The following is a summary of the Creative Media & Community Trust Corporation (CMCT) Q1 2024 Earnings Call Transcript:
Financial Performance:
CMCT's Q1 revenue from the office increased by 9% to $7.4 million chiefly due to enhanced NOI at their Beverly Hills property, following the commencement of Rolls-Royce dealership's 20-year lease.
There was no change in the hotel sector's NOI ($4.1 million) for both Q1 2024 and Q1 2023.
Lending segment's NOI saw a year-on-year decline primarily due to the impact of the securitization executed last year.
The multifamily segment contributed $900,000 towards NOI for the quarter.
FFO recorded was negative $0.26 per diluted share compared to negative $0.21 in the corresponding period of the previous year, while the core FFO was negative $0.19 per diluted share compared to a positive $0.06 per share in the same period last year.
Business Progress:
CMCT anticipates benefits from reduced rates on floating rate debt and lower preferred dividends with Federal Reserve's interest rates expected to fall over time.
Office lease percentage sustained at 84% for this quarter with approximately 37,000 square feet of office leases executed.
The grand opening of their Beverly Hills property is planned towards the year-end or beginning of the next year.
Renovations for their hotel asset will commence in the latter part of the year.
They plan to deliver two new multifamily assets in Los Angeles, one at 750 Wilshire later this year and another in mid-2025 at 1915 Park Avenue.
Ways to bolster their financial position and improve cash flow, which may include potential sale of assets and debt reduction, are being evaluated by CMCT.
More details: Creative Media & Community Trust IR
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