What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-08-13 compared with 2025-05-14 · 485 added, 320 removed, 1204 unchanged (40% of the section changed)

3 unchanged sentences

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Real estate assets:

7 unchanged sentences

Investment in unconsolidated entities 165,513 181,409

Real estate-related securities and other, at fair value, net of credit loss allowances of $ 182,328 and $ 110,062 as of March 31, 2025 and December 31, 2024, respectively

Real estate-related securities and other, at fair value, net of credit loss allowances of $ 183,287 and $ 110,062 as of June 30, 2025 and December 31, 2024, respectively

295,155 345,828

22 unchanged sentences

Common stock, $ 0.01 par value per share;

490,000,000 shares authorized, 436,894,246 and 437,313,001 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

490,000,000 shares authorized, 436,775,501 and 437,313,001 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

Capital in excess of par value 3,535,314 3,533,329

9 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Rental and other property income $ 29,179 $ 23,562 $ 57,987 $ 48,136

16 unchanged sentences

Gain on investment in unconsolidated entities 2,911 2,742 3,922 5,267

Unrealized gain (loss) on equity securities 3,300 ( 11,413 )

Unrealized (loss) gain on equity securities ( 2,110 ) ( 4,229 ) 1,190 ( 15,642 )

Other income, net 1,722 3,463 3,331 7,012

1 unchanged sentence

6,567 4,444 14,039 ( 113 )

Net loss $ ( 32,874 ) $ ( 38,542 )

Net income (loss) $ 25,215 $ ( 245,801 ) $ ( 7,659 ) $ ( 284,343 )

Net income allocated to non-controlling interest 23 — 32 —

Net loss attributable to the Company $ ( 32,883 ) $ ( 38,542 )

Net income (loss) attributable to the Company $ 25,192 $ ( 245,801 ) $ ( 7,691 ) $ ( 284,343 )

Weighted average number of common shares outstanding:

Basic and diluted 436,703,345 437,183,656 436,927,301 437,224,227

Net loss per common share:

Net income (loss) per common share:

Basic and diluted $ 0.06 $ ( 0.56 ) $ ( 0.02 ) $ ( 0.65 )

3 unchanged sentences

(in thousands) (Unaudited)

Three Months Ended March 31,

Net loss $ ( 32,874 ) $ ( 38,542 )

Other comprehensive income

Unrealized gain on CMBS 982 4,955

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income (loss) $ 25,215 $ ( 245,801 ) $ ( 7,659 ) $ ( 284,343 )

Other comprehensive (loss) income

Unrealized loss on CMBS ( 1,825 ) ( 11,471 ) ( 843 ) ( 6,516 )

Unrealized loss on CLO subordinated note ( 1,233 ) — ( 1,966 ) —

1 unchanged sentence

Amount of loss reclassified from other comprehensive income into income as an increase in provision for credit losses — — 71,022 —

Total other comprehensive income 71,681 4,955

Total other comprehensive (loss) income ( 3,058 ) ( 11,471 ) 68,623 ( 6,516 )

Comprehensive income (loss) 22,157 ( 257,272 ) 60,964 ( 290,859 )

6 unchanged sentences

Common Stock Capital in Excess

of Par Value Accumulated

Distributions in Excess of Earnings Accumulated Other Comprehensive (Loss) Income Total

7 unchanged sentences

Distributions declared on common stock — $ 0.08 per common share

— — — ( 37,201 ) g — ( 37,201 ) — ( 37,201 )

— — — ( 37,201 ) — ( 37,201 ) — ( 37,201 )

Redemptions of common stock ( 1,844,645 ) ( 18 ) ( 11,218 ) — — ( 11,236 ) — ( 11,236 )

5 unchanged sentences

436,894,246 $ 4,371 $ 3,534,082 $ ( 1,746,646 ) $ ( 14,602 ) $ 1,777,205 $ 553 $ 1,777,758

Issuance of common stock 1,464,961 15 7,634 — — 7,649 — 7,649

Equity-based compensation 182,189 2 1,228 — — 1,230 — 1,230

Distributions declared on common stock — $ 0.08 per common share

— — — ( 37,210 ) — ( 37,210 ) — ( 37,210 )

Redemptions of common stock ( 1,765,895 ) ( 18 ) ( 9,232 ) — — ( 9,250 ) — ( 9,250 )

Changes in redeemable common stock — — 1,602 — — 1,602 — 1,602

Contributions from non-controlling interests

— — — — — — 750 750

Comprehensive income (loss) — — — 25,192 ( 3,058 ) 22,134 23 22,157

Balance as of June 30, 2025

436,775,501 $ 4,370 $ 3,535,314 $ ( 1,758,664 ) $ ( 17,660 ) $ 1,763,360 $ 1,326 $ 1,764,686

CIM REAL ESTATE FINANCE TRUST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

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

Common Stock Capital in Excess

1 unchanged sentence

Distributions in Excess of Earnings Accumulated

Other Comprehensive (Loss) Income

Other Comprehensive (Loss) Income Total

Stockholders’

Equity Non-Controlling Interests Total Equity

Shares Par Value

8 unchanged sentences

Comprehensive (loss) income — — — ( 38,542 ) 4,955 ( 33,587 ) — ( 33,587 )

— — — ( 38,542 ) 4,955 ( 33,587 )

Balance as of March 31, 2024

437,241,982 $ 4,374 $ 3,530,821 $ ( 1,274,945 ) $ ( 76,188 ) $ 2,184,062 $ — $ 2,184,062

Issuance of common stock 1,765,256 20 10,731 — — 10,751 — 10,751

Equity-based compensation — — 701 — — 701 — 701

Distributions declared on common stock — $ 0.11 per common share

— — — ( 49,271 ) — ( 49,271 ) — ( 49,271 )

Redemptions of common stock ( 1,889,369 ) ( 19 ) ( 11,503 ) — — ( 11,522 ) — ( 11,522 )

Changes in redeemable common stock — — 772 — — 772 — 772

Contributions from non-controlling interests

— — — — — — 50 50

Comprehensive loss

— — — ( 245,801 ) ( 11,471 ) ( 257,272 ) — ( 257,272 )

Balance as of June 30, 2024

437,117,869 $ 4,375 $ 3,531,522 $ ( 1,570,017 ) $ ( 87,659 ) $ 1,878,221 $ 50 $ 1,878,271

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

2 unchanged sentences

(in thousands) (Unaudited)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

33 unchanged sentences

Origination and funding of first mortgage loans ( 170,418 ) ( 47,897 )

Origination and exit fees received on loans held-for-investment 1,644 329

Origination and exit fees received on first mortgage loans 3,906 329

Principal payments received on loans held-for-investment 261,508 136,636

4 unchanged sentences

Net proceeds from sale of liquid corporate senior loans 4,788 120,015

Net cash (used in) provided by investing activities ( 4,595 ) 79,466

Net cash provided by investing activities 139,887 330,513

CIM REAL ESTATE FINANCE TRUST, INC.

1 unchanged sentence

(in thousands) (Unaudited) — Continued

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from financing activities:

18 unchanged sentences

Assumption of other assets and liabilities related to real estate acquired via deed-in-lieu of foreclosure $ ( 3,260 ) $ —

Write-off of assets securing loans held-for-investment $ ( 149,438 ) $ —

Transfer of loans held-for-investment to real estate acquired via deed-in-lieu of foreclosure $ ( 149,438 ) $ —

Common stock issued through distribution reinvestment plan $ 16,270 $ 21,616

7 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited)

June 30, 2025 (Unaudited)

NOTE 1 — ORGANIZATION AND BUSINESS

3 unchanged sentences

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 March 31, 2025, the Company’s loan portfolio consisted of 68 loans with a net book value of $ 3.3 billion, and investments in real estate-related securities and other of $ 302.0 million.

The Company conducts its commercial real estate lending business through CIM Commercial Lending REIT (“CLR”), a Maryland statutory trust and subsidiary of the Company which the Company expects to be taxed as a REIT for U.S.

As of June 30, 2025, the Company’s loan portfolio consisted of 73 loans with a net book value of $ 3.2 billion, and investments in real estate-related securities and other of $ 295.2 million.

federal income tax purposes.

As of March 31, 2025, CLR holds a diversified portfolio of approximately $ 1.5 billion which includes first mortgage loans with a net book value of $ 1.1 billion, commercial mortgage-backed securities (“CMBS”) with an estimated fair value of $ 196.3 million, and an investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies) with a carrying value of $ 182.8 million.

As of March 31, 2025, the Company owned 186 commercial real estate properties, comprising approximately 6.6 million rentable square feet of commercial space located in 36 states.

As of March 31, 2025, the rentable square feet at these properties was 94.8 % leased, including month-to-month agreements, if any.

As of March 31, 2025, the Company owned condominium developments with a net book value of $ 53.4 million.

As of June 30, 2025, CLR holds a diversified portfolio of approximately $ 1.5 billion which includes first mortgage loans with a net book value of $ 1.1 billion, commercial mortgage-backed securities (“CMBS”) with an estimated fair value of $ 195.3 million, and an investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies) with a carrying value of $ 155.4 million.

As of June 30, 2025, the Company owned 185 commercial real estate properties, comprising approximately 6.6 million rentable square feet of commercial space located in 36 states.

As of June 30, 2025, the rentable square feet at these properties was 94.9 % leased, including month-to-month agreements, if any.

As of June 30, 2025, the Company owned condominium developments with a net book value of $ 33.3 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.

19 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

filed with the SEC on August 2, 2016 and automatically became effective with the SEC upon filing.

3 unchanged sentences

Additionally, the estimated per share NAV as determined by the Board serves as the per share NAV for purposes of the share redemption program.

Effective March 28, 2025, the most recent estimated per share NAV of the Company’s common stock was $ 5.22 , using a valuation date of December 31, 2024.

As of June 30, 2025, the most recent estimated per share NAV of the Company’s common stock was $ 5.22 , which was established by the Board on March 28, 2025 using a valuation date of December 31, 2024.

Commencing on March 28, 2025, distributions are reinvested in shares of the Company’s common stock under the DRIP at a price of $ 5.22 per share and $ 5.22 per share serves as the most recent estimated per share NAV for purposes of the share redemption program.

15 unchanged sentences

The Company’s ability to correctly assess its influence or control over an entity affects the presentation of these credit and real estate investments on the Company’s condensed consolidated financial statements.

As of March 31, 2025, CLR is a VIE that is consolidated by the Company as the primary beneficiary, as the Company has the ability to direct the activities of CLR and the obligation to absorb CLR’s losses through its guarantee of CLR’s indebtedness, which is significant to CLR.

As of June 30, 2025, CLR is a VIE that is consolidated by the Company as the primary beneficiary, as the Company has the ability to direct the activities of CLR and the obligation to absorb CLR’s losses through its guarantee of CLR’s indebtedness, which is significant to CLR.

The non-controlling interest on the condensed consolidated balance sheets represents the equity interests in CLR owned by outside investors.

As of March 31, 2025, CLR’s loan portfolio consisted of senior secured mortgage loans with a net book value of $ 1.1 billion and investments in real estate-related securities of $ 196.3 million.

In addition, as of March 31, 2025, the carrying value of CLR’s investment in CIM NP JV Holdings, LLC (“NP JV Holdings”) was $ 182.8 million.

CLR had $ 919.1 million of debt outstanding, as of March 31, 2025.

As of June 30, 2025, CLR’s loan portfolio consisted of senior secured mortgage loans with a net book value of $ 1.1 billion and investments in real estate-related securities of $ 195.3 million.

In addition, as of June 30, 2025, the carrying value of CLR’s investment in CIM NP JV Holdings, LLC (“NP JV Holdings”) was $ 155.4 million.

CLR had $ 934.3 million of debt outstanding, as of June 30, 2025.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

During the year ended December 31, 2024, the Company sold a portion of the Company’s portfolio of liquid corporate senior loans with an aggregate principal balance of $ 265.4 million to OFSI BSL XIV CLO, Ltd., an exempted company incorporated with limited liability under the laws of the Cayman Islands, resulting in net proceeds of $ 259.7 million after closing costs and a loss of $ 2.9 million.

7 unchanged sentences

As such, the Company was determined to not be the primary beneficiary and the CLO is not consolidated on the Company’s financial statements.

As of March 31, 2025, the fair value of the CLO subordinated note is $ 24.9 million and is included in real estate-related securities and other on the Company’s condensed consolidated balance sheets.

As of June 30, 2025, the fair value of the CLO subordinated note is $ 23.1 million and is included in real estate-related securities and other on the Company’s condensed consolidated balance sheets.

For more information, refer to Note 7 — Real Estate-Related Securities and Other.

29 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

discounted cash flow analysis and recent comparable sales transactions.

The Company’s impairment assessment as of March 31, 2025 was based on the most current information available to the Company, including expected holding periods.

The Company’s impairment assessment as of June 30, 2025 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.

7 unchanged sentences

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 three months ended March 31, 2025 and 2024 did not qualify for discontinued operations presentation and thus, the results of the properties and condominiums that were sold will not be reported as discontinued operations, 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 three months ended March 31, 2025 and 2024.

Given the Company’s current asset portfolio and strategy, the Company’s dispositions during the six months ended June 30, 2025 and 2024 did not qualify for discontinued operations presentation and thus, the results of the properties and condominiums that were sold will not be reported as discontinued operations, 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, 2025 and 2024.

Allocation of Purchase Price of Real Estate Assets

16 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

in NP JV Holdings’ earnings and distributions, including unrealized gains and losses as a result of changes in fair value of the NewPoint JV.

2 unchanged sentences

Restricted Cash

The Company had $ 3.1 million and $ 3.9 million in restricted cash as of March 31, 2025 and December 31, 2024, respectively.

Included in restricted cash was $ 1.1 million and $ 1.9 million held by lenders in lockbox accounts, as of March 31, 2025 and December 31, 2024, respectively.

The Company had $ 3.4 million and $ 3.9 million in restricted cash as of June 30, 2025 and December 31, 2024, respectively.

Included in restricted cash was $ 1.4 million and $ 1.9 million held by lenders in lockbox accounts, as of June 30, 2025 and December 31, 2024, respectively.

As part of certain of the Company’s debt agreements, rents from certain encumbered properties and interest income from certain first mortgage loans 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 $ 2.0 million of construction reserves, amounts held by lenders in escrow accounts for real estate taxes and other lender reserves for certain properties, in accordance with the associated lender’s loan agreement as of March 31, 2025 and December 31, 2024.

Real Estate-Related Securities and Other

1 unchanged sentence

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 March 31, 2025, the Company classified its investments in CMBS and CLO as available-for-sale as the Company is not actively trading the securities;

As of June 30, 2025, the Company classified its investments in CMBS and CLO 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.

These investments are carried at their estimated fair value with unrealized gains and losses reported in other comprehensive (loss) income.

The amortized cost of the Company’s CMBS is adjusted for amortization of premiums and accretion of discounts to maturity computed under the effective interest method.

2 unchanged sentences

The Company’s investments in equity securities of public and private companies are carried at their estimated fair values with unrealized gains and losses reported on the condensed consolidated statements of operations.

Dividend income is included in other income, net on the condensed consolidated statements of operations, of which the Company recorded $ 1.2 million and $ 1.5 million, respectively, during the three months ended March 31, 2025 and 2024.

Dividend income is included in other income, net on the condensed consolidated statements of operations, of which the Company recorded $ 822,000 and $ 2.0 million, respectively, during the three and six months ended June 30, 2025.

During the three and six months ended June 30, 2024, the Company recorded $ 1.2 million and $ 2.7 million of dividend income, respectively.

The Company monitors its CMBS and CLO for changes in fair value.

10 unchanged sentences

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 and are adjusted for amortization of premiums and accretion of discounts to maturity.

Loans held-for-investment are carried on the

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

Company’s condensed consolidated balance sheets at amortized cost, net of any current expected credit losses and are adjusted for amortization of premiums and accretion of discounts to maturity.

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.

29 unchanged sentences

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,

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

meets or exceeds substantially all performance metrics included in original or current underwriting / business plan;

June 30, 2025 (Unaudited) – (Continued)

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.

33 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

Development Activities

31 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

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.

31 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities:

7 unchanged sentences

The estimated fair value of the Company’s equity securities is based on quoted market prices when readily and regularly available in an active market.

A breakout of the Company’s CMBS, CLO subordinated note, and equity securities’ levels of the fair value hierarchy as of March 31, 2025 and December 31, 2024 can be found in the tables under Items Measured at Fair Value on a Recurring Basis below.

A breakout of the Company’s CMBS, CLO subordinated note, and equity securities’ levels of the fair value hierarchy as of June 30, 2025 and December 31, 2024 can be found in the tables under Items Measured at Fair Value on a Recurring Basis below.

Repurchase facilities, notes payable and credit facilities — 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.

10 unchanged sentences

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.

In accordance with the fair value hierarchy described above, the following table details the net book value and fair value of the financial instruments described above as of March 31, 2025 and December 31, 2024 (in thousands):

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

March 31, 2025 December 31, 2024

June 30, 2025 (Unaudited) – (Continued)

In accordance with the fair value hierarchy described above, the following table details the net book value and fair value of the financial instruments described above as of June 30, 2025 and December 31, 2024 (in thousands):

June 30, 2025 December 31, 2024

Net Book Value

15 unchanged sentences

____________________________________

(1) As of March 31, 2025, $ 18.3 million and $ 4.8 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively.

(1) As of June 30, 2025, $ 18.0 million and $ 4.0 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 December 31, 2024, $ 26.0 million and $ 6.1 million of the Company’s liquid corporate senior loans were classified in Level 2 and Level 3 of the fair value hierarchy, respectively.

6 unchanged sentences

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 March 31, 2025 and December 31, 2024 (in thousands):

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, 2025 and December 31, 2024 (in thousands):

Balance as of

March 31, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

June 30, 2025 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

Financial assets:

5 unchanged sentences

Total financial assets $ 295,155 $ 32,628 $ 195,278 $ 67,249

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Balance as of December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

2 unchanged sentences

CLO subordinated note 26,901 — — 26,901

Equity security 32,170 31,547 — 623

Equity securities

32,170 31,547 — 623

Total financial assets

$ 345,828 $ 31,547 $ 241,341 $ 72,940

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the three months ended March 31, 2025 (in thousands):

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, 2025 (in thousands):

Beginning Balance, January 1, 2025

Total gains and losses:

Unrealized gain included in other comprehensive income

Unrealized loss included in other comprehensive (loss) income

Current expected credit losses

1 unchanged sentence

Purchases and payments received:

Proceeds from the repayment of portfolio investments on CLO subordinated note

Proceeds from the repayment on the CLO subordinated note

Accreted interest income

1 unchanged sentence

Capitalized interest income 626

Ending Balance, March 31, 2025

Ending Balance, June 30, 2025

Items Measured at Fair Value on a Non-Recurring Basis (Including Impairment Charges)

1 unchanged sentence

The Company’s process for identifying and recording impairment related to credit investments, real estate assets and intangible assets is discussed in Note 2 — Summary of Significant Accounting Policies.

Properties acquired through deeds-in-lieu of foreclosure are recognized at fair value and included in total real estate assets, net on the Company’s condensed consolidated balance sheet upon foreclosure in accordance with the asset acquisition provisions of ASC 805.

Properties acquired through deeds-in-lieu of foreclosure are recognized at fair value and included in total real estate assets, net on the Company’s condensed consolidated balance sheets upon foreclosure in accordance with the asset acquisition provisions of ASC 805.

The Company is required to disclose real estate owned, a nonfinancial asset, at fair value on a non-recurring basis, in accordance with ASC 820, Fair Value Measurement and Disclosures (“ASC 820”).

Under ASC 820, the Company may utilize the income, market or cost approach (or combination thereof) to determine the fair value of real estate owned.

During the three months ended March 31, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans, which are comprised of two office buildings, through deeds-in-lieu of foreclosure.

During the six months ended June 30, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans, which are comprised of two office buildings, through deeds-in-lieu of foreclosure.

At the time of acquisition, the Company determined the aggregate fair value of the net real estate assets to be $ 151.0 million.

For the two properties, the Company utilized discount rates of 10.8 % and 10.0 %, respectively and capitalization rates of 9.0 % and 8.5 %, respectively.

As of March 31, 2025, the Company had an aggregate $ 231.5 million asset-specific credit loss reserve on funded and unfunded commitments related to six of the Company’s first mortgage loans with an aggregate carrying value of $ 812.3 million.

The asset-specific credit loss reserve was recorded based on the Company’s estimation of the fair value of the first mortgage loans’ aggregate underlying collateral, less costs to sell the underlying collateral, as of March 31, 2025.

Subsequent to June 30, 2025, one of the properties acquired via deed-in-lieu of foreclosure met the criteria to be classified as held for sale.

The Company expects the sale to be completed in August 2025.

As of June 30, 2025, the Company had an aggregate $ 238.4 million asset-specific credit loss reserve on funded and unfunded commitments related to six of the Company’s first mortgage loans with an aggregate carrying value of $ 822.1 million.

These loans are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are classified as Level 3 assets in the fair value hierarchy.

2 unchanged sentences

For additional information regarding the first mortgage loans, refer to Note 8 — Loans Held-For-Investment.

As discussed in Note 4 — Real Estate Assets, during the three months ended March 31, 2025, one property was deemed to be impaired due to a sales price or a revised cash flow estimate that was less than its respective carrying value, and its carrying value was reduced to an estimated fair value of $ 15.0 million, resulting in impairment charges of $ 7.0 million.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

As discussed in Note 4 — Real Estate Assets, during the six months ended June 30, 2025, three properties were deemed to be impaired due to sales prices or revised cash flow estimates that were less than their respective carrying values, and their carrying values were reduced to an estimated fair value of $ 105.0 million, resulting in impairment charges of $ 7.7 million.

The revised cash flow estimate was a result of continued deterioration of fundamentals at certain office properties, including weakened leasing activity and increased capitalization rates, and a revision in assumed holding periods at certain properties.

During the three months ended March 31, 2025, no condominium units were deemed to be impaired.

During the three months ended March 31, 2024, no properties or condominium units were deemed to be impaired.

Additionally, during the six months ended June 30, 2025, no condominium units were deemed to be impaired.

During the six months ended June 30, 2024, seven properties were deemed to be impaired due to sales prices or revised cash flow estimates that were less than their respective carrying values, and their carrying values were reduced to an estimated fair value of $ 115.3 million, resulting in impairment charges of $ 51.5 million.

Additionally, during the six months ended June 30, 2024, certain condominium units were deemed to be impaired, primarily due to a decrease in expected sales prices for certain units, and their carrying values were reduced to their estimated fair value, resulting in impairment charges of $ 5.5 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.

4 unchanged sentences

(4) property operating expenses;

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

(5) re-leasing assumptions, including the number of months to re-lease, market rental income and required tenant improvements.

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 three months ended March 31, 2025:

Three Months Ended March 31,

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, 2025 and 2024:

Six Months Ended June 30,

Discount Rate Terminal Capitalization Rate

9.5 % - 11.9 %

9.0 % - 13.3 %

The following table presents the impairment charges by asset class recorded during the three months ended March 31, 2025 (in thousands):

Three Months Ended March 31,

8.6 % - 11.0 %

8.1 % - 9.5 %

The following table presents the impairment charges by asset class recorded during the six months ended June 30, 2025 and 2024 (in thousands):

Six Months Ended June 30,

Asset class impaired:

Land $ 700 $ 8,182

Buildings, fixtures and improvements 6,347 39,364

Intangible lease assets 627 3,918

Intangible lease liabilities — 5

Condominium developments — 5,463

Total impairment loss $ 7,674 $ 56,932

1 unchanged sentence

Property Acquisitions

During the three months ended March 31, 2024, the Company did not acquire any properties.

During the six months ended June 30, 2024, the Company did not acquire any properties.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

The following table summarizes the purchase price allocation for the real estate properties acquired via deeds-in-lieu of foreclosure (in thousands):

10 unchanged sentences

Condominium Development Project

During the three months ended March 31, 2025 and 2024, the Company capitalized $ 3.9 million and $ 4.5 million, respectively, of expenditures associated with the development of condominiums acquired via foreclosure, which is included in

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

condominium developments in the accompanying condensed consolidated balance sheets.

No capitalized interest expense was included in the capitalized expenditures during the three months ended March 31, 2025 or 2024.

During the six months ended June 30, 2025 and 2024, the Company capitalized $ 8.6 million and $ 10.8 million, respectively, of expenditures associated with the development of condominiums acquired via foreclosure, which is included in condominium developments in the accompanying condensed consolidated balance sheets.

No capitalized interest expense was included in the capitalized expenditures during the six months ended June 30, 2025 or 2024.

Condominium Dispositions

During the three months ended March 31, 2025, the Company disposed of condominium units for an aggregate sales price of $ 18.4 million, resulting in proceeds of $ 16.9 million after closing costs and a gain of $ 1.1 million.

During the three months ended March 31, 2024, the Company disposed of condominium units for an aggregate sales price of $ 13.2 million, resulting in proceeds of $ 12.2 million after closing costs and a gain of $ 782,000 .

During the six months ended June 30, 2025, the Company disposed of condominium units for an aggregate sales price of $ 50.2 million, resulting in proceeds of $ 45.8 million after closing costs and a gain of $ 5.2 million.

During the six months ended June 30, 2024, the Company disposed of condominium units for an aggregate sales price of $ 27.1 million, resulting in proceeds of $ 25.1 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.

1 unchanged sentence

Property Dispositions

During the three months ended March 31, 2025, the Company disposed of three retail properties, for an aggregate gross sales price of $ 13.0 million, resulting in proceeds of $ 12.3 million after closing costs and a gain of $ 418,000 .

The Company has no continuing involvement that would preclude sale treatment with these properties.

During the three months ended March 31, 2024, the Company did not dispose of any properties.

During the six months ended June 30, 2025, the Company disposed of four retail properties, for an aggregate gross sales price of $ 15.8 million, resulting in proceeds of $ 14.9 million after closing costs and a gain of $ 411,000 .

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.

During the six months ended June 30, 2024, the Company disposed of two properties, including one retail property and one office property, for an aggregate gross sales price of $ 53.9 million, resulting in proceeds of $ 52.6 million after closing costs.

No gain or loss was recorded.

The Company has no continuing involvement with the 2025 or 2024 dispositions that would preclude sale treatment with these properties.

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 three months ended March 31, 2025, one property totaling approximately 136,000 square feet with a carrying value of $ 22.0 million was deemed to be impaired and its carrying value was reduced to an estimated fair value of $ 15.0 million, resulting in impairment charges of $ 7.0 million, which were recorded in the condensed consolidated statements of operations.

During the three months ended March 31, 2025, no condominium units were deemed to be impaired.

During the three months ended March 31, 2024, no properties or condominium units were deemed to be impaired.

See Note 3 — Fair Value Measurements for a further discussion regarding these impairment charges during the three months ended March 31, 2025 and 2024.

During the six months ended June 30, 2025, three properties totaling approximately 498,000 square feet with a carrying value of $ 112.7 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $ 105.0 million, resulting in impairment charges of $ 7.7 million, which were recorded in the condensed consolidated statements of operations.

During the six months ended June 30, 2025, no condominium units were deemed to be impaired.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

During the six months ended June 30, 2024, seven properties totaling approximately 824,000 square feet with a carrying value of $ 166.8 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $ 115.3 million, resulting in impairment charges of $ 51.5 million, which were recorded in the condensed consolidated statements of operations.

Additionally, during the six months ended June 30, 2024, certain condominium units were deemed to be impaired and their carrying values were reduced to their estimated fair value, resulting in impairment charges of $ 5.5 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 during the six months ended June 30, 2025 and 2024.

NOTE 5 — INTANGIBLE LEASE ASSETS AND LIABILITIES

Intangible lease assets and liabilities consisted of the following as of March 31, 2025 and December 31, 2024 (in thousands, except weighted average life remaining):

March 31, 2025 December 31, 2024

Intangible lease assets and liabilities consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands, except weighted average life remaining):

June 30, 2025 December 31, 2024

Intangible lease assets:

8 unchanged sentences

Amortization of below-market leases is recorded as an increase to rental and other property income in the accompanying condensed consolidated statements of operations.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The following table summarizes the amortization related to the intangible lease assets and liabilities for the three months ended March 31, 2025 and 2024 (in thousands):

Three Months Ended March 31,

The following table summarizes the amortization related to the intangible lease assets and liabilities for the three and six months ended June 30, 2025 and 2024 (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

In-place lease and other intangible amortization $ 3,265 $ 2,635 $ 6,141 $ 5,330

1 unchanged sentence

Below-market lease amortization $ 269 $ 281 $ 538 $ 566

As of March 31, 2025, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands):

As of June 30, 2025, the estimated amortization relating to the intangible lease assets and liabilities is as follows (in thousands):

In-Place Leases and

8 unchanged sentences

Total $ 103,956 $ 16,992 $ 11,389

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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 currently owns as of March 31, 2025, indirectly through CMFT MT JV Holdings, LLC and CLR NP Holdings, LLC, a subsidiary of CLR, approximately 50 % of the outstanding equity.

During the year ended December 31, 2021, the Company entered into the Unconsolidated Joint Venture, of which the Company currently owns as of June 30, 2025, indirectly through CMFT MT JV Holdings, LLC and CLR NP Holdings, LLC, a subsidiary of CLR, approximately 50 % of the outstanding equity.

The Unconsolidated Joint Venture holds approximately 93 % of the membership interest in the NewPoint JV.

1 unchanged sentence

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 March 31, 2025 and December 31, 2024, the carrying value of the Company’s investment in NP JV Holdings was $ 192.5 million and $ 181.4 million, respectively, which approximates fair value and is included in investment in unconsolidated entities on the condensed consolidated balance sheets.

The Company recorded a gain totaling $ 1.0 million and $ 2.5 million, which represented its share of NP JV Holdings’ gain, during the three months ended March 31, 2025 and 2024, respectively, in the condensed consolidated statements of operations.

During the three months ended March 31, 2025, the Company contributed an additional $ 14.0 million in NP JV Holdings.

The Company also received $ 3.9 million in distributions during the three months ended March 31, 2025, all of which was recognized as a return of investment and reduced the invested capital and the carrying amount.

As of March 31, 2025, the Company had $ 19.9 million of unfunded commitments related to NewPoint JV.

As of June 30, 2025 and December 31, 2024, the carrying value of the Company’s investment in NP JV Holdings was $ 165.5 million and $ 181.4 million, respectively, which approximates fair value and is included in investment in unconsolidated entities on the condensed consolidated balance sheets.

The Company recorded a gain totaling $ 2.9 million and $ 3.9 million, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2025, respectively, in the condensed consolidated statements of operations.

The Company recorded a gain totaling $ 2.7 million and $ 5.3 million, which represented its share of NP JV Holdings’ gain, during the three and six months ended June 30, 2024, respectively, in the condensed consolidated statements of operations.

During the six months ended June 30, 2025, the Company contributed an additional $ 24.3 million in NP JV Holdings.

The Company also received $ 44.1 million in distributions during the six months ended June 30, 2025, $ 38.0 million of which can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date.

Furthermore, of the $ 44.1 million in distributions received during the six months ended June 30, 2025, $ 2.7 million of which was recognized as a return on investment and $ 41.4 million of which was recognized as a return of investment and reduced the invested capital and the carrying amount.

As of June 30, 2025, the Company had $ 47.6 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.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The following tables provide summarized financial information of the Unconsolidated Joint Venture for the periods set forth below (in thousands):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Real estate investments - at fair value

9 unchanged sentences

$ 356,037 $ 388,168

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Total revenues

2 unchanged sentences

17,591 15,095 33,193 30,903

Total other income (expense)

Total other expense

( 1,935 ) ( 1,204 ) ( 6,817 ) ( 2,886 )

$ 6,117 $ 5,868 $ 8,374 $ 11,424

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

NOTE 7 — REAL ESTATE-RELATED SECURITIES AND OTHER

As of March 31, 2025, the Company’s real estate-related securities and other had an aggregate estimated fair value of $ 302.0 million, which included 15 CMBS investments, one CLO subordinated note and four equity securities.

The CMBS investments have initial maturity dates ranging from July 2025 through June 2058 and have interest rates ranging from 0.2 % to 11.7 % as of March 31, 2025, with one CMBS earning a zero coupon rate.

As of March 31, 2025, the CLO subordinated note has an initial maturity date of July 2037 and an estimated effective yield of 14.9 %.

The following is a summary of the Company’s real estate-related securities and other as of March 31, 2025 (in thousands):

As of June 30, 2025, the Company’s real estate-related securities and other had an aggregate estimated fair value of $ 295.2 million, which included 15 CMBS investments, one CLO subordinated note and four equity securities.

The CMBS investments have initial maturity dates ranging from July 2025 through June 2058 and have interest rates ranging from 0.2 % to 11.7 % as of June 30, 2025, with one CMBS earning a zero coupon rate.

As of June 30, 2025, the CLO subordinated note has an initial maturity date of July 2037 and an estimated effective yield of 15.2 %.

The following is a summary of the Company’s real estate-related securities and other as of June 30, 2025 (in thousands):

Real Estate-Related Securities and Other

9 unchanged sentences

$ 521,171 $ 407 $ ( 43,136 ) $ ( 183,287 ) $ 295,155

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The following table provides the activity for the real estate-related securities and other during the three months ended March 31, 2025 (in thousands):

The following table provides the activity for the real estate-related securities and other during the six months ended June 30, 2025 (in thousands):

Amortized Cost Basis Unrealized (Loss) Gain

10 unchanged sentences

( 2,747 ) — — ( 2,747 )

Proceeds from the repayment of portfolio investments on CLO subordinated note

Proceeds from the repayment on the CLO subordinated note

( 3,884 ) — — ( 3,884 )

Unrealized gains on real estate-related securities and other, net

Unrealized loss on real estate-related securities and other, net

— ( 1,619 ) — ( 1,619 )

3 unchanged sentences

— — ( 73,225 ) ( 73,225 )

Real estate-related securities and other as of March 31, 2025

Real estate-related securities and other as of June 30, 2025

$ 521,171 $ ( 42,729 ) $ ( 183,287 ) $ 295,155

During the three months ended March 31, 2025, the Company sold CMBS with an aggregate amortized cost basis of $ 44.0 million, resulting in net proceeds of $ 43.6 million and a loss of $ 410,000 , the loss of which was reclassified from other comprehensive income as a decrease to other income, net in the accompanying consolidated statements of operations.

Unrealized gains and losses on CMBS and the CLO subordinated note are recorded in other comprehensive income, 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.

During the three months ended March 31, 2025, the Company recorded $ 3.5 million of net unrealized gain on its real estate-related securities and other, comprised of a $ 982,000 unrealized gain on CMBS and a $ 733,000 unrealized loss on the CLO subordinated note, which are included in other comprehensive income in the accompanying condensed consolidated statements of comprehensive income (loss) and a $ 3.3 million unrealized gain on the Company’s equity securities, which is included in unrealized gain (loss) on equity securities in the accompanying condensed consolidated statements of operations.

During the three months ended March 31, 2024, the Company recorded $ 6.5 million of net unrealized loss on its real estate-related securities and other, comprised of a $ 4.9 million unrealized gain on CMBS, which is included in other comprehensive income in the accompanying condensed consolidated statements of comprehensive income (loss) and an $ 11.4 million unrealized loss on the Company’s equity securities, which is included in unrealized gain (loss) on equity securities in the accompanying condensed consolidated statements of operations.

The scheduled maturities of the Company’s CMBS and CLO subordinated note as of March 31, 2025 are as follows (in thousands):

During the six months ended June 30, 2025, the Company sold CMBS with an aggregate amortized cost basis of $ 44.0 million, resulting in net proceeds of $ 43.6 million and a loss of $ 410,000 , the loss of which was reclassified from other comprehensive (loss) income as a decrease to other income, net in the accompanying condensed consolidated statements of operations.

Unrealized gains and losses on CMBS and the CLO subordinated note are recorded in other comprehensive (loss) income, 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.

During the six months ended June 30, 2025, the Company recorded $ 1.6 million of net unrealized loss on its real estate-related securities and other, comprised of an $ 843,000 unrealized loss on CMBS and a $ 2.0 million unrealized loss on the CLO subordinated note, which are included in other comprehensive (loss) income in the accompanying condensed consolidated statements of comprehensive income (loss), and a $ 1.2 million unrealized gain on the Company’s equity securities, which is included in unrealized (loss) gain on equity securities in the accompanying condensed consolidated statements of operations.

During the six months ended June 30, 2024, the Company recorded $ 22.2 million of net unrealized loss on its real estate-related securities and other, comprised of a $ 6.6 million unrealized loss on CMBS, which is included in other comprehensive (loss) income in the accompanying condensed consolidated statements of comprehensive income (loss) and a $ 15.6 million unrealized loss on the Company’s equity securities, which is included in unrealized (loss) gain on equity securities in the accompanying condensed consolidated statements of operations.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

The scheduled maturities of the Company’s CMBS and CLO subordinated note as of June 30, 2025 are as follows (in thousands):

CMBS and CLO Subordinated Note

Amortized Cost Estimated Fair Value

6 unchanged sentences

In addition, factors such as prepayments and interest rates may affect the yields on such securities.

Current Expected Credit Losses

Current Expected Credit Losses – Real Estate-Related Securities

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

in increase in provision for credit losses on the Company’s condensed consolidated statements of operations.

Current expected credit related losses are recorded in increase in provision for 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 positions in two different tranches of a CMBS instrument for the three months ended March 31, 2025 and 2024 (in thousands):

The following table presents the activity in the Company’s current expected credit losses related to its positions in two different tranches of a CMBS instrument for the six months ended June 30, 2025 and 2024 (in thousands):

Current expected credit losses as of January 1, 2025

1 unchanged sentence

Current expected credit losses as of March 31, 2025

Provision for credit losses

Current expected credit losses as of June 30, 2025

Current expected credit losses as of January 1, 2024

1 unchanged sentence

Current expected credit losses as of March 31, 2024

Provision for credit losses

Current expected credit losses as of June 30, 2024

During the year ended December 31, 2023, the loan collateralizing one of the Company’s CMBS positions went into payment default and was appraised by a special servicer, resulting in an appraisal reduction that reduced cash flows received from the respective CMBS position during the year ended December 31, 2023.

2 unchanged sentences

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 positions did not exceed their amortized cost basis, and as such the Company determined both tranches of the security the Company is invested in had incurred a credit loss.

During the three months ended March 31, 2025, the property collateralizing the CMBS positions was re-appraised by the special servicer resulting in a further reduction to the appraisal value.

As a result, the Company concluded it is considered more likely than not that the Company will not be able to recover the amortized cost prior to disposal, resulting in a reclassification of unrealized losses previously determined to be driven by non-credit specific factors, as further discussed below.

As a result of the credit loss incurred, the Company recorded a $ 1.2 million increase to the provision for credit losses on the condensed consolidated statements of operations during the three months ended March 31, 2025 and reclassified $ 71.0 million of unrealized loss previously recorded in other comprehensive income in the accompanying condensed consolidated statements of comprehensive income (loss) to increase in provision for credit losses on the condensed consolidated statements of operations.

During the three months ended March 31, 2024, the Company recorded a $ 246,000 decrease to the provision for credit losses on the condensed consolidated statements of operations.

As of March 31, 2025, the amortized cost basis of the CMBS positions identified as having incurred a credit loss was $ 192.8 million prior to any credit loss provisions.

The Company will continue to monitor for changes in expected cash flows in order to continue to measure the credit loss.

As of March 31, 2025, there were six CMBS positions and one CLO subordinated note with an aggregate fair value of $ 147.6 million and $ 24.9 million, respectively, with unrealized losses reflected in other comprehensive income in the accompanying condensed consolidated statements of comprehensive income (loss).

Upon evaluating these securities at the individual security level, the Company concluded that the unrealized losses included in other comprehensive income as of March 31, 2025 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.

The present value of cash flows expected to be collected from the CMBS positions did not exceed their amortized cost basis.

As such, the Company determined both tranches of the security the Company is invested in had incurred a credit loss.

During the six months ended June 30, 2025, the property collateralizing the CMBS positions was re-appraised by the special servicer resulting in a further reduction to the appraisal value.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

losses previously determined to be driven by non-credit specific factors, as further discussed below.

Subsequent to June 30, 2025, the CMBS was in maturity default as it was not repaid as anticipated during July 2025 and the extension option was not exercised.

As a result of the credit loss incurred, the Company recorded a $ 2.2 million increase to the provision for credit losses on the condensed consolidated statements of operations during the six months ended June 30, 2025 and reclassified $ 71.0 million of unrealized loss previously recorded in other comprehensive (loss) income in the accompanying condensed consolidated statements of comprehensive income (loss) to increase in provision for credit losses on the condensed consolidated statements of operations.

During the six months ended June 30, 2024, the Company recorded a $ 4.3 million increase to the provision for credit losses on the condensed consolidated statements of operations.

As of June 30, 2025, the amortized cost basis of the CMBS positions identified as having incurred a credit loss was $ 192.8 million prior to any credit loss provisions.

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, 2025, there were five CMBS positions and one CLO subordinated note with an aggregate fair value of $ 80.0 million and $ 23.1 million, respectively, with unrealized losses reflected in other comprehensive (loss) income in the accompanying condensed consolidated statements of comprehensive income (loss).

Upon evaluating these securities at the individual security level, the Company concluded that the unrealized losses included in other comprehensive (loss) income as of June 30, 2025 were noncredit-related and would be recovered from the securities’ estimated future cash flows.

NOTE 8 — LOANS HELD-FOR-INVESTMENT

The Company’s loans held-for-investment consisted of the following as of March 31, 2025 and December 31, 2024 (in thousands):

As of March 31, As of December 31,

The Company’s loans held-for-investment consisted of the following as of June 30, 2025 and December 31, 2024 (in thousands):

As of June 30, As of December 31,

First mortgage loans (1)

7 unchanged sentences

____________________________________

(1) As of March 31, 2025 and December 31, 2024, first mortgage loans included $ 19.0 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 March 31, 2025 and December 31, 2024 (dollar amounts in thousands):

(1) As of June 30, 2025 and December 31, 2024, first mortgage loans included $ 19.0 million of contiguous mezzanine loan components that, as a whole, have expected credit quality similar to that of a first mortgage loan.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

The following table details overall statistics for the Company’s loans held-for-investment as of June 30, 2025 and December 31, 2024 (dollar amounts in thousands):

CRE Loans (1) (2)

Liquid Corporate Senior Loans Corporate Senior Loans

March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024 March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024

Number of loans 34 33 10 15 29 20

8 unchanged sentences

____________________________________

(1) As of March 31, 2025, 91.3 % of the Company’s CRE loans by principal balance earned a floating rate of interest primarily indexed to the Secured Overnight Financing Rate (“SOFR”).

(1) As of June 30, 2025, 90.8 % 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 and assumes all relevant conditions are met for such extensions;

however, the loans may be repaid prior to such date.

(3) The weighted-average interest rate is based on the relevant floating benchmark plus a spread.

(3) The weighted-average interest rate is based on the relevant fixed rate or floating benchmark plus a spread.

Excludes loans on nonaccrual status.

(4) Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying condensed consolidated balance sheets.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Activity relating to the Company’s loans held-for-investment portfolio was as follows for the three months ended March 31, 2025 (in thousands):

Activity relating to the Company’s loans held-for-investment portfolio was as follows for the six months ended June 30, 2025 (in thousands):

Liquid Corporate Senior Loans Corporate Senior Loans Total Loan Portfolio

17 unchanged sentences

95,157 3,068 ( 837 ) 97,388

Balance, March 31, 2025

Balance, June 30, 2025

$ 2,881,929 $ 26,650 $ 311,897 $ 3,220,476

____________________________________

(1) During the three months ended March 31, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans through deeds-in-lieu of foreclosure, as further discussed in Note 4 — Real Estate Assets.

(2) Includes a combined $ 87.5 million write-off on the two first mortgage loans transferred to real estate assets as noted above and a $ 3.4 million write-off on three liquid corporate senior loans sold during the three months ended March 31, 2025.

(1) During the six months ended June 30, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans through deeds-in-lieu of foreclosure, as further discussed in Note 4 — Real Estate Assets.

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

1 unchanged sentence

Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.

As of March 31, 2025, the Company’s CRE loans had the following characteristics based on carrying value (dollar amounts in thousands):

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

As of June 30, 2025, the Company’s CRE loans had the following characteristics based on carrying value (dollar amounts in thousands):

Collateral Property Type

As of March 31, 2025

As of June 30, 2025

$ 1,563,389 49.4 %

9 unchanged sentences

Total first mortgage loans, net

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Geographic Location

As of March 31, 2025

As of June 30, 2025

$ 1,273,129 40.2 %

6 unchanged sentences

Total first mortgage loans, net

Current Expected Credit Losses

Current Expected Credit Losses – Loans Held-For-Investment

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 three months ended March 31, 2025 and 2024 (in thousands):

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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, 2025 and 2024 (in thousands):

First Mortgage Loans Unfunded First Mortgage Loans (1)

9 unchanged sentences

$ 282,428 $ 19,403 $ 2,441 $ — $ 4,757 $ 614 $ 309,643

Provision for (reversal of) credit losses

4,240 ( 838 ) 305 — 577 ( 42 ) 4,242

Current expected credit losses as of June 30, 2025

$ 286,668 $ 18,565 $ 2,746 $ — $ 5,334 $ 572 $ 313,885

Current expected credit losses as of January 1, 2024

4 unchanged sentences

$ 186,804 $ 3,409 $ 14,370 $ 2 $ 3,869 $ 417 $ 208,871

Provision for (reversal of) credit losses

211,485 7,197 ( 5,963 ) ( 1 ) ( 335 ) ( 13 ) 212,370

Charge-offs of CECL — — ( 480 ) — — — ( 480 )

Current expected credit losses as of June 30, 2024

$ 398,289 $ 10,606 $ 7,927 $ 1 $ 3,534 $ 404 $ 420,761

____________________________________

(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 loss on the Company’s condensed consolidated statements of operations.

During the three months ended March 31, 2025, the Company recorded a net decrease of $ 97.1 million in the current expected credit loss reserve against the loans held-for-investment portfolio, bringing the total current expected credit loss reserve on funded and unfunded commitments to $ 309.6 million.

The decrease was primarily driven by the charge-off of $ 87.5 million of CECL reserves upon the Company taking control of the assets securing two of its risk-rated 5 first mortgage loans through deeds-in-lieu of foreclosure as discussed in Note 4 — Real Estate Assets.

The decrease was further driven by a $ 3.4 million write-off related to three liquid corporate senior loans that were sold during the three months ended March 31, 2025.

Changes to current expected credit losses are recognized through net income (loss) on the Company’s condensed consolidated statements of operations.

During the three months ended June 30, 2025, the Company recorded a net increase of $ 4.2 million in the current expected credit loss reserve against the loans held-for-investment portfolio, bringing the total current expected credit loss reserve on funded and unfunded commitments to $ 313.9 million.

The current expected credit loss reserve reflects certain loans assessed for impairment as well as macroeconomic and current portfolio conditions.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

As of March 31, 2025, the Company did not have any first mortgage loan investments on nonaccrual status.

As of March 31, 2025, the Company’s asset-specific credit loss reserve totaled $ 233.4 million on funded and unfunded commitments, which related to the Company’s risk-rated 5 first mortgage loans and liquid corporate senior loans.

The asset-specific credit loss reserve is recorded based on the Company’s estimation of the fair value of each loan’s underlying collateral, less costs to sell the underlying collateral where applicable, as of March 31, 2025.

As of June 30, 2025, the Company did not have any first mortgage loan investments on nonaccrual status.

As of June 30, 2025, the Company’s asset-specific credit loss reserve totaled $ 240.5 million on funded and unfunded commitments, which related to the Company’s risk-rated 5 first mortgage loans and liquid corporate senior loans.

As further described in Note 2 — Summary of Significant Accounting Policies, the Company evaluates its loans held-for-investment portfolio on a quarterly basis.

1 unchanged sentence

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.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (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 March 31, 2025 by year of origination, loan type, and risk rating (dollar amounts in thousands):

The following table presents the net book value of the Company’s loans held-for-investment portfolio as of June 30, 2025 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 March 31, 2025

As of June 30, 2025

Number of Loans 2025 2024 2023 2022 2021 Prior

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Origination dates are subsequently updated to reflect material loan modifications.

(2) As of March 31, 2025, two of the Company’s liquid corporate senior loan investments were on nonaccrual status with an aggregate carrying value of $ 2.4 million, which represented less than 1.0 % of the carrying value of the Company’s loans held-for-investment portfolio.

(2) As of June 30, 2025, two of the Company’s liquid corporate senior loan investments were on nonaccrual status with an aggregate carrying value of $ 2.4 million, which represented less than 1.0 % of the carrying value of the Company’s loans held-for-investment portfolio.

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

(4) Represents gross charge-offs by year of origination during the three months ended March 31, 2025.

(4) Represents gross charge-offs by year of origination during the six months ended June 30, 2025.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Loan Modifications

1 unchanged sentence

2022-02, Financial Instruments - Credit Losses (Topic 326):

Troubled Debt Restructurings and Vintage

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Disclosures (“ASU 2022-02”) .

Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) .

Such modifications generally provide borrowers with additional time to refinance or sell the collateral property, interest payment adjustments, deferral of scheduled principal repayments, and/or adjustments or waivers of performance tests that are prerequisite to the extension of a loan maturity.

Loan modifications that allow for the option to pay interest in-kind (“PIK”) result in the interest being capitalized and added to the outstanding principal balance of the respective loan.

During the three months ended March 31, 2025, the Company entered into two loan modifications that require disclosure pursuant to ASC 326.

During the three months ended March 31, 2025, the Company modified a first mortgage loan collateralized by an office property into two distinct mortgage loans with a principal balance of $ 78.0 million (“Note A”) and $ 51.7 million (“Note B”).

As of March 31, 2025, the loans had an aggregate carrying value of $ 129.2 million, representing approximately 3.9 % of the Company’s first mortgage loans and were risk-rated 5.

During the six months ended June 30, 2025, the Company entered into three loan modifications that require disclosure pursuant to ASC 326.

During the six months ended June 30, 2025, the Company modified a first mortgage loan collateralized by an office property into two distinct mortgage loans with a principal balance of $ 78.0 million (“Note A”) and $ 52.3 million (“Note B”).

As of June 30, 2025, the loans had an aggregate carrying value of $ 129.9 million, representing approximately 4.1 % of the Company’s first mortgage loans and were risk-rated 5.

The loan modification extended the initial maturity date from January 7, 2025 to February 7, 2029, with two one-year extension options and allows for future funding advances up to an aggregate amount of $ 14.5 million.

In addition, the variable interest rate on Note A was modified from 2.90 % plus Term SOFR to a fixed interest rate of 5.0 % through February 7, 2026, then 6.0 % through the initial maturity date and allows for the accrual of PIK interest for any portion of the interest unable to be paid on a monthly basis due to insufficient cash flow.

In addition, the variable interest rate on Note A was modified from 2.90 % plus Term SOFR (as defined in the applicable loan documents) to a fixed interest rate of 5.0 % through February 7, 2026, then 6.0 % through the initial maturity date and allows for the accrual of PIK interest for any portion of the interest unable to be paid on a monthly basis due to insufficient cash flow.

Note B is not subject to any interest payments, provided no event of default occurs as defined in the loan agreement.

The Company received a $ 12.0 million repayment in connection with the loan modification.

During the three months ended March 31, 2025, interest accrual was resumed on Note A, after previously being on nonaccrual status.

The borrower elected to PIK $ 335,000 of interest during the three months ended March 31, 2025.

The Company modified a first mortgage loan collateralized by an office property during the three months ended March 31, 2025.

As of March 31, 2025, the loan had a carrying value of $ 166.2 million, representing approximately 5.1 % of the Company’s first mortgage loans and was risk-rated 4.

During the six months ended June 30, 2025, interest accrual was resumed on Note A, after previously being on nonaccrual status.

The borrower elected to PIK $ 897,000 of interest during the six months ended June 30, 2025.

The Company modified a first mortgage loan collateralized by an office property during the six months ended June 30, 2025.

As of June 30, 2025, the loan had a carrying value of $ 166.5 million, representing approximately 5.3 % of the Company’s first mortgage loans and was risk-rated 4.

The loan modification extended the initial maturity date from February 7, 2025, with two one-year extension options, to February 7, 2028, with one one-year extension option.

The Company received a $ 10.0 million repayment in connection with the loan modification.

The Company modified a first mortgage loan and a contiguous mezzanine loan with principal balances of $ 57.2 million and $ 19.1 million, respectively, collateralized by two multifamily properties during the three months ended March 31, 2025.

As of March 31, 2025, the loans had a combined carrying value of $ 75.9 million, representing approximately 2.3 % of the Company’s first mortgage loans and were risk-rated 4.

As of June 30, 2025, the loans had a combined carrying value of $ 76.0 million, representing approximately 2.4 % of the Company’s first mortgage loans and were risk-rated 4.

The loan modifications increased the minimum strike rate for the interest rate protection from 3.0 % to 4.5 % for each respective loan.

1 unchanged sentence

Other Modifications

While not required to be disclosed pursuant to ASU 2022-02 because the financial difficulty criteria was not met, the Company modified and restructured a first mortgage loan collateralized by a multifamily property during the three months ended March 31, 2025.

As of March 31, 2025, the loan had a carrying value of $ 54.6 million, representing approximately 1.7 % of the Company’s first mortgage loans and was risk rated 3.

As of June 30, 2025, the loan had a carrying value of $ 54.6 million, representing approximately 1.7 % of the Company’s first mortgage loans and was risk rated 3.

The loan modification restructured the loan amount from $ 72.0 million to $ 55.0 million, extended the initial maturity date from February 6, 2026 with one one-year extension option to March 6, 2028 with two one-year extension options, and modified the variable interest rate from 3.20 % plus Term SOFR to 2.85 % plus Term SOFR.

2 unchanged sentences

NOTE 9 — REPURCHASE FACILITIES, NOTES PAYABLE AND CREDIT FACILITIES

As of March 31, 2025, the Company had $ 3.1 billion of debt outstanding, including net deferred financing costs, with a weighted average years to maturity of 2.0 and a weighted average interest rate of 5.4 %.

As of June 30, 2025, the Company had $ 3.0 billion of debt outstanding, including net deferred financing costs, with a weighted average years to maturity of 1.8 years and a weighted average interest rate of 5.4 %.

The weighted average years to maturity is computed using the scheduled repayment date as specified in each loan agreement where applicable.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The following table summarizes the debt balances as of March 31, 2025 and December 31, 2024, and the debt activity for the three months ended March 31, 2025 (in thousands):

During the Three Months Ended March 31, 2025

June 30, 2025 (Unaudited) – (Continued)

The following table summarizes the debt balances as of June 30, 2025 and December 31, 2024, and the debt activity for the six months ended June 30, 2025 (in thousands):

During the Six Months Ended June 30, 2025

Balance as of December 31, 2024 Debt Issuances & Assumptions (1)

1 unchanged sentence

Amortization Balance as of

March 31, 2025

June 30, 2025

Notes payable – variable rate debt $ 606,452 $ — $ ( 147,253 ) $ — $ 459,199

11 unchanged sentences

Notes Payable

As of March 31, 2025, the Company had $ 604.0 million of variable rate debt outstanding, the borrowings of which are financed through note on note financing arrangements with Massachusetts Mutual Life Insurance Company (the “Mass Mutual Financing”), Citibank, N.A.

(“Citibank” and such financing, the “Citibank Financing”), and Barclays Bank PLC (the “Barclays” and such financing, “Barclays Financing”) to provide financing for the Company’s CRE mortgage loans (the “Note on Note Financing Arrangements”).

The following table is a summary of the Note on Note Financing Arrangements as of March 31, 2025 (dollar amounts in thousands):

As of June 30, 2025, the Company had $ 459.2 million of variable rate debt outstanding, the borrowings of which are financed through note on note financing arrangements with Massachusetts Mutual Life Insurance Company (“Mass Mutual” and such financing, the “Mass Mutual Financing”), Citibank, N.A.

(“Citibank” and such financing, the “Citibank Financing”), and Barclays Bank PLC (“Barclays” and such financing, the “Barclays Financing”) to provide financing for the Company’s CRE mortgage loans (the “Note on Note Financing Arrangements”).

The following table is a summary of the Note on Note Financing Arrangements as of June 30, 2025 (dollar amounts in thousands):

Note on Note Financing Arrangement

16 unchanged sentences

(2) Note on Note Financing Arrangement is held through CLR.

Subsequent to June 30, 2025, the Company exercised one year extension options on the Note on Note Financing Arrangements resulting in maturity dates in August 2026.

(3) Borrowings under the Mass Mutual Financing mature on various dates from July 2027 through January 2028.

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Class of Notes Initial Principal Balance Principal Balance as of March 31, 2025

June 30, 2025 (Unaudited) – (Continued)

Class of Notes Initial Principal Balance Principal Balance as of June 30, 2025

Note Rate Anticipated Repayment Date Rated Final Payment Date Credit Rating (1)

10 unchanged sentences

The aggregate balance of gross real estate assets, net of gross intangible lease liabilities, securing the Class A Notes was $ 1.0 billion.

As of March 31, 2025, amounts outstanding on the Class A Notes totaled $ 758.5 million with a weighted average interest rate of 2.8 %.

As of June 30, 2025, amounts outstanding on the Class A Notes totaled $ 758.5 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

As of March 31, 2025, CMFT CL Lending Sub AB, LLC (the “Borrower”), an indirect wholly owned subsidiary of the Company, had 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.

As of June 30, 2025, CMFT CL Lending Sub AB, LLC (the “Borrower”), an indirect wholly owned subsidiary of the Company, had 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.

4 unchanged sentences

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 March 31, 2025, the amounts borrowed and outstanding under the Loan Facility totaled $ 93.0 million at a weighted average interest rate of 7.2 %.

As of June 30, 2025, the amounts borrowed and outstanding under the Loan Facility totaled $ 113.0 million at a weighted average interest rate of 7.2 %.

CMFT Corporate Credit Securities, LLC, an indirect wholly-owned, bankruptcy-remote subsidiary of the Company, has a revolving credit and security agreement (the “Fourth Amended Credit and Security Agreement”) with the lenders from time to time parties thereto, Citibank, as administrative agent, 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.

1 unchanged sentence

The Credit Securities Revolver may be increased from time to time pursuant to the Fourth Amended Credit and Security Agreement.

As of March 31, 2025, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $ 12.5 million at a weighted average interest rate of 7.0 %.

As of June 30, 2025, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $ 12.5 million at a weighted average interest rate of 7.1 %.

Borrowings under the Fourth Amended Credit and Security Agreement will bear interest equal to the one-month Term SOFR (as defined in the Fourth Amended Credit and Security Agreement) for the relevant interest period, plus an applicable rate.

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

annum following an event of default under the Fourth Amended Credit and Security Agreement).

4 unchanged sentences

Borrowings under the Fourth 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 Fourth 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 March 31, 2025.

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, 2025.

Repurchase Facilities

As of March 31, 2025, indirectly owned subsidiaries of the Company (collectively, the “CMFT Lending Subs”), had Master Repurchase Agreements with Citibank, Barclays, Wells Fargo Bank, N.A.

As of June 30, 2025, indirectly owned subsidiaries of the Company (individually, a “Lending Sub”, and collectively, the “Lending Subs”), had Master Repurchase Agreements with Citibank, Barclays, Wells Fargo Bank, N.A.

(“Wells Fargo”), Deutsche Bank AG (“Deutsche Bank”), and J.P.

1 unchanged sentence

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 March 31, 2025 (dollar amounts in thousands):

The following table is a summary of the Repurchase Facilities as of June 30, 2025 (dollar amounts in thousands):

Repurchase Facility Date of Agreement Maturity Date

28 unchanged sentences

Morgan Repurchase Facility (as defined below) 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 3.00 % to be determined on a case-by-case basis between Citibank, Barclays, Wells Fargo or Deutsche Bank and the CMFT Lending Subs.

(4) Repurchase facility is held through CLR.

5 unchanged sentences

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 March 31, 2025, ranges from 1.15 % to 1.45 %.

Morgan, which as of June 30, 2025, ranges from 1.10 % to 1.45 %.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

The Repurchase Agreements provide for agreements by each of 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 “Initial Guaranties”), under which the Company agreed to guarantee up to 25 % of the CMFT Lending Subs’ obligations under certain Repurchase Agreements.

In addition, in connection with certain of the Repurchase Agreements, the Company (as the “Initial Guarantor”) and certain of the CMFT Lending Subs (individually as a “Replacement Guarantor”, collectively as the “Replacement Guarantors” and together with the Initial Guarantor, the “Guarantors”) entered into or amended guaranties with Citibank, Barclays and Deutsche Bank during the year ended December 31, 2023 (the “2023 Guaranties”, and together with the Initial Guaranties, the “Guaranties”), on a joint and several basis until the satisfaction of certain conditions as set forth in the guaranties, at which point the Replacement Guarantor will become the sole guarantor under the guaranty (the “Guarantor Replacement Event”).

Under the 2023 Guaranties, the Initial Guarantor and the Replacement Guarantors agreed to guarantee the respective CMFT Lending Subs’ obligations under the applicable Repurchase Agreements.

Morgan to re-sell such purchased CRE mortgage loans and CMBS back to 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 “Initial Guaranties”), under which the Company agreed to guarantee up to 25 % of the obligations of the applicable Lending Sub under certain Repurchase Agreements.

In addition, in connection with certain of the Repurchase Agreements, the Company (as the “Initial Guarantor”) and CLR (as a “Replacement Guarantor” and together with the Initial Guarantor, the “Guarantors”) entered into or amended guaranties with Citibank, Barclays and Deutsche Bank during the year ended December 31, 2023 (the “2023 Guaranties”, and together with the Initial Guaranties, the “Guaranties”), on a joint and several basis until the satisfaction of certain conditions as set forth in the guaranties, at which point the Replacement Guarantor will become the sole guarantor under the guaranty (the “Guarantor Replacement Event”).

Under the 2023 Guaranties, the Initial Guarantor and the Replacement Guarantors agreed to guarantee the respective Lending Subs’ obligations under the applicable Repurchase Agreements.

Additionally, during the six months ended June 30, 2025, in connection with the J.P.

Morgan Repurchase Facility, the Company and CLR (as the guarantors) entered into a guaranty with J.P.

Morgan, under which the Company and CLR agreed to guarantee the obligations of the Lending Sub under the Repurchase Agreement with J.P.

Morgan on a joint and several basis until the Company is permitted to be removed as a guarantor upon the satisfaction of certain conditions set forth in the guaranty, leaving CLR as the sole guarantor under the guaranty with J.P.

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.

4 unchanged sentences

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 March 31, 2025.

The Company believes it was in compliance with the financial covenants under the Repurchase Agreements as of June 30, 2025.

Liquidity and Financial Condition — The Company has $ 1.7 billion of debt maturing within the next 12 months following the date these financial statements are issued.

1 unchanged sentence

The Company also has the ability to enter into new financing arrangements or refinance existing arrangements to meet its obligations as they become due, which management believes is probable based on the current loan-to-value ratios and assessment of the current lending environment.

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to March 31, 2025 (in thousands):

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

The following table summarizes the scheduled aggregate principal repayments for the Company’s outstanding debt subsequent to June 30, 2025 (in thousands):

Principal Repayments

2 unchanged sentences

Total $ 3,036,929

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

NOTE 10 — COMMITMENTS AND CONTINGENCIES

2 unchanged sentences

Unfunded Commitments

As of March 31, 2025, the Company had $ 229.2 million of unfunded loan commitments related to its existing CRE loans held-for-investment and corporate senior loans, and $ 19.9 million of unfunded commitments related to NewPoint JV.

As of June 30, 2025, the Company had $ 191.0 million of unfunded loan commitments related to its existing CRE loans held-for-investment and corporate senior loans, and $ 47.6 million of unfunded commitments related to NewPoint JV.

These commitments are not reflected in the accompanying condensed consolidated balance sheets.

12 unchanged sentences

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 has an investment advisory and management agreement dated May 12, 2025 (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”).

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

“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.

3 unchanged sentences

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

securities held by CMFT Securities and its subsidiaries.

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.

On a quarterly basis, the Investment Advisor designates 50 % (or 25 % if related to CMBS) 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.

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 months ended March 31, 2025 and 2024, no incentive compensation fees were incurred.

During the three and six months ended June 30, 2025 and 2024, 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.

5 unchanged sentences

CLR Securities Investments, LLC (“CLR Securities”), a subsidiary of CLR, has an investment advisory and management agreement dated February 29, 2024 (the “CLR Investment Advisory and Management Agreement”) with the Investment Advisor pursuant to which the Investment Advisor manages the day-to-day business affairs of CLR Securities and its investments in real estate-related securities (collectively, the “CLR Managed Assets”), subject to the supervision of the CLR board of trustees.

In connection with the services provided by the Investment Advisor, CLR Securities pays the Investment Advisor an investment advisory fee (the “CLR Investment Advisory Fee”), payable quarterly in arrears, equal to the proportion of the base management fee and performance fee calculated pursuant to the CLR Management Agreement that is attributable to the CLR Managed Assets.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

the CLR Managed Assets.

Because the CLR Managed Assets are excluded from the calculation of management fees payable by CLR to CMFT Management pursuant to the Management Agreement, the total management and advisory fees payable by CLR to its external advisors are not increased as a result of the CLR Investment Advisory and Management Agreement.

1 unchanged sentence

If either CLR Advisory Agreement is terminated without cause, CMFT Management and/or the Investment Advisor, as applicable, shall receive a termination fee pursuant to the terminated CLR Advisory Agreement equal to three times the sum of (a) the average annual management fee and (b) the average annual incentive compensation incurred under the terminated CLR Advisory Agreement during the 24-month period prior to the termination.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

payable to CMFT Management will be reduced by the Company’s proportional share, based on its ownership of CLR, of the base management fee and performance fee payable to CMFT Management by CLR, and (ii) if the Management Agreement and either or both of the CLR Advisory Agreements are simultaneously terminated without cause, the termination fee payable by the Company to CMFT Management or the Investment Advisor, as applicable, under the applicable CLR Advisory Agreement shall be reduced by the Company’s proportional share, based on its ownership of CLR, of the termination fee payable to CMFT Management or the Investment Advisor by CLR under the applicable CLR Advisory Agreement, such that, in each case, the Company will not pay more fees than would otherwise be payable under its Management Agreement or Investment Advisory and Management Agreement, as applicable.

The Company and CMFT Management have entered into an agreement (the “Offset Agreement”) whereby, (i) for so long as CMFT Management is the external manager of the Company and an affiliate of CIM Group, the Company’s management fee payable to CMFT Management will be reduced by the Company’s proportional share, based on its ownership of CLR, of the base management fee and performance fee payable to CMFT Management by CLR, and (ii) if the Management Agreement and either or both of the CLR Advisory Agreements are simultaneously terminated without cause, the termination fee payable by the Company to CMFT Management or the Investment Advisor, as applicable, under the applicable CLR Advisory Agreement shall be reduced by the Company’s proportional share, based on its ownership of CLR, of the termination fee payable to CMFT Management or the Investment Advisor by CLR under the applicable CLR Advisory Agreement, such that, in each case, the Company will not pay more fees than would otherwise be payable under its Management Agreement or Investment Advisory and Management Agreement, as applicable.

The Offset Agreement also provides that CMFT Management will reimburse to the Company 50 % of the organization and offering expenses paid by the Company for CLR, which reimbursement may be paid as a reduction in the management fee payable to CMFT Management under the Management Agreement.

Organization and offering expenses is defined in the CLR Management Agreement as any and all costs and expenses incurred by or on behalf of CLR in connection with the formation of CLR and the marketing and distribution of its common shares of beneficial interest.

During the three months ended March 31, 2025, the Company did not receive any reimbursements from CMFT Management for organization and offering expenses paid by the Company for CLR.

During the six months ended June 30, 2025, the Company did not receive any reimbursements from CMFT Management for organization and offering expenses paid by the Company for CLR.

The Investment Advisor has engaged the Sub-Advisor to act as an investment sub-advisor with respect to the assets held by CLR Securities.

3 unchanged sentences

Pursuant to the Offset Agreement, fees payable by the Company to CMFT Management or the Investment Advisor will be offset by the Company’s proportional share, based on its ownership of CLR, of the fees payable by CLR or its affiliates under the CLR Management Agreement or CLR Investment Advisory Agreement to CMFT Management or the Investment Advisor.

From time to time, the Company guarantees certain of CLR’s indebtedness, as discussed further in Note 9 — Repurchase Facilities, Notes Payable and Credit Facilities.

Expense reimbursements to related parties

1 unchanged sentence

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 (other than the chief financial officer) and any portfolio management, acquisitions or investment professionals.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Management fees

3 unchanged sentences

Due to Affiliates

Of the amounts shown above, $ 13.0 million and $ 13.6 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 three months ended March 31, 2025 and 2024, respectively, and such amounts were recorded as liabilities of the Company as of such dates.

The following table details the components of due to affiliates as of March 31, 2025 (in thousands):

March 31, 2025 December 31, 2024

Of the amounts shown above, $ 12.9 million and $ 14.3 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, 2025 and 2024, respectively, and such amounts were recorded as liabilities of the Company as of such dates.

The following table details the components of due to affiliates as of June 30, 2025 (in thousands):

June 30, 2025 December 31, 2024

Accrued management fees

3 unchanged sentences

$ 12,911 $ 13,669

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

Development and Property Management Agreements

2 unchanged sentences

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 three months ended March 31, 2025 and 2024, the Company recorded $ 142,000 and $ 152,000 , respectively, in development management fees.

During the six months ended June 30, 2025 and 2024, the Company recorded $ 312,000 and $ 413,000 , 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.

6 unchanged sentences

Additionally, CIM Management is reimbursed by the Office Building Owners for expenses incurred in connection with the Management and Development Services, including services provided that are incidental to but not part of the Management and Development Services.

The Property Management and Services Agreement shall remain in effect until the Office Building Owners sell all or substantially all of the property, and is terminable by either party with fifteen days prior notice to the other party, with or without cause.

The Property Management and Services Agreement

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

shall remain in effect until the Office Building Owners sell all or substantially all of the property and is terminable by either party with fifteen days prior notice to the other party, with or without cause.

Investments with Affiliates of the Manager

1 unchanged sentence

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 March 31, 2025, $ 199.9 million of the first mortgage loan was outstanding.

As of June 30, 2025, $ 199.9 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 March 31, 2025, $ 98.0 million of the first mortgage loan was outstanding.

As of June 30, 2025, $ 98.0 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, for the purposes of investing in the NewPoint JV.

As of March 31, 2025, the Company owned approximately 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 $ 192.6 million has been funded, net of $ 59.7 million returned to the Company that can be called back by NewPoint JV through NP JV Holdings as a capital call on a future date.

As of June 30, 2025, the Company owned approximately 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 $ 164.9 million has been funded, net of $ 97.7 million returned to the Company 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.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

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 March 31, 2025, $ 155.0 million of the first mortgage loan was outstanding.

As of June 30, 2025, $ 155.0 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 March 31, 2025, $ 143.9 million of the first mortgage loan was outstanding.

During the three months ended March 31, 2025, the Company and CIM RACR co-invested $ 12.4 million and $ 1.5 million, respectively in two corporate senior loans to a third-party.

As of March 31, 2025, the Company and CIM RACR were co-invested in 12 corporate senior loans with an outstanding balance of $ 157.3 million.

During the six months ended June 30, 2025, the Company sold the first mortgage loan to its consolidated subsidiary, CLR, for $ 120.0 million.

As of June 30, 2025, $ 120.0 million of the first mortgage loan was outstanding.

During the six months ended June 30, 2025, the Company and CIM RACR co-invested $ 13.0 million and $ 1.6 million, respectively, in three corporate senior loans to a third-party.

As of June 30, 2025, the Company and CIM RACR were co-invested in 11 corporate senior loans with an outstanding balance of $ 154.5 million.

The Sub-Advisor provided investment management services related to these corporate senior loans pursuant to the Sub-Advisory Agreement.

8 unchanged sentences

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.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

NOTE 13 — STOCKHOLDERS’ EQUITY

3 unchanged sentences

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 61,000 shares of common stock are available for future grant at March 31, 2025.

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, and awards of approximately 61,000 shares of common stock are available for future grant at June 30, 2025.

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.

4 unchanged sentences

The Manager Plan provides for the grant of non-qualified stock options, restricted stock awards, restricted stock unit awards, and stock appreciation right awards, and dividend equivalents, to eligible named executive officers (as defined in Item 402 of Regulation S-K) of the Company or to CMFT Management, which in turn will transfer such incentives to employees, advisors, or consultants of CMFT Management and its affiliates who provide services to CMFT Management or its affiliates in support of the Company and its subsidiaries.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The maximum number of shares of common stock of the Company that may be subject to awards granted under the Manager Plan is 12,000,000 shares.

As of March 31, 2025, there were approximately 8.6 million shares remaining that may be subject to awards granted under the Manager Plan.

As of June 30, 2025, there were approximately 6.4 million shares remaining that may be subject to awards granted under the Manager Plan.

The Manager Plan will expire on January 9, 2034, unless terminated earlier by the Board or the compensation committee.

The following tables summarize the (i) non-vested shares of restricted stock and restricted stock units and (ii) vesting schedule of shares of restricted stock and restricted stock units for the Company’s directors, officers and employees of the Manager as of March 31, 2025 (dollar amounts in thousands):

Restricted Stock Grants (2022 Plan)

8 unchanged sentences

49,261 2,611,361

Granted — 2,186,565 $ 11,414

Vested — ( 364,378 ) N/A

Forfeited — — N/A

Outstanding as of June 30, 2025

49,261 4,433,548

____________________________________

(1) Each restricted stock unit represents a contingent right to receive one share of the Company’s common stock, payable 50 % in the Company’s common stock and 50 % in the cash value thereof.

1 unchanged sentence

Compensation expense related to the restricted shares and restricted stock units are recognized over the vesting period.

The Company recorded compensation expense of $ 1.4 million for the three months ended March 31, 2025 and 2024, respectively, related to the restricted shares and restricted stock units, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations.

As of March 31, 2025, there was $ 11.3 million of total unrecognized compensation expense related to these restricted shares and restricted stock units, which will be recognized ratably over the remaining respective periods of service.

Below is a summary of restricted stock and restricted stock units vesting dates as of March 31, 2025:

The Company recorded compensation expense of $ 2.4 million and $ 3.8 million for the three and six months ended June 30, 2025, respectively, and $ 1.3 million and $ 2.7 million for the three and six months ended June 30, 2024, respectively, related to the

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

restricted shares and restricted stock units, which is included in general and administrative expenses in the accompanying condensed consolidated statements of operations.

As of June 30, 2025, there was $ 20.4 million of total unrecognized compensation expense related to these restricted shares and restricted stock units, which will be recognized ratably over the remaining respective periods of service.

Below is a summary of restricted stock and restricted stock units vesting dates as of June 30, 2025:

Restricted Stock Grants (2022 Plan)

3 unchanged sentences

2028 — 728,854

49,261 4,433,548

NOTE 14 — LEASES

5 unchanged sentences

Non-lease components are considered to be variable rental and other property income and are recognized in the period incurred.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

As of March 31, 2025, the Company’s leases had a weighted-average remaining term of 9.3 years.

As of June 30, 2025, the Company’s leases had a weighted-average remaining term of 9.1 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.

1 unchanged sentence

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As of March 31, 2025, 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):

As of June 30, 2025, 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

4 unchanged sentences

These contingent rents are subject to the tenant achieving periodic revenues in excess of specified levels.

For the three months ended March 31, 2025 and 2024, the amount of the contingent rent earned by the Company was not significant .

Rental and other property income during the three months ended March 31, 2025 and 2024 consisted of the following (in thousands):

Three Months Ended March 31,

For the three and six months ended June 30, 2025 and 2024, the amount of the contingent rent earned by the Company was not significant .

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Rental and other property income during the three and six months ended June 30, 2025 and 2024 consisted of the following (in thousands):

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Fixed rental and other property income (1)

1 unchanged sentence

Variable rental and other property income (2)

2,558 1,665 4,778 3,548

Total rental and other property income $ 29,179 $ 23,562 $ 57,987 $ 48,136

5 unchanged sentences

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 of ground lease expense during the three months ended March 31, 2025, of which $ 61,000 was paid in cash during the period it was recognized.

As of March 31, 2025, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $ 187,000 for the remainder of 2025, $ 250,000 annually for 2026 through 2030, and $ 667,000 thereafter through the maturity date of the lease in August 2033.

The Company recognized $ 63,000 and $ 125,000 of ground lease expense during the three and six months ended June 30, 2025, respectively, of which $ 61,000 and $ 121,000 , respectively, was paid in cash during the period it was recognized.

As of June 30, 2025, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $ 125,000 for the remainder of 2025, $ 250,000 annually for 2026 through 2030, and $ 667,000 thereafter through the maturity date of the lease in August 2033.

NOTE 15 — SEGMENT REPORTING

2 unchanged sentences

Corporate/other represents all corporate level and unallocated items and includes the Company’s other asset management activities and expenses.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

The Company’s chief operating decision maker (“CODM”) is the Company’s executive management team, which includes the Chief Executive Officer and Chief Financial Officer.

2 unchanged sentences

The CODM uses net income (loss) to make key operating decisions, such as identifying attractive investment opportunities, evaluating underwriting standards, determining the appropriate level of leverage to enhance returns on equity and deciding on the sources of financing.

The following tables present segment reporting for the three months ended March 31, 2025 and 2024 (in thousands):

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

The following tables present segment reporting for the three and six months ended June 30, 2025 and 2024 (in thousands):

Real Estate Credit Corporate/Other (1)

Company Total

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Rental and other property income $ 29,179 $ — $ — $ 29,179

13 unchanged sentences

Total expenses 22,883 54,105 11,554 88,542

Other income:

Other income (expense):

Gain on disposition of real estate and condominium developments, net

1 unchanged sentence

Gain on investment in unconsolidated entities — 2,911 — 2,911

Unrealized loss on equity securities

— ( 2,110 ) — ( 2,110 )

Other income, net 18 769 935 1,722

Total other income

18 1,570 4,979 6,567

Segment net income (loss)

$ 6,314 $ 25,476 $ ( 6,575 ) $ 25,215

Net income allocated to non-controlling interest

Segment net income (loss) attributable to the Company $ 6,314 $ 25,453 $ ( 6,575 ) $ 25,192

Total assets as of June 30, 2025

$ 1,026,587 $ 3,860,787 $ 156,836 $ 5,044,210

__________________________________

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Real Estate Credit Corporate/Other (1)

Company Total

Six Months Ended June 30, 2025

Rental and other property income $ 57,919 $ — $ 68 $ 57,987

Interest income — 155,607 — 155,607

Total revenues 57,919 155,607 68 213,594

General and administrative 127 1,318 11,319 12,764

Interest expense, net 11,706 78,382 — 90,088

Property operating 4,473 — 2,427 6,900

Real estate tax 2,139 — 183 2,322

Expense reimbursements to related parties — — 6,414 6,414

Management fees 4,672 18,739 — 23,411

Transaction-related 114 — 29 143

Depreciation and amortization 18,598 — — 18,598

Real estate impairment 7,674 — — 7,674

Increase in provision for credit losses

— 66,978 — 66,978

Total expenses 49,503 165,417 20,372 235,292

Other income (expense):

Gain on disposition of real estate and condominium developments, net

411 — 5,185 5,596

Gain on investment in unconsolidated entities — 3,922 — 3,922

Unrealized gain on equity securities

7 unchanged sentences

Segment net income (loss) attributable to the Company $ 8,886 $ ( 3,279 ) $ ( 13,298 ) $ ( 7,691 )

Total assets as of March 31, 2025

Total assets as of June 30, 2025

$ 1,026,587 $ 3,860,787 $ 156,836 $ 5,044,210

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

Real Estate Credit Corporate/Other (1)

Company Total

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Rental and other property income

16 unchanged sentences

8,397 — — 8,397

Real estate impairment 51,469 — 5,463 56,932

Increase in provision for credit losses — 216,898 — 216,898

2 unchanged sentences

Gain on disposition of real estate and condominium developments, net

— — 2,468 2,468

Gain on investment in unconsolidated entities

3 unchanged sentences

Other income, net 80 2,175 1,208 3,463

Total other income

80 688 3,676 4,444

Segment net loss

$ ( 45,854 ) $ ( 187,568 ) $ ( 12,379 ) $ ( 245,801 )

Total assets as of June 30, 2024

$ 1,033,875 $ 4,647,726 $ 228,329 $ 5,909,930

__________________________________

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Real Estate Credit Corporate/Other (1)

Company Total

Six Months Ended June 30, 2024

Rental and other property income

$ 47,949 $ — $ 187 $ 48,136

Interest income

— 208,164 — 208,164

Total revenues

47,949 208,164 187 256,300

General and administrative

245 2,003 10,013 12,261

Interest expense, net 11,622 117,891 — 129,513

Property operating

1,826 — 4,504 6,330

Real estate tax

1,874 — 577 2,451

Expense reimbursements to related parties — — 6,719 6,719

Management fees 4,172 21,132 — 25,304

Transaction-related

Depreciation and amortization

16,939 — — 16,939

Real estate impairment 51,469 — 5,463 56,932

Increase in provision for credit losses — 284,015 — 284,015

Total expenses 88,147 425,059 27,324 540,530

Other income (expense):

Gain on disposition of real estate and condominium developments, net

— — 3,250 3,250

Gain on investment in unconsolidated entities

— 5,267 — 5,267

Unrealized loss on equity security

— ( 15,642 ) — ( 15,642 )

Other income, net 148 4,381 2,483 7,012

Total other income (expense)

148 ( 5,994 ) 5,733 ( 113 )

Segment net income (loss)

Segment net loss

$ ( 40,050 ) $ ( 222,889 ) $ ( 21,404 ) $ ( 284,343 )

Total assets as of March 31, 2024

Total assets as of June 30, 2024

$ 1,033,875 $ 4,647,726 $ 228,329 $ 5,909,930

3 unchanged sentences

Redemption of Shares of Common Stock

Subsequent to March 31, 2025, the Company redeemed approximately 1.7 million shares for $ 8.8 million (at an average redemption price of $ 5.23 per share).

The remaining redemption requests received during the three months ended March 31, 2025 totaling approximately 41.3 million shares went unfulfilled.

Investment and Disposition Activity

Subsequent to March 31, 2025, the Company’s investment and disposition activity included the following:

• Disposed of condominium units for an aggregate gross sales price of $ 17.8 million, resulting in net proceeds of $ 16.0 million after closing costs and a gain of approximately $ 2.5 million.

• Settled $ 11.4 million on purchases of two corporate senior loan sales.

• Funded an aggregate amount of $ 7.5 million to nine of the Company’s first mortgage loans, received $ 12.9 million of principal repayments on one of the Company’s first mortgage loans, and a full payoff of $ 118.8 million on one of the Company’s first mortgage loans.

Subsequent to June 30, 2025, the Company redeemed approximately 1.4 million shares for $ 7.7 million (at an average redemption price of $ 5.24 per share).

The remaining redemption requests received during the three months ended June 30, 2025 totaling approximately 43.4 million shares went unfulfilled.

Investment, Acquisition and Disposition Activity

Subsequent to June 30, 2025, the Company’s investment, acquisition and disposition activity included the following:

• Acquired 10 properties for an aggregate purchase price of $ 19.8 million.

The Company has not completed its initial purchase price allocation with respect to these properties and therefore cannot provide similar disclosures to those included in Note 4 — Real Estate Assets in these condensed consolidated financial statements.

• Disposed of condominium units for an aggregate gross sales price of $ 6.5 million, resulting in net proceeds of $ 6.0 million after closing costs and a gain of approximately $ 543,000 .

• Settled $ 17.2 million on the sale of two CMBS and $ 11.3 million on the purchase of one corporate senior loan.

• Funded an aggregate amount of $ 8.1 million to eight of the Company’s first mortgage loans, received $ 5.5 million of principal repayments on one of the Company’s first mortgage loans, and a full payoff of $ 65.0 million on one of the Company’s first mortgage loans.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025 (Unaudited) – (Continued)

June 30, 2025 (Unaudited) – (Continued)

Financing Activity

• Repaid $ 85.5 million of borrowings under the repurchase facility with Barclays, $ 6.2 million of borrowings under the note on note financing arrangement with Barclays, and $ 3.5 million of borrowings under the note on note financing arrangement with Citibank, all of which is held through CLR.

• Repaid $ 10.0 million of borrowings under the Loan Facility with Ally Bank.

• Repaid $ 80.0 million of borrowings under the repurchase facilities with Barclays, J.P.

Morgan and Citibank, $ 2.6 million of borrowings under the note on note financing arrangement with Barclays, and $ 1.5 million of borrowings under the note on note financing arrangement with Citibank, all of which are held through CLR.

• Borrowed $ 17.0 million under the Loan Facility with Ally Bank.

• Extended the maturity dates of the Note on Note Financing Arrangements with Citibank and Barclays from August 2025 to August 2026.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements