Creative Media & Community Trust (CMCT) Q4 2024 earnings summary

Executive summary

• Management is accelerating focus on premier multifamily assets, reducing recourse credit facility balance from $169 million to $15 million, and planning further refinancing and asset sales.

• Significant progress made in repaying and retiring recourse corporate-level credit facility, reducing balance from $169 million to $15 million since Q3.

• Net loss attributable to common stockholders was $16.6 million ($1.78 per diluted share) for Q4 2024, compared to $16.3 million ($6.66 per diluted share) in Q4 2023, with the increase driven by higher depreciation and amortization.

• Completed three property-level financings and executed 175,654 square feet of new office leases with terms longer than 12 months.

• Multifamily segment saw occupancy at the Wilshire/Hudson conversion rise to 37% from 2% sequentially; Echo Park development expected to complete in Q3 2025.

Financial highlights

• Core FFO improved by $4.5 million from the prior quarter, driven by higher NOI, lower interest expense, and lower preferred dividends.

• FFO was -$8.7 million (-$0.93 per diluted share) vs. -$9.9 million (-$4.07 per share) in prior year; core FFO was -$7 million (-$0.75 per share) vs. -$8.4 million (-$3.46 per share) prior year.

• Segment NOI for Q4 2024 was $9.2 million, down from $10.8 million in Q4 2023.

• Consolidated assets at December 31, 2024 were $889.6 million; total liabilities were $562.5 million.

Outlook and guidance

• Expectation to complete one more financing in coming months to fully retire recourse credit facility.

• Management continues to target full repayment and retirement of the recourse credit facility and intends to reinvest proceeds from asset sales into multifamily properties.

• Anticipate delivery of 1915 Park multifamily development mid-year and Echo Park multifamily development in Los Angeles is expected to complete in Q3 2025.