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- **Lending Sale**: $44M sale nets $31M, reducing debt by $169M.
- **Multifamily Growth**: 701 South Hudson occupancy up 13pts to 81%, with 36 new units launching in LA.
- **Office Recovery**: 73.6% leased, 159K sq.ft. leased YTD (+69% YoY).
- **Negative FFO**: -$10.5M, but improving trends in multifamily and office.
- **Leadership Transition**: Brandon Hill to replace Barry Berlin as CFO.

**【Management Opening Remarks】**
- Steve Altebrando introduced the executives and outlined the call's purpose, emphasizing forward-looking statements and the availability of the earnings release.

**【CEO Commentary】**
- **Strategic Initiatives**: Sold lending business for $44M (net $31M after expenses) and reduced recourse debt by $169M through asset refinancings.
- **Financial Performance**: Core FFO was negative $10.5M, with NOI declines in Office (-$500K) and Hotel (-$3.35M), offset by gains in Multifamily (+$600K) and Lending (+$360K).
- **2026 Outlook**: Improved cash flow from office leasing, hotel renovations, and multifamily rent growth.
- **Leadership Transition**: Barry Berlin stepping down as CFO; Brandon Hill to assume role post-transaction.

**【Portfolio Oversight Update】**
- **Multifamily**: 701 South Hudson occupancy rose to 81% (from 68%), with plans for new units in Oakland. 1915 Park set to deliver 36 units.
- **Office**: 73.6% leased (86.6% excluding Oakland), with 159K sq.ft. leased YTD (+69% YoY).
- **Hotel**: Public space renovation nearing completion; 2026 expected to benefit from renovations and rising demand.

**【CFO Financial Commentary】**
- **Segment NOI**: $7M (vs. $7.6M prior year), driven by declines in Office (-$400K), Lending (-$374K), and Hotel (-$123K), offset by Multifamily gains (+$284K).
- **Core FFO**: Negative $10.5M (vs. -$11.5M prior year), improved by reduced preferred stock expenses and multifamily NOI growth.
- **Expense Trends**: Higher depreciation (+$922K) and interest expense (+$782K) offset NOI gains.


Creative Media & Community Trust Corporation(CMCT)-20251114-2025 Q3 Earnings call transcript

- **Leasing Boom**: 55% YoY increase in leases, driven by Los Angeles and Austin, despite Oakland challenges.
- **Balance Sheet Strength**: Retired $169M credit facility, extended debt maturities, and $20M lending credit facility.
- **2026 Growth Outlook**: Office NOI recovery, multifamily rent hikes, and hotel renovations expected to drive turnaround.
- **Current Challenges**: Negative FFO (-$7.2M Q2 2025) due to NOI declines across segments, particularly office and multifamily.


**【CEO Summary Section】**
- **Leasing Activity Surge**: Executed 140,000 sq ft of leases in 2025 (55% YoY increase), driven by Los Angeles and Austin properties. Oakland assets remain challenging, but San Francisco market recovery may trickle down.
- **Balance Sheet Progress**: Secured property-level financing for 7 assets, repaying $169M recourse credit facility. Extended debt maturities for Bay Area multifamily properties to 2026-2027. Lending division secured $20M revolving credit facility.
- **Segment Highlights**:
  - **Multifamily**: 5 assets operational, with 1915 Park (36-unit) set to lease-up Q3. 701 South Hudson occupancy rose to 68% (from 41%).
  - **Office**: 70% lease rate (80% excluding Oakland). 31,000 sq ft lease with Boston Scientific in Austin.
  - **Hotel**: Completed $11M common area renovation; Q1 NOI +15% YoY, Q2 impacted by renovations.
  - **Lending**: NOI declined due to higher reserves and loan payoffs.
- **Financials**: Core FFO negative $7.2M (Q2 2025), down from $11.8M (Q1 2025). Outlook for 2026 growth driven by office leasing, hotel renovations, and multifamily rent hikes.

**【CFO Financial Commentary】**
- **Segment NOI Declines**: Total NOI $9.8M (Q2 2025 vs. $16.2M Q2 2024). Office NOI -3.4M, Multifamily -2.1M, Hotel -0.16M, Lending -0.79M.
- **Key Drivers**:
  - **Office**: Oakland occupancy drop, unrealized gains decline.
  - **Multifamily**: Unrealized losses on joint ventures, Oakland occupancy decline.
  - **Hotel**: Food & beverage sales drop.
  - **Lending**: Loan payoffs, higher credit losses.
- **Interest Expense**: +$1.3M due to higher debt and transaction costs.
- **FFO**: Negative $7.9M (vs. -3.3M Q2 2024). Offset by $2.6M preferred stock dividend reduction.
- **Positive Developments**: Austin office refinancing, SBA credit facility ($8.25M outstanding), extended debt maturities.


Creative Media & Community Trust Corporation (CMCT) Q2 2025 Earnings Call Transcript

- **Balance Sheet Strength**: Retired $169M credit facility, 12 unencumbered assets, and $8M key money for hotel upgrades.
- **Multifamily Expansion**: 5 assets operational, 1915 Park set to launch Q3, and 701 South Hudson occupancy surging to 63%.
- **Hotel Recovery**: Q1 NOI +15% YoY, with public space renovation planned for 2025 to drive 2026 growth.
- **FFO Improvement**: -$5.4M vs. -$5.9M YoY, driven by reduced preferred dividends and cost savings.

**【CEO Strategic Update】**
- **Balance Sheet Optimization**: Fully repaid and retired $169M corporate credit facility through property-level financing, enhancing financial flexibility with 12 unencumbered assets.
- **Multifamily Growth**: Operates 5 multifamily assets (1,150 Clay, Channel House, 701 South Hudson, 1902 Park Avenue, 1915 Park) and expects 1915 Park delivery Q3. NOI growth potential via occupancy improvement and rent increases.
- **Hotel Recovery**: Sheraton Grand Sacramento NOI +15% YoY post-renovation; public space renovation planned for 2025 using $8M key money and operational proceeds.

**【Steve Altebrando: Portfolio Details】**
- **Multifamily Progress**: 
  - 701 South Hudson (LA) occupancy 63% as of Q2, up from 41% Q1; Phase 2 development potential with shared amenities.
  - 1915 Park (Echo Park) set to begin lease-up Q3 with 36 units.
  - Oakland multifamily occupancy stable but constrained by seasonal factors; limited new supply due to high construction costs.
- **Office Leasing**: 300,000 sq.ft. leased Q1, 83% occupancy excluding Oakland; focus on LA and Austin markets.
- **Hotel Momentum**: Q1 NOI +15% YoY; Q3 public space renovation to enhance 2026 positioning.

**【CFO Barry Berlin: Financial Highlights】**
- **Q1 2025 NOI**: $11.8M vs. $13.6M YoY, driven by: 
  - **Hotel**: +$622K (15% YoY growth)
  - **Office**: -$764K (Oakland tenant partial termination)
  - **Multifamily**: -$1.5M (seasonal occupancy decline)
  - **Lending**: -$199K (loan payoffs/lower rates)
- **FFO**: -$5.4M (-$9.42/share) vs. -$5.9M (-$60.42/share) YoY, improved by $2.3M preferred dividend reduction and $664K transaction cost savings.
- **Refinancing**: Austin office property refinanced in April; 1-for-25 reverse stock split completed April 15.

Creative Media & Community Trust (CMCT)-9 May 25-2025 Q1 Earnings call transcript

- **Balance Sheet Cleanup**: Credit facility reduced to $15M; final transaction to eliminate corporate debt entirely.
- **Multifamily Momentum**: 40% leased on 68-unit conversion; 70% leased on 701 South Hudson.
- **Hotel Recovery**: $1.1M NOI increase despite renovation; public space upgrades funded by Marriott.
- **Share Price Action**: 1:25 reverse split proposed to combat dilution from preferred redemptions.

**【CEO Strategic Initiatives】**
- **Balance Sheet Optimization**: Reduced credit facility balance from $169M to $15M via property-level financing; final transaction expected to fully retire facility. Remaining debt: $27M junior subordinated notes with no covenants.
- **Multifamily Growth**: Converted 4750 Wilshire into 68 residential units (40% leased vs. 10% Q3); 701 South Hudson 70% leased. New 36-unit development in Echo Park expected Q2 delivery.
- **Q4 Financials**: Core FFO improved $4.5M (vs. Q3) driven by higher NOI (+$1.6M), lower interest, and reduced preferred dividends. Hotel segment NOI up $1.1M.

**【Steve Altebrando - Financing Details】**
- **Sheraton Sacramento**: $92.2M mortgage refinanced; $21M room renovation complete; $8M key money from Marriott for public space upgrades.
- **Wilshire Portfolio**: $105M mortgage closed; $1.2M in lease-up costs reserved.
- **Austin Office**: $5M mortgage closed for tenant improvements; final Austin property financing in process.

**【CFO Barry Berlin - Financial Highlights】**
- **Segment NOI Declines**: 
  - Office: $5.2M (vs. $5.4M prior year) due to Oakland tenant termination.
  - Multifamily: $0.855M (vs. $1.1M) from joint venture unrealized loss.
  - Hotel: $2.1M (vs. $2.9M) from renovation-related occupancy drop.
  - Lending: $0.98M (vs. $1.3M) from lower originations.
- **FFO Metrics**: Core FFO (-$7M vs. -$8.4M prior year) improved due to $1.3M preferred dividend reduction. Reverse stock split proposed to address share price dilution.


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