Creative Media & Community Trust Corporation (NASDAQ and
TASE: CMCT) (“we”, “our”, “CMCT”, or the “Company”), today reported
operating results for the three and nine months ended September 30,
2023.
Third Quarter 2023 Highlights
Real Estate Portfolio
- Same-store office portfolio(2) was 83.9% leased.
- Executed 29,291 square feet of leases with terms longer than 12
months.
Financial Results
- Net loss attributable to common stockholders of $22.9 million,
or $1.01 per diluted share.
- Funds from operations (“FFO”) attributable to common
stockholders(3) was $(7.5) million, or $(0.33) per diluted
share.
- Core FFO attributable to common stockholders(4) was $(7.1)
million, or $(0.31) per diluted share.
Management Commentary
“We made additional strides improving multifamily occupancy,”
said David Thompson, Chief Executive Officer of Creative Media
& Community Trust Corporation. “Two of the three assets that we
acquired this year are still in their lease-up phase following
completion of construction. We believe the continued lease-up of
these two assets will lead to improving funds from operations.”
“We made significant additional progress in our value-add and
development pipeline in the third quarter,” said Shaul Kuba, Chief
Investment Officer of Creative Media & Community Trust
Corporation.
“In Culver City, we were very pleased to have just received
entitlements to redevelop our existing single story office building
on Washington Boulevard into a multi-story creative office
building. This asset is located in a supply constrained, highly
desirable sub market and is surrounded by top tier technology
companies. We are now proceeding towards design and permitting of
the building.”
Third Quarter 2023 Results
Real Estate Portfolio
As of September 30, 2023, our real estate portfolio consisted of
26 assets, all of which were fee-simple properties, including two
office properties (one of which is being partially converted into
multifamily units and one of which also includes a multifamily
development site) and one multifamily property which the Company
has an ownership interest in through investments in unconsolidated
joint ventures. The portfolio included 13 office properties
totaling approximately 1.3 million of rentable square feet, three
multifamily properties with a total of 696 units, eight development
sites (two being used as parking lots), and one 503-room hotel with
an ancillary parking garage.
Financial Results
Net loss attributable to common stockholders was $22.9 million,
or $1.01 per diluted share of common stock, for the three months
ended September 30, 2023, compared to a net loss attributable to
common stockholders of $11.7 million, or $0.50 per diluted share of
common stock, for the same period in 2022. The increase in net loss
attributable to common stockholders was driven by the $885,000
decrease in FFO discussed below as well as an increase in
depreciation and amortization expense of $11.0 million.
FFO attributable to common stockholders(3) was $(7.5) million,
or $(0.33) per diluted share of common stock, for the three months
ended September 30, 2023, a decrease of $885,000 compared to $(6.6)
million, or $(0.28) per diluted share of common stock, for the same
period in 2022. The decrease in FFO was primarily attributable to
an increase in interest expense not allocated to our operating
segments of $6.5 million, an increase in provision for income taxes
of $367,000, an increase in general and administrative expenses of
$250,000 and an increase in redeemable preferred stock dividends of
$225,000. These were partially offset by a decrease in the
consolidated statement of operations impact of redeemable preferred
stock redemptions of $4.5 million, an increase of $1.1 million in
segment net operating income (discussed in more detail in the
following Segment Information), an increase in net loss
attributable to noncontrolling interests, adjusted for their share
of depreciation and amortization expense, of $253,000, an increase
of $219,000 in interest and other income and a decrease of $192,000
in asset management fees.
Core FFO attributable to common stockholders(4) was $(7.1)
million, or $(0.31) per diluted share of common stock, for the
three months ended September 30, 2023, compared to $(1.5) million,
or $(0.07) per diluted share of common stock, for the same period
in 2022. The decrease in Core FFO is attributable to the
aforementioned changes in FFO, while not impacted by the increase
in redeemable preferred stock redemptions as these are excluded
from our Core FFO calculation.
Segment Information
Our reportable segments during the three months ended September
30, 2023 and 2022 consisted of three types of commercial real
estate properties, namely, office, hotel and multifamily, as well
as a segment for our lending business. Total segment net operating
income (“NOI”)(5) was $11.2 million for the three months ended
September 30, 2023, compared to $10.1 million for the same period
in 2022.
Office
Same-Store
Same-store(2) office segment NOI(5) increased to $7.4 million
for the three months ended September 30, 2023, compared to $6.6
million in the same period in 2022, while same-store(1) office Cash
NOI(6) increased to $7.9 million for the three months ended
September 30, 2023, compared to $6.9 million in the same period in
2022. The increases in same-store(1) office Cash NOI(6) and
same-store(2) office segment NOI(5) were primarily attributable to
an increase in rental revenue at an office property in Beverly
Hills, California, due to increased occupancy and rental rates as
well as a decrease in real estate tax expenses at an office
property in Austin, Texas .
At September 30, 2023, the Company’s same-store(2) office
portfolio was 82.1% occupied, a decrease of 70 basis points
year-over-year on a same-store(2) basis, and 83.9% leased, a
decrease of 180 basis points year-over-year on a same-store(2)
basis. The annualized rent per occupied square foot(7) on a
same-store(2) basis was $57.04 at September 30, 2023 compared to
$54.47 at September 30, 2022. During the three months ended
September 30, 2023, the Company executed 29,291 square feet of
leases with terms longer than 12 months at our same-store(2) office
portfolio.
Total
Office Segment NOI(5) increased to $9.3 million for the three
months ended September 30, 2023, from $6.5 million for the same
period in 2022. The increase is due to the increase in
same-store(2) office segment NOI(5) discussed above as well as an
increase in non-same-store(2) office Segment NOI(5) of $2.0
million, which was driven by income from an unconsolidated office
entity primarily due to an unrealized gain on the value of its
investments in real estate recognized during the three months ended
September 30, 2023.
Hotel
Hotel Segment NOI(5) decreased to $1.9 million for the three
months ended September 30, 2023, from $2.4 million for the same
period in 2022, primarily due to a decrease in food and beverage
revenue and parking revenue. Additionally, hotel occupancy
decreased while average daily rate increased.
Three Months Ended September
30,
2023
2022
Occupancy
68.9
%
73.7
%
Average daily rate(a)
$
175.91
$
164.33
Revenue per available room(b)
$
121.14
$
121.03
______________________
(a) Calculated as trailing 3-month room
revenue divided by the number of rooms occupied.
(b) Calculated as trailing 3-month room
revenue divided by the number of available rooms.
Multifamily
Our Multifamily Segment consists of two multifamily buildings
located in Oakland, California as well as an investment in a
multifamily building in the Echo Park neighborhood of Los Angeles,
California through a 50% joint-venture partnership, all of which
were acquired during the first quarter of 2023. Our Multifamily
Segment NOI(5) was $(391,000) for the three months ended September
30, 2023. As of September 30, 2023, our Multifamily Segment was
84.1% occupied and the monthly rent per occupied unit(8) was
$2,869.
Lending
Our lending segment primarily consists of our SBA 7(a) lending
platform, which is a national lender that primarily originates
loans to small businesses in the hospitality industry. Lending
Segment NOI(5) was $366,000 for the three months ended September
30, 2023, compared to $1.2 million for the same period in 2022. The
decrease was primarily due to an increase in interest expense
related to the issuance of new SBA 7(a) loan-backed notes in
connection with the securitization that closed in March 2023,
partially offset by an increase in revenues driven by an increase
in interest income as a result of the raising interest rate
environment.
Debt and Equity
During the three months ended September 30, 2023, we issued
1,094,386 shares of Series A1 Preferred Stock for aggregate net
proceeds of $25.1 million. Net proceeds represent gross proceeds
offset by costs specifically identifiable to the offering, such as
commissions, dealer manager fees and other offering fees and
expenses. Additionally, during the three months ended September 30,
2023, we had net incremental paydowns of $15.0 million on our
revolving credit facility.
Dividends
On September 27, 2023, we declared a quarterly cash dividend of
$0.0850 per share of our common stock, which was paid on October
23, 2023.
On October 13, 2023, we declared a quarterly cash dividend of
$0.34375 per share of our Series A Preferred Stock for the third
quarter of 2023. The dividend will be payable monthly as follows:
$0.114583 per share to be paid on November 15, 2023 to Series A
Preferred Stockholders of record on November 5, 2023; $0.114583 per
share to be paid on December 15, 2023 to Series A Preferred
Stockholders of record on December 5, 2023; and $0.114583 per share
to be paid on January 15, 2024 to Series A Preferred Stockholders
of record on January 5, 2024.
On October 13, 2023, we declared a quarterly cash dividend of
$0.489375 per share of our Series A1 Preferred Stock for the third
quarter of 2023. The quarterly cash dividend of $0.489375 per share
represents an annualized dividend rate of 7.83% (2.5% plus the
federal funds rate of 5.33% on the applicable determination date).
The dividend will be payable monthly as follows: $0.163125 per
share to be paid on November 15, 2023 to Series A1 Preferred
Stockholders of record on November 5, 2023; $0.163125 per share to
be paid on December 15, 2023 to Series A1 Preferred Stockholders of
record on December 5, 2023; and $0.163125 per share to be paid on
January 15, 2024 to Series A1 Preferred Stockholders of record on
January 5, 2024. For shares of Series A1 Preferred Stock issued in
the fourth quarter of 2023, the dividend will be prorated from the
date of issuance, and the monthly dividend payments will reflect
such proration.
On July 12, 2023, we declared a quarterly cash dividend of
$0.353125 per share of our Series D Preferred Stock for the fourth
quarter of 2023. The dividend will be payable monthly as follows:
$0.117708 per share to be paid on November 15, 2023 to Series D
Preferred Stockholders of record on November 5, 2023; $0.117708 per
share to be paid on December 15, 2023 to Series D Preferred
Stockholders of record on December 5, 2023; and $0.117708 per share
to be paid on January 15, 2024 to Series D Preferred Stockholders
of record on January 5, 2024.
Acquisitions
The following table details our acquisition activity during the
nine months ended September 30, 2023:
Asset
Date of
Interest
Purchase
Property
Type
Acquisition
Units
Acquired
Price
(in thousands)
Channel House
Multifamily
January 31, 2023
333
89.4
%
$
134,615
F3 Land Site
Multifamily
January 31, 2023
N/A
89.4
%
$
250
466 Water Street Land Site (1)
Multifamily
January 31, 2023
N/A
89.4
%
$
2,500
1150 Clay
Multifamily
March 28, 2023
288
98.1
%
$
145,500
4750 Wilshire Boulevard (2)(3)
Office / Multifamily
February 17, 2023
N/A
20.0
%
$
8,600
1902 Park Avenue (2)
Multifamily
February 28, 2023
75
50.0
%
$
6,626
_____________________
(1) Currently utilized as a surface
parking lot.
(2) Represents an unconsolidated joint
venture investment.
(3) We sold 80% of our interest in 4750
Wilshire Boulevard (excluding a vacant land parcel which was not
included in the sale) to third-party co-investors with whom we
formed a joint venture. The remaining 20% interest represents our
interest in the newly formed unconsolidated joint venture.
About the Data
Descriptions of certain performance measures, including Segment
NOI, Cash NOI, FFO attributable to common stockholders, and Core
FFO are provided below. Refer to the subsequent tables for
reconciliation of these non-GAAP financial measures to the most
directly comparable GAAP financial measure.
(1)
Stabilized office
portfolio: represents office properties where occupancy
was not impacted by a redevelopment or repositioning during the
period.
(2)
Same-store
properties: are properties that we have owned and
operated in a consistent manner and reported in our consolidated
results during the entire span of the periods being reported. We
excluded from our same-store property set this quarter any
properties (i) acquired on or after July 1, 2022; (ii) sold or
otherwise removed from our consolidated financial statements on or
before September 30, 2023; or (iii) that underwent a major
repositioning project we believed significantly affected its
results at any point during the period commencing on July 1, 2022
and ending on September 30, 2023. When determining our same-store
properties as of September 30, 2023, one property was excluded
pursuant to (i) and (iii) above and no properties were excluded
pursuant to (ii) above.
(3)
FFO attributable
to common stockholders: represents net income (loss)
attributable to common stockholders, computed in accordance with
GAAP, which reflects the deduction of redeemable preferred stock
dividends accumulated, excluding gain (or loss) from sales of real
estate, impairment of real estate, and real estate depreciation and
amortization. We calculate FFO in accordance with the standards
established by the National Association of Real Estate Investment
Trusts (the “NAREIT”). See ‘Core FFO’ definition below for
discussion of the benefits and limitations of FFO as a supplemental
measure of operating performance.
(4)
Core FFO
attributable to common stockholders (“Core FFO”):
represents FFO attributable to common stockholders (computed as
described above), excluding gain (loss) on early extinguishment of
debt, redeemable preferred stock deemed dividends, redeemable
preferred stock redemptions, gain (loss) on termination of interest
rate swaps, and transaction costs.
We believe that FFO is a widely recognized
and appropriate measure of the performance of a REIT and that it is
frequently used by securities analysts, investors and other
interested parties in the evaluation of REITs, many of which
present FFO when reporting their results. In addition, we believe
that Core FFO is a useful metric for securities analysts, investors
and other interested parties in the evaluation of our Company as it
excludes from FFO the effect of certain amounts that we believe are
non-recurring, are non-operating in nature as they relate to the
manner in which we finance our operations, or transactions outside
of the ordinary course of business.
Like any metric, FFO and Core FFO should
not be used as the only measure of our performance because it
excludes depreciation and amortization and captures neither the
changes in the value of our real estate properties that result from
use or market conditions nor the level of capital expenditures and
leasing commissions necessary to maintain the operating performance
of our properties, and Core FFO excludes amounts incurred in
connection with non-recurring special projects, prepaying or
defeasing our debt, repurchasing our preferred stock, and adjusting
the carrying value of our preferred stock classified in temporary
equity to its redemption value, all of which have real economic
effect and could materially impact our operating results. Other
REITs may not calculate FFO and Core FFO in the same manner as we
do, or at all; accordingly, our FFO and Core FFO may not be
comparable to the FFOs and Core FFOs of other REITs. Therefore, FFO
and Core FFO should be considered only as a supplement to net
income (loss) as a measure of our performance and should not be
used as a supplement to or substitute measure for cash flows from
operating activities computed in accordance with GAAP. FFO and Core
FFO should not be used as a measure of our liquidity, nor is it
indicative of funds available to fund our cash needs, including our
ability to pay dividends. FFO and Core FFO per share for the
year-to-date period may differ from the sum of quarterly FFO and
Core FFO per share amounts due to the required method for computing
per share amounts for the respective periods. In addition, FFO and
Core FFO per share is calculated independently for each component
and may not be additive due to rounding.
(5)
Segment
NOI: for our real estate segments represents rental and
other property income and expense reimbursements less property
related expenses and excludes non-property income and expenses,
interest expense, depreciation and amortization, corporate related
general and administrative expenses, gain (loss) on sale of real
estate, gain (loss) on early extinguishment of debt, impairment of
real estate, transaction costs, and benefit (provision) for income
taxes. For our lending segment, Segment NOI represents interest
income net of interest expense and general overhead expenses. See
‘Cash NOI’ definition below for discussion of the benefits and
limitations of Segment NOI as a supplemental measure of operating
performance.
(6)
Cash
NOI: for our real estate segments, represents Segment
NOI adjusted to exclude the effect of the straight lining of rents,
acquired above/below market lease amortization and other
adjustments required by generally accepted accounting principles
(“GAAP”). For our lending segment, there is no distinction between
Cash NOI and Segment NOI. We also evaluate the operating
performance and financial results of our operating segments using
cash basis NOI excluding lease termination income, or “Cash NOI
excluding lease termination income”.
Segment NOI and Cash NOI are not measures
of operating results or cash flows from operating activities as
measured by GAAP and should not be considered alternatives to
income from continuing operations, or to cash flows as a measure of
liquidity, or as an indication of our performance or of our ability
to pay dividends. Companies may not calculate Segment NOI or Cash
NOI in the same manner. We consider Segment NOI and Cash NOI to be
useful performance measures to investors and management because,
when compared across periods, they reflect the revenues and
expenses directly associated with owning and operating our
properties and the impact to operations from trends in occupancy
rates, rental rates and operating costs, providing a perspective
not immediately apparent from income from continuing operations.
Additionally, we believe that Cash NOI is helpful to investors
because it eliminates straight line rent and other non-cash
adjustments to revenue and expenses.
(7)
Annualized rent
per occupied square foot: represents gross monthly base
rent under leases commenced as of the specified periods, multiplied
by twelve. This amount reflects total cash rent before abatements.
Where applicable, annualized rent has been grossed up by adding
annualized expense reimbursements to base rent. Annualized rent for
certain office properties includes rent attributable to retail.
(8)
Monthly rent per
occupied unit: Represents gross monthly base rent under
leases commenced as of the specified period, divided by occupied
units. This amount reflects total cash rent before concessions.
FORWARD-LOOKING STATEMENTS
This press release contains certain “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 (the “Exchange
Act”), which are intended to be covered by the safe harbors created
thereby. These statements include the plans and objectives of
management for future operations, including plans and objectives
relating to future growth of CMCT’s business and availability of
funds. Such forward-looking statements can be identified by the use
of forward-looking terminology such as “may,” “will,” “project,”
“target,” “expect,” “intend,” “might,” “believe,” “anticipate,”
“estimate,” “could,” “would,” “continue,” “pursue,” “potential,”
“forecast,” “seek,” “plan,” or “should,” or “goal” or the negative
thereof or other variations or similar words or phrases. Such
forward-looking statements also include, among others, statements
about CMCT’s plans and objectives relating to future growth and
outlook. Such forward-looking statements are based on particular
assumptions that management of CMCT has made in light of its
experience, as well as its perception of expected future
developments and other factors that it believes are appropriate
under the circumstances. Forward-looking statements are necessarily
estimates reflecting the judgment of CMCT’s management and involve
a number of risks and uncertainties that could cause actual results
to differ materially from those suggested by the forward-looking
statements. These risks and uncertainties include those associated
with (i) the timing, form, and operational effects of CMCT’s
development activities, (ii) the ability of CMCT to raise in place
rents to existing market rents and to maintain or increase
occupancy levels, (iii) fluctuations in market rents, (iv) the
effects of inflation and higher interest rates on the operations
and profitability of CMCT and (vii) general economic, market and
other conditions. Additional important factors that could cause
CMCT’s actual results to differ materially from CMCT’s expectations
are discussed under the section “Risk Factors” in CMCT’s Annual
Report on Form 10-K for the year ended December 31, 2022 and in
CMCT’s Quarterly Report on Form 10-Q for the period ended March 31,
2023. The forward-looking statements included herein are based on
current expectations and there can be no assurance that these
expectations will be attained. Assumptions relating to the
foregoing involve judgments with respect to, among other things,
future economic, competitive and market conditions and future
business decisions, all of which are difficult or impossible to
predict accurately and many of which are beyond CMCT’s control.
Although we believe that the assumptions underlying the
forward-looking statements are reasonable, any of the assumptions
could be inaccurate and, therefore, there can be no assurance that
the forward-looking statements included herein will prove to be
accurate. In light of the significant uncertainties inherent in the
forward-looking statements expressed or implied herein, the
inclusion of such information should not be regarded as a
representation by CMCT or any other person that CMCT’s objectives
and plans will be achieved. Readers are cautioned not to place
undue reliance on forward-looking statements. Forward-looking
statements speak only as of the date they are made. CMCT does not
undertake to update them to reflect changes that occur after the
date they are made, except as may be required by applicable
securities law.
CREATIVE MEDIA & COMMUNITY
TRUST CORPORATION AND SUBSIDIARIES
Consolidated Balance
Sheets
(Unaudited and in thousands,
except share and per share amounts)
September 30, 2023
December 31, 2022
ASSETS
Investments in real estate, net
$
708,178
$
502,006
Investments in unconsolidated entities
29,252
12,381
Cash and cash equivalents
19,261
46,190
Restricted cash
23,950
11,290
Loans receivable, net (Note 5)
60,404
62,547
Accounts receivable, net
2,825
3,780
Deferred rent receivable and charges,
net
30,890
37,543
Other intangible assets, net
4,043
4,461
Other assets
19,253
10,050
TOTAL ASSETS
$
898,056
$
690,248
LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND EQUITY
LIABILITIES:
Debt, net
$
470,325
$
184,267
Accounts payable and accrued expenses
34,331
107,220
Intangible liabilities, net
—
20
Due to related parties
4,739
3,155
Other liabilities
13,401
17,856
Total liabilities
522,796
312,518
COMMITMENTS AND CONTINGENCIES (Note
15)
REDEEMABLE PREFERRED STOCK: Series A
cumulative redeemable preferred stock, $0.001 par value; 34,873,861
shares authorized; no shares issued or outstanding as of September
30, 2023 and 693,741 shares issued and outstanding as of December
31, 2022; liquidation preference of $25.00 per share, subject to
adjustment
—
15,697
EQUITY:
Series A cumulative redeemable preferred
stock, $0.001 par value; 34,873,861 shares authorized; 8,820,338
and 7,694,199 shares issued and outstanding, respectively, as of
September 30, 2023 and 8,126,597 and 7,565,349 shares issued and
outstanding, respectively, as of December 31, 2022; liquidation
preference of $25.00 per share, subject to adjustment
192,235
189,048
Series A1 cumulative redeemable preferred
stock, $0.001 par value; 27,935,059 shares authorized; 9,288,485
and 9,223,544 shares issued and outstanding, respectively, as of
September 30, 2023 and 5,966,077 and 5,956,147 shares issued and
outstanding, respectively, as of December 31, 2022; liquidation
preference of $25.00 per share, subject to adjustment
228,324
147,514
Series D cumulative redeemable preferred
stock, $0.001 par value; 26,991,590 shares authorized; 56,857 and
48,447 shares issued and outstanding, respectively, as of September
30, 2023 and 56,857 and 48,857 shares issued and outstanding,
respectively, as of December 31, 2022; liquidation preference of
$25.00 per share, subject to adjustment
1,190
1,200
Common stock, $0.001 par value;
900,000,000 shares authorized; 22,786,741 shares issued and
outstanding as of September 30, 2023 and 22,737,853 shares issued
and outstanding as of December 31, 2022.
23
23
Additional paid-in capital
854,377
861,721
Distributions in excess of earnings
(903,725
)
(837,846
)
Total stockholders’ equity
372,424
361,660
Noncontrolling interests
2,836
373
Total equity
375,260
362,033
TOTAL LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND EQUITY
$
898,056
$
690,248
CREATIVE MEDIA & COMMUNITY
TRUST CORPORATION AND SUBSIDIARIES
Consolidated Statements of
Operations
(Unaudited and in thousands,
except per share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
REVENUES:
Rental and other property income
$
17,061
$
14,194
$
49,999
$
42,484
Hotel income
7,485
7,965
29,590
24,476
Interest and other income
3,572
2,694
10,201
9,078
Total Revenues
28,118
24,853
89,790
76,038
EXPENSES:
Rental and other property operating
15,509
13,334
47,713
37,557
Asset management and other fees to related
parties
724
916
2,071
2,757
Expense reimbursements to related
parties—corporate
524
511
1,729
1,459
Expense reimbursements to related
parties—lending segment
648
539
2,166
1,612
Interest
9,733
2,193
24,678
6,766
General and administrative
2,142
1,907
5,751
4,975
Transaction-related costs
38
201
3,398
201
Depreciation and amortization
16,082
5,093
46,056
15,071
Total Expenses
45,400
24,694
133,562
70,398
Income (loss) from unconsolidated
entities
1,189
(204
)
1,053
176
Gain on sale of real estate
—
—
1,104
—
(LOSS) INCOME BEFORE PROVISION FOR INCOME
TAXES
(16,093
)
(45
)
(41,615
)
5,816
Provision for income taxes
554
187
969
815
NET (LOSS) INCOME
(16,647
)
(232
)
(42,584
)
5,001
Net loss (income) attributable to
noncontrolling interests
874
(5
)
2,501
(19
)
NET (LOSS) INCOME ATTRIBUTABLE TO THE
COMPANY
(15,773
)
(237
)
(40,083
)
4,982
Redeemable preferred stock dividends
declared or accumulated
(6,809
)
(6,584
)
(18,341
)
(16,763
)
Redeemable preferred stock deemed
dividends
—
—
—
(19
)
Redeemable preferred stock redemptions
(352
)
(4,863
)
(1,040
)
(5,044
)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS
$
(22,934
)
$
(11,684
)
$
(59,464
)
$
(16,844
)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS PER SHARE:
Basic
$
(1.01
)
$
(0.50
)
$
(2.62
)
$
(0.72
)
Diluted
$
(1.01
)
$
(0.50
)
$
(2.62
)
$
(0.72
)
WEIGHTED AVERAGE SHARES OF COMMON STOCK
OUTSTANDING:
Basic
22,738
23,209
22,717
23,303
Diluted
22,738
23,209
22,717
23,303
CREATIVE MEDIA & COMMUNITY
TRUST CORPORATION AND SUBSIDIARIES
Funds from Operations
(Unaudited and in thousands,
except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Numerator:
Net loss attributable to common
stockholders
$
(22,934
)
$
(11,684
)
$
(59,464
)
$
(16,844
)
Depreciation and amortization
16,082
5,093
46,056
15,071
Noncontrolling interests’ proportionate
share of depreciation and amortization
(626
)
—
(1,986
)
—
Gain on sale of real estate
—
—
(1,104
)
—
FFO attributable to common
stockholders
$
(7,478
)
$
(6,591
)
$
(16,498
)
$
(1,773
)
Redeemable preferred stock dividends
declared on dilutive shares (a)
—
(6
)
—
(7
)
Diluted FFO attributable to common
stockholders
$
(7,478
)
$
(6,597
)
$
(16,498
)
$
(1,780
)
Denominator:
Basic weighted average shares of common
stock outstanding
22,738
23,209
22,717
23,303
Effect of dilutive securities—contingently
issuable shares (a)
—
13
3
5
Diluted weighted average shares and common
stock equivalents outstanding
22,738
23,222
22,720
23,308
FFO attributable to common stockholders
per share:
Basic
$
(0.33
)
$
(0.28
)
$
(0.73
)
$
(0.08
)
Diluted
$
(0.33
)
$
(0.28
)
$
(0.73
)
$
(0.08
)
______________________
(a) For the three and nine months ended
September 30, 2023 and 2022, the effect of certain shares of
redeemable preferred stock were excluded from the computation of
diluted FFO attributable to common stockholders and the diluted
weighted average shares and common stock equivalents outstanding as
such inclusion would be anti-dilutive.
CREATIVE MEDIA & COMMUNITY
TRUST CORPORATION AND SUBSIDIARIES
Core Funds from
Operations
(Unaudited and in thousands,
except per share amounts)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Numerator:
Net loss attributable to common
stockholders
$
(22,934
)
$
(11,684
)
$
(59,464
)
$
(16,844
)
Depreciation and amortization
16,082
5,093
46,056
15,071
Noncontrolling interests’ proportionate
share of depreciation and amortization
(626
)
—
(1,986
)
—
Gain on sale of real estate
—
—
(1,104
)
—
FFO attributable to common
stockholders
$
(7,478
)
$
(6,591
)
$
(16,498
)
$
(1,773
)
Redeemable preferred stock redemptions
352
4,863
1,040
5,044
Redeemable preferred stock deemed
dividends
—
—
—
19
Transaction-related costs
38
201
3,398
201
Noncontrolling interests’ proportionate
share of transaction-related costs
—
—
(194
)
—
Core FFO attributable to common
stockholders
$
(7,088
)
$
(1,527
)
$
(12,254
)
$
3,491
Redeemable preferred stock dividends
declared on dilutive shares (a)
—
(6
)
—
(7
)
Diluted Core FFO attributable to common
stockholders
$
(7,088
)
$
(1,533
)
$
(12,254
)
$
3,484
Denominator:
Basic weighted average shares of common
stock outstanding
22,738
23,209
22,717
23,303
Effect of dilutive securities-contingently
issuable shares (a)
—
13
4
25
Diluted weighted average shares and common
stock equivalents outstanding
22,738
23,222
22,721
23,328
Core FFO attributable to common
stockholders per share:
Basic
$
(0.31
)
$
(0.07
)
$
(0.54
)
$
0.15
Diluted
$
(0.31
)
$
(0.07
)
$
(0.54
)
$
0.15
______________________
(a) For the three and nine months ended
September 30, 2023 and 2022, the effect of certain shares of
redeemable preferred stock were excluded from the computation of
diluted Core FFO attributable to common stockholders and the
diluted weighted average shares and common stock equivalents
outstanding as such inclusion would be anti-dilutive.
CREATIVE MEDIA & COMMUNITY
TRUST CORPORATION AND SUBSIDIARIES
Reconciliation of Net
Operating Income
(Unaudited and in
thousands)
Three Months Ended September
30, 2023
Same-Store
Office
Non-Same- Store Office
Total Office
Hotel
Multi- family
Lending
Total
Cash net operating income excluding lease
termination income
$
7,925
$
1,964
$
9,889
$
1,922
$
62
$
366
$
12,239
Cash lease termination income
—
—
—
—
28
—
28
Cash net operating income (loss)
7,925
1,964
9,889
1,922
90
366
12,267
Deferred rent and amortization of
intangible assets, liabilities, and lease inducements
(571
)
—
(571
)
(1
)
(481
)
—
(1,053
)
Segment net operating income (loss)
$
7,354
$
1,964
$
9,318
$
1,921
$
(391
)
$
366
$
11,214
Interest and other income
220
Asset management and other fees to related
parties
(724
)
Expense reimbursements to related
parties—corporate
(524
)
Interest expense
(8,556
)
General and administrative
(1,603
)
Transaction-related costs
(38
)
Depreciation and amortization
(16,082
)
Gain on sale of real estate
—
Loss before provision for income taxes
(16,093
)
Provision for income taxes
(554
)
Net loss
(16,647
)
Net loss attributable to noncontrolling
interests
874
Net loss attributable to the Company
$
(15,773
)
Three Months Ended September
30, 2022
Same-Store
Office
Non-Same- Store Office
Total Office
Hotel
Multi- family
Lending
Total
Cash net operating income excluding lease
termination income
$
6,859
$
(37
)
$
6,822
$
2,378
$
—
$
1,191
$
10,391
Cash lease termination income
—
—
—
—
—
—
—
Cash net operating income
6,859
(37
)
6,822
2,378
—
1,191
10,391
Deferred rent and amortization of
intangible assets, liabilities, and lease inducements
(286
)
(17
)
(303
)
(1
)
—
—
(304
)
Segment net operating income (loss)
$
6,573
$
(54
)
$
6,519
$
2,377
$
—
$
1,191
$
10,087
Interest and other income
1
Asset management and other fees to related
parties
(916
)
Expense reimbursements to related
parties—corporate
(511
)
Interest expense
(2,059
)
General and administrative
(1,353
)
Depreciation and amortization
(5,093
)
Income before provision for income
taxes
(45
)
Provision for income taxes
(187
)
Net income
(232
)
Net income attributable to noncontrolling
interests
(5
)
Net income attributable to the Company
$
(237
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231114543060/en/
For Creative Media & Community Trust Corporation
Media Relations: Bill Mendel, 212-397-1030
bill@mendelcommunications.com
or
Shareholder Relations: Steve Altebrando, 646-652-8473
shareholders@cimcommercial.com
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