LOANS HELD-FOR-INVESTMENT (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Allowance for Financing Receivable

The following table presents the activity in the Company’s current expected credit losses related to its positions in two different tranches of a CMBS instrument for the nine months ended September 30, 2025 and 2024 (in thousands):


	CMBS
Current expected credit losses as of January 1, 2025	$	110,062
Provision for credit losses	72,266
Current expected credit losses as of March 31, 2025	182,328
Provision for credit losses	959
Current expected credit losses as of June 30, 2025	183,287
Reversal of credit losses	(298)
Current expected credit losses as of September 30, 2025	$	182,989


	CMBS
Current expected credit losses as of January 1, 2024	$	35,808
Reversal of credit losses	(246)
Current expected credit losses as of March 31, 2024	35,562
Provision for credit losses	4,529
Current expected credit losses as of June 30, 2024	40,091
Provision for credit losses	47,141
Current expected credit losses as of September 30, 2024	$	87,232

The Company’s loans held-for-investment consisted of the following as of September 30, 2025 and December 31, 2024 (in thousands):


	As of September 30,		As of December 31,
	2025		2024

First mortgage loans (1)	$	3,129,218	$	3,466,929
Total CRE loans held-for-investment and related receivables, net	3,129,218		3,466,929
Liquid corporate senior loans	29,389		41,467
Corporate senior loans	337,375		254,617
Loans held-for-investment and related receivables, net	$	3,495,982	$	3,763,013

Less: Current expected credit losses	$	(301,903)	$	(392,136)
Total loans held-for-investment and related receivables, net	$	3,194,079	$	3,370,877

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(1) As of September 30, 2025 and December 31, 2024, first mortgage loans included $19.0 million of contiguous mezzanine loan components that, as a whole, have expected credit quality similar to that of a first mortgage loan.

The following table details overall statistics for the Company’s loans held-for-investment as of September 30, 2025 and December 31, 2024 (dollar amounts in thousands):


	CRE Loans (1) (2)						Liquid Corporate Senior Loans						Corporate Senior Loans
	September 30, 2025			December 31, 2024			September 30, 2025			December 31, 2024			September 30, 2025			December 31, 2024
Number of loans	33			33			10			15			33			20
Principal balance	$	3,142,133		$	3,483,454		$	29,911		$	42,717		$	342,073		$	258,816
Net book value	$	2,838,179		$	3,085,104		$	24,204		$	35,653		$	331,696		$	250,120
Weighted-average interest rate (3)	7.3		%	7.7		%	10.2		%	9.9		%	10.0		%	10.5		%
Weighted-average maximum years to maturity	2.1			2.3			3.2			3.7			3.1			3.5
Unfunded loan commitments (4)	$	135,435		$	217,907		$	—		$	—		$	48,627		$	43,750

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(1)As of September 30, 2025, 90.6% of the Company’s CRE loans by principal balance earned a floating rate of interest primarily indexed to the Secured Overnight Financing Rate (“SOFR”).

(2)Maximum maturity date assumes all extension options are exercised by the borrowers and assumes all relevant conditions are met for such extensions; however, the loans may be repaid prior to such date.

(3)The weighted-average interest rate is based on the relevant fixed rate or floating benchmark plus a spread. Excludes loans on nonaccrual status.

(4)Unfunded loan commitments are subject to the satisfaction of borrower milestones and are not reflected in the accompanying condensed consolidated balance sheets.

Activity relating to the Company’s loans held-for-investment portfolio was as follows for the nine months ended September 30, 2025 (in thousands):


	CRE Loans		Liquid Corporate Senior Loans		Corporate Senior Loans		Total Loan Portfolio
Balance, January 1, 2025	$	3,085,104	$	35,653	$	250,120	$	3,370,877
Loan originations, acquisitions and funding	265,628		1,282		99,095		366,005
Sale of loans	—		(5,275)		—		(5,275)
Principal repayments received	(380,865)		(5,023)		(15,978)		(401,866)
Transfer to real estate assets (1)	(149,439)		—		—		(149,439)
Capitalized interest	11,972		19		140		12,131

Write-offs charged (2)	(87,475)		(3,371)		—		(90,846)
Deferred fees and other items (3)	(4,371)		(30)		(1,873)		(6,274)
Accretion and amortization of fees and other items	6,839		320		1,374		8,533
Reversal of (provision for) credit losses (4)	90,786		629		(1,182)		90,233
Balance, September 30, 2025	$	2,838,179	$	24,204	$	331,696	$	3,194,079

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(1)During the nine months ended September 30, 2025, the Company took control of the assets securing two of its risk-rated 5 first mortgage loans through deeds-in-lieu of foreclosure, as further discussed in Note 4 — Real Estate Assets.

(2)Includes a combined $87.5 million write-off on the two first mortgage loans transferred to real estate assets as noted above and a $3.4 million write-off on three liquid corporate senior loans sold during the nine months ended September 30, 2025.

(3)Other items primarily consist of purchase discounts or premiums and deferred origination expenses.

(4)Does not include current expected losses for unfunded or unsettled loan commitments. Such amounts are included in accrued expenses and accounts payable on the accompanying condensed consolidated balance sheets.

As of September 30, 2025, the Company’s CRE loans had the following characteristics based on carrying value (dollar amounts in thousands):


Collateral Property Type	As of September 30, 2025
Office	$	1,576,421	50.5	%
Multifamily	867,362		27.7	%
Industrial	345,272		11.0	%
Hospitality	193,625		6.2	%
Mixed Use	85,642		2.7	%

Self-Storage	60,896		1.9	%
Total first mortgage loans	$	3,129,218	100	%
Less: current expected credit losses	(291,039)
Total first mortgage loans, net	$	2,838,179


Geographic Location	As of September 30, 2025
South	$	1,295,686	41.4	%
West	905,734		28.9	%
East	637,084		20.4	%
Various	290,714		9.3	%
Total first mortgage loans	$	3,129,218	100	%
Less: current expected credit losses	(291,039)
Total first mortgage loans, net	$	2,838,179

The following table presents the activity in the Company’s current expected credit losses related to loans held-for-investment by loan type for the nine months ended September 30, 2025 and 2024 (in thousands):


	First Mortgage Loans		Unfunded First Mortgage Loans (1)		Liquid Corporate Senior Loans		Unfunded or Unsettled Liquid Corporate Senior Loans (1)		Corporate Senior Loans		Unfunded Corporate Senior Loans (1)		Total
Current expected credit losses as of January 1, 2025	$	381,825	$	13,917	$	5,814	$	—	$	4,497	$	677	$	406,730
(Reversal of) provision for credit losses	(11,922)		5,486		(2)		—		260		(63)		(6,241)
Charge-offs of CECL	(87,475)		—		(3,371)		—		—		—		(90,846)
Current expected credit losses as of March 31, 2025	$	282,428	$	19,403	$	2,441	$	—	$	4,757	$	614	$	309,643
Provision for (reversal of) credit losses	4,240		(838)		305		—		577		(42)		4,242

Current expected credit losses as of June 30, 2025	$	286,668	$	18,565	$	2,746	$	—	$	5,334	$	572	$	313,885
Provision for (reversal of) credit losses	4,371		(694)		2,439		—		345		282		6,743

Current expected credit losses as of September 30, 2025	$	291,039	$	17,871	$	5,185	$	—	$	5,679	$	854	$	320,628

Current expected credit losses as of January 1, 2024	$	109,240	$	10,062	$	19,738	$	3	$	3,620	$	495	$	143,158
Provision for (reversal of) credit losses	77,564		(6,653)		(3,719)		(1)		249		(78)		67,362
Charge-offs of CECL	—		—		(1,649)		—		—		—		(1,649)
Current expected credit losses as of March 31, 2024	$	186,804	$	3,409	$	14,370	$	2	$	3,869	$	417	$	208,871
Provision for (reversal of) credit losses	211,485		7,197		(5,963)		(1)		(335)		(13)		212,370
Charge-offs of CECL	—		—		(480)		—		—		—		(480)
Current expected credit losses as of June 30, 2024	$	398,289	$	10,606	$	7,927	$	1	$	3,534	$	404	$	420,761
(Reversal of) provision for credit losses	(24,304)		5,029		(4,050)		(1)		595		117		(22,614)
Charge-offs of CECL	—		—		(2,860)		—		—		—		(2,860)
Current expected credit losses as of September 30, 2024	$	373,985	$	15,635	$	1,017	$	—	$	4,129	$	521	$	395,287

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(1)Current expected losses for unfunded or unsettled loan commitments are included in accrued expenses and accounts payable on the condensed consolidated balance sheets.

Schedule of Financing Receivable Credit Quality Indicators

The following table presents the net book value of the Company’s loans held-for-investment portfolio as of September 30, 2025 by year of origination, loan type, and risk rating (dollar amounts in thousands):


		Amortized Cost of Loans Held-For-Investment by Year of Origination (1)
		As of September 30, 2025
	Number of Loans	2025		2024		2023		2022		2021		Prior		Total
First mortgage loans by internal risk rating:
1	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2	—	—		—		—		—		—		—		—
3	20	182,847		79,713		345,353		612,263		507,291		—		1,727,467
4	7	—		102,636		—		233,487		160,615		71,140		567,878
5	6	—		—		—		484,435		295,589		53,849		833,873
Total first mortgage loans	33	182,847		182,349		345,353		1,330,185		963,495		124,989		3,129,218
Liquid corporate senior loans by internal risk rating: (2)
1	—	—		—		—		—		—		—		—
2	—	—		—		—		—		—		—		—
3	4	—		—		1,711		13,521		2,515		—		17,747
4	2	—		1,874		—		—		2,995		—		4,869
5	4	—		4,320		1,153		—		1,300		—		6,773
Total liquid corporate senior loans	10	—		6,194		2,864		13,521		6,810		—		29,389
Corporate senior loans by internal risk rating:
1	—	—		—		—		—		—		—		—
2	—	—		—		—		—		—		—		—
3	30	72,774		125,397		72,930		28,563		—		—		299,664
4	3	—		—		11,581		26,130		—		—		37,711
5	—	—		—		—		—		—		—		—
Total corporate senior loans	33	72,774		125,397		84,511		54,693		—		—		337,375
Less: Current expected credit losses														(301,903)
Total loans held-for-investment and related receivables, net	76													$	3,194,079
Weighted Average Risk Rating (3)														3.7

Gross charge-offs (4)		—		(155)		—		—		(90,691)		—		$	(90,846)

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(1)Date loan was originated or acquired by the Company. Origination dates are subsequently updated to reflect material loan modifications.

(2)As of September 30, 2025, four of the Company’s liquid corporate senior loan investments were on nonaccrual status with an aggregate carrying value of $6.8 million, which represented less than 1.0% of the carrying value of the Company’s loans held-for-investment portfolio.

(3)Weighted average risk rating calculated based on carrying value at period end.

(4)Represents gross charge-offs by year of origination during the nine months ended September 30, 2025.

CIM REAL ESTATE FINANCE TRUST, INC. 10-Q