net |
|
|
3,245 |
|
|
|
28,766 |
|
||
Total liabilities |
|
|
196,940 |
|
|
|
689,393 |
|
||
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
||||||
REDEEMABLE PREFERRED STOCK: Series A, $0.001 par value; 36,000,000
|
|
|
33,303 |
|
|
|
35,733 |
|
||
EQUITY: |
|
|
|
|
||||||
Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000
|
|
|
53,327 |
|
|
|
31,866 |
|
||
Series L cumulative redeemable preferred stock, $0.001 par value; 9,000,000
|
|
|
229,251 |
|
|
|
229,251 |
|
||
Common stock, $0.001 par value; 900,000,000 shares authorized; 43,805,741 and
|
|
|
44 |
|
|
|
44 |
|
||
Additional paid-in capital |
|
|
788,655 |
|
|
|
790,354 |
|
||
Accumulated other comprehensive income |
|
— |
|
|
|
1,806 |
|
|||
Distributions in excess of earnings |
|
|
(105,634 |
) |
|
|
(436,883 |
) |
||
Total stockholders' equity |
|
|
965,643 |
|
|
|
616,438 |
|
||
Noncontrolling interests |
|
|
617 |
|
|
|
837 |
|
||
Total equity |
|
|
966,260 |
|
|
|
617,275 |
|
||
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY |
|
$ |
|
1,196,503 |
|
|
$ |
|
1,342,401 |
|
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||||||
(Unaudited and in thousands, except per share amounts) |
||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
||||||||||||
Rental and other property income |
|
$ |
|
22,419 |
|
|
$ |
|
37,825 |
|
|
$ |
|
56,000 |
|
|
$ |
|
72,969 |
|
Hotel income |
|
|
9,549 |
|
|
|
10,160 |
|
|
|
19,353 |
|
|
|
19,849 |
|
||||
Interest and other income |
|
|
4,888 |
|
|
|
3,559 |
|
|
|
8,780 |
|
|
|
7,020 |
|
||||
|
|
|
36,856 |
|
|
|
51,544 |
|
|
|
84,133 |
|
|
|
99,838 |
|
||||
EXPENSES: |
|
|
|
|
|
|
|
|
||||||||||||
Rental and other property operating |
|
|
15,658 |
|
|
|
20,765 |
|
|
|
35,911 |
|
|
|
38,681 |
|
||||
Asset management and other fees to related parties |
|
|
4,288 |
|
|
|
6,143 |
|
|
|
10,174 |
|
|
|
12,354 |
|
||||
Interest |
|
|
2,550 |
|
|
|
6,811 |
|
|
|
6,595 |
|
|
|
13,444 |
|
||||
General and administrative |
|
|
1,621 |
|
|
|
1,915 |
|
|
|
3,409 |
|
|
|
5,291 |
|
||||
Transaction costs |
|
|
216 |
|
|
|
344 |
|
|
|
260 |
|
|
|
344 |
|
||||
Depreciation and amortization |
|
|
7,185 |
|
|
|
13,325 |
|
|
|
16,815 |
|
|
|
26,473 |
|
||||
Loss on early extinguishment of debt |
|
|
4,911 |
|
|
— |
|
|
|
29,982 |
|
|
— |
|
||||||
Impairment of real estate |
|
|
2,800 |
|
|
— |
|
|
|
69,000 |
|
|
— |
|
||||||
|
|
|
39,229 |
|
|
|
49,303 |
|
|
|
172,146 |
|
|
|
96,587 |
|
||||
Gain on sale of real estate |
|
|
55,221 |
|
|
— |
|
|
|
432,802 |
|
|
— |
|
||||||
INCOME BEFORE PROVISION FOR INCOME TAXES |
|
|
52,848 |
|
|
|
2,241 |
|
|
|
344,789 |
|
|
|
3,251 |
|
||||
Provision for income taxes |
|
|
281 |
|
|
|
292 |
|
|
|
599 |
|
|
|
680 |
|
||||
NET INCOME |
|
|
52,567 |
|
|
|
1,949 |
|
|
|
344,190 |
|
|
|
2,571 |
|
||||
Net (income) loss attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
(12 |
) |
|
|
173 |
|
|
|
(16 |
) |
||||
NET INCOME ATTRIBUTABLE TO THE COMPANY |
|
|
52,566 |
|
|
|
1,937 |
|
|
|
344,363 |
|
|
|
2,555 |
|
||||
Redeemable preferred stock dividends declared or
|
|
|
(4,302 |
) |
|
|
(3,814 |
) |
|
|
(8,464 |
) |
|
|
(7,459 |
) |
||||
Redeemable preferred stock redemptions |
|
|
(4 |
) |
|
|
1 |
|
|
|
(8 |
) |
|
|
2 |
|
||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
|
|
$ |
|
48,260 |
|
|
$ |
|
(1,876 |
) |
|
$ |
|
335,891 |
|
|
$ |
|
(4,902 |
) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
$ |
|
1.10 |
|
|
$ |
|
(0.04 |
) |
|
$ |
|
7.67 |
|
|
$ |
|
(0.11 |
) |
Diluted |
|
$ |
|
1.07 |
|
|
$ |
|
(0.04 |
) |
|
$ |
|
7.36 |
|
|
$ |
|
(0.11 |
) |
WEIGHTED AVERAGE SHARES OF COMMON
|
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
|
43,791 |
|
|
|
43,791 |
|
|
|
43,793 |
|
|
|
43,788 |
|
||||
Diluted |
|
|
45,853 |
|
|
|
43,791 |
|
|
|
45,804 |
|
|
|
43,788 |
|
||||
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES
Funds from Operations
(Unaudited and in thousands, except per share amounts)
We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO represents net income (loss) attributable to common stockholders, computed in accordance with generally accepted accounting principles ("GAAP"), which reflects the deduction of redeemable preferred stock dividends accumulated, excluding gains (or losses) from sales of real estate, impairment of real estate, and real estate depreciation and amortization. We calculate FFO in accordance with the standards established by the
Like any metric, FFO should not be used as the only measure of our performance because it excludes depreciation and amortization and captures neither the changes in the value of our real estate properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate FFO in accordance with the standards established by the NAREIT; accordingly, our FFO may not be comparable to the FFOs of other REITs. Therefore, FFO should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a supplement to or substitute measure for cash flows from operating activities computed in accordance with GAAP. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends.
The following table sets forth a reconciliation of net income (loss) attributable to common stockholders to FFO attributable to common stockholders for the three and six months ended
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||||
Numerator: |
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) attributable to common stockholders |
|
$ |
|
48,260 |
|
|
$ |
|
(1,876 |
) |
|
$ |
|
335,891 |
|
|
$ |
|
(4,902 |
) |
||
Depreciation and amortization |
|
|
7,185 |
|
|
|
13,325 |
|
|
|
16,815 |
|
|
|
26,473 |
|
||||||
Impairment of real estate |
|
|
2,800 |
|
|
— |
|
|
|
69,000 |
|
|
— |
|
||||||||
Gain on sale of depreciable assets11 |
|
|
(55,221 |
) |
|
— |
|
|
|
(432,802 |
) |
|
— |
|
||||||||
FFO attributable to common stockholders |
|
$ |
|
3,024 |
|
|
$ |
|
11,449 |
|
|
$ |
|
(11,096 |
) |
|
$ |
|
21,571 |
|
||
Redeemable preferred stock dividends declared on dilutive
|
|
— |
|
|
|
71 |
|
|
|
(1 |
) |
|
|
102 |
|
|||||||
Diluted FFO attributable to common stockholders |
|
$ |
|
3,024 |
|
|
$ |
|
11,520 |
|
|
$ |
|
(11,097 |
) |
|
$ |
|
21,673 |
|
||
Denominator: |
|
|
|
|
|
|
|
|
||||||||||||||
Basic weighted average shares of Common Stock outstanding |
|
|
43,791 |
|
|
|
43,791 |
|
|
|
43,793 |
|
|
|
43,788 |
|
||||||
Effect of dilutive securities—contingently issuable shares12 |
|
|
8 |
|
|
|
305 |
|
|
|
4 |
|
|
|
228 |
|
||||||
Diluted weighted average shares and common stock
|
|
|
43,799 |
|
|
|
44,096 |
|
|
|
43,797 |
|
|
|
44,016 |
|
||||||
FFO attributable to common stockholders per share: |
|
|
|
|
|
|
|
|
||||||||||||||
Basic |
|
$ |
|
0.07 |
|
|
$ |
|
0.26 |
|
|
$ |
|
(0.25 |
) |
|
$ |
|
0.49 |
|
||
Diluted |
|
$ |
|
0.07 |
|
|
$ |
|
0.26 |
|
|
$ |
|
(0.25 |
) |
|
$ |
|
0.49 |
|
____________________________
11 |
In connection with the sale of certain properties during the three and six months ended June 30, 2019, we recognized $4,911,000 and $29,982,000, respectively, or $0.11 and $0.68 per diluted share of common stock, respectively, in loss on early extinguishment of debt primarily related to the legal defeasance and prepayment of mortgage loans collateralized by such properties. Such loss on early extinguishment of debt is not included in the adjustment for the gain on sale of depreciable assets presented in the table above. |
|
12 |
For the three and six months ended June 30, 2019 and 2018, the effect of certain shares of redeemable preferred stock were excluded from the computation of diluted FFO attributable to common stockholders and the diluted weighted average shares and common stock equivalents outstanding as such inclusion would be anti-dilutive. |
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES
Earnings Per Share
(Unaudited and in thousands, except per share amounts)
Earnings per share ("EPS") for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS for the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding.
The following table reconciles the numerator and denominator used in computing our basic and diluted per-share amounts for net income (loss) attributable to common stockholders for the three and six months ended
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||
Numerator: |
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to common stockholders |
|
$ |
|
48,260 |
|
|
$ |
|
(1,876 |
) |
|
$ |
|
335,891 |
|
|
$ |
|
(4,902 |
) |
Redeemable preferred stock dividends declared on dilutive shares |
|
|
659 |
|
|
— |
|
|
|
1,151 |
|
|
— |
|
||||||
Diluted net income (loss) attributable to common stockholders |
|
$ |
|
48,919 |
|
|
$ |
|
(1,876 |
) |
|
$ |
|
337,042 |
|
|
$ |
|
(4,902 |
) |
Denominator: |
|
|
|
|
|
|
|
|
||||||||||||
Basic weighted average shares of Common Stock outstanding |
|
|
43,791 |
|
|
|
43,791 |
|
|
|
43,793 |
|
|
|
43,788 |
|
||||
Effect of dilutive securities—contingently issuable shares |
|
|
2,062 |
|
|
— |
|
|
|
2,011 |
|
|
— |
|
||||||
Diluted weighted average shares and common stock equivalents outstanding |
|
|
45,853 |
|
|
|
43,791 |
|
|
|
45,804 |
|
|
|
43,788 |
|
||||
Net income (loss) attributable to common stockholders per share: |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
$ |
|
1.10 |
|
|
$ |
|
(0.04 |
) |
|
$ |
|
7.67 |
|
|
$ |
|
(0.11 |
) |
Diluted |
|
$ |
|
1.07 |
|
|
$ |
|
(0.04 |
) |
|
$ |
|
7.36 |
|
|
$ |
|
(0.11 |
) |
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES
Reconciliation of Net Operating Income
(Unaudited and in thousands)
We internally evaluate the operating performance and financial results of our real estate segments based on segment NOI, which is defined as rental and other property income and expense reimbursements less property related expenses and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision for income taxes. For our lending segment, we define segment NOI as interest income net of interest expense and general overhead expenses. We also evaluate the operating performance and financial results of our operating segments using cash basis NOI, or "cash NOI". We define cash NOI as segment NOI adjusted to exclude the effect of the straight lining of rents, acquired above/below market lease amortization and other adjustments required by GAAP.
Segment NOI and cash NOI are not measures of operating results or cash flows from operating activities as measured by GAAP and should not be considered alternatives to income from continuing operations, or to cash flows as a measure of liquidity, or as an indication of our performance or of our ability to pay dividends. Companies may not calculate segment NOI or cash NOI in the same manner. We consider segment NOI and cash NOI to be useful performance measures to investors and management because, when compared across periods, they reflect the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. Additionally, we believe that cash NOI is helpful to investors because it eliminates straight line rent and other non-cash adjustments to revenue and expenses.
To facilitate a comparison of our segments and portfolio between reporting periods, we calculate comparable amounts for a subset of our segments and portfolio referred to as our “same-store properties.” Our same-store properties are ones which we have owned and operated in a consistent manner and reported in our consolidated results during the entire span of the periods being reported. We excluded from our same-store property set this quarter any properties (i) acquired on or after
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||||||||||
Reconciliation of Net Operating Income (Continued) |
||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||
Below is a reconciliation of cash NOI to segment NOI and net income for the three months ended June 30, 2019 and 2018. |
||||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2019 |
||||||||||||||||||||||||||||
|
|
Same-
|
|
Non-
|
|
Total
|
|
Hotel |
|
Lending |
|
Total |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash net operating income excluding lease termination income |
|
$ |
|
12,116 |
|
|
$ |
|
19 |
|
|
$ |
|
12,135 |
|
|
$ |
|
3,516 |
|
|
$ |
|
1,555 |
|
|
$ |
|
17,206 |
|
Cash lease termination income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||
Cash net operating income |
|
|
12,116 |
|
|
|
19 |
|
|
|
12,135 |
|
|
|
3,516 |
|
|
|
1,555 |
|
|
|
17,206 |
|
||||||
Deferred rent and amortization of intangible assets, liabilities, and lease inducements |
|
|
606 |
|
|
|
194 |
|
|
|
800 |
|
|
|
6 |
|
|
— |
|
|
|
806 |
|
|||||||
Straight line lease termination income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||
Segment net operating income |
|
|
12,722 |
|
|
|
213 |
|
|
|
12,935 |
|
|
|
3,522 |
|
|
|
1,555 |
|
|
|
18,012 |
|
||||||
Interest and other income |
|
|
|
|
|
|
|
|
|
|
|
|
1,499 |
|
||||||||||||||||
Asset management and other fees to related parties |
|
|
|
|
|
|
|
|
|
|
|
|
(3,737 |
) |
||||||||||||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
(2,014 |
) |
||||||||||||||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
(1,021 |
) |
||||||||||||||||
Transaction costs |
|
|
|
|
|
|
|
|
|
|
|
|
(216 |
) |
||||||||||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
(7,185 |
) |
||||||||||||||||
Loss on early extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
|
(4,911 |
) |
||||||||||||||||
Impairment of real estate |
|
|
|
|
|
|
|
|
|
|
|
|
(2,800 |
) |
||||||||||||||||
Gain on sale of real estate |
|
|
|
|
|
|
|
|
|
|
|
|
55,221 |
|
||||||||||||||||
Income before provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
52,848 |
|
||||||||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
(281 |
) |
||||||||||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
52,567 |
|
||||||||||||||||
Net income attributable to noncontrolling
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
||||||||||||||||
Net income attributable to the Company |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
52,566 |
|
|||||||||||||||
CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||||||||||
Reconciliation of Net Operating Income (Continued) |
||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||
|
|
Three Months Ended June 30, 2018 |
||||||||||||||||||||||||||||
|
|
Same-
|
|
Non-
|
|
Total
|
|
Hotel |
|
Lending |
|
Total |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Cash net operating income excluding lease
|
|
$ |
|
12,816 |
|
|
$ |
|
9,615 |
|
|
$ |
|
22,431 |
|
|
$ |
|
4,103 |
|
|
$ |
|
1,372 |
|
|
$ |
|
27,906 |
|
Cash lease termination income |
|
|
10 |
|
|
— |
|
|
|
10 |
|
|
|
10 |
|
|
— |
|
|
|
20 |
|
||||||||
Cash net operating income |
|
|
12,826 |
|
|
|
9,615 |
|
|
|
22,441 |
|
|
|
4,113 |
|
|
|
1,372 |
|
|
|
27,926 |
|
||||||
Deferred rent and amortization of intangible
|
|
|
561 |
|
|
|
861 |
|
|
|
1,422 |
|
|
|
(3 |
) |
|
— |
|
|
|
1,419 |
|
|||||||
Straight line rent, below-market ground lease and
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
||||||||||
Straight line lease termination income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
||||||||||||
Segment net operating income |
|
|
13,387 |
|
|
|
10,476 |
|
|
|
23,863 |
|
|
|
4,110 |
|
|
|
1,379 |
|
|
|
29,352 |
|
||||||
Asset management and other fees to related
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,504 |
) |
||||||||||||||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
(6,511 |
) |
||||||||||||||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
(1,427 |
) |
||||||||||||||||
Transaction costs |
|
|
|
|
|
|
|
|
|
|
|
|
(344 |
) |
||||||||||||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
(13,325 |
) |
||||||||||||||||
Income before provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
2,241 |
|
||||||||||||||||
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
(292 |
) |
||||||||||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
1,949 |
|
||||||||||||||||
Net income attributable to noncontrolling
|
|
|
|
|
|
|
|
|
|
|
|
|
(12 |
) |
||||||||||||||||
Net income attributable to the Company |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
1,937 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190808005945/en/
Source:
For CIM Commercial Trust Corporation
Media Relations:
Bill Mendel, 212-397-1030
bill@mendelcommunications.com
or
Shareholder Relations:
Steve Altebrando, 646-652-8473
shareholders@cimcommercial.com