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CMCT CIM Commercial Trust

CIM Commercial Trust Corp. engages in the acquisition, ownership, and operation of Class A and office assets. It operates through the following segments: Office, Hotel, Multifamily, and Lending. The Office segment consists of rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The Hotel segment relates to operations of hotel properties and rental income generated from a garage located directly across the street from one of the hotels. The Multifamily segment refers to rental of apartments and other tenant services. The Lending segment includes income from the yield and other related fee income earned on its loans receivable. The company was founded in 1979 and is headquartered in Dallas, TX.

Company profile

Ticker
CMCT, CMCTP
Exchange
CEO
David Thompson
Employees
Incorporated
Location
Fiscal year end
Former names
PMC COMMERCIAL TRUST /TX
SEC CIK
IRS number
756446078

CMCT stock data

(
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Calendar

16 Mar 21
13 Apr 21
31 Dec 21
Quarter (USD)
Dec 20 Sep 20 Jun 20 Mar 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 43.65M 43.65M 43.65M 43.65M 43.65M 43.65M
Cash burn (monthly) (positive/no burn) (positive/no burn) 1.46M 1.31M (positive/no burn) (positive/no burn)
Cash used (since last report) n/a n/a 5.03M 4.52M n/a n/a
Cash remaining n/a n/a 38.62M 39.13M n/a n/a
Runway (months of cash) n/a n/a 26.5 29.8 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
21 Jan 21 CIM Capital Series A Preferred Shares Buy Aquire P No No 25 96,740 2.42M 287,199
21 Jan 21 Avraham Shemesh Series A Preferred Shares Buy Aquire P Yes No 25 96,740 2.42M 298,472
21 Jan 21 Ressler Richard S Series A Preferred Shares Buy Aquire P Yes No 25 96,740 2.42M 298,472
21 Jan 21 Kuba Shaul Series A Preferred Shares Buy Aquire P Yes No 25 96,740 2.42M 298,472

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

13F holders
Current Prev Q Change
Total holders 0 0
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares
Current Prev Q Change
Total value 0 0
Total shares 0 0
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners
Shares Value Change
Largest transactions
Shares Bought/sold Change
IFP Advisors 0 0

Financial report summary

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Competition
Avraham Shemesh
Risks
  • Our future success depends on the performance of the Administrator and the Operator, their respective key personnel and their access to the investment professionals of CIM Group. We may not find suitable replacements if such key personnel or investment professionals leave the employment of the Administrator, the Operator or other applicable affiliates of CIM Group or if such key personnel or investment professionals otherwise become unavailable to us.
  • If we seek to internalize the management functions provided pursuant to the Master Services Agreement and the Investment Management Agreement, we could incur substantial costs and lose certain key personnel.
  • Uninsured losses or losses in excess of our insurance coverage could materially adversely affect our financial condition and cash flows, and there can be no assurance as to future costs and the scope of coverage that may be available under insurance policies.
  • Cybersecurity risks and cyber incidents may adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential information, and or damage to our business relationships, all of which could negatively impact our financial results.
  • If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results.
  • The outbreak of COVID-19 has negatively affected and will likely continue to negatively affect our business, financial condition, results of operations and cash flows.
  • The COVID-19 pandemic has had, and may continue to have, significant impacts on workplace practices and those changes, or other office space utilization trends, could impact our business.
  • Neither the Master Services Agreement nor the Investment Management Agreement may be terminated by us (except in limited circumstances for cause in the case of the Master Services Agreement) and the Master Services Agreement may be assigned by the Administrator in certain circumstances without our consent, either or both of which may have a material adverse effect on us.
  • The Administrator and Operator are entitled to receive fees for the services they provide regardless of our performance, which may reduce their incentive to devote time and resources to our portfolio.
  • The Operator may undertake transactions that are motivated, in whole or in part, by a desire to increase its compensation.
  • The Operator, the Administrator and their respective affiliates engage in real estate activities that could compete with us and our subsidiaries, which could result in decisions that are not in the best interests of our stockholders.
  • Certain of our directors and executive officers may face conflicts of interest related to positions they hold with the Operator, the Administrator, CIM Group and their affiliates, which could result in decisions that are not in the best interest of our stockholders.
  • Certain provisions of the MGCL could inhibit changes in control.
  • The Operator may change its acquisition process, or elect not to follow it, without stockholder consent at any time, which may adversely affect returns on our assets.
  • The power of the Board of Directors to revoke our REIT election without stockholder approval may cause adverse consequences to our stockholders.
  • The MGCL or our charter may limit the ability of our stockholders or us to recover on a claim against a director or officer who negligently causes us to incur losses.
  • The liability of the Administrator and the Operator to us under the Master Services Agreement and the Investment Management Agreement, respectively, is limited and we and CIM Urban have agreed to indemnify the Administrator and the Operator, respectively, against certain liabilities. As a result, we could experience poor performance or losses for which neither the Administrator nor the Operator would be liable.
  • Our operating performance is subject to risks associated with the real estate industry.
  • A significant portion of our properties, by aggregate net operating income and square feet, are located in California. We are dependent on the California real estate market and economy, and are therefore susceptible to risks of events in the California market that could adversely affect our business, such as adverse market conditions, changes in local laws or regulations and natural disasters.
  • Capital and credit market conditions may adversely affect demand for our properties and the overall availability and cost of credit.
  • Tenant concentration increases the risk that cash flow could be interrupted.
  • If a major tenant declares bankruptcy, we may be unable to collect balances due under relevant leases, which could have a material adverse effect on our financial condition and ability to pay distributions to our stockholders.
  • We have assumed, and in the future may assume, liabilities in connection with our property acquisitions, including unknown liabilities.
  • We may be adversely affected by trends in the office real estate industry.
  • We may be unable to renew leases or lease vacant office space.
  • A significant portion of our net operating income is expected to come from our hotel and, as a result, our operating performance is subject to the cyclical nature of the lodging industry.
  • The outbreak of a highly infectious, contagious or widespread disease, such as COVID-19, could reduce travel and adversely affect demand for our hotel.
  • The seasonality of the lodging industry may cause quarterly fluctuations in our revenues.
  • Our hotel has an ongoing need for renovations and potentially significant capital expenditures and the costs of such activities may exceed our expectations.
  • The increasing use of online travel intermediaries by consumers may adversely affect our profitability.
  • Increased use of technology may reduce the need for business-related travel.
  • We are subject to risks associated with the employment of hotel personnel, particularly with respect to unionized labor.
  • We may be unable to deploy capital in a way that grows our business and, even if consummated, we may fail to successfully integrate and operate acquired properties.
  • We may be unable to successfully expand our operations into new markets.
  • Certain of our properties were subject to impairment charges prior to their sales, and any of our properties may be subject to impairment charges in the future.
  • We may obtain only limited warranties when we purchase a property and typically have only limited recourse in the event our due diligence did not identify any issues that lower the value of our property.
  • We may be unable to sell a property if or when we decide to do so, including as a result of uncertain market conditions.
  • We may be unable to secure funds for our future long-term liquidity needs.
  • Income from our long-term leases is an important source of our cash flow from operations and is subject to risks related to increases in expenses and inflation.
  • We may finance properties with lock-out provisions, which may prohibit us from selling a property or may require us to maintain specified debt levels for a period of years on some properties.
  • Increased operating expenses could reduce cash flow from operations and funds available to deploy capital or make distributions.
  • The market environment may adversely affect our operating results, financial condition and ability to pay distributions to our stockholders.
  • Real estate-related taxes may increase, and if these increases are not passed on to tenants, our income will be reduced.
  • Our operating results may be negatively affected by development and construction delays and the resultant increased costs and risks.
  • We face significant competition.
  • In connection with the ownership and operation of real estate assets, we may be liable for costs and damages related to environmental matters.
  • Ownership of real estate is subject to risks from adverse weather, natural disasters and climate events.
  • Compliance with the ADA and fire, safety and other regulations may require us to make unanticipated expenditures that could significantly reduce the cash available for distributions on our Common Stock or Preferred Stock.
  • We have incurred significant indebtedness and may incur significant additional indebtedness on a consolidated basis.
  • We intend to rely in part on external sources of capital to fund future capital needs and, if we encounter difficulty in obtaining such capital, we may not be able to meet maturing obligations or make additional acquisitions.
  • High interest rates may make it difficult for us to finance or refinance assets, which could reduce the number of properties we can acquire and the amount of cash distributions we can make.
  • Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to pay distributions to our stockholders.
  • We may not be able to generate sufficient cash flow to meet our debt service obligations.
  • Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions on our Common Stock or Preferred Stock.
  • Interest-only indebtedness may increase our risk of default and ultimately may reduce our funds available for distribution to our stockholders.
  • We may be adversely affected by the potential discontinuation of the London Interbank Offered Rate (“LIBOR”).
  • Our loans secured by real estate and our REO properties are typically illiquid and their values may decrease.
  • Our lending operations have an industry concentration, which may negatively impact our financial condition and results of operations.
  • Establishing loan loss reserves entails significant judgment and may negatively impact our results of operations.
  • Our SBA 7(a) Program loans are subject to delinquency, foreclosure and loss, any or all of which could result in losses.
  • We operate in a competitive market for real estate opportunities and future competition for commercial real estate collateralized loans may limit our ability to originate or dispose of our target loans and could also affect the yield of these loans.
  • We may be subject to lender liability claims.
  • Failure to qualify and maintain our qualification as a REIT would have significant adverse consequences to us and the value of our securities.
  • Dividends payable by REITs do not qualify for the reduced tax rates available for some dividends.
  • Our ownership of and relationship with our taxable REIT subsidiaries will be limited, and a failure to comply with the limits would jeopardize our REIT status and may result in the application of a 100% excise tax.
  • We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability or reduce our operating flexibility, including changes resulting from the recently passed Tax Cuts and Jobs Act.
  • REIT annual distribution requirements may force us to forgo otherwise attractive opportunities or borrow funds during unfavorable market conditions. This could delay or hinder our ability to meet our objectives and reduce our stockholders’ overall return.
  • Non-U.S. stockholders may be subject to U.S. federal withholding tax and may be subject to U.S. federal income tax upon the disposition of our shares.
  • Complying with REIT requirements may limit our ability to hedge our liabilities effectively and may cause us to incur tax liabilities.
  • Our property taxes could increase due to property tax rate changes or reassessment, which would impact our cash flows.
  • REIT stockholders can receive taxable income without cash distributions.
  • The share transfer and ownership restrictions applicable to REITs and contained in our charter may inhibit market activity in our shares of stock and restrict our business combination opportunities.
  • There is no public market for our Series A Preferred Stock or Series D Preferred Stock, and we do not expect any such market to develop.
  • Neither the Series A Preferred Stock nor the Series D Preferred Stock has been rated.
  • We may issue shares of our Common Stock at prices below the then-current NAV per share of our Common Stock, which could materially reduce our NAV per share of our Common Stock.
  • Changes in market conditions could adversely affect the market prices of our Common Stock and Series L Preferred Stock.
  • Our Common Stock ranks, with respect to dividends, junior to our Series A Preferred Stock, Series D Preferred Stock and, except to the extent of the Initial Dividend (as defined below), our Series L Preferred Stock.
  • Our Common Stock ranks, with respect to rights upon liquidation, dissolution or winding up of the Company, junior to the Series A Preferred Stock, Series D Preferred Stock and, other than to a limited extent, the Series L Preferred Stock.
  • Holders of our securities may be required to recognize taxable income in excess of any cash or other distributions received from us, and non-U.S. stockholders could be subject to withholding tax on such amounts.
  • The redemption price of shares of Preferred Stock may be paid, in our sole discretion in cash or in shares of Common Stock, which ranks junior to our Preferred Stock (other than to the Series L Preferred Stock to the extent of the Initial Dividend).
  • We have the option to redeem shares of Preferred Stock under certain circumstances without the consent of their holders.
  • We may suffer from delays in deploying capital, which could adversely affect our ability to pay distributions to our stockholders and the value of our securities.
  • The cash distributions received by holders of our Preferred Stock and Common Stock may be less frequent or lower in amount than expected by such holders.
  • Our ability to redeem shares of our Preferred Stock, or to pay distributions on our Preferred Stock and Common Stock, may be limited by Maryland law.
  • Holders of our securities are subject to inflation risk.
  • The transfer and ownership restrictions applicable to our securities may impair the ability of stockholders to receive shares of our Common Stock upon exercise of the Series A Preferred Warrants and, if the Company elects to pay the redemption price in shares of Common Stock, upon redemption of the Preferred Stock.
  • The terms of our Preferred Stock do not contain any financial covenants, other than, with respect to the Series L Preferred Stock, a limited restriction on our ability to issue shares of preferred stock.
  • Holders of our Preferred Stock have no voting rights with respect to such shares.
  • The ownership percentage in the Company of a holder may become diluted if we issue new shares of Common Stock or other securities, and issuances of additional preferred stock or other securities by us may further subordinate the rights of the holders of our Preferred Stock or Common Stock (which holders of Preferred Stock may become upon receipt of redemption payments in shares of Common Stock). Additionally, future issuances of Common Stock, including shares issued in exchange for consideration, upon redemption of Preferred Stock or upon exercise of any Series A Preferred Warrants, may cause the market price of our Common Stock to drop significantly, even if our business is doing well.
  • The listing of our Common Stock and Series L Preferred Stock on more than one stock exchange may result in price variations that could adversely affect liquidity of the market for our Common Stock and or Series L Preferred Stock.
  • The existing mechanism for the dual‑listing of securities on Nasdaq and the TASE may be eliminated or otherwise altered such that we may be subject to additional regulatory burden and additional costs.
  • Our NAV is an estimate of the fair value of our properties and real estate-related assets and may not necessarily reflect realizable value.
  • We may be unable to pay or maintain cash distributions or increase distributions to stockholders over time.
  • Distributions at any point in time may not reflect the current performance of our properties or our current operating cash flow.
  • Changes in accounting standards may adversely impact our financial condition and or results of operations.
Management Discussion
  • Net loss increased to $(15.0) million, or by $(360.5) million, for the year ended December 31, 2020, compared to $345.5 million for the year ended December 31, 2019, primarily due to the 2019 Asset Sales and the adverse impact of
  • COVID-19. Refer to “Summary Segment Results” below for a more complete discussion of the factors impacting our performance.
  • During the years ended December 31, 2020 and 2019, CIM Commercial operated in three segments: office and hotel properties and lending. Set forth and described below are summary segment results for our operating segments.
Content analysis
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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
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