Colony Credit Real Estate (CLNC) announces $385 million restructuring charge.
Colony Credit Real Estate, Inc. (CLNC) reported third quarter 2019 earnings today, which included a $127 million loan loss provision and $258 million impairment charge for the real estate and preferred equity portfolio. The restructuring charges reflect CLNC's decision to accelerate the monetization of approximately 70 legacy loans and property investments, which have a revised gross book value of approximately $847 million. CLNC also announced that it was reducing its monthly dividend by 31% to $0.10/share, effective with the November dividend.
Colony Credit additionally disclosed that has received an expression of interest from its external manager, Colony Capital (CLNY), to purchase the management contract and assume responsibility for other credit-related investments held by Colony Capital. This proposal is currently under review by CLNC's board of directors.
Colony Credit is a commercial mortgage REIT formed in January 2018 to consolidate the credit-related businesses of Colony Capital and several non-traded REITs previously sponsored by NorthStar Realty Finance. As of September 30, 2019, CLNC reported total book capital of approximately $5.3 billion.