CMCT(CMCT) - 2025 Q2 - Quarterly Results

Report Overview Second Quarter 2025 Highlights The company reported a Q2 2025 net loss of $(14.3) million and Core FFO of $(7.2) million while executing key leasing and financing activities Q2 2025 Key Financial Metrics | Metric | Value | Per Diluted Share | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $(14.3) million | $(18.94) | | Funds from Operations (FFO) | $(7.9) million | $(10.42) | | Core FFO | $(7.2) million | $(9.53) | - The company's same-store office portfolio was 70.1% leased, with 47,859 square feet of new leases executed with terms longer than 12 months[7] - In April 2025, the company closed a $35.5 million mortgage, using proceeds to repay all outstanding obligations under its 2022 Credit Facility[7] - In June 2025, a subsidiary secured a $20.0 million revolving credit facility backed by its SBA 7(a) loans receivable portfolio[3] Management Commentary Management highlighted progress in its strategic plan, focusing on multifamily assets, balance sheet strength, and increased office leasing activity - The company is accelerating its focus towards premier multifamily assets, strengthening its balance sheet, and improving liquidity[4] - Since September 2024, the company has completed four refinancings, extended debt maturities on two multifamily assets, and fully repaid its recourse credit facility[5] - Office leasing activity has increased, with 78,192 square feet leased in the first half of 2025 and an additional 61,747 square feet in July[6] - Hotel segment NOI increased approximately 5.5% in the first half of 2025 following the renovation of all 505 hotel rooms[6] Financial and Operating Performance Overall Financial Results (Q2 2025) The company's Q2 2025 net loss widened to $(14.3) million, driven by lower segment NOI and higher interest expense Q2 Financial Results Comparison (2025 vs. 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $(14.3) million | $(9.7) million | | Net Loss per Diluted Share | $(18.94) | $(98.64) | | FFO Attributable to Common Stockholders | $(7.9) million | $(3.3) million | | FFO per Diluted Share | $(10.42) | $(33.46) | | Core FFO Attributable to Common Stockholders | $(7.2) million | $(2.1) million | | Core FFO per Diluted Share | $(9.53) | $(21.93) | - The increase in net loss was primarily caused by a $6.4 million decrease in segment net operating income and a $1.3 million rise in interest expense, partially offset by a $2.6 million decrease in redeemable preferred stock dividends[9] Real Estate Portfolio Overview As of June 30, 2025, the company's portfolio comprised 27 assets across office, multifamily, hotel, and development sites - The portfolio comprises 12 office properties (~1.3 million rentable sq. ft.), four multifamily properties (696 units), nine development sites, and one 505-room hotel[8] Segment Performance Total segment NOI decreased to $9.8 million in Q2 2025 from $16.2 million in Q2 2024, with declines across most segments Total Segment NOI (Q2 2025 vs. Q2 2024) | Period | Total Segment NOI | | :--- | :--- | | Q2 2025 | $9.8 million | | Q2 2024 | $16.2 million | Office Segment Office segment same-store NOI decreased to $5.5 million from $8.9 million year-over-year due to reduced rental revenue and lower occupancy Office Segment Same-Store Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Segment NOI | $5.5 million | $8.9 million | | Cash NOI | $5.8 million | $9.9 million | | Occupancy | 68.1% | 83.5% (-1,540 bps) | | Leased Percentage | 70.3% | 82.5% (-1,220 bps) | | Annualized Rent per Occupied Sq. Ft. | $60.96 | $58.85 | Hotel Segment Hotel Segment NOI was $4.2 million, a slight decrease from $4.3 million in Q2 2024, with minor declines in occupancy and RevPAR Hotel Operating Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Occupancy | 78.4% | 79.9% | | Average Daily Rate (ADR) | $212.92 | $210.54 | | Revenue per Available Room (RevPAR) | $166.83 | $168.30 | Multifamily Segment The Multifamily segment's NOI fell sharply to $189,000 from $2.3 million, impacted by an investment loss and lower property revenues - The decrease in multifamily segment NOI was driven by an unrealized loss on investment in real estate at an unconsolidated joint venture and a decrease in revenues at multifamily properties in Oakland, California[15] Multifamily Operating Metrics (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Occupancy | 83.4% | 92.5% | | Monthly Rent per Occupied Unit | $2,458 | $2,647 | | Net Monthly Rent per Occupied Unit | $2,284 | $2,469 | Lending Segment The Lending segment reported an NOI loss of $47,000 for Q2 2025, compared to an income of $743,000 in Q2 2024 - The decrease in Lending segment NOI was primarily due to a decrease in interest income from loan payoffs and lower interest rates, as well as an increase in current expected credit losses[16] Debt and Equity The company executed a 1-for-25 reverse stock split and strengthened its financial position through new financing and debt repayment - A 1-for-25 reverse stock split of the company's Common Stock became effective on April 15, 2025[17] - In April 2025, the company closed a $35.5 million mortgage and used the proceeds to repay and terminate the 2022 Credit Facility[18] - In June 2025, a subsidiary closed on a new $20.0 million revolving credit facility, which had an outstanding balance of $8.3 million as of June 30, 2025[19] Dividends The company declared quarterly cash dividends for its Series A, Series A1, and Series D Preferred Stock for the second quarter of 2025 Q2 2025 Preferred Stock Dividends | Preferred Stock Series | Quarterly Dividend Amount per Share | | :--- | :--- | | Series A | $0.34375 | | Series A1 | $0.426875 | | Series D | $0.353125 | Financial Statements Consolidated Balance Sheets As of June 30, 2025, total assets stood at $885.0 million, while total liabilities increased, leading to lower total equity Selected Balance Sheet Data (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $885,024 | $889,555 | | Debt, net | $535,605 | $505,732 | | Total Liabilities | $584,250 | $562,492 | | Total Equity | $288,270 | $306,264 | Consolidated Statements of Operations For Q2 2025, total revenues declined to $29.7 million while expenses rose, resulting in a net loss attributable to the company of $(9.0) million Selected Income Statement Data (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $29,689 | $34,439 | | Total Expenses | $38,245 | $36,126 | | Net Loss | $(9,151) | $(852) | | Net Loss Attributable to Common Stockholders | $(14,279) | $(9,667) | Non-GAAP Financial Measures & Reconciliations Funds from Operations (FFO) FFO attributable to common stockholders for Q2 2025 was $(7.9) million, a decline from $(3.3) million in Q2 2024 FFO Reconciliation Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(14,279) | $(9,667) | | Adjustments (Depreciation, Impairment, etc.) | $6,426 | $6,388 | | FFO attributable to common stockholders | $(7,853) | $(3,279) | Core Funds from Operations (Core FFO) Core FFO for Q2 2025 was $(7.2) million, compared to $(2.1) million in the prior-year quarter Core FFO Reconciliation Summary (in thousands) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | FFO attributable to common stockholders | $(7,853) | $(3,279) | | Adjustments (Debt Extinguishment, Transaction Costs, etc.) | $670 | $1,130 | | Core FFO attributable to common stockholders | $(7,183) | $(2,149) | Net Operating Income (NOI) Total Segment NOI for Q2 2025 was $9.8 million, a decrease from $16.2 million in Q2 2024 Segment NOI Breakdown (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Office | $5,519 | $8,908 | | Hotel | $4,158 | $4,320 | | Multifamily | $189 | $2,252 | | Lending | $(47) | $743 | | Total Segment NOI | $9,819 | $16,223 |