View Filing Data

DEBT (Tables)

3 Months Ended

Mar. 31, 2020

Information on our debt is as follows:



	March 31, 2020			December 31, 2019
	(in thousands)
Mortgage loan with a fixed interest rate of 4.14% per annum, with monthly payments of interest only, and a balance of $97,100,000 due on July 1, 2026. The loan is nonrecourse.	$	97,100		$	97,100
Deferred loan costs related to mortgage loans	(167		)	(174		)
Total Mortgages Payable	96,933			96,926
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.42% and 5.68% at March 31, 2020 and December 31, 2019, respectively.	7,312			7,845
Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.07% and 3.32% at March 31, 2020 and December 31, 2019, respectively.	2,826			4,307
	10,138			12,152
Unamortized premiums	582			629
Total Secured Borrowings—Government Guaranteed Loans	10,720			12,781
Revolving credit facility	159,500			153,000
SBA 7(a) loan-backed notes with a variable interest rate which resets monthly based on the lesser of the one-month LIBOR plus 1.40% or the prime rate less 1.08%, with payments of interest and principal due monthly. Balance due at maturity in March 20, 2043.	18,033			22,282
Junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. Balance due at maturity on March 30, 2035.	27,070			27,070
	204,603			202,352
Deferred loan costs related to other debt	(2,608		)	(2,867		)
Discount on junior subordinated notes	(1,749		)	(1,771		)
Total Other Debt	200,246			197,714
Total Debt	$	307,899		$	307,421

Future Principal Payments on Debt

Future principal payments on our debt (face value) at March 31, 2020 are as follows:



Years Ending December 31,	Mortgages Payable		Secured Borrowings Principal (1)		Other (1) (2)		Total
	(in thousands)
2020 (Nine months ending December 31, 2020)	$	—	$	366	$	536	$	902
2021	—		502		1,092		1,594
2022	—		518		160,625		161,143
2023	—		535		1,340		1,875
2024	—		552		838		1,390
Thereafter	97,100		7,665		40,172		144,937
	$	97,100	$	10,138	$	204,603	$	311,841

(1)

Principal payments on secured borrowings and SBA 7(a) loan-backed notes, which are included in Other, are generally dependent upon cash flows received from the underlying loans. Our estimate of their repayment is based on scheduled payments on the underlying loans. Our estimate will differ from actual amounts to the extent we experience prepayments and or loan liquidations or charge-offs. No payment is due unless payments are received from the borrowers on the underlying loans.


(2)	Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and revolving credit facility.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Investments in real estate, net	$ 509,278	$ 508,707
Cash and cash equivalents	22,758	23,801
Restricted cash	10,430	12,146
Loans receivable, net	65,170	68,079
Accounts receivable, net	3,528	3,520
Deferred rent receivable and charges, net	35,690	34,857
Other intangible assets, net	6,813	7,260
Other assets	9,875	9,222
TOTAL ASSETS	663,542	667,592
LIABILITIES:
Debt, net	307,899	307,421
Accounts payable and accrued expenses	17,027	24,309
Intangible liabilities, net	1,028	1,282
Due to related parties	10,317	9,431
Other liabilities	9,553	10,113
Total liabilities	345,824	352,556
COMMITMENTS AND CONTINGENCIES (Note 15)
EQUITY:
Common stock, $0.001 par value; 900,000,000 shares authorized; 14,602,149 shares issued and outstanding at March 31, 2020 and December 31, 2019.	15	15
Additional paid-in capital	794,269	794,825
Distributions in excess of earnings	(746,398)	(740,617)
Total stockholders' equity	279,030	277,690
Noncontrolling interests	509	505
Total equity	279,539	278,195
TOTAL LIABILITIES, REDEEMABLE PREFERRED STOCK, AND EQUITY	663,542	667,592
Series A Preferred Stock
LIABILITIES:
CUMULATIVE REDEEMABLE PREFERRED STOCK: Series A, $0.001 par value; 36,000,000 shares authorized; 1,692,338 and 1,687,938 shares issued and outstanding, respectively, at March 31, 2020 and 1,630,821 and 1,630,421 shares issued and outstanding, respectively, at December 31, 2019; liquidation preference of $25.00 per share, subject to adjustment	38,179	36,841
Series A Cumulative Preferred Stock
EQUITY:
Preferred stock	78,160	70,633
Series D Preferred Stock
EQUITY:
Preferred stock	150	0
Series L Preferred Stock
EQUITY:
Preferred stock	$ 152,834	$ 152,834

Consolidated Statements of Operations (Parenthetical)	Sep. 03, 2019
Income Statement [Abstract]
Reverse stock split ratio, common stock	0.3333

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents	$ 22,758	$ 298,841	$ 23,801
Other assets	9,875		9,222
Decrease to net cash provided by (used in) operating activities	$ (5,983)	(14,393)
Restatement Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents		(588)		$ (272)
Other assets		588	$ 272
Decrease to net cash provided by (used in) operating activities		$ 316

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable Inputs (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
SBA 7(a) loans receivable, subject to loan-backed notes \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	13.41%	13.41%
SBA 7(a) loans receivable, subject to loan-backed notes \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	16.80%	16.80%
SBA 7(a) loans receivable, subject to credit risk \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	9.85%	9.85%
SBA 7(a) loans receivable, subject to credit risk \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	17.50%	17.50%
SBA 7(a) loans receivable, subject to secured borrowings \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	11.77%	11.77%
SBA 7(a) loans receivable, subject to secured borrowings \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rate of prepayment	16.80%	16.80%
Measurement Input, Discount Rate \| Mortgages Payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt	0.0275
Measurement Input, Discount Rate \| Mortgages Payable \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt		0.0367
Measurement Input, Discount Rate \| Junior Subordinated Debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for debt	0.0570	0.0616
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to loan-backed notes \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0375	0.0525
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to loan-backed notes \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0575	0.0725
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to credit risk \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0375	0.0525
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to credit risk \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0625	0.0775
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to secured borrowings \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0525	0.0675
Measurement Input, Discount Rate \| SBA 7(a) loans receivable, subject to secured borrowings \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Measurement input for loans receivable	0.0600	0.0750

Consolidated Statements of Equity (Parenthetical)		3 Months Ended
Consolidated Statements of Equity (Parenthetical)	Sep. 03, 2019	Mar. 31, 2020 $ / shares	Mar. 31, 2019 $ / shares
Common dividends (in usd per share)		$ 0.075	$ 0.375
Reverse stock split ratio, common stock	0.3333
Series A Preferred Stock
Preferred dividends, per share amount (in usd per share)		0.68750	$ 0.34375
Series D Preferred Stock
Preferred dividends, per share amount (in usd per share)		$ 0.588542

REDEEMABLE PREFERRED STOCK - Dividends Accumulated (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Class of Stock [Line Items]
Dividends Accumulated	$ 5,356	$ 4,162
Series L Preferred Stock
Class of Stock [Line Items]
Series L Preferred Stock outstanding (in shares)	5,387,160	8,080,740
Dividends Accumulated	$ 2,101	$ 3,152

SEGMENT DISCLOSURE - Operating Income (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($) property	Mar. 31, 2019 USD ($) property
Segment disclosure
Number of types of commercial real estate properties \| property	2	2
Revenues	$ 25,535	$ 47,277
Expenses:
Interest expense	3,167	4,045
General and administrative	1,734	1,788
EXPENSES	26,813	132,917
Segment net operating income	(1,278)	291,941
Reportable segments
Expenses:
Segment net operating income	11,535	24,815
Reportable segments \| Office
Segment disclosure
Revenues	14,897	33,445
Expenses:
Operating	6,046	13,559
General and administrative	98	154
EXPENSES	6,144	13,713
Segment net operating income	8,753	19,732
Reportable segments \| Hotel
Segment disclosure
Revenues	8,253	10,589
Expenses:
Operating	6,469	6,694
General and administrative	13	14
EXPENSES	6,482	6,708
Segment net operating income	1,771	3,881
Reportable segments \| Lending
Segment disclosure
Revenues	2,384	2,924
Expenses:
Interest expense	291	582
Fees to related party	682	637
General and administrative	400	503
EXPENSES	1,373	1,722
Segment net operating income	$ 1,011	$ 1,202

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loans Receivable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2015	Mar. 11, 2014
Loans receivable
Unamortized retained loan discounts	$ 7,577,000		$ 7,622,000
Loan receivable, nonaccrual, past due period (more than)	60 days
Loans receivable, previously written off, recovered	$ 52,000	$ 57,000
Impaired loans receivable	0		0
SBA 7(a) loans receivable, subject to secured borrowings
Loans receivable
Unamortized acquisition discounts related to sold loans				$ 15,951,000
PMC Commercial
Loans receivable
Discount on acquisition					$ 33,907,000
Acquisition discount	$ 586,000		$ 624,000

OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

OTHER INTANGIBLE ASSETS

A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of March 31, 2020 and December 31, 2019 is as follows:



	Assets								Liabilities
March 31, 2020	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	37		$	12,135		$	2,957	$	(2,368	)
Accumulated amortization	(11		)	(8,305		)	—		1,340
	$	26		$	3,830		$	2,957	$	(1,028	)
Average useful life (in years)	7			9			Indefinite		4



	Assets								Liabilities
December 31, 2019	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	74		$	13,653		$	2,957	$	(3,521	)
Accumulated amortization	(42		)	(9,382		)	—		2,239
	$	32		$	4,271		$	2,957	$	(1,282	)
Average useful life (in years)	5			8			Indefinite		4

The amortization of the acquired above-market leases, which decreased rental and other property income, was $6,000 and $21,000 for the three months ended March 31, 2020 and 2019, respectively. The amortization of the acquired in-place leases included in depreciation and amortization expense was $441,000 and $601,000 for the three months ended March 31, 2020 and 2019, respectively. The amortization of the acquired below-market leases included in rental and other property income was $254,000 and $513,000 for the three months ended March 31, 2020 and 2019, respectively.

A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of March 31, 2020, is as follows:



	Assets				Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Acquired Below-Market Leases
	(in thousands)
2020 (Nine months ending December 31, 2020)	$	3	$	908	$	(447	)
2021	5		899		(347		)
2022	5		663		(234		)
2023	6		375		—
2024	6		375		—
Thereafter	1		610		—
	$	26	$	3,830	$	(1,028	)

REDEEMABLE PREFERRED STOCK - Narrative (Details) - USD ($)								1 Months Ended			3 Months Ended		12 Months Ended
	Jul. 15, 2020	Jun. 15, 2020	May 15, 2020	Mar. 02, 2020	Dec. 20, 2019	Nov. 20, 2019	Nov. 21, 2017	Apr. 30, 2020	Feb. 29, 2020	Nov. 30, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	Feb. 28, 2020
Class of Stock [Line Items]
Proceeds from issuance of preferred stock and warrants											$ 121,431,000
Issuance offering costs for preferred stock and warrants											9,567,000
Non-issuance offering costs for preferred stock and warrants											$ 6,461,000
Preferred stock redemption, trading days prior to redemption											20 days
Redeemable preferred stock dividends											$ 161,000	$ 0
Deferred rent receivable and charges reclassified to temporary equity											71,901,000
Redeemable preferred stock redemptions											10,000	4,000
Initial dividend on common stock					$ 4,380,644.70
Initial dividend, common stock, paid											$ 1,095,000	$ 5,474,000
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)											4,851,367
Proceeds from issuance of preferred stock and warrants											$ 120,520,000
Issuance offering costs for preferred stock and warrants											9,421,000
Reclassification to deferred rent receivable and charges											$ 877,000
Preferred stock, shares outstanding (in shares)											4,827,633
Number of shares redeemed											23,734
Series D Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)											5,980
Proceeds from issuance of preferred stock and warrants											$ 150,000
Issuance offering costs for preferred stock and warrants											4,000
Reclassification to deferred rent receivable and charges											$ 1,000
Preferred stock, shares outstanding (in shares)											5,980
Number of shares redeemed											0
Cumulative dividend rate									5.65%
Dividend per share per year (in usd per share)				$ 0.353125
Preferred dividends, per share amount (in usd per share)											$ 0.588542
Preferred stock, par value (in usd per share)											0.001			$ 25
Preferred stock, liquidation preference per share (in usd per share)											$ 25.00
Series A Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)											1,692,338		1,630,821
Preferred stock, shares outstanding (in shares)											1,687,938		1,630,421
Cumulative dividend rate											5.50%
Dividend per share per year (in usd per share)											$ 0.34375
Dividends accrued ( in usd per share)				$ 0.34375
Preferred dividends, per share amount (in usd per share)											0.68750	$ 0.34375
Preferred stock, par value (in usd per share)											0.001		$ 0.001
Preferred stock, liquidation preference per share (in usd per share)											$ 25.00		$ 25.00
Series A Preferred Unit
Class of Stock [Line Items]
Number of securities called by warrants or rights (in shares)											1,194,159
Series L Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares issued (in shares)							8,080,740				8,080,740		8,080,740
Preferred stock, shares outstanding (in shares)											5,387,160		5,387,160
Cumulative dividend rate											5.50%
Dividend per share per year (in usd per share)											$ 1.56035
Preferred stock, par value (in usd per share)											0.001		$ 0.001
Preferred stock, liquidation preference per share (in usd per share)											$ 28.37		$ 28.37
Failure to declare or pay distributions, temporary increase per year							1.00%
Failure to declare or pay distributions, temporary increase per year, maximum increase							8.50%
Minimum fixed charge coverage ratio											125.00%
Registration Statement
Class of Stock [Line Items]
Warrant right to purchase a share of common stock (in shares)											0.25
Registration Statement \| Series A Preferred Stock
Class of Stock [Line Items]
Redeemable preferred stock, par value (in usd per share)											$ 0.001
Preferred stock, stated value (in usd per share)											$ 25
Registration Statement \| Series L Preferred Stock
Class of Stock [Line Items]
Preferred stock, liquidation preference per share (in usd per share)							$ 28.37
Subsequent Event \| Series A Preferred Stock
Class of Stock [Line Items]
Number of shares redeemed								779
Tender Offer \| Series L Preferred Stock
Class of Stock [Line Items]
Dividends accrued ( in usd per share)						$ 1.39
Shares repurchased (in shares)										2,693,580
Purchase price (in usd per share)										$ 29.12
Dividends, preferred stock, aggregate value						$ 3,744,000
Professional fees										$ 462,000
Cost to repurchase tendered shares										$ 75,155,000
Redeemable preferred stock redemptions													$ 5,873,000
Forecast \| Series D Preferred Stock
Class of Stock [Line Items]
Preferred dividends, per share amount (in usd per share)	$ 0.117708	$ 0.117708	$ 0.117708
Forecast \| Series A Preferred Stock
Class of Stock [Line Items]
Preferred dividends, per share amount (in usd per share)			$ 0.1145833
Dividends to be paid per share (in usd per share)	$ 0.1145833	$ 0.1145833
Series A Preferred Warrants
Class of Stock [Line Items]
Warrants issued (in shares)											4,603,287
Proceeds from issuance of preferred stock and warrants											$ 761,000
Issuance offering costs for preferred stock and warrants											142,000
Reclassification to deferred rent receivable and charges											$ 5,000
Warrants outstanding (in shares)											4,603,287

COVID-19 (Details) - USD ($)	1 Months Ended				3 Months Ended
COVID-19 (Details) - USD ($)	Apr. 30, 2020	Mar. 31, 2020	Apr. 30, 2019	Mar. 31, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
Concentration Risk [Line Items]
Rental and other property income billed and collected, excluding amounts related to parking tenants					$ 14,819,000		$ 33,581,000
Rental and other property income billed and uncollected from parking tenants		$ 237,612,000			$ 237,612,000
Hotel occupancy rate		38.60%	83.30%	85.60%
Average daily rate		$ 172.05	$ 187.76	$ 176.12
Revenue per available room		$ 66.48	$ 156.38	$ 150.84
Hotel \| Revenues
Concentration Risk [Line Items]
Concentration risk, percent						22.00%
Subsequent Event
Concentration Risk [Line Items]
Percentage of rental and other property income billed and collected, excluding amounts related to parking tenants	90.00%
Rental and other property income billed and collected, excluding amounts related to parking tenants	$ 4,237,000
Rental and other property income billed and uncollected from parking tenants	$ 409,000
Hotel occupancy rate	12.80%
Average daily rate	$ 129.90
Revenue per available room	$ 16.56

ACQUISITIONS AND DISPOSITIONS - Acquisitions (Details) - acquistion	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Business Combinations [Abstract]
Number of business acquisitions	0	0

STOCKHOLDERS' EQUITY - Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Aug. 19, 2019	Mar. 31, 2020	Mar. 31, 2019
Registration statement
Common dividends (in usd per share)		$ 0.075	$ 0.375
Special dividends paid	$ 613,294
Net proceeds from issuance of warrants		$ 29	$ 9
Registration Statement
Registration statement
Warrant right to purchase a share of common stock (in shares)		0.25
Premium of the exercise price of the warrant as a percent to net asset value of common stock		15.00%
Series A Preferred Unit
Registration statement
Number of securities called by warrants or rights (in shares)		1,194,159
Net proceeds from issuance of warrants		$ 614
Special Dividend
Registration statement
Common dividends (in usd per share)	$ 42
Series A Preferred Warrants
Registration statement
Warrants issued (in shares)		4,603,287

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Loan Commitments—Commitments to extend credit are agreements to lend to a customer provided the terms established in the contract are met. Our outstanding commitments to fund loans were $12,745,000 at March 31, 2020 and are for prime-based loans to be originated by our subsidiary engaged in SBA 7(a) Program lending, the government guaranteed portion of which is intended to be sold. Commitments generally have fixed expiration dates. Since some commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. General—In connection with the ownership and operation of real estate properties, we have certain obligations for the payment of tenant improvement allowances and lease commissions in connection with new leases and renewals. CIM Commercial had a total of $5,464,000 in future obligations under leases to fund tenant improvements and other future construction obligations at March 31, 2020. At March 31, 2020, $2,814,000 was funded to reserve accounts included in restricted cash on our consolidated balance sheet for these tenant improvement obligations in connection with the mortgage loan agreement entered into in June 2016. Employment Agreements—We have employment agreements with two of our officers. Under certain circumstances, each of these employment agreements provides for (1) severance payment equal to the annual base salary paid to the officer and (2) death and disability payments in an amount equal to two times and one time, respectively, the annual base salary paid to the officers. Litigation—We are not currently involved in any material pending or threatened legal proceedings nor, to our knowledge, are any material legal proceedings currently threatened against us, other than routine litigation arising in the ordinary course of business. In the normal course of business, we are periodically party to certain legal actions and proceedings involving matters that are generally incidental to our business. While the outcome of these legal actions and proceedings cannot be predicted with certainty, in management's opinion, the resolution of these legal proceedings and actions will not have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. In September 2018, we filed a lawsuit against the City and County of San Francisco seeking a refund of the $11,845,000 in penalties, interest and legal fees paid by us for real property transfer tax allegedly due for a transaction in a prior year. We disputed that such penalties, interest and legal fees were payable but, in order to contest the asserted tax obligations, we had to pay such amounts to the City and County of San Francisco in August 2017. We have been vigorously pursuing this litigation and intend to continue to do so. A subsidiary of the Company is a defendant in a lawsuit in connection with injuries sustained by a third-party contractor at a property previously owned by such subsidiary. While it is possible that a loss may be incurred, we are unable to estimate a range of potential losses due to the complexity and current status of the lawsuit. However, we maintain insurance coverage to mitigate the impact of adverse exposures in lawsuits of this nature and do not expect this lawsuit to have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. SBA Related—If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced under the SBA 7(a) Program, the SBA may seek recovery of the principal loss related to the deficiency from us. With respect to the guaranteed portion of SBA loans that have been sold, the SBA will first honor its guarantee and then seek compensation from us in the event that a loss is deemed to be attributable to technical deficiencies. Based on historical experience, we do not expect that this contingency is probable to be asserted. However, if asserted, it could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. Environmental Matters—In connection with the ownership and operation of real estate properties, we may be potentially liable for costs and damages related to environmental matters, including asbestos-containing materials. We have not been notified by any governmental authority of any noncompliance, liability, or other claim in connection with any of the properties, and we are not aware of any other environmental condition with respect to any of the properties that management believes will have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock. Rent Expense—We lease office space in Dallas, Texas under a lease which, as amended, expires in May 2020. In determining whether this contract constitutes a lease, we determined that the office space is explicitly identified in the contract. Additionally, so long as payments are made timely under this lease, we as the tenant have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the office space is used to conduct our operations. In January 2020, CIM Group, as successor in interest to CIM Commercial, entered into an amendment to this office lease, which commences in June 2020 upon the expiration of the existing lease. As of March 31, 2020 and December 31, 2019, the right-of-use asset and lease liability balance were approximately $43,000 and $106,000, respectively. The right-of-use asset is included within other assets and the lease liability is included within other liabilities on our consolidated balance sheets. We recorded rent expense of $74,000 and $76,000 for the three months ended March 31, 2020 and 2019, respectively, in general and administrative expenses on our consolidated statements of operations. At March 31, 2020, our scheduled future noncancelable minimum lease payments were $43,000 for the nine months ending December 31, 2020.

SEGMENT DISCLOSURE (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment Net Operating Income

The net operating income of our segments for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Office:
Revenues	$	14,897	$	33,445
Property expenses:
Operating	6,046		13,559
General and administrative	98		154
Total property expenses	6,144		13,713
Segment net operating income—office	8,753		19,732
Hotel:
Revenues	8,253		10,589
Property expenses:
Operating	6,469		6,694
General and administrative	13		14
Total property expenses	6,482		6,708
Segment net operating income—hotel	1,771		3,881
Lending:
Revenues	2,384		2,924
Lending expenses:
Interest expense	291		582
Fees to related party	682		637
General and administrative	400		503
Total lending expenses	1,373		1,722
Segment net operating income—lending	1,011		1,202
Total segment net operating income	$	11,535	$	24,815

Reconciliation of Segment Net Operating Income to Net Income Attributable to the Company

A reconciliation of our segment net operating income to net income attributable to the Company for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended March 31,
	2020			2019
	(in thousands)
Total segment net operating income	$	11,535		$	24,815
Interest and other income	1			319
Asset management and other fees to related parties	(3,457		)	(5,249		)
Interest expense	(2,876		)	(3,463		)
General and administrative	(1,223		)	(1,117		)
Transaction costs	—			(44		)
Depreciation and amortization	(5,258		)	(9,630		)
Loss on early extinguishment of debt	—			(25,071		)
Impairment of real estate	—			(66,200		)
Gain on sale of real estate	—			377,581
(Loss) income before provision for income taxes	(1,278		)	291,941
Provision for income taxes	22			(318		)
Net (loss) income	(1,256		)	291,623
Net (income) loss attributable to noncontrolling interests	(4		)	174
Net (loss) income attributable to the Company	$	(1,260	)	$	291,797

Segment Condensed Assets

The condensed assets for each of the segments as of March 31, 2020 and December 31, 2019, along with capital expenditures and loan originations for the three months ended March 31, 2020 and 2019, are as follows:



	March 31, 2020		December 31, 2019
	(in thousands)
Condensed assets:
Office	$	468,599	$	460,951
Hotel	104,507		104,029
Lending	79,197		82,140
Non-segment assets	11,239		20,472
Total assets	$	663,542	$	667,592

Segment Capital Expenditures



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Capital expenditures (1):
Office	$	4,534	$	2,597
Hotel	294		608
Total capital expenditures	4,828		3,205
Loan originations	11,844		3,404
Total capital expenditures and loan originations	$	16,672	$	6,609


(1)	Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.

REDEEMABLE PREFERRED STOCK - Dividends Declared (Details) - USD ($) $ in Thousands				3 Months Ended
	Mar. 02, 2020	Jan. 28, 2020	Feb. 20, 2019	Mar. 31, 2020	Mar. 31, 2019
Series A Preferred Stock
Class of Stock [Line Items]
Number of Shares			3,149,924
Cash Dividends			$ 1,010	$ 3,252	$ 1,010
Series D Preferred Stock
Class of Stock [Line Items]
Cash Dividends				$ 3
Dividend Paid, April 15, 2020 \| Series A Preferred Stock
Class of Stock [Line Items]
Number of Shares		4,827,633
Cash Dividends		$ 547
Dividend Paid, April 15, 2020 \| Series D Preferred Stock
Class of Stock [Line Items]
Number of Shares	5,980
Cash Dividends	$ 1
Dividend Paid, March 16, 2020 \| Series A Preferred Stock
Class of Stock [Line Items]
Number of Shares		4,684,453
Cash Dividends		$ 530
Dividend Paid, March 16, 2020 \| Series D Preferred Stock
Class of Stock [Line Items]
Number of Shares	5,600
Cash Dividends	$ 0
Dividend Paid, February 18, 2020 \| Series A Preferred Stock
Class of Stock [Line Items]
Number of Shares		4,581,353
Cash Dividends		$ 516

RELATED-PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2020

RELATED-PARTY TRANSACTIONS

Asset Management and Other Fees to Related Parties

In December 2015, CIM Urban and CIM Capital, LLC (formerly CIM Investment Advisors, LLC), an affiliate of CIM REIT and CIM Group ("CIM Capital"), entered into an investment management agreement, pursuant to which CIM Urban engaged CIM Capital to provide certain services to CIM Urban (the “Investment Management Agreement”). On January 1, 2019, CIM Capital assigned its duties under the Investment Management Agreement to its four wholly-owned subsidiaries: CIM Capital Securities Management, LLC, a securities manager, CIM Capital RE Debt Management, LLC, a debt manager, CIM Capital Controlled Company Management, LLC, a controlled company manager, and CIM Capital Real Property Management, LLC, a real property manager. The "Operator" refers to CIM Investment Advisors, LLC from December 10, 2015 to December 31, 2018 and to CIM Capital and its four wholly-owned subsidiaries on and after January 1, 2019.

CIM Urban pays asset management fees to the Operator on a quarterly basis in arrears. The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets:



Daily Average Adjusted Fair Value of CIM Urban's Assets
Daily Average Adjusted Fair Value of CIM Urban's Assets				Quarterly Fee Percentage
From Greater of		To and Including		Quarterly Fee Percentage
(in thousands)
$	—	$	500,000	0.2500%
500,000		1,000,000		0.2375%
1,000,000		1,500,000		0.2250%
1,500,000		4,000,000		0.2125%
4,000,000		20,000,000		0.1000%

The Operator earned asset management fees of $2,363,000 and $4,326,000 for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020 and December 31, 2019, asset management fees of $2,364,000 and $2,356,000, respectively, were due to the Operator. On April 10, 2020, the Company issued to CIM Capital, LLC an aggregate of 203,349 shares of our Common Stock, representing approximately 1.4% of the outstanding shares of our Common Stock prior to such issuance, in lieu of cash payment of the asset management fees in respect of the first quarter of 2020.

CIM Management, Inc. and certain of its affiliates (collectively, the "CIM Management Entities"), all affiliates of CIM REIT and CIM Group, provide property management, leasing, and development services to CIM Urban. The CIM Management Entities earned property management fees, which are included in rental and other property operating expenses, totaling $427,000 and $1,005,000 for the three months ended March 31, 2020 and 2019, respectively. CIM Urban incurred $969,000 and $1,630,000 for the three months ended March 31, 2020 and 2019, respectively, reimbursable to CIM Management Entities for onsite management costs incurred on behalf of CIM Urban, which are included in rental and other property operating expenses. The CIM Management Entities earned leasing commissions of $40,000 and $22,000 for the three months ended March 31, 2020 and 2019, respectively, which were capitalized to deferred charges. In addition, the CIM Management Entities earned construction management fees of $170,000 and $100,000 for the three months ended March 31, 2020 and 2019, respectively, which were capitalized to investments in real estate.

At March 31, 2020 and December 31, 2019, fees payable and expense reimbursements due to the CIM Management Entities of $4,146,000 and $4,107,000, respectively, are included in due to related parties. Also included in due to related parties as of March 31, 2020 and December 31, 2019, were $136,000 and $97,000, respectively, due to the CIM Management Entities and certain of its affiliates.

On March 11, 2014, CIM Commercial and its subsidiaries entered into a master services agreement (the "Master Services Agreement") with CIM Service Provider, LLC (the "Administrator"), an affiliate of CIM Group, pursuant to which the Administrator provides, or arranges for other service providers to provide, management and administration services to CIM Commercial and its subsidiaries. Pursuant to the Master Services Agreement, we appointed an affiliate of CIM Group as the administrator of Urban Partners GP, LLC. Under the Master Services Agreement, CIM Commercial pays a base service fee (the "Base Service Fee") to the Administrator initially set at $1,000,000 per year (subject to an annual escalation by a specified inflation factor beginning on January 1, 2015), payable quarterly in arrears. The Administrator earned a Base Service Fee of $282,000 and $276,000 for the three months ended March 31, 2020 and 2019, respectively. We will seek to pay, subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Administrator, the Base Service Fee in respect of the first quarter of 2020 in shares of Preferred Stock. On May 11, 2020, the Master Services Agreement was amended to replace the Base Service Fee with an incentive fee (the “Incentive Fee”) pursuant to which the Administrator will receive, on a quarterly basis, 15.00% of CIM Commercial’s quarterly core funds from operations in excess of a quarterly threshold equal to 1.75% (i.e., 7.00% on an annualized basis) of CIM Commercial’s average adjusted common stockholders’ equity (i.e., common stockholders’ equity plus accumulated depreciation and amortization) for such quarter. The amendment is effective as of April 1, 2020.

In addition, pursuant to the terms of the Master Services Agreement, the Administrator may receive compensation and or reimbursement for performing certain services for CIM Commercial and its subsidiaries that are not covered by the Base Service Fee or the Incentive Fee, as the case may be. During the three months ended March 31, 2020 and 2019, such services performed by the Administrator and its affiliates included accounting, tax, reporting, internal audit, legal, compliance, risk management, IT, human resources, corporate communications, and from and after September 2018, operational and on-going support in connection with the Company's offering of Preferred Stock. The Administrator's compensation is based on the salaries and benefits of the employees of the Administrator and or its affiliates who performed these services (allocated based on the percentage of time spent on the affairs of CIM Commercial and its subsidiaries). We expensed $812,000 and $647,000 for the three months ended March 31, 2020 and 2019, respectively, for such services which are included in asset management and other fees to related parties. At March 31, 2020 and December 31, 2019, $2,491,000 and $1,673,000 was due to the Administrator, respectively, for such services.

On January 1, 2015, we entered into a Staffing and Reimbursement Agreement with CIM SBA Staffing, LLC ("CIM SBA"), an affiliate of CIM Group, and our subsidiary, PMC Commercial Lending, LLC. The agreement provides that CIM SBA will provide personnel and resources to us and that we will reimburse CIM SBA for the costs and expenses of providing such personnel and resources. For the three months ended March 31, 2020 and 2019, we incurred expenses related to services subject to reimbursement by us under the agreement of $682,000 and $637,000, respectively, which are included in asset management and other fees to related parties for lending segment costs. In addition, we deferred personnel costs of $31,000 and $6,000 for the three months ended March 31, 2020 and 2019, respectively, associated with services provided for originating loans. At March 31, 2020 and December 31, 2019, $808,000 and $1,029,000, respectively, was due to CIM SBA for costs and expenses of providing such personnel and resources.

On May 10, 2018, the Company entered into the wholesaling agreement (the "Wholesaling Agreement") with International Assets Advisors, LLC ("IAA") and CCO Capital, LLC ("CCO Capital"). CCO Capital is a registered broker dealer and is under common control with the Operator and the Administrator. IAA was the exclusive dealer manager for the Company’s public offering of Series A Preferred Units until May 31, 2019. Under the Wholesaling Agreement, among other things, CCO Capital, in its capacity as the wholesaler for the offering, assisted IAA with the sale of Series A Preferred Units. In exchange for such services, IAA paid CCO Capital a fee equal to 2.75% of the selling price of each Series A Preferred Unit for which a sale was completed, reduced by any applicable fee reallowances payable to soliciting dealers pursuant to separate soliciting dealer agreements between IAA and soliciting dealers. The foregoing fee was reduced, and may have been exceeded, by a fixed monthly payment by CCO Capital to IAA for IAA’s services in connection with periodic closings and settlements for the offering.

On May 31, 2019, the Company, IAA and CCO Capital entered into an Amendment, Assignment and Assumption Agreement (the “Assignment Agreement”), pursuant to which CCO Capital assumed all of the rights and obligations of IAA under the dealer manager agreement, dated as of June 28, 2016, as amended, by and between the Company and IAA. As a result of the Assignment Agreement, CCO Capital became the exclusive dealer manager for the Company’s public offering of the Series A Preferred Units effective as of May 31, 2019. In connection with the execution of the Assignment Agreement, the Company terminated the Wholesaling Agreement effective as of May 31, 2019. At March 31, 2020 and December 31, 2019, $889,000 and $621,000, respectively, was included in deferred costs for CCO Capital fees, of which $372,000 and $169,000, respectively, was included in due to related parties. CCO Capital incurred issuance-specific costs of $163,000 and $160,000, which were allocated to the Series A Preferred Stock for the three months ended March 31, 2020 and 2019, respectively. The Company terminated its offering of the Series A Preferred Units in January 2020. On January 28, 2020, the Company entered into the Second Amended and Restated Dealer Manager Agreement, pursuant to which CCO Capital acts as the exclusive dealer manager for the Company’s public offering of its Series A Preferred Stock and Series D Preferred Stock. In connection with such agreement, the Assignment Agreement was terminated effective as of January 28, 2020. On April 9, 2020, the Company entered into an Amendment No. 1 to the Second Amended and Restated Dealer Manager Agreement, pursuant to which the selling commissions payable to CCO Capital increased from up to 5.50% to up to 7.00% of the gross offering proceeds from shares of Series A Preferred Stock sold in the offering, subject to limited exceptions. The Company has been informed that CCO Capital generally reallows 100% of the selling commissions on sales of Series A Preferred Stock and generally reallows substantially all of the upfront dealer manager fee on sales of Series A Preferred Stock and Series D Preferred Stock, to participating broker-dealers.

For the second quarter of 2020, we will, subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Operator and or the Administrator, as the case may be, seek to pay some or all of the asset management fees and or reimbursements under the Master Services Agreement in respect of such quarter in shares of Preferred Stock. It is likely that, for the third and fourth quarter of 2020, we will, subject to applicable laws and regulations under Nasdaq and the TASE and the agreement of the Operator and or the Administrator, as the case may be, seek to pay some or all of the asset management fees and or reimbursements under the Master Services Agreement in respect of such quarter in shares of Preferred Stock.

Other

On October 1, 2015, an affiliate of CIM Group entered into a 5-year lease renewal with respect to a property owned by the Company, which lease was amended to a month-to-month term in February 2019. We recorded rental and other property income related to this tenant of $29,000 and $27,000 for the three months ended March 31, 2020 and 2019, respectively.

On May 15, 2019, CIM Group entered into an approximately eleven-year lease for approximately 32,000 rentable square feet with respect to a property owned by the Company. The lease was amended on August 7, 2019 to reduce the rentable square feet to approximately 30,000 rentable square feet. For the three months ended March 31, 2020 and 2019, we recorded rental and other property income related to this tenant of $370,000 and $0, respectively.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Rent Receivable and Charges (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Deferred Rent Receivable and Charges
Deferred rent receivable	$ 20,648	$ 19,988
Deferred leasing costs	16,763	16,881
Deferred leasing costs, accumulated amortization	7,797	7,438
Deferred offering costs	5,578	5,275
Other deferred costs	$ 498	$ 151

ACQUISITIONS AND DISPOSITIONS - Carrying Value of Assets and Liabilities at Time of Sale and Held for Sale (Details) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended
	Mar. 14, 2019	Mar. 01, 2019	Jul. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disposal Group
Ownership sold, percentage					100.00%
Liabilities
Deferred loan costs					$ 1,417
Debt, accumulated amortization					(494)
Payment of mortgages payable				$ 0	46,000
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Assets
Investments in real estate, net					270,910
Deferred rent receivable and charges, net					32,284
Other intangible assets, net					316
Total assets					303,510
Liabilities
Debt, net					278,777
Total liabilities					$ 278,777
Office Property, San Fransisco California \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Outstanding amount	$ 28,200
Office Property, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Payment of mortgages payable		$ 46,000
Two Office Properties and One Developmental Site, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposal Group
Ownership sold, percentage			100.00%
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026 \| Properties Used As Collateral For Loans \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Liabilities
Defeased amount		$ 205,500

INVESTMENTS IN REAL ESTATE (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Real Estate [Abstract]
Land	$ 134,421		$ 134,421
Land improvements	2,713		2,713
Buildings and improvements	438,842		438,349
Furniture, fixtures, and equipment	4,752		4,628
Tenant improvements	36,303		35,667
Work in progress	16,423		13,484
Investments in real estate	633,454		629,262
Accumulated depreciation	(124,176)		(120,555)
Net investments in real estate	509,278		$ 508,707
Depreciation expense	$ 4,257	$ 7,937

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Investments in Real Estate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Investments in Real Estate
Impairment of real estate	$ 0	$ 2,800	$ 66,200
Buildings and improvements \| Minimum
Investments in Real Estate
Estimated useful lives	15 years
Buildings and improvements \| Maximum
Investments in Real Estate
Estimated useful lives	40 years
Furniture, fixtures, and equipment \| Minimum
Investments in Real Estate
Estimated useful lives	3 years
Furniture, fixtures, and equipment \| Maximum
Investments in Real Estate
Estimated useful lives	5 years

STOCK-BASED COMPENSATION PLANS (Details) - Restricted share awards - USD ($) $ in Thousands		1 Months Ended			3 Months Ended
	May 11, 2020	Jul. 31, 2019	May 31, 2019	May 31, 2018	Mar. 31, 2020	Mar. 31, 2019
Share-based compensation plans
Unrecognized compensation expense					$ 19
Independent Directors
Share-based compensation plans
Granted to each individual (in shares)		81	889	1,126
Granted (in shares)		324	3,556	3,378
Award vesting period			1 year	1 year
Stock-based compensation expense					$ 56	$ 38
Subsequent Event \| Independent Directors
Share-based compensation plans
Granted to each individual (in shares)	5,478
Granted (in shares)	21,912
Award vesting period	1 year

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Carrying Amount
Liabilities:
Mortgages payable	$ 96,933	$ 96,926
Junior subordinated notes	25,321	25,299
Carrying Amount \| SBA 7(a) loans receivable, subject to loan-backed notes
Assets:
Loans receivable	25,579	27,595
Carrying Amount \| SBA 7(a) loans receivable, subject to credit risk
Assets:
Loans receivable	28,967	27,802
Carrying Amount \| SBA 7(a) loans receivable, subject to secured borrowings
Assets:
Loans receivable	10,624	12,682
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3
Liabilities:
Mortgages payable	104,937	99,764
Junior subordinated notes	24,354	24,406
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3 \| SBA 7(a) loans receivable, subject to loan-backed notes
Assets:
Loans receivable	27,781	30,076
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3 \| SBA 7(a) loans receivable, subject to credit risk
Assets:
Loans receivable	30,679	29,794
Fair Value, Measurements, Nonrecurring \| Estimated Fair Value \| Level 3 \| SBA 7(a) loans receivable, subject to secured borrowings
Assets:
Loans receivable	$ 10,720	$ 12,780

EARNINGS PER SHARE (''EPS'')

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

EARNINGS PER SHARE ("EPS")

The computations of basic EPS are based on our weighted average shares outstanding. The basic weighted average number of shares of Common Stock outstanding was 14,598,000 for each of the three months ended March 31, 2020 and 2019. In order to calculate the diluted weighted average number of shares of Common Stock outstanding for the three months ended March 31, 2020 and 2019, the basic weighted average number of shares of Common Stock outstanding was increased by 1,000 and 647,000, respectively, to reflect the dilutive effect of certain shares of our Series A Preferred Stock. No shares of Series D Preferred Stock outstanding as of March 31, 2020 had a dilutive effect, and no shares of Series D Preferred Stock were outstanding as of March 31, 2019. Outstanding Series A Preferred Warrants were not included in the computation of diluted EPS for the three months ended March 31, 2020 and 2019 because their impact was either anti-dilutive or such warrants were not exercisable during such periods (Note 11). Outstanding shares of Series L Preferred Stock were not included in the computation of diluted EPS for the three months ended March 31, 2020 and 2019 because such shares were not redeemable during such periods.

EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method for computing EPS in the respective periods. In addition, EPS is calculated independently for each component and may not be additive due to rounding.

The following table reconciles the numerator and denominator used in computing our basic and diluted per-share amounts for net (loss) income attributable to common stockholders for the three months ended March 31, 2020 and 2019:



	Three Months Ended March 31,
	2020			2019
	(in thousands, except per share amounts)
Numerator:
Net (loss) income attributable to common stockholders	$	(6,787	)	$	287,631
Redeemable preferred stock dividends declared on dilutive shares	(1		)	492
Diluted net (loss) income attributable to common stockholders	$	(6,788	)	$	288,123
Denominator:
Basic weighted average shares of Common Stock outstanding	14,598			14,598
Effect of dilutive securities—contingently issuable shares	1			647
Diluted weighted average shares and common stock equivalents outstanding	14,599			15,245
Net (loss) income attributable to common stockholders per share:
Basic	$	(0.46	)	$	19.70
Diluted	$	(0.46	)	$	18.90

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Line Items]
Fixed lease payments	$ 13,345,000	$ 30,896,000
Variable lease payments	1,474,000	2,685,000
Rental and other property income	14,819,000	33,581,000
Hotel income	7,759,000	9,804,000
Tenant recoveries outside of lease agreements	0	205,000
Remaining performance obligations	0
Rental and other property income
Disaggregation of Revenue [Line Items]
Hotel income	462,000	736,000
Interest and other income
Disaggregation of Revenue [Line Items]
Hotel income	32,000	49,000
Hotel income
Disaggregation of Revenue [Line Items]
Hotel income	$ 8,253,000	$ 10,589,000

INVESTMENTS IN REAL ESTATE

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

INVESTMENTS IN REAL ESTATE

Investments in real estate consist of the following:



	March 31, 2020			December 31, 2019
	(in thousands)
Land	$	134,421		$	134,421
Land improvements	2,713			2,713
Buildings and improvements	438,842			438,349
Furniture, fixtures, and equipment	4,752			4,628
Tenant improvements	36,303			35,667
Work in progress	16,423			13,484
Investments in real estate	633,454			629,262
Accumulated depreciation	(124,176		)	(120,555		)
Net investments in real estate	$	509,278		$	508,707

We recorded depreciation expense of $4,257,000 and $7,937,000 for the three months ended March 31, 2020 and 2019, respectively.

SEGMENT DISCLOSURE - Assets and Capital Expenditures and Loan Originations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Segment disclosure
Total assets	$ 663,542		$ 667,592
Total capital expenditures	4,828	$ 3,205
Loan originations	11,844	3,404
Total capital expenditures and loan originations	16,672	6,609
Office
Segment disclosure
Total assets	468,599		460,951
Total capital expenditures	4,534	2,597
Hotel
Segment disclosure
Total assets	104,507		104,029
Total capital expenditures	294	$ 608
Lending
Segment disclosure
Total assets	79,197		82,140
Non-segment
Segment disclosure
Total assets	$ 11,239		$ 20,472

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

Hedges of Interest Rate Risk

In order to manage financing costs and interest rate exposure related to the one-month LIBOR indexed variable rate borrowings, on August 13, 2015, we entered into ten interest rate swap agreements with multiple counterparties totaling $385,000,000 of notional value. These swap agreements became effective on November 2, 2015. During the year ended December 31, 2017, we repaid $215,000,000 of outstanding one-month LIBOR indexed variable rate borrowings and we terminated seven interest rate swaps with an aggregate notional value of $215,000,000, for which we received termination payments, net of fees, of $973,000. On December 28, 2018, we repaid $40,000,000 of outstanding one-month LIBOR indexed variable rate borrowings and we terminated one interest rate swap with a notional value of $50,000,000, for which we received a termination payment, net of fees, of $684,000. On March 11, 2019, we repaid $120,000,000 of outstanding one-month LIBOR indexed variable rate borrowings (Note 7) and we terminated our two remaining interest rate swaps with an aggregate notional value of $120,000,000, for which we received aggregate termination payments, net of fees, of $1,302,000. The fair value of our two remaining swaps at the time of termination was $1,421,000 resulting in a net loss of $119,000, which was recorded as a net increase to interest expense on our consolidated statement of operations for the three months ended March 31, 2019.

Each of our interest rate swap agreements initially met the criteria for cash flow hedge accounting treatment and we had designated the interest rate swap agreements as cash flow hedges of the risk of variability attributable to changes in the one-month LIBOR. Accordingly, the interest rate swaps were recorded on our consolidated balance sheets at fair value, and prior to August 1, 2018, the changes in the fair value of the swaps were recorded in OCI and reclassified to earnings as an adjustment to interest expense as interest became receivable or payable (Note 2). On July 31, 2018, we determined the hedged forecasted transaction was no longer probable of occurring so all subsequent changes in the fair value of our interest rate swaps were included in interest expense on our consolidated statements of operations. The balance in AOCI as of July 31, 2018 was reclassified to earnings as an adjustment to interest expense on our consolidated statements of operations as the originally designated forecasted transaction affected earnings. For the three months ended March 31, 2019, $1,806,000 was reclassified from AOCI and decreased interest expense on our consolidated statements of operations, which included a write off of $1,580,000 at the time our two remaining interest rate swaps were terminated. Beginning on August 1, 2018, changes in the fair value of the swaps were recorded in interest expense on our consolidated statements of operations. For the three months ended March 31, 2019, $209,000 was included as an increase in interest expense on our consolidated statement of operations related to the change in the fair value of our interest rate swaps.

Credit-Risk-Related Contingent Features

Each of our interest rate swap agreements contained a provision under which we could also be declared in default under such agreements if we defaulted on the revolving credit facility or if we defaulted on the term loan facility. As of March 11, 2019, the date of termination of such swaps, there have been no events of default under our interest rate swap agreements.

Impact of Hedges on AOCI and Consolidated Statements of Operations

The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Accumulated other comprehensive income, at beginning of period	$	—	$	1,806
Other comprehensive income before reclassifications	—		—
Amounts reclassified to accumulated other comprehensive income (loss) (1)	—		(1,806		)
Net current period other comprehensive income (loss)	—		(1,806		)
Accumulated other comprehensive income, at end of period	$	—	$	—


(1)	The amounts from AOCI were reclassified as a decrease to interest expense in our consolidated statement of operations for the three months ended March 31, 2019.

Reclassifications from AOCI

As of July 31, 2018, the hedged forecasted transaction was no longer probable of occurring so the interest rate swaps were no longer eligible for hedge accounting and all future changes in fair value of the interest rate swaps were recorded in interest expense on our consolidated statements of operations and no further amounts were deferred into AOCI. The balance in AOCI as of July 31, 2018 was reclassified to earnings as an adjustment to interest expense on our consolidated statements of operations as the originally designated forecasted transaction affected earnings. On March 11, 2019, the remaining balance in AOCI was reclassified to earnings as a decrease to interest expense on our consolidated statements of operations in connection with the termination of our two remaining interest rate swaps.

LOANS RECEIVABLE

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

LOANS RECEIVABLE

Loans receivable consist of the following:



	March 31, 2020			December 31, 2019
	(in thousands)
SBA 7(a) loans receivable, subject to loan-backed notes	$	25,581		$	27,598
SBA 7(a) loans receivable, subject to credit risk	28,395			27,290
SBA 7(a) loans receivable, subject to secured borrowings	10,586			12,644
Loans receivable	64,562			67,532
Deferred capitalized costs	1,139			1,145
Loan loss reserves	(531		)	(598		)
Loans receivable, net	$	65,170		$	68,079

SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes—Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds received from the transfer are reflected as loan-backed notes payable (Note 7).

SBA 7(a) Loans Receivable, Subject to Credit Risk—Represents the unguaranteed portions of loans originated under the SBA 7(a) Program which were retained by the Company and the government guaranteed portions of such loans that have not yet been fully funded or sold.

SBA 7(a) Loans Receivable, Subject to Secured Borrowings—Represents the government guaranteed portions of loans originated under the SBA 7(a) Program which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal.

At March 31, 2020 and December 31, 2019, 97.2% and 99.6%, respectively, of our loans subject to credit risk were current. We classify loans with negative characteristics in substandard categories ranging from special mention to doubtful. At March 31, 2020 and December 31, 2019, $1,339,000 and $1,362,000, respectively, of loans subject to credit risk were classified in substandard categories.

At March 31, 2020 and December 31, 2019, our loans subject to credit risk were 98.8% and 98.7%, respectively, concentrated in the hospitality industry.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted to help provide financial stability and relief for individuals and businesses affected by COVID-19. Section 1112 of the CARES Act (“Section 1112”) provides for six months of subsidy loan payments to be made on all existing SBA 7(a) loans in ‘regular’ servicing. Borrowers’ scheduled payments of principal and interest will be made by the SBA and these payments do not have to be repaid by the borrower. The overwhelming majority of borrowers under our SBA 7(a) lending platform qualify for relief under Section 1112. The relief also applies to any new borrowers for covered loans made through September 27, 2020. Thus, while the long-term economic impact of COVID-19 to borrowers under our SBA 7(a) lending platform remains unclear, we do not expect new delinquencies to be material in the aggregate for loans currently serviced under our SBA 7(a) lending platform through August 2020 because of the relief provided by Section 1112.

The CARES Act also implemented the Paycheck Protection Program, a new SBA 7(a) loan program. The Paycheck Protection Program provides small businesses with funds to pay up to 2.5 months of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. These funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (according to the United States Treasury, due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll cost). Loan payments will also be deferred for six months. For borrowers who do not meet the criteria required for their loans to be forgiven, their loans will convert to a loan with a twenty-four month term and an interest rate of 1.00%. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. These loans are 100% guaranteed by the SBA provided that originating lenders follow the requirements set forth in the Paycheck Protection Program.

As a SBA 7(a) lender, we are an authorized lender under the Paycheck Protection Program and have originated $13,500,000 of loans under the program as of May 8, 2020. We expect a significant portion of these loans to be forgiven either in part or in full and we will receive payment from the SBA for any such forgiven amounts, including both principal and accrued interest.

FUTURE MINIMUM LEASE RENTALS (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Leases, Operating [Abstract]
2020 (Nine months ending December 31, 2020)	$ 35,550
2021	42,404
2022	39,079
2023	35,512
2024	34,144
Thereafter	50,923
Total	$ 237,612

ACQUISITIONS AND DISPOSITIONS - Disposals (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Jul. 31, 2019 property	Mar. 31, 2020 USD ($) property	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($) ft²	Dec. 31, 2019 property
Disposal Group
Ownership sold, percentage				100.00%
Disposed Property Information
Sales Price		$ 0		$ 652,891
Gain on sale of real estate		0		377,581
Impairment of real estate		$ 0	$ 2,800	66,200
Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Sales Price				694,566
Transaction Costs				13,948
Gain on sale of real estate				$ 377,581
March Oakland Properties, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²				975,596
Sales Price				$ 512,016
Transaction Costs				8,971
Gain on sale of real estate				$ 289,779
830 1st Street, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²				247,337
Sales Price				$ 116,550
Transaction Costs				2,438
Gain on sale of real estate				$ 45,710
260 Townsend Street, San Francisco, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Square Feet \| ft²				66,682
Sales Price				$ 66,000
Transaction Costs				2,539
Gain on sale of real estate				$ 42,092
Two Office Properties and One Developmental Site, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposal Group
Ownership sold, percentage	100.00%
Office properties
Disposed Property Information
Number of real estate properties sold \| property		8			8
Office properties \| Two Office Properties and One Developmental Site, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Number of real estate properties sold \| property	2
Development site
Disposed Property Information
Number of real estate properties sold \| property		1			1
Development site \| Two Office Properties and One Developmental Site, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Disposed Property Information
Number of real estate properties sold \| property	1

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Changes in the Balance of Each Component of AOCI Related to Interest Rate Swaps

The changes in the balance of each component of AOCI related to our interest rate swaps designated as cash flow hedges are as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Accumulated other comprehensive income, at beginning of period	$	—	$	1,806
Other comprehensive income before reclassifications	—		—
Amounts reclassified to accumulated other comprehensive income (loss) (1)	—		(1,806		)
Net current period other comprehensive income (loss)	—		(1,806		)
Accumulated other comprehensive income, at end of period	$	—	$	—


(1)	The amounts from AOCI were reclassified as a decrease to interest expense in our consolidated statement of operations for the three months ended March 31, 2019.

OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Liabilities and Related Accumulated Amortization and Accretion

A schedule of our intangible assets and liabilities and related accumulated amortization and accretion as of March 31, 2020 and December 31, 2019 is as follows:



	Assets								Liabilities
March 31, 2020	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	37		$	12,135		$	2,957	$	(2,368	)
Accumulated amortization	(11		)	(8,305		)	—		1,340
	$	26		$	3,830		$	2,957	$	(1,028	)
Average useful life (in years)	7			9			Indefinite		4



	Assets								Liabilities
December 31, 2019	Acquired Above-Market Leases			Acquired In-Place Leases			Trade Name and License		Acquired Below-Market Leases
	(in thousands)
Gross balance	$	74		$	13,653		$	2,957	$	(3,521	)
Accumulated amortization	(42		)	(9,382		)	—		2,239
	$	32		$	4,271		$	2,957	$	(1,282	)
Average useful life (in years)	5			8			Indefinite		4

Schedule of Future Amortization and Accretion of Acquisition Related Intangible Assets

A schedule of future amortization and accretion of acquisition related intangible assets and liabilities as of March 31, 2020, is as follows:



	Assets				Liabilities
Years Ending December 31,	Acquired Above-Market Leases		Acquired In-Place Leases		Acquired Below-Market Leases
	(in thousands)
2020 (Nine months ending December 31, 2020)	$	3	$	908	$	(447	)
2021	5		899		(347		)
2022	5		663		(234		)
2023	6		375		—
2024	6		375		—
Thereafter	1		610		—
	$	26	$	3,830	$	(1,028	)

RELATED-PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2020

Asset Management Fees Calculation

The fee is calculated as a percentage of the daily average adjusted fair value of CIM Urban's assets:



Daily Average Adjusted Fair Value of CIM Urban's Assets
Daily Average Adjusted Fair Value of CIM Urban's Assets				Quarterly Fee Percentage
From Greater of		To and Including		Quarterly Fee Percentage
(in thousands)
$	—	$	500,000	0.2500%
500,000		1,000,000		0.2375%
1,000,000		1,500,000		0.2250%
1,500,000		4,000,000		0.2125%
4,000,000		20,000,000		0.1000%

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 07, 2020
Document and Entity Information
Entity Registrant Name	CIM Commercial Trust Corp
Entity Central Index Key	0000908311
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		14,827,410
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

ACQUISITIONS AND DISPOSITIONS (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Schedule of Assets Sold and Held for Sale

The following is the detail of the carrying amounts of assets and liabilities

at the time of the sales of the properties that occurred during the three months ended March 31, 2019:



	(in thousands)
Assets
Investments in real estate, net	$	270,910
Deferred rent receivable and charges, net	32,284
Other intangible assets, net	316
Total assets	$	303,510
Liabilities
Debt, net (1) (2)	$	278,777
Total liabilities	$	278,777


(1)	Debt, net is presented net of deferred loan costs of $1,417,000 and accumulated amortization of $494,000.

(2)

A mortgage loan with an outstanding principal balance of $28,200,000 was assumed by the buyer in connection with the sale of our property in San Francisco, California. A mortgage loan with an outstanding principal balance of $46,000,000 was prepaid in connection with the sale in March 2019 of our property in Washington, D.C. that was collateral for the loan. Mortgage loans with an aggregate outstanding principal balance of $205,500,000 were legally defeased in connection with the sale of the March Oakland Properties that were collateral for the loans.

We sold 100% fee-simple interests in the following properties to unrelated third-parties during the three months ended March 31, 2019. Transaction costs related to these sales were expensed as incurred.



Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
				$	694,566	$	13,948	$	377,581


(1)	The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760

Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760

+ Details

STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

Dividends

Cash dividends per share of Common Stock paid in respect of the three months ended March 31, 2020 and 2019 consist of the following:



Declaration Date	Payment Date	Type	Cash Dividend Per Common Share
March 2, 2020	March 25, 2020	Regular Quarterly	$	0.075

February 20, 2019	March 25, 2019	Regular Quarterly	$	0.375

Series A Preferred Warrants

Prior to February 2020, the Series A Preferred Stock was sold as a unit that included one share of Series A Preferred Stock (Note 10) and one Series A Preferred Warrant (Note 10) that allowed holders of Series A Preferred Warrants to purchase 0.25 of a share of Common Stock. The Series A Preferred Warrants are exercisable beginning on the first anniversary of the date of their original issuance until and including the fifth anniversary of the date of such issuance. At the time of issuance, the exercise price of each Series A Preferred Warrant was at a 15.0% premium to the per share estimated NAV of our Common Stock then most recently published and designated as the Applicable NAV. However, in accordance with the terms of the Series A Preferred Warrants, the exercise price of each Series A Preferred Warrant issued prior to the Reverse Stock Split was automatically adjusted to reflect the effect of the Reverse Stock Split and, in the discretion of our Board of Directors, the exercise price and the number of shares issuable upon exercise of each Series A Preferred Warrant issued prior to the special dividend of $42.00 per share of Common Stock ($613,294,000 in the aggregate) paid to stockholders of record at the close of business on August 19, 2019 (the “Special Dividend") was adjusted to reflect the effect of the Special Dividend.

Proceeds and expenses from the sale of the Series A Preferred Units are allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance. As of March 31, 2020, we had issued 4,603,287 Series A Preferred Warrants to purchase 1,194,159 shares of Common Stock in connection with our offering of Series A Preferred Units and allocated net proceeds of $614,000, after specifically identifiable offering costs and allocated general offering costs, to the Series A Preferred Warrants in permanent equity.

CONCENTRATIONS (Details) $ in Thousands	3 Months Ended		12 Months Ended
CONCENTRATIONS (Details) $ in Thousands	Mar. 31, 2020 USD ($) property	Mar. 31, 2019	Dec. 31, 2019 USD ($) property state
Concentration Risk [Line Items]
Number of states in which properties are owned \| state			2
Office properties
Concentration Risk [Line Items]
Number of real estate properties owned	8		8
Hotel properties
Concentration Risk [Line Items]
Number of real estate properties owned	1		1
Parking garages
Concentration Risk [Line Items]
Number of real estate properties owned	1		1
Development site
Concentration Risk [Line Items]
Number of real estate properties owned	1		1
Revenues \| Tenant Revenue Concentrations \| Kaiser Foundation Health Plan, Inc.
Concentration Risk [Line Items]
Amounts due from tenant revenue concentrations \| $	$ 11		$ 23
Revenues \| Tenant Revenue Concentrations \| Kaiser Foundation Health Plan, Inc. \| California
Concentration Risk [Line Items]
Number of properties occupied by tenant revenue concentrations	2
Revenues \| Tenant Revenue Concentrations \| Governmental Tenants
Concentration Risk [Line Items]
Amounts due from tenant revenue concentrations \| $	$ 101		$ 282
Revenues \| Geographical concentrations
Concentration Risk [Line Items]
Concentration risk, percent	100.00%	100.00%
Revenues \| Geographical concentrations \| California
Concentration Risk [Line Items]
Concentration risk, percent	91.90%	76.50%
Revenues \| Geographical concentrations \| Texas
Concentration Risk [Line Items]
Concentration risk, percent	7.70%	3.60%
Revenues \| Geographical concentrations \| Washington, D.C.
Concentration Risk [Line Items]
Concentration risk, percent	0.40%	19.90%
Real Estate Investments \| Geographical concentrations
Concentration Risk [Line Items]
Concentration risk, percent	100.00%		100.00%
Real Estate Investments \| Geographical concentrations \| California
Concentration Risk [Line Items]
Concentration risk, percent	93.90%		94.40%
Real Estate Investments \| Geographical concentrations \| Texas
Concentration Risk [Line Items]
Concentration risk, percent	6.10%		5.60%
Office Properties Segment \| Revenues \| Tenant Revenue Concentrations \| Kaiser Foundation Health Plan, Inc.
Concentration Risk [Line Items]
Concentration risk, percent	25.30%	11.30%
Office Properties Segment \| Revenues \| Tenant Revenue Concentrations \| Governmental Tenants
Concentration Risk [Line Items]
Concentration risk, percent	2.20%	23.30%

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, shares issued (in shares)	14,602,149	14,602,149
Common stock, shares outstanding (in shares)	14,602,149	14,602,149
Series A Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	36,000,000	36,000,000
Preferred stock, shares issued (in shares)	1,692,338	1,630,821
Preferred stock, shares outstanding (in shares)	1,687,938	1,630,421
Preferred stock, liquidation preference per share (in usd per share)	$ 25.00	$ 25.00
Series A Cumulative Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	36,000,000	36,000,000
Preferred stock, shares issued (in shares)	3,159,029	2,853,555
Preferred stock, shares outstanding (in shares)	3,138,916	2,837,094
Preferred stock, liquidation preference per share (in usd per share)	$ 25.00	$ 25.00
Series D Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.001
Preferred stock, shares authorized (in shares)	32,000,000
Preferred stock, shares issued (in shares)	5,980
Preferred stock, shares outstanding (in shares)	5,980
Preferred stock, liquidation preference per share (in usd per share)	$ 25.00
Series L Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	9,000,000	9,000,000
Preferred stock, shares issued (in shares)	8,080,740	8,080,740
Preferred stock, shares outstanding (in shares)	5,387,160	5,387,160
Preferred stock, liquidation preference per share (in usd per share)	$ 28.37	$ 28.37

Consolidated Statements of Equity - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Accumulated Other Comprehensive Income

Distributions in Excess of Earnings

Non-controlling Interests

Series A Preferred Stock

Preferred Stock

Series A Preferred Stock

Distributions in Excess of Earnings

Series D Preferred Stock

Preferred Stock

Series D Preferred Stock

Distributions in Excess of Earnings

Series L Preferred Stock

Preferred Stock

Beginning balance (in shares) at Dec. 31, 2018

14,598,357

1,281,804

8,080,740

Beginning balance at Dec. 31, 2018

$ 617,275

$ 44

$ 790,354

$ 1,806

$ (436,883)

$ 837

$ 31,866

$ 229,251

Increase (Decrease) in Stockholders' Equity

Stock-based compensation expense

Common dividends

^[1]

(5,474)

Issuance of Series A Preferred Warrants

Dividends to holders of Preferred Stock

$ (1,010)

Reclassification of Series A Preferred Stock to permanent equity (in shares)

389,577

Reclassification of Series A Preferred Stock to permanent equity

8,890

(822)

$ 9,712

Redeemable Preferred Stock deemed dividends

Redemption of Series A Preferred Stock (in shares)

(1,500)

Redemption of Series A Preferred Stock

(38)

(1)

$ (37)

Other comprehensive income (loss)

(1,806)

Net (loss) income

291,623

291,797

(174)

Ending balance (in shares) at Mar. 31, 2019

14,598,357

1,669,881

8,080,740

Ending balance at Mar. 31, 2019

909,507

$ 44

789,578

$ 0

(151,570)

663

$ 41,541

$ 229,251

Beginning balance (in shares) at Dec. 31, 2019

14,602,149

2,837,094

5,387,160

Beginning balance at Dec. 31, 2019

278,195

$ 15

794,825

(740,617)

505

$ 70,633

$ 0

$ 152,834

Increase (Decrease) in Stockholders' Equity

Stock-based compensation expense

Common dividends

(1,095)

Issuance of Series A Preferred Warrants

Dividends to holders of Preferred Stock

$ (3,252)

$ (3)

Issuance of Series D Preferred Stock (in shares)

5,980

Issuance of Series D Preferred Stock

145

(5)

$ 150

Reclassification of Series A Preferred Stock to permanent equity (in shares)

304,274

Reclassification of Series A Preferred Stock to permanent equity

6,948

(640)

$ 7,588

Redeemable Preferred Stock deemed dividends

(161)

Redemption of Series A Preferred Stock (in shares)

(2,452)

Redemption of Series A Preferred Stock

(66)

(10)

$ (61)

Other comprehensive income (loss)

Net (loss) income

(1,256)

(1,260)

Ending balance (in shares) at Mar. 31, 2020

14,602,149

3,138,916

5,980

5,387,160

Ending balance at Mar. 31, 2020

$ 279,539

$ 15

$ 794,269

$ (746,398)

$ 509

$ 78,160

$ 150

$ 152,834

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2020

Stockholders' Equity Note [Abstract]

Dividends Declared

Cash dividends on our Series D Preferred Stock paid in respect of the three months ended March 31, 2020 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends
			(in thousands)
March 2, 2020	April 15, 2020	5,980	$	1
March 2, 2020	March 16, 2020	5,600	$	—

Cash dividends on our Series A Preferred Stock paid in respect of the three months ended March 31, 2020 and 2019 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends
			(in thousands)
January 28, 2020	April 15, 2020	4,827,633	$	547
January 28, 2020	March 16, 2020	4,684,453	$	530
January 28, 2020	February 18, 2020	4,581,353	$	516

February 20, 2019	April 15, 2019	3,149,924	$	1,010

Cash dividends per share of Common Stock paid in respect of the three months ended March 31, 2020 and 2019 consist of the following:



Declaration Date	Payment Date	Type	Cash Dividend Per Common Share
March 2, 2020	March 25, 2020	Regular Quarterly	$	0.075

February 20, 2019	March 25, 2019	Regular Quarterly	$	0.375

FUTURE MINIMUM LEASE RENTALS

3 Months Ended

Mar. 31, 2020

Leases, Operating [Abstract]

FUTURE MINIMUM LEASE RENTALS

Future minimum rental revenue under long-term operating leases at March 31, 2020, excluding tenant reimbursements of certain costs, are as follows:



Years Ending December 31,	Total
	(in thousands)
2020 (Nine months ending December 31, 2020)	$	35,550
2021	42,404
2022	39,079
2023	35,512
2024	34,144
Thereafter	50,923
	$	237,612

LOANS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Schedule of Loans Receivable

Loans receivable consist of the following:



	March 31, 2020			December 31, 2019
	(in thousands)
SBA 7(a) loans receivable, subject to loan-backed notes	$	25,581		$	27,598
SBA 7(a) loans receivable, subject to credit risk	28,395			27,290
SBA 7(a) loans receivable, subject to secured borrowings	10,586			12,644
Loans receivable	64,562			67,532
Deferred capitalized costs	1,139			1,145
Loan loss reserves	(531		)	(598		)
Loans receivable, net	$	65,170		$	68,079

STOCK-BASED COMPENSATION PLANS	3 Months Ended
STOCK-BASED COMPENSATION PLANS	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION PLANS	STOCK-BASED COMPENSATION PLANS In May 2018, we granted awards of 1,126 restricted shares of Common Stock to each of the independent members of the Board of Directors (3,378 in aggregate) under the 2015 Equity Incentive Plan, which fully vested in May 2019 based on one year of continuous service. In May 2019, we granted awards of 889 restricted shares of Common Stock to each of the independent members of the Board of Directors (3,556 in aggregate) under the 2015 Equity Incentive Plan, which vested in May 2020 based on one year of continuous service. In July 2019, we granted awards of 81 restricted shares of Common Stock to each of the independent members of the Board of Directors (324 in aggregate) under the 2015 Equity Incentive Plan, which vested in May 2020 concurrent with the vesting of the restricted shares of Common Stock granted in May 2019. Compensation expense related to these restricted shares of Common Stock is recognized over the vesting period. We recorded compensation expense related to these restricted shares of Common Stock in the amount of $56,000 and $38,000 for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $19,000 of total unrecognized compensation expense related to restricted shares of Common Stock which will be recognized during the second quarter of 2020. In May 2020, we granted awards of 5,478 restricted shares of Common Stock to each of the independent members of the Board of Directors (21,912 in aggregate) under the 2015 Equity Incentive Plan, which vest after one year of continuous service.

CONCENTRATIONS

3 Months Ended

Mar. 31, 2020

Risks and Uncertainties [Abstract]

CONCENTRATIONS

Tenant Revenue Concentrations—Rental and other property income from Kaiser Foundation Health Plan, Incorporated ("Kaiser"), which occupied space in two of our Oakland, California properties, accounted for approximately 25.3% and 11.3% of our office segment revenues for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020 and December 31, 2019, $11,000 and $23,000, respectively, was due from Kaiser.

Rental and other property income from the U.S. General Services Administration and other government agencies (collectively, "Governmental Tenants"), which primarily occupied space in our properties located in Washington, D.C., which were sold during the year ended December 31, 2019, accounted for approximately 2.2% and 23.3% of our office segment revenues for the three months ended March 31, 2020 and 2019, respectively. At March 31, 2020 and December 31, 2019, $101,000 and $282,000, respectively, was due from Governmental Tenants.

Geographical Concentrations of Investments in Real Estate—As of March 31, 2020 and December 31, 2019, we owned 8 office properties, one hotel property, one parking garage, and one development site, which is being used as a parking lot. These properties are located in two states, and in Washington, D.C. as of March 31, 2019.

Our revenue concentrations from properties are as follows:



	Three Months Ended March 31,
	2020		2019
California	91.9	%	76.5	%
Texas	7.7		3.6
Washington, D.C.	0.4		19.9
	100.0	%	100.0	%

Our real estate investments concentrations from properties are as follows:



	March 31, 2020		December 31, 2019
California	93.9	%	94.4	%
Texas	6.1		5.6
	100.0	%	100.0	%

DEBT

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

DEBT

Information on our debt is as follows:



	March 31, 2020			December 31, 2019
	(in thousands)
Mortgage loan with a fixed interest rate of 4.14% per annum, with monthly payments of interest only, and a balance of $97,100,000 due on July 1, 2026. The loan is nonrecourse.	$	97,100		$	97,100
Deferred loan costs related to mortgage loans	(167		)	(174		)
Total Mortgages Payable	96,933			96,926
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 5.42% and 5.68% at March 31, 2020 and December 31, 2019, respectively.	7,312			7,845
Secured borrowing principal on SBA 7(a) loans sold for excess spread—variable rate, reset quarterly, based on prime rate with weighted average coupon rate of 3.07% and 3.32% at March 31, 2020 and December 31, 2019, respectively.	2,826			4,307
	10,138			12,152
Unamortized premiums	582			629
Total Secured Borrowings—Government Guaranteed Loans	10,720			12,781
Revolving credit facility	159,500			153,000
SBA 7(a) loan-backed notes with a variable interest rate which resets monthly based on the lesser of the one-month LIBOR plus 1.40% or the prime rate less 1.08%, with payments of interest and principal due monthly. Balance due at maturity in March 20, 2043.	18,033			22,282
Junior subordinated notes with a variable interest rate which resets quarterly based on the three-month LIBOR plus 3.25%, with quarterly interest only payments. Balance due at maturity on March 30, 2035.	27,070			27,070
	204,603			202,352
Deferred loan costs related to other debt	(2,608		)	(2,867		)
Discount on junior subordinated notes	(1,749		)	(1,771		)
Total Other Debt	200,246			197,714
Total Debt	$	307,899		$	307,421

The mortgages payable are secured by deeds of trust on certain of the properties and assignments of rents. The junior subordinated notes may be redeemed at par at our option.

Secured borrowings—government guaranteed loans represent sold loans which are treated as secured borrowings because the loan sales did not meet the derecognition criteria provided for in ASC 860-30, Secured Borrowing and Collateral. These loans included cash premiums that are amortized as a reduction to interest expense over the life of the loan using the effective interest method and are fully amortized when the underlying loan is repaid in full.

SBA 7(a) loan-backed notes are secured by deeds of trust or mortgages.

Deferred loan costs, which represent legal and third-party fees incurred in connection with our borrowing activities, are capitalized and amortized to interest expense on a straight-line basis over the life of the related loan, approximating the effective interest method. Deferred loan costs of $4,535,000 and $4,535,000 are presented net of accumulated amortization of $1,760,000 and $1,494,000 at March 31, 2020 and December 31, 2019, respectively, and are a reduction to total debt.

In June 2016, we entered into six mortgage loan agreements with an aggregate principal amount of $392,000,000. A portion of the net proceeds from the loans was used to repay outstanding balances under our previous unsecured credit facility and the remaining portion was used to repurchase shares of our Common Stock in a private repurchase in September 2016. On September 21, 2017, in connection with the sale of an office property in Los Angeles, California, one mortgage loan with an outstanding principal balance of $21,700,000, collateralized by such property, was assumed by the buyer. On March 1, 2019, additional mortgage loans with an aggregate outstanding principal balance of $205,500,000 at such time, were legally defeased in connection with the sale of the related properties. The cash outlay required for this defeasance in the net amount of $224,086,000 was based on the purchase price of U.S. government securities that will generate sufficient cash flow to fund continued interest payments on the loans from the effective date of this defeasance through the date on which we could repay the loans at par. As a result of this defeasance, we recognized a loss on early extinguishment of debt of $19,290,000 for the three months ended March 31, 2019, which represented the sum of the difference between the purchase price of U.S. government securities of $224,086,000 and the aggregate outstanding principal balance of the mortgage loans of $205,500,000, the write-off of deferred loan costs of $637,000 and related accumulated amortization of $170,000, and transaction costs of $237,000. On March 14, 2019, in connection with the sale of an office property in San Francisco, California, one mortgage loan with an outstanding principal balance of $28,200,000 at such time was assumed by the buyer. As a result of this assumption, we recognized a loss on early extinguishment of debt of $178,000 for the three months ended March 31, 2019, which represented the write-off of deferred loan costs of $243,000 and related accumulated amortization of $65,000. On May 16, 2019, one mortgage loan with an outstanding principal balance of $39,500,000 at such time, was legally defeased in connection with the sale of the related property. The cash outlay required for this defeasance in the net amount of $44,108,000 was based on the purchase price of U.S. government securities that will generate sufficient cash flow to fund continued interest payments on the loan from the effective date of this defeasance through the date on which we could repay the loan at par. As a result of this defeasance, we recognized a loss on early extinguishment of debt of $4,911,000 for the year ended December 31, 2019, which represented the sum of the difference between the purchase price of U.S. government securities of $44,108,000 and the outstanding principal balance of the mortgage loan of $39,500,000, the write-off of deferred loan costs of $287,000 and related accumulated amortization of $82,000, and transaction costs of $98,000.

On March 1, 2019, in connection with the sale of an office property in Washington, D.C., we prepaid the related mortgage loan with an outstanding principal balance of $46,000,000 at such time, using proceeds from the sale. As a result, we recognized a loss on early extinguishment of debt of $5,603,000 for the three months ended March 31, 2019, which represented a prepayment penalty of $5,325,000 and the write-off of deferred loan costs of $537,000 and related accumulated amortization of $259,000.

On May 30, 2018, we completed a securitization of the unguaranteed portion of certain of our SBA 7(a) loans receivable with the issuance of $38,200,000 of unguaranteed SBA 7(a) loan-backed notes. The securitization uses a trust formed for the benefit of the note holders (the "Trust") which is considered a variable interest entity ("VIE"). Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 810, Consolidation, the Company determined that it is the primary beneficiary based on its power to direct activities through its role as servicer and its obligations to absorb losses and right to receive benefits. The SBA 7(a) loan-backed notes are collateralized solely by the right to receive payments and other recoveries attributable to the unguaranteed portions of certain of our SBA 7(a) loans receivable. The SBA 7(a) loan-backed notes mature on March 20, 2043, with monthly payments due as payments on the collateralized loans are received. Based on the anticipated repayments of our collateralized SBA 7(a) loans, at issuance, we estimated the weighted average life of the SBA 7(a) loan-backed notes to be approximately two years. The SBA 7(a) loan-backed notes bear interest at the lower of the one-month LIBOR plus 1.40% or the prime rate less 1.08%. We reflect the SBA 7(a) loans receivable as assets on our consolidated balance sheets and the SBA 7(a) loan-backed notes as debt on our consolidated balance sheets. The restricted cash on our consolidated balance sheets as of March 31, 2020 and December 31, 2019 included $1,725,000 and $3,306,000, respectively, of funds related to our SBA 7(a) loan-backed notes.

In October 2018, CIM Commercial entered into a revolving credit facility with a bank syndicate pursuant to which CIM Commercial can borrow up to a maximum of $250,000,000, subject to a borrowing base calculation. The revolving credit facility is secured by deeds of trust on certain properties. Outstanding advances under the revolving credit facility bear interest at (i) the base rate plus 0.55% or (ii) LIBOR plus 1.55%. At March 31, 2020 and December 31, 2019, the variable interest rate was 2.41% and 3.29%, respectively. The interest rate on the first $120,000,000 of one-month LIBOR indexed variable rate borrowings on our revolving credit facility was effectively converted to a fixed rate of 3.11% through interest rate swaps until such swaps were terminated on March 11, 2019. The revolving credit facility is also subject to an unused commitment fee of 0.15% or 0.25% depending on the amount of aggregate unused commitments. The revolving credit facility matures in October 2022 and provides for one one-year extension option under certain conditions. On October 30, 2018, we borrowed $170,000,000 on this facility to repay outstanding borrowings on our unsecured term loan facility. On December 28, 2018, we repaid $40,000,000 of outstanding borrowings on our revolving credit facility and we terminated one interest rate swap with a notional value of $50,000,000 (Note 12). On February 28, 2019 and March 11, 2019, we repaid $10,000,000 and $120,000,000, respectively, of outstanding borrowings on our revolving credit facility using cash on hand and net proceeds from sales of assets in the first quarter of 2019 (Note 3), and, in connection with the March 11, 2019 repayment, we terminated our two remaining interest rate swaps, which had an aggregate notional value of $120,000,000 (Note 12). At March 31, 2020 and December 31, 2019, $159,500,000 and $153,000,000, respectively, was outstanding under the revolving credit facility, and approximately $64,900,000 and $73,900,000, respectively, was available for future borrowings. The revolving credit facility contains customary covenants and is not subject to any financial covenants, but is subject to a borrowing base calculation that determines the amount we can borrow. We are currently in discussions with the administrative agent of the revolving credit facility to modify the calculation of the borrowing base. There can be no assurance that we will be able to successfully negotiate a modification. If we are unable to amend the borrowing base calculation, we may have to repay a portion of the outstanding principal balance of the revolving credit facility as early as the second or third quarter of 2020. We do not, however, expect any such repayment, if it were to occur, to have a material adverse effect on our operations.

At the beginning of May 2020, to further enhance its liquidity position and maintain financial flexibility, CIM Commercial entered into an unsecured revolving credit facility with a bank pursuant to which CIM Commercial can borrow up to a maximum of $10,000,000. Outstanding advances under the revolving credit facility bear interest at the rate of 1.00%. CIM Commercial also pays a revolving credit facility fee of 1.12% with each advance under the revolving credit facility, which fee is subject to a cap of $112,000 in the aggregate. The revolving credit facility matures in May 2022. The revolving credit facility contains customary covenants and is subject to a maximum leverage ratio and a minimum fixed charge coverage ratio, as well as certain other conditions.

At March 31, 2020 and December 31, 2019, accrued interest and unused commitment fees payable of $671,000 and $650,000, respectively, are included in accounts payable and accrued expenses.

Future principal payments on our debt (face value) at March 31, 2020 are as follows:



Years Ending December 31,	Mortgages Payable		Secured Borrowings Principal (1)		Other (1) (2)		Total
	(in thousands)
2020 (Nine months ending December 31, 2020)	$	—	$	366	$	536	$	902
2021	—		502		1,092		1,594
2022	—		518		160,625		161,143
2023	—		535		1,340		1,875
2024	—		552		838		1,390
Thereafter	97,100		7,665		40,172		144,937
	$	97,100	$	10,138	$	204,603	$	311,841

(1)


(2)	Represents the junior subordinated notes, SBA 7(a) loan-backed notes, and revolving credit facility.

FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

We determine the estimated fair value of financial assets and liabilities utilizing a hierarchy of valuation techniques based on whether the inputs to a fair value measurement are considered to be observable or unobservable in a marketplace. The hierarchy for inputs used in measuring fair value is as follows:

Level 1 Inputs—Quoted prices in active markets for identical assets or liabilities

Level 2 Inputs—Observable inputs other than quoted prices in active markets for identical assets and liabilities

Level 3 Inputs—Unobservable inputs

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.

The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets are as follows:



	March 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
SBA 7(a) loans receivable, subject to loan-backed notes	$	25,579	$	27,781	$	27,595	$	30,076	3
SBA 7(a) loans receivable, subject to credit risk	28,967		30,679		27,802		29,794		3
SBA 7(a) loans receivable, subject to secured borrowings	10,624		10,720		12,682		12,780		3
Liabilities:
Mortgages payable	96,933		104,937		96,926		99,764		3
Junior subordinated notes	25,321		24,354		25,299		24,406		3

Management's estimation of the fair value of our financial instruments is based on a Level 3 valuation in the fair value hierarchy established for disclosure of how a company values its financial instruments. In general, quoted market prices from active markets for the identical financial instrument (Level 1 inputs), if available, should be used to value a financial instrument. If quoted prices are not available for the identical financial instrument, then a determination should be made if Level 2 inputs are available. Level 2 inputs include quoted prices for similar financial instruments in active markets for identical or similar financial instruments in markets that are not active (i.e., markets in which there are few transactions for the financial instruments, the prices are not current, price quotations vary substantially, or in which little information is released publicly). There is limited reliable market information for our financial instruments and we utilize other methodologies based on unobservable inputs for valuation purposes since there are no Level 1 or Level 2 inputs available. Accordingly, Level 3 inputs are used to measure fair value.

In general, estimates of fair value may differ from the carrying amounts of the financial assets and liabilities primarily as a result of the effects of discounting future cash flows. Considerable judgment is required to interpret market data and develop estimates of fair value. Accordingly, the estimates presented are made at a point in time and may not be indicative of the amounts we could realize in a current market exchange.

The carrying amounts of our secured borrowings—government guaranteed loans, SBA 7(a) loan-backed notes and revolving credit facility approximate their fair values, as the interest rates on these securities are variable and approximate current market interest rates.

SBA 7(a) Loans Receivable, Subject to Loan-Backed Notes—These loans receivable represent the unguaranteed portions of loans originated under the SBA 7(a) Program which were transferred to a trust and are held as collateral in connection with a securitization transaction. The proceeds from the transfer have been recorded as SBA 7(a) loan-backed notes payable. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions. At March 31, 2020, our assumptions included discount rates ranging from 3.75% to 5.75% and prepayment rates ranging from 13.41% to 16.80%. At December 31, 2019, our assumptions included discount rates ranging from 5.25% to 7.25% and prepayment rates ranging from 13.41% to 16.80%.

SBA 7(a) Loans Receivable, Subject to Credit Risk—Loans receivable were initially recorded at estimated fair value at the Acquisition Date. Loans receivable originated subsequent to the Acquisition Date are recorded at cost upon origination and adjusted by net loan origination fees and discounts. In order to determine the estimated fair value of our loans receivable, we use a present value technique for the anticipated future cash flows using certain assumptions. At March 31, 2020, our assumptions included discount rates ranging from 3.75% to 6.25% and prepayment rates ranging from 9.85% to 17.50%. At December 31, 2019, our assumptions included discount rates ranging from 5.25% to 7.75% and prepayment rates ranging from 9.85% to 17.50%.

SBA 7(a) Loans Receivable, Subject to Secured Borrowings—These loans receivable represent the government guaranteed portion of loans which were sold with the proceeds received from the sale reflected as secured borrowings—government guaranteed loans. There is no credit risk associated with these loans since the SBA has guaranteed payment of the principal. In order to determine the estimated fair value of these loans receivable, we use a present value technique for the anticipated future cash flows taking into consideration the lack of credit risk. At March 31, 2020, our assumptions included discount rates ranging from 5.25% to 6.00% and prepayment rates ranging from and 11.77% to 16.80%. At December 31, 2019, our assumptions included discount rates ranging from 6.75% to 7.50% and prepayment rates ranging from 11.77% to 16.80%.

Mortgages Payable—The fair values of mortgages payable are estimated based on current interest rates available for debt instruments with similar terms. The fair value of our mortgages payable is sensitive to fluctuations in interest rates. Discounted cash flow analysis is generally used to estimate the fair value of our mortgages payable, using a rate of 2.75% and 3.67% at March 31, 2020 and December 31, 2019, respectively.

Junior Subordinated Notes—The fair value of the junior subordinated notes is estimated based on current interest rates available for debt instruments with similar terms. Discounted cash flow analysis is generally used to estimate the fair value of our junior subordinated notes. The rate used was 5.70% and 6.16% at March 31, 2020 and December 31, 2019, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

REVENUES:

Rental and other property income

$ 14,819

$ 33,581

Hotel income

7,759

9,804

Interest and other income

2,957

3,892

REVENUES

25,535

47,277

EXPENSES:

Rental and other property operating

12,515

20,253

Asset management and other fees to related parties

4,139

5,886

Interest

3,167

4,045

General and administrative

1,734

1,788

Transaction costs

Depreciation and amortization

5,258

9,630

Loss on early extinguishment of debt (Note 7)

25,071

Impairment of real estate (Note 3)

66,200

EXPENSES

26,813

132,917

Gain on sale of real estate (Note 3)

377,581

(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES

(1,278)

291,941

Provision for income taxes

(22)

318

NET (LOSS) INCOME

(1,256)

291,623

Net (income) loss attributable to noncontrolling interests

(4)

174

NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY

(1,260)

291,797

Redeemable preferred stock dividends declared or accumulated (Note 10)

(5,356)

(4,162)

Redeemable preferred stock deemed dividends (Note 10)

(161)

Redeemable preferred stock redemptions (Note 10)

(10)

(4)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$ (6,787)

$ 287,631

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS PER SHARE: (1)

Basic (in usd per share)

^[1]

$ (0.46)

$ 19.70

Diluted (in usd per share)

^[1]

$ (0.46)

$ 18.90

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: (1)

Basic (in shares)

^[1]

14,598

Diluted (in shares)

^[1]

14,599

15,245

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Intangible liabilities
Net	$ (1,028)		$ (1,282)
Future accretion of acquisition related intangible liabilities
Net	(1,028)		(1,282)
Acquired Below-Market Leases
Intangible liabilities
Gross balance	(2,368)		(3,521)
Accumulated amortization	1,340		2,239
Net	$ (1,028)		$ (1,282)
Average useful life (in years)	4 years		4 years
Future accretion of acquisition related intangible liabilities
2020 (Nine months ending December 31, 2020)	$ (447)
2021	(347)
2022	(234)
2023	0
2024	0
Thereafter	0
Net	(1,028)		$ (1,282)
Acquired Above-Market Leases
Intangible assets
Gross balance	37		74
Accumulated amortization	(11)		(42)
Net	$ 26		$ 32
Average useful life (in years)	7 years		5 years
Amortization
Amortization expense	$ 6	$ 21
Future amortization of acquisition related intangible assets
2020 (Nine months ending December 31, 2020)	3
2021	5
2022	5
2023	6
2024	6
Thereafter	1
Net	26		$ 32
Acquired In-Place Leases
Intangible assets
Gross balance	12,135		13,653
Accumulated amortization	(8,305)		(9,382)
Net	$ 3,830		$ 4,271
Average useful life (in years)	9 years		8 years
Amortization
Amortization expense	$ 441	601
Future amortization of acquisition related intangible assets
2020 (Nine months ending December 31, 2020)	908
2021	899
2022	663
2023	375
2024	375
Thereafter	610
Net	3,830		$ 4,271
Trade Name and License
Intangible assets
Gross balance	2,957		2,957
Accumulated amortization	0		0
Net	2,957		2,957
Future amortization of acquisition related intangible assets
Net	2,957		$ 2,957
Rental and Other Property Income \| Acquired Below-Market Leases
Amortization
Amortization expense	$ 254	$ 513

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	1 Months Ended	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Sep. 30, 2018 USD ($)	Mar. 31, 2020 USD ($) officer	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Commitments and contingencies
Outstanding loan commitments to fund loans		$ 12,745
Future obligations under leases to fund tenant improvements and other future construction obligation		5,464
Restricted cash		10,430	$ 11,738	$ 12,146
Right-of use asset		43		106
Lease liability		43,000		$ 106,000
Rent expense		74	$ 76
Minimum lease payments for remainder of fiscal year		$ 43
Employment agreements \| Executive Officers
Commitments and contingencies
Number of officers covered under employment agreement \| officer		2
Multiplier used for the calculation of payments in the event of death of employee		2
Multiplier used for the calculation of payments in the event of disability to employee		1
Restricted Cash for Tenant Improvements
Commitments and contingencies
Restricted cash		$ 2,814
City and County of San Francisco Real Property Transfer Tax Case \| Pending Litigation
Commitments and contingencies
Refund sought for penalties, interest and legal fees paid for real property transfer tax	$ 11,845

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details)				3 Months Ended		12 Months Ended
	Mar. 11, 2019 USD ($) swap	Feb. 28, 2019 USD ($)	Dec. 28, 2018 USD ($) swap	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2017 USD ($) swap	Aug. 13, 2015 USD ($) swap
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Number of swaps terminated \| swap	2		1			7
Notional amount of terminated swaps	$ 120,000,000		$ 50,000,000			$ 215,000,000
Termination payments, net of fees	1,302,000		684,000			973,000
Reclassification from AOCI to interest expense				$ 0	$ 1,806,000
Write-off from swaps being terminated	1,580,000
Change in fair value of swaps				$ 0	209,000
Unsecured Term Loan Facility Entered Into May 2015
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Repayments of debt						$ 215,000,000
Interest Rate Swap
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Number of interest rate swaps \| swap							10
Total notional amount							$ 385,000,000
Derivative, fair value	1,421,000
Loss on swap					119,000
Revolving Credit Facility \| Line of Credit
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Repayments of debt	$ 120,000,000	$ 10,000,000	$ 40,000,000
Interest Expense
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Change in fair value of swaps					$ (209,000)

REDEEMABLE PREFERRED STOCK

3 Months Ended

Mar. 31, 2020

Temporary Equity Disclosure [Abstract]

REDEEMABLE PREFERRED STOCK

As of March 31, 2020, we had issued 4,851,367 shares of Series A Preferred Stock, 4,603,287 Series A Preferred Warrants and 5,980 shares of Series D Preferred Stock and received gross proceeds of $121,431,000 ($120,520,000 of which was allocated to the Series A Preferred Stock, $761,000 of which was allocated to the Series A Preferred Warrants, and $150,000 of which was allocated to the Series D Preferred Stock). In connection with such issuance, costs specifically identifiable to the offering of Series A Preferred Stock, Series A Preferred Warrants and Series D Preferred Stock, such as commissions, dealer manager fees and other offering fees and expenses, totaled $9,567,000 ($9,421,000 of which was allocated to the Series A Preferred Stock, $142,000 of which was allocated to the Series A Preferred Warrants, and $4,000 of which was allocated to the Series D Preferred Stock). In addition, as of March 31, 2020, non-issuance-specific costs related to this offering totaled $6,461,000. As of March 31, 2020, we have reclassified and allocated $877,000, $5,000 and $1,000 from deferred rent receivable and charges to Series A Preferred Stock, Series A Preferred Warrants and Series D Preferred Stock, respectively, as a reduction to the gross proceeds received. Such reclassification was based on the cumulative number of securities issued relative to the maximum number of securities expected to be issued under the offering. As of March 31, 2020, there were 4,827,633 shares of Series A Preferred Stock outstanding, 4,603,287 Series A Preferred Warrants to purchase 1,194,159 shares of Common Stock outstanding, and 5,980 shares of Series D Preferred Stock outstanding. As of March 31, 2020, 23,734 and 0 shares of Series A Preferred Stock and Series D Preferred Stock, respectively, have been redeemed. In March 2020, we received a request to redeem 779 shares of Series A Preferred Stock, which were redeemed in April 2020. As of March 31, 2020, such shares are included in accounts payable and accrued expenses on our consolidated balance sheet.

Series A Preferred Stock—We conducted a continuous public offering of Series A Preferred Units from October 2016 through January 2020, where each Series A Preferred Unit consisted of one share of Series A Preferred Stock, par value $0.001 per share, of the Company (collectively, the "Series A Preferred Stock") with an initial stated value of $25.00 per share (the "Series A Preferred Stock Stated Value"), subject to adjustment, and one warrant (collectively, the "Series A Preferred Warrants") to purchase 0.25 of a share of Common Stock (Note 11). Proceeds and expenses from the sale of the Series A Preferred Units were allocated to the Series A Preferred Stock and Series A Preferred Warrants using their relative fair values on the date of issuance.

Since February 2020, we have been conducting a continuous public offering with respect to shares of our Series A Preferred Stock, which, since such time, is no longer being issued as a unit with an accompanying Series A Preferred Warrant.

With respect to the payment of dividends, the Series A Preferred Stock ranks senior to our Series L Preferred Stock (as defined below) and our Common Stock and on parity with our Series D Preferred Stock (as defined below). With respect to the distribution of amounts upon liquidation, dissolution or winding-up, the Series A Preferred Stock ranks on parity with our Series D Preferred Stock and Series L Preferred Stock, to the extent of the Series L Preferred Stock Stated Value (as defined below), and otherwise ranks senior to our Series L Preferred Stock and our Common Stock.

Our Series A Preferred Stock is redeemable at the option of the holder (the "Series A Preferred Stock Holder") or CIM Commercial. The redemption schedule of the Series A Preferred Stock allows redemptions at the option of the Series A Preferred Stock Holder from the date of original issuance of any given shares of Series A Preferred Stock at the Series A Preferred Stock Stated Value, less a redemption fee applicable prior to the fifth anniversary of the issuance of such shares, plus accrued and unpaid dividends. CIM Commercial has the right to redeem the Series A Preferred Stock after the fifth anniversary of the issuance of such shares at the Series A Preferred Stock Stated Value, plus accrued and unpaid dividends. At the Company's discretion, redemptions will be paid in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock, an equal value of Common Stock based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption.

Net proceeds from the issuance of shares of Series A Preferred Stock are initially recorded in temporary equity at an amount equal to the gross proceeds allocated to such shares of Series A Preferred Stock minus the costs specifically identifiable to the issuance of such shares and the non-issuance specific offering costs allocated to such shares. If the net proceeds from the issuance of shares of Series A Preferred Stock are less than the redemption value of such shares at the time they are issued, or if the redemption value of such shares subsequently becomes greater than the carrying value of such shares, an adjustment is recorded to increase the carrying amount of such shares to their redemption value as of the balance sheet date. Such adjustment is considered a deemed dividend for purposes of calculating basic and diluted EPS. For the three months ended March 31, 2020 and 2019, we recorded redeemable preferred stock deemed dividends of $161,000 and $0, respectively, in our consolidated statements of operations.

On the first anniversary of the issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date. As of March 31, 2020, we have reclassified an aggregate of $71,901,000 in net proceeds from temporary equity to permanent equity.

Holders of Series A Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series A Preferred Stock at an annual rate of 5.5% of the Series A Preferred Stock Stated Value (i.e., the equivalent of $0.34375 per share per quarter) (the "Series A Dividend"). Dividends on each share of Series A Preferred Stock begin accruing on, and are cumulative from, the date of issuance.

We expect to pay the Series A Dividend in arrears on a monthly basis in accordance with the foregoing provisions, unless our results of operations, our general financing conditions, general economic conditions, applicable requirements of the Maryland General Corporation Law (the "MGCL") or other factors make it imprudent to do so. The timing and amount of the Series A Dividend will be determined by our Board of Directors, in its sole discretion, and may vary from time to time.

Cash dividends on our Series A Preferred Stock paid in respect of the three months ended March 31, 2020 and 2019 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends
			(in thousands)
January 28, 2020	April 15, 2020	4,827,633	$	547
January 28, 2020	March 16, 2020	4,684,453	$	530
January 28, 2020	February 18, 2020	4,581,353	$	516

February 20, 2019	April 15, 2019	3,149,924	$	1,010

On March 2, 2020, we declared a quarterly cash dividend of $0.34375 per share of our Series A Preferred Stock, or portion thereof for issuances during the period from April 1, 2020 to June 30, 2020. As a result, $0.114583 per share will be paid on May 15, 2020 to holders of record of Series A Preferred Stock at the close of business on May 5, 2020, $0.114583 per share will be paid on June 15, 2020 to holders of record of Series A Preferred Stock at the close of business on June 5, 2020, and $0.114583 per share will be paid on July 15, 2020 to holders of record of Series A Preferred Stock at the close of business on July 5, 2020.

Series D Preferred Stock—Since February 2020, we have been conducting a continuous public offering with respect to shares of our series D preferred stock (the "Series D Preferred Stock"), par value $25.00 per share (the "Series D Preferred Stock Stated Value"), subject to adjustment.

With respect to the payment of dividends, the Series D Preferred Stock ranks senior to our Series L Preferred Stock (as defined below) and our Common Stock and on parity with our Series A Preferred Stock. With respect to the distribution of amounts upon liquidation, dissolution or winding-up, the Series D Preferred Stock ranks on parity with our Series A Preferred Stock and Series L Preferred Stock, to the extent of the Series L Preferred Stock Stated Value (as defined below), and otherwise ranks senior to our Series L Preferred Stock and our Common Stock.

Our Series D Preferred Stock is redeemable at the option of the holder (the "Series D Preferred Stock Holder") or CIM Commercial. The redemption schedule of the Series D Preferred Stock allows redemptions at the option of the Series D Preferred Stock Holder from the date of original issuance of any given shares of Series D Preferred Stock at the Series D Preferred Stock Stated Value, less a redemption fee applicable prior to the fifth anniversary of the issuance of such shares, plus accrued and unpaid dividends. CIM Commercial has the right to redeem the Series D Preferred Stock after the fifth anniversary of the issuance of such shares at the Series D Preferred Stock Stated Value, plus accrued and unpaid dividends. At the Company's discretion, redemptions will be paid in cash or an equal value of Common Stock based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption.

Shares of Series D Preferred Stock are recorded in permanent equity at the time of their issuance.

Holders of Series D Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series D Preferred Stock at an annual rate of 5.65% of the Series D Preferred Stock Stated Value (i.e., the equivalent of $0.35313 per share per quarter) (the “Series D Dividend”). Dividends on each share of Series D Preferred Stock begin accruing on, and are cumulative from, the date of issuance.

We expect to pay the Series D Dividend in arrears on a monthly basis in accordance with the foregoing provisions, unless our results of operations, our general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. The timing and amount of the Series D Dividend will be determined by our Board of Directors, in its sole discretion, and may vary from time to time.

Cash dividends on our Series D Preferred Stock paid in respect of the three months ended March 31, 2020 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends
			(in thousands)
March 2, 2020	April 15, 2020	5,980	$	1
March 2, 2020	March 16, 2020	5,600	$	—

On March 2, 2020, we declared a quarterly cash dividend of $0.353125 per share of our Series D Preferred Stock, or portion thereof for issuances during the period from April 1, 2020 to June 30, 2020. As a result, $0.117708 per share will be paid on May 15, 2020 to holders of record of Series D Preferred Stock at the close of business on May 5, 2020, $0.117708 per share will be paid on June 15, 2020 to holders of record of Series D Preferred Stock at the close of business on June 5, 2020, and $0.117708 per share will be paid on July 15, 2020 to holders of record of Series D Preferred Stock at the close of business on July 5, 2020.

Series L Preferred Stock—On November 21, 2017, we issued 8,080,740 shares of Series L Preferred Stock having an initial stated value of $28.37 per share ("Series L Preferred Stock Stated Value"), subject to adjustment. In November 2019, pursuant to a tender offer, we repurchased 2,693,580 shares of Series L Preferred Stock at a purchase price of $29.12 per share (of which $1.39, or $3,744,000 in the aggregate, reflects the amount of accrued and unpaid dividends on the Series L Preferred Stock as of November 20, 2019), as converted to and paid in ILS (the "Tender Offer"). The total cost to repurchase the tendered shares, including professional fees to complete the Tender Offer of $462,000 but excluding the dividends accrued in respect of such shares, was $75,155,000, which was primarily funded from borrowings under the revolving credit facility (Note 7). We recognized $5,873,000 of redeemable preferred stock redemptions in our consolidated statement of operations for the year ended December 31, 2019 in connection with the Tender Offer. The shares of Series L Preferred Stock accepted for payment by the Company were restored to the status of authorized but unissued shares of preferred stock without designation as to class or series.

With respect to the payment of dividends, the Series L Preferred Stock ranks senior to our Common Stock (except with respect to and only to the extent of the Initial Dividend) and junior to our Series A Preferred Stock, Series D Preferred Stock and Common Stock (with respect to and only to the extent of the Initial Dividend). With respect to the distribution of amounts upon liquidation, dissolution or winding-up, the Series L Preferred Stock ranks senior to our Common Stock, both (i) to the extent of the Series L Preferred Stock Stated Value and (ii) following payment to holders of our Common Stock of an amount equal to any unpaid Initial Dividend, to the extent of any accrued and unpaid dividends on the Series L Preferred Stock, on parity, to the extent of the Series L Preferred Stock Stated Value, with our Series A Preferred Stock and Series D Preferred Stock, and junior, with respect to any accrued and unpaid dividends on the Series L Preferred Stock, to our Series A Preferred Stock, Series D Preferred Stock and Common Stock (to the extent of the Initial Dividend).

From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value, plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distribution on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in ILS at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) the NAV per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively.

Holders of Series L Preferred Stock are entitled to receive, if, as and when authorized by our Board of Directors, and declared by us out of legally available funds, cumulative cash dividends on each share of Series L Preferred Stock at an annual rate of 5.5% of the Series L Preferred Stock Stated Value (i.e., the equivalent of $1.56035 per share per year). Dividends on each share of Series L Preferred Stock began accruing on, and are cumulative from, the date of issuance.

We expect to pay dividends on the Series L Preferred Stock in arrears on an annual basis in accordance with the foregoing provisions, unless our results of operations, our general financing conditions, general economic conditions, applicable requirements of the MGCL or other factors make it imprudent to do so. If the Company fails to timely declare distributions or fails to timely pay distributions on the Series L Preferred Stock, the annual dividend rate of the Series L Preferred Stock will temporarily increase by 1.0% per year, up to a maximum rate of 8.5% per annum. However, prior to the payment of any distributions on Series L Preferred Stock in respect of a given year, the Company must first declare and pay dividends on the Common Stock in respect of such year in an aggregate amount equal to the Initial Dividend announced by our Board of Directors at the end of the prior fiscal year. On December 20, 2019, our Board of Directors announced an Initial Dividend on shares of our Common Stock for fiscal year 2020 in the aggregate amount of $4,380,644.70, of which $1,095,000 had been paid as of March 31, 2020.

Accumulated cash dividends on our Series L Preferred Stock for the three months ended March 31, 2020 and 2019, are included in the numerator for purposes of calculating basic and diluted net (loss) income attributable to common stockholders per share (Note 9), and consist of the following:



Accumulation Period
Start Date	End Date	Number of Shares	Dividends Accumulated
			(in thousands)
January 1, 2020	March 31, 2020	5,387,160	$	2,101

January 1, 2019	March 31, 2019	8,080,740	$	3,152

Until the fifth anniversary of the date of original issuance of our Series L Preferred Stock, we are prohibited from issuing any shares of preferred stock ranking senior to or on parity with the Series L Preferred Stock with respect to the payment of dividends, other distributions, liquidation, and or dissolution or winding up of the Company unless the minimum fixed charge coverage ratio, calculated in accordance with the Articles Supplementary describing the Series L Preferred Stock, is equal to or greater than 1.25:1.00 (the "Series L Preferred Stock Minimum Fixed Charge Coverage Ratio"). At March 31, 2020 and December 31, 2019, we were in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio. Refer to Note 14 for a discussion of certain payments the Company has made in shares of Common Stock and may make in shares of Preferred Stock in lieu of cash payments in order to remain in compliance with the Series L Preferred Stock Minimum Fixed Charge Coverage Ratio.

DEBT - Narrative (Details)											1 Months Ended		3 Months Ended		12 Months Ended
DEBT - Narrative (Details)	May 01, 2020 USD ($)	May 16, 2019 USD ($) mortgage_loan	Mar. 14, 2019 USD ($) mortgage_loan	Mar. 11, 2019 USD ($) swap	Mar. 01, 2019 USD ($)	Feb. 28, 2019 USD ($)	Dec. 28, 2018 USD ($) swap	Oct. 30, 2018 USD ($)	May 30, 2018 USD ($)	Sep. 21, 2017 USD ($) mortgage_loan	Oct. 31, 2018 USD ($) extension	Jun. 30, 2016 USD ($) agreement	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2017 USD ($) swap	Aug. 13, 2015 USD ($)
Debt
Deferred loan costs													$ 4,535,000		$ 4,535,000
Deferred loan costs, accumulated amortization													1,760,000		1,494,000
Loss on early extinguishment of debt													0	$ 25,071,000
Payment of mortgages payable													0	46,000,000
Prepayment penalties and other payments for early extinguishment of debt													0	5,562,000
Restricted cash													10,430,000	11,738,000	12,146,000
Number of swaps terminated \| swap				2			1									7
Notional amount of terminated swaps				$ 120,000,000			$ 50,000,000									$ 215,000,000
Accrued interest and unused commitment fee payable													671,000		650,000
Mortgages Payable
Debt
Number of mortgage loan agreements \| agreement												6
Amount of loan												$ 392,000,000
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Gross debt													$ 97,100,000		97,100,000
Fixed interest rate													4.14%
Loan Backed Notes
Debt
Proceeds from notes payable									$ 38,200,000
Weight average life									2 years
Restricted cash													$ 1,725,000		$ 3,306,000
Loan Backed Notes \| LIBOR
Debt
Interest rate margin									1.40%
Loan Backed Notes \| Prime Rate
Debt
Interest rate margin									1.08%
Revolving Credit Facility
Debt
Maximum borrowing capacity											$ 250,000,000
Interest rate													2.41%		3.29%
Number of extensions \| extension											1
Extension option, term											1 year
Proceeds from issuance of debt								$ 170,000,000
Revolving Credit Facility \| Minimum
Debt
Unused commitment fee percentage											0.15%
Revolving Credit Facility \| Maximum
Debt
Unused commitment fee percentage											0.25%
Revolving Credit Facility \| LIBOR
Debt
Interest rate margin											1.55%
Revolving Credit Facility \| Base rate
Debt
Interest rate margin											0.55%
7083 Hollywood Boulevard, Los Angeles, California \| Disposal Group, Held-for-sale, Not Discontinued Operations
Debt
Number of mortgage loans assumed by buyer \| mortgage_loan										1
Outstanding amount										$ 21,700,000
Properties Used As Collateral For Loans \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Loss on early extinguishment of debt														19,290,000
Write off of deferred loan costs					$ 637,000
Write off of accumulated amortization					170,000
Transaction costs					237,000
Defeased amount					205,500,000
Cash outlay required for defeasance					224,086,000
Office Property, San Fransisco California \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Debt
Number of mortgage loans assumed by buyer \| mortgage_loan			1
Outstanding amount			$ 28,200,000
Loss on early extinguishment of debt														178,000
Write off of deferred loan costs														243,000
Write off of accumulated amortization														65,000
1333 Broadway, Oakland, CA \| Disposal Group, Disposed of by Sale, Not Discontinued Operations \| Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Loss on early extinguishment of debt															$ 4,911,000
Write off of deferred loan costs		$ 287,000
Write off of accumulated amortization		82,000
Transaction costs		98,000
Defeased amount		39,500,000
Cash outlay required for defeasance		$ 44,108,000
Number of mortgage loans defeased \| mortgage_loan		1
Office Property, Washington, D.C. \| Disposal Group, Disposed of by Sale, Not Discontinued Operations
Debt
Loss on early extinguishment of debt														$ 5,603,000
Write off of deferred loan costs					537,000
Write off of accumulated amortization					259,000
Payment of mortgages payable					46,000,000
Prepayment penalties and other payments for early extinguishment of debt					$ 5,325,000
Interest Rate Swap
Debt
Total notional amount																	$ 385,000,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges
Debt
Total notional amount													$ 120,000,000
Interest Rate Swap \| Designated as Hedging Instrument \| Cash Flow Hedges \| Weighted Average
Debt
All-in rate													3.11%
Revolving Credit Facility \| Line of Credit
Debt
Repayments of debt				$ 120,000,000		$ 10,000,000	$ 40,000,000
Gross debt													$ 159,500,000		153,000,000
Remaining borrowing capacity													$ 64,900,000		$ 73,900,000
Unsecured Revolving Credit Facility Due May 2022 \| Revolving Credit Facility \| Subsequent Event \| Line of Credit
Debt
Maximum borrowing capacity	$ 10,000,000
Fixed interest rate	1.00%
Fee percentage for each advance made	1.12%
Maximum fee amount payable	$ 112,000

COVID-19	3 Months Ended
COVID-19	Mar. 31, 2020
Unusual or Infrequent Items, or Both [Abstract]
COVID-19	COVID-19 Beginning in the latter half of March 2020, the respiratory disease caused by COVID-19 began to spread worldwide, causing significant disruptions to the U.S. and world economies. On March 4, 2020 and March 13, 2020, a state of emergency was declared for the state of California and for the United States, respectively. In response to the issuance of U.S. federal guidelines to contain the spread of COVID-19, U.S. state and local jurisdictions, including those in which the Company operates, have implemented various containment or mitigation measures, including shelter-in-place orders and the temporary closure of non-essential businesses. COVID‑19 has triggered a period of significant global economic slowdown, and the impact of COVID-19 on the U.S. economy will be significant for the remainder of 2020 and potentially beyond. The economic downturn caused by COVID-19 will adversely affect the operations of our office portfolio to the extent of, among other things: (i) the inability of our tenants to pay rents, (ii) the deferral of rent payments by our tenants, (iii) tenants’ requests to modify terms of their leases in a way that will reduce the economic value of their leases, (iv) an increase in early lease terminations or a decrease in lease renewals and (v) our inability to re-lease vacant space in our office portfolio due to “shelter in place” or similar orders or a systemic shift in the demand for office space as a result of COVID-19. The following information provides early insight into the effects of COVID-19 on our rent collections for April 2020. We are providing this information on a one-time basis and undertake no obligation to provide updated rent collection information in the future. This information is preliminary and unaudited. As of May 5, 2020, the Company has collected approximately 90.0% of the $4,237,000 of rental and other property income billed to tenants related to April 2020, excluding rental and other property income billed to its parking tenants. The Company has not received any of the $409,000 rental and other property income payable by its parking tenants in respect of April 2020. Further, as of May 5, 2020, the Company has received several requests from tenants to defer or abate the rent payments in respect of April 2020, and the Company is evaluating each tenant rent relief request on an individual basis, considering a number of factors. Additionally, the spread of COVID-19 in the United States and the resulting increase of restrictions on and cancellations of travel, meetings and social gatherings are expected to adversely impact the operations of our hotel in Sacramento, California. For the fourth quarter of 2019, the net operating income of our hotel constituted approximately 22% of our total segment net operating income. For the month of March 2020, the occupancy, average daily rate ("ADR") and revenue per available room ("RevPAR") at our hotel in Sacramento, California were 38.6%, $172.05 and $66.48, respectively, as compared to occupancy, ADR and RevPAR of 85.6%, $176.12 and $150.84 for the month of March 2019, respectively. For the month of April 2020, the occupancy, ADR and RevPAR at our hotel in Sacramento, California were 12.8%, $129.90 and $16.56, respectively, as compared to occupancy, ADR and RevPAR of 83.3%, $187.76 and $156.38 for the month of April 2019, respectively. Loans originated by us through March 31, 2020 under the SBA 7(a) Guaranteed Loan Program consist primarily of loans to borrowers in the limited service hospitality sector. Currently, our borrowers are experiencing significant cash flow deficits as the travel and leisure industry decline caused by COVID-19 has severely impacted limited service hospitality properties. We sell the portion of loans originated by us under the SBA 7(a) Program that is guaranteed by the SBA; however, during April 2020, the secondary market for the sale of such guaranteed portions declined, both as a result of significantly decreased demand for such loans in general and, specifically, for limited service hospitality loans. As a result of the disruption caused by COVID-19, the Company has temporarily suspended the vast majority of repositioning of the existing office building at 4750 Wilshire Boulevard and the vast majority of renovations at the Sheraton Grand Hotel in Sacramento. The extent to which COVID-19 will impact the Company’s operations and those of its tenants and business partners will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of COVID-19, the actions taken to contain COVID-19 or mitigate its impact, and the direct and indirect economic effects of COVID-19 and the related containment measures. Accordingly, the Company cannot predict the significance, extent or duration of any adverse impact of COVID-19 on its business, financial condition, results of operations, cash flow or its ability to satisfy its debt service obligations or to maintain its level of distributions on the Common Stock or Preferred Stock. However, if the pandemic continues, it will have an adverse effect on the Company’s business, financial condition, results of operations, and liquidity for the remainder of 2020. We also continue to examine the impact that the CARES Act may have on our business and currently, we are unable to determine the impact that the CARES Act will have on our business, financial condition, results of operations, or liquidity.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (1,256)		$ 291,623
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred rent and amortization of intangible assets, liabilities and lease inducements	(816)		(193)
Depreciation and amortization	5,258		9,630
Reclassification from AOCI to interest expense	0		(1,806)
Reclassification from other assets to interest expense for swap termination	0		1,421
Change in fair value of swaps	0		209
Gain on sale of real estate	0		(377,581)
Impairment of real estate	0	$ 2,800	66,200
Loss on early extinguishment of debt	0		25,071
Amortization of deferred loan costs	266		309
Amortization of premiums and discounts on debt	(25)		4
Unrealized premium adjustment	451		442
Amortization and accretion on loans receivable, net	(179)		(98)
Bad debt expense (recovery)	225		(98)
Deferred income taxes	(151)		95
Stock-based compensation	56		38
Loans funded, held for sale to secondary market	(8,883)		(2,553)
Proceeds from sale of guaranteed loans	9,520		11,286
Principal collected on loans subject to secured borrowings	2,014		112
Other operating activity	(297)		(49)
Changes in operating assets and liabilities:
Accounts receivable and interest receivable	(300)		740
Other assets	(695)		643
Accounts payable and accrued expenses	489		(4,041)
Deferred leasing costs	(83)		(262)
Other liabilities	(497)		(5,026)
Due to related parties	886		(1,723)
Net cash provided by operating activities	5,983		14,393
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to investments in real estate	(5,632)		(12,623)
Proceeds from sale of real estate, net	0		652,891
Loans funded	(2,961)		(851)
Principal collected on loans	3,319		2,252
Other investing activity	30		23
Net cash (used in) provided by investing activities	(5,244)		641,692
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of unsecured revolving lines of credit, revolving credit facility and or term note	(5,000)		(130,000)
Proceeds from unsecured revolving lines of credit, revolving credit facility and or term note	11,500		0
Payment of mortgages payable	0		(46,000)
Investments in marketable securities in connection with the legal defeasance of mortgages payable	0		(224,086)
Prepayment penalties and other payments for early extinguishment of debt	0		(5,562)
Payment of principal on SBA 7(a) loan-backed notes	(4,249)		(3,271)
Payment of principal on secured borrowings	(2,014)		(112)
Payment of deferred preferred stock offering costs	(207)		(126)
Payment of other deferred costs	0		(82)
Payment of common dividends	(1,095)		(5,474)
Net proceeds from issuance of Series A Preferred Warrants	29		9
Payment of preferred stock dividends	(10,919)		(14,935)
Redemption of Series A Preferred Stock	(186)		(67)
Net cash used in by financing activities	(3,498)		(422,687)
Change in cash balances included in assets held for sale	0		10
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(2,759)		233,408
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	35,947	310,579	77,171	$ 77,171
End of period	33,188		310,579	35,947
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS:
Cash and cash equivalents					$ 22,758	$ 23,801	$ 298,841
Restricted cash					10,430	12,146	11,738
Total cash and cash equivalents and restricted cash	35,947	$ 310,579	77,171	$ 77,171	33,188	$ 35,947	310,579
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	2,904		5,734
Federal income taxes paid	0		0
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Additions to investments in real estate included in accounts payable and accrued expenses	4,859		2,457
Additions to deferred costs included in accounts payable and accrued expenses	382		145
Additions to preferred stock offering costs included in accounts payable and accrued expenses	538		281
Accrual of dividends payable to preferred stockholders					$ 2,209		$ 1,010
Preferred stock offering costs offset against redeemable preferred stock in temporary equity	176		44
Preferred stock offering costs offset against redeemable preferred stock in permanent equity	2		0
Reclassification of Series A Preferred Stock from temporary equity to permanent equity	6,948		8,890
Reclassification of loans receivable, net to real estate owned	0		243
Reclassification of Series A Preferred Stock from permanent equity to accounts payable and accrued expenses	18		0
Establishment of right-of use asset and lease liability	0		362
Marketable securities transferred in connection with the legal defeasance of mortgages payable	0		224,086
Mortgage notes payable legally defeased	0		205,500
Mortgage note assumed in connection with our sale of real estate	0		28,200
Redeemable preferred stock deemed dividends	161		0
Redeemable preferred stock fees included in accounts payable and accrued expenses	78		0
Series A Preferred Stock
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of Series A Preferred Stock	8,497		7,019
Series D Preferred Stock
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of Series A Preferred Stock	$ 146		$ 0

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2020

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For more information regarding our significant accounting policies and estimates, please refer to "Basis of Presentation and Summary of Significant Accounting Policies" contained in Note 2 to our consolidated financial statements for the year ended December 31, 2019, included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on March 16, 2020.

Interim Financial Information—The accompanying interim consolidated financial statements of CIM Commercial have been prepared by our management in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. The accompanying financial information reflects all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Our accompanying interim consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto, included in our Annual Report on Form 10-K filed with the SEC on March 16, 2020.

Principles of Consolidation—The consolidated financial statements include the accounts of CIM Commercial and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Investments in Real Estate—Real estate acquisitions are recorded at cost as of the acquisition date. Costs related to the acquisition of properties were expensed as incurred for acquisitions that occurred prior to October 1, 2017. For any acquisition occurring on or after October 1, 2017, we have conducted and will conduct an analysis to determine if the acquisition constitutes a business combination or an asset purchase. If the acquisition constitutes a business combination, then the transaction costs will be expensed as incurred, and if the acquisition constitutes an asset purchase, then the transaction costs will be capitalized. Investments in real estate are stated at depreciated cost. Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows:



Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

We capitalize project costs, including pre-construction costs, interest expense, property taxes, insurance, and other costs directly related and essential to the development, redevelopment, or construction of a project, while activities are ongoing to prepare an asset for its intended use. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred.

Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

Investments in real estate are evaluated for impairment on a quarterly basis or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used requires significant judgment and estimates and is measured by a comparison of the carrying amount to the future net cash flows, undiscounted and without interest, expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. The estimated fair value of the asset group identified for step two of the impairment testing under GAAP is based on either the income approach, with market discount rate, terminal capitalization rate and rental rate assumptions being most critical to such analysis, or on the sales comparison approach to similar properties. Assets held for sale are reported at the lower of the asset's carrying amount or fair value, less costs to sell. We recognized impairment of long-lived assets of $0 and $66,200,000 during the three months ended March 31, 2020 and 2019, respectively (Note 3).

Derivative Financial Instruments—As part of risk management and operational strategies, from time to time, we may enter into derivative contracts with various counterparties. All derivatives are recognized on the balance sheet at their estimated fair value. On the date that we enter into a derivative contract, we designate the derivative as a fair value hedge, a cash flow hedge, a foreign currency fair value or cash flow hedge, a hedge of a net investment in a foreign operation, or a trading or non-hedging instrument.

Changes in the estimated fair value of a derivative (effective and ineffective components) that is highly effective and that is designated and qualifies as a cash flow hedge are initially recorded in other comprehensive income ("OCI"), and are subsequently reclassified into earnings as a component of interest expense when the variability of cash flows of the hedged transaction affects earnings (e.g., when periodic settlements of a variable-rate asset or liability are recorded in earnings). When an interest rate swap designated as a cash flow hedge no longer qualifies for hedge accounting, we recognize changes in the estimated fair value of the hedge previously deferred to accumulated other comprehensive income ("AOCI"), along with any changes in estimated fair value occurring thereafter, through earnings. We classify cash flows from interest rate swap agreements as net cash provided by operating activities on the consolidated statements of cash flows as our accounting policy is to present the cash flows from the hedging instruments in the same category in the consolidated statements of cash flows as the category for the cash flows from the hedged items. See Note 12 for disclosures about our derivative financial instruments and hedging activities.

Revenue Recognition—We use a five-step model to recognize revenue for contracts with customers. The five-step model requires that we (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, including variable consideration to the extent that it is probable that a significant future reversal will not occur, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) we satisfy the performance obligation.

Revenue from leasing activities

We operate as a lessor of real estate assets, primarily in Class A and creative office assets. In determining whether our contracts with our tenants constitute leases, we determined that our contracts explicitly identify the premises and that any substitution rights to relocate the tenant to other premises within the same building stated in the contract are not substantive. Additionally, so long as payments are made timely under these contracts, our tenants have the right to obtain substantially all the economic benefits from the use of this identified asset and can direct how and for what purpose the premises are used to conduct their operations. Therefore, our contracts with our tenants constitute leases.

All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the terms of the leases when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. The excess of rents recognized over amounts contractually due pursuant to the underlying leases is recorded as deferred rent. If the lease provides for tenant improvements, we determine whether the tenant improvements, for accounting purposes, are owned by the tenant or us. When we are the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is considered the owner of the improvements, any tenant improvement allowance that is funded is treated as an incentive. Lease incentives paid to tenants are included in other assets and amortized as a reduction to rental revenue on a straight-line basis over the term of the related lease.

Reimbursements from tenants, consisting of amounts due from tenants for common area maintenance, real estate taxes, insurance, and other recoverable costs, are recognized as revenue in the period the expenses are incurred. Tenant reimbursements are recognized and presented on a gross basis when we are primarily responsible for fulfilling the promise to provide the specified good or service and control that specified good or service before it is transferred to the tenant. We have elected not to separate lease and non-lease components as the pattern of revenue recognition does not differ for the two components, and the non-lease component is not the primary component in our leases.

In addition to minimum rents, certain leases provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums. Percentage rent is recognized once lessees’ specified sales targets have been met.

We derive parking revenues from leases with third-party operators. Our parking leases provide for additional rents based upon varying percentages of tenants’ sales in excess of annual minimums. Parking percentage rent is recognized once lessees’ specific sales targets have been met.

For the three months ended March 31, 2020 and 2019, we recognized rental income as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	13,345	$	30,896
Variable lease payments (2)	1,474		2,685
Rental and other property income	$	14,819	$	33,581


(1)	Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives.


(2)	Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases.

Revenue from lending activities

Interest income included in interest and other income is comprised of interest earned on loans and our short-term investments and the accretion of net loan origination fees and discounts. Interest income on loans is accrued as earned with the accrual of interest suspended when the related loan becomes a Non-Accrual Loan (as defined below).

Revenue from hotel activities

Hotel revenue is recognized upon establishment of a contract with a customer. At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or implied by customary business practices. Various performance obligations of hotel revenues can be categorized as follows:


•	cancellable and noncancelable room revenues from reservations and


•	ancillary services including facility usage and food or beverage.

Cancellable reservations represent a single performance obligation of providing lodging services at the hotel. The Company satisfies its performance obligation and recognizes revenues associated with these reservations over time as services are rendered to the customer. The Company satisfies its performance obligation and recognizes revenues associated with noncancelable reservations at the earlier of (i) the date on which the customer cancels the reservation or (ii) over time as services are rendered to the customer.

Ancillary services include facilities usage and providing food and beverage. The Company satisfies its performance obligation and recognizes revenues associated with these services at a point in time as the good or service is delivered to the customer.

At inception of these contracts with customers for hotel revenues, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate.

We recognized hotel income of $7,759,000 and $9,804,000 for the three months ended March 31, 2020 and 2019, respectively. Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Hotel properties
Hotel income	$	7,759	$	9,804
Rental and other property income	462		736
Interest and other income	32		49
Hotel revenues	$	8,253	$	10,589

Tenant recoveries outside of the lease agreements

Tenant recoveries outside of the lease agreements are related to construction projects in which our tenants have agreed to fully reimburse us for all costs related to construction. These services include architectural, permit expediter and construction services. At inception of the contract with the customer, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate. While these individual services are distinct, in the context of the arrangement with the customer, all of these services are bundled together and represent a single package of construction services requested by the customer. The Company satisfies its performance obligation and recognizes revenues associated with these services over time as the construction is completed. Amounts recognized for tenant recoveries outside of the lease agreements were $0 and $205,000 for the three months ended March 31, 2020 and 2019, respectively, which are included in interest and other income on the consolidated statements of operations. As of March 31, 2020, there were no remaining performance obligations associated with tenant recoveries outside of the lease agreements.

Loans Receivable—Our loans receivable are carried at their unamortized principal balance less unamortized acquisition discounts and premiums, retained loan discounts and loan loss reserves. For loans originated under the Small Business Administration's ("SBA") 7(a) Guaranteed Loan Program ("SBA 7(a) Program"), we sell the portion of the loan that is guaranteed by the SBA. Upon sale of the SBA guaranteed portion of the loans, which are accounted for as sales, the unguaranteed portion of the loan retained by us is valued on a fair value basis and a discount (the "Retained Loan Discount") is recorded as a reduction in basis of the retained portion of the loan. Unamortized retained loan discounts were $7,577,000 and $7,622,000 as of March 31, 2020 and December 31, 2019, respectively.

At the Acquisition Date, the carrying value of our loans was adjusted to estimated fair market value and acquisition discounts of $33,907,000 were recorded, which are being accreted to interest and other income using the effective interest method. We sold substantially all of our commercial mortgage loans with unamortized acquisition discounts of $15,951,000 to an unrelated third-party in December 2015. Acquisition discounts of $586,000 and $624,000 remained as of March 31, 2020 and December 31, 2019, respectively.

A loan receivable is generally classified as non-accrual (a "Non-Accrual Loan") if (i) it is past due as to payment of principal or interest for a period of 60 days or more, (ii) any portion of the loan is classified as doubtful or is charged-off or (iii) the repayment in full of the principal and or interest is in doubt. Generally, loans are charged-off when management determines that we will be unable to collect any remaining amounts due under the loan agreement, either through liquidation of collateral or other means. Interest income, included in interest and other income, on a Non-Accrual Loan is recognized on either the cash basis or the cost recovery basis.

On a quarterly basis, and more frequently if indicators exist, we evaluate the collectability of our loans receivable. Our evaluation of collectability involves significant judgment, estimates, and a review of the ability of the borrower to make principal and interest payments, the underlying collateral and the borrowers' business models and future operations in accordance with Accounting Standards Codification ("ASC") 450-20, Contingencies—Loss Contingencies, and ASC 310-10, Receivables. For the three months ended March 31, 2020 and 2019, we recorded a recovery of $52,000 and $57,000, respectively, on our loans receivable. There were no material loans receivable subject to credit risk which were considered to be impaired at March 31, 2020 or 2019. We also establish a general loan loss reserve when available information indicates that it is probable a loss has occurred based on the carrying value of the portfolio and the amount of the loss can be reasonably estimated. Significant judgment is required in determining the general loan loss reserve, including estimates of the likelihood of default and the estimated fair value of the collateral. The general loan loss reserve includes those loans, which may have negative characteristics which have not yet become known to us. In addition to the reserves established on loans not considered impaired that have been evaluated under a specific evaluation, we establish the general loan loss reserve using a consistent methodology to determine a loss percentage to be applied to loan balances. These loss percentages are based on many factors, primarily cumulative and recent loss history and general economic conditions.

Deferred Rent Receivable and Charges—Deferred rent receivable and charges consist of deferred rent, deferred leasing costs, deferred offering costs (Note 10) and other deferred costs. Deferred rent receivable is $20,648,000 and $19,988,000 at March 31, 2020 and December 31, 2019, respectively. Deferred leasing costs, which represent lease commissions and other direct costs associated with the acquisition of tenants, are capitalized and amortized on a straight-line basis over the terms of the related leases. Deferred leasing costs of $16,763,000 and $16,881,000 are presented net of accumulated amortization of $7,797,000 and $7,438,000 at March 31, 2020 and December 31, 2019, respectively. Deferred offering costs represent direct costs incurred in connection with our offerings of Series A Preferred Units (as defined in Note 10) and, after January 2020, Series A Preferred Stock (as defined in Note 10) and Series D Preferred Stock (as defined in Note 10), excluding costs specifically identifiable to a closing, such as commissions, dealer-manager fees, and other offering fees and expenses. Generally, for a specific issuance of securities, issuance-specific offering costs are recorded as a reduction of proceeds raised on the issuance date and offering costs incurred but not directly related to a specifically identifiable closing of a security are deferred. Deferred offering costs are first allocated to each issuance of a security on a pro-rata basis equal to the ratio of the number of securities issued in a given issuance to the maximum number of securities that are expected to be issued in the related offering. In the case of the Series A Preferred Units, which were issued prior to February 2020, the issuance-specific offering costs and the deferred offering costs allocated to such issuance were further allocated to the Series A Preferred Stock and Series A Preferred Warrants (as defined in Note 10) issued in such issuance based on the relative fair value of the instruments on the date of issuance. The deferred offering costs allocated to the Series A Preferred Stock, Series A Preferred Warrants and Series D Preferred Stock are reductions to temporary equity, permanent equity and permanent equity, respectively. Deferred offering costs of $5,578,000 and $5,275,000 related to our offering of Series A Preferred Stock, Series A Preferred Warrants and Series D Preferred Stock are included in deferred rent receivable and charges at March 31, 2020 and December 31, 2019, respectively. Other deferred costs are $498,000 and $151,000 at March 31, 2020 and December 31, 2019, respectively.

Redeemable Preferred Stock—Beginning on the date of original issuance of any given shares of Series A Preferred Stock or Series D Preferred Stock, the holder of such shares has the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value (as defined in Note 10) or Series D Preferred Stock Stated Value (as defined in Note 10), as applicable, plus accrued and unpaid dividends, subject to the payment of a redemption fee until the fifth anniversary of such issuance. From and after the fifth anniversary of the date of the original issuance, the holder will have the right to require the Company to redeem such shares at a redemption price of 100% of the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, as applicable, plus accrued and unpaid dividends, without a redemption fee, and the Company will have the right (but not the obligation) to redeem such shares at 100% of the Series A Preferred Stock Stated Value or Series D Preferred Stock Stated Value, as applicable, plus accrued and unpaid dividends. The applicable redemption price payable upon redemption of any Series A Preferred Stock is payable in cash or, on or after the first anniversary of the issuance of such shares of Series A Preferred Stock to be redeemed, in the Company's sole discretion, in cash or in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. The applicable redemption price payable upon redemption of any Series D Preferred Stock is payable in cash or, in the Company's sole discretion, in equal value through the issuance of shares of Common Stock, based on the volume weighted average price of our Common Stock for the 20 trading days prior to the redemption. Since a holder of Series A Preferred Stock has the right to request redemption of such shares and redemptions prior to the first anniversary are to be paid in cash, we have recorded the activity related to our Series A Preferred Stock in temporary equity. We recorded the activity related to our Series A Preferred Warrants (Note 10) in permanent equity. We have recorded the activity related to our Series D Preferred Stock (Note 10) in permanent equity. On the first anniversary of the date of original issuance of a particular share of Series A Preferred Stock, we reclassify such share of Series A Preferred Stock from temporary equity to permanent equity because the feature giving rise to temporary equity classification, the requirement to satisfy redemption requests in cash, lapses on the first anniversary date.

From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value (as defined in Note 10), plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distributions on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in Israeli New Shekels ("ILS") at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) our net asset value ("NAV") per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. We recorded the activity related to our Series L Preferred Stock in permanent equity.

Noncontrolling Interests—Noncontrolling interests represent the interests in various properties owned by third-parties.

Restricted Cash—Our mortgage loan and hotel management agreements provide for depositing cash into restricted accounts reserved for capital expenditures, free rent, tenant improvement and leasing commission obligations. Restricted cash also includes cash required to be segregated in connection with certain of our loans receivable.

Reclassifications—Certain prior period amounts have been reclassified to conform with the current period presentation. To comply with the current year presentation, we reclassified $588,000 and $272,000, related to certain funds at our hotel property, from cash to other assets as of March 31, 2019 and December 31, 2018, respectively, which resulted in a $316,000 decrease in cash provided by operating activities for the three months ended March 31, 2019.

Assets Held for Sale and Discontinued Operations—In the ordinary course of business, we may periodically enter into agreements to dispose of our assets. Some of these agreements are non-binding because either they do not obligate either party to pursue any transactions until the execution of a definitive agreement or they provide the potential buyer with the ability to terminate without penalty or forfeiture of any material deposit, subject to certain specified contingencies, such as completion of due diligence at the discretion of such buyer. We do not classify assets that are subject to such non-binding agreements as held for sale.

We classify assets as held for sale, if material, when they meet the necessary criteria, which include: a) management commits to and actively embarks upon a plan to sell the assets, b) the assets to be sold are available for immediate sale in their present condition, c) the sale is expected to be completed within one year under terms usual and customary for such sales and d) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. We generally believe that we meet these criteria when the plan for sale has been approved by our management, having the authority to approve the sale, there are no known significant contingencies related to the sale and management believes it is probable that the sale will be completed within one year.

Assets held for sale are recorded at the lower of cost or estimated fair value less cost to sell. In addition, if we were to determine that the asset disposal associated with assets held for sale or disposed of represents a strategic shift, the revenues, expenses and net gain (loss) on dispositions would be recorded in discontinued operations for all periods presented through the date of the applicable disposition.

Consolidation Considerations for Our Investments in Real Estate—ASC 810-10, Consolidation, addresses how a business enterprise should evaluate whether it has a controlling interest in an entity through means other than voting rights that would require the entity to be consolidated. We analyze our investments in real estate in accordance with this accounting standard to determine whether they are variable interest entities, and if so, whether we are the primary beneficiary. Our judgment with respect to our level of influence or control over an entity and whether we are the primary beneficiary of a variable interest entity involves consideration of various factors, including the form of our ownership interest, our voting interest, the size of our investment (including loans), and our ability to participate in major policy-making decisions. Our ability to correctly assess our influence or control over an entity affects the presentation of these investments in real estate on our consolidated financial statements.

Use of Estimates—The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. We base such estimates on historical experience, information available at the time, and assumptions we believe to be reasonable under the circumstances and at such time, including the impact of extraordinary events such as the novel coronavirus ("COVID-19"). Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements—In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity. The amendments in the ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. In November 2018, the FASB issued ASU No. 2018-19, Financial Instruments-Credit Losses (Topic 326): Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarified that receivables arising from operating leases are not within the scope of the credit losses standards. In April 2019, the FASB issued ASU 2019-04, Financial Instruments-Credit Losses (Topic 326): Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarified the following: (i) an entity’s estimate of expected credit losses should include expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (ii) an entity should consider contractual extension or renewal options that it cannot unconditionally cancel when determining the contractual term over which expected credit losses are measured. In May 2019, the FASB issued ASU No. 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which allows entities to irrevocably elect the fair value option for existing financial assets on an instrument-by-instrument basis upon adoption of ASU 2016-13. Except for existing held-to-maturity debt securities, the alternative is available for all instruments in the scope of ASC 326-20 that are eligible for the fair value option in ASC 825-10. If an entity elects the fair value option, it will recognize a cumulative-effect adjustment for the difference between the fair value of the instrument and its carrying value. In November 2019, the FASB issued ASU No. 2019-10, Financial Instruments-Credit Losses (Topic 326), which deferred the effective date of Topic 326 for certain entities, including smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities. For public entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2019. For smaller reporting companies, public entities that are not SEC filers, and entities that are not public business entities, the ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2022. Early adoption is permitted for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2018. In November 2019, the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which made narrow-scope improvements to the credit losses standard, including, but not limited to, adjustments for transition relief for troubled debt restructurings and disclosures related to accrued interest receivables. In February 2020, the FASB issued ASU No. 2020-02, Financial Instruments - Credit Losses (Topic 326): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119, which aligns the SEC guidance with Topic 326 as it relates to (i) measuring current expected credit losses, (ii) development, governance, and documentation of a systematic methodology to measure credit losses, (iii) documenting the results of a systematic methodology to measure credit losses, and (iv) validating a systematic methodology to measure credit losses. The Company has not yet adopted ASU 2016-13 and remains in the process of evaluating the impact of adoption of this new accounting guidance on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds and modifies certain disclosure requirements for fair value measurements. Entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but public entities will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2019. We adopted ASU No. 2018-13 beginning January 1, 2020 and the adoption of such ASU did not have a material impact on our consolidated financial statements.

In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (the “SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The guidance permits the use of the OIS rate based on the SOFR as a U.S. benchmark rate for purposes of applying hedge accounting. The SOFR is a volume-weighted median interest rate that is calculated daily based on overnight transactions from the prior day’s activity in specified segments of the U.S. Treasury repo market. It has been selected as the preferred replacement for the U.S. dollar London Interbank Offered Rate ("LIBOR"), which will be phased out by the end of 2021. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2019. We adopted ASU No. 2018-16 beginning on January 1, 2020 and the adoption of such ASU did not have a material impact on our consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. For public entities, the ASU is effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2020. Early adoption is permitted in any interim period after the issuance of the ASU. We adopted ASU No. 2019-12 beginning on January 1, 2020 and the adoption of such ASU did not have a material impact on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients for various agreements and contracts that utilize the London Interbank Offered Rate (“LIBOR”) as the benchmark reference rate. To be eligible for the optional expedients under this guidance, modifications of contractual terms that change, or have the potential to change, the amount or timing of contractual cash flows must be related to replacement of a reference rate. As it relates to the Company, the relevant optional expedient for contract modifications provides that entities can account for these modifications as a continuation of the existing contract without additional analysis. The ASU is effective for all business entities for interim and annual periods beginning on March 12, 2020 and provides for temporary relief through December 31, 2022. We are currently in the process of evaluating the impact of the adoption of this new accounting guidance on our consolidated financial statements, but have not yet adopted the optional relief.

On April 10, 2020, the FASB issued a question-and-answer (“Q&A”) document to address stakeholder questions on the application of the lease accounting guidance for lease concessions related to the effects of COVID-19. The provisions of the Q&A provide that entities will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842, Leases, (or Topic 840, Leases) to those contracts. As a result, the Company has elected not to apply the lease modification guidance.

DEBT - Schedule (Details) - USD ($)	3 Months Ended
DEBT - Schedule (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Debt
Total Debt	$ 307,899,000	$ 307,421,000
Mortgages Payable
Debt
Deferred loan costs	(167,000)	(174,000)
Total Debt	96,933,000	96,926,000
Mortgage loan with a fixed interest of 4.14% per annum, due on July 1, 2026
Debt
Gross debt	$ 97,100,000	97,100,000
Fixed interest rate	4.14%
Amount of balance due on maturity	$ 97,100,000
Secured Borrowings - Government Guaranteed Loans
Debt
Gross debt	10,138,000	12,152,000
Premiums and discounts	582,000	629,000
Total Debt	10,720,000	12,781,000
Secured borrowing principal on SBA 7(a) loans sold for a premium and excess spread
Debt
Gross debt	$ 7,312,000	$ 7,845,000
Weighted average rate	5.42%	5.68%
Secured borrowing principal on SBA 7(a) loans sold for excess spread
Debt
Gross debt	$ 2,826,000	$ 4,307,000
Weighted average rate	3.07%	3.32%
Other Debt
Debt
Gross debt	$ 204,603,000	$ 202,352,000
Total Debt	200,246,000	197,714,000
Loan-Backed Notes
Debt
Gross debt	$ 18,033,000	22,282,000
Loan-Backed Notes \| LIBOR
Debt
Interest rate margin	1.40%
Loan-Backed Notes \| Prime Rate
Debt
Interest rate margin	1.08%
Junior subordinated notes
Debt
Gross debt	$ 27,070,000	27,070,000
Premiums and discounts	$ (1,749,000)	(1,771,000)
Junior subordinated notes \| LIBOR
Debt
Interest rate margin	3.25%
Unsecured term loan and credit facilities
Debt
Deferred loan costs	$ (2,608,000)	(2,867,000)
Revolving Credit Facility \| Line of Credit
Debt
Gross debt	$ 159,500,000	$ 153,000,000

ORGANIZATION AND OPERATIONS (Details)	Sep. 03, 2019 $ / shares	Mar. 31, 2020 $ / shares shares	Mar. 16, 2020 USD ($)	Dec. 31, 2019 $ / shares shares
Class of Stock [Line Items]
Common stock, par value (in usd per share) \| $ / shares	$ 0.003	$ 0.001		$ 0.001
Common stock, shares authorized (in shares) \| shares		900,000,000		900,000,000
Preferred stock, shares authorized (in shares) \| shares		100,000,000
Reverse stock split ratio, common stock	0.3333
Series L Preferred Stock
Class of Stock [Line Items]
Preferred stock, par value (in usd per share) \| $ / shares		$ 0.001		$ 0.001
At The Market Offering
Class of Stock [Line Items]
Sale of stock, maximum aggregate offering price \| $			$ 25,000,000

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2020

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Information

Principles of Consolidation

Investments in Real Estate



Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Ordinary repairs and maintenance are expensed as incurred.

Derivative Financial Instruments

Revenue Recognition

Revenue from lending activities

Revenue from hotel activities


•	cancellable and noncancelable room revenues from reservations and


•	ancillary services including facility usage and food or beverage.

At inception of these contracts with customers for hotel revenues, the contractual price is equivalent to the transaction price as there are no elements of variable consideration to estimate.

Revenue from leasing activities

Tenant recoveries outside of the lease agreements

Loans Receivable

Deferred Rent Receivable and Charges

Redeemable Preferred Stock

From and after the fifth anniversary of the date of original issuance of the Series L Preferred Stock, each holder will have the right to require the Company to redeem, and the Company will also have the option to redeem (subject to certain conditions), such shares of Series L Preferred Stock at a redemption price equal to the Series L Preferred Stock Stated Value (as defined in Note 10), plus, provided certain conditions are met, all accrued and unpaid distributions. Notwithstanding the foregoing, a holder of shares of our Series L Preferred Stock may require us to redeem such shares at any time prior to the fifth anniversary of the date of original issuance of the Series L Preferred Stock if (1) we do not declare and pay in full the distributions on the Series L Preferred Stock for any annual period prior to such fifth anniversary or (2) we do not declare and pay all accrued and unpaid distributions on the Series L Preferred Stock for all past dividend periods prior to the applicable holder redemption date. The applicable redemption price payable upon redemption of any Series L Preferred Stock will be made, in the Company's sole discretion, in the form of (A) cash in Israeli New Shekels ("ILS") at the then-current currency exchange rate determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, (B) in equal value through the issuance of shares of Common Stock, with the value of such Common Stock to be deemed the lower of (i) our net asset value ("NAV") per share of our Common Stock as most recently published by the Company as of the effective date of redemption and (ii) the volume-weighted average price of our Common Stock, determined in accordance with the Articles Supplementary defining the terms of the Series L Preferred Stock, or (C) in a combination of cash in ILS and our Common Stock, based on the conversion mechanisms set forth in (A) and (B), respectively. We recorded the activity related to our Series L Preferred Stock in permanent equity.

Noncontrolling Interests

Noncontrolling Interests—Noncontrolling interests represent the interests in various properties owned by third-parties.

Restricted Cash

Reclassifications

Assets Held for Sale and Discontinued Operations

Consolidation Considerations for Our Investments in Real Estate

Use of Estimates

Recently Issued Accounting Pronouncements

LOANS RECEIVABLE (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
LOANS RECEIVABLE (Details) - USD ($)	May 08, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Loans receivable
Loans receivable		$ 64,562,000		$ 67,532,000
Deferred capitalized costs		1,139,000		1,145,000
Loan loss reserves		(531,000)		(598,000)
Loans receivable, net		$ 65,170,000		$ 68,079,000
Loans, percent current		97.20%		99.60%
Loans originated under the Paycheck Protection Program		$ 2,961,000	$ 851,000
SBA 7(a) loans receivable, subject to loan-backed notes
Loans receivable
Loans receivable		25,581,000		$ 27,598,000
SBA 7(a) loans receivable, subject to credit risk
Loans receivable
Loans receivable		28,395,000		27,290,000
SBA 7(a) loans receivable, subject to secured borrowings
Loans receivable
Loans receivable		10,586,000		12,644,000
Substandard
Loans receivable
Loans receivable, net		$ 1,339,000		$ 1,362,000
Hospitality Industry \| Loans subject to credit risk
Loans receivable
Concentration risk, percent		98.80%		98.70%
Subsequent Event \| Paycheck Protection Program
Loans receivable
Loans originated under the Paycheck Protection Program	$ 13,500,000

SEGMENT DISCLOSURE

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

SEGMENT DISCLOSURE

In accordance with ASC Topic 280, Segment Reporting, our reportable segments during the three months ended March 31, 2020 and 2019 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for our lending business. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in the notes to our audited consolidated financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K filed with the SEC on March 16, 2020.

For our real estate segments, we define net operating income as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision for income taxes. For our lending segment, we define net operating income as interest income net of interest expense and general overhead expenses.

The net operating income of our segments for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Office:
Revenues	$	14,897	$	33,445
Property expenses:
Operating	6,046		13,559
General and administrative	98		154
Total property expenses	6,144		13,713
Segment net operating income—office	8,753		19,732
Hotel:
Revenues	8,253		10,589
Property expenses:
Operating	6,469		6,694
General and administrative	13		14
Total property expenses	6,482		6,708
Segment net operating income—hotel	1,771		3,881
Lending:
Revenues	2,384		2,924
Lending expenses:
Interest expense	291		582
Fees to related party	682		637
General and administrative	400		503
Total lending expenses	1,373		1,722
Segment net operating income—lending	1,011		1,202
Total segment net operating income	$	11,535	$	24,815

A reconciliation of our segment net operating income to net income attributable to the Company for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended March 31,
	2020			2019
	(in thousands)
Total segment net operating income	$	11,535		$	24,815
Interest and other income	1			319
Asset management and other fees to related parties	(3,457		)	(5,249		)
Interest expense	(2,876		)	(3,463		)
General and administrative	(1,223		)	(1,117		)
Transaction costs	—			(44		)
Depreciation and amortization	(5,258		)	(9,630		)
Loss on early extinguishment of debt	—			(25,071		)
Impairment of real estate	—			(66,200		)
Gain on sale of real estate	—			377,581
(Loss) income before provision for income taxes	(1,278		)	291,941
Provision for income taxes	22			(318		)
Net (loss) income	(1,256		)	291,623
Net (income) loss attributable to noncontrolling interests	(4		)	174
Net (loss) income attributable to the Company	$	(1,260	)	$	291,797



	March 31, 2020		December 31, 2019
	(in thousands)
Condensed assets:
Office	$	468,599	$	460,951
Hotel	104,507		104,029
Lending	79,197		82,140
Non-segment assets	11,239		20,472
Total assets	$	663,542	$	667,592



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Capital expenditures (1):
Office	$	4,534	$	2,597
Hotel	294		608
Total capital expenditures	4,828		3,205
Loan originations	11,844		3,404
Total capital expenditures and loan originations	$	16,672	$	6,609


(1)	Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
NET (LOSS) INCOME	$ (1,256)	$ 291,623
Other comprehensive loss: cash flow hedges	0	(1,806)
COMPREHENSIVE (LOSS) INCOME	(1,256)	289,817
Comprehensive (income) loss attributable to noncontrolling interests	(4)	174
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY	$ (1,260)	$ 289,991

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Values of Financial Instrument Not Recorded at Fair Value on a Recurring Basis

The estimated fair values of those financial instruments which are not recorded at fair value on a recurring basis on our consolidated balance sheets are as follows:



	March 31, 2020				December 31, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value		Level
	(in thousands)
Assets:
SBA 7(a) loans receivable, subject to loan-backed notes	$	25,579	$	27,781	$	27,595	$	30,076	3
SBA 7(a) loans receivable, subject to credit risk	28,967		30,679		27,802		29,794		3
SBA 7(a) loans receivable, subject to secured borrowings	10,624		10,720		12,682		12,780		3
Liabilities:
Mortgages payable	96,933		104,937		96,926		99,764		3
Junior subordinated notes	25,321		24,354		25,299		24,406		3

INVESTMENTS IN REAL ESTATE (Tables)

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

Investments in Real Estate

Investments in real estate consist of the following:



	March 31, 2020			December 31, 2019
	(in thousands)
Land	$	134,421		$	134,421
Land improvements	2,713			2,713
Buildings and improvements	438,842			438,349
Furniture, fixtures, and equipment	4,752			4,628
Tenant improvements	36,303			35,667
Work in progress	16,423			13,484
Investments in real estate	633,454			629,262
Accumulated depreciation	(124,176		)	(120,555		)
Net investments in real estate	$	509,278		$	508,707

FUTURE MINIMUM LEASE RENTALS (Tables)

3 Months Ended

Mar. 31, 2020

Leases, Operating [Abstract]

Future Minimum Rental Revenue Under Long-Term Operating Leases

Future minimum rental revenue under long-term operating leases at March 31, 2020, excluding tenant reimbursements of certain costs, are as follows:



Years Ending December 31,	Total
	(in thousands)
2020 (Nine months ending December 31, 2020)	$	35,550
2021	42,404
2022	39,079
2023	35,512
2024	34,144
Thereafter	50,923
	$	237,612

SEGMENT DISCLOSURE - Reconciliation of Segment Operating Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019
Segment disclosure
Interest and other income	$ 2,957		$ 3,892
Asset management and other fees to related parties	(4,139)		(5,886)
Interest expense	(3,167)		(4,045)
General and administrative	(1,734)		(1,788)
Transaction costs	0		(44)
Depreciation and amortization	(5,258)		(9,630)
Loss on early extinguishment of debt	0		(25,071)
Impairment of real estate	0	$ (2,800)	(66,200)
Gain on sale of real estate	0		377,581
(Loss) income before provision for income taxes	(1,278)		291,941
Provision for income taxes	22		(318)
NET (LOSS) INCOME	(1,256)		291,623
Net (income) loss attributable to noncontrolling interests	(4)		174
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY	(1,260)		291,797
Reportable segments
Segment disclosure
(Loss) income before provision for income taxes	11,535		24,815
Corporate and Reconciling Items
Segment disclosure
Interest and other income	1		319
Asset management and other fees to related parties	(3,457)		(5,249)
Interest expense	(2,876)		(3,463)
General and administrative	$ (1,223)		$ (1,117)

EARNINGS PER SHARE (''EPS'') (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Numerator:

Net (loss) income attributable to common stockholders

$ (6,787)

$ 287,631

Redeemable preferred stock dividends declared on dilutive shares

(1)

492

Diluted net (loss) income attributable to common stockholders

$ (6,788)

$ 288,123

Denominator:

Basic weighted average shares outstanding (in shares)

^[1]

14,598

Diluted weighted average shares and common stock equivalents outstanding (in shares)

^[1]

14,599

15,245

Net (loss) income attributable to common stockholders per share:

Basic (in usd per share)

^[1]

$ (0.46)

$ 19.70

Diluted (in usd per share)

^[1]

$ (0.46)

$ 18.90

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

EARNINGS PER SHARE ("EPS") (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Reconciliation of the Numerator and Denominator Used in Computing Basic and Diluted Per-share Computations



	Three Months Ended March 31,
	2020			2019
	(in thousands, except per share amounts)
Numerator:
Net (loss) income attributable to common stockholders	$	(6,787	)	$	287,631
Redeemable preferred stock dividends declared on dilutive shares	(1		)	492
Diluted net (loss) income attributable to common stockholders	$	(6,788	)	$	288,123
Denominator:
Basic weighted average shares of Common Stock outstanding	14,598			14,598
Effect of dilutive securities—contingently issuable shares	1			647
Diluted weighted average shares and common stock equivalents outstanding	14,599			15,245
Net (loss) income attributable to common stockholders per share:
Basic	$	(0.46	)	$	19.70
Diluted	$	(0.46	)	$	18.90

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Redeemable Preferred Stock (Details)	3 Months Ended
	Mar. 31, 2020
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Preferred stock, percentage of stated value	100.00%
Preferred stock redemption, trading days prior to redemption	20 days

DEBT - Schedule of Future Principal Payments (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Future Principal Payments on Debt
2020 (Nine months ending December 31, 2020)	$ 902
2021	1,594
2022	161,143
2023	1,875
2024	1,390
Thereafter	144,937
Total Debt	311,841
Mortgages Payable
Future Principal Payments on Debt
2020 (Nine months ending December 31, 2020)	0
2021	0
2022	0
2023	0
2024	0
Thereafter	97,100
Total Debt	97,100
Secured Borrowings Principal
Future Principal Payments on Debt
2020 (Nine months ending December 31, 2020)	366
2021	502
2022	518
2023	535
2024	552
Thereafter	7,665
Total Debt	10,138
Other Debt
Future Principal Payments on Debt
2020 (Nine months ending December 31, 2020)	536
2021	1,092
2022	160,625
2023	1,340
2024	838
Thereafter	40,172
Total Debt	$ 204,603

ORGANIZATION AND OPERATIONS	3 Months Ended
ORGANIZATION AND OPERATIONS	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND OPERATIONS	ORGANIZATION AND OPERATIONS CIM Commercial Trust Corporation ("CIM Commercial" or the "Company"), a Maryland corporation and real estate investment trust ("REIT"), together with its wholly-owned subsidiaries ("we," "us" or "our") primarily acquires, owns, and operates Class A and creative office assets in vibrant and improving metropolitan communities throughout the United States (including improving and developing such assets). These communities are located in areas that include traditional downtown areas and suburban main streets, which have high barriers to entry, high population density, positive population trends and a propensity for growth. We were originally organized in 1993 as PMC Commercial Trust ("PMC Commercial"), a Texas real estate investment trust. On July 8, 2013, PMC Commercial entered into a merger agreement with CIM Urban REIT, LLC ("CIM REIT"), an affiliate of CIM Group, L.P. ("CIM Group" or "CIM"), and subsidiaries of the respective parties. CIM REIT was a private commercial REIT and was the owner of CIM Urban Partners, L.P. ("CIM Urban"). The merger was completed on March 11, 2014 (the "Acquisition Date"). Our common stock, $0.001 par value per share ("Common Stock"), is currently traded on the Nasdaq Global Market ("Nasdaq"), under the ticker symbol "CMCT", and on the Tel Aviv Stock Exchange (the "TASE"), under the ticker symbol "CMCT-L." Our Series L preferred stock, $0.001 par value per share ("Series L Preferred Stock"), is currently traded on Nasdaq and on the TASE, in each case under the ticker symbol "CMCTP." We have authorized for issuance 900,000,000 shares of common stock and 100,000,000 shares of preferred stock ("Preferred Stock"). We filed Articles of Amendment (the "Reverse Stock Split Amendment") to effectuate a one-for-three reverse stock split of our Common Stock, effective on September 3, 2019 (the "Reverse Stock Split"). Pursuant to the Reverse Stock Split Amendment, every three shares of Common Stock issued and outstanding immediately prior to the effective time of the Reverse Stock Split were converted into one share of Common Stock, par value $0.003 per share. In connection with the Reverse Split Amendment, the Company filed Articles of Amendment to revert the par value of the Common Stock issued and outstanding from $0.003 per share to $0.001 per share, effective as of September 3, 2019, following the effective time of the Reverse Split Amendment. All Common Stock and per share of Common Stock amounts set forth in this Quarterly Report on Form 10-Q have been adjusted to give retroactive effect to the Reverse Stock Split, unless otherwise stated. CIM Commercial has qualified and intends to continue to qualify as a REIT, as defined in the Internal Revenue Code of 1986, as amended. On March 16, 2020, the Company established an “at the market” (“ATM”) program through which it may, from time to time in its discretion, offer and sell shares of Common Stock having an aggregate offering price of up to $25,000,000 through an investment banking firm acting as the sales agent. Sales of Common Stock under the ATM program may be made directly on or through Nasdaq, among other methods. The Company intends to use the net proceeds from shares sold under the ATM program, if any, for general corporate purposes, acquisitions of shares of our preferred stock, whether through one or more tender offers, share repurchases or otherwise, and acquisitions consistent with our acquisition and asset management strategies. As of May 7, 2020, no sales of Common Stock have been made under the ATM program.

REDEEMABLE PREFERRED STOCK (Tables)

3 Months Ended

Mar. 31, 2020

Temporary Equity Disclosure [Abstract]

Dividends Declared

Cash dividends on our Series D Preferred Stock paid in respect of the three months ended March 31, 2020 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends
			(in thousands)
March 2, 2020	April 15, 2020	5,980	$	1
March 2, 2020	March 16, 2020	5,600	$	—

Cash dividends on our Series A Preferred Stock paid in respect of the three months ended March 31, 2020 and 2019 consist of the following:



Declaration Date	Payment Date	Number of Shares	Cash Dividends
			(in thousands)
January 28, 2020	April 15, 2020	4,827,633	$	547
January 28, 2020	March 16, 2020	4,684,453	$	530
January 28, 2020	February 18, 2020	4,581,353	$	516

February 20, 2019	April 15, 2019	3,149,924	$	1,010

Cash dividends per share of Common Stock paid in respect of the three months ended March 31, 2020 and 2019 consist of the following:



Declaration Date	Payment Date	Type	Cash Dividend Per Common Share
March 2, 2020	March 25, 2020	Regular Quarterly	$	0.075

February 20, 2019	March 25, 2019	Regular Quarterly	$	0.375

Dividends Accumulated



Accumulation Period
Start Date	End Date	Number of Shares	Dividends Accumulated
			(in thousands)
January 1, 2020	March 31, 2020	5,387,160	$	2,101

January 1, 2019	March 31, 2019	8,080,740	$	3,152

STOCKHOLDERS' EQUITY - Dividends (Details) - $ / shares	Mar. 02, 2020	Feb. 20, 2019
Common Stock
Dividends Payable [Line Items]
Declared dividends per common share (in usd per share)	$ 0.075	$ 0.375

EARNINGS PER SHARE ('EPS") - Narrative (Details) - shares

3 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Dec. 31, 2019

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Basic weighted average shares outstanding (in shares)

^[1]

14,598,000

Series A Preferred Stock

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Effect of dilutive share (in shares)

1,000

647,000

Preferred stock, shares outstanding (in shares)

1,687,938

1,630,421

Series D Preferred Stock

Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]

Effect of dilutive share (in shares)

Preferred stock, shares outstanding (in shares)

5,980

[1]	All share and per share amounts have been adjusted to give retroactive effect to the one-for-three reverse stock split of our common stock effected on September 3, 2019.

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2020

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Useful Lives of Real Estate

Depreciation and amortization are recorded on a straight-line basis over the estimated useful lives as follows:



Buildings and improvements		15 - 40 years
Furniture, fixtures, and equipment		3 - 5 years
Tenant improvements		Shorter of the useful lives or the terms of the related leases

Schedule of Recognized Rental Income

For the three months ended March 31, 2020 and 2019, we recognized rental income as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Rental and other property income
Fixed lease payments (1)	$	13,345	$	30,896
Variable lease payments (2)	1,474		2,685
Rental and other property income	$	14,819	$	33,581


(1)	Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of acquired above-market leases, below-market leases and lease incentives.


(2)	Variable lease payments include expense reimbursements billed to tenants and percentage rent, net of bad debt expense from our operating leases.

Reconciliation of Hotel Revenue

Below is a reconciliation of the hotel revenue from contracts with customers to the total hotel segment revenue disclosed in Note 18:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Hotel properties
Hotel income	$	7,759	$	9,804
Rental and other property income	462		736
Interest and other income	32		49
Hotel revenues	$	8,253	$	10,589

ACQUISITIONS AND DISPOSITIONS

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

ACQUISITIONS AND DISPOSITIONS

The fair value of real estate acquired is recorded to the acquired tangible assets, consisting primarily of land, land improvements, building and improvements, tenant improvements, furniture, fixtures, and equipment, and identified intangible assets and liabilities, consisting of the value of acquired above-market and below-market leases, in-place leases and ground leases, if any, based in each case on their respective fair values. Loan premiums, in the case of above-market rate loans, or loan discounts, in the case of below-market rate loans, are recorded based on the fair value of any loans assumed in connection with acquiring the real estate.

2020 Transactions—There were no acquisitions and dispositions during the three months ended March 31, 2020.

2019 Transactions—There were no acquisitions during the three months ended March 31, 2019.



Property	Asset Type	Date of Sale	Square Feet	Sales Price		Transaction Costs		Gain on Sale
				(in thousands)
March Oakland Properties, Oakland, CA (1)	Office / Parking Garage	March 1, 2019	975,596	$	512,016	$	8,971	$	289,779
830 1st Street, Washington, D.C.	Office	March 1, 2019	247,337	116,550		2,438		45,710
260 Townsend Street, San Francisco, CA	Office	March 14, 2019	66,682	66,000		2,539		42,092
				$	694,566	$	13,948	$	377,581


(1)	The "March Oakland Properties" consist of 1901 Harrison Street, 2100 Franklin Street, 2101 Webster Street, and 2353 Webster Street Parking Garage.

The results of operations of the properties we sold have been included in the consolidated statements of operations through each property's respective disposition date. The following is the detail of the carrying amounts of assets and liabilities

at the time of the sales of the properties that occurred during the three months ended March 31, 2019:



	(in thousands)
Assets
Investments in real estate, net	$	270,910
Deferred rent receivable and charges, net	32,284
Other intangible assets, net	316
Total assets	$	303,510
Liabilities
Debt, net (1) (2)	$	278,777
Total liabilities	$	278,777


(1)	Debt, net is presented net of deferred loan costs of $1,417,000 and accumulated amortization of $494,000.

(2)

In connection with our negotiation of an agreement with an unrelated third-party for the sale of 100% fee-simple interests in two office properties and one development site located in Washington, D.C., which sale was consummated in July 2019, we determined the book value of such properties exceeded their estimated fair value and recognized an impairment charge of $66,200,000 during the three months ended March 31, 2019 under the held-and-used impairment model. Following our signing of the agreement for the sale of the aforementioned properties and our receipt of a non-refundable deposit in respect of their sale in June 2019, such properties were classified as held for sale as of June 30, 2019 and we recognized an additional impairment charge of $2,800,000 under the held-for-sale impairment model. Our determination of the fair values of these properties was based on negotiations with the third-party buyer and the contract sales price.

CONCENTRATIONS (Tables)

3 Months Ended

Mar. 31, 2020

Risks and Uncertainties [Abstract]

Concentration Risks From Properties

Our revenue concentrations from properties are as follows:



	Three Months Ended March 31,
	2020		2019
California	91.9	%	76.5	%
Texas	7.7		3.6
Washington, D.C.	0.4		19.9
	100.0	%	100.0	%

Our real estate investments concentrations from properties are as follows:



	March 31, 2020		December 31, 2019
California	93.9	%	94.4	%
Texas	6.1		5.6
	100.0	%	100.0	%

RELATED-PARTY TRANSACTIONS (Details) ft² in Thousands							3 Months Ended
RELATED-PARTY TRANSACTIONS (Details) ft² in Thousands	May 11, 2020	Apr. 10, 2020 shares	Apr. 09, 2020	Jan. 28, 2020	Jan. 01, 2019 sudsidiary	May 10, 2018	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Apr. 30, 2020	Dec. 31, 2019 USD ($)	Aug. 07, 2019 ft²	May 15, 2019 ft²	Oct. 01, 2015	Mar. 11, 2014 USD ($)
Related-party transactions
Due to related parties							$ 10,317,000			$ 9,431,000
Wholesaling agreement, percent of selling price fee per share						2.75%
Stock issuance costs							$ 207,000	$ 126,000
CIM Urban REIT Management, L.P. \| 0 - 500,000
Related-party transactions
Quarterly fee percentage							0.25%
CIM Urban REIT Management, L.P. \| 0 - 500,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments							$ 0
CIM Urban REIT Management, L.P. \| 0 - 500,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments							$ 500,000,000
CIM Urban REIT Management, L.P. \| 500,000 - 1,000,000
Related-party transactions
Quarterly fee percentage							0.2375%
CIM Urban REIT Management, L.P. \| 500,000 - 1,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments							$ 500,000,000
CIM Urban REIT Management, L.P. \| 500,000 - 1,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments							$ 1,000,000,000
CIM Urban REIT Management, L.P. \| 1,000,000 - 1,500,000
Related-party transactions
Quarterly fee percentage							0.225%
CIM Urban REIT Management, L.P. \| 1,000,000 - 1,500,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments							$ 1,000,000,000
CIM Urban REIT Management, L.P. \| 1,000,000 - 1,500,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments							$ 1,500,000,000
CIM Urban REIT Management, L.P. \| 1,500,000 - 4,000,000
Related-party transactions
Quarterly fee percentage							0.2125%
CIM Urban REIT Management, L.P. \| 1,500,000 - 4,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments							$ 1,500,000,000
CIM Urban REIT Management, L.P. \| 1,500,000 - 4,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments							$ 4,000,000,000
CIM Urban REIT Management, L.P. \| 4,000,000 - 20,000,000
Related-party transactions
Quarterly fee percentage							0.10%
CIM Urban REIT Management, L.P. \| 4,000,000 - 20,000,000 \| Minimum
Related-party transactions
Daily average adjusted fair value of investments							$ 4,000,000,000
CIM Urban REIT Management, L.P. \| 4,000,000 - 20,000,000 \| Maximum
Related-party transactions
Daily average adjusted fair value of investments							20,000,000,000
CIM Urban REIT Management, L.P. \| Asset Management Fees
Related-party transactions
Fees							2,363,000	4,326,000
Due to related parties							2,364,000			2,356,000
CIM Urban REIT Management, L.P. \| Property Management Fees
Related-party transactions
Fees							427,000	1,005,000
Affiliated Entity \| Second Amended and Restated Dealer Manager Agreement, Selling Commissions Payable
Related-party transactions
Rate involved in related party transaction				5.50%
CIM Management Entities
Related-party transactions
Due to related parties							4,146,000			4,107,000
CIM Management Entities \| Personnel Fees
Related-party transactions
Fees							969,000	1,630,000
CIM Management Entities \| Lease Commission Fees
Related-party transactions
Fees							40,000	22,000
CIM Management Entities \| Construction Management Fees
Related-party transactions
Fees							170,000	100,000
CIM Management Entities And Related Parties
Related-party transactions
Due to related parties										97,000
Due from related parties							136,000
CIM Service Provider, LLC \| Base Service Fee
Related-party transactions
Fees							282,000	276,000
Fees payable per year under agreement														$ 1,000,000
CIM Service Provider, LLC \| Master Services Agreement
Related-party transactions
Due to related parties							2,491,000			1,673,000
Compensation expensed for performing other services							812,000	647,000
CIM SBA Staffing, LLC \| Personnel Fees
Related-party transactions
Due to related parties							808,000			1,029,000
Deferred personnel costs							31,000	6,000
CIM SBA Staffing, LLC \| Expenses Related to Lending Segment Subject to Reimbursement
Related-party transactions
Fees							682,000	637,000
CIM Management Entities Affiliate
Related-party transactions
Lease renewal term													5 years
Rental and other property income							29,000	27,000
CIM Group \| Eleven Year Lease
Related-party transactions
Rental and other property income							370,000	0
Lease, term of contract												11 years
Net rentable area (in sq ft) \| ft²											30	32
CIM Capital, LLC
Related-party transactions
Number of subsidiaries \| sudsidiary					4
CCO Capital, LLC \| Wholesaling Agreement
Related-party transactions
Due to related parties							372,000			169,000
Deferred costs							889,000			$ 621,000
Stock issuance costs							$ 163,000	$ 160,000
Subsequent Event \| Affiliated Entity \| Investment Management Agreement
Related-party transactions
Common stock issued (in shares) \| shares		203,349
Percent of common stock outstanding									1.40%
Subsequent Event \| Affiliated Entity \| Second Amended and Restated Dealer Manager Agreement, Amendment No. 1, Selling Commissions Payable
Related-party transactions
Rate involved in related party transaction			7.00%
Subsequent Event \| CCO Capital, LLC \| Second Amended and Restated Dealer Manager Agreement, Amendment No. 1, Reallowance of Selling Commissions
Related-party transactions
Rate involved in related party transaction			100.00%
Subsequent Event \| CIM Service Provider, LLC \| Affiliated Entity \| Master Services Agreement, Amendment, Quarterly Incentive Fee
Related-party transactions
Related party transaction, rate	15.00%
Subsequent Event \| CIM Service Provider, LLC \| Affiliated Entity \| Master Services Agreement, Amendment, Quarterly Incentive Fee, Threshold For Eligibility, Per Quarter
Related-party transactions
Related party transaction, rate	1.75%
Subsequent Event \| CIM Service Provider, LLC \| Affiliated Entity \| Master Services Agreement, Amendment, Quarterly Incentive Fee, Threshold For Eligibility, Annualized
Related-party transactions
Related party transaction, rate	7.00%

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 278,195	$ 617,275
Other comprehensive income before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	(1,806)
Net current period other comprehensive income (loss)	0	(1,806)
Ending balance	279,539	909,507
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	0	1,806
Ending balance	$ 0	$ 0