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Creative Media & Community Trust Corporation — Investor Presentation 2018
Aug 12, 2018
6737_rns_2018-08-12_817c4090-da01-466d-873d-218a062f96a1.pdf
Investor Presentation
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www.cimgroup.com ©2018 CIM Group CIM Commercial Trust Corporation Investor Presentation Second Quarter 2018
Important Disclosures
Free Writing Prospectus | CIM Commercial Trust Corporation Investor Presentation Q2 2018
Filed Pursuant to Rule 433 | Dated August 9, 2018 | Registration Statement Nos. 333-203639; 333-210880
CIM Commercial Trust Corporation (the "Company") has filed registration statements (including prospectuses and prospectus supplements) with the Securities and Exchange Commission (the "SEC") for the offerings to which this communication relates. Before you invest, you should read the prospectuses and the prospectus supplements in those registration statements and other documents the Company has filed with the SEC for more complete information about the Company and the offerings. You may get these documents for free by visiting the Company's website at http://shareholders.cimcommercial.com/. Alternatively, you may request to receive a prospectus by calling toll-free at 1-866-341-2653.
You may also access the applicable prospectus for free on the SEC website at www.sec.gov as follows:
- x Post Effective Amendment No. 3 to Form S-11 on Form S-3, dated January 9, 2018, relating to Registration Statement No. 333- 203639
- x Prospectus, dated April 13, 2018, relating to Registration Statement No. 333-210880 and Supplement No. 1 dated May 14, 2018
Forward-looking Statements
The information set forth herein contains "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts or they discuss the business and affairs of CIM Commercial Trust Corporation ("CMCT", "CIM Commercial", the "Company") on a prospective basis. Further, statements that include words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue," "pursue," or "should" or the negative or other words or expressions of similar meaning, may identify forward-looking statements.
CIM Commercial bases these forward-looking statements on particular assumptions that it has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. These forward-looking statements are necessarily estimates reflecting the judgment of CIM Commercial and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors, including those set forth in CIM Commercial's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, the Registration Statement on Form S-11 (Reg. No. 333-210880) relating to the Series A Preferred Stock, and the Registration Statement on Form S-3 (Reg. No, 333-203639) relating to the sale of common stock by a selling shareholder.
As you read and consider the information herein, you are cautioned to not place undue reliance on these forward-looking statements. These statements are not guarantees of performance or results and speak only as of the date hereof. These forward-looking statements involve risks, uncertainties and assumptions. In light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking statements contained herein will in fact transpire. New factors emerge from time to time, and it is not possible for CIM Commercial to predict all of them. Nor can CIM Commercial assess the impact of each such factor or the extent to which any factor, or combination of factors may cause results to differ materially from those contained in any forwardlooking statement. CIM Commercial undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.
www.cimgroup.com | ©2018 CIM Group | CMCT CIM Commercial Trust Corporation
CMCT Thesis
-
| Resources & Expertise of CIM Group - Premier Institutional Owner Operator |
» Large-scale platform with vertically-integrated team Proprietary "Qualified Community" methodology se » Disciplined, relative-value owner operator with sightlines across all major U.S. urban markets |
||||
|---|---|---|---|---|---|
| Class A and Creative Office Assets in Gateway Markets |
» Located in high barrier-to-entry sub-markets where CIM Group anticipates outsized rent growth » San Francisco Bay Area, Los Angeles, Washington, DC, and Austin |
||||
| Strong Same-Store Growth Prospects | » Same-store growth opportunity through increasing below-market leases to market rates » Value-add / development opportunities |
||||
| Maximizing Returns for Shareholders | » Focused on growing NAV and cash flows per share of common stock while targeting a prudent capital structure consisting of ~45% common equity based on fair value » Since the beginning of 2014, have provided \$8.61 per share in regular dividends, and a tender offer made available to all shareholders1 |
- CMC is the poduct of a nerger (the Tlerger) between CM Until (1) a fund operated by CM, and PMC Commercial Trust in O1 2014. Repeared divisents on our common stock from January 1, 2014 timugh June 3, 2018. Exteriolers in onnecion with the Meger, but noldes 2014 diviends resired by CM RET shareholders process on divideds on convertible profered stock resired by Urban Partners II, LLC, an affiliated CIM REFL and CIM REFL and CIM REFL and CIM REFF and CIM REFF a share equivalent in proseds from the tender of the S2.15, called by diving \$210,000,000, the anount used of CMCT in the tender of connomist of CMCT in the tender of e. by 91, the united of common sistem of the such and end of the The morn of togel and spocial and special and on mater of the mater of the mater of the may of the may of the may of th
www.cimgroup.com | ©2018 CIM Group | CMCT CIM Commercial Trust Corporation
CMCT
Performance Since Launch of CMCT
CMCT

-
Return based on cumulative regular and special divided by initial net asset value ("NAV"), from March 31, 2014 to June 20, 2018.
-
- Please see "Net Asset Value" under "Important Disclosures" with respect to the methodology of the calculation of NAV of CMCT.
-
- Returns based on change in NAV per share from March 31, 2014 to June 30, 2018.
-
" U.S. Office RETS" relled to veriornal stock since and NAV performane of the companies included in the SNLUS REIT Office historials of June \$1, 2018 based, or all periods wights attibuted beach such company by such in the SRL US RET Office hider is an internation of the RETS in the Unities State. The caracterities of the port for of the port f asses of such companies included in 'U.S. Office Reflection of CMCT's portiolio of asses. 'U.S. Offee RETS' may therefore not ean aporprise bentrinar for the performance of CMCT. Past performance of fulure results. The star is derived from SNL and filings with the U.S. Securities and Exchange Commission.
www.clmgroup.com | ©2018 ClM Group | CMCT ClM Commercial Trust Corporation
Performance Since Launch of CMCT
CMCT

-
Todares names in stock pice or net asset rate (14V) ) er share, as applicate, and initials dealers and pad with espect the Company's common stock from March (1214 to June 2018.
-
Please see "Net Asset Value" under "Important Disclosures" with respect to the methodology of the calculation of NAV of CMCT.
-
" L.S. Office RETG" reflects the wights is trip and NAV performance of the companies included in the SVL US RET Office index a of June 0, 2018 based, for all price indicat webgles the and sub consumer by such in the SNLUS RET Of the Internet of entil one of entil of the eller. In and clinic and of an entre in entre in est an approvial beneric o performance of CMCT. Past performane is not a guara. The data used in this charl is derived from SNL and filings with the U.S. Securites and Ecolonge Conmission.
www.clmgroup.com | @2018 ClM Group | CMCT CIM Commercial Trust Corporation

CMCT - Key Performance Indicators1.2


-
Metrics exclude the lending segment and any assets sold prior to June 30, 2018.
-
540 Wilshie Bouler in January 2018 and is noulet in 22 2018 metris, 113 Howard Street was sequied in 2017 metro. The annualias ent as ( Deenher 1, 2017 for 12,94 featable pual 1 f 130 Houard Street van a prosented uring the accommander a signed lease with a different transmission in Intern 2013, as the spos vas occupied the prior owner and annualized rent under the short-term lease was de minimis.
-
Metrios exclude Sheraton Grand Hotel.
-
Historial ocupanias for of the properitane of entable square feel and are based on leases on heases on menod as of Desert of each historial year o, with respect to 22 201, 30, 2018.
-
Historial Annualized Rent PSF represent annual prosped square feet a of Deserted 3* 6 teach historical year of white in the espect to 02 2018, as our e 80, 2018. This anou boal oash net before abstenants. When applied by been gossed in by adding annusions is base not. Annualized and for applicable of for propories includes not attributable to retail.
-
Extaldes the lenting segment. See "Pro-Forma Cash NO" on page 3 and Not on page 3 and "Net Operating Income Resonsiliations on page 20-3.
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2 Kaiser Plaza was acquired in August 2015. The property is included in Pro-forma Cash NOI beginning on the acquisition date.
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1130 Howard was acquired in December 2017. The property is included in Pro-forma Cash NOI beginning on the acquisition date.
-
9400 Wilshire Boulevard was acquired in January 2018. The property is included in Pro-forma Cash NOI beginning on the acquisition date.
www.cimgroup.com | @2018 CIM Group | CMCT CIM Commercial Trust Corporation
CMCT
CMCT - Net Asset Value and Pro-Forma Cash NOI
CMCT
| Estimated Net Asset Value1 | Pro-Forma Cash NOI3 | (\$ in thousands) (Unaudited) |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (\$ in thousands, except for shares and per share amounts) | (Unaudited) | Twelve Months Ended | Six Months Ended | |||||||
| Investments in real estate = at fair value | \$1,676,432 | December 31, 2015 | December 31, 2016 | December 31,2017ª | June 30, 2018® | |||||
| Loans receivable - at fair value | 83,858 | Net income attributable to | ||||||||
| Debt 2 | (608,695) | the Company | S | 24,392 | ವಿ | 34,547 | ತಿ | 379,737 | ತಿ | 2,555 |
| Cash and other assets net of other liabilities |
135,644 | |||||||||
| Noncontrolling interests | (1,055) | Total Cash NOI | S | 131,868 | ટે | 128,470 | ટે | 127,467 | ವಿ | 54,752 |
| Redeemable Series A Preferred Stock | (29,331) | Less Cash NOI from assets sold prior to June 30, 2018 |
56,148 | 43,527 | 26,610 | |||||
| Redeemable Series L Preferred Stock | (207,845) | Proforma Cash NOI | દ્વ | 75,720 | હ | 84,943 | ತಿ | 100,857 | ತಿ | 54,752 |
| Estimated NAV available to common shareholders |
\$1,049,008 | |||||||||
| Pro-forma NOI Breakdown: | ||||||||||
| Shares of Common Stock outstanding | 43,784,939 | Pro-forma Lending NOI | S | 2.880 | క్ | 4,522 | ਣ | 5,293 | ತ | 3.098 |
| Estimated NAV per share of Common Stock |
\$23.96 | Pro-forma Hotel NOI | 12,223 | 13,319 | 13,386 | 8,051 | ||||
| Prosforma Office NOI | 60,637 | 67,102 | 82,179 | 43,603 | ||||||
| Proforma Cash NOI | ક | 75,720 | ತೆ | 84,943 | ತ | 100,857 | ડુ | 54,752 |
1 . As of Desember 31, 2017. See "Nave" inter "Important Disolosures" on page 32.
2. Excludes secured borowings on government gustanteed hones, which are inoluded with cash
- X Xaser Pass applied in Net income athousble to the Company and Person on the maning on to asquision on the association on the aculturing on the scalind bearing on the ac
www.clmgroup.com | ©2018 ClM Group | CMCT CIM Commercial Trust Corporation
CIM CIM Group Overview

www.clmgroup.com | ©2018 ClM Group | CMCT CIM Commercial Trust Corporation
CIM Summary
CMCT
CIM is a community-focused real estate and infrastructure owner, operator and lender. By utilizing their in-house expertise, we create value in our assets, which benefit our investors, and ultimately benefit the community.
| Established | Established in 1994 as an integrated owner and operator of real assets |
|---|---|
| Strategies | Community-focused urban real assets (real estate and infrastructure) in communities qualified by CIM and national credit (net-lease and debt) platforms |
| Vertically-Integrated | Multi-disciplinary expertise and in-house research, acquisition, credit analysis, development, finance, leasing and asset management capabilities |
| Organization | 875+ employees (15 principals including all of its founders, 490+ professionals) |
| Office Locations | Headquartered in Los Angeles, California and has offices in Oakland, California; Bethesda, Maryland; Dallas, Texas; New York, New York; Chicago, Illinois; and Phoenix, Arizona |
| Partners & Co-Investors | Diversified institutional relationships with approximately half committing to multiple CIM products, along with an expansive retail base with more than 89,000 individual shareholders' |
| Assets Owned and Operated | \$28.6 billion2 |
- As of July 2018.
- As of March 31, 2013. See "Important Disobsures" on page 32 and, in particular, the aection "Assets Overated" for additional details.
www.clmgroup.com | ©2018 ClM Group | CMCT ClM Commercial Trust Corporation
CIM Competitive Advantages
CMCT

www.clmgroup.com | @2018 CIM Group | CMCT CIM Commercial Trust Corporation
Community Focused Strategy - CIM Qualified Communities
CMCT
CIM qualifies communities for acquisition (114 qualified to date, 68 with deployed capital). CIM Qualified Communities exhibit strong growth trends, which CIM believes will lead to outsized rent growth and/or capital appreciation. 1
» Since initial acquisition, CM's Qualified Communities have outperformed average national downtowns by over 50%1
Growth in CIM Qualified Communities vs. National Downtowns1

www.clmgroup.com | @2018 ClM Group | CMCT CIM Commercial Trust Corporation

CMCT Overview
CIM Commercial Trust
CIM Commercial (NASDAQ: CMCT | TASE: CMCT)
- » Primarily focuses on Class A and creative office assets in vibrant and improving urban communities
- » Share Price / Market Cap1 \$15.10 / \$0.66 billion
- » NAV per Share / NAV2 \$23.96 / \$1.05 billion
- » Institutional shareholder base (95%)3
Premier Portfolio With Strong Growth Prospects
- » 19 office properties in gateway markets with 3.4 million rentable SF4
- » Embedded growth through increasing below market leases to market and contractual rent escalations
- » Targeting same-store office NOI CAGR of 4% 6% through 20225
Return Focused / Attractive Capital Structure
- » NAV growth + cumulative dividends of ~41% since 20142.6
- » Target capital structure of 45% common equity and 55% debt and preferred equity seeks to enhance common equity returns with low relative risk
0
7.
- » With capital structure implemented, targeted ~15% total return on common equity
- As of June 29, 2018.
- As of December 31, 2017. NAV includes the lending segment. See "CMCT Net Asset Value and Pro-Forma Cash NOI" on page 8 for calculation of estimated NAV and "Net Asset Value" under "Important Disclosures on page 32.
-
- Represents the percentage of CMCT's outstanding common stock owned by Urban Partners II, LLC as of June 30, 2018. As of June 30, 2018. 3801 South Congress Avenue is counted as one property but consists of 10
- buildings and one potential development site. Lindblade Media Center is counted as one property but consists of 3 buildings. Excludes Sheraton Grand Hotel in Sacramento. Includes anollary properties: one parking garage and two development sites, one of which is being used as a parking lot.
- ട്. Additional 1%-2% CAGR potential from development of already owned sites.


CMCT
CMCT is the product of a merger (the "Merger") between CIM Urban REIT, LLC ("CIM REIT"), a fund operated by CIM, and PMC Commercial Trust in Q1 2014. Represents dividends declared on our common stock from January 1, 2014 through June 30, 2018. Excludes a special dividend paid to PMC Commercial Trust's shareholders in connection with the Merger, but includes 2014 dividends received by CIM REIT shareholders prior to the Merger and dividends on convertible preferred stock received by Urban Partners II, LLC, an affiliate of CIM REIT and CIM Group, L.P., on an as converted basis in the Merger. The amounts of regular and special cash dividends per share are based on the number of shares outstanding as of the applicable record dates. NAV growth represents the change in NAV from December 31, 2013 (the last period before the Merger) to December 31, 2017. No NAV has been calculated since December 31, 2017. Past performance is not a guarantee of future results. Based on fair value.
Class A and Creative Office Portfolio in Gateway Markets
CMCT
| As of June 30, 2018 | An first anzed | Ann ualized | ||||||
|---|---|---|---|---|---|---|---|---|
| Location | Sub-Market | Rent 30 le Square Feet |
% of Total | % Occuplied | % Leased |
Pent (In thousands) |
Peut Per Occupled SF |
|
| Northern California | ||||||||
| Oakland, CA | ||||||||
| 1 Kaliser Plaza | Lake Merritt | 534.423 | 15.8% | 93.1% | 93.1% | 3 20.434 |
5 | 41.07 |
| 2101 Webster Street | Lake Merritt | 471,337 | 13.8% | 99.3% | 99.3% | 19.208 | 41.04 | |
| 1901 Harrison Street | Lake Merrit | 280.610 | 8.2% | 81.9% | 81.9% | 10.384 | 45.18 | |
| 1333 Broadway | City Center | 25 1,1 55 | 7.3% | 96.0% | 96.0% | ම මධ්ය | 41.08 | |
| 2100 Prainklin Street | Lake Merritt | 216.820 | 6.3% | 98.9% | 989% | 8.839 | 41.45 | |
| Total Oakland, CA | 1,754,353 | 51.4% | 34.1% | 94.1% | 68,820 | 41.63 | ||
| Sin Prancisco, CA | ||||||||
| 260 Townsend Street | South of Market | 66.632 | 1.9% | 100.0% | 100.0% | 4.902 | 73.51 | |
| 1130 How ard Street | South of Market | 21,194 | 0.6% | 100.0% | 100.0% | 1.454 | 68.60 | |
| Total San Francisco, CA | 37,876 | 2.5% | 100.0% | 100.0% | 6,356 | 72.33 | ||
| Total Northern Callfornia | 1,842,229 | 53.9% | 94.4% | 94.4% | S 75.176 |
4 | 43.23 | |
| Southern California | ||||||||
| Los Angeles CA | ||||||||
| 11620 Willish lire Boulevand | West Los Angelles | 194,659 | 5.7% | 97.5% | 97.5% | 5 7.655 |
5 | 40.33 |
| 47.50 Willshire Boulev and | Mid-Wilsh Ire | 143,361 | 4.2% | 100.0% | 1000% | 3,848 | 26.84 | |
| 11600 Willish lire Boulevand | West Los Angeles | 55919 | 1.6% | 87.6% | 87.6% | 2.589 | 52.85 | |
| 2 9460 Willshire Boulev and |
Beverly HIIIE | 93339 | 2.7% | 94.9% | 949% | 8.265 | 93.31 | |
| Lind blade Media Center 3 | West Los Angeles | 32428 | 0.9% | 100.0% | 1000% | 1.422 | 43.85 | |
| Total Los Ange les, CA | 519,706 | 15.1% | 36 8 % | 96.8% | 23,779 | 47.27 | ||
| Total Southern Callfornia | 519,706 | 15.1% | 36.8% | 96.8% | 3 23,779 |
3 | 47.27 | |
| 간이 | ||||||||
| Vashington, DC | ||||||||
| 999 N Capitol Street | Cap Roll Hill | 315.9:83 | 9.2% | 90.1% | 90.1% | 2 13.285 |
5 | 46 66 |
| 899 N Capitol Street | Cap Roll Hill | 314,667 | 9.2% | 86.1% | 86.1% | 14,317 | 52.84 | |
| 8301st Street | Cap Roll Hill | 247,337 | 7.2% | 100.0% | 10000% | 10,783 | 43.60 | |
| Total Washington, DC | 877,987 | 25.6% | 91.5% | 91.5% | 38,385 | 47.78 | ||
| Total Bast | 877,887 | 25 6 % | 31.5% | 91.5% | 38,385 S |
3 | 47.78 | |
| So uthwest | ||||||||
| ABARATA | ||||||||
| 3601 S Congress Aurenue 2 | South | 183.885 | 5.4% | 94.5% | 96.6% | 5 6.028 |
5 | 34.69 |
| Total Southwest | 183,885 | 5.4% | 34.5% | 96.6% | 4 6.028 |
4 | 34.69 | |
| Total Portfollo | 3,423,807 | 100.0% | 34.0% | 94.1% | 143,368 3 |
3 | 44.64 | |


-
Represents gross northy base net, as of Jone 30, 2016, multoples the ancoments. When application annualized in has been grossed po y sdoling annualized expense reimbursements to base rent. Annualized rent for oertain office properties includes rent attributable to retail.
-
9460 Wilshire Boulevard was acquired in January 2018.
-
2011 South Connect is counted as one property but consists of 1 buildings and one potential development site. Lindbide Modia Center is consists af 3 buildings.
www.clmgroup.com | 02018 CIM Group | CMCT CIM Commercial Trust Corporation
Strong Same-Store Growth Prospects
CMCT
Class A & Creative Office
- » Office assets in vibrant and improving urban communities
- » Targeting same-store NOI CAGR of 4% 6% through 20221.2
Five Year Growth Target

Additional 1%-2% CAGR potential from development of already owned sites.
Based on cash and segment NOI.
- See "CMCT - Net Asset Value and Pro-Forma Cash NOI" on page 6 for calculation of estimated NAV and "Net Asset Value" under "Important Disclosures" on page 32. The illustrative NAV per share at 2022 is based on a number of assumptions, including an increase in NOI at 5% per year, an annualized dividend rate of \$0.50 per common share and the capital structure of CMCT remaining unchanged from the date hereof. Any changes in these assumptions will affect the ability of CMCT to achieve the illustrative NAV per share. There oan be no guarantee that CMCT will be able to achieve
NOI growth of 5% per year. In addition, as discussed on page 13, CMCT is targeting a capital structure that is different from CMCT's current capital structure. Further, there can be no assurance that CMCT will maintain an annualized dividend rate per common share of \$0.50 per year.
Illustrative NAV + Common Share Dividends
- Trailing 12-month NOI excludes results for 1130 Howard Street, acquired in December 2017, and 9400 Wilshire Boulevard, acquired in January 2018. See "CMCT - Net Asset Value and Pro-Forma Cash NOI" on page 6 for calculation of estimated NAV and "Net Asset Value" under "Important Disolosures" on page 32.
www.clmgroup.com | @2018 CIM Group | CMCT CIM Commercial Trust Corporation
Maximizing Returns for Shareholders
Attractive and Flexible Capital Structure
- » Target capital structure of 45% common equity and 30% debt seeks to enhance common equity returns with low relative risk
- » Each portion of the capital stack provides superior risk adjusted returns

Capital Structure1
Target Unlevered IRR of 10-12% on Assets2
-
Based on fair value.
-
Includes acquisitions and development potential on alles already comes of 45% common equity 25% preferred equity and 30% debt. based on fair value.
www.cimgroup.com | | @2018 CIM Group | CMCT CIM Commercial Trust Corporation
CMCT
Maximizing Returns for Shareholders
» Active and strategic portfolio management to maximize returns to shareholders
Active Portfolio Management
NAV / Share + Cumulative Dividends 1.4
\$3200
-
Gross asset sales of ~\$1,197 million (\$1,114 million of net proceeds) (2015-2017)
-
Net proceeds from debt activity of ~ \$70 million (2016 & 2017)2
- » \$152 million of office acquisitions (Q4 2017-2018)
Providing Liquidity to Shareholders1
| Date | Liquidity | |
|---|---|---|
| 6/2016 | \$210 million tender offer @ \$21.00/share | |
| 4/2017 | \$0.28 per share special cash dividend | |
| 6/2017 | \$1.98 per share special cash dividend | |
| 12/2017 | \$0.73 per share special cash dividende |
- \$28.00 56,46 \$6.21 \$2,83 \$24.00 \$1,75 50.88 \$20.00 \$18.00 NAV@2014 2014YE 2014YE 2015YE 2016YE 2017YE June 30,2018 Merger NAV / Share | | Cumulstive Dividends
- In September 2016, June 2017, CMCT repurchased \$80 million, \$578 million, \$578 million and 1. \$310 million, respectively, of common shares in privately negotiated transactions from Urban Partners II, LLC. In connection with these share repurchases, CMCT paid the special cash dividends described in the table above that allowed the common stockholders that did not participate in the share repurchases to receive the economic benefit of such repurchases. Urban Partners II, LLC waived its right to receive these special cash dividends.
- 2 Excludes debt activities at the lending division.
-
- Dividend was declared in December 2017 and paid in January 2018.
-
- CMCT is the product of a merger (the "Merger") between CIM Urban REIT, LLC ("CIM REIT"), a fund operated by CIM, and PMC Commercial Trust in Q1 2014. Represents dividends declared o our
common stock from January 1, 2014 through June 30, 2018. Excludes a special dividend paid to PMC Commercial Trust's shareholders in connection with the Merger, but includes 2014 dividends received by CIM REIT shareholders prior to the Merger and dividends on convertible preferred stock received by Urban Partners II, LLC on an as converted basis in the Merger. The amount of regular and special cash dividends per share are based on the number of shares outstanding as of the applicable record dates. Past performance is not a guarantee of future results.
- NAV presented for June 30, 2018 of \$23.96 represents CMCT's NAV as of December 31, 2017. No NAV has been calculated since December 31, 2017. See "CMCT - Net Asset Value and Pro-Forma Cash NOI" on page 6 for calculation of estimated NAV and "Net Asset Value" under "Important Disclosures" on page 32.
www.clmgroup.com | @2018 ClM Group | CMCT CIM Commercial Trust Corporation
17
CMCT
CMCT
Appendix
Community Focused Urban Real Assets Strategy4
CMCT
CIM believes that its community qualification process provides it with a significant competitive advantage when making urban real asset acquisitions.
Since 1994, CM has qualified 114 communities in high barrier-to-entry markets and has owned and operated assets in 68 of those communities ! The qualification process generally takes between six months and is a critical component of CIM's urban asset evaluation.

CIM Group Qualified Communities
- As of June 30, 2018. Note that multiple communities may be qualified within a larger city www.clmgroup.com | @2018 ClM Group | CMCT CIM Commercial Trust Corporation
Resources & Expertise of Institutional Owner Operator
CMCT
CIM Group Co-Founders

Richard Ressler
CIM Group Principal, CMCT Chairman of the Board
-
Founder and President of Orchard Capital Corp., a firm through which Mr. Ressler oversees companies in which Orchard Capital or its affiliates invest
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Co-Founder and a Principal of CIM Group
-
Chairman of the board of (2 Global, Inc. (NASDAQ: JCOM) and director of Presbia PLC (NASDAQ: LENS)
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Served as Chairman and CEO of JCOM from 1997 to 2000
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Chairman of executive committee and co-founder of predecessor of Orchard First Source Asset Management, a full-service provider of capital and leveraged finance solutions to U.S. corporations
-
Co-founded and served as Vice Chairman of Brooke Group Limited, the predecessor of Vector Group, Limited (NYSE: VGR)
-
Previously worked at Drexel Burnham Lambert, Inc. and began his career as an attorney with Cravath, Swaine and Moore, LLP
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B.A. from Brown University, and J.D. and M.B.A. degrees from Columbia University

Avi Shemesh CIM Group Principal and CMCT Board Member
-
Co-Founder and a Principal of CIM Group
-
Responsible for responsible for investments, asset management, partner & co-investor relations and portfolio oversight
-
Head of CIM's Investments Group and serves on the firm's investment and Asset Management Committees
- » Real asset owner and operator for over 25 years
- » Previously was involved in a number of successful entrepreneurial real estate activities, including co-founding Dekel Development, which developed a variety of commercial and multifamily properties in Los Angeles

Shaul Kuba CIM Group Principal and CMCT Board Member
- » Co-Founder and a Principal of CIM Group
- » Responsible for the day-to-day operations of CIM Group, including leading the Development Group and sourcing new acquisitions
- » Serves on CIM's Investment and Asset Management Committees
- » Real asset owner and operator for over 25 years
- » Previously was involved in a number of successful entrepreneurial real estate activities, including co-founding Dekel Development, which developed a variety of commercial and multifamily properties in Los Angeles
www.clmgroup.com | @2018 CIM Group | CMCT CIM Commercial Trust Corporation
Resources & Expertise of Institutional Owner Operator
CMCT
CMCT Management

Charles Garner
CMCT Chief Executive Officer, CIM Group Principal
-
CEO of CMCT and serves on CIM Group's Investment Committee
-
Prior to joining CIM Group, worked closely with the firm in various capacities since 1996, including originating and managing Federal Realty Investment Trust's partnership with CIM Group
-
Has been involved in billions of dollars of real estate transactions including the acquisition, joint venture investment, disposition and equity and debt financing of more than 100 properties
-
Began career as a C.P.A. at Price waterhouseCoopers and has held various transactional positions with Federal Realty, Walker & Dunlop and The Stout & Teague Companies
-
B.S. degree in Management fromTulane University's A.B. Freeman School of Business

David Thompson
CMCT Chief Financial Officer, CIM Group Principal
- » Prior to joining CIM Group in 2009, spent 15 years with Hiton Hotels Corporation, most recently as Senior Vice President and Controller responsible for worldwide financial reporting, financial planning and analysis, risk management, internal control and technical accounting compliance
- » Tenure at Hilton included both SEC compliance as a public company and reporting as a private equity portfolio company
-
Began career as a C.P.A. at Arthur Andersen & Co.

Terry Wachsner
CIM Group Principal, Real Estate Services
- » Prior to joining CIM Group in 2005, was Director of Asset Services for Continental Development Corporation
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Prior to Continental, was Executive Managing Director for Kennedy-Wilson Properties, Ltd. where he was responsible for the operations and leasing of a 75 million square foot national portfolio of office, retail, industrial, and apartment properties.
- From 1980 to 1998, headed up Heitman Properties, Ltd. as President of Property Management

Jan Salit CMCT President and Secretary
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Joined CMCT after merger of PMC Commercial Trust
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Previously was Chairman of the Board, CEO and Secretary of PMC Commercial Trust
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Prior to CEO role, held Chief Operating Officer and Chief Investment Officer roles with PIAC Commercial Trust (joined predecessor firm in 1993)
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Prior to joining PMC Commercial Trust, held positions with Glenfed Financial Corporation (and its predecessor company ARMCO Financial Corporation) including Chief Financial Officer
www.cimgroup.com | @2018 ClM Group | CMCT CIM Commercial Trust Corporation

Key CMCT Submarket: Lake Merritt & City Center
Oakland, CA
CMCT In-Place Rents1,2 Class A Asking Rents3 \$41.69 \$49.45
Favorable Office Dynamics
- » Relative Value vs. San Francisco CBD (Class A asking rents): 3
- San Francisco \$68.03
- Oakland \$49.45
- » Limited New Office Supply in Lake Merritt / City Center: Last major office project completed in 20083
- » Proposition M: San Francisco office development limited to 875,000 square feet per year
An Improving Community
-
Transportation: All six BART lines and every major Bay Area highway run through Oakland
- » Amenities Base: Oakland emerging as a "cool" place to live and work
- » Residential Development:
- ~ 11,000 new units in 2018-2020 (v. ~ 165,000 existing)3
- Residential Monthly Asking Rents3
San Francisco - \$3,006 | Oakland - \$2,125

CMCT
| Total | 1.764.353 | 94.1% | \$41.69 | |
|---|---|---|---|---|
| 2353 Webster Street | Garage | |||
| 2 Kaiser Plaza4 | Land | |||
| 2100 Franklin Street | Office | 216,828 | 98.9% | \$41.45 |
| 1333 Broadway | Office | 251.155 | 96.0% | \$41.08 |
| 1901 Harrison Street | Office | 280,610 | 81.9% | \$45.18 |
| 2101 Webster Street | Office | 471,337 | 99.3% | \$41.04 |
| 1 Kaiser Plaza | Office | 534.423 | 93.1% | \$41.07 |
| CHCT Assots | Asset Type | Rentable SF1 | Leased %1 | Annualized Rent Per Occupied SF12 |
As of June 30, 2018.
For office properies, northy base net per square for inseas commenced as of June 3, 2010, milipind by twise. This ansom terfields total oast net before assistements. When app 2. anualized rent has been grossed up by adding annualized to base rent. Anualized rent for eeriain office properties includes rent attributible to retail.
- Source: Costar.
4 . 2 Kisare Patal 4 .8 & B quan f oct parting being as a surface partired to develop a building, which ware in the proses of designing, having are intre proses of designing, 425,000 to 800,000 rentable square feet.
Note: The examples shown have been selected to generaly if CIM and may not be representative of frium aquisitions. Past performance in ot a guarantee of fulve results.
www.clmgroup.com | ©2018 ClM Group | CMCT CIM Commercial Trust Corporation
Recent CMCT Transactions
CMCT
The examples below have been selected to generally illustrate CMT's philosophy and may not be representative of future acquisitions.
9460 Wilshire Boulevard

1130 Howard Street

| Location | Beverly Hills, CA | Location | SoMa District of San Francisco, CA | |||||
|---|---|---|---|---|---|---|---|---|
| Acquisition Date | January 2018 Acquisition Date |
December 2017 | ||||||
| Key Attributes 1. As of June 30, 2018. |
High profile location in Beverly Hills at the corner of Wilshire Boulevard and Beverly Drive Adjacent to the Four Seasons Beverly Wilshire Hotel and Rodeo Drive Strong growth opportunity as below market rents roll to market |
Key Attributes | > Located in a vibrant neighborhood that CIM believes is the preferred location for many technology firms in the city » 100% leased with weighted average term of ~6 years1 > Former concrete warehouse extensively renovated in 2016-17 |
www.cimgroup.com
Debt and Preferred Stock Summary1
CMCT
| As of June 30, 2018 | Maturity/ | Loan Balance | ||||||
|---|---|---|---|---|---|---|---|---|
| Mortgages | Interest Structure Interest Rate |
Expiration Date | (\$in thousands) | Amortization | ||||
| 1 Kaiser Plaza | Fixed | 4.14% | 07/01/2026 | S | 97,100 | VO | ||
| 2101 Webster Street | Fixed | 4.14% | 07/01/2026 | 83,000 | VO | |||
| 2100 Franklin Street | Fixed | 4.14% | 07/01/2026 | 80.000 | 110 | |||
| 1901 Harrison Street | Fixed | 4.14% | 07/01/2026 | 42,500 | 110 | |||
| 1333 Broadway | Fixed | 4.14% | 07/01/2026 | 39,500 | NO | |||
| 260 Townsend Street | Fixed | 4.14% | 07/01/2026 | 28,200 | 110 | |||
| 830 16 Street | Fixed | 4.50% | 01/05/2027 46.000 |
NO | ||||
| Total | 4.18% | S | 416,300 | |||||
| Maturity/ | Loan Balance | |||||||
| Other Debt | Interest Structure | Interest Rate | Expiration Date | (\$in thousands) | Amortization | |||
| SBA 7(a) Loan-Backed Notes | Variable | UBOR+1.40% | 03/20/2043 | 5 | 37,603 | N/A 2 | ||
| Total | S | 37,603 | ||||||
| Maturity/ | Utilization | Maxim um I im it | ||||||
| Corporate Debt | Interest Structure | Interest Rate | Expiration Date | (\$in thousands) | (\$ in thousands) | |||
| Unsecured Term Loan Facility | Variable (Hedged) | 3.16% * | 05/08/2022 | 6 | 170,000 | NA | ||
| Junior Subordinated Notes | Variable | UBOR + 3.25% | 03/30/2035 | 27,070 | NA | |||
| Unsecured Credit Facility 3 | Variable | UBOR + 1.35% | 09/30/2018 | Revolver: \$200,000 | ||||
| Total | S | 197,070 | ||||||
| Maturity / | Outstanding | TTM Fixed Charge | ||||||
| Preferred Stock | Interest Gructure | Coupon | Expiration Date | (Sin thousan ds) | Coverage Ratio | |||
| Series A | Fixed | 5.50% | NA | S | 53.747 5 | NA | ||
| Series L | Fixed | 5.50% | N/A | 229,251 | 2.85x | |||
| Total | ਵ | 282,998 |
-
Excludes: (a) \$19,962,000 of secured borrowings - government guaranteed loans, which represent sold loans that are treated as secured borrowings because the loan sales did not meet the dereoognition criteria provided for in ASC 880-30, Secured Borrowing and Collateral, and (b) premiums, discounts and debt issuance costs.
-
- In May 2018, we completed a securitization of the unguaranteed portion of certain of our SBA 7(a) loans receivable with the issuance of \$38,200,000 of unguaranteed SBA 7(a) loan-backed notes. The SBA 7(a) loan-backed notes are collateralized by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of our SBA 7(a) loans receivable. The notes mature on March 20, 2043, with monthly payments due as payments on the collateralized loans are received. Based on the anticipated repayments of our collateralized SBA 7(a) loans, we estimate the weighted average life of the notes to be approximately 3 years.
Credit Facility were based on LIBOR plus an applicable spread determined by CIM Commercial's maximum leverage ratio. As of June 30, 2018, \$0 was outstanding under the Unsecured Credit Facility and the unused capacity on the Unsecured Credit Facility at June 30, 2018 was \$200,000,000.
Our one-month LIBOR indexed variable rate borrowings are effectively converted to a fixed rate of 3.16% until May 8, 2020 through interest rate swaps.
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Outstanding Series A Preferred Stock represents total shares issued as of June 30, 2018 of 2,154,248, less redemptions of 4,385 shares, multiplied by the stated value of \$25.00 per share. Gross proceeds are not net of commissions, fees, allocated oosts or discount.
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Outstanding Series L. Preferred Stock represents total shares issued as of June 30, 2018 of 8,080,740 multiplied by the stated value of \$28.37 per share. Gross proceeds are not net of commissions, fees, allocated costs or discount.
-
At June 30, 2018, the interest rates applicable to the components of CIM Commercial's Unsecured
www.cimgroup.com | 002018 CIM Group | CMCT CIM Commercial Trust Corporation
CMCT Office Portfolio: Top 10 Tenants
CMCT
| As of June 30, 2018 | |||||||
|---|---|---|---|---|---|---|---|
| Tenant | Property | Credit Rating ( S& P / Moody's / Fitch) |
L0250 Expiration |
Annualized Rent (in thousands) |
% of Total Annualized Rent |
Rentable Square Feet |
% of Rentable Square Feet |
| U.S. Federal Go vernment Agencies 4 | Various | AA+ / A32 / AAA | 2019-2026 | 5 24,379 |
17.0% | 558 865 | 16.3% |
| Kaiser Foundation Health Plan, Inc. | 1 Kaiser Plaza / 2101 Webster | AA / - / - | 2018-2027 | 19,340 | 13.5% | 469,023 | 13.7% |
| The District of Columbia | 899 N Capitol Street | AAJ Aa1 / AA | 2021 | 11,333 | 7.9% | 205.880 | 6.0% |
| Pandora M edia. In c. | 2100 R anklin Street/2101 Webster/3001 S Congress Avenue | -1-1- | 2018-2020 | 7,420 | 52% | 187,004 | 5.5% |
| Wells Fargo Bank, N.A. | 1901 Harrison Street | A+ / Aa1 / - | 2019-2023 | 4,241 | 30% | 87,000 | 2.5% |
| Farmers Group, Inc. | 4750 Wilsh ire Bou le vard | AJ 421 - | 2019 | 3,848 | 27% | 143,381 | 42% |
| Delt a Dent al | 1333 Broadway | -1-1- | 2018-2028 | 3,712 | 26% | 82.923 | 2.4% |
| Neighborhood Rain vestment Corporation | 999 N Capito I Street | -1-1- | 2023 | 3,450 | 2.4% | 67,811 | 20% |
| MURG Union Bank, N.A. | 9460 Wilsh ire Bou le var d | AJ Aa2 / A | 2020 | 3,104 | 22% | 26,644 | 0.8% |
| Save the Children Federation, Inc. | 899 N Capito I Street | -1-1- | 2029 | 2,704 | 1.9% | 58,768 | 1.7% |
| Total for Top Ten Tenants | 83,531 | 58.4% | 1,887,159 | 55.1% | |||
| All Other Tenants | 59,837 | 41.6% | 1,331,778 | 38.9% | |||
| Vacan t | 0.0% | 204.872 | 6.0% | ||||
| Total for Portfolio | ર્ફ 143,368 |
100.0% | 3,423,807 | 100.0% |
-
Repearls gros norm of 2010, milipind by trave. This annum elects below and selected to annualer rents have applical versil.
-
Represents 7 different leases at various properties.
www.clingroup.com | @2018 CIM Group | CMCT CIM Commercial Trust Corporation
Positive Leasing Trends / Manageable Lease Expirations1
CMCT
| Three Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 30-Jun -18 | 31-Mar-18 | 31 Dec-17 | 30-Sep-17 | 30-Jun -17 | |||||||
| AH 2 | |||||||||||
| Number of Transactions | റ് | 15 | 10 | 15 | 11 | ||||||
| Rentable Square Feet | 25,898 | 61,460 | 54.444 | 142319 | 48,573 | ||||||
| All - Recurring * | |||||||||||
| New Cash Rents per Square Foot4 | S | 45.25 | S | 65.29 | 5 | 37.66 | 5 | 48.35 | S | 50.53 | |
| Expiring Cash Rents per Square Foot" | S | 38.67 | S | 50.15 | S | 29.42 | S | 38.86 | S | 44.80 | |
| Rentable Square Feet | 19,442 | 47,581 | 38,588 | 134,093 | 22910 | ||||||
| Cash Rent Spread | 17% | 30% | 28% | 24% | 13% |

Lease Expirations as a % of Annualized Office Rents
- For all periods presented, leasing activity for the assets sold prior to June 30, 2018 is excluded.
2
Based on the number of them shope has twile mombe.
Resuring meinte spoce that was vase, elated and year, elated and was a related party, nonth-to-moth-to-moth-to-moth-to-mo 3 twelve months.
-
Cash ents repear ( pross northy base ent, multiple by the before abatements. Vitere application on has been grossed up by adding annulized experse reimbursements to base rent.
-
Renesents gross northy base ent, as of Jone 30, 2013, multiple botal rent before abatements. When application annualized to based prossed pp y addrey anculted expense reimbursements to base rent.
-
Expirations are for the period from July 1, 2018 - December 31, 2018 and includes 30, 103 square feet of month-to-month leases.
www.cimgroup.com | @2018-CIM Group | CMCT CIM Commercial Trust Corporation
CMCT = Reconciliations and Important Disclosures
Net Operating Income Reconciliations (1/4)
CMCT
CIM Commercial internally evaluates the operating performance and financial results of its segments based on segment net operating income, which is defined as rental and other property income and expense reimbursements less property related expenses and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, impairment of real estate, transaction costs and provision for income taxes. For the lending segment, we define net operating income as interest income, net of interest expense and general overhead expenses. We also evaluate the operating performance and financial results of our operating segments using cash basis net operating income ("Cash NOI"). We define Cash NOI as segment NOI adjusted to exclude the effect of the straight lining of rents, acquired above/below market lease amortization and other adjustments required by GAAP.
Segment NOI and Cash NOI are not measures of operating results or cash flows from operating activities as measured by GAAP and should not be considered alternatives to income from continuing operations, or to cash flows as a measure of liquidity, or as an indication of our performance, or of our ability to pay dividends. Companies may not calculate segment NOI or Cash NOI in the same manner. We consider segment NOI and Cash NOI to be useful performance measures to investors and management because, when compared across periods, they reflect the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. Additionally, we believe that Cash NOI is helpfulto investors because it eliminates straight line rent and other noncash adjustments to revenue and expenses. Below is a reconciliation of Cash NOI to segment NOI and net income attributable to the Company for the twelve months ended December 31, 2015, 2016 and 2017, and the six months ended June 30, 2018.
(S in thousands) (Unaudited)
| Twelve Months Ended | Six Months Ended | |||||||
|---|---|---|---|---|---|---|---|---|
| December 31, 2015 | December 31,2016 | December 31,2017 | June 30, 2018 | |||||
| Net income attributable to the Company | 24,392 | 34,547 | 379,737 | 2,555 | ||||
| Tot al Segm ent NOI | S | 136,294 | S | 133.406 | ುಗ | 128,452 | ುಗ | 57,577 |
| Less Segment NOI from assets sold prior to June 30, 2018 | 56,406 | 43,589 | 28,104 | |||||
| Proforma Segment NOI | 79,888 | 89,817 | 100,348 | 57,577 | ||||
| Pro-forma Segment NOI Breakdo wn: | ||||||||
| Pro-forma Segment NOI - Lending | S | 2,794 | S | 4,556 | ಲಾ | 5,333 | ಲಾ | 3,116 |
| Pro-forma Segment NOI - Hotel | 12,227 | 13,322 | 13,388 | 8.050 | ||||
| Pro-forma Segment NOI - Office | 64,867 | 71,939 | 81,627 | 46,411 | ||||
| Pro-forma Segment NOI | 79,888 | 89,817 | 100,348 | 57,577 |
2 Kater Plaza was aquired in August 2015. The property is included in Net income attibutable to the Coment NOI beginning on the aquisition date.
1130 Hovard was acquires in December 2017. The property is included in the Company and Pro-forms Segment NO beginning on the sopisited date 940 Wishin was aquine in January 2018. The property is included in Net income attibutable to the Comany and Pro-forma Segment NOI beginning on the aquisition date.
www.clmgroup.com | @2018 ClM Group | CMCT CIM Commercial Trust Corporation
Net Operating Income Reconciliations (2/4)
CMCT
| Six Months Ended June 30, 2018 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Office | Mult if am ily | Hotel | Lending | Total | ||||||
| (S in thousands, unaudited) | ||||||||||
| Cash NOI | ડુ | 43,603 S | లు | 8,051 | 5 | 3.098 | ટે | 54.752 | ||
| Deferred rent and amortization of intangible assets, liabilities and lease inducements | 2,808 | (1) | 2,807 | |||||||
| Straight line r ent, below-market ground lease and amortization of intangible assets | 18 | 18 | ||||||||
| Segment Net Operating Income | S | 46.411 S | on | 8,050 S | 3.116 S | 67,577 | ||||
| Asset management and other fees to related parties | (11,114) | |||||||||
| Interest expense | (12,960) | |||||||||
| General and administrative | (3,435) | |||||||||
| Trans action costs | (344) | |||||||||
| Depreciation and amortization | (26,473) | |||||||||
| Income before provision for income taxes | 3,251 | |||||||||
| Provision for income taxes | (680) | |||||||||
| Net income | 2.571 | |||||||||
| Net income attributable to noncontrolling interests | (16) | |||||||||
| Net income attributable to the Company | 2.555 | |||||||||
| Twelve Months Ended December 31, 2017 | ||||||||||
| Office | Mult if am ily | Hotel | Lending | Total | ||||||
| (S in thousands, unaudited) | ||||||||||
| Cash NOI | \$ 102,918 \$ | 5,810 | క్ | 13,446 | S | 5,293 | 127,487 | |||
| Deferred rent and amortization of intangible assets, liabilities and lease inducements | 2,255 | (80) | ਤੇ | 2,172 | ||||||
| Straight line rent, below-market ground lease and amortization of intangible assets | (833) | (276) | 40 | (1,069) | ||||||
| Lease termination income | (118) | (118) | ||||||||
| Segment Net Operating Income | ತ | 104,222 \$ | 5,448 8 | 13,449 S | 5,333 S | 128,452 | ||||
| Asset management and other fees to related parties | (26,787) | |||||||||
| Interest expense | (35,924) | |||||||||
| General and administrative | (3.018) | |||||||||
| Transaction costs | (11,862) | |||||||||
| Depreciation and amortization | (58,364) | |||||||||
| Impairment of real estate | (13,100) | |||||||||
| Gain on sale of realestate | 401,737 | |||||||||
| Income before provision for income taxes | 381,134 |
www.clmgroup.com | ©2018 ClM Group | CMCT ClM Commercial Trust Corporation
Net income attributable to noncontrolling interests
Net income attributable to the Company
Provision for income taxes
Net income
29
(1,376)
(21)
379,758
\$ 379,737
Net Operating Income Reconciliations (3/4)
CMCT
| Twelve Months Ended December 31, 2016 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office | Mult if am ily | Hotel | Lending | Total | ||||||||
| (S in thous ands, unaudited) | ||||||||||||
| Cash NOI | ਫ਼ | 99,448 | 3 | 8,583 | ವಿ | 15,917 | 2 | 4,522 | ટે | 128,470 | ||
| Deferred rent and amortization of intangible assets, liabilities and lease inducements | 6.687 | (86) | 3 | 6.584 | ||||||||
| Straight line r ent, below-market ground lease and amortization of intangible assets | (1,249) | (551) | 34 | (1,766 | ||||||||
| Lease termination income | 118 | 118 | ||||||||||
| Segment Net Operating Income | 104.984 | 2 | 7.946 \$ | 15,920 | S | 4,556 | 2 | 133,406 | ||||
| Asset management and other fees to related parties | (30,327 | |||||||||||
| Interest expense | (33,848) | |||||||||||
| General and administrative | (4.231) | |||||||||||
| Transaction costs | (340) | |||||||||||
| Depreciation and amortization | (71,968) | |||||||||||
| Gain on sale of realestate | 39,668 | |||||||||||
| Income from continuing operations before provision for income taxes | 32,358 | |||||||||||
| Provision for income taxes | (1,646) | |||||||||||
| Net income from continuing operations | 30,712 | |||||||||||
| Discontinued oper ations | ||||||||||||
| Income from operations of assets held for sale | 3,853 | |||||||||||
| Net income from discontinued oper ations | 3,853 | |||||||||||
| Net income | 34,566 | |||||||||||
| Net income attributable to noncontrolling interests | (18) | |||||||||||
| Net income attributable to the Company | 34,547 | |||||||||||
www.clmgroup.com | | ©2018 ClM Group | CMCT CIM Commercial Trust Corporation
Net Operating Income Reconciliations (4/4)
CMCT
| Twelve Months Ended December 31, 2015 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Office | Mult if am ily | Hotel | Lending | Total | |||||||
| (\$ in thousands, unaudited) | |||||||||||
| Cash NOI | ഗ് | 102,792 | 3 | 6,758 | 3 | 19.458 | 5 | 2,860 | S | 131,868 | |
| Deferred rent and amortization of intangible assets, liabilities and lease inducements | 6.485 | 346 | प | 6.835 | |||||||
| Bad debt expense | (510) | (510) | |||||||||
| Straight line r ent, below-market ground lease and amortization of intangible assets | (1,282) | (551) | (ଇଣ) | (1,899) | |||||||
| Segment Net Operating Income | 107.485 \$ | 6,553 3 | 19.462 \$ | 2.794 | 136.294 | ||||||
| Asset management and other fees to related parties | (29,319) | ||||||||||
| Interest expense | (22,785) | ||||||||||
| General and administrative | (6.621) | ||||||||||
| Transaction costs | (1,382) | ||||||||||
| Depreciation and amortization | (72,361) | ||||||||||
| Gain on sale of real estate | 3,092 | ||||||||||
| Income from continuing operations | 6,918 | ||||||||||
| Provision for income taxes | (808) | ||||||||||
| Net income from continuing operations | 6,112 | ||||||||||
| Discontinued oper ations | |||||||||||
| Income from operations of assets held for sale | 13,140 | ||||||||||
| Gain on disposition of assets held for sale | 5,151 | ||||||||||
| Net income from discontinued operations | 18,291 | ||||||||||
| Net income | 24.403 | ||||||||||
| Net income attributable to noncontrolling interests | (11) | ||||||||||
| Net income attributable to the Company | 24,392 | ||||||||||
www.clmgroup.com | ©2018 ClM Group | CMCT CIM Commercial Trust Corporation
Important Disclosures
Assets Owned and Operated
Assets Owned and Operated (AOO) represents the aggregate assets owned and operated by CIM on behalf of partners (including where CIM contributes alongside for its own account)and co-investors, whether or not CIM has discretion, in each case without duplication. AOO includes total gross assets at fair value, with real assets presented on the basis described in the Book Value disclosure and operating companies presented at gross assets less debt, as of March 31, 2018 (the "Report Date") (including the shares of such assets owned by joint venture partners and co-investments), plus binding unfunded commitments. AOO also includes the \$0.3 billion of AOO attributable to CIM Compass Latin America (CCLA), which is 50% owned and jointly operated by CIM. AOO for CMMT Partners, L.P. (which represents assets under management), a perpetual-life real estate debt fund, is \$0.4 billion as of the Report Date
Book Value for each investment generally represents the investment's book value as reflected in the applicable fund's unaudited financial statements as of the Report Date prepared in accordance with U.S. generally accepted accounting principles on a fair value basis. These book values generally represent the asset's third-party appraised value as of the Report Date, but in the case of CIM's Cole Net-Lease Asset strategy, book values generally represent undepreciated cost (as reflected in SEC-filed financial statements).
Net Asset Value (NAV) represents the distributable amount based on a "hypothetical liquidation" assuming that on the date of determination that: (i) investments are sold at their Book Values; (ii) debts are paid and other assets are collected; and (iii) appropriate adjustments and/or allocations between equity partners are made in accordance with applicable documents, as determined in accordance with applicable accounting guidance.
Net Asset Value
As of December 31, 2017, we have established an estimated NAV per share of Common Stock of \$23.96. Neither the Financial Industry Requiatory Authority northe Securities and Exchange Commission provides rules on the methodology we must use to determine our estimated NAV per share. The determination of estimated NAV involves a number of subjective assumptions, estimates and judgments that may not be accurate or complete. We believe there is no established practice among public RETTs for calculating estimated NAV. Different firms using different property-specific, general real estate, capital markets, economic and other assumptions, estimates and judgments could derive an estimated NAV that is significantly different from our estimated NAV. Thus, other public RETS' methodologies used to calculate estimated NAV may differ materially from ours. Additionally, the estimated NAV does not give effect to changes in value, investment activities, capital activities, indebtedness levels, and other various activities occurring after December 31, 2017 that would have an impact on our estimated NAV.
CMCT
The estimated NAV per share of \$23.96 was calculated relying in part on appraisals of our real estate assets and the assets of our lending segment. The table "Estimated Net Asset Value" on page 6 sets forth the material items included in the calculation of our estimated NAV. We engaged various third party appraisal firms to perform appraisals of our real estate assets and the assets of our lending segment as of December 31, 2017. Except for one office property acquired in December 2017, which was based on the purchase price (including transaction costs that were capitalized and assumption of liabilities) negotiated with the unrelated third-party seller, the fair values of our investments in real estate were based on appraisals obtained as of December 31, 2017. The fair values of the assets of our lending segment were based on an appraisal obtained as of December 31, 2017.
The December 31, 2017 appraisals were performed in accordance with standards set forth by the American Institute of Certified Public Accountants. Each of our appraisals were prepared by personnel who are subject to and in compliance with the code of professional ethics and the standards of professional conduct set forth by the certification programs of the professional appraisal organizations of which they are members