Creative Media & Community Trust Corp (CMCT) Q2 2025 Profit Highlights: Leasing …

Leasing activity: Applied to approximately 140,000 square feet leasing by July 2025, an increase of 55% compared to the previous year.
Core ffo: Negative $ 7.2 million for the second quarter of 2025
Net Operational Income (NOI): It decreases to $ 9.8 million from $ 11.8 million in the previous quarter.
Office segment Noi: Decreased by $ 1.6 million from the previous quarter.
Hotel Segment Noi: $ 4.2 million for the quarter, which is less than $ 4.7 million in Q1.
Multifamile segment Noi: Increased by approximately $ 800,000 from the previous quarter.
Loan segment noi: It decreases by approximately $ 640,000.
Interest Costs: Increased by $ 1.3 million.
Ffo: Negative $ 7.9 million or a negative $ 10.42 per diluted share.
Debt matures: Expanded for multi -family properties in the bay area.
Back in stock: 1-for-25 Split Split of Shares, completed on April 15, 2025.

Date of Issue: August 13, 2025

For the full copy of the winning call, please see the full copy of the profit call.

Creative Media & Community Trust Corp (NASDAQ: CMCT) performed approximately 140,000 square feet leasing by the end of July 2025, which is an increase of 55% compared to the previous year.
The company successfully provided funding at a property level, which allows it to pay and retire the $ 169 million credit facility.
CMCT extended the duty on its multi -family property at 1150 clay in the bay area until the summer of 2026 and changed another multi -family property, Channel House, pushed its maturity by January 2027.
The company has completed the renovation of all 500 rooms in its hotel, Sheridan Grand Sacramento, which led to a sharp increase in the year through Q1 NOI.
CMCT’s multi -family segment has noted an increase in NOI by approximately $ 800,000 from the previous quarter, mainly due to reduced unrealized losses and lower costs in consolidated properties.

Core FFO was a negative $ 7.2 million, and the total net operating income reduced to $ 9.8 million from $ 11.8 million in the previous quarter.
The NOI office segment decreased by $ 1.6 million from the previous quarter due to real estate tax breaks, the revenue time to recover tenants and job vacancies.
Hotel Noi has reduced to $ 4.2 million a quarter compared to $ 4.7 million in Q1, influenced by planned repairs.
The NOI multi -family segment was $ 189,000 over the Q2 2025 compared to $ 2.3 million in the previous year, led by unrealized real estate investment and reduced revenue.
The NOI loan department decreased to a loss of $ 47,000 compared to NOI $ 743,000 in the previous year, mainly due to reduced interest income and increased credit losses.

Q: Can you provide an update to leasing activity and its impact on your office segment? A: David Thompson, CEO: We have observed a significant increase in leasing activity, especially in our properties in Los Angeles and Austin. In 2025, by the end of July, we performed approximately 140,000 square feet leasing, which was an increase of 55% compared to the previous year. This leg is expected to have a positive effect on our office segment, as the new leasing activity is captured in our net operational income.

Q: What steps are taken to improve the company’s financial flexibility? A: David Thompson, CEO: We have made significant progress in improving our balance and liquidity. We have provided funding at the property level for several assets, which allowed us to pay and retire our credit facility. In addition, we have expanded the debt matches on our multi -family properties in the bay area, improving our financial flexibility.

Q: How is a multi -family segment implemented and what are the future plans for this segment? A: Stephen Altebrando, Vice President of Capital Markets: We are focused on the expansion of our multi -family portfolio. We have four operating assets and a fifth park since 1915 in Los Angeles, is about to deliver this quarter. We see significant opportunities for increasing net operational income through higher rental prices, improved employment and cost reduction.

Q: What is the status of hotel renovation and how will they affect the future performance? A: David Thompson, CEO: We have completed the renovation of all rooms for 500 plus in our Sacramento Hotel, which has led to a sharp increase in the year of Q1 NOI. The current repairs of the common parts of the hotel are expected to position the asset for 2026 and after.

Q: Can you develop the financial results for the second quarter of 2025? A: Barry Berlin, CFO: Our main FFO was a negative $ 7.2 million, and the total net operating income reduced to $ 9.8 million from $ 11.8 million in the previous quarter. The decline is mainly due to the lower NOI office and the planned repairs, which are reflected in our hotel segment. However, we envisage the growth of NOI in 2026, led by improved leasing activity and completed repairs.

For the full copy of the winning call, please see the full copy of the profit call.

This article first appeared on Gurufocus.

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