Creative Media & Community Trust Corporation Reports 2026 Second Quarter Results

About this update from Creative Media

LOS ANGELES, August 14, 2026 --( BUSINESS WIRE )--Creative Media & Community Trust Corporation (NASDAQ: CMCT) ("we", "our", "CMCT", or the "Company") today reported operating results for the three months ended June 30, 2026. On March 26, 2026, the Company effected a 1-for-10 reverse stock split on the Company's Common Stock, par value $0.001 per share (the "Common Stock"), and on April 20, 2026, the Company effected a 1-for-10 reverse stock split on its Common Stock. All of the share and per share amounts in this release have been adjusted to give retroactive effect to the reverse stock splits (collectively, the "Reverse Stock Splits"). Second Quarter 2026 Highlights Real Estate Portfolio Financial Results Management Commentary Operating trends continue to improve across the multifamily portfolio, the Los Angeles and Austin office assets and the Company's one hotel, and we continue to evaluate the potential sale of one or more of our real estate assets. Total segment net operating income decreased (5.2)% to $9.3 million for the three months ended June 30, 2026, compared to $9.8 million for the same period in 2025. However, total segment net operating income, exclusive of loss from unconsolidated entities ("NOI, exclusive of loss from unconsolidated entities")(11)1, increased 22.2% to $12.5 million for the three months ended June 30, 2026, compared to $10.3 million for the same period in 2025, as this measure excludes the impact of real estate valuation adjustments recognized by the Company's unconsolidated entities during the period. Operating Trends Multifamily 78% of CMCT's multifamily portfolio (based on the number of units) is in the Bay Area, where the residential market is rapidly improving. CMCT's same-store multifamily occupancy was 95.3% as of June 30, 2026, representing a 1,190-basis point improvement from the second quarter of 2025. In-place rents at CMCT's Bay Area multifamily assets are approximately 12% below current asking rents, providing an opportunity to grow net operating income as new leases are increased to market. Office In the office segment, excluding the Oakland Office Building, the leased percentage was 84.4% as of June 30, 2026, representing a 470-basis point improvement from the second quarter of 2025. At 11600 Wilshire Boulevard, the Company recently completed its renovation program, which is anticipated to improve leasing activity. The Company is also seeing steady leasing interest at its Culver City and Austin creative office assets. The Company owns one office asset in Oakland, where demand continues to be challenging. The non-recourse mortgage on the Oakland Office Building matured in the third quarter of 2026. The Company elected not to invest the additional capital in the asset that would have been required to refinance the mortgage and continues to engage with the servicer on a long-term resolution. Hotel In the hotel segment, the Company has substantially completed the renovation of the public space, 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. The Company is also exploring an opportunity to convert underutilized space into eight additional rooms. Improved Financial Strength The Company has made significant progress on its plan to accelerate its focus towards premier multifamily assets, strengthen the balance sheet and improve liquidity. Since announcing this plan in September 2024, the Company has completed financings on nine assets, fully retired its recourse credit facility, sold its lending business and redeemed approximately $397.7 million of preferred stock of the Company ("Preferred Stock") in exchange for shares of Common Stock. In addition, the Company continues to evaluate the potential sale of one or more of our real estate assets. Given the Company's improved financial position, 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. Second Quarter 2026 Results Real Estate Portfolio As of June 30, 2026, 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 June 30, 2026, our 12 office properties, totaling approximately 1.3 million rentable square feet, were 71.9% occupied; our one hotel with an ancillary parking garage, which has a total of 505 rooms, had RevPAR of $180.47 for the three months ended June 30, 2026, and our five multifamily properties were 93.6% occupied. Additionally, as of June 30, 2026, we had eight development sites (two of which were being used as parking lots). Financial Results Net loss attributable to common stockholders was $(11.0) million, or $(4.03) per diluted share of Common Stock, for the three months ended June 30, 2026, compared to a net loss attributable to common stockholders of $(14.3) million, or $(1,784.88) per diluted share of Common Stock, for the same period in 2025. The decrease in net loss attributable to common stockholders was primarily driven by a decrease in redeemable preferred stock dividends of $4.3 million, partially offset by a decrease in segment net operating income of $510,000. FFO(3)2 was $(3.5) million, or $(1.28) per diluted share of Common Stock, for the three months ended June 30, 2026, compared to $(7.9) million, or $(981.63) per diluted share of Common Stock, for the same period in 2025. The increase in FFO2 was primarily attributable to a decrease in redeemable preferred stock dividends of $4.3 million, and a decrease in transaction-related costs of $786,000, partially offset by a decrease in segment net operating income of $510,000. Core FFO(4)2 was $(3.4) million, or $(1.25) per diluted share of Common Stock, for the three months ended June 30, 2026, compared to $(7.0) million, or $(870.25) per diluted share of Common Stock, for the same period in 2025. The increase in Core FFO2 is primarily attributable to the aforementioned changes in FFO2. Unlike FFO2, Core FFO2 was not impacted by the aforementioned decrease in transaction-related costs, as these are excluded from our Core FFO2 calculation. Segment Information Our reportable segments during the three months ended June 30, 2026 and 2025 consisted of three types of commercial real estate properties, namely, office, hotel and multifamily. Total segment net operating income ("NOI")(5) was $9.3 million for the three months ended June 30, 2026, compared to $9.8 million for the same period in 2025. Office Same-Store Same-store(2) office segment NOI(5) was $4.0 million for the three months ended June 30, 2026 compared to $5.5 million for the three months ended June 30, 2025, while same-store(1) office Cash NOI(6)3 was $4.1 million for the three months ended June 30, 2026, a decrease from $5.8 million in the same period in 2025. The change in same-store(2) office segment NOI(5) and same-store(1) office Cash NOI(6)3 was primarily driven by fair value adjustments to real estate at two of our unconsolidated office entities during the three months ended June 30, 2026. The change was partially offset by an increase in rental revenue and tenant reimbursement revenue, together with a decrease in real estate taxes and administrative costs at office properties in Los Angeles, California, as well as an increase in tenant reimbursement revenue at the Oakland Office Building and a decrease in administrative costs at an office property in Austin, Texas during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. At June 30, 2026, the Company's same-store(2) office portfolio was 71.9% occupied, an increase of 380 basis points year-over-year on a same-store(2) basis, and 72.3% leased, an increase of 220 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 $58.69 at June 30, 2026, compared to $60.96 at June 30, 2025. During the three months ended June 30, 2026, the Company executed 16,176 square feet of leases with terms longer than 12 months at our same-store(2) office portfolio. Total Office Segment NOI(5) was $4.0 million for the three months ended June 30, 2026 compared to $5.5 million for the three months ended June 30, 2025, driven by the aforementioned offsetting activity impacting the same-store(2) office Segment NOI(5). Hotel Hotel Segment NOI(5) was $4.6 million for the three months ended June 30, 2026, as compared to $4.2 million for the same period in 2025. The increase was attributable to increases in room revenue and food and beverage revenues, partially offset by increases in food and beverage expenses and room expenses, as a result of increased occupancy for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, in addition to an increase in general and administrative expenses compared to the prior year period. 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. Our multifamily segment NOI(5) increased to $638,000 for the three months ended June 30, 2026, compared to $189,000 for the same period in 2025. As of June 30, 2026, our Multifamily Segment was 93.6% occupied, monthly rent per occupied unit(8) was $2,560 and net monthly rent per occupied unit(9) was $2,286, compared to 83.4%, $2,458, and $2,284, respectively, as of June 30, 2025. Debt and Equity During the three months ended June 30, 2026, the Company redeemed 22,035 shares of Series A1 Preferred Stock and 39,266 shares of Series A Preferred Stock (all shares of which were redeemed in shares of Common Stock). These redemptions resulted in the collective issuance of 308,679 shares of Common Stock during the three months ended June 30, 2026. As of June 30, 2026, the non-recourse mortgage on the Company's Oakland Office Building had an outstanding balance of $97.1 million. The mortgage matured in the third quarter of 2026. The Company elected not to invest additional capital in the asset that would have been required to refinance the mortgage. The Company continues to engage with the special servicer on a long-term resolution. We are in discussions with a lender related to the Sheraton Hotel to refinance the asset, which we expect to result in an upsized loan and a reduced interest rate. Dividends We declared preferred stock dividends on our Series A, Series A1 and Series D Preferred Stock for the second quarter of 2026. The dividends were payable on July 15, 2026 to holders of record at the close of business on July 5, 2026. The dividend amounts are as follows: *The quarterly cash dividend of $0.38375 per share represents an annualized dividend rate of 6.14% (2.5% plus the federal funds rate of 3.64% 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, Core FFO attributable to common stockholders, undepreciated common book value, and NOI, exclusive of income (loss) from unconsolidated entities are provided below. Certain of these performance measures — Cash NOI, FFO attributable to common stockholders, Core FFO attributable to common stockholders, undepreciated common book value, and NOI, exclusive of income (loss) from unconsolidated entities — 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. 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, 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," "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) CMCT's ability 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 CMCT's operations and profitability, (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, (vi) CMCT's approach to artificial intelligence ("AI") and (vii) the ongoing conflict in the Middle East and related disruptions. 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.

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