Creative Media & Community Trust Corporation Q2 2025 Earnings Call Transcript: David Thompson, Barry Berlin, and Steve Altebrando Discuss Portfolio Performance and Future Outlook

Creative Media & Community Trust Corporation released its Q2 2025 earnings call transcript. The company's Vice President of Equity Capital Markets, Steve Altebrando, led the call, accompanied by CEO David Thompson and CFO Barry Berlin. The call was webcast and archived on the company's website. The transcript includes forward-looking statements based on the company's beliefs, assumptions, and available information.

Creative Media & Community Trust Corporation (CMCT) released its Q2 2025 earnings call transcript, providing insights into the company's performance and strategic initiatives. The call was led by Vice President of Equity Capital Markets Steve Altebrando, with CEO David Thompson and CFO Barry Berlin also participating. The transcript, available on the company's website, includes forward-looking statements based on the company's beliefs, assumptions, and available information.

Financial Performance

For the second quarter of 2025, CMCT reported sales of USD 26.95 million, a decrease of USD 4.00 million compared to USD 30.95 million in the same period last year. Revenue stood at USD 29.69 million, down from USD 34.44 million a year ago. The company recorded a net loss of USD 9 million, an increase from USD 0.796 million in the prior year. Basic and diluted loss per share from continuing operations was USD 18.94 each, up from USD 98.64 a year ago.

Over the six months ended June 30, 2025, sales were USD 56.31 million, down from USD 60.98 million a year ago. Revenue was USD 61.98 million, a decrease of USD 6.46 million from USD 68.44 million in the prior year. The company reported a net loss of USD 15.11 million, up from USD 4.53 million a year ago. Basic and diluted loss per share from continuing operations was USD 39.36 each, up from USD 224.1 a year ago.

Segment Performance

- Office Segment: Net operating income (NOI) was USD 5.5 million in Q2 2025, down from USD 8.9 million in Q2 2024. This decline was primarily due to decreased occupancy and rental revenue at the Oakland property.
- Multifamily Segment: NOI was USD 189,000 in Q2 2025, down from USD 2.3 million in Q2 2024. The decrease was driven by an unrealized loss on investment in real estate in one of their unconsolidated joint ventures and lower revenues from Oakland multifamily assets due to declines in occupancy and rents.
- Hotel Segment: NOI was USD 4.2 million in Q2 2025, down from USD 4.3 million in Q2 2024 and USD 4.7 million in Q1 2025. This decrease was due to planned renovations that impacted bookings.
- Lending Division: A loss of USD 47,000 was reported in Q2 2025, compared to USD 743,000 in Q2 2024, reflecting lower interest income due to loan payoffs, lower rates, and higher credit loss provisions.

Strategic Initiatives and Outlook

CMCT reported significant progress in securing property-level financing, retiring a USD 109 million recourse credit facility, and extending key debt maturities. The company also closed a USD 20 million revolving credit facility in June 2025. Despite ongoing renovations impacting the hotel segment, management expects these upgrades to improve the asset's competitive stance in 2026.

Looking ahead, CMCT anticipates NOI expansion based on continued improvements in leasing, the completion of property upgrades, and possible multifamily market gains. The company highlighted a nearly eleven-year lease with Boston Scientific at Penfield Creative, the portfolio’s largest new office contract. Management also disclosed ongoing evaluation of asset sales as part of a broader strategic plan and committed to updating investors on material transactions.

References

[1] https://www.marketscreener.com/news/creative-media-community-trust-corporation-reports-earnings-results-for-the-second-quarter-and-six-ce7c51d8d98bf627
[2] https://www.aol.com/cmct-q2-2025-earnings-call-163212698.html