Creative Media & Community Trust Corporation

What they do

CMCT owns and operates commercial real estate, principally multifamily residential, creative office and one hotel. Its multifamily portfolio is concentrated in the Bay Area, and its office assets are in Los Angeles (including Culver City and 11600 Wilshire Boulevard), Austin and one Oakland building. It earns rental income from leases and room revenue from the hotel; the office portfolio was 72.3% leased as of June 30, 2026.

Revenue drivers

• Multifamily — Rental income from residential units, with 78% of the portfolio by unit count in the Bay Area; same-store occupancy was 95.3% as of June 30, 2026, up 1,190 basis points year over year.
• Office — Rental income from creative office assets in Los Angeles and Austin plus one Oakland building; office was 84.4% leased excluding the Oakland Office Building as of June 30, 2026.
• Hotel — Room revenue from a single 505-room hotel, which recently completed a full room renovation and public-space renovation, the first large-scale renovation since its 2008 acquisition.
• Segment NOI — Total segment net operating income was $9.3 million for the three months ended June 30, 2026, down 5.2% year over year; NOI excluding losses from unconsolidated entities was $12.5 million, up 22.2%.

Recent performance

For the three months ended June 30, 2026, CMCT reported a net loss attributable to common stockholders of $(11.0) million, or $(4.03) per diluted share. FFO was $(3.5) million, or $(1.28) per diluted share, and Core FFO was $(3.4) million, or $(1.25) per diluted share. Total segment NOI decreased 5.2% to $9.3 million, but NOI excluding the impact of real estate valuation adjustments at unconsolidated entities rose 22.2% to $12.5 million. Quarterly revenue rose to $12.2 million from $11.9 million in the prior quarter. Undepreciated common book value was $130.58 per share.

Strategy

Since September 2024 the company has pursued a plan to accelerate its focus on premier multifamily assets, strengthen the balance sheet and improve liquidity. It has completed financings on nine assets, fully retired its recourse credit facility, sold its lending business, and redeemed approximately $397.7 million of preferred stock in exchange for common stock. It continues to evaluate the potential sale of one or more real estate assets and is exploring converting underutilized hotel space into eight additional rooms. Two 1-for-10 reverse stock splits were effected in 2026, in March and April.

Risks

• Oakland office exposure — The non-recourse mortgage on the Oakland Office Building matured in the third quarter of 2026, the company elected not to refinance it, and it is still engaging with the servicer on a resolution, with demand described as challenging.
• Persistent losses — The company reported annual net losses of $48.5 million in 2023, $25.2 million in 2024 and $39.0 million in 2025, and a $11.0 million quarterly loss in Q2 2026.
• Dividend suspended — Dividends per share fell from $3.40 in 2023 to $1.70 in 2024 and $0 in 2025, consistent with capital conservation and liquidity pressure.
• Leverage and thin liquidity — As of June 30, 2026, total liabilities were $537.0 million, including $498.8 million of long-term debt, against only $12.8 million of cash and equivalents.

Outlook

Management says operating trends continue to improve across the multifamily portfolio, the Los Angeles and Austin office assets, and the hotel. It points to in-place Bay Area rents roughly 12% below asking rents as an opportunity to grow NOI as leases turn over, and cites the completed 11600 Wilshire Boulevard and hotel renovations as supporting leasing and performance. It also continues to evaluate potential asset sales and a long-term resolution for the Oakland Office Building.