CMCT(CMCT) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results Overview and Management Commentary CMCT advanced its multifamily strategy in Q1 2025, repaying its $169 million credit facility, securing new office leases, and boosting hotel NOI - The company is accelerating its focus on premier multifamily assets, strengthening its balance sheet, and improving liquidity[4] - Completed the full repayment and retirement of the $169 million recourse corporate-level credit facility in early April 2025[5] - Executed over 30,000 square feet of office leases in Q1 2025 and saw a 15% YoY increase in hotel segment net operating income[5] - A 1-for-25 reverse stock split of Common Stock became effective on April 15, 2025 All share and per-share amounts in the report are adjusted retroactively[2] Financial Performance CMCT reported a net loss of $(11.9) million in Q1 2025, an improvement from Q1 2024, driven by lower preferred stock dividends and transaction costs Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $(11.9) million | $(12.3) million | | Diluted EPS | $(20.73) | $(125.46) | | FFO Attributable to Common Stockholders | $(5.4) million | $(5.9) million | | Core FFO Attributable to Common Stockholders | $(5.1) million | $(4.4) million | - The decrease in net loss was driven by a $2.3 million decrease in redeemable preferred stock dividends and a $664,000 decrease in transaction-related costs These were partially offset by a $1.9 million decrease in segment NOI and a $1.1 million increase in interest expense[8] - As of March 31, 2025, the real estate portfolio consisted of 27 assets, including 12 office properties, 4 multifamily properties, 9 development sites, and one 505-room hotel[7] Segment Information Office Segment The office segment's same-store NOI declined to $7.1 million in Q1 2025, primarily due to lower occupancy at an Oakland property, despite increased annualized rent per occupied square foot Same-Store Office Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Segment NOI | $7.1 million | $7.9 million | | Cash NOI | $7.8 million | $8.8 million | | Occupancy | 70.2% | 83.0% | | Leased | 71.4% | 83.7% | | Annualized Rent per Occupied Sq. Ft. | $61.23 | $58.30 | - The decrease in same-store office NOI was primarily due to lower rental revenue at the Oakland, California office property, resulting from a large tenant exercising a partial lease termination option[10] - During Q1 2025, the company executed 30,333 square feet of new leases with terms longer than 12 months in its same-store office portfolio[10] Hotel Segment The hotel segment demonstrated strong performance in Q1 2025, with Segment NOI increasing to $4.7 million driven by higher occupancy and average daily rate - Hotel Segment NOI increased to $4.7 million for Q1 2025, up from $4.1 million in Q1 2024, due to higher occupancy and average daily rate[13] Hotel Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Occupancy | 80.0% | 79.0% | | Average Daily Rate (ADR) | $220.57 | $211.06 | | Revenue per Available Room (RevPAR) | $176.47 | $166.84 | Multifamily Segment The multifamily segment reported an NOI loss of $(620,000) in Q1 2025, primarily due to an unrealized loss on a joint venture investment, alongside decreased occupancy and monthly rent - Multifamily segment NOI was a loss of $(620,000) in Q1 2025, a sharp decrease from income of $917,000 in Q1 2024 This was mainly due to an unrealized loss on an investment in one of the unconsolidated joint ventures[15] Multifamily Metrics (as of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Occupancy | 80.2% | 86.2% | | Monthly Rent per Occupied Unit | $2,461 | $2,737 | Lending Segment The lending segment's NOI decreased to $590,000 in Q1 2025, primarily due to lower interest income from loan payoffs and reduced interest rates - Lending segment NOI decreased to $590,000 for Q1 2025, compared to $789,000 for the same period in 2024[16] - The decrease in lending NOI was primarily due to lower interest income from loan payoffs and lower interest rates[16] Capital Structure and Dividends Debt and Equity Activities The company executed significant financing activities, including closing $5.0 million and $35.5 million mortgages, and issued 288,427 shares of Common Stock through preferred stock redemptions - On April 3, 2025, the company closed a $35.5 million mortgage on an office property in Austin, Texas, and used the proceeds to repay all outstanding obligations under the 2022 Credit Facility, which was then terminated[17] - In Q1 2025, the company closed a $5.0 million variable-rate mortgage loan on an office property in Los Angeles, California[17] - Redemptions of Series A1 and Series A Preferred Stock resulted in the issuance of 288,427 shares of Common Stock during Q1 2025[16] Preferred Stock Dividends The company declared quarterly cash dividends for its Series A, Series A1, and Series D Preferred Stock, payable on April 15, 2025 Quarterly Dividend per Share | Series | Dividend Amount | | :--- | :--- | | Series A Preferred Stock | $0.34375 | | Series A1 Preferred Stock | $0.44250 | | Series D Preferred Stock | $0.353125 | Financial Statements Consolidated Balance Sheets As of March 31, 2025, CMCT's total assets were $882.3 million, with total liabilities at $566.9 million and total equity at $294.6 million, reflecting slight changes from year-end 2024 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $882,343 | $889,555 | | Total Liabilities | $566,909 | $562,492 | | Total Equity | $294,635 | $306,264 | Consolidated Statements of Operations In Q1 2025, total revenues were $32.3 million, resulting in a net loss of $(6.3) million and a net loss attributable to common stockholders of $(11.9) million Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenues | $32,295 | $33,998 | | Total Expenses | $37,295 | $37,307 | | Net Loss | $(6,272) | $(3,905) | | Net Loss Attributable to Common Stockholders | $(11,898) | $(12,295) | Non-GAAP Financial Measures and Reconciliations Funds from Operations (FFO) FFO attributable to common stockholders for Q1 2025 improved to $(5.4) million, or $(9.42) per diluted share, after adjusting net loss for depreciation and amortization FFO Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(11,898) | $(12,295) | | Depreciation and amortization | 6,560 | 6,478 | | FFO attributable to common stockholders | $(5,405) | $(5,921) | Core Funds from Operations (Core FFO) Core FFO attributable to common stockholders declined to $(5.1) million, or $(8.85) per diluted share, in Q1 2025, after further adjustments to FFO Core FFO Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | FFO attributable to common stockholders | $(5,405) | $(5,921) | | Redeemable preferred stock redemptions | 300 | 806 | | Transaction-related costs | 26 | 690 | | Core FFO attributable to common stockholders | $(5,079) | $(4,425) | Net Operating Income (NOI) Total segment NOI decreased to $11.8 million in Q1 2025, primarily due to lower Office and Multifamily NOI, partially offset by Hotel segment growth Segment Net Operating Income (NOI) (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Office | $7,101 | $7,865 | | Hotel | $4,684 | $4,062 | | Multifamily | $(620) | $917 | | Lending | $590 | $789 | | Total Segment NOI | $11,755 | $13,633 | Forward-Looking Statements This press release contains forward-looking statements regarding management's plans and objectives, which are subject to various risks and uncertainties - This press release contains forward-looking statements regarding management's plans and objectives, which are subject to various risks and uncertainties These statements are not guarantees of future performance and actual results could differ materially[30]