CIM Commercial Trust Announces Significant Reduction in Management Fee

Key Facts

• L) (“we”, “our”, “CMCT”, “CIM Commercial”, or the “Company”) announced that CIM Group, the manager to CMCT, has agreed to a fee waiver that is expected to reduce CMCT’s management fee by approximately 55%, resulting in $0.21 per share of annualized cost savings.
• “Management intends to recommend to the Board that CIM Commercial use substantially all of the cost savings achieved by the lower management fee to reward common stockholders through a dividend increase starting in the first quarter.
• CIM Group has agreed to the new management fee structure and will waive all fees in excess of this new calculation.
• New Existing Base Fee 1% of CMCT’s net asset value attributable to its common stock Based on the fair value of RE assets Less than $500 million 1.00% $500 million to $1 billion 0.95% $1 billion to $1.5 billion 0.90% $1.5 billion to $4 billion 0.85% $4 billion+ 0.40% Incentive Fee In any quarter, 100% of CIM Commercial’s quarterly core funds from operations (“core FFO”) in excess of a quarterly threshold equal to 1.75% (the “hurdle rate”) (i.e., 7.00% on an annualized basis), but less than 2.1875% (i.e., 8.75% annualized), of CIM Commercial’s average adjusted common stockholders’ equity (i.e., common stockholders’ equity plus accumulated depreciation and amortization) for such quarter and 20% of the amount of the quarterly core FFO, if any, that exceeds 2.1875% (8.75% annualized) of CMCT’s average adjusted common stockholders’ equity for such quarter.

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