CIM Commercial Trust Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

cmct-20200930

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM			10-Q


(Mark One):
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	September 30, 2020
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File Number 1-13610

CIM COMMERCIAL TRUST CORPORATION

(Exact name of registrant as specified in its charter)

Maryland

75-6446078

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

17950 Preston Road,

Suite 600,

Dallas,

Texas

75252

(Address of Principal Executive Offices)

(Zip Code)

(972)

349-3200

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Common Stock, $0.001 Par Value

CMCT

Nasdaq Global Market

Common Stock, $0.001 Par Value

CMCT-L

Tel Aviv Stock Exchange

Series L Preferred Stock, $0.001 Par Value

CMCTP

Nasdaq Global Market

Series L Preferred Stock, $0.001 Par Value

CMCTP

Tel Aviv Stock Exchange

(Title of each class)

(Trading symbol)

(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 4, 2020, the Registrant had outstanding 14,827,410 shares of common stock, par value $0.001 per share.

Table of Contents

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

INDEX


			PAGE NO.
PART I.	Financial Information
	Item 1.	Financial Statements
		Consolidated Balance Sheets—September 30, 2020 and December 31, 2019 (Unaudited)	1
		Consolidated Statements of Operations—Three and Nine Months Ended September 30, 2020 and 2019 (Unaudited)	2
		Consolidated Statements of Comprehensive Income—Three and Nine Months Ended September 30, 2020 and 2019 (Unaudited)	3
		Consolidated Statements of Equity—Nine Months Ended September 30, 2020 and 2019 (Unaudited)	4
		Consolidated Statements of Cash Flows—Nine Months Ended September 30, 2020 and 2019 (Unaudited)	10
		Notes to Consolidated Financial Statements (Unaudited)	12
	Item 2.	Management ’s Discussion and Analysis of Financial Condition and Results of Operations	50
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	71
	Item 4.	Controls and Procedures	71

PART II.	Other Information
	Item 1.	Legal Proceedings	72
	Item 1A.	Risk Factors	72
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
	Item 3.	Defaults Upon Senior Securities	74
	Item 4.	Mine Safety Disclosures	74
	Item 5.	Other Information	74
	Item 6.	Exhibits	75

Table of Contents

PART I

Financial Information

Item 1.

Financial Statements

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share and per share amounts)


	September 30, 2020		December 31, 2019
	(Unaudited)
ASSETS
Investments in real estate, net	$	504,341	$	508,707
Cash and cash equivalents	32,111		23,801
Restricted cash	9,877		12,146
Loans receivable, net	89,314		68,079
Accounts receivable, net	1,634		3,520
Deferred rent receivable and charges, net	35,330		34,857
Other intangible assets, net	6,205		7,260
Other assets	9,301		9,222

TOTAL ASSETS	$	688,113	$	667,592
LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY
LIABILITIES:
Debt, net	$	326,546	$	307,421
Accounts payable and accrued expenses	14,220		24,309
Intangible liabilities, net	730		1,282
Due to related parties	8,119		9,431
Other liabilities	9,137		10,113

Total liabilities	358,752		352,556
COMMITMENTS AND CONTINGENCIES (Note 14)
REDEEMABLE PREFERRED STOCK: Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000 shares authorized; 1,898,187 and 1,875,387 shares issued and outstanding, respectively, as of September 30, 2020 and 1,630,821 and 1,630,421 shares issued and outstanding, respectively, as of December 31, 2019; liquidation preference of $25.00 per share, subject to adjustment	42,642		36,841
EQUITY:
Series A cumulative redeemable preferred stock, $0.001 par value; 36,000,000 shares authorized; 4,104,867 and 4,040,429 shares issued and outstanding, respectively, as of September 30, 2020 and 2,853,555 and 2,837,094 shares issued and outstanding, respectively, as of December 31, 2019; liquidation preference of $25.00 per share, subject to adjustment	100,386		70,633
Series D cumulative redeemable preferred stock, $0.001 par value; 32,000,000 shares authorized; 18,737 shares issued and outstanding as of September 30, 2020 and no shares issued and outstanding as of December 31, 2019; liquidation preference of $25.00 per share, subject to adjustment	463		—
Series L cumulative redeemable preferred stock, $0.001 par value; 9,000,000 shares authorized; 8,080,740 and 5,387,160 shares issued and outstanding, respectively, as of September 30, 2020 and December 31, 2019; liquidation preference of $28.37 per share, subject to adjustment	152,834		152,834
Common stock, $0.001 par value; 900,000,000 shares authorized; 14,827,410 shares issued and outstanding as of September 30, 2020 and 14,602,149 shares issued and outstanding as of December 31, 2019.	15		15
Additional paid-in capital	794,807		794,825
Distributions in excess of earnings	(762,245)		(740,617)
Total stockholders’ equity	286,260		277,690
Noncontrolling interests	459		505
Total equity	286,719		278,195
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY	$	688,113	$	667,592

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

Table of Contents

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(Unaudited)
REVENUES:
Rental and other property income	$	12,897	$	17,306	$	41,416	$	73,306
Hotel income	1,525		7,734		10,153		27,087
Interest and other income	2,912		4,175		7,810		12,955
	17,334		29,215		59,379		113,348
EXPENSES:
Rental and other property operating	8,822		13,286		28,829		49,197
Asset management and other fees to related parties	2,387		2,699		7,408		10,496
Expense reimbursements to related parties—corporate	639		630		2,066		1,819
Expense reimbursements to related parties—lending segment	901		652		2,581		1,840
Interest	2,643		2,403		8,706		8,998
General and administrative	1,736		1,384		5,138		4,793
Transaction costs	—		340		—		600
Depreciation and amortization	5,273		5,180		15,728		21,995
Loss on early extinguishment of debt (Note 6)	281		—		281		29,982
Impairment of real estate (Note 3)	—		—		—		69,000
	22,682		26,574		70,737		198,720
Gain on sale of real estate (Note 3)	—		302		—		433,104
(LOSS) INCOME BEFORE (BENEFIT) PROVISION FOR INCOME TAXES	(5,348)		2,943		(11,358)		347,732
(Benefit) provision for income taxes	(18)		87		(731)		686
NET (LOSS) INCOME	(5,330)		2,856		(10,627)		347,046
Net loss (income) attributable to noncontrolling interests	7		(8)		1		165
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY	(5,323)		2,848		(10,626)		347,211
Redeemable preferred stock dividends declared or accumulated (Note 9)	(4,267)		(4,470)		(13,613)		(12,934)
Redeemable preferred stock deemed dividends (Note 9)	(87)		—		(300)		—
Redeemable preferred stock redemptions (Note 9)	(1)		—		(67)		(8)
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(9,678)	$	(1,622)	$	(24,606)	$	334,269
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: (1)
Basic	$	(0.65)	$	(0.11)	$	(1.67)	$	22.90
Diluted	$	(0.65)	$	(0.11)	$	(1.67)	$	21.24
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: (1)
Basic	14,805		14,598		14,729		14,598
Diluted	14,805		14,599		14,729		15,825

(1)All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

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

Table of Contents

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(Unaudited)
NET (LOSS) INCOME	$	(5,330)	$	2,856	$	(10,627)	$	347,046
Other comprehensive loss: cash flow hedges	—		—		—		(1,806)

COMPREHENSIVE (LOSS) INCOME	(5,330)		2,856		(10,627)		345,240
Comprehensive loss (income) attributable to noncontrolling interests	7		(8)		1		165
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY	$	(5,323)	$	2,848	$	(10,626)	$	345,405

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

Table of Contents

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

Consolidated Statements of Equity

(In thousands, except share and per share amounts)


	Nine Months Ended September 30, 2020
	Common Stock			Preferred Stock
				Series A			Series D			Series L
	Shares	Par Value		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid-in Capital		Distributions in Excess of Earnings		Non-controlling Interests		Total Equity
	(Unaudited)
Balances, December 31, 2019	14,602,149	$	15	2,837,094	$	70,633	—	$	—	5,387,160	$	152,834	$	794,825	$	(740,617)	$	505	$	278,195

Stock-based compensation expense	—	—		—	—		—	—		—	—		56		—		—		56



Common dividends ($0.075 per share)	—	—		—	—		—	—		—	—		—		(1,095)		—		(1,095)
Issuance of Series A Preferred Warrants	—	—		—	—		—	—		—	—		28		—		—		28
Dividends to holders of Series A Preferred Stock ($0.68750 per share)	—	—		—	—		—	—		—	—		—		(3,252)		—		(3,252)
Issuance of Series D Preferred Stock	—	—		—	—		5,980	150		—	—		(5)		—		—		145
Dividends to holders of Series D Preferred Stock ($0.588542 per share)	—	—		—	—		—	—		—	—		—		(3)		—		(3)
Reclassification of Series A Preferred Stock to permanent equity	—	—		304,274	7,588		—	—		—	—		(640)		—		—		6,948
Redeemable Preferred Stock deemed dividends	—	—		—	—		—	—		—	—		—		(161)		—		(161)
Redemption of Series A Preferred Stock	—	—		(2,452)	(61)		—	—		—	—		5		(10)		—		(66)

Net (loss) income	—	—		—	—		—	—		—	—		—		(1,260)		4		(1,256)
Balances, March 31, 2020	14,602,149	$	15	3,138,916	$	78,160	5,980	$	150	5,387,160	$	152,834	$	794,269	$	(746,398)	$	509	$	279,539

(Continued)

Table of Contents

CIM COMMERCIAL TRUST CORPORATION AND SUBSIDIARIES

Consolidated Statements of Equity (Continued)

(In thousands, except share and per share amounts)


	Nine Months Ended September 30, 2020
	Common Stock			Preferred Stock
				Series A			Series D			Series L
	Shares	Par Value		Shares	Amount		Shares	Amount		Shares	Amount		Additional Paid-in Capital		Distributions in Excess of Earnings		Non-controlling Interests		Total Equity
	(Unaudited)
Balances, March 31, 2020	14,602,149	$	15	3,138,916	$	78,160	5,980	$	150	5,387,160	$	152,834	$	794,269	$	(746,398)	$	509	$	279,539
Distributions to noncontrolling interests	—	—		—	—		—	—		—	—		—		—		(45)		(45)
Stock-based compensation expense	21,912	—		—	—		—	—		—	—		56		—

Price	16.21	EPS	22
Shares	16	P/E	1
MCap	257	P/FCF	8
Net Debt	206	EBIT	358
TEV	463	TEV/EBIT	1
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-09
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-16
10-Q	2019-09-30	Filed 2019-11-08
10-Q	2019-06-30	Filed 2019-08-08
10-Q	2019-03-31	Filed 2019-05-13
10-K	2018-12-31	Filed 2019-03-18
10-Q	2018-09-30	Filed 2018-11-13
10-Q	2018-06-30	Filed 2018-08-09
10-Q	2018-03-31	Filed 2018-05-10
10-K	2017-12-31	Filed 2018-03-12
10-Q	2017-09-30	Filed 2017-11-09
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-10
10-K	2016-12-31	Filed 2017-03-16
10-Q	2016-09-30	Filed 2016-11-09
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-10
10-K	2015-12-31	Filed 2016-03-15
10-Q	2015-09-30	Filed 2015-11-09
10-Q	2015-06-30	Filed 2015-08-10
10-Q	2015-03-31	Filed 2015-05-11
10-K	2014-12-31	Filed 2015-03-16
10-Q	2014-09-30	Filed 2014-11-10
10-Q	2014-06-30	Filed 2014-08-11
10-Q	2014-03-31	Filed 2014-05-12
10-K	2013-12-31	Filed 2014-03-10
10-Q	2013-09-30	Filed 2013-11-12
10-Q	2013-06-30	Filed 2013-08-09
10-K	2012-12-31	Filed 2013-03-18
10-Q	2012-09-30	Filed 2012-11-09
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-03-15
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-03-31	Filed 2011-05-09
10-K	2010-12-31	Filed 2011-03-16
10-Q	2010-09-30	Filed 2010-11-09
10-Q	2010-06-30	Filed 2010-08-09
10-Q	2010-03-31	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-16

8-K	2021-02-11	Officers, Other Events
8-K	2020-12-24	Other Events
8-K	2020-12-22	Other Events
8-K	2020-11-03
8-K	2020-09-02
8-K	2020-08-10
8-K	2020-07-13
8-K	2020-05-26
8-K	2020-05-07
8-K	2020-04-09
8-K	2020-03-16
8-K	2020-01-28
8-K	2019-12-20
8-K	2019-11-08
8-K	2019-09-03
8-K	2019-08-12
8-K	2019-08-08
8-K	2019-07-30
8-K	2019-06-18
8-K	2019-06-04
8-K	2019-05-24
8-K	2019-05-13
8-K	2019-05-01
8-K	2019-03-29
8-K	2019-03-18
8-K	2019-03-01
8-K	2019-01-17
8-K	2018-12-17
8-K	2018-11-13
8-K	2018-10-05
8-K	2018-08-09
8-K	2018-05-10
8-K	2018-05-03
8-K	2018-03-28
8-K	2018-01-30

EX-31.1	exhibit311q32020nextgen.htm
EX-31.2	exhibit312q32020nextgen.htm
EX-32.1	exhibit321q32020nextgen.htm
EX-32.2	exhibit322q32020nextgen.htm

CMCT 10Q Quarterly Report

CIM Commercial Trust Earnings 2020-09-30