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

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

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

The Company registered $247.0 million of shares of common stock under the DRIP (the “Initial DRIP Offering”) pursuant to a Registration Statement filed on Form S-3 (Registration No. 333-192958) (the “Initial DRIP Offering”), which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 19, 2013 and automatically became effective with the SEC upon filing. The Company ceased issuing shares under the Initial DRIP Offering effective as of June 30, 2016. At the completion of the Initial DRIP Offering, a total of approximately $241.7 million of shares of common stock had been issued. The remaining $5.3 million of unsold shares from the Initial DRIP Offering were deregistered.

The Company registered an additional $600.0 million of shares of common stock under the DRIP pursuant to a Registration Statement filed on Form S-3 (Registration No. 333-212832) (the “Secondary DRIP Offering,” and together with the Initial DRIP Offering, the “DRIP Offerings,” and the DRIP Offerings collectively with the Offering, the “Offerings”) pursuant to a Registration Statement on Form S-3 (Registration No. 333-212832), which was filed with the SEC on August 2, 2016 and automatically became effective with the SEC upon filing. The Company began to issue shares under the Secondary DRIP Offering on August 2, 2016 and will continue to issue shares under the Secondary DRIP Offering.

On September 27, 2015, the Company announced that its board of directors (the “Board”) had establishedThe Board establishes an updated estimated per share net asset value (“NAV”) of the Company’s common stock as of August 31, 2015, of $9.70 per shareon at least an annual basis for purposes of assisting broker-dealers that participated in the Offering in meeting their customer account statement reporting obligations under National AssociationFinancial Industry Regulatory Authority Rule 2231. Distributions are reinvested in shares of Securities Dealers Conduct Rule 2340. On November 10, 2016,the

Company’s common stock under the Board established an updatedDRIP at the estimated per share net asset value (“NAV”)NAV as determined by the Board. Additionally, the estimated per share NAV as determined by the Board serves as the per share NAV for purposes of the Company’s common stock, asshare redemption program. As of September 30, 2016, of $9.92 per share. On March 24, 2017,31, 2022, the Board established an updated estimated per share NAV of the Company’s common stock was $7.20, which was established by the Board on May 25, 2021 using a valuation date of March 31, 2021. Commencing on May 26, 2021, $7.20 served as of December 31, 2016, of $10.08 per share. In determining the estimated per share NAVsNAV under the DRIP. The Board previously established a per share NAV as of August 31, 2015, September 30, 2016, and December 31, 2016, the Board considered informationDecember 31, 2017, December 31, 2018, December 31, 2019, March 31, 2020 and analysis, including valuation materials that were provided by a third-party valuation expert, information provided by CR IV Advisors, and the estimated per share NAV recommendation made by the valuation committee of the Board, which committee is comprised entirely of independent directors.June 30, 2020. The Company’s estimated per share NAVs are not audited or reviewed by its independent registered public accounting firm.

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”), in all material respects, and have been consistently applied in preparing the accompanying condensed consolidated financial statements.

Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the SEC regarding interim financial reporting, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements for the interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods. Results for these interim periods are not necessarily indicative of full year results.

The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and the Consolidated Joint Venture in which the Company has a controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation.

The Company evaluates its relationships and investments to determine if it has variable interests. A variable interest is an investment or other interest that will absorb portions of an entity’s expected losses or receive portions of the entity’s expected residual returns. IfIn determining whether the Company determines that it has a variable interestcontrolling interests in an entity it evaluatesand the requirement to consolidate the accounts in that entity, the Company analyzes its investments in real estate in accordance with standards set forth in GAAP to determine whether such interest is in athey are variable interest entities (“VIEs”), and if so, whether the Company is the primary beneficiary. The Company’s judgment with respect to its level of influence or control over an entity (“VIE”). VIEs are entities where investors lack sufficient equity at risk forand whether the entity to finance its activities without additional subordinated financial support or where equity investors, as a group, lack one of the following characteristics: (a) the power to direct the activities that most significantly impact the entity’s economic performance, (b) the obligation to absorb the expected losses of the entity, or (c) the right to receive the expected returns of the entity. The Company consolidates any VIEs when it is determined to be the primary beneficiary of a VIE involves consideration of various factors, including the VIE’s operations.

A VIE must be consolidated by its primary beneficiary, which is generally defined as the party who has a controlling financial interestCertain amounts in the VIE. The Company qualitatively assesses whether it is (or is not) the primary beneficiary of a VIE. Consideration of various factors include, but are not limitedCompany’s prior period condensed consolidated financial statements have been reclassified to conform to the Company’s ability to direct the activities that most significantly impact the entity’s economic performance and its obligation to absorb losses fromcurrent period presentation. Other than as shown below, these reclassifications had no effect on previously reported totals or right to receive benefits of the VIE that could potentially be significantsubtotals. The reclassifications have been made to the VIE. The Company consolidates any VIEs when the Company is determined to be the primary beneficiarycondensed consolidated balance sheet as of the VIE,December 31, 2021, and the difference between consolidating the VIE and accounting for it using the equity method could be material to the Company’scondensed consolidated financial statements. The Company continually evaluatesstatements of operations and condensed consolidated statement of cash flows for the need to consolidate any VIEs based on standards set forth in GAAPthree months ended March 31, 2021 as described above.follows (in thousands):

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions

Real Estate InvestmentsAssets

Recoverability of Real Estate Assets

The Company continually monitors events and changes in circumstances that could indicate that the carrying amounts of its real estate assets may not be recoverable. Impairment indicators that the Company considers include, but are not limited to,to: bankruptcy or other credit concerns of a property’s major tenant, such as a history of late payments, rentallease concessions and other factors,factors; a significant decrease in a property’s revenues due to lease terminations, vacancies,terminations; vacancies; co-tenancy clauses,clauses; reduced lease rates or other circumstances.rates; changes in anticipated holding periods; and significant increases to budgeted costs for units under development. When indicators of potential impairment are present, the Company assesses the recoverability of the assets by determining whether the carrying amount of the assets will be recovered through the undiscounted future cash flows expected from the use of the assets

and their eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying amount, the Company will adjust the real estate assets to their respective fair values and recognize an impairment loss. Generally, fair value is determined using a discounted cash flow analysis and recent comparable sales transactions. AsDuring the three months ended March 31, 2022, as part of the Company’s quarterly impairment review procedures, the Company recorded impairment charges of $1.7$3.3 million related to one property7 properties, all of which was due to sales prices that were less than their respective carrying values. The Company’s impairment assessment as aof March 31, 2022 was based on the most current information available to the Company, including expected holding periods. If the Company’s expected holding periods for assets change, subsequent tests for impairment could result of delinquent rental paymentsin additional impairment charges in the future. The Company cannot provide any assurance that additional material impairment charges with respect to the Company’s real estate assets will not occur during 2022 or in future periods. During the ninethree months ended September 30, 2017. As part of the Company’s quarterly impairment review procedures,March 31, 2021, the Company recorded impairment charges of $1.4$4.3 million related to one property leased5 properties, of which impairment at 3 properties was due to a tenantsales prices that filed for bankruptcy during the nine months ended September 30, 2016.were less than their respective carrying values and impairment at 2 properties was due to vacancy. The assumptions and uncertainties utilized in the evaluation of the impairment of real estate

Assets Held for Sale

When a real estate asset is identified by the Company as held for sale, the Company will cease recording depreciation and amortization of the assets related to the property and estimate theits fair value, net of selling costs. If, in management’s opinion, the fair value, net of selling costs, of the asset is less than the carrying amount of the asset, an adjustment to the carrying amount would beis then recorded to reflect the estimated fair value of the property, net of selling costs. During the nine months ended September 30, 2017,As of March 31, 2022, the Company identified one property26 properties with a carrying value of $487.5 million as held for sale, 25 of which was soldare in connection with the Purchase and Sale Agreement (as defined in Note 4 — Real Estate Assets). The Company has mortgage notes payable of $344.2 million that are related to the held for sale properties, all of which the Company expects to repay or transfer to the buyer in connection with the disposition of the underlying held for sale properties. The Company disposed of certain of these properties in phases subsequent to September 30, 2017,March 31, 2022, as further discussed in Note 1417 — Subsequent Events. There were no assetsAs of December 31, 2021, in connection with the Purchase and Sale Agreement, the Company identified 81 properties with a carrying value of $1.3 billion as held for sale, as of Decemberwhich 56 such properties closed during the three months ended March 31, 2016.2022.

Allocation of Purchase Price of Real Estate Assets

Upon the acquisition of real properties, the Company allocates the purchase price including acquisition-related fees and certain acquisition-related expenses after the adoption of ASU 2017-01, to acquired tangible assets, consisting of land, buildings and improvements, and to identified intangible assets and liabilities, consisting of the value of above- and below-market leases and the value of in-place leases and other intangibles, based in each case on their respectiverelative fair values. The Company utilizes independent appraisals to assist in the determination of the fair values of the tangible assets of an acquired property (which includes land and buildings). The information in the appraisal, along with any additional information available to the Company’s management, is used in estimating the amount of the purchase price that is allocated to land. Other information in the appraisal, such as building value and market rents, may be used by the Company’s management in estimating the allocation of purchase price to the building and to intangible lease assets and liabilities. The appraisal firm has no involvement in management’s allocation decisions other than providing this market information.

The determination of the fair values of the real estate assets and liabilities acquired requires the use of significant assumptions with regard to the current market rental rates, rental growth rates, capitalization and discount rates, interest rates and other variables. The use of alternative estimates may result in a different allocation of the Company’s purchase price, which could materially impact the Company’s results of operations.

Certain acquisition-related expenses related to asset acquisitions are capitalized and allocated to tangible and intangible assets and liabilities, as described above. Acquisition-related manager expense reimbursements are expensed as incurred and are included in Held-to-Maturity Securitiesexpense reimbursements to related parties in the accompanying condensed consolidated statements of operations. Other acquisition-related expenses continue to be expensed as incurred and are included in transaction-related expenses in the accompanying condensed consolidated statements of operations.

CMFT MT JV Holdings, LLC, an indirect wholly-owned subsidiary of the Company, is engaged in an unconsolidated joint venture arrangement through CIM NP JV Holdings, LLC (“NP JV Holdings”) (the “Unconsolidated Joint Venture”) of which it owns 50% of the outstanding equity. Through the Unconsolidated Joint Venture, which holds 90% of the membership interest in NewPoint JV, LLC (“NewPoint JV”) pursuant to the terms of the Operating Agreement entered into between the Unconsolidated Joint Venture and NewPoint Bridge Lending, LLC, the Company indirectly owns 45% of the outstanding equity of the NewPoint JV on a fully diluted basis. The Company accounts for its investment under the equity method. The Company has investments classifiedelected the fair value option (“FVO”) for its equity method investment and therefore reports this investment at fair value. The equity method of accounting requires the investment to be initially recorded at cost, including transaction costs incurred to finalize the investment, and is subsequently adjusted for the Company’s share of equity in NP JV Holdings’ earnings and distributions. The Company records its share of NP JV Holdings’ profits or losses on a quarterly basis as held-to-maturity securities,an adjustment to the carrying value of the investment on the Company’s condensed consolidated balance sheet and such share is recognized as a profit or loss on the condensed consolidated statements of operations. The Company recorded a gain totaling $168,000, which consistrepresented its share of revenue bonds acquiredNP JV Holdings’ gain, during the three months ended March 31, 2022 in connection with the purchasecondensed consolidated statements of operations. During the three months ended March 31, 2022, the Company contributed an anchored shopping center. The bonds have a 9.0% interest rate and mature on November 1, 2044.additional $24.8 million in NP JV Holdings. As of September 30, 2017,March 31, 2022, the Company classified these investments as held-to-maturity as the Company has the intent and ability to hold the securities to maturity. These investments are initially recognizedCompany’s aggregate investment in prepaid expenses, derivative assets, revenue bonds and other assetsNP JV Holdings of $78.4 million is included in investment in unconsolidated entities on the condensed consolidated balance sheets and are subsequently measured using amortized cost.

Redeemable Noncontrolling Interest in Consolidated Joint Venture

On June 27, 2014, the Company completed the formation of the Consolidated Joint Venture. Pursuant to the joint venture agreement, the joint venture partner has a right to exercise an option (the “Option”), which became effective on June 27, 2016, whereby the Company will be required to purchase the ownership interest of the joint venture partner at fair market value. As of September 30, 2017, the Option has not been exercised. The Company determined it hadhas a controlling interest in the Consolidated Joint Venture and, therefore, metmeets the GAAP requirements for consolidation. The Company recorded net income of $99,000$9,000 and paid distributions of $214,000 related$14,000 to the noncontrolling interest during the ninethree months ended September 30, 2017.March 31, 2022. The Company recorded the noncontrolling interest of $2.4$1.1 million as temporary equity in the mezzanine section of both March 31, 2022 and December 31, 2021 on the condensed consolidated balance sheets, due to the ability to exercise the Option being outside the control of the Company.

Restricted Cash

Real estate-related securities consists primarily of the lease.Company’s investment in commercial mortgage-backed securities (“CMBS”), preferred units, and equity securities. The Company determines the appropriate classification for real estate-related securities at the time of purchase and reevaluates such designation as of each balance sheet date.

The Company monitors its available-for-sale securities for changes in fair value. Current expected credit losses are recorded when the Company acquires CMBS, and any subsequent impairment is recognized when the Company determines that a decline in the estimated fair value of a security below its amortized cost has resulted from a credit loss or other factors. The Company records rentalimpairments related to credit losses through current expected credit losses. However, the allowance is limited by the amount that the fair value is less than the amortized cost basis. The Company considers many factors in determining whether a credit loss exists, including, but not limited to, the extent to which the fair value is less than the amortized cost basis, recent events specific to the security, industry or geographic area, the payment structure of the security, the failure of the issuer of the security to make scheduled interest or principal payments, and external credit ratings and recent changes in such ratings. The analysis of determining whether a credit loss exists requires significant judgments and assumptions. The use of alternative judgments and assumptions could result in a different conclusion. During the three months ended March 31, 2022 and 2021, the Company did not record current expected credit losses related to CMBS.

Interest earned is either received in cash or capitalized to real estate-related securities in the Company’s condensed consolidated balance sheets. Interest is capitalized when certain conditions are met as specified in each security agreement. During the three months ended March 31, 2022 and 2021, the Company capitalized $272,000 and $173,000, respectively, of interest income to real estate-related securities.

The Company’s loans held-for-investment include loans related to real estate assets, as well as credit investments, including commercial mortgage loans, mezzanine loans, preferred equity, and other loans and securities related to commercial real estate assets, as well as corporate loan opportunities that are consistent with the Company’s investment strategy and objectives. The Company intends to hold the loans held-for-investment for the full termforeseeable future or until maturity. Loans held-for-investment are carried on the Company’s condensed consolidated balance sheets at amortized cost, net of each leaseany current expected credit losses. Discounts or premiums, origination fees and exit fees are amortized as a component of interest income using the effective interest method over the life of the respective loans, or on a straight-line basis when it approximates the effective interest method. Upon the sale of a loan, the realized net gain or loss is computed on the specific identification method.

Interest earned is either received in cash or capitalized to loans held-for-investment and collectabilityrelated receivables, net in the Company’s condensed consolidated balance sheets. Interest is capitalized when certain conditions are met as specified in each loan agreement. During the three months ended March 31, 2022, the Company recorded $31.5 million in interest income on its credit investments. No amounts were capitalized during the three months ended March 31, 2022.

Accrual of interest income is suspended on nonaccrual loans. Loans that are past due 90 days or more as to principal or interest, or where reasonable doubt exists as to timely collection, are generally considered nonperforming and placed on nonaccrual status. Interest collected is recognized on a cash basis by crediting income when received. Loans may be restored to accrual status when all principal and interest are current and full repayment of the remaining contractual principal and interest are reasonably assured. As of March 31, 2022, the Company did not have nonaccrual loans.

Rental and other property income is primarily derived from fixed contractual payments from operating leases, and therefore, is generally recognized on a straight-line basis over the term of the lease, which typically begins the date the tenant takes control of the space. When the Company acquires a property, the terms of existing leases are considered to commence as of the acquisition date for the purpose of this calculation. Variable rental and other property income consists primarily of tenant reimbursements for recoverable real estate taxes and operating expenses which are included in rental and other property income in the period when such costs are incurred, with offsetting expenses in real estate taxes and property operating expenses, respectively, within the condensed consolidated statements of operations. The Company defers the recognition of contingentvariable rental and other property income, such as percentage rents, until the specific target that triggers the contingent rental income is achieved. Expected reimbursements from tenants for recoverable real estate taxes and operating expenses are included in tenant reimbursement income in the period when such costs are incurred.

The Company continually reviews whether collection of lease-related receivables, related to rent, including any straight-line rent, and current and future operating expense reimbursements from tenants and determinesare probable. The determination of whether collectability by takingis probable takes into consideration the tenant’s payment history, the financial condition of the tenant, business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located. InUpon the eventdetermination that the collectability of a receivable is uncertain,not probable, the Company will record an increasea reduction to rental and other property income for amounts previously recorded and a decrease in the allowanceoutstanding receivable. Revenue from leases where collection is deemed to be not probable is recorded on a cash basis until collectability becomes probable. Management’s estimate of the collectability of lease-related receivables is based on the best information available at the time of estimate. The Company does not use a general reserve approach and lease-related receivables are adjusted and taken against rental and other property income only when collectability becomes not probable.

The Company’s segment information reflects how the chief operating decision makers review information for uncollectible accounts. As of September 30, 2017operational decision-making purposes. The Company has 2 reportable segments:

See Note 16 — Segment Reporting for uncollectible accounts of $1.4 million and $221,000, respectively.a further discussion regarding these segments.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by various standard setting bodies that may have an impact on the Company’s accounting and reporting. Except as otherwise stated below, the Company is currently evaluating the effect that certain of these new accounting requirements may have on the Company’s accounting and related reporting and disclosures in the Company’s condensed consolidated financial statements:statements.

GAAP defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. GAAP emphasizes that fair value is intended to be a market-based measurement, as opposed to a transaction-specific measurement.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate the fair value. Assets and liabilities are measured using inputs from three levels of the fair value hierarchy, as follows:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. An active market is defined as a market in which transactions for the assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active (markets with few transactions), inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data correlation or other means (market corroborated inputs).

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

The following describes the methods the Company uses to estimate the fair value of the Company’s financial assets and liabilities:

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with those derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2017March 31,

2022 and December 31, 2016,2021, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not

Considerable judgment is necessary to develop estimated fair values of financial assets and liabilities. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize, or be liable for, upon disposition of the financial assets and liabilities. As of September 30, 2017The Company evaluates its hierarchy disclosures each quarter and December 31, 2016, there have been no transfers of financial assetsdepending on various factors, it is possible that an asset or liabilitiesliability may be classified differently from quarter to quarter. The Company does not expect that changes in classifications between fair value hierarchy levels.levels will be frequent.

Items Measured at Fair Value on a Recurring Basis