CIM Real Estate Finance Trust Ends REIT Status in CIM Group Combination
The White Law Group is investigating potential securities claims involving CIM Real Estate Finance Trust (CMFT), formerly known as Cole Credit Property Trust IV (CCPT IV), after the company disclosed on June 29, 2026 that it completed a fundamental restructuring that eliminates its status as a real estate investment trust. The transaction dilutes existing shareholders to a 32.5% economic interest and transforms the fund into the public-facing holding company for CIM Group’s entire real assets management platform. If you invested in CIM Real Estate Finance Trust and suffered losses, our FINRA arbitration attorneys may be able to help you recover through a FINRA arbitration claim.
CIM Real Estate Finance Trust Terminates Its REIT Status
According to the company’s June 29 disclosure, the transactions closed on June 24, 2026. CIM Group Holdings, LLC contributed CIM Group’s real assets management business and portfolio to a newly formed operating partnership in exchange for roughly 907.4 million operating partnership units and an equal number of special voting preferred shares — approximately 67.5% of the voting and economic ownership of the combined company, now renamed CIM Group, Inc. The fund’s existing shareholders retained the remaining 32.5% through their approximately 436.9 million common shares. The board determined the fund will no longer qualify as a REIT under the Internal Revenue Code, with the REIT election terminating effective January 1, 2026.
For investors who bought shares at the original $10.00 offering price beginning in 2012, this is a fundamental change to the nature of their investment. The company has cautioned that the loss of REIT status may carry tax consequences for shareholders who held the investment through a tax-advantaged REIT structure, and advises consulting a tax adviser.
Declining NAV: $5.14 Per Share, Down Nearly 49%
The board set a new estimated net asset value of $5.14 per share as of December 31, 2025 — a decline of nearly 49% from the original $10.00 offering price. That valuation remains in effect for distribution reinvestment and share redemption purposes until the board approves a new estimate. CIM Real Estate Finance Trust raised more than $3 billion from retail investors before closing its offering in April 2014, and today’s estimated value reflects a substantial loss of principal for many of those original investors.
Reduced Distributions and a Five-Year Wait for Liquidity
The restructuring establishes a three-year dividend floor, requiring the company to pay quarterly dividends of at least $0.06 per share for the first four quarters after closing, $0.07 for the next four, and $0.095 for the four quarters after that. At $0.06 per quarter, the $0.24 annualized rate reflects a yield of roughly 4.7% on the $5.14 NAV — below the 6.6% annualized rate in effect before the January 2025 distribution reduction. Beyond the three-year commitment, dividends are at the board’s discretion.
The company also agreed to use commercially reasonable efforts to pursue a listing on a national securities exchange within 24 months and to complete one within five years. If no listing occurs, the board must evaluate a recapitalization or other strategic transaction. In practical terms, shareholders face a multi-year wait before any potential exit.
Lack of Liquidity – A Risk of Non-Traded REITs
Investors looking to sell non-traded investments like CIM Real Estate Finance Trust often struggle to find a buyer and can suffer significant losses on a sale. Comrit Investments 1 LP, a Tel Aviv-based fund, has launched repeated unsolicited tender offers for CMFT shares at steep discounts to the stated NAV — a reflection of how little these illiquid shares command on the secondary market. Share redemption programs for non-traded REITs are typically capped at a small percentage of shares each quarter, leaving many investors unable to exit when they need to.
Did Your Broker Recommend CIM Real Estate Finance Trust?
Non-traded REITs like CIM Real Estate Finance Trust are complex, illiquid, and carry high fees and risks that make them unsuitable for many investors. Financial advisors have a duty to perform due diligence and to recommend only investments suitable for a client’s objectives, risk tolerance, and financial situation. If your broker unsuitably recommended CIM Real Estate Finance Trust or failed to disclose its risks, the brokerage firm may be held liable for your losses through FINRA arbitration.
Class Action vs. Individual FINRA Arbitration
Investors often ask whether a class action or an individual FINRA arbitration claim is the better path. The answer depends on the circumstances, but for losses larger than roughly $100,000, an individual FINRA arbitration claim is often the more effective option. Class actions tend to be better suited to grouping large numbers of small claims that would be impractical to pursue individually.
Frequently Asked Questions (FAQs)
1. What happened to CIM Real Estate Finance Trust in 2026?
On June 29, 2026, CIM Real Estate Finance Trust (CMFT) disclosed that it completed a restructuring that terminated its REIT status and combined it with CIM Group’s real assets management platform. Existing shareholders were diluted to a 32.5% economic interest in the combined company, now named CIM Group, Inc.
2. How much have CIM Real Estate Finance Trust shares declined in value?
The board set an estimated NAV of $5.14 per share as of December 31, 2025 — down nearly 49% from the original $10.00 offering price. Shares have also traded at steep discounts to NAV in secondary-market tender offers.
3. Can I recover losses in CIM Real Estate Finance Trust?
If a broker or brokerage firm unsuitably recommended CIM Real Estate Finance Trust or failed to disclose its risks, you may be able to recover your losses by filing a FINRA arbitration claim against the firm that sold you the investment. Contact The White Law Group at (888) 637-5510 for a free consultation.
Recover Your CIM Real Estate Finance Trust Losses
If you suffered losses in CIM Real Estate Finance Trust, the securities attorneys at The White Law Group may be able to help you recover through FINRA arbitration. Call us today at (888) 637-5510 for a free, no-obligation consultation, or contact us online.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. Since 2010, the firm has represented investors nationwide in FINRA arbitration claims involving unsuitable recommendations, negligence, and investment fraud.
