Financial Data and Key Metrics Changes - Core FFO improved by approximately $4.5 million from the prior quarter due to higher NOI, lower interest expense, and lower preferred dividends [11] - Net operating income (NOI) increased by $1.6 million from the third quarter, primarily driven by the Hotel Segment which increased by $1.1 million [11] - FFO was negative $8.7 million or negative $0.93 per diluted share compared to negative $9.9 million or negative $4.07 per diluted share in the prior year [27] - Core FFO was negative $7 million or negative $0.75 per diluted share compared to negative $8.4 million or negative $3.46 per diluted share in the prior year [27] Business Line Data and Key Metrics Changes - Hotel operations experienced a decrease in NOI of approximately $828,000, resulting in $2.1 million for Q4 2024 compared to $2.9 million in the prior year [26] - Multifamily segment reported NOI of approximately $855,000 during Q4 2024, down from approximately $1.1 million in the prior year [25] - Office segment NOI for Q4 2024 was $5.2 million versus $5.4 million during Q4 2023, driven by a decrease in rental revenue at the Oakland property [24] Market Data and Key Metrics Changes - Total occupancy in the multifamily segment declined about 220 basis points from the prior quarter but increased 240 basis points year-over-year [17] - Office lease percentage was 71% at the end of Q4, and 82% when excluding one office building in Oakland [20] Company Strategy and Development Direction - Company remains focused on improving balance sheet and liquidity, growing multifamily portfolio, and reducing traditional office assets [7] - Significant progress made in reducing corporate debt, with the balance on the credit facility down to $15 million from $169 million [9] - Company is evaluating asset sales to strengthen balance sheet and improve liquidity [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in financing office properties but expressed optimism about progress made in refinancing and reducing debt [9] - Leasing activity has been steadily picking up, particularly in L.A. and Austin assets, despite work-from-home trends impacting occupancy [21] Other Important Information - Company is seeking shareholder approval for a 1 for 25 reverse stock split to improve stock price following recent preferred common redemptions [28] - Renovation projects are underway, including a $21 million room renovation at the Sheraton Grand Hotel [14] Q&A Session Summary - No questions were raised during the Q&A session [29]

Financial Performance - The net loss attributable to common stockholders for Q4 2024 was $16.6 million, or $1.78 per diluted share, compared to a net loss of $16.3 million, or $6.66 per diluted share in Q4 2023[5]. - Total revenues for Q4 2024 were $27,459, a decrease of 6.8% compared to $29,468 in Q4 2023[31]. - Net loss attributable to common stockholders for Q4 2024 was $16,606, compared to a loss of $16,263 in Q4 2023, representing an increase in loss of 2.1%[35]. - Funds from Operations (FFO) attributable to common stockholders for Q4 2024 was $(8,656), a slight improvement from $(9,939) in Q4 2023[35]. - Core Funds from Operations (Core FFO) attributable to common stockholders for Q4 2024 was $(6,953), compared to $(8,445) in Q4 2023, indicating a 17.6% improvement[39]. - Basic net loss per share for Q4 2024 was $(1.78), compared to $(6.66) in Q4 2023, showing a significant reduction in loss per share[31]. - The company reported a net loss attributable to the Company of $10,265,000 for Q4 2024, compared to a net loss of $8,402,000 in Q4 2023, indicating an increase in losses of 22.1%[43][44]. Operational Metrics - The same-store office portfolio was 71.0% leased, with an annualized rent per occupied square foot of $60.48, up from $57.28 in the previous year[7]. - The multifamily segment NOI decreased to $855,000 for Q4 2024, compared to $1.1 million in Q4 2023, with an occupancy rate of 81.7%[11]. - Hotel segment NOI was $2.1 million for Q4 2024, down from $2.9 million in Q4 2023, with occupancy dropping to 54.5% from 69.9%[9]. - The company executed 175,654 square feet of leases with terms longer than 12 months in the same-store office portfolio during Q4 2024[7]. - Total segment net operating income (NOI) was $9.2 million for Q4 2024, down from $10.8 million in Q4 2023[7]. - Cash net operating income for the three months ended December 31, 2024, was $10,166,000, a decrease of 21.3% compared to $12,915,000 for the same period in 2023[43][44]. - Segment net operating income for the same period in 2024 was $9,158,000, down from $10,764,000 in 2023, reflecting a decline of 14.9%[43][44]. - Cash NOI for the real estate segments was $6,234,000 in Q4 2024, down from $6,815,000 in Q4 2023, a decrease of 8.5%[43][44]. - The total cash NOI for the lending segment was $980,000 in Q4 2024, compared to $1,311,000 in Q4 2023, reflecting a decline of 25.3%[43][44]. Financial Position - Total assets decreased from $891,200,000 as of December 31, 2023, to $889,555,000 as of December 31, 2024, reflecting a decline of approximately 0.2%[30]. - Investments in real estate increased from $704,762,000 in 2023 to $709,194,000 in 2024, representing a growth of about 0.6%[30]. - Total liabilities rose from $514,431,000 in 2023 to $562,492,000 in 2024, indicating an increase of approximately 9.3%[30]. - Cash and cash equivalents increased from $19,290,000 in 2023 to $20,262,000 in 2024, a rise of about 5.0%[30]. - The company reported a significant increase in redeemable preferred stock from $0 in 2023 to $20,799,000 in 2024[30]. - Total stockholders' equity decreased from $374,403,000 in 2023 to $304,516,000 in 2024, a decline of approximately 18.6%[30]. Financing Activities - The company completed three property-level financings, reducing the balance on its recourse credit facility to $15 million from $169 million[3]. - The company closed a $105.0 million fixed-rate mortgage on three Los Angeles office properties and a variable-rate mortgage loan on its hotel property with an initial advance of $84.3 million[14]. - The company reported a loss on early extinguishment of debt of $1,416 for the year ended December 31, 2024[31]. - Redeemable preferred stock dividends declared for the year ended December 31, 2024 were $29,686, compared to $25,731 in 2023, reflecting an increase of 15.5%[31]. Future Outlook - The company plans to complete a 36-unit multifamily development in Echo Park, Los Angeles, expected to be completed in Q3 2025[3]. - The company plans to maintain or increase occupancy levels and raise in-place rents to existing market rents as part of its future growth strategy[27]. - Forward-looking statements indicate potential risks including fluctuations in market rents and the impact of inflation and interest rates on operations[27]. Expense Management - Total expenses for Q4 2024 were $37,287, an increase of 1.9% from $36,601 in Q4 2023[31]. - General and administrative expenses increased to $675,000 in Q4 2024 from $1,443,000 in Q4 2023, a reduction of 53.2%[43][44]. - The company’s transaction-related costs were $31,000 in Q4 2024, compared to $1,023,000 in Q4 2023, indicating a significant reduction of 96.9%[43][44]. - Interest expense for the three months ended December 31, 2024, was $8,356,000, compared to $9,465,000 in the same period of 2023, showing a decrease of 11.7%[43][44]. Performance Metrics - Core FFO and FFO should not be used as the sole measure of performance, as they exclude depreciation and amortization, which can materially impact operating results[21]. - The company emphasizes that Segment NOI and Cash NOI are not measures of operating results as per GAAP, but are useful for reflecting revenues and expenses associated with property operations[24].

Real Estate Portfolio - As of September 30, 2024, the real estate portfolio consisted of 27 assets, with 13 office properties totaling approximately 1.3 million rentable square feet at 72.2% occupancy[235] - The three multifamily properties achieved a 92.0% occupancy rate as of September 30, 2024[235] - The company has nine development sites, three of which are currently utilized as parking lots[235] - The strategy focuses on premier multifamily properties and creative office assets in vibrant metropolitan communities, targeting areas with high barriers to entry and positive population trends[236] Financial Performance - Total revenues for the three months ended September 30, 2024, were $28.6 million, a 1.8% increase from $28.1 million in the same period last year[259] - Total revenues for the nine months ended September 30, 2024, were $97.1 million, an increase of 8.1% compared to $89.8 million for the same period in 2023[286] - The net loss for the three months ended September 30, 2024, was $10.6 million, a significant reduction from a net loss of $16.6 million in the same period last year[259] - Net loss for the nine months ended September 30, 2024, was $15.3 million, a significant improvement from a net loss of $42.6 million in the same period of 2023, reflecting a decrease of $27.3 million[286] Revenue Breakdown - Office revenue decreased to $13.8 million for the three months ended September 30, 2024, down 1.6% from $14.0 million in the same period of 2023[267] - Hotel revenue decreased to $7.1 million for the three months ended September 30, 2024, a decline of 10.1% from $7.9 million in the same period of 2023, primarily due to lower occupancy[268] - Multifamily revenue increased to $4.8 million for the three months ended September 30, 2024, up 43.3% from $3.3 million in the same period of 2023, driven by higher occupancy and rent[270] - Office revenue increased to $42.5 million for the nine months ended September 30, 2024, a 2.5% increase from $41.5 million for the same period in 2023[294] - Multifamily revenue rose to $15.0 million for the nine months ended September 30, 2024, representing a 73.4% increase from $8.6 million for the same period in 2023[297] Occupancy and Rent Trends - As of September 30, 2024, occupancy rates for the office portfolio decreased to 72.2% from 82.6% in the previous year, while annualized rent per occupied square foot increased to $60.31 from $56.93[245] - Multifamily occupancy improved to 92.0% as of September 30, 2024, up from 84.1% in the previous year, with monthly rent per occupied unit at $2,555 compared to $2,869[251] - Hotel occupancy decreased to 71.4% for the nine months ended September 30, 2024, down from 76.9% in the previous year, with ADR increasing to $203.98 from $193.84[252] Expenses and Losses - Total expenses decreased by 16.4% to $37.9 million for the three months ended September 30, 2024, compared to $45.4 million in the previous year[259] - Office expenses increased to $7.6 million for the three months ended September 30, 2024, a rise of 19.3% from $6.3 million in the same period of 2023[274] - Multifamily expenses increased to $10.4 million for the nine months ended September 30, 2024, compared to $8.0 million for the same period in 2023, primarily due to expenses from newly acquired properties[304] Financing and Capital Structure - Financing strategies may include offerings of common stock, preferred stock, credit facilities, and cash flows from operations[243] - The company redeemed 2,589,606 shares of Series A1 Preferred Stock and 2,167,156 shares of Series A Preferred Stock in September 2024[328] - The aggregate commitments under the 2022 Credit Facility were reduced from $206.2 million to $169.3 million following the Third Modification Agreement[325] - The company refinanced its 2018 revolving credit facility with a new 2022 Credit Facility, allowing borrowing up to $150.0 million, with $169.3 million outstanding as of September 30, 2024[335] Cash Flow and Investments - Net cash provided by operating activities decreased by $0.9 million for the nine months ended September 30, 2024, compared to the same period in 2023[316] - Net cash used in investing activities decreased by $68.2 million for the nine months ended September 30, 2024, compared to the same period in 2023, primarily due to a decrease in real estate acquisitions of $96.7 million[317] - Net cash used in financing activities decreased by $61.3 million for the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to net proceeds from the 2022 Credit Facility and mortgages of $7.3 million[318] Legal and Regulatory Matters - The company is not currently involved in any material pending or threatened legal proceedings that could materially affect its financial condition[360]

Financial Performance - Net loss attributable to common stockholders was $34.8 million, or $1.22 per diluted share for Q3 2024, compared to a net loss of $22.9 million, or $0.94 per diluted share in Q3 2023[6]. - Funds from operations (FFO) attributable to common stockholders was $(28.4) million, or $(1.00) per diluted share for Q3 2024, compared to $(7.5) million, or $(0.31) per diluted share in Q3 2023[7]. - Core FFO attributable to common stockholders was $(11.5) million, or $(0.40) per diluted share for Q3 2024, compared to $(7.1) million, or $(0.29) per diluted share in Q3 2023[7]. - Total revenues for the three months ended September 30, 2024, were $28,616 million, a 1.8% increase from $28,118 million in the same period of 2023[34]. - Rental and other property income increased to $18,150 million, up 6.4% from $17,061 million year-over-year[34]. - Total expenses decreased to $37,938 million, down 16.5% from $45,400 million in the same quarter of 2023[34]. - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(34,775) million, compared to $(22,934) million in the same period of 2023[38]. - Funds from Operations (FFO) attributable to common stockholders for the three months ended September 30, 2024, was $(28,420) million, compared to $(7,478) million in 2023[38]. - Basic FFO per share for the three months ended September 30, 2024, was $(1.00), compared to $(0.31) in the same period of 2023[38]. - The company reported a net loss before provision for income taxes of $(10,561) million for the three months ended September 30, 2024, compared to $(16,093) million in 2023[34]. - The company experienced a loss from unconsolidated entities of $(1,239) million for the three months ended September 30, 2024, compared to a gain of $1,189 million in the same period of 2023[34]. - Total net loss attributable to the Company for the three months ended September 30, 2024, was $(10,384) thousand, compared to $(15,773) thousand for the same period in 2023, showing a 34% improvement[48]. Operational Metrics - Same-store office portfolio was 72.9% leased as of September 30, 2024, a decrease of 1,100 basis points year-over-year[8]. - Multifamily segment NOI increased to $508,000 for Q3 2024, compared to $(391,000) for the same period in 2023, with 92.0% occupancy[12]. - Hotel segment NOI was $973,000 for Q3 2024, down from $1.9 million in Q3 2023, primarily due to decreased occupancy from ongoing renovations[10]. - Total segment net operating income (NOI) was $7.6 million for Q3 2024, compared to $11.2 million for the same period in 2023[8]. - Cash net operating income for the total office segment for the three months ended September 30, 2024, was $6,415 thousand, down from $9,889 thousand in the same period of 2023, reflecting a 35% decrease[46]. - Segment net operating income for the total office segment for the three months ended September 30, 2024, was $5,419 thousand, compared to $9,318 thousand for the same period in 2023, a decline of 42%[46]. Asset and Liability Management - Total assets decreased from $891,200,000 on December 31, 2023, to $868,049,000 on September 30, 2024, representing a decline of approximately 2.6%[31]. - Cash and cash equivalents decreased from $19,290,000 to $18,454,000, a reduction of about 4.3%[31]. - Total liabilities increased from $514,431,000 to $524,389,000, reflecting a rise of approximately 1.8%[31]. - The company reported a decrease in investments in real estate, net, from $704,762,000 to $702,845,000, a decline of about 0.3%[31]. - Total stockholders' equity decreased from $374,403,000 to $320,961,000, a decline of approximately 14.3%[32]. - The Series A1 cumulative redeemable preferred stock saw an increase in shares issued and outstanding from 8,553,591 to 11,327,248[31]. Future Outlook and Strategy - The company plans to invest proceeds from refinancing and potential asset sales into premier multifamily properties[4]. - The company completed renovations of nearly 300 hotel rooms, with plans to finalize all 503 rooms by year-end 2024[4]. - The company anticipates future growth and plans to raise in-place rents to align with existing market rents[29]. - The company is focused on maintaining or increasing occupancy levels amidst fluctuations in market rents and inflationary pressures[29]. - The company plans to continue focusing on market expansion and new product development to enhance future performance[36]. - Forward-looking statements indicate potential risks including economic conditions and interest rate fluctuations that may impact profitability[29]. Shareholder Information - Weighted average shares of common stock outstanding increased to 28,493 million from 24,422 million year-over-year[38]. - The basic weighted average shares of common stock outstanding for the three months ended September 30, 2024, increased to 28,493 thousand from 24,422 thousand in the same period of 2023, a growth of 17%[42]. - Redeemable preferred stock redemptions for the three months ended September 30, 2024, amounted to $16,098 thousand, significantly higher than $352 thousand in the same period of 2023[42]. - Interest expense for the three months ended September 30, 2024, was $(8,830) thousand, compared to $(8,556) thousand for the same period in 2023, indicating a slight increase of 3%[46]. - The company reported transaction-related costs of $526 thousand for the three months ended September 30, 2024, compared to $38 thousand for the same period in 2023, marking a significant increase[46]. - Depreciation and amortization for the three months ended September 30, 2024, was $6,423 thousand, down from $16,082 thousand in the same period of 2023, a reduction of 60%[46].

Financial Data and Key Metrics - Net operating income (NOI) improved across all real estate operating segments (office, multifamily, and hotel) compared to Q1 2024 [4] - Same-store office segment NOI increased 9% YoY to $7.6 million, driven by an unrealized gain in Q2 2024 compared to an unrealized loss in Q2 2023 [5] - Hotel segment NOI increased 5% YoY to $4.3 million, primarily due to improved average daily room rates [6] - Multifamily segment NOI increased to $2.3 million in Q2 2024 from $900,000 in Q1 2024, driven by occupancy gains (92.5% at the end of Q2 2024 vs. 79.3% at the end of 2023) [6] - Lending segment NOI increased 42% YoY to $743,000, primarily due to decreased interest expense from principal repayments on SBA 7(a) loan-backed notes [7] - FFO was negative $0.14 per diluted share in Q2 2024, compared to negative $0.19 in the prior-year period, driven by a $4.2 million increase in segment NOI [16] Business Line Data and Key Metrics - Office segment lease percentage remained stable at 83.5% in Q2 2024, with 52,000 square feet of office leases executed [6] - Multifamily occupancy improved to 92.5% at the end of Q2 2024, up from 79.3% at the end of 2023, with monthly rent per occupied unit at $1,806, a 4% YoY increase [6][10] - Hotel segment benefited from increased revenue per available room, driven by higher average daily rates [14] - Lending segment saw a decrease in interest expense due to principal repayments on SBA 7(a) loan-backed notes [14] Market Data and Key Metrics - Oakland multifamily rental rates remain below expectations due to high supply levels added between 2018 and 2022 [11] - East Bay multifamily development pipeline remains below the average for the top 25 US markets [11] - LA multifamily projects are progressing ahead of schedule, with 4750 Wilshire nearing completion and 1915 Park expected to deliver by mid-2025 [8][9] Company Strategy and Industry Competition - The company is focused on strengthening its balance sheet and improving cash flow through asset sales and debt reduction [4] - Development and redevelopment pipeline progress includes two multifamily projects in LA and a hotel room renovation in Sacramento [5][8] - The company aims to invest in premier multifamily and creative office assets in high barrier-to-entry markets [9] - The company expects to benefit from lower SOFR on floating rate debt and lower preferred dividends as the Fed funds rate declines [4] Management Commentary on Operating Environment and Future Outlook - Elevated short-term interest rates and challenges in the office market continue to impact cash flow [4] - The company anticipates a decline in office occupancy in Q3 2024 due to a large tenant returning 130,000 square feet at One Kaiser Plaza in Oakland [6] - Management expects minimal new multifamily supply in Oakland due to low rental rates making new construction uneconomical [11] - The company is optimistic about the multifamily market, with increased demand and lease velocity, but acknowledges challenges in rental rate growth [19][20] Other Important Information - The company raised an additional $8.3 million in net proceeds from the sale of Series A1 preferred stock in June 2024 [16] - Non-segment expenses decreased significantly due to the full amortization of acquired in-place lease intangible assets for Oakland assets in 2023 [15] Q&A Session Summary Question: Impact of tenant space giveback at Lake Merritt on Q3 leasing - The company is negotiating lease extensions with Kaiser, the largest tenant, for space expiring in 2025 and 2027, but the 130,000 square feet returned in July 2024 will not be part of future lease negotiations [18] Question: Multifamily demand trends in the current market - The company has seen a pickup in demand, with occupancy improving to the low 90s, but rental rates remain a challenge due to high concessions [19] Question: Conditions needed to reduce concessions and push rental rates - The company believes occupancy needs to reach the mid-90s range before it can reduce concessions and push rental rates more aggressively [20] Question: Impact of recent interest rate trends on refinancing outlook - The company is considering opportunities to swap floating-rate debt into longer-term fixed-rate debt as rates decline [21] Question: Progress on non-core asset dispositions - The company is still evaluating non-core assets, including the hotel and lending divisions, for potential dispositions to reduce recourse and overall debt [22] Question: Use of proceeds from asset sales - The primary use of proceeds from asset sales would be to pay down debt, with potential future acquisitions once the market stabilizes [23]

Real Estate Portfolio - As of June 30, 2024, the real estate portfolio consisted of 27 assets, with 82.5% occupancy in office properties totaling approximately 1.3 million rentable square feet[200]. - The three multifamily properties achieved a 92.5% occupancy rate as of June 30, 2024[200]. - Occupancy rate for the multifamily portfolio as of June 30, 2024, was 92.5%, up from 83.9% in June 2023[213]. - The hotel occupancy rate in Sacramento, California, was 79.5% for the six months ended June 30, 2024, slightly down from 80.9% in the same period of 2023[214]. Revenue and Financial Performance - Total revenues for the three months ended June 30, 2024, were $34.4 million, a 5.1% increase from $32.8 million in the same period of 2023[221]. - Total revenues for the six months ended June 30, 2024, were $68.4 million, an increase of 11.0% from $61.7 million for the same period in 2023[240]. - Multifamily revenue rose significantly by 33.6% to $5.4 million for the three months ended June 30, 2024, compared to $4.1 million in the prior year, attributed to increased occupancy and rent[232]. - Hotel revenue increased to $12.2 million for the three months ended June 30, 2024, up 4.2% from $11.7 million for the same period in 2023, driven by higher average daily rates[231]. - Office revenue for the three months ended June 30, 2024, was $14.1 million, a slight increase of 0.9% from $13.975 million in the same period of 2023[231]. - Net loss for the three months ended June 30, 2024, was $852,000, significantly reduced from a net loss of $18.4 million in the same period of 2023, marking a decrease of $17.5 million[222]. - Net loss for the six months ended June 30, 2024, was $4.8 million, a significant improvement of 81.7% compared to a net loss of $25.9 million for the same period in 2023[240]. Expenses and Cost Management - Total expenses decreased by 27.8% to $36.1 million for the three months ended June 30, 2024, compared to $50.1 million in the prior year[221]. - Total expenses for the six months ended June 30, 2024, decreased by 16.7% to $73.4 million from $88.2 million in the prior year[240]. - Depreciation and amortization expense decreased to $6.5 million for the three months ended June 30, 2024, from $20.5 million in the prior year, primarily due to amortization of acquired lease intangible assets[239]. - Depreciation and amortization expense decreased by 56.8% to $12.9 million for the six months ended June 30, 2024, compared to $30.0 million for the same period in 2023[257]. Asset Management and Strategy - The company plans to dispose of assets that do not fit its strategy over time, evaluating each asset regularly for potential better returns[203]. - The company aims to leverage investor relationships to execute its investment pipeline using an asset-light approach, reducing capital outlay and risk[202]. - CIM Group targets acquisitions in "Qualified Communities" characterized by high barriers to entry and positive population trends, enhancing asset value[204]. Financing and Debt - The company intends to finance future activities through various methods, including equity offerings, credit facilities, and cash flows from operations[207]. - The 2022 Credit Facility includes a $56.2 million term loan and a revolver allowing the Company to borrow up to $150.0 million, maturing in December 2025[264]. - As of June 30, 2024, outstanding commitments to fund loans were $19.6 million, with government guarantees of 75%[265]. - The Company has mortgage loan agreements with outstanding balances of $250.7 million as of June 30, 2024[270]. - As of June 30, 2024, 51.3% of the company's debt was fixed rate borrowings, totaling $250.7 million[286]. Investment and Capital Structure - The company issued 4,603,287 Series A Preferred Stock and Series A Preferred Warrants, receiving aggregate net proceeds of $105.2 million[278]. - The company issued 11,492,002 shares of Series A1 Preferred Stock, 8,251,657 shares of Series A Preferred Stock, and 56,857 shares of Series D Preferred Stock, raising aggregate net proceeds of $446.9 million[280]. - Holders of Series A1 Preferred Stock are entitled to cumulative cash dividends at an annual rate of 6.0%, equivalent to $0.3750 per share per quarter[281]. - As of June 30, 2024, there were 988,794 Series A Preferred Warrants outstanding, allowing the purchase of 250,777 shares of Common Stock[279]. Operational Metrics - The hotel property had a RevPAR of $167.57 for the six months ended June 30, 2024[200]. - Average Daily Rate (ADR) for the hotel was $210.80 for the six months ended June 30, 2024, compared to $201.59 in the prior year[214]. - Monthly rent per occupied unit for the multifamily portfolio was $2,647 as of June 30, 2024, compared to $2,914 in June 2023[213]. - Interest expense increased to $8.3 million for the three months ended June 30, 2024, compared to $7.4 million in the same period of 2023, due to higher outstanding principal balances[237]. - Lending revenue decreased by 13.5% to $2.6 million for the three months ended June 30, 2024, down from $3.0 million in the same period of 2023, due to lower loan sale volume[232].

分组1 - Creative Media & Community Trust (CMCT) reported a quarterly loss of $0.09 per share, better than the Zacks Consensus Estimate of a loss of $0.20, and an improvement from a loss of $0.17 per share a year ago, resulting in a 55% FFO surprise [1] - The company posted revenues of $34.44 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 3.98%, and showing an increase from $32.76 million in the same quarter last year [2] - CMCT shares have declined approximately 40.9% year-to-date, contrasting with the S&P 500's gain of 9% [3] 分组2 - The current consensus FFO estimate for the upcoming quarter is -$0.28 on revenues of $29.05 million, and for the current fiscal year, it is -$0.93 on revenues of $125.63 million [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company's same-store office NOI increased by 9% year-over-year to $7.4 million, primarily due to improved NOI at the Beverly Hills property [18] - Overall segment NOI for Q1 2024 was $13.6 million, compared to $13 million in the prior year, driven by increases in the office and multifamily segments [27] - FFO was negative $0.26 per diluted share compared to negative $0.21 in the prior year, with core FFO at negative $0.19 per diluted share compared to a positive $0.06 [34] Business Line Data and Key Metrics Changes - The multifamily segment generated $900,000 of NOI in Q1 2024, with occupancy improving to 86.2% from 79.3% at the end of 2023 [22][23] - The office segment's NOI increased to $7.9 million from $6.8 million in the prior year, driven by higher rental revenues due to increased occupancy [9] - The hotel segment's NOI remained consistent at $4.1 million for both Q1 2024 and Q1 2023 [39] Market Data and Key Metrics Changes - In Oakland, the multifamily segment's occupancy improved significantly, but rental rates at key properties were below expectations due to excess supply in the market [22][37] - The office lease percentage remained stable at 84%, with approximately 37,000 square feet of office leases executed in the quarter [19][26] - The market in Los Angeles is currently stronger than Oakland, with better operating fundamentals observed [41] Company Strategy and Development Direction - The company aims to achieve a balance between creative office and multifamily assets, with ongoing development of two new multifamily properties in Los Angeles [4] - The company is evaluating ways to strengthen its balance sheet and improve cash flow, including potential asset sales and debt reduction [16][36] - Future development projects are being approached cautiously due to current market conditions, with a focus on achieving targeted returns [40][51] Management's Comments on Operating Environment and Future Outlook - Management noted that cash flow continues to be impacted by elevated short-term interest rates, but they expect to benefit from lower rates over time [16] - The company anticipates minimal new supply in the multifamily market, particularly in the East Bay, which is below average for top U.S. markets [25] - Management expressed optimism about the office segment's NOI outlook, citing improvements in occupancy and leasing activity [56] Other Important Information - The company raised $19.1 million in net proceeds from the sale of Series A1 preferred stock during the quarter [35] - A significant decrease in depreciation and amortization expense was noted, primarily due to the amortization of acquired lease intangible assets [31] Q&A Session Summary Question: What is the current deal flow regarding potential asset sales? - Management indicated that they are evaluating asset sales to improve cash flow and position themselves for future real estate recovery opportunities [61][62] Question: How does the company view its portfolio of assets in the current market? - The company believes its portfolio is desirable and that assets will still trade at low cap rates, despite the current environment of higher short-term interest rates [64] Question: What is the expected impact on revenue from the Sacramento hotel asset during redevelopment? - Management expects limited disruption to NOI during the renovation, as they plan to manage the process floor by floor [57]

Financial Performance - Total revenues for the three months ended March 31, 2024, were $33.998 million, an increase of 17.6% compared to $28.912 million for the same period in 2023[195]. - Net loss for the three months ended March 31, 2024, was $3.905 million, a 48.5% improvement from a net loss of $7.576 million in the same period in 2023[195]. - Funds from Operations (FFO) attributable to common stockholders was $(5.921) million for the three months ended March 31, 2024, a decrease of $1.1 million compared to $(4.794) million for the same period in 2023[201]. - Office revenue increased by 8.3% to $14.611 million for the three months ended March 31, 2024, compared to $13.487 million for the same period in 2023[203]. - Hotel revenue rose to $11.854 million, a 3.2% increase from $11.492 million for the three months ended March 31, 2023[203]. - Multifamily revenue surged to $4.749 million for the three months ended March 31, 2024, compared to $1.223 million for the same period in 2023, reflecting a significant increase due to new property acquisitions[203]. - Lending revenue was $2.640 million for the three months ended March 31, 2024, a slight decrease from $2.710 million for the same period in 2023[203]. Occupancy and Rent Metrics - As of March 31, 2024, net annualized rent per occupied square foot was $56.32, an increase from $54.36 as of March 31, 2023, reflecting a growth of approximately 3.6%[179]. - The occupancy rates and monthly rent per occupied unit across the multifamily portfolio are monitored to assess performance and market conditions[180]. - The occupancy rate for the hotel in Sacramento, California was 79.0% for the three months ended March 31, 2024, down from 80.6% in the same period in 2023[189]. - Average Daily Rate (ADR) for the hotel was $211.06 for the three months ended March 31, 2024, compared to $202.02 for the same period in 2023[189]. Asset Management and Strategy - The company targets acquisitions in "Qualified Communities" characterized by high barriers to entry, high population density, and positive population trends, which are expected to enhance asset value[175]. - CIM Group's strategy includes leveraging investor relationships to execute on investment pipelines using an asset-light approach, which is anticipated to contribute to strong returns while reducing risk[172]. - The company intends to dispose of assets that do not fit its strategy over time, evaluating each asset regularly for potential redeployment into higher-return opportunities[173]. - CIM Group's multifamily and creative office assets are located in vibrant communities with significant private investment and public commitment, aiming for greater returns compared to similar assets in other markets[169]. Expenses and Costs - Office expenses rose to $6.9 million, a 3.6% increase from $6.6 million in Q1 2023, driven by higher operating expenses due to increased occupancy[210]. - Hotel expenses increased by 6.1% to $7.8 million for Q1 2024, compared to $7.3 million in Q1 2023, primarily due to higher wage expenses[211]. - Multifamily expenses surged to $3.4 million for Q1 2024, up from $1.4 million in Q1 2023, reflecting a full quarter of expenses from newly acquired properties[212]. - Interest expense increased by 34.5% to $8.1 million for Q1 2024, compared to $6.0 million in Q1 2023, attributed to higher principal balances and increased interest rates[225]. Financing and Debt - The company may finance future activities through various methods, including equity offerings, credit facilities, and cash flows from operations[182]. - As of March 31, 2024, the company has outstanding mortgage loan agreements with a total balance of $250.7 million, with maturities ranging from June 7, 2024, to July 1, 2026[236]. - The company refinanced its 2018 revolving credit facility into a new 2022 Credit Facility, which includes a $56.2 million term loan and a revolver allowing borrowing up to $150.0 million, with an outstanding balance of $173.2 million as of May 14, 2024[238]. - As of March 31, 2024, the company was not in compliance with a financial covenant under the 2022 credit facility, which constituted an event of default, but lenders waived this event for the test period ending March 31, 2024[239]. - The company has junior subordinated notes with a principal balance of $27.1 million as of March 31, 2024, with a variable interest rate that resets quarterly[244]. - As of March 31, 2024, 52.6% of the company's debt, amounting to $250.7 million, was fixed rate borrowings, while 47.4% was floating rate borrowings totaling $225.5 million[257]. - A 50 basis point change in SOFR would result in an annual impact of approximately $1.1 million on the company's earnings based on the level of floating rate debt outstanding[257]. - The company has one interest rate cap agreement with a notional amount of $87.0 million and a fair value of the net derivative asset of $544,000 as of March 31, 2024[259]. Project Costs - Total costs incurred for the 4750 Wilshire Project reached $17.3 million as of March 31, 2024, with an expected total project cost of approximately $31.0 million[231]. - The Sheraton Grand Hotel renovation is expected to cost approximately $20.9 million, with $1.6 million of pre-construction costs incurred as of March 31, 2024[232]. - The 1910 Sunset JV project is estimated to cost approximately $19.3 million, with total costs of $2.3 million incurred as of March 31, 2024[234]. Joint Ventures - Income from Unconsolidated Joint Ventures in the office segment increased to $117,000 for Q1 2024, compared to a loss of $64,000 in Q1 2023, primarily due to an unrealized gain on real estate[209]. - Loss from Unconsolidated Joint Ventures in the multifamily segment was $443,000 for Q1 2024, down from income of $832,000 in Q1 2023, mainly due to an unrealized loss on real estate[209]. Leasing Activity - During the three months ended March 31, 2024, the company executed leases totaling 36,961 square feet with terms longer than 12 months[179].

Real Estate Portfolio - The company's real estate portfolio as of March 31, 2024, consists of 27 assets, including 13 office properties totaling approximately 1.3 million rentable square feet, 3 multifamily properties with 696 units, 9 development sites, and 1 hotel with 503 rooms[1] Financial Performance - Net loss attributable to common stockholders for Q1 2024 was $12.3 million, or $0.54 per diluted share, compared to a net loss of $12.7 million, or $0.56 per diluted share, in Q1 2023[6] - Core FFO attributable to common stockholders for Q1 2024 was $(4.4) million, or $(0.19) per diluted share, compared to $(1.3) million, or $(0.06) per diluted share, in Q1 2023[7] - Total segment net operating income (NOI) for Q1 2024 was $13.6 million, up from $13.0 million in Q1 2023[9] - Net loss attributable to common stockholders for Q1 2024 was $12.295 million, slightly improved from $12.715 million in Q1 2023[32] - FFO (Funds from Operations) attributable to common stockholders for Q1 2024 was $(5.921) million, compared to $(4.794) million in Q1 2023[36] - Net loss attributable to common stockholders was $12.3 million, or $0.54 per diluted share for Q1 2024[56] - Funds from operations (FFO) attributable to common stockholders was $(5.9) million, or $(0.26) per diluted share for Q1 2024[56] - Core FFO attributable to common stockholders was $(4.4) million, or $(0.19) per diluted share for Q1 2024[57] Office Portfolio Performance - The company's same-store office portfolio was 83.0% occupied at March 31, 2024, an increase of 210 basis points year-over-year, with an annualized rent per occupied square foot of $58.30, up from $56.10 in Q1 2023[9] - Same-store office portfolio was 83.7% leased in Q1 2024[56] - Executed 36,961 square feet of leases with terms longer than 12 months in Q1 2024[56] - Same-store office segment NOI increased to $7.4 million for Q1 2024, up from $6.8 million in Q1 2023[60] - Same-store office Cash NOI increased to $8.3 million for Q1 2024, compared to $7.4 million in Q1 2023[60] - The increase in NOI and Cash NOI was driven by higher rental revenues at office properties in Beverly Hills and Los Angeles due to increased occupancy[60] Hotel Segment Performance - Hotel segment NOI remained consistent at $4.1 million for Q1 2024, with occupancy at 79.0%, ADR at $211.06, and RevPAR at $166.84[10][11] Multifamily Segment Performance - Multifamily segment NOI increased to $917,000 in Q1 2024 from $675,000 in Q1 2023, with occupancy at 86.2% and monthly rent per occupied unit at $2,737[12] Lending Segment Performance - Lending segment NOI decreased to $789,000 in Q1 2024 from $1.4 million in Q1 2023, primarily due to increased interest expense from new SBA 7(a) loan-backed notes[13][15] Capital and Dividends - The company issued 853,879 shares of Series A1 Preferred Stock in Q1 2024 for aggregate net proceeds of $19.1 million and had incremental borrowings of $5.0 million on its revolving credit facility[2] - A quarterly cash dividend of $0.0850 per share of common stock was declared on March 27, 2024, and paid on April 22, 2024[3] - Redeemable preferred stock dividends declared or accumulated in Q1 2024 amounted to $7.759 million, up from $5.391 million in Q1 2023[32] - Redeemable preferred stock dividends increased by $2.4 million in Q1 2024 compared to Q1 2023[59] Revenue and Expenses - Total revenues for Q1 2024 increased to $33.998 million, up from $28.912 million in Q1 2023, reflecting growth in rental, hotel, and interest income[32] - Rental and other property income rose to $18.773 million in Q1 2024, up from $14.886 million in Q1 2023[32] - Interest expenses increased to $8.977 million in Q1 2024 from $6.236 million in Q1 2023[32] - Depreciation and amortization expenses decreased to $6.478 million in Q1 2024 from $9.502 million in Q1 2023[32] - Interest expense increased by $2.1 million in Q1 2024 compared to Q1 2023[59] - Transaction-related costs decreased by $2.7 million in Q1 2024 compared to Q1 2023[59] Balance Sheet - Total assets as of March 31, 2024, were $887.503 million, a slight decrease from $891.200 million at the end of 2023[29] - Total liabilities increased marginally to $515.424 million in Q1 2024 from $514.431 million in Q4 2023[29] - Cash and cash equivalents increased to $21.307 million in Q1 2024 from $19.290 million at the end of 2023[29] Segment NOI and Cash NOI - Segment net operating income increased by $655,000 in Q1 2024 compared to Q1 2023[59] - Cash NOI for Q1 2024 was $14.5 million, with same-store office contributing $8.3 million[46]