What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-11-14 compared with 2025-08-13 · 397 added, 336 removed, 1353 unchanged (35% of the section changed)

3 unchanged sentences

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Real estate assets:

7 unchanged sentences

Investment in unconsolidated entities 162,965 181,409

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

Real estate-related securities and other, at fair value, net of credit loss allowances of $ 182,989 and $ 110,062 as of September 30, 2025 and December 31, 2024, respectively

246,059 345,828

22 unchanged sentences

Common stock, $ 0.01 par value per share;

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

490,000,000 shares authorized, 436,630,417 and 437,313,001 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Capital in excess of par value 3,536,611 3,533,329

9 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

17 unchanged sentences

Gain on investment in unconsolidated entities 3,781 4,608 7,703 9,875

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

Total other income (expense)

Unrealized gain (loss) on equity securities 2,458 4,486 3,648 ( 11,156 )

Other income (expense), net 2,237 ( 2,145 ) 5,568 4,867

Loss on extinguishment of debt — ( 950 ) — ( 950 )

Total other income

10,756 7,209 24,795 7,096

10 unchanged sentences

(in thousands) (Unaudited)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

1 unchanged sentence

Other comprehensive (loss) income

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

Unrealized gain (loss) on CMBS 1,399 1,644 556 ( 4,872 )

Unrealized loss on CLO subordinated note ( 1,413 ) — ( 3,379 ) —

Reclassification adjustment for realized loss included in income as other income — — 410 —

Reclassification adjustment for realized (gain) loss included in income as other income ( 70 ) — 340 —

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

32 unchanged sentences

Contributions from non-controlling interests — — — — — — 750 750

— — — — — — 750 750

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

1 unchanged sentence

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

Issuance of common stock 1,443,627 15 7,521 — — 7,536 — 7,536

Equity-based compensation — 2 1,296 — — 1,298 — 1,298

Distributions declared on common stock — $ 0.08 per common share

— — — ( 37,234 ) — ( 37,234 ) — ( 37,234 )

Redemptions of common stock ( 1,588,711 ) ( 16 ) ( 8,309 ) — — ( 8,325 ) — ( 8,325 )

Changes in redeemable common stock — — 789 — — 789 — 789

Contributions from non-controlling interests — — — — — — 251 251

Comprehensive income (loss) — — — 30,282 ( 84 ) 30,198 27 30,225

Balance as of September 30, 2025

436,630,417 $ 4,371 $ 3,536,611 $ ( 1,765,616 ) $ ( 17,744 ) $ 1,757,622 $ 1,604 $ 1,759,226

CIM REAL ESTATE FINANCE TRUST, INC.

31 unchanged sentences

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

Issuance of common stock 1,743,296 17 10,581 — — 10,598 — 10,598

Equity-based compensation — — 838 — — 838 — 838

Distributions declared on common stock — $ 0.11 per common share

— — — ( 49,264 ) — ( 49,264 ) — ( 49,264 )

Redemptions of common stock ( 1,790,518 ) ( 18 ) ( 10,866 ) — — ( 10,884 ) — ( 10,884 )

Changes in redeemable common stock — — 286 — — 286 — 286

Contributions from non-controlling interests — — — — — — 100 100

Comprehensive income

— — — 7,312 1,644 8,956 3 8,959

Balance as of September 30, 2024

437,070,647 $ 4,374 $ 3,532,361 $ ( 1,611,969 ) $ ( 86,015 ) $ 1,838,751 $ 153 $ 1,838,904

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

2 unchanged sentences

(in thousands) (Unaudited)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from operating activities:

Net loss $ ( 7,659 ) $ ( 284,343 )

Adjustments to reconcile net loss to net cash provided by operating activities:

Net income (loss) $ 22,650 $ ( 277,028 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization, net 29,024 24,150

13 unchanged sentences

Increase in provision for credit losses 73,423 308,542

Write-off of deferred financing costs — 950

Return on investment in unconsolidated entities 6,464 9,875

10 unchanged sentences

Return of investment in unconsolidated entities 45,602 397

Investment in real estate-related securities and other ( 4,597 ) ( 27,646 )

Investment in liquid corporate senior loans ( 1,251 ) ( 65,086 )

10 unchanged sentences

Net proceeds from sale of liquid corporate senior loans 4,788 446,974

Payment of property escrow deposits — ( 1,000 )

Refund of property escrow deposits — 1,000

Net cash provided by investing activities 296,679 620,487

2 unchanged sentences

(in thousands) (Unaudited) — Continued

Six Months Ended June 30,

Nine Months Ended September 30,

Cash flows from financing activities:

6 unchanged sentences

Net cash used in financing activities ( 325,381 ) ( 814,078 )

Net (decrease) increase in cash and cash equivalents and restricted cash ( 20,230 ) 168,644

Net increase (decrease) in cash and cash equivalents and restricted cash 73,995 ( 62,869 )

Cash and cash equivalents and restricted cash, beginning of period 185,210 260,582

19 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited)

September 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 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.

As of September 30, 2025, the Company’s loan portfolio consisted of 76 loans with a net book value of $ 3.2 billion, and investments in real estate-related securities and other of $ 246.1 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 Com pany expects to be taxed as a REIT for U.S.

federal income tax purposes.

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.

As of September 30, 2025, CLR holds a diversified portfolio of approximately $ 1.4 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 $ 142.7 million, and an investment in the Unconsolidated Joint Venture (as defined in Note 2 — Summary of Significant Accounting Policies) with a carrying value of $ 152.7 million.

As of September 30, 2025, the Company owned 198 commercial real estate properties, comprising approximately 6.4 million rentable square feet of commercial space located in 37 states.

As of September 30, 2025, the rentable square feet at these properties was 96.9 % leased, including month-to-month agreements, if any.

As of September 30, 2025, the Company owned condominium developments with a net book value of $ 17.7 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.

5 unchanged sentences

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

On January 26, 2012, the Company commenced its initial public offering on a “best efforts” basis of up to a maximum of $ 2.975 billion in shares of common stock (the “Initial Offering”).

The Company ceased issuing shares in the Initial Offering on April 4, 2014.

At the completion of the Initial Offering, a total of approximately 297.4 million shares of common stock had been issued, including approximately 292.3 million shares of common stock sold to the public pursuant to the primary portion of the Initial Offering and approximately 5.1 million shares of common stock issued pursuant to the distribution reinvestment plan (“DRIP”) portion of the Initial Offering.

The remaining approximately 404,000 unsold shares from the Initial Offering were deregistered.

The Company registered $ 247.0 million of shares of common stock under the DRIP (the “Initial DRIP Offering”) pursuant to a Registration Statement on Form S-3 (Registration No.

333-192958), which was filed with the U.S.

Securities and Exchange Commission (the “SEC”) on December 19, 2013 and automatically became effective with the SEC upon filing.

The Company ceased issuing shares under the Initial DRIP Offering effective as of June 30, 2016.

At the completion of the Initial DRIP Offering, a total of approximately $ 241.7 million of shares of common stock had been issued.

The remaining $ 5.3 million of unsold shares from the Initial DRIP Offering were deregistered.

The Company registered an additional $ 600.0 million of shares of common stock under the DRIP (the “Secondary DRIP Offering,” and together with the Initial DRIP Offering, the “DRIP Offerings,” and the DRIP Offerings collectively with the Initial Offering, the “Offerings”) pursuant to a Registration Statement on Form S-3 (Registration No.

333-212832), which was

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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

On January 26, 2012, the Company conducted its initial public offering on a “best efforts” basis from January 26, 2012 to April 4, 2014 (the “Initial Offering”), during which a total of approximately 297.4 million shares of common stock were issued, including approximately 292.3 million shares of common stock that were sold to the public pursuant to the primary portion of the Initial Offering and approximately 5.1 million shares of common stock issued pursuant to the distribution reinvestment plan (“DRIP”) portion of the Initial Offering.

The Company then issued a total of approximately $ 241.7 million of shares of common stock under the DRIP (the “Initial DRIP Offering”) pursuant to a Registration Statement on Form S-3 until June 30, 2016.

Subsequently, the Company registered an additional $ 600.0 million of shares of common stock under the DRIP (the “Secondary DRIP Offering,” and together with the Initial DRIP Offering, the “DRIP Offerings,” and the DRIP Offerings collectively with the Initial Offering, the “Offerings”) pursuant to a Registration Statement on Form S-3 (Registration No.

333-212832), which was filed with the SEC on August 2, 2016 and automatically became effective with the U.S.

Securities and Exchange Commission (the “SEC”) upon filing.

The Company began to issue shares under the Secondary DRIP Offering on August 2, 2016 and continues to issue shares under the Secondary DRIP Offering.

The Company’s board of directors (the “Board”) establishes an updated estimated per share net asset value (“NAV”) of the Company’s common stock on at least an annual basis for purposes of assisting broker-dealers that participated in the Initial Offering in meeting their customer account reporting obligations under Financial Industry Regulatory Authority Rule 2231.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Distributions are reinvested in shares of the Company’s common stock for participants in the DRIP at the estimated per share NAV as determined by the Board.

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

As of June 30, 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.

As of September 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 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.

As of September 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 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

June 30, 2025 (Unaudited) – (Continued)

As of September 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 $ 142.7 million.

In addition, as of September 30, 2025, the carrying value of CLR’s investment in CIM NP JV Holdings, LLC (“NP JV Holdings”) was $ 152.7 million.

CLR had $ 870.8 million of debt outstanding, as of September 30, 2025.

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.

2 unchanged sentences

The Company does not maintain effective control over the liquid corporate senior loans and the Company does not have the ability, nor the requirement, to repurchase the liquid corporate senior loans.

The liquid corporate senior loans served as the initial positions for the formation of a collateralized loan obligation (“CLO”), in which the Company subsequently invested $ 27.6 million in a subordinated note (the “CLO subordinated note”).

The liquid corporate senior loans served as the initial positions for

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

the formation of a collateralized loan obligation (“CLO”), in which the Company subsequently invested $ 27.6 million in a subordinated note (the “CLO subordinated note”).

The CLO is a VIE, given the insufficient equity at risk, evidenced by the tranched capital structure and multiple series of debt instruments issued.

2 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 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.

As of September 30, 2025, the fair value of the CLO subordinated note is $ 21.7 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.

26 unchanged sentences

In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss.

Generally, fair value is determined using a

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

discounted cash flow analysis and recent comparable sales transactions.

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.

Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions.

The Company’s impairment assessment as of September 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.

1 unchanged sentence

See also Note 4 — Real Estate Assets for further discussion regarding real estate investment activity.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Assets Held for Sale

4 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 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.

Given the Company’s current asset portfolio and strategy, the Company’s dispositions during the nine months ended September 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 nine months ended September 30, 2025 and 2024.

Allocation of Purchase Price of Real Estate Assets

3 unchanged sentences

Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities.

The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables.

7 unchanged sentences

The Company accounts for its investment under the equity method.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

The equity method of accounting requires the investment to be initially recorded at cost, including transaction costs incurred to finalize the investment, and is subsequently adjusted for the Company’s share of equity in NP JV Holdings’ earnings and distributions, including unrealized gains and losses as a result of changes in fair value of the NewPoint JV.

The Company records its share of NP JV Holdings’ profits or losses on a quarterly basis as an adjustment to the carrying value of the investment on the Company’s condensed consolidated balance sheet and such share is recognized as a profit or loss on the condensed consolidated statements of operations.

For more information, refer to Note 6 — Investment in Unconsolidated Entities.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Restricted Cash

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.

The Company had $ 3.6 million and $ 3.9 million in restricted cash as of September 30, 2025 and December 31, 2024, respectively.

Included in restricted cash was $ 1.6 million and $ 1.9 million held by lenders in lockbox accounts, as of September 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 June 30, 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 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;

As of September 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.

4 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 $ 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.

Dividend income is included in other income (expense), net on the condensed consolidated statements of operations, of which the Company recorded $ 821,000 and $ 2.8 million, respectively, during the three and nine months ended September 30, 2025.

During the three and nine months ended September 30, 2024, the Company recorded $ 1.2 million and $ 3.9 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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

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.

Interest earned is either received in cash or capitalized to loans held-for-investment and related receivables, net in the Company’s condensed consolidated balance sheets.

Interest is capitalized when certain conditions are met as specified in each loan agreement.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status.

27 unchanged sentences

A “2” rating could have some financial/non-financial weaknesses which are offset by strengths;

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

credit demonstrates an ample current cash flow from operations.

however, the credit demonstrates an ample current cash flow from operations.

The trends and outlook for the credit’s operations, balance sheet, and industry are generally positive or neutral.

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

3- Satisfactory — Acceptable asset quality, somewhat strained liquidity, minimal leverage capacity.

31 unchanged sentences

Upon successful lease execution, leasing commissions are capitalized.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

Development Activities

1 unchanged sentence

For additional information, refer to Note 4 — Real Estate Assets.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

Revenue Recognition

26 unchanged sentences

The Company has two reportable segments:

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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.

1 unchanged sentence

The Company’s credit segment derives its revenues from the lending activities described above under “Revenue Recognition”.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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

26 unchanged sentences

Level 3 — Unobservable inputs, which are only used to the extent that observable inputs are not available, reflect the Company’s assumptions about the pricing of an asset or liability.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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:

Real estate-related securities and other — The Company generally determines the fair value of its CMBS by utilizing broker-dealer quotations, reported trades or valuation estimates from pricing models to determine the reported price.

Pricing models for CMBS are generally discounted cash flow models that usually consider the attributes applicable to a particular class of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available.

Pricing models for CMBS are generally discounted cash flow models that usually consider the attributes applicable to a particular class

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

of security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available.

Depending upon the significance of the fair value inputs used in determining these fair values, these securities are valued using Level 1, Level 2 or Level 3 inputs.

4 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 June 30, 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 September 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.

12 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

September 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 September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025 December 31, 2024

Net Book Value

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____________________________________

(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.

(1) As of September 30, 2025, $ 17.0 million and $ 4.2 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 June 30, 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 September 30, 2025 and December 31, 2024 (in thousands):

Balance as of

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

September 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:

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 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)

6 unchanged sentences

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

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):

The following are reconciliations of the changes in financial assets with Level 3 inputs in the fair value hierarchy for the nine months ended September 30, 2025 (in thousands):

Beginning Balance, January 1, 2025

Total gains and losses:

Unrealized loss included in other comprehensive (loss) income

Unrealized gain included in other comprehensive (loss) income

Current expected credit losses

5 unchanged sentences

Capitalized interest income 945

Ending Balance, June 30, 2025

Ending Balance, September 30, 2025

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

4 unchanged sentences

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 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.

During the nine months ended September 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.

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.

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 June 30, 2025.

During the three months ended September 30, 2025, the Company disposed of a property acquired via deed-in-lieu of foreclosure for an aggregate sales price of $ 91.3 million, resulting in proceeds of $ 87.8 million after closing costs and a gain of $ 1.1 million.

As of September 30, 2025, the Company had an aggregate $ 243.3 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 $ 833.9 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.

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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.

September 30, 2025 (Unaudited) – (Continued)

As discussed in Note 4 — Real Estate Assets, during the nine months ended September 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.

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.

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

During the nine months ended September 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 $ 115.4 million, resulting in impairment charges of $ 51.5 million.

Additionally, during the nine months ended September 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 $ 8.9 million.

The Company estimates fair values using Level 3 inputs and a combined income and market approach, specifically using discounted cash flow analysis and recent comparable sales transactions.

7 unchanged sentences

The Company determined that the selling prices used to determine the fair values were Level 2 inputs.

The following summarizes the ranges of discount rates and terminal capitalization rates used for the Company’s impairment test for the real estate assets during the six months ended June 30, 2025 and 2024:

Six Months Ended June 30,

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 nine months ended September 30, 2025 and 2024:

Nine Months Ended September 30,

Discount Rate Terminal Capitalization Rate

4 unchanged sentences

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,

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

Nine Months Ended September 30,

Asset class impaired:

7 unchanged sentences

Property Acquisitions

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

Additionally, the Company acquired 14 commercial properties for an aggregate purchase price of $ 28.7 million (together, the “2025 Property Acquisitions”), which includes $ 550,000 of external acquisition-related expenses that were capitalized.

During the nine months ended September 30, 2024, the Company acquired two commercial properties for an aggregate purchase price of $ 44.1 million (the “2024 Property Acquisitions”), which includes $ 148,000 of external acquisition-related expenses that were capitalized.

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):

September 30, 2025 (Unaudited) – (Continued)

The following table summarizes the purchase price allocation for the 2025 Property Acquisitions and 2024 Property Acquisitions (in thousands):

2025 Property Acquisitions

2024 Property Acquisitions

Land $ 72,641 $ 3,132

1 unchanged sentence

Acquired in-place leases and other intangibles (1)

22,618 12,307

Acquired above-market leases (2)

2 unchanged sentences

____________________________________

(1) The amortization period for acquired in-place leases and other intangibles and acquired above-market leases is 5.5 years.

(1) The amortization period for acquired in-place leases and other intangibles is 6.4 years and 20.0 years, for the 2025 and 2024 Property Acquisitions, respectively.

(2) The amortization period for acquired above-market leases is 5.5 years.

(3) The amortization period for acquired below-market leases is 14.5 years.

Condominium Development Project

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.

During the nine months ended September 30, 2025 and 2024, the Company capitalized $ 8.3 million and $ 14.5 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 nine months ended September 30, 2025 or 2024.

Condominium Dispositions

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.

During the nine months ended September 30, 2025, the Company disposed of condominium units for an aggregate sales price of $ 68.1 million, resulting in proceeds of $ 62.5 million after closing costs and a gain of $ 6.3 million.

During the nine months ended September 30, 2024, the Company disposed of condominium units for an aggregate sales price of $ 37.4 million, resulting in proceeds of $ 34.1 million after closing costs and a gain of $ 4.5 million.

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

1 unchanged sentence

Property Dispositions

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 .

During the nine months ended September 30, 2025, the Company disposed of five properties, including four retail properties and one office property, for an aggregate gross sales price of $ 107.1 million, resulting in proceeds of $ 102.7 million after closing costs and a gain of $ 1.5 million.

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.

During the nine months ended September 30, 2024, the Company disposed of three properties, including one retail property, one industrial property and one office property, for an aggregate gross sales price of $ 60.8 million, resulting in proceeds of $ 58.7 million after closing costs.

No gain or loss was recorded.

2 unchanged sentences

See Note 2 — Summary of Significant Accounting Policies for a discussion of the Company’s accounting policies regarding impairment of real estate assets.

During the six months ended June 30, 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.

During the nine months ended September 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 nine months ended September 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.

September 30, 2025 (Unaudited) – (Continued)

During the nine months ended September 30, 2024, seven properties totaling approximately 824,000 square feet with a carrying value of $ 166.9 million were deemed to be impaired and their carrying values were reduced to an estimated fair value of $ 115.4 million, resulting in impairment charges of $ 51.5 million, which were recorded in the condensed consolidated statements of operations.

Additionally, during the nine months ended September 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 $ 8.9 million, which were recorded in the condensed consolidated statements of operations.

See Note 3 — Fair Value Measurements for a further discussion regarding these impairment charges during the nine months ended September 30, 2025 and 2024.

NOTE 5 — INTANGIBLE LEASE ASSETS AND LIABILITIES

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

September 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.

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,

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Below-market lease amortization $ 310 $ 280 $ 848 $ 846

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

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

In-Place Leases and

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 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 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.

During the year ended December 31, 2021, the Company entered into the Unconsolidated Joint Venture, of which the Company currently owns as of September 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 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.

As of September 30, 2025 and December 31, 2024, the carrying value of the Company’s investment in NP JV Holdings was $ 163.0 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 $ 3.8 million and $ 7.7 million, which represented its share of NP JV Holdings’ gain, during the three and nine months ended September 30, 2025, respectively, in the condensed consolidated statements of operations.

The Company recorded a gain totaling $ 4.6 million and $ 9.9 million, which represented its share of NP JV Holdings’ gain, during the three and nine months ended September 30, 2024, respectively, in the condensed consolidated statements of operations.

During the nine months ended September 30, 2025, the Company contributed an additional $ 25.9 million in NP JV Holdings.

The Company also received $ 52.1 million in distributions during the nine months ended September 30, 2025, $ 41.2 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 $ 52.1 million in distributions received during the nine months ended September 30, 2025, $ 6.5 million of which was recognized as a return on investment and $ 45.6 million of which was recognized as a return of investment and reduced the invested capital and the carrying amount.

As of September 30, 2025, the Company had $ 49.2 million of unfunded commitments related to NewPoint JV.

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

1 unchanged sentence

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Real estate investments - at fair value

9 unchanged sentences

$ 350,639 $ 388,168

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

3 unchanged sentences

15,139 17,545 48,332 48,448

Total other expense

Total other (expense) income

( 90 ) 2,485 ( 6,907 ) ( 401 )

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

NOTE 7 — REAL ESTATE-RELATED SECURITIES AND OTHER

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):

As of September 30, 2025, the Company’s real estate-related securities and other had an aggregate estimated fair value of $ 246.1 million, which included 13 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 9.5 % as of September 30, 2025, with one CMBS earning a zero coupon rate.

As of September 30, 2025, two tranches of a CMBS position held by the Company did not mature as anticipated in July 2025 and were therefore in maturity default.

As of September 30, 2025, the CLO subordinated note has an initial maturity date of July 2037 and an estimated effective yield of 15.1 %.

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

Real Estate-Related Securities and Other

9 unchanged sentences

$ 469,409 $ 210 $ ( 40,571 ) $ ( 182,989 ) $ 246,059

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

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

Amortized Cost Basis Unrealized (Loss) Gain

2 unchanged sentences

$ 568,432 $ ( 112,542 ) $ ( 110,062 ) $ 345,828

Face value of real estate-related securities acquired 4,600 — — 4,600

Discounts on purchase of real estate-related securities, net of acquisition costs

( 3 ) — — ( 3 )

Accretion of discount on real estate-related securities

1,264 — — 1,264

Accretion of interest income on CLO subordinated note

7 unchanged sentences

( 4,842 ) — — ( 4,842 )

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

— ( 1,619 ) — ( 1,619 )

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

Unrealized loss reclassified to CECL

2 unchanged sentences

— — ( 72,927 ) ( 72,927 )

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

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

$ 469,409 $ ( 40,361 ) $ ( 182,989 ) $ 246,059

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.

During the nine months ended September 30, 2025, the Company sold CMBS with an aggregate amortized cost basis of $ 61.3 million, resulting in net proceeds of $ 60.9 million and a loss of $ 340,000 , the loss of which was reclassified from other comprehensive (loss) income as a decrease to other income (expense), 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 (expense), net in the accompanying condensed consolidated statements of operations as securities are sold and gains and losses are recognized.

During the nine months ended September 30, 2025, the Company recorded $ 819,000 of net unrealized gain on its real estate-related securities and other, comprised of a $ 556,000 unrealized gain on CMBS and a $ 3.4 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 $ 3.6 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 nine months ended September 30, 2024, the Company recorded $ 16.0 million of net unrealized loss on its real estate-related securities and other, comprised of a $ 4.8 million unrealized loss on CMBS, which is included in other

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):

September 30, 2025 (Unaudited) – (Continued)

comprehensive (loss) income in the accompanying condensed consolidated statements of comprehensive income (loss) and a $ 11.2 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 September 30, 2025 are as follows (in thousands):

CMBS and CLO Subordinated Note

11 unchanged sentences

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 six months ended June 30, 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 nine months ended September 30, 2025 and 2024 (in thousands):

Current expected credit losses as of January 1, 2025

3 unchanged sentences

Current expected credit losses as of June 30, 2025

Reversal of credit losses

Current expected credit losses as of September 30, 2025

Current expected credit losses as of January 1, 2024

3 unchanged sentences

Current expected credit losses as of June 30, 2024

Provision for credit losses

Current expected credit losses as of September 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.

During the year ended December 31, 2024, the CMBS was modified to provide for an extended maturity date of July 2025 plus a six-month extension option, and to reduce the interest rate to a fixed 0.019 % per annum.

During the year ended December 31, 2024, the CMBS was modified to provide for an extended maturity date of July 2025 plus a six-month extension option, and to reduce the

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

interest rate to a fixed 0.019 % per annum.

Additionally, during the year ended December 31, 2024, the Company received notice of preliminary sales transaction activity in relation to the underlying collateral of this CMBS position, as well as an additional position in a separate tranche of this instrument, indicative of a bid below the carrying value of the investment.

2 unchanged sentences

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

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.

During the nine months ended September 30, 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 of September 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 $ 1.9 million increase to the provision for credit losses on the condensed consolidated statements of operations during the nine months ended September 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 nine months ended September 30, 2024, the Company recorded a $ 51.4 million increase to the provision for credit losses on the condensed consolidated statements of operations.

As of September 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.

As of September 30, 2025, there were three CMBS positions and one CLO subordinated note with an aggregate fair value of $ 51.0 million and $ 21.7 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 September 30, 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.

NOTE 8 — LOANS HELD-FOR-INVESTMENT

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,

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

As of September 30, As of December 31,

First mortgage loans (1)

7 unchanged sentences

____________________________________

(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.

(1) As of September 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):

September 30, 2025 (Unaudited) – (Continued)

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

CRE Loans (1) (2)

Liquid Corporate Senior Loans Corporate Senior Loans

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

September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024 September 30, 2025 December 31, 2024

Number of loans 33 33 10 15 33 20

8 unchanged sentences

____________________________________

(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”).

(1) As of September 30, 2025, 90.6 % 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;

3 unchanged sentences

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

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

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

Liquid Corporate Senior Loans Corporate Senior Loans Total Loan Portfolio

17 unchanged sentences

90,786 629 ( 1,182 ) 90,233

Balance, June 30, 2025

Balance, September 30, 2025

$ 2,838,179 $ 24,204 $ 331,696 $ 3,194,079

____________________________________

(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.

(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 six months ended June 30, 2025.

(1) During the nine months ended September 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.

3 unchanged sentences

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):

September 30, 2025 (Unaudited) – (Continued)

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

Collateral Property Type

As of June 30, 2025

As of September 30, 2025

$ 1,576,421 50.5 %

3 unchanged sentences

Mixed Use 85,642 2.7 %

Retail 64,759 2.0 %

Self-Storage 60,896 1.9 %

4 unchanged sentences

Geographic Location

As of June 30, 2025

As of September 30, 2025

$ 1,295,686 41.4 %

11 unchanged sentences

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):

September 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 nine months ended September 30, 2025 and 2024 (in thousands):

First Mortgage Loans Unfunded First Mortgage Loans (1)

4 unchanged sentences

(Reversal of) provision for credit losses ( 11,922 ) 5,486 ( 2 ) — 260 ( 63 ) ( 6,241 )

( 11,922 ) 5,486 ( 2 ) — 260 ( 63 ) ( 6,241 )

Charge-offs of CECL ( 87,475 ) — ( 3,371 ) — — — ( 90,846 )

( 87,475 ) — ( 3,371 ) — — — ( 90,846 )

Current expected credit losses as of March 31, 2025

1 unchanged sentence

Provision for (reversal of) credit losses 4,240 ( 838 ) 305 — 577 ( 42 ) 4,242

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

Provision for (reversal of) credit losses

4,371 ( 694 ) 2,439 — 345 282 6,743

Current expected credit losses as of September 30, 2025

$ 291,039 $ 17,871 $ 5,185 $ — $ 5,679 $ 854 $ 320,628

Current expected credit losses as of January 1, 2024

5 unchanged sentences

Provision for (reversal of) credit losses 211,485 7,197 ( 5,963 ) ( 1 ) ( 335 ) ( 13 ) 212,370

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

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

1 unchanged sentence

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

(Reversal of) provision for credit losses

( 24,304 ) 5,029 ( 4,050 ) ( 1 ) 595 117 ( 22,614 )

Charge-offs of CECL — — ( 2,860 ) — — — ( 2,860 )

Current expected credit losses as of September 30, 2024

$ 373,985 $ 15,635 $ 1,017 $ — $ 4,129 $ 521 $ 395,287

____________________________________

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

Changes to current expected credit losses are recognized through net income (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.

During the three months ended September 30, 2025, the Company recorded a net increase of $ 6.7 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 $ 320.6 million.

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

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.

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 June 30, 2025.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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

As of September 30, 2025, the Company’s asset-specific credit loss reserve totaled $ 247.9 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

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.

September 30, 2025 (Unaudited) – (Continued)

The Company’s primary credit quality indicator is its risk ratings, which are further discussed above.

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

As of September 30, 2025

Number of Loans 2025 2024 2023 2022 2021 Prior

28 unchanged sentences

Origination dates are subsequently updated to reflect material loan modifications.

(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.

(2) As of September 30, 2025, four of the Company’s liquid corporate senior loan investments were on nonaccrual status with an aggregate carrying value of $ 6.8 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 six months ended June 30, 2025.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

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

Loan Modifications

1 unchanged sentence

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

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

Troubled Debt Restructurings and Vintage

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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 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.

During the nine months ended September 30, 2025, the Company entered into four loan modifications that require disclosure pursuant to ASC 326.

During the nine months ended September 30, 2025, the Company modified a first mortgage loan collateralized by an office property into two distinct mortgage loans with a principal balance of $ 78.6 million (“Note A”) and $ 52.3 million (“Note B”).

As of September 30, 2025, the loans had an aggregate carrying value of $ 130.5 million, representing approximately 4.2 % 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.

2 unchanged sentences

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

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.

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

The borrower elected to PIK $ 1.5 million of interest during the nine months ended September 30, 2025.

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

As of September 30, 2025, the loan had a carrying value of $ 168.3 million, representing approximately 5.4 % 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 six months ended June 30, 2025.

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.

As of September 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.

In addition, during the year ended December 31, 2024, the borrower exercised a one-year extension option with a new maturity date of December 16, 2025 and paid down $ 4.7 million.

The Company modified a corporate senior loan during the nine months ended September 30, 2025.

As of September 30, 2025, the loan had a carrying value of $ 19.4 million, representing approximately 5.8 % of the Company’s corporate senior loans and was risk-rated 4.

The loan modification requires the accrual of additional PIK interest at a rate of 0.5 % per annum, commencing on July 1, 2025 through December 31, 2025.

PIK interest will continue to accrue from January 1, 2026 until the leverage ratio falls below the defined threshold specified in the credit agreement.

The Company received a $ 1.0 million repayment in connection with the loan modification and recognized $ 26,000 of PIK during the nine months ended September 30, 2025.

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 six months ended June 30, 2025.

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.

As of September 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 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 %.

As of September 30, 2025, the Company had $ 3.0 billion of debt outstanding, including net deferred financing costs, with a weighted average years to maturity of 1.9 years and a weighted average interest rate of 5.2 %.

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

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

September 30, 2025 (Unaudited) – (Continued)

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

During the Nine Months Ended September 30, 2025

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

1 unchanged sentence

Amortization Balance as of

June 30, 2025

September 30, 2025

Notes payable – variable rate debt $ 606,452 $ — $ ( 151,377 ) $ — $ 455,075

11 unchanged sentences

Notes Payable

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.

As of September 30, 2025, the Company had $ 455.1 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):

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

Note on Note Financing Arrangement

12 unchanged sentences

____________________________________

(1) Represents the number of extension options remaining and the term of each option.

1 unchanged sentence

(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

June 30, 2025 (Unaudited) – (Continued)

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

September 30, 2025 (Unaudited) – (Continued)

Class of Notes Initial Principal Balance Principal Balance as of September 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 June 30, 2025, amounts outstanding on the Class A Notes totaled $ 758.5 million with a weighted average interest rate of 2.8 %.

As of September 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 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.

As of September 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 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 %.

As of September 30, 2025, the amounts borrowed and outstanding under the Loan Facility totaled $ 141.0 million at a weighted average interest rate of 6.9 %.

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 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 %.

As of September 30, 2025, the amounts borrowed and outstanding under the Credit Securities Revolver totaled $ 12.5 million at a weighted average interest rate of 6.8 %.

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

June 30, 2025 (Unaudited) – (Continued)

September 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 June 30, 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 September 30, 2025.

Repurchase Facilities

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.

As of September 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 June 30, 2025 (dollar amounts in thousands):

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

Repurchase Facility Date of Agreement Maturity Date

17 unchanged sentences

741,949 512,004

Wells Fargo (4)

8/15/2025 8/15/2027 3 / 1 yr.

250,000 6.6 % (3)

30,300 22,725

Deutsche Bank (4)

17 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 June 30, 2025, ranges from 1.10 % to 1.45 %.

Morgan, which as of September 30, 2025, ranges from 1.10 % to 1.40 %.

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

The Repurchase Agreements provide for agreements by each of Citibank, Barclays, Wells Fargo, Deutsche Bank and J.P.

3 unchanged sentences

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.

Additionally, during the nine months ended September 30, 2025, in connection with the J.P.

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

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

Morgan and Wells Fargo 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 guaranties with J.P.

Morgan and Wells Fargo.

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 June 30, 2025.

The Company believes it was in compliance with the financial covenants under the Repurchase Agreements as of September 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.

3 unchanged sentences

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):

September 30, 2025 (Unaudited) – (Continued)

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

Principal Repayments

Remainder of 2025 $ 592,397

2026 1,146,033

Thereafter 455,112

4 unchanged sentences

Unfunded Commitments

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.

As of September 30, 2025, the Company had $ 184.1 million of unfunded loan commitments related to its existing CRE loans held-for-investment and corporate senior loans, and $ 49.2 million of unfunded commitments related to NewPoint JV.

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

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

As of September 30, 2025, the Company had $ 7.1 million of unsettled CMBS acquisitions, all of which settled subsequent to September 30, 2025.

Additionally, the Company had $ 1.3 million of an unsettled liquid corporate senior loan sale, which settled subsequent to September 30, 2025.

Unsettled acquisitions are included in cash and cash equivalents in the accompanying consolidated balance sheets and unsettled sales are included in loans held-for-investment and related receivables, net in the accompanying consolidated balance sheets.

Environmental Matters

9 unchanged sentences

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 (Unaudited) – (Continued)

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).

1 unchanged sentence

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

“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 “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.

7 unchanged sentences

CMFT Management is entitled to receive incentive compensation, payable with respect to each quarter, which is generally equal to the excess of (a) the product of (i) 20 % and (ii) the excess of (A) Core Earnings (as defined in the Management Agreement) of the Company for the previous 12-month period, over (B) the product of (1) the Company’s Consolidated Equity (as defined in the Management Agreement) in the previous 12-month period, and (2) 7 % per annum, over (b) the sum of any incentive compensation paid to CMFT Management with respect to the first three calendar quarters of such previous 12-month period (or such lesser number of completed calendar quarters preceding the applicable period, if applicable).

During the three and six months ended June 30, 2025 and 2024, no incentive compensation fees were incurred.

During the three and nine months ended September 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.

4 unchanged sentences

Thereafter, CMFT Management is entitled to receive 10 % of CLR’s Core Earnings.

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

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

the CLR Managed Assets.

September 30, 2025 (Unaudited) – (Continued)

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.

4 unchanged sentences

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 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.

During the nine months ended September 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.

6 unchanged sentences

The Company reimburses CMFT Management, the Investment Advisor or their affiliates for certain expenses paid or incurred in connection with the services provided to the Company.

The Company will reimburse CMFT Management, the Investment Advisor, or their affiliates for salaries and benefits paid to personnel who provide services to the Company, excluding the Company’s executive officers (other than the chief financial officer) and any portfolio management, acquisitions or investment professionals.

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,

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

excluding the Company’s executive officers (other than the chief financial officer) and any portfolio management, acquisitions or investment professionals.

The Company recorded fees and expense reimbursements as shown in the table below for services provided by CMFT Management or its affiliates related to the services described above during the periods indicated (in thousands):

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Management fees $ 11,681 $ 12,202 $ 35,092 $ 37,506

$ 11,688 $ 12,613 $ 23,411 $ 25,304

Expense reimbursements to related parties

1 unchanged sentence

Due to Affiliates

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

Of the amounts shown above, $ 12.9 million and $ 14.1 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 nine months ended September 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 September 30, 2025 (in thousands):

September 30, 2025 December 31, 2024

Accrued management fees

7 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 six months ended June 30, 2025 and 2024, the Company recorded $ 312,000 and $ 413,000 , respectively, in development management fees.

During the nine months ended September 30, 2025 and 2024, the Company recorded $ 318,000 and $ 563,000 , 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.

4 unchanged sentences

In consideration for the Management and Development Services, CIM Management will receive a property management fee from the Office Building Owners equal to 1.5 % of the operating receipts, as defined in the Property Management and Services Agreement, received by the Office Building Owners from operating the property, subject to the conditions set forth in the Property Management and Services Agreement.

Additionally in consideration for the Management and Development Services, CIM Management 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 set forth in the Development Management Agreement.

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

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.

September 30, 2025 (Unaudited) – (Continued)

Development Management Agreement.

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.

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 June 30, 2025, $ 199.9 million of the first mortgage loan was outstanding.

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

As of September 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 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.

As of September 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 $ 163.3 million has been funded, net of $ 100.9 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.

In December 2021, the Company invested in a $ 155.0 million first mortgage loan, with an initial advance of $ 154.0 million, to a third-party, the proceeds of which were used to finance the acquisition of a property from a fund that is advised by an affiliate of CMFT Management.

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

As of September 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.

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.

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

As of September 30, 2025, $ 120.2 million of the first mortgage loan was outstanding.

During the nine months ended September 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 September 30, 2025, the Company and CIM RACR were co-invested in 11 corporate senior loans with an outstanding balance of $ 153.2 million.

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

10 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 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, 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.

5 unchanged sentences

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

As of September 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 June 30, 2025 (dollar amounts in thousands):

Restricted Stock Grants (2022 Plan)

13 unchanged sentences

49,261 4,433,548

Granted — — $ —

Vested — — N/A

Forfeited — — N/A

Outstanding as of September 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.

(2) The fair value of the Company’s share awards is determined using the Company’s per share NAV on the date of grant.

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

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:

September 30, 2025 (Unaudited) – (Continued)

(2) The fair value of the Company’s share awards is determined using the Company’s per share NAV on the date of grant.

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

The Company recorded compensation expense of $ 2.5 million and $ 6.3 million for the three and nine months ended September 30, 2025, respectively, and $ 1.7 million and $ 4.4 million for the three and nine months ended September 30, 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 September 30, 2025, there was $ 17.8 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.

On October 1, 2025, as part of the annual retainers paid to the independent members of the Board and pursuant to the 2022 Plan, the three independent members of the Board were each granted approximately 19,157 restricted shares, which will vest on October 1, 2026.

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

Restricted Stock Grants (2022 Plan)

11 unchanged sentences

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

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

As of September 30, 2025, the Company’s leases had a weighted-average remaining term of 9.6 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 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):

As of September 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

3 unchanged sentences

A certain amount of the Company’s rental and other property income is from tenants with leases which are subject to contingent rent provisions.

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

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

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

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,

September 30, 2025 (Unaudited) – (Continued)

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

10 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 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.

The Company recognized $ 63,000 and $ 188,000 of ground lease expense during the three and nine months ended September 30, 2025, respectively, of which $ 61,000 and $ 182,000 , respectively, was paid in cash during the period it was recognized.

As of September 30, 2025, the Company’s scheduled future minimum rental payments related to its operating ground lease is approximately $ 63,000 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

8 unchanged sentences

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):

September 30, 2025 (Unaudited) – (Continued)

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

Real Estate Credit Corporate/Other (1)

Company Total

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Rental and other property income $ 27,438 $ — $ — $ 27,438

9 unchanged sentences

Depreciation and amortization 8,980 — — 8,980

Real estate impairment 648 — — 648

Increase in provision for credit losses

1 unchanged sentence

Total expenses 19,961 53,811 11,136 84,908

Other income (expense):

Other income:

Gain on disposition of real estate and condominium developments, net

1 unchanged sentence

Gain on investment in unconsolidated entities — 3,781 — 3,781

Unrealized loss on equity securities

Unrealized gain on equity securities

— 2,458 — 2,458

6 unchanged sentences

Segment net income (loss) attributable to the Company $ 8,682 $ 30,576 $ ( 8,976 ) $ 30,282

Total assets as of June 30, 2025

Total assets as of September 30, 2025

$ 1,026,391 $ 3,786,524 $ 170,513 $ 4,983,428

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

Real Estate Credit Corporate/Other (1)

Company Total

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Rental and other property income $ 85,357 $ — $ 68 $ 85,425

13 unchanged sentences

Total expenses 69,464 219,228 31,508 320,200

Other income (expense):

Other income:

Gain on disposition of real estate and condominium developments, net

10 unchanged sentences

Segment net income (loss) attributable to the Company $ 17,568 $ 27,297 $ ( 22,274 ) $ 22,591

Total assets as of June 30, 2025

Total assets as of September 30, 2025

$ 1,026,391 $ 3,786,524 $ 170,513 $ 4,983,428

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

Real Estate Credit Corporate/Other (1)

Company Total

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Rental and other property income

24 unchanged sentences

— 4,608 — 4,608

Unrealized loss on equity security

Unrealized gain on equity security

— 4,486 — 4,486

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

Other income (expense), net

120 ( 3,730 ) 1,465 ( 2,145 )

Loss on extinguishment of debt

— ( 950 ) — ( 950 )

Total other income

120 4,414 2,675 7,209

Segment net loss

Segment net income (loss)

$ 5,999 $ 12,674 $ ( 11,358 ) $ 7,315

Total assets as of June 30, 2024

Net income allocated to noncontrolling interest — 3 — 3

Segment net income (loss) attributable to the Company $ 5,999 $ 12,671 $ ( 11,358 ) $ 7,312

Total assets as of September 30, 2024

$ 1,054,259 $ 4,091,734 $ 219,854 $ 5,365,847

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

Real Estate Credit Corporate/Other (1)

Company Total

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Rental and other property income

27 unchanged sentences

Other income, net 268 651 3,948 4,867

Loss on extinguishment of debt

— ( 950 ) — ( 950 )

Total other income (expense)

2 unchanged sentences

$ ( 34,051 ) $ ( 210,215 ) $ ( 32,762 ) $ ( 277,028 )

Total assets as of June 30, 2024

Net income allocated to noncontrolling interest — 3 — 3

Segment net loss attributable to the Company

$ ( 34,051 ) $ ( 210,218 ) $ ( 32,762 ) $ ( 277,031 )

Total assets as of September 30, 2024

$ 1,054,259 $ 4,091,734 $ 219,854 $ 5,365,847

__________________________________

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

1 unchanged sentence

Redemption of Shares of Common Stock

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.

Subsequent to September 30, 2025, the Company redeemed approximately 1.5 million shares for $ 7.8 million (at an average redemption price of $ 5.22 per share).

The remaining redemption requests received during the three months ended September 30, 2025 totaling approximately 44.4 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.

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

• Acquired one property for a purchase price of $ 2.4 million.

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

• Disposed of one condominium unit for a gross sales price of $ 5.9 million, resulting in net proceeds of $ 5.5 million after closing costs and a gain of approximately $ 224,000 .

CIM REAL ESTATE FINANCE TRUST, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025 (Unaudited) – (Continued)

September 30, 2025 (Unaudited) – (Continued)

• Settled $ 22.1 million on the purchase of three CMBS, $ 7.1 million of which were traded as of September 30, 2025, and received full payoffs of $ 86.3 million on three of the Company’s CMBS.

• Disposed of two nonaccrual liquid corporate senior loans, resulting in proceeds of $ 395,000 and a loss of approximately $ 2.1 million.

• Originated two first mortgage loans with an aggregate principal balance of $ 158.7 million, funded an aggregate amount of $ 4.0 million to seven of the Company’s first mortgage loans, received $ 2.0 million of principal repayments on one of the Company’s first mortgage loans, and a full payoff of $ 47.5 million on one of the Company’s first mortgage loans.

Financing Activity

• 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.

• Repaid $ 98.7 million of borrowings under the repurchase facilities with J.P.

Morgan and Citibank, both of which are held through CLR.

• Borrowed $ 101.8 million under the repurchase facilities with J.P.

Morgan and Wells Fargo, both of which are held through CLR.

• Extended the maturity date of the repurchase facility with Deutsche Bank from October 2025 to October 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