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Creative Media & Community Trust Corp (CMCT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 results showed lower revenues and wider losses sequentially as hotel public-space renovations disrupted operations; total revenues were $26.23M, net loss attributable to common stockholders was $(17.74)M (EPS $(23.52)), FFO/share $(14.75), and Core FFO/share $(13.96) .
  • Multifamily segment NOI improved year over year to $0.79M (from $0.51M) on lower real estate taxes, while office leasing remained active with 80,962 sf signed in the quarter and 159,154 sf year-to-date; office portfolio 73.6% leased, 69.8% occupied .
  • Balance sheet actions advanced: the $81.0M Channel House mortgage maturity extended to January 2027 with a $6.0M paydown; and a definitive agreement to sell the SBA lending division for $44M ($31M expected net cash proceeds) was signed, pending SBA consent .
  • No quantitative guidance was provided; management emphasized 2026 cash-flow improvement drivers: return-to-office tailwinds, hotel renovation completion, and multifamily occupancy/rent gains .
  • Near-term catalysts: SBA approval and closing of the lending division sale (and CFO transition) and finalization of Sheraton Grand Sacramento public-space upgrades targeted around January 2026 .

What Went Well and What Went Wrong

What Went Well

  • Multifamily occupancy and NOI improved YoY; segment NOI rose to $0.79M, supported by lower real estate taxes and ongoing lease-up at 701 S. Hudson (occupancy ~81% vs 68% in Q2) .
  • Active office leasing: 80,962 sf signed in Q3 and ~159,000 sf YTD (+69% YoY), with the portfolio 73.6% leased; excluding the Oakland office asset, leased percentage rose to 86.6% from 81.7% at YE 2024 .
  • Debt maturity extension and liquidity progress: Channel House maturity extended to Jan 2027 (with $6M repayment); definitive agreement to sell lending division for ~$44M, expected ~$31M net proceeds to strengthen liquidity .

Selected quotes:

  • “We continue to make significant progress on our previously announced plan to accelerate our focus towards premier multifamily assets, strengthen our balance sheet and improve our liquidity.” — CEO David Thompson .
  • “We executed approximately 159,000 square feet of leases through the first 9 months of 2025, representing a 69% increase from the prior year period.” — CEO David Thompson .
  • “We are nearing completion of our renovation of the public space after previously renovating all 505 rooms, setting the property up well for 2026 and beyond.” — CEO David Thompson .

What Went Wrong

  • Revenues declined sequentially to $26.23M (Q2: $29.69M; Q1: $32.30M), and net loss/share widened vs Q2, reflecting hotel renovation disruption and higher interest expense .
  • Hotel segment NOI dropped to $0.85M (Q2: $4.16M; Q3 2024: $1.0M) as lobby/public-space renovations curtailed food & beverage operations; hotel occupancy/ADR/RevPAR fell sequentially (68.9% / $194.47 / $133.92 vs Q2: 78.4% / $212.92 / $166.83) .
  • Office same-store NOI decreased YoY to $5.0M (from $5.4M), driven by lower occupancy/rents at specific LA and SF properties and higher real estate taxes at Austin Penn Field; portfolio occupancy was 69.8% (down 240 bps YoY) .

Financial Results

MetricQ1 2025Q2 2025Q3 2025
Total Revenues ($USD Millions)$32.30 $29.69 $26.23
Net Loss Attributable to Common ($USD Millions)$(11.90) $(14.28) $(17.74)
Diluted EPS ($USD)$(8.85) $(9.53) $(13.96)
FFO per Diluted Share ($USD)$(9.42) $(10.42) $(14.75)
Core FFO per Diluted Share ($USD)$(8.85) $(9.53) $(13.96)
Total Segment NOI ($USD Millions)$11.76 $9.82 $6.97

Note: Q3 2024 reference points — Revenues $28.62M, EPS $(305.04), FFO/share $(249.30), Core FFO/share $(100.61) .

Segment breakdown (NOI):

Segment NOI ($USD Millions)Q1 2025Q2 2025Q3 2025
Office$7.10 $5.52 $5.02
Hotel$4.68 $4.16 $0.85
Multifamily$(0.62) $0.19 $0.79
Lending$0.59 $(0.05) $0.31
Total$11.76 $9.82 $6.97

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quantitative revenue/EPS guidanceFY/Q4 2025None providedNone providedMaintained (no guidance)
Lending division dispositionNear-termExploring asset salesDefinitive agreement to sell for $44M ($31M expected net proceeds) pending SBA consentAnnounced transaction
Debt maturities2026-2027Plan to refinance/extendChannel House mortgage extended to Jan 2027 with $6M repayment; working to upsize Penn Field mortgageExtended/Up-sizing
Hotel renovationThrough Jan 2026Rooms renovated; public-space project underwayPublic-space upgrades largely finalized by Jan 2026Timeline specified

Dividends: Preferred dividends declared for Q3 2025 — Series A $0.34375/sh, Series A1 $0.426875/sh, Series D $0.353125/sh .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3 2025)Trend
Balance sheet/liquidityRepaid recourse credit facility; new mortgages; revolving facility for lending division Sale of lending division (~$31M expected net proceeds), Channel House extension; targeting Penn Field upsizingImproving liquidity
Office leasing momentum30,333 sf in Q1; pipeline active; July added 61,747 sf 80,962 sf in Q3; ~159,000 sf YTD (+69% YoY); 73.6% leased; 86.6% excluding OaklandStrengthening
Multifamily executionOccupancy recovery; 701 S. Hudson conversion lease-up started; occupancy 67.6% in Q2 701 S. Hudson ~81% occupied; multifamily NOI up YoY; 1915 Park delivering in Q4Improving
Hotel renovation impactRooms completed; public-space renovations to begin Public-space renovation disrupted F&B; NOI down; completion anticipated Jan 2026Near-term headwind, medium-term tailwind
Interest expense/macroHigher rates increased interest expense Continued higher interest expense; management expects more favorable rates in 2026Mixed → potential relief
Corporate changesReverse split, financing activities CFO transition tied to lending sale; Brandon Hill to assume CFO role post-closeNeutral operationally

Management Commentary

  • Strategic focus: “Accelerate our focus towards premier multifamily assets, strengthen our balance sheet and improve our liquidity.” — CEO David Thompson .
  • Leasing: “We executed approximately 159,000 square feet of leases through the first 9 months of 2025, representing a 69% increase from the prior year period.” — CEO David Thompson .
  • Hotel positioning: “Nearing completion of our renovation of the public space… setting the property up well for 2026 and beyond.” — CEO David Thompson .
  • Multifamily potential: “Opportunity to significantly improve our net operating income as our occupancy improves, newly developed assets lease-up, we mark rents to market and benefit from cost savings initiatives.” — CEO David Thompson .

Q&A Highlights

  • The conference call ended without analyst questions; no Q&A session occurred .
  • Management reiterated strategic priorities and transaction updates during prepared remarks; no additional guidance was provided .

KPIs

Office portfolio

KPIQ1 2025Q2 2025Q3 2025
Occupied %70.2% (same-store) 68.1% (total) 69.8% (total)
Leased %71.4% (same-store) 70.1% (total) 73.6% (total)
Annualized rent/occupied SF$61.23 (same-store) $60.96 (total) $60.22 (total)
Leases executed (sf)30,333 47,859 80,962

Hotel (Sheraton Grand Sacramento)

KPIQ1 2025Q2 2025Q3 2025
Occupancy80.0% 78.4% 68.9%
ADR ($)$220.57 $212.92 $194.47
RevPAR ($)$176.47 $166.83 $133.92

Multifamily portfolio

KPIQ1 2025Q2 2025Q3 2025
Occupancy80.2% 83.4% 85.3%
Monthly rent per occupied unit ($)$2,461 $2,458 $2,508
Net monthly rent per occupied unit ($)$2,341 $2,284 $2,215

Estimates Context

  • S&P Global consensus estimates for Q3 2025 EPS and revenue were not available; coverage appears limited for CMCT’s common stock. Values retrieved from S&P Global.*
  • Actuals: Revenue $26.23M; EBITDA $4.71M (Company-reported actuals). Values retrieved from S&P Global.*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Liquidity inflection potential: expected ~$31M net cash proceeds from the lending division sale (pending SBA consent) enhances flexibility for debt management and growth initiatives .
  • Near-term hotel headwinds likely abate post-renovation; with rooms completed and public-space upgrades largely finalized by Jan 2026, expect normalization of F&B and event revenues into 2026 .
  • Leasing momentum is tangible: 159k sf YTD (+69% YoY) and 73.6% leased overall; excluding Oakland office, 86.6% leased signals improving demand in core markets (LA, Austin) .
  • Multifamily execution: occupancy and rent metrics are recovering; 701 S. Hudson lease-up to ~81% and 1915 Park delivery in Q4 point to incremental NOI contributions in 2026 .
  • Debt profile management: Channel House maturity extended to Jan 2027 with paydown; management working to upsize Penn Field mortgage after signing an investment-grade tenant lease — supportive of liquidity and capex needs .
  • No formal guidance; monitor 2026 narrative (return-to-office, Bay Area recovery, lower rates) as primary drivers for estimate revisions and sentiment shifts .
  • Corporate transition: CFO change aligned with business sale; continuity expected with incoming CFO Brandon Hill (long-time financial lead), limiting operational risk .

Additional references:

  • Q3 press release details and financial statements .
  • Q2 2025 prior-quarter trends and KPIs .
  • Q1 2025 prior-quarter trends and financing updates .
  • External announcement of buyer’s acquisition plan for CMCT’s SBA lender (Peachtree Group) .