LOS ANGELES--(BUSINESS WIRE)--March 09, 2026--
Creative Media & Community Trust Corporation $(CMCT)$ ("we", "our", "CMCT", or the "Company") today reported operating results for the three months ended December 31, 2025.
Fourth Quarter 2025 Highlights
Real Estate Portfolio
-- CMCT's office portfolio was 74.8% leased as of December 31, 2025 (88.5%
leased when excluding our one Oakland office building (the "Oakland
Office Building"), compared to 81.7% leased as of December 31, 2024).
-- Executed 22,966 square feet of leases with terms longer than 12
months.
-- During the fourth quarter, one of our unconsolidated joint ventures
completed the development of a 36-unit multifamily building in Los
Angeles, California.
Financial Results
-- Net loss attributable to common stockholders of $(17.7) million, or
$(11.20) per diluted share.
-- Funds from operations attributable to common stockholders ("FFO")(3)1
was $(7.1) million, or $(4.49) per diluted share.
-- Core FFO attributable to common stockholders ("Core FFO")(4)1 was
$(5.9) million, or $(3.74) per diluted share.
Asset Sales
-- On January 21, 2026, we completed the sale of our lending business
("First Western") for a purchase price of approximately $44.9 million2.
Management Commentary
The Company continues to make significant progress on its previously announced plan to accelerate its focus towards premier multifamily assets, strengthen the balance sheet and improve liquidity. Operating trends have been improving across the multifamily portfolio, the Los Angeles and Austin office assets and the company's one hotel.
Since announcing this plan in September 2024, the company has significantly improved its balance sheet having completed financings on nine assets, fully retired its recourse credit facility, sold its lending business and redeemed approximately $153.3 million of Preferred Stock into shares of the Company's Common Stock, par value $0.001 per share (the "Common Stock"). In addition, the Company announced today that it expects to redeem approximately 1,957,023 shares of Series A Preferred Stock, par value $0.001 per share, approximately 7,767,609 shares of Series A1 Preferred Stock, par value $0.001 per share and approximately 21,760 shares of Series D Preferred Stock, par value $0.001 per share (collectively, the "Preferred Stock"), in shares of Common Stock (the "March 2026 Redemption").
The Redemption is expected to improve CMCT's FFO(1) by approximately $16.0 million per year(3) and returns the company's capital structure back to its long-term target (approximately 38% common equity, 7% preferred equity and 55% debt when adjusting for the Redemption), on a fair value basis. Given the company's significantly improved financial position, other than the March 2026 Redemption, the company does not currently intend to redeem, at the Company's election, additional Preferred Stock in shares of Common Stock. However, the Company will evaluate redemption requests submitted by holders of Preferred Stock at the time it receives such requests and may elect to redeem those Preferred Shares in Common Stock or cash, at the Company's discretion.
Operating Trends
The company believes there is an opportunity to significantly improve net operating income of its multifamily portfolio by increasing occupancy and by renewing leases at market rents which exceed in-place rents. CMCT's multifamily occupancy, excluding its building in Echo Park Los Angeles which just began lease-up during Q4, was 88.5% as of December 31, 2025, representing a 320 basis point and 680 basis point improvement from the third quarter of 2025 and the fourth quarter 2024, respectively. In addition, the Company completed a 36 unit premier, class A multifamily apartment building in Echo Park Los Angeles in the fourth quarter of 2025. At year-end, the building was 16.7% occupied; as of the end of February 2026, the building was approximately 52% leased. The Company is also seeing improving demand at its Bay Area multifamily buildings with occupancy improving to 88.4% at 2025 year-end, compared to 84.7% at the end of the third quarter of 2025.
In the office segment, the Company executed approximately 182,120 square feet of leases during 2025. Excluding the Oakland Office Building, the leased percentage was 88.5% at the end of 2025, a 190 basis point improvement from the third quarter of 2025 and a 680 basis point improvement the fourth quarter of 2024. During the fourth quarter of 2025, occupancy at the Company's 1130 Howard office building increased to 100% from 38.9% in the third quarter of 2025. At 11600 Wilshire Boulevard, the Company recently commenced a renovation program on several small suites, which is anticipated to fuel leasing activity. The Company owns one office asset in Oakland, where demand continues to be challenging. The mortgage on the asset matures in the third quarter of 2026; the Company is currently seeking an extension of the maturity but cannot guarantee it will reach an agreement with the lender. In the fourth quarter of 2025, the Oakland Office Building generated approximately $0.5 million of cash flow after debt service(4) .
In the hotel segment, the Company has substantially completed the renovation of the public space during the first quarter of 2026, following the renovation of all 505 rooms, setting the property up well for 2026 and beyond. The renovation was the first large scale renovation of the property since it was acquired in 2008.
Asset Sales
In January 2026, the Company completed the sale of its lending division for a purchase price of approximately $44.9 million (which is net of the outstanding balance of debt related to the 2023 securitization of certain loan receivables), subject to post-closing adjustments. Giving effect to the payment of other debt, transaction expenses and other matters, the transactions yielded net cash proceeds to the Company of approximately $31.2 million.
The Company continues to evaluate additional asset sales.
Fourth Quarter 2025 Results
Real Estate Portfolio
As of December 31, 2025, our real estate portfolio consisted of 27 assets, all of which were fee-simple properties and five of which we own through investments in unconsolidated joint ventures. Our unconsolidated joint ventures contain one office property, three multifamily properties (one of which has been partially converted from office into multifamily units and is now classified as a multifamily property) and one commercial development site. As of December 31, 2025, our 12 office properties, totaling approximately 1.3 million rentable square feet, were 74.8% occupied; our one hotel with an ancillary parking garage, which has a total of 505 rooms, had RevPAR of $152.70 for the year ended December 31, 2025, and our five multifamily properties were 85.3% occupied. Additionally, as of December 31, 2025, we had eight development sites (two of which were being used as parking lots).
Financial Results
Net loss attributable to common stockholders was $(17.7) million, or $(11.20) per diluted share of Common Stock, for the three months ended December 31, 2025, compared to a net loss attributable to common stockholders of $(16.6) million, or $(44.52) per diluted share of Common Stock, for the same period in 2024. The increase in net loss attributable to common stockholders was primarily due to an increase in impairment of real estate of $3.5 million and an increase in interest expense not allocated to our operating segments of $941,000, partially offset by an increase in segment net operating income of $1.7 million and a decrease in loss on early extinguishment of debt of $1.4 million.
FFO(3)5 was $(7.1) million, or $(4.49) per diluted share of Common Stock, for the three months ended December 31, 2025, compared to $(8.7) million, or $(23.21) per diluted share of Common Stock, for the same period in 2024. The increase in FFO(1) was primarily due to an increase of $1.7 million in segment net operating income, a decrease in loss on early extinguishment of debt of $1.4 million and a decrease of $923,000 in redeemable preferred stock dividends. These were partially offset by an increase in interest expense not allocated to our operating segments of $941,000, an increase in redeemable preferred stock redemptions of $883,000, and an increase in general and administrative expenses of $617,000.
Core FFO(4)1 was $(5.9) million, or $(3.74) per diluted share of Common Stock for the three months ended December 31, 2025, compared to $(7.0) million, or $(18.64) per diluted share of Common Stock for the same period in 2024. The increase in Core FFO(1) is attributable to the aforementioned changes in FFO(1) , while not impacted by the decrease in loss on early extinguishment of debt or the increase in redeemable preferred stock redemptions, as these are excluded from our Core FFO(1) calculation.
Segment Information
Our reportable segments during the three months ended December 31, 2025 and 2024 consisted of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for our lending business. Total segment net operating income ("NOI")(5) was $10.9 million for the three months ended December 31, 2025, compared to $9.2 million for the same period in 2024.
Office
Same-Store
Same-store(2) office segment NOI(5) was $6.4 million for the three months ended December 31, 2025, an increase from $5.2 million compared to same period in 2024, while same-store(1) office Cash NOI(6)6 was $7.0 million for the three months ended December 31, 2025, a increase from $6.2 million in the same period in 2024. The increase in same-store(2) office Segment NOI(5) was primarily driven by an increase in rental revenues at an office property in Austin, Texas, due to an increase in occupancy, and at an office property in Beverly Hills, California, which had an increase in occupancy and rental rates as well as a decrease in property taxes. These were partially offset by a decrease in rental revenues at an office property in Los Angeles, California due to a decrease in occupancy, and at an office property in San Francisco, California, due to a decrease in rental rates.
At December 31, 2025, the Company's same-store(2) office portfolio was 74.8% occupied, a decrease of 420 basis points year-over-year on a same-store(2) basis, and 74.8% leased, a decrease of 380 basis points year-over-year on a same-store(2) basis. The annualized rent per occupied square foot(7) on a same-store(2) basis was $58.78 at December 31, 2025, compared to $60.48 at December 31, 2024. During the three months ended December 31, 2025, the Company executed 22,966 square feet of leases with terms longer than 12 months at our same-store(2) office portfolio.
Total
Office Segment NOI(5) increased to $6.4 million for the three months ended December 31, 2025, as compared to $5.2 million for the same period in 2024, driven by the aforementioned decrease in same-store(2) office Segment NOI(5) as there was no non-same-store office activity during either period.
Hotel
Hotel Segment NOI(5) was $2.1 million for the three months ended December 31, 2025, consistent with $2.1 million for the same period in 2024:
Three Months Ended December 31,
---------------------------------------
2025 2024
--------------------- ----------------
Occupancy 63.1% 54.5%
Average daily rate(a) $ 212.70 $ 195.55
Revenue per available room(b) $ 134.24 $ 106.59
(a) Calculated as trailing 3-month room revenue divided by the number of
rooms occupied.
(b) Calculated as trailing 3-month room revenue divided by the number of
available rooms.
Multifamily
Our Multifamily Segment consists of two multifamily buildings located in Oakland, California as well as three investments in multifamily buildings in Los Angeles, California owned through unconsolidated joint ventures, one of which, 701 S Hudson / 4750 Wilshire Boulevard, was reclassified from an office segment property to a multifamily segment property as of October 1, 2024, following the conversion of a portion of the building from office space into multifamily units and one property, 1915 Park Avenue, where we just completed the development of a 36-unit multifamily building during the fourth quarter of 2025. Our multifamily segment NOI(5) was $(870,000) for the three months ended December 31, 2025, compared to $855,000 for the same period in 2024. The decrease in our multifamily segment NOI(5) was primarily due to an increase in the unrealized loss on investments in real estate at our unconsolidated joint ventures during the three months ended December 31, 2025. As of December 31, 2025, our Multifamily Segment was 85.3% occupied, monthly rent per occupied unit(8) was $2,497 and net monthly rent per occupied unit(9) was $2,127, compared to 81.7%, $2,468, and $2,319, respectively, as of December 31, 2024.
Lending
Our lending segment primarily consisted of our SBA 7(a) lending platform, which was a national lender that primarily originated loans to small businesses in the hospitality industry. Lending segment NOI(5) was $3.3 million for the three months ended December 31, 2025, compared to $980,000 for the same period in 2024. The increase was primarily due to the reversal of CECL during the three months ended December 31, 2025 in connection with the reclassification of the assets and liabilities of First Western to held for sale. This was partially offset by a decrease in interest income as a result of loan payoffs and lower interest rates. Our lending segment was sold in January 2026.
(1) Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release. (2) The sales price of approximately $44.9 million is net of the outstanding balance of SBA 7(a) loan-backed notes and subject to adjustment. At the closing and upon giving effect to the payment of other debt, transaction expenses and other matters, the sale yielded net cash proceeds of approximately $31.2 million. (3) Represents cumulative 12 months of dividend expense for the shares of Preferred Stock expected to be redeemed in the Redemption, based on the respective dividend rates in place as of December 31, 2025 (4) Calculated as cash NOI less mortgage interest expense (5) Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release. (6) Non-GAAP financial measure. Refer to the explanations and reconciliations elsewhere in this release.
Debt and Equity
During the three months ended December 31, 2025, the Company redeemed 342,521 shares of Series A1 Preferred Stock (all shares were redeemed in shares of Common Stock), 351,874 shares of Series A Preferred Stock (all shares were redeemed in shares of Common Stock), and 4,122 shares of Series D Preferred Stock (all shares were redeemed in shares of Common Stock). These redemptions resulted in the collective issuance of 1,910,435 shares of Common Stock during the three months ended December 31, 2025.
Dividends
We declared preferred stock dividends on our Series A, Series A1 and Series D Preferred Stock for the fourth quarter of 2025. The dividends were payable on January 15, 2026 to holders of record at the close of business on January 5, 2026.
The dividend amounts are as follows:
Quarterly Dividend Amount
-------------------------------------- --------------------------------------
Series A Preferred Stock $0.34375 per share
-------------------------------------- --------------------------------------
Series A1 Preferred Stock $0.426875 per share*
-------------------------------------- --------------------------------------
Series D Preferred Stock $0.353125 per share
-------------------------------------- --------------------------------------
*The quarterly cash dividend of $0.426875 per share represents an annualized
dividend rate of 6.83% (2.5% plus the federal funds rate of 4.33% on the
applicable determination date). The terms of the Series A1 Preferred Stock
provide for cumulative cash dividends (if, as and when authorized by the Board
of Directors) on each share of Series A1 Preferred Stock at a quarterly rate
of the greater of (i) 6.00% of the Series A1 Stated Value, divided by four (4)
and (ii) the Federal Funds (Effective) Rate on the applicable determination
date, plus 2.50%, of the Series A1 Stated Value, divided by four (4), up to a
maximum of 2.50% of the Series A1 Stated Value per quarter.
About the Data
Descriptions of certain performance measures, including Segment NOI, Cash NOI, FFO attributable to common stockholders, and Core FFO attributable to common stockholders are provided below. Certain of these performance measures--Cash NOI, FFO attributable to common stockholders and Core FFO attributable to common stockholders --are non-GAAP financial measures. Refer to the subsequent tables for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure.
(1) Stabilized office portfolio: represents office properties where
occupancy was not impacted by a redevelopment or repositioning during
the period.
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(2) Same-store properties: are properties that we have owned and operated
in a consistent manner and reported in our consolidated results during
the entire span of the periods being reported. We excluded from our
same-store property set this quarter any properties (i) acquired on or
after October 1, 2024; (ii) sold or otherwise removed from our
consolidated financial statements on or before December 31, 2025; or
(iii) that underwent a major repositioning project we believed
significantly affected its results at any point during the period
commencing on October 1, 2024 and ending on December 31, 2025. When
determining our same-store office properties as of December 31, 2025,
one office property was excluded pursuant to (i) and (iii) above and
one office property was excluded pursuant to (ii) above.
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(3) FFO attributable to common stockholders ("FFO"): represents net income
(loss) attributable to common stockholders, computed in accordance with
GAAP, which reflects the deduction of redeemable preferred stock
dividends accumulated, excluding gain (or loss) from sales of real
estate, impairment of real estate, and real estate depreciation and
amortization. We calculate FFO in accordance with the standards
established by the National Association of Real Estate Investment
Trusts (the "NAREIT"). See 'Core FFO' definition below for discussion
of the benefits and limitations of FFO as a supplemental measure of
operating performance.
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(4) Core FFO attributable to common stockholders ("Core FFO"): represents
FFO attributable to common stockholders (computed as described above),
excluding gain (loss) on early extinguishment of debt, redeemable
preferred stock deemed dividends, redeemable preferred stock
redemptions, gain (loss) on termination of interest rate swaps, and
transaction costs.
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We believe that FFO is a widely recognized and appropriate measure of
the performance of a REIT and that it is frequently used by securities
analysts, investors and other interested parties in the evaluation of
REITs, many of which present FFO when reporting their results. In
addition, we believe that Core FFO is a useful metric for securities
analysts, investors and other interested parties in the evaluation of
our Company as it excludes from FFO the effect of certain amounts that
we believe are non-recurring, are non-operating in nature as they
relate to the manner in which we finance our operations, or
transactions outside of the ordinary course of business.
Like any metric, FFO and Core FFO should not be used as the only
measure of our performance because it excludes depreciation and
amortization and captures neither the changes in the value of our real
estate properties that result from use or market conditions nor the
level of capital expenditures and leasing commissions necessary to
maintain the operating performance of our properties, and Core FFO
excludes amounts incurred in connection with non-recurring special
projects, prepaying or defeasing our debt, repurchasing our preferred
stock, and adjusting the carrying value of our preferred stock
classified in temporary equity to its redemption value, all of which
have real economic effect and could materially impact our operating
results. Other REITs may not calculate FFO and Core FFO in the same
manner as we do, or at all; accordingly, our FFO and Core FFO may not
be comparable to the FFOs and Core FFOs of other REITs. Therefore, FFO
and Core FFO should be considered only as a supplement to net income
(loss) as a measure of our performance and should not be used as a
supplement to or substitute measure for cash flows from operating
activities computed in accordance with GAAP. FFO and Core FFO should
not be used as a measure of our liquidity, nor is it indicative of
funds available to fund our cash needs, including our ability to pay
dividends. FFO and Core FFO per share for the year-to-date period may
differ from the sum of quarterly FFO and Core FFO per share amounts due
to the required method for computing per share amounts for the
respective periods. In addition, FFO and Core FFO per share is
calculated independently for each component and may not be additive due
to rounding.
(5) Segment NOI: for our real estate segments represents 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 benefit (provision) for income taxes. For our
lending segment, Segment NOI represents interest income net of interest
expense and general overhead expenses. See 'Cash NOI' definition below
for discussion of the benefits and limitations of Segment NOI as a
supplemental measure of operating performance.
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(6) Cash NOI: for our real estate segments, represents Segment NOI adjusted
to exclude the effect of the straight lining of rents, acquired
above/below market lease amortization and other adjustments required by
generally accepted accounting principles ("GAAP"). For our lending
segment, there is no distinction between Cash NOI and Segment NOI. We
also evaluate the operating performance and financial results of our
operating segments using cash basis NOI excluding lease termination
income, or "Cash NOI excluding lease termination income".
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Segment NOI and Cash NOI are not measures of operating results or cash
flows from operating activities as measured by GAAP and should not be
considered alternatives to income from continuing operations, or to
cash flows as a measure of liquidity, or as an indication of our
performance or of our ability to pay dividends. Companies may not
calculate Segment NOI or Cash NOI in the same manner. We consider
Segment NOI and Cash NOI to be useful performance measures to investors
and management because, when compared across periods, they reflect the
revenues and expenses directly associated with owning and operating our
properties and the impact to operations from trends in occupancy rates,
rental rates and operating costs, providing a perspective not
immediately apparent from income from continuing operations.
Additionally, we believe that Cash NOI is helpful to investors because
it eliminates straight line rent and other non-cash adjustments to
revenue and expenses.
(7) Annualized rent per occupied square foot: represents gross monthly base
rent under leases commenced as of the specified periods, multiplied by
twelve. This amount reflects total cash rent before abatements. Where
applicable, annualized rent has been grossed up by adding annualized
expense reimbursements to base rent. Annualized rent for certain office
properties includes rent attributable to retail.
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(8) Monthly rent per occupied unit: Represents gross monthly base rent
under leases commenced as of the specified period, divided by occupied
units. This amount reflects total cash rent before concessions.
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(9) Net monthly rent per occupied unit: Represents gross monthly base rent
under leases commenced as of the specified period less rent concessions
granted during the specified period, divided by occupied units.
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FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations, including plans and objectives relating to future growth of CMCT's business and availability of funds. Such forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "project," "target," "expect," "intend," "might," "believe," "anticipate," "estimate," "could, " "would," "continue," "pursue," "potential," "forecast," "seek," "plan, " or "should," or "goal" or the negative thereof or other variations or similar words or phrases. Such forward-looking statements also include, among others, statements about CMCT's plans and objectives relating to future growth and outlook. Such forward-looking statements are based on particular assumptions that management of CMCT has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. Forward-looking statements are necessarily estimates reflecting the judgment of CMCT's management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include those associated with (i) the timing, form, and operational effects of CMCT's development activities, (ii) the ability of CMCT to raise in place rents to existing market rents and to maintain or increase occupancy levels, (iii) fluctuations in market rents, (iv) the effects of inflation and continuing higher interest rates on the operations and profitability of CMCT and (v) general economic, market and other conditions, including the effects of high unemployment rates, continued or renewed inflation and any recession or slowdown in economic growth. Additional important factors that could cause CMCT's actual results to differ materially from CMCT's expectations are discussed in "Item 1A--Risk Factors" in CMCT's Annual Report on Form 10-K for the year ended December 31, 2025 and in Part II, Item 1A of CMCT's Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. The forward-looking statements included herein are based on current expectations and there can be no assurance that these expectations will be attained. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond CMCT's control. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements expressed or implied
will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements expressed or implied herein, the inclusion of such information should not be regarded as a representation by CMCT or any other person that CMCT's objectives and plans will be achieved. Readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made. CMCT does not undertake to update them to reflect changes that occur after the date they are made, except as may be required by applicable securities laws.
CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited and in thousands, except share and per share amounts)
December 31, 2025 December 31, 2024
------------------- ---------------------
ASSETS
Investments in real estate,
net $ 698,087 $ 709,194
Investments in
unconsolidated entities 31,095 33,677
Cash and cash equivalents 15,439 20,262
Restricted cash 22,246 32,606
Loans receivable, net (Note
5) -- 56,210
Accounts receivable, net 2,598 4,345
Deferred rent receivable
and charges, net 18,692 19,896
Other intangible assets,
net 439 3,568
Other assets 4,732 9,797
Assets held for sale, net
(Note 5) 65,859 --
-------------- --------------
TOTAL ASSETS $ 859,187 $ 889,555
============== ==============
LIABILITIES, REDEEMABLE
PREFERRED STOCK, AND
EQUITY
LIABILITIES:
Debt, net $ 509,768 $ 505,732
Accounts payable and
accrued expenses 26,979 32,204
Due to related parties 22,819 14,068
Other liabilities 11,406 10,488
Liabilities associated
with assets held for
sale, net (Note 5) 21,966 --
-------------- --------------
Total liabilities 592,938 562,492
-------------- --------------
COMMITMENTS AND
CONTINGENCIES
REDEEMABLE PREFERRED
STOCK: Series A1
cumulative
redeemable preferred
stock, $0.001 par
value; 24,508,664
and 25,045,401
shares authorized as
of December 31, 2025
and December 31,
2024, respectively;
no shares issued and
outstanding as of
December 31, 2025,
respectively and
913,630 and 913,590
shares issued and
outstanding as of
December 31, 2024;
liquidation
preference of $25.00
per share, subject
to adjustment -- 20,799
EQUITY:
Series A cumulative
redeemable preferred
stock, $0.001 par
value; 30,848,680
and 31,305,025
shares authorized as
of December 31, 2025
and December 31,
2024, respectively;
8,820,338 and
3,669,018 shares
issued and
outstanding,
respectively, as of
December 31, 2025
and 8,820,338 and
4,125,363 shares
issued and
outstanding,
respectively, as of
December 31, 2024;
liquidation
preference of $25.00
per share, subject
to adjustment 91,906 103,326
Series A1 cumulative
redeemable preferred
stock, $0.001 par
value; 24,508,664
and 25,045,401
shares authorized as
of December 31, 2025
and December 31,
2024, respectively;
12,240,878 and
8,749,542 shares
issued and
outstanding,
respectively, as of
December 31, 2025
and 11,327,248 and
8,372,689 shares
issued and
outstanding,
respectively, as of
December 31, 2024;
liquidation
preference of $25.00
per share, subject
to adjustment 217,451 207,387
Series D cumulative
redeemable preferred
stock, $0.001 par
value; 26,987,468
and 26,991,590
shares authorized as
of December 31, 2025
and December 31,
2024, respectively;
56,857 and 44,325
shares issued and
outstanding,
respectively, as of
December 31, 2025
and 56,857 and
48,447 shares issued
and outstanding,
respectively, as of
December 31, 2024;
liquidation
preference of $25.00
per share, subject
to adjustment 1,089 1,190
Common stock, $0.001
par value;
900,000,000 shares
authorized;
2,699,686 shares
issued and
outstanding as of
December 31, 2025
and 466,180 shares
issued and
outstanding as of
December 31, 2024 3 119
Additional paid-in capital 1,019,044 994,973
Distributions in excess
of earnings (1,064,132) (1,002,479)
-------------- --------------
Total stockholders'
equity 265,361 304,516
-------------- --------------
Noncontrolling interests 888 1,748
Total equity 266,249 306,264
-------------- --------------
TOTAL LIABILITIES,
REDEEMABLE PREFERRED
STOCK, AND EQUITY 859,187 889,555
============== ==============
CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited and in thousands, except per share amounts)
Three Months Ended
December 31, Year Ended December 31,
----------------------- -------------------------
2025 2024 2025 2024
------------ --------- ------------ -----------
REVENUES:
Rental and other
property income $ 16,270 $ 16,094 $ 65,431 $ 72,266
Hotel income 9,092 7,911 39,642 37,679
Interest and other
income 3,089 3,454 11,596 14,567
------- ------- ------- -------
Total Revenues 28,451 27,459 116,669 124,512
------- ------- ------- -------
EXPENSES:
Rental and other
property operating 16,803 15,412 67,043 67,962
Asset management and
other fees to
related parties 316 463 1,356 1,797
Expense
reimbursements to
related
parties--corporate 805 472 3,496 2,281
Expense
reimbursements to
related
parties--lending
segment 575 663 2,591 2,571
Interest 9,945 9,053 40,191 36,872
General and
administrative (775) 1,761 5,355 7,004
Transaction-related
costs 48 31 1,475 1,382
Depreciation and
amortization 6,912 8,016 27,081 27,373
Loss on early
extinguishment of
debt (Note 7) -- 1,416 88 1,416
Impairment of real
estate (Note 3) 3,471 -- 3,692 --
Loss on assets held
for sale (Note 5) 298 -- 298 --
------- ------- ------- -------
Total Expenses 38,398 37,287 152,666 148,658
------- ------- ------- -------
Loss from
unconsolidated
entities (1,475) (364) (3,760) (806)
------- ------- ------- -------
Gain on sale of real
estate (Note 3) -- -- 679 --
------- ------- ------- -------
LOSS BEFORE PROVISION
FOR INCOME TAXES (11,422) (10,192) (39,078) (24,952)
Provision for income
taxes 144 225 497 798
------- ------- ------- -------
NET LOSS (11,566) (10,417) (39,575) (25,750)
Net loss attributable
to noncontrolling
interests 132 152 573 575
------- ------- ------- -------
NET LOSS ATTRIBUTABLE TO
THE COMPANY (11,434) (10,265) (39,002) (25,175)
Redeemable preferred
stock dividends
declared or
accumulated (Note
11) (5,162) (6,085) (21,207) (29,686)
Redeemable preferred
stock deemed
dividends (Note 11) -- -- -- (755)
Redeemable preferred
stock redemptions
(Note 11) (1,139) (256) (1,439) (17,727)
------- ------- ------- -------
NET LOSS ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(17,735) $(16,606) $(61,648) $(73,343)
======= ======= ======= =======
NET LOSS ATTRIBUTABLE
TO COMMON STOCKHOLDERS
PER SHARE:
Basic $ (11.20) $ (44.52) $ (67.08) $(431.43)
======= ======= ======= =======
Diluted $ (11.20) $ (44.52) $ (67.08) $(431.43)
======= ======= ======= =======
WEIGHTED AVERAGE SHARES
OF COMMON STOCK
OUTSTANDING:
Basic 1,584 373 919 170
======= ======= ======= =======
Diluted 1,584 373 919 170
======= ======= ======= =======
CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES
Funds from Operations Attributable to Common Stockholders
(Unaudited and in thousands, except per share amounts)
We believe that FFO is a widely recognized and appropriate measure of the performance of a REIT and that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO represents net income (loss) attributable to common stockholders, computed in accordance with generally accepted accounting principles ("GAAP"), which reflects the deduction of redeemable preferred stock dividends accumulated, excluding gains (or losses) from sales of real estate, impairment of real estate, and real estate depreciation and amortization. We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (the "NAREIT").
Like any metric, FFO should not be used as the only measure of our performance because it excludes depreciation and amortization and captures neither the changes in the value of our real estate properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate FFO in accordance with the standards established by the NAREIT; accordingly, our FFO may not be comparable to the FFO of other REITs. Therefore, FFO should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a supplement to or substitute measure for cash flows from operating activities computed in accordance with GAAP. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. The following table sets forth a reconciliation of net income (loss) attributable to common stockholders to FFO attributable to common stockholders for the three months and years ended December 31, 2025 and 2024.
Three Months Ended
December 31, Year Ended December 31,
----------------------- -------------------------
2025 2024 2025 2024
------------ --------- ------------ -----------
Numerator:
Net loss attributable to
common stockholders $(17,735) $(16,606) $(61,648) $(73,343)
Depreciation and
amortization 6,912 8,016 27,081 27,373
Noncontrolling interests'
proportionate share of
depreciation and
amortization (53) (66) (233) (306)
Impairment of real estate 3,471 -- 3,692 --
Loss on assets held for
sale 298 -- 298 --
Gain on sale of real
estate -- -- (679) --
------- ------- ------- -------
FFO attributable to common
stockholders $ (7,107) $ (8,656) $(31,489) $(46,276)
Redeemable preferred
stock dividends declared
on dilutive shares (a) -- -- -- --
------- ------- ------- -------
Diluted FFO attributable
to common stockholders $ (7,107) $ (8,656) $(31,489) $(46,276)
======= ======= ======= =======
Denominator:
Basic weighted average
shares of common stock
outstanding 1,584 373 919 170
Effect of dilutive
securities--contingently
issuable shares (a) -- -- -- --
------- ------- ------- -------
Diluted weighted average
shares and common stock
equivalents outstanding 1,584 373 919 170
======= ======= ======= =======
FFO attributable to common
stockholders per share:
Basic $ (4.49) $ (23.21) $ (34.26) $(272.21)
======= ======= ======= =======
Diluted $ (4.49) $ (23.21) $ (34.26) $(272.21)
======= ======= ======= =======
(a) For the three months and the years ended December 31, 2025 and 2024,
the effect of certain shares of redeemable preferred stock were
excluded from the computation of diluted FFO attributable to common
stockholders and the diluted weighted average shares and common stock
equivalents outstanding as such inclusion would be anti-dilutive.
CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES
Core Funds from Operations Attributable to Common Stockholders
(Unaudited and in thousands, except per share amounts)
In addition to calculating FFO in accordance with the standards established by NAREIT, we also calculate a supplemental FFO metric we call Core FFO attributable to common stockholders. Core FFO attributable to common stockholders represents FFO attributable to common stockholders, computed in accordance with NAREIT's standards, excluding losses (or gains) on early extinguishment of debt, redeemable preferred stock redemptions, gains (or losses) on termination of interest rate swaps, and transaction costs. We believe that Core FFO is a useful metric for securities analysts, investors and other interested parties in the evaluation of our Company as it excludes from FFO the effect of certain amounts that we believe are non-recurring, are non-operating in nature as they relate to the manner in which we finance our operations, or transactions outside of the ordinary course of business.
Like any metric, Core FFO should not be used as the only measure of our performance because, in addition to excluding those items prescribed by NAREIT when calculating FFO, it excludes amounts incurred in connection with non-recurring special projects, prepaying or defeasing our debt and repurchasing our preferred stock, all of which have real economic effect and could materially impact our operating results. Other REITs may not calculate Core FFO in the same manner as we do, or at all; accordingly, our Core FFO may not be comparable to the Core FFO of other REITs who calculate such a metric. Therefore, Core FFO should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a supplement to or substitute measure for cash flows from operating activities computed in accordance with GAAP. Core FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. The following table sets forth a reconciliation of net income (loss) attributable to common stockholders to Core FFO attributable to common stockholders for the three months and the years ended December 31, 2025 and 2024.
Three Months Ended
December 31, Year Ended December 31,
----------------------- -------------------------
2025 2024 2025 2024
------------ --------- ------------ -----------
Numerator:
Net loss attributable to
common stockholders $(17,735) $(16,606) $(61,648) $(73,343)
Depreciation and
amortization 6,912 8,016 27,081 27,373
Noncontrolling interests'
proportionate share of
depreciation and
amortization (53) (66) (233) (306)
Impairment of real estate 3,471 -- 3,692 --
Loss on assets held for
sale 298 -- 298 --
Gain on sale of real
estate -- -- (679) --
------- ------- ------- -------
FFO attributable to
common stockholders $ (7,107) $ (8,656) $(31,489) $(46,276)
Loss on early
extinguishment of debt -- 1,416 88 1,416
Redeemable preferred
stock deemed dividends -- -- -- 755
Redeemable preferred
stock redemptions 1,139 256 1,439 17,727
Transaction-related costs 48 31 1,475 1,382
------- ------- ------- -------
Core FFO attributable to
common stockholders (5,920) (6,953) (28,487) (24,996)
Redeemable preferred
stock dividends declared
on dilutive shares (a) -- -- -- --
------- ------- ------- -------
Diluted Core FFO
attributable to common
stockholders $ (5,920) $ (6,953) $(28,487) $(24,996)
======= ======= ======= =======
Denominator:
Basic weighted average
shares of common stock
outstanding 1,584 373 919 170
Effect of dilutive
securities-contingently
issuable shares (a) -- -- -- --
------- ------- ------- -------
Diluted weighted average
shares and common stock
equivalents outstanding 1,584 373 919 170
======= ======= ======= =======
Core FFO attributable to
common stockholders per
share:
Basic $ (3.74) $ (18.64) $ (31.00) $(147.04)
======= ======= ======= =======
Diluted $ (3.74) $ (18.64) $ (31.00) $(147.04)
======= ======= ======= =======
(a) For the three months and the years ended December 31, 2025 and 2024,
the effect of certain shares of redeemable preferred stock were
excluded from the computation of diluted Core FFO attributable to
common stockholders and the diluted weighted average shares and common
stock equivalents outstanding as such inclusion would be
anti-dilutive.
CREATIVE MEDIA & COMMUNITY TRUST CORPORATION AND SUBSIDIARIES
Reconciliation of Net Operating Income
(Unaudited and in thousands)
We internally evaluate the operating performance and financial results of our real estate segments based on segment NOI, which is defined 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 segment NOI as interest income net of interest expense and general overhead expenses. We also evaluate the operating performance and financial results of our operating segments using cash basis NOI, or "cash NOI". For our real estate segments, we define cash NOI as segment NOI adjusted to exclude the effect of the straight lining of rents, acquired above/below market lease amortization and other adjustments required by GAAP.
Cash NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP and should not be considered an alternative to income from continuing operations, or to cash flows as a measure of liquidity, or as an indication of our performance or of our ability to pay dividends. Companies may not calculate cash NOI in the same manner. We consider cash NOI to be a useful performance measure to investors and management because, when compared across periods, it reflects the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. Additionally, we believe that cash NOI is helpful to investors because it eliminates straight line rent and other non-cash adjustments to revenue and expenses.
Below is a reconciliation of cash NOI to segment NOI and net income (loss) attributable to the Company for the three months ended December 31, 2025 and 2024.
Three months ended December 31, 2025
---------------------------------------------------------------------------
Non-Same-
Same-Store Store Total Multi-
Office Office Office Hotel family Lending Total
-------------- --------- ------- ------- ------ --------- -----------
Cash net operating
income $ 7,015 $ -- $7,015 $2,052 $(870) $ 3,265 $ 11,462
Deferred rent and
amortization of
intangible assets,
liabilities, and
lease inducements (568) -- (568) (1) -- -- (569)
------ -------- ----- ----- ---- ----- -------
Segment net operating
income $ 6,447 $ -- $6,447 $2,051 $(870) $ 3,265 $ 10,893
Interest and other
income 124
Asset management and
other fees to related
parties (316)
Expense reimbursements
to related parties --
corporate (805)
Interest expense (9,297)
General and
administrative (1,292)
Transaction-related
costs (48)
Depreciation and
amortization (6,912)
Impairment of real
estate (3,471)
Loss on assets held
for sale (298)
-------
Loss before provision
for income taxes (11,422)
Provision for income
taxes (144)
-------
Net loss (11,566)
Net loss attributable to
noncontrolling
interests 132
-------
Net loss attributable to
the Company $(11,434)
=======
Three months ended December 31, 2024
-------------------------------------------------------------------------
Non-Same-
Same-Store Store Total Multi-
Office Office Office Hotel family Lending Total
------------ --------- -------- ------ ------ --------- -----------
Cash net operating
income $ 6,234 $ -- $ 6,234 $2,097 $ 855 $ 980 $ 10,166
Deferred rent and
amortization of
intangible assets,
liabilities, and
lease inducements (1,008) -- (1,008) -- -- -- (1,008)
------- -------- ------ ----- ----- ----- -------
Segment net operating
income $ 5,226 $ -- $ 5,226 $2,097 $ 855 $ 980 $ 9,158
Interest and other
income 79
Asset management and
other fees to related
parties (463)
Expense reimbursements
to related parties --
corporate (472)
Interest expense (8,356)
General and
administrative (675)
Transaction-related
costs (31)
Depreciation and
amortization (8,016)
Loss on early
extinguishment of
debt (1,416)
-------
Loss before provision
for income taxes (10,192)
Provision for income
taxes (225)
-------
Net loss (10,417)
Net loss attributable to
noncontrolling
interests 152
-------
Net loss attributable to
the Company $(10,265)
=======
View source version on businesswire.com: https://www.businesswire.com/news/home/20260309473429/en/
CONTACT: For Creative Media & Community Trust Corporation
Media Relations:
Bill Mendel, 212-397-1030
bill@mendelcommunications.com
or
Shareholder Relations:
Steve Altebrando, 646-652-8473
shareholders@creativemediacommunity.com
(END) Dow Jones Newswires
March 09, 2026 08:30 ET (12:30 GMT)