Real estate investment trust (REIT) leader CIM Real Estate Finance Trust, Inc. (“CMFT”), which focuses on commercial credit, stated today that it has reached an agreement to sell 185 non-core, net lease properties to Realty Income Corporation (NYSE: O) for $894 million. Subject to the conclusion of due diligence and the fulfilment of closing conditions, the deal is anticipated to close during the first quarter of 2023 and the acquisition price will be paid in cash.
Richard Ressler, Chairman of the Board of Directors, President and CEO of CMFT and Principal and Co-Founder of CIM Group, stated, “We believe the deployment of net sales proceeds will continue to advance our programme to generate sustainable and increasing dividends for our shareholders through earnings growth.” This deal also gives us more flexibility as we look to take advantage of investment opportunities brought on by the present market climate.
The transaction’s net proceeds will be invested in senior secured loans and other investments in similar types of credit.
The 185-property portfolio that is being sold to Realty Income is made up of non-core retail and industrial properties with a combined square footage of 4.6 million and a weighted average remaining lease term (WALT) of 9.3 years1. Following the transaction’s ultimate conclusion, 199 retail, office, and industrial properties with a combined square footage of 6.4 million square feet, a WALT of 11.5 years, and a 99.7% occupancy rate are anticipated to make up CMFT’s net lease portfolio. The majority of the remaining net lease portfolio’s financing comes from an asset-backed securitization with a lengthy duration and fixed rate. The portfolio of senior loans held by CMFT is $4.6 billion.
Owner, operator, lender, and developer of real estate and infrastructure with an emphasis on the community is CIM. By completing more than $60 billion in crucial real estate and infrastructure projects, CIM has worked to add value to projects and improve the lives of people in communities throughout the Americas since 1994. To hands-on management of real assets from due diligence to operations through disposition, CIM’s diversified team of professionals puts its extensive experience and methodical approach to use. CIM works to improve each community where it invests and the world by implementing important environmental, social, and governance (ESG) projects.
- For $894 million, CIM Real Estate Finance Trust, Inc. will sell 185 properties
- Check all news and articles from the latest Business news updates.