CIM Real Estate Finance Trust, Inc. (CMFT), a credit-focused REIT managed by affiliates of CIM Group, has agreed to sell 185 non-core, net lease properties to Realty Income Corporation for $894 million in cash. The transaction is expected to close during the first quarter of 2023. 

Net proceeds from the sale will be deployed into senior secured loans and other similar credit investments. It’s the fourth portfolio transaction between CMFT and Realty Income since 2019.

“We believe the deployment of net sales proceeds will continue to advance our program to generate sustainable and increasing dividends for our shareholders through earnings growth,” said Richard Ressler, chairman, president and CEO of CMFT, and principal and co-founder of CIM Group. “Additionally, this transaction increases our flexibility as we seek to capitalize on investment opportunities resulting from the current market environment.” 

The 185-property portfolio includes retail and industrial properties totaling 4.6 million square feet with a 9.3 year weighted average remaining lease term. Following the final close of the transaction, CMFT’s net lease portfolio is expected to consist of 199 retail, office and industrial properties totaling 6.4 million square feet with 99.7% occupancy.