CIM Commercial Trust Announces Significant Reduction in Management Fee

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[{"type":"text","content":"\nAnticipates $0.21 per share in annualized cost savings\n\nManagement intends to recommend a dividend increase starting in first quarter 2022\n\n DALLAS--(BUSINESS WIRE)--\nCIM Commercial Trust Corporation (NASDAQ: CMCT and TASE: CMCT‑L) (“we”, “our”, “CMCT”, “CIM Commercial”, or the “Company”) announced that CIM Group, the manager to CMCT, has agreed to a fee waiver that is expected to reduce CMCT’s management fee by approximately 55%, resulting in $0.21 per share of annualized cost savings. The agreement is effective January 1, 2022.\n\n“This new fee structure more closely aligns our manager with the success of the common stockholders of CIM Commercial,” said David Thompson, Chief Executive Officer of CIM Commercial Trust. “Management intends to recommend to the Board that CIM Commercial use substantially all of the cost savings achieved by the lower management fee to reward common stockholders through a dividend increase starting in the first quarter. With the new fee structure, the company is now well-positioned for growth. We have an attractive portfolio with a significant same store growth opportunity. In addition, we will continue to leverage the resources of CIM Group’s large scale vertically integrated real asset platform to source and execute on attractive acquisitions to create value for shareholders.”\n\nCIM Group has agreed to the new management fee structure and will waive all fees in excess of this new calculation.\n\n\n\nNew\nExisting\n\n\nBase Fee\n1% of CMCT’s net asset value attributable to its common stock\nBased on the fair value of RE assets\n\n\nLess than $500 million\n\n1.00%\n\n\n\n\n$500 million to $1 billion\n\n0.95%\n\n\n\n\n$1 billion to $1.5 billion\n\n0.90%\n\n\n\n\n$1.5 billion to $4 billion\n\n0.85%\n\n\n\n\n$4 billion+\n\n0.40%\n\n\n\n\n\n\n\n\n \n\n\nIncentive Fee\nIn any quarter, 100% of CIM Commercial’s quarterly core funds from operations (“core FFO”) in excess of a quarterly threshold equal to 1.75% (the “hurdle rate”) (i.e., 7.00% on an annualized basis), but less than 2.1875% (i.e., 8.75% annualized), of CIM Commercial’s average adjusted common stockholders’ equity (i.e., common stockholders’ equity plus accumulated depreciation and amortization) for such quarter and 20% of the amount of the quarterly core FFO, if any, that exceeds 2.1875% (8.75% annualized) of CMCT’s average adjusted co...

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