CMCT

Image source: The Motley Fool. Friday, Aug. 14, 2026 at 12:00 p.m. ET Portfolio Oversight-Stephen Altebrando Chief Executive Officer-David Thompson Chief Financial Officer-Brandon Hill Operator: Good afternoon, and welcome to the Creative Media & Community Trust Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the call over to Steve Altebrando, Portfolio Oversight. Please go ahead. Stephen Altebrando: Hello, everyone, and thank you for joining us. My name is Steve Altebrando, the portfolio oversight for CMCT. Also on the call today are David Thompson, our Chief Executive Officer; and Brandon Hill, our Chief Financial Officer. This call is being webcast and will be temporarily archived on the Investor Relations section of our website, where you can also find our earnings release. Our earnings release includes a reconciliation of non-GAAP financial measures discussed during today's call. During this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of assumptions made by and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties and other factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will prove to be incorrect. Therefore, our actual future results can be expected to differ from our expectations, and those differences may be material. For a more detailed description of potential risks, please refer to our SEC filings, which can be found in the Investor Relations section of our website. With that, I'll turn the call over to David Thompson. David Thompson: Thanks, Steve. Hello, everyone, and thank you for joining us today. I'll begin with an update on our strategic priorities before reviewing our second quarter operating results. Starting with our strategic priorities. First, we remain focused on improving our funds from operations in 2026 and 2027. We continue to see operating trends strengthening across our multifamily portfolio, our Los Angeles and Austin office assets and at our hotel asset in Sacramento. These improvements are translating into stronger operating results. Excluding our JV loss in the quarter, which was primarily impacted by large noncash items, our net operating income increased 22% from the prior year period, driven by our multifamily, office and hotel segments. Second, we continue to strengthen our balance sheet while still funding critical growth initiatives such as office leasing and our hotel renovations. Despite a $2.8 million increase in our JV losses, which was primarily driven by noncash items, our core FFO still improved by $3.6 million compared to the second quarter of last year. The improvement was primarily due to a reduction in preferred dividends. Third, we continue to evaluate the potential sale of one or more of our real estate assets. We believe executing on this strategy will further strengthen our balance sheet while also helping close what we view as a significant gap between our current share price and the intrinsic value of the portfolio. Turning now to our operating performance by segment. Beginning with multifamily, we believe CMCT is well positioned to benefit from the continued recovery in the Bay Area residential market. Approximately 78% of our multifamily units are located in the Bay Area, where leasing demand has continued to improve. Same-store multifamily occupancy reached 95.3% as of June 30, 2026, an increase of 1,190 basis points from a year ago. As a result, multifamily NOI increased 238% year-over-year. In addition, in-place rents at our Bay Area multifamily properties are approximately 12% below current asking rents, providing a meaningful opportunity to continue NOI growth as new leases roll to market. Within our Office Segment, leasing trends continue to improve. Excluding our Oakland office asset, leased occupancy increased to 84.4% at quarter end, up 470 basis points from the second quarter of 2025. Office NOI declined to $4 million from $5.5 million due to a $2.4 million increase in our JV loss. The JV loss was primarily driven by noncash items. Excluding our JV loss, consolidated NOI increased year-over-year, primarily due to improved performance at our Wilshire office assets. Our hotel property in Sacramento also delivered improved operating performance. Following the completion of recent renovations, hotel NOI increased 11% year-over-year. We believe the property remains well positioned to generate additional NOI growth. Overall, we're encouraged by the continued improvement we're seeing across each of our operating segments, and we believe we are positioned to continue to grow our FFO. With that, I'll turn the call over to Steve to provide more color on our refinancing activities and property level performance in the quarter. Stephen Altebrando: Thanks, David. The actions we've taken over the past several quarters have significantly improved our balance sheet, and we believe will improve our funds from operations. We are positioned to benefit from improving fundamentals, particularly in our multifamily assets in the Bay Area. Today, CMCT owns 621 residential units across 2 premier Class A assets in the market. The Bay Area recovery continues to gain momentum, bolstered by growth in AI-related employment and investment. In the adjacent San Francisco market, multifamily rents increased by approximately 11% in the second quarter after increasing approximately 6% in 2025. This rent growth represents a 25-plus year high. And vacancy has declined to 3.7%, which is a 25-year low. In Oakland, rent growth was 7.6% in the second quarter, also the highest rate of growth in over 25 years, while vacancy declined to 7% at the end of the second quarter, down from a peak of approximately 18% in 2021. Supply growth in the market remains very low, and we anticipate that it will remain low for the foreseeable future given the elevated costs of construction. At the end of the second quarter, occupancy at CMCT's multifamily properties increased to 96.1%, representing an improvement of over 1,200 basis points compared to the end of the second quarter of last year. We have seen concessions in the markets normalize. And at the end of the second quarter of '26, our in-place rents were approximately 12% below our current asking rents. This should support solid NOI growth over the next year. Turning to Los Angeles. We have made good progress across our 2 new L.A. multifamily assets. At 701 South Hudson, our partial conversion of office to residential is now 94.1% occupied. We continue to work on predevelopment on the 50 units we are entitled to build on the surface lot. We anticipate having the option to start that project later this year. At 1915 Park, our ground-up development in Echo Park, we achieved 58.3% leased at the quarter end. This 36-unit project delivered in the fourth quarter and is located in the highly desirable walkable submarket with significant dining and entertainment options. Including our joint ventures, we now have 5 operating multifamily assets. Turning to the Office Segment. We executed approximately 16,000 square feet of leases in the second quarter. We are seeing steady leasing interest at the few assets where we have some vacancy in L.A. and Austin. Excluding the company's one Oakland office asset, our lease percentage stood at 84.4% at the end of the second quarter, representing an improvement of 470 basis points year-over-year. Finally, in our hotel segment, we have substantially completed the renovation of the property's public spaces following the full renovation of all 505 guestrooms. This marks the first comprehensive renovation of the asset since its acquisition in 2008 and positions the hotel well for improved performance in 2026 and beyond. We are also evaluating an opportunity to add 8 new guestrooms by converting currently underutilized space, which we believe will be highly accretive. Turning to financing. During the quarter, we extended our mortgage at 1150 Clay, our Class A Oakland multifamily asset until mid-2027. We are working to refinance our mortgage on the Sheraton Grand. With the renovation now substantially complete, we believe there's an opportunity to both increase the loan balance and reduce the borrowing spread. Finally, at our Oakland office property, our nonrecourse mortgage matured in early July. We elected not to invest the additional capital in the asset that would have been required to refinance the mortgage. We continue to engage with the servicer on a long-term resolution. For context, in the second quarter of 2026, this asset generated approximately $445,000 of income after debt service. With that, I'll turn it to Brandon. Brandon Hill: Thank you, Steve. Good afternoon. I'm going to spend a few minutes going over the comparative financial highlights for the second quarter of 2026 versus the second quarter of 2025, starting with our segment NOI, which was $9.3 million in the second quarter of 2026, compared to $9.8 million in the prior year comparable period. Loss from unconsolidated entities was $3.2 million in the second quarter of 2026, compared to $437,000 in the prior year comparable period, primarily driven by fair value adjustments to real estate at 2 of our unconsolidated office entities and 2 of our unconsolidated multifamily entities. Excluding loss from unconsolidated entities, Segment NOI was $12.5 million in Q2 2026, compared to $10.3 million in Q2 2025. Broken down by segment, the decrease in Segment NOI of approximately $510,000 was driven by a decrease of $1.5 million from our office properties, partially offset by increases of $449,000 from our multifamily properties and $466,000 from our hotel property. Our Hotel Segment NOI for Q2 2026 was $4.6 million versus $4.2 million in Q2 2025. The increase was primarily driven by increased occupancy, which resulted in increased room revenues and food and beverage revenues. These increases were partially offset by higher room, food and beverage and general and administrative expenses for the 3 months ended June 30, 2026, compared to the prior year comparable period. Our Office Segment NOI for Q2 2026 was $4 million versus $5.5 million in Q2 2025. The decrease was primarily driven by fair value adjustments to real estate at 2 of our unconsolidated office entities during Q2 2026. The change was partially offset by an increase in rental revenue and tenant reimbursement revenue, together with a decrease in real estate taxes and administrative costs at office properties in Los Angeles, California, an increase in tenant reimbursement revenue at our office property in Oakland, California and a decrease in administrative costs at our office property in Austin, Texas during Q2 2026, compared to the prior year period. Our Multifamily Segment net operating income increased to $638,000 for the 3 months ended June 30, 2026, compared to $189,000 for the same period in 2025, primarily driven by increased occupancy, coupled with a decrease in real estate taxes at our multifamily properties in Oakland, California. As of June 30, 2026, our multifamily segment was 93.6% occupied, compared to 83.4% as of Q2 2025. Below the Segment NOI line, depreciation and amortization expense increased $807,000, primarily due to an increase in tenant improvement, amortization at an office property located in Beverly Hills, California and increased depreciation at our hotel property due to renovation projects, which have increased depreciable assets. Asset management fees increased $510,000, driven by an increase in our net asset value attributable to common stockholders, resulting from the issuance of additional shares of common stock, primarily during the first quarter of 2026. We also incurred a $455,000 casualty loss during Q2 2026 due to water damage at our hotel property. These increases were partially offset by a decrease in transaction costs of $786,000 due to a lower volume of contemplated transactions and reduced debt deal costs incurred during Q2 2026, compared to the prior year period. Our FFO was negative $3.5 million or negative $1.28 per diluted share, compared to negative $7.9 million or negative $981.63 per diluted share in the prior year comparable period. The increase in FFO was primarily attributable to a decrease in redeemable preferred stock dividends of $4.3 million and a decrease in transaction-related costs of $786,000, partially offset by a decrease in segment net operating income of $510,000. Our Core FFO was negative $3.4 million or negative $1.25 per diluted share, compared to negative $7 million or negative $870.25 per diluted share in the prior year comparable period. The increase in Core FFO is primarily attributable to the aforementioned changes in FFO. Unlike FFO, Core FFO was not impacted by the aforementioned decrease in transaction-related costs as these are excluded from our Core FFO calculation. With that, we can open the line for questions. Operator: [Operator Instructions] Showing no questions, this concludes our question-and-answer session, and the conference has also now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Creative Media & Community Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Creative Media & Community Trust wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CMCT (CMCT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

LOS ANGELES, August 14, 2026--(BUSINESS WIRE)--Creative Media & Community Trust Corporation (NASDAQ: CMCT) ("we", "our", "CMCT", or the "Company") today reported operating results for the three months ended June 30, 2026. On March 26, 2026, the Company effected a 1-for-10 reverse stock split on the Company’s Common Stock, par value $0.001 per share (the "Common Stock"), and on April 20, 2026, the Company effected a 1-for-10 reverse stock split on its Common Stock. All of the share and per share amounts in this release have been adjusted to give retroactive effect to the reverse stock splits (collectively, the "Reverse Stock Splits"). Second Quarter 2026 Highlights Real Estate Portfolio CMCT’s office portfolio was 72.3% leased as of June 30, 2026 (84.4% leased as of June 30, 2026 compared to 79.7% leased as of June 30, 2025, when excluding our one Oakland office building (the "Oakland Office Building")). Executed 16,176 square feet of leases with terms longer than 12 months. CMCT’s same-store multifamily portfolio occupancy was 95.3% as of June 30, 2026, representing a 1,190-basis point improvement from the second quarter of 2025. Financial Results Net loss attributable to common stockholders of $(11.0) million, or $(4.03) per diluted share. Funds from operations attributable to common stockholders ("FFO")(3)1 was $(3.5) million, or $(1.28) per diluted share. Core FFO attributable to common stockholders ("Core FFO")(4)1 was $(3.4) million, or $(1.25) per diluted share. Undepreciated common book value(10)1 was $130.58 per share of Common Stock. Management Commentary Operating trends continue to improve across the multifamily portfolio, the Los Angeles and Austin office assets and the Company’s one hotel, and we continue to evaluate the potential sale of one or more of our real estate assets. Total segment net operating income decreased (5.2)% to $9.3 million for the three months ended June 30, 2026, compared to $9.8 million for the same period in 2025. However, total segment net operating income, exclusive of loss from unconsolidated entities ("NOI, exclusive of loss from unconsolidated entities")(11)1, increased 22.2% to $12.5 million for the three months ended June 30, 2026, compared to $10.3 million for the same period in 2025, as this measure excludes the impact of real estate valuation adjustments recognized by the Company’s unconsolidated entities during the period. Operating Trends Multifamily 78% of CMCT’s multifamily portfolio (based on the number of units) is in the Bay Area, where the residential market is rapidly improving. CMCT’s same-store multifamily occupancy was 95.3% as of June 30, 2026, representing a 1,190-basis point improvement from the second quarter of 2025. In-place rents at CMCT’s Bay Area multifamily assets are approximately 12% below current asking rents, providing an opportunity to grow net operating income as new leases are increased to market. Office In the office segment, excluding the Oakland Office Building, the leased percentage was 84.4% as of June 30, 2026, representing a 470-basis point improvement from the second quarter of 2025. At 11600 Wilshire Boulevard, the Company recently completed its renovation program, which is anticipated to improve leasing activity. The Company is also seeing steady leasing interest at its Culver City and Austin creative office assets. The Company owns one office asset in Oakland, where demand continues to be challenging. The non-recourse mortgage on the Oakland Office Building matured in the third quarter of 2026. The Company elected not to invest the additional capital in the asset that would have been required to refinance the mortgage and continues to engage with the servicer on a long-term resolution. Hotel In the hotel segment, the Company has substantially completed the renovation of the public space, following the renovation of all 505 rooms, setting the property up well for 2026 and beyond. The renovation was the first large scale renovation of the property since it was acquired in 2008. The Company is also exploring an opportunity to convert underutilized space into eight additional rooms. Improved Financial Strength The Company has made significant progress on its plan to accelerate its focus towards premier multifamily assets, strengthen the balance sheet and improve liquidity. Since announcing this plan in September 2024, the Company 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 of the Company ("Preferred Stock") in exchange for shares of Common Stock. In addition, the Company continues to evaluate the potential sale of one or more of our real estate assets. Given the Company’s improved financial position, the Company does not currently intend to redeem, at the Company’s election, additional Preferred Stock in shares of Common Stock. However, the Company will evaluate redemption requests submitted by holders of Preferred Stock at the time it receives such requests and may elect to redeem those Preferred Shares in Common Stock or cash, at the Company’s discretion. Second Quarter 2026 Results Real Estate Portfolio As of June 30, 2026, our real estate portfolio consisted of 27 assets, all of which were fee-simple properties and five of which we own through investments in unconsolidated joint ventures. Our unconsolidated joint ventures contain one office property, three multifamily properties (one of which has been partially converted from office into multifamily units and is now classified as a multifamily property) and one commercial development site. As of June 30, 2026, our 12 office properties, totaling approximately 1.3 million rentable square feet, were 71.9% occupied; our one hotel with an ancillary parking garage, which has a total of 505 rooms, had RevPAR of $180.47 for the three months ended June 30, 2026, and our five multifamily properties were 93.6% occupied. Additionally, as of June 30, 2026, we had eight development sites (two of which were being used as parking lots). Financial Results Net loss attributable to common stockholders was $(11.0) million, or $(4.03) per diluted share of Common Stock, for the three months ended June 30, 2026, compared to a net loss attributable to common stockholders of $(14.3) million, or $(1,784.88) per diluted share of Common Stock, for the same period in 2025. The decrease in net loss attributable to common stockholders was primarily driven by a decrease in redeemable preferred stock dividends of $4.3 million, partially offset by a decrease in segment net operating income of $510,000. FFO(3)2 was $(3.5) million, or $(1.28) per diluted share of Common Stock, for the three months ended June 30, 2026, compared to $(7.9) million, or $(981.63) per diluted share of Common Stock, for the same period in 2025. The increase in FFO2 was primarily attributable to a decrease in redeemable preferred stock dividends of $4.3 million, and a decrease in transaction-related costs of $786,000, partially offset by a decrease in segment net operating income of $510,000. Core FFO(4)2 was $(3.4) million, or $(1.25) per diluted share of Common Stock, for the three months ended June 30, 2026, compared to $(7.0) million, or $(870.25) per diluted share of Common Stock, for the same period in 2025. The increase in Core FFO2 is primarily attributable to the aforementioned changes in FFO2. Unlike FFO2, Core FFO2 was not impacted by the aforementioned decrease in transaction-related costs, as these are excluded from our Core FFO2 calculation. Segment Information Our reportable segments during the three months ended June 30, 2026 and 2025 consisted of three types of commercial real estate properties, namely, office, hotel and multifamily. Total segment net operating income ("NOI")(5) was $9.3 million for the three months ended June 30, 2026, compared to $9.8 million for the same period in 2025. Office Same-Store Same-store(2) office segment NOI(5) was $4.0 million for the three months ended June 30, 2026 compared to $5.5 million for the three months ended June 30, 2025, while same-store(1) office Cash NOI(6)3 was $4.1 million for the three months ended June 30, 2026, a decrease from $5.8 million in the same period in 2025. The change in same-store(2) office segment NOI(5) and same-store(1) office Cash NOI(6)3 was primarily driven by fair value adjustments to real estate at two of our unconsolidated office entities during the three months ended June 30, 2026. The change was partially offset by an increase in rental revenue and tenant reimbursement revenue, together with a decrease in real estate taxes and administrative costs at office properties in Los Angeles, California, as well as an increase in tenant reimbursement revenue at the Oakland Office Building and a decrease in administrative costs at an office property in Austin, Texas during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. At June 30, 2026, the Company’s same-store(2) office portfolio was 71.9% occupied, an increase of 380 basis points year-over-year on a same-store(2) basis, and 72.3% leased, an increase of 220 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 $58.69 at June 30, 2026, compared to $60.96 at June 30, 2025. During the three months ended June 30, 2026, the Company executed 16,176 square feet of leases with terms longer than 12 months at our same-store(2) office portfolio. Total Office Segment NOI(5) was $4.0 million for the three months ended June 30, 2026 compared to $5.5 million for the three months ended June 30, 2025, driven by the aforementioned offsetting activity impacting the same-store(2) office Segment NOI(5). Hotel Hotel Segment NOI(5) was $4.6 million for the three months ended June 30, 2026, as compared to $4.2 million for the same period in 2025. The increase was attributable to increases in room revenue and food and beverage revenues, partially offset by increases in food and beverage expenses and room expenses, as a result of increased occupancy for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, in addition to an increase in general and administrative expenses compared to the prior year period. Multifamily Our Multifamily Segment consists of two multifamily buildings located in Oakland, California as well as three investments in multifamily buildings in Los Angeles, California owned through unconsolidated joint ventures. Our multifamily segment NOI(5) increased to $638,000 for the three months ended June 30, 2026, compared to $189,000 for the same period in 2025. As of June 30, 2026, our Multifamily Segment was 93.6% occupied, monthly rent per occupied unit(8) was $2,560 and net monthly rent per occupied unit(9) was $2,286, compared to 83.4%, $2,458, and $2,284, respectively, as of June 30, 2025. Debt and Equity During the three months ended June 30, 2026, the Company redeemed 22,035 shares of Series A1 Preferred Stock and 39,266 shares of Series A Preferred Stock (all shares of which were redeemed in shares of Common Stock). These redemptions resulted in the collective issuance of 308,679 shares of Common Stock during the three months ended June 30, 2026. As of June 30, 2026, the non-recourse mortgage on the Company's Oakland Office Building had an outstanding balance of $97.1 million. The mortgage matured in the third quarter of 2026. The Company elected not to invest additional capital in the asset that would have been required to refinance the mortgage. The Company continues to engage with the special servicer on a long-term resolution. We are in discussions with a lender related to the Sheraton Hotel to refinance the asset, which we expect to result in an upsized loan and a reduced interest rate. Dividends We declared preferred stock dividends on our Series A, Series A1 and Series D Preferred Stock for the second quarter of 2026. The dividends were payable on July 15, 2026 to holders of record at the close of business on July 5, 2026. The dividend amounts are as follows: *The quarterly cash dividend of $0.38375 per share represents an annualized dividend rate of 6.14% (2.5% plus the federal funds rate of 3.64% on the applicable determination date). The terms of the Series A1 Preferred Stock provide for cumulative cash dividends (if, as and when authorized by the Board of Directors) on each share of Series A1 Preferred Stock at a quarterly rate of the greater of (i) 6.00% of the Series A1 Stated Value, divided by four (4) and (ii) the Federal Funds (Effective) Rate on the applicable determination date, plus 2.50%, of the Series A1 Stated Value, divided by four (4), up to a maximum of 2.50% of the Series A1 Stated Value per quarter. About the Data Descriptions of certain performance measures, including Segment NOI, Cash NOI, FFO attributable to common stockholders, Core FFO attributable to common stockholders, undepreciated common book value, and NOI, exclusive of income (loss) from unconsolidated entities are provided below. Certain of these performance measures — Cash NOI, FFO attributable to common stockholders, Core FFO attributable to common stockholders, undepreciated common book value, and NOI, exclusive of income (loss) from unconsolidated entities — are non-GAAP financial measures. Refer to the subsequent tables for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure. FORWARD-LOOKING STATEMENTS This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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," "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) CMCT’s ability 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 continuing higher interest rates on CMCT’s operations and profitability, (v) general economic, market and other conditions, including the effects of high unemployment rates, continued or renewed inflation and any recession or slowdown in economic growth, (vi) CMCT’s approach to artificial intelligence ("AI") and (vii) the ongoing conflict in the Middle East and related disruptions. Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed in "Item 1A—Risk Factors" in CMCT’s Annual Report on Form 10-K for the year ended December 31, 2025 and in Part II, Item 1A of CMCT’s Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. 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 expressed or implied 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 laws. View source version on businesswire.com: https://www.businesswire.com/news/home/20260814903765/en/ Contacts For Creative Media & Community Trust CorporationMedia Relations:Bill Mendel, [email protected] orShareholder Relations:Steve Altebrando, [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the 22% increase in net operating income (excluding JV losses) to strengthening trends across the multifamily portfolio, Los Angeles and Austin office assets, and the Sacramento hotel. The multifamily segment is benefiting from a significant recovery in the Bay Area, where occupancy rose by 1,190 basis points year-over-year to 95.3%, driven by AI-related employment growth and limited new supply. Management identified a 12% gap between in-place rents and current asking rents in the Bay Area, providing a clear pathway for organic NOI growth as leases roll to market rates. Office segment performance was bifurcated; while Los Angeles and Austin assets showed steady leasing interest, overall segment NOI was weighed down by non-cash fair value adjustments within joint ventures. The Sacramento hotel asset saw an 11% NOI increase following the completion of guestroom and public space renovations, which management believes positions the property for sustained growth in 2026. A strategic decision was made to not invest additional capital into the Oakland office property to refinance its maturing mortgage, leading to ongoing negotiations with the servicer for a long-term resolution. Management is actively evaluating the sale of one or more real estate assets to strengthen the balance sheet and bridge the gap between share price and intrinsic portfolio value. The company plans to refinance the Sheraton Grand mortgage, anticipating that completed renovations will allow for an increased loan balance and a reduced borrowing spread. Growth initiatives include the potential start of a 50-unit residential project on a surface lot at 701 South Hudson later this year and the conversion of underutilized hotel space into 8 new guestrooms. FFO improvement targets for 2026 and 2027 are supported by a reduction in preferred dividends and the normalization of concessions in the multifamily market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. JV losses increased by $2.8 million, primarily due to non-cash fair value adjustments to real estate at two unconsolidated office and two unconsolidated multifamily entities. A $455,000 casualty loss was recorded in the second quarter due to water damage at the company's hotel property. Asset management fees rose by $510,000, driven by an increase in net asset value following the issuance of additional common stock in early 2026. The Oakland office property generated $445,000 of income after debt service in Q2, but its non-recourse mortgage matured in July without a completed refinancing.

This article first appeared on GuruFocus. Segment NOI: $9.3 million in Q2 2026, compared to $9.8 million in Q2 2025. Segment NOI (excluding JV loss): $12.5 million in Q2 2026, compared to $10.3 million in Q2 2025, a 22% increase. Multifamily NOI: Increased 238% year-over-year, reaching $638,000 in Q2 2026 versus $189,000 in Q2 2025. Office NOI: Declined to $4 million from $5.5 million, primarily due to a $2.4 million increase in JV loss driven by noncash items. Hotel NOI: Increased 11% year-over-year to $4.6 million in Q2 2026, compared to $4.2 million in Q2 2025. Same-Store Multifamily Occupancy: Reached 95.3% as of June 30, 2026, an increase of 1,190 basis points from a year ago. Multifamily Occupancy: 93.6% as of June 30, 2026, compared to 83.4% in Q2 2025. Office Leased Occupancy (excluding Oakland): Increased to 84.4% at quarter end, up 470 basis points from Q2 2025. FFO: Negative $3.5 million, or negative $1.28 per diluted share, compared to negative $7.9 million in the prior year period. Core FFO: Negative $3.4 million, or negative $1.25 per diluted share, compared to negative $7 million in the prior year period. Loss from Unconsolidated Entities: $3.2 million in Q2 2026, compared to $437,000 in Q2 2025, primarily driven by fair value adjustments. Casualty Loss: $455,000 incurred during Q2 2026 due to water damage at the hotel property. Warning! GuruFocus has detected 7 Warning Signs with CMCT. Is CMCT fairly valued? Test your thesis with our free DCF calculator. Release Date: August 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Multifamily NOI surged 238% year-over-year, driven by a 1,190 basis point increase in same-store occupancy to 95.3%. Bay Area multifamily market is experiencing record rent growth (11% in San Francisco, 7.6% in Oakland) and historically low vacancy, positioning CMCT for continued gains. In-place rents at Bay Area multifamily properties are 12% below asking rents, offering a clear path to further NOI growth as leases roll. Hotel NOI increased 11% year-over-year following the completion of comprehensive renovations, with potential for additional growth from adding 8 new guestrooms. Core FFO improved by $3.6 million year-over-year, primarily due to a reduction in preferred dividends, despite higher JV losses. Excluding JV losses, consolidated NOI increased 22% year-over-year, reflecting strong performance across multifamily, office, and hotel segments. Office leasing momentum continues, with leased occupancy (excluding Oakland) up 470 basis points to 84.4%. The company is actively evaluating asset sales to strengthen the balance sheet and close the gap between share price and intrinsic value. Successful refinancing of the 1150 Clay mortgage and plans to refinance the Sheraton Grand at a lower spread and higher loan balance enhance financial flexibility. FFO remained negative at -$3.5 million, and Core FFO was also negative at -$3.4 million, indicating ongoing profitability challenges. Loss from unconsolidated entities increased significantly to $3.2 million from $437,000, driven by noncash fair value adjustments at multiple properties. Office segment NOI declined to $4 million from $5.5 million, primarily due to the increased JV loss. The company incurred a $455,000 casualty loss due to water damage at its hotel property. Asset management fees increased by $510,000 due to the issuance of additional common shares, adding to costs. The Oakland office asset's mortgage matured, and the company chose not to refinance, leading to ongoing engagement with the servicer and potential uncertainty. Depreciation and amortization expense increased by $807,000, partly due to renovation projects, which could pressure future earnings. The multifamily segment NOI, while improved, remains relatively low at $638,000, indicating the segment is still in early recovery. The company's strategic priority to sell assets has not yet resulted in completed transactions, leaving balance sheet strengthening incomplete. Q: What were the key drivers behind the improvement in Core FFO for the second quarter of 2026?A: Brandon Hill, CFO, stated that Core FFO improved by $3.6 million year-over-year, primarily due to a $4.3 million decrease in redeemable preferred stock dividends and a $786,000 decrease in transaction-related costs. This was partially offset by a $510,000 decrease in segment net operating income. Q: Can you provide more detail on the multifamily segment's performance and the Bay Area market recovery?A: Stephen Altebrando, Portfolio Oversight, highlighted that multifamily NOI increased 238% year-over-year, driven by a 1,190 basis point increase in same-store occupancy to 95.3%. He noted that Bay Area rents are surging, with San Francisco seeing an 11% increase in Q2 2026, a 25-year high, and vacancy at a 25-year low of 3.7%. In-place rents at CMCT's Bay Area properties are approximately 12% below asking rents, positioning the company for continued NOI growth. Q: What is the company's strategy regarding the potential sale of real estate assets?A: David Thompson, CEO, reiterated that the company continues to evaluate the sale of one or more assets. The goal is to strengthen the balance sheet and close the significant gap between the current share price and the intrinsic value of the portfolio. Q: What caused the increase in losses from unconsolidated entities in the quarter?A: Brandon Hill explained that the loss from unconsolidated entities increased to $3.2 million from $437,000, primarily driven by noncash fair value adjustments to real estate at two unconsolidated office entities and two unconsolidated multifamily entities. Excluding this JV loss, consolidated NOI increased 22% year-over-year. Q: Can you provide an update on the office segment and its leasing activity?A: Stephen Altebrando noted that excluding the Oakland office asset, leased occupancy increased to 84.4%, up 470 basis points year-over-year. The company executed approximately 16,000 square feet of leases in Q2 and is seeing steady leasing interest at assets with vacancy in Los Angeles and Austin. Office NOI declined to $4 million from $5.5 million, but this was primarily due to the $2.4 million increase in JV loss. Q: What is the status of the hotel renovation and its impact on performance?A: Stephen Altebrando stated that the renovation of the Sheraton Grand's public spaces is substantially complete, following the full renovation of all 505 guestrooms. This has positioned the hotel for improved performance, with hotel NOI increasing 11% year-over-year. The company is also evaluating adding 8 new guestrooms by converting underutilized space, which is expected to be highly accretive. Q: What are the latest developments regarding the company's financing activities?A: Stephen Altebrando mentioned that the company extended its mortgage on 1150 Clay, a Class A Oakland multifamily asset, until mid-2027. They are also working to refinance the Sheraton Grand mortgage, aiming to increase the loan balance and reduce the borrowing spread given the completed renovations. Q: What is the plan for the Oakland office property, given its mortgage maturity?A: Stephen Altebrando confirmed that the nonrecourse mortgage on the Oakland office property matured in early July. The company elected not to invest additional capital to refinance and is engaging with the servicer on a long-term resolution. The asset generated approximately $445,000 of income after debt service in Q2 2026. Q: How are the new multifamily assets in Los Angeles performing?A: Stephen Altebrando reported that 701 South Hudson, a partial office-to-residential conversion, is now 94.1% occupied, with predevelopment work ongoing for 50 entitled units on the surface lot. At 1915 Park, a ground-up development in Echo Park, the property achieved 58.3% leased by quarter end. Q: What is the outlook for supply growth in the multifamily markets where CMCT operates?A: Stephen Altebrando noted that supply growth in the Bay Area and Oakland markets remains very low and is anticipated to stay low for the foreseeable future due to elevated construction costs. This constrained supply, combined with strong demand from AI-related employment growth, is expected to support continued rent growth and occupancy improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Friday, May 8, 2026 at 12 p.m. ET Chief Executive Officer — David Thompson Chief Financial Officer — Steve Altebrando Vice President, Finance — Brandon Hill David Thompson: Hello, everyone, and thank you for joining us today. I would like to begin with an update on the strategic plan we outlined on prior calls: strengthen our balance sheet, improve liquidity, and sharpen our focus on premier multifamily assets. We made meaningful progress against those priorities in the first quarter. Over the past several months, we have taken actions to position Creative Media & Community Trust Corporation for long-term stability and growth. During the quarter, we completed the redemption of $243 million of preferred stock into common stock. This was a transformational step for the company that significantly improved our balance sheet and will improve our funds from operations starting in 2026. We expect the redemption to increase our FFO by approximately $16 million per year and return the company's capital structure back in line with our long-term targets. Since first announcing our plan to strengthen our balance sheet and improve liquidity in September 2024, the company has redeemed $396 million of preferred stock into common stock. In parallel, we have also shifted our financing strategy toward an asset-based approach. We have completed financings on nine assets and have fully retired our recourse credit facility. As a result, we now operate with minimal recourse debt, significantly reducing risk and improving our flexibility. We also sold our lending division in January 2026. After accounting for debt repayment, transaction expenses, and other related items, this transaction yielded net cash proceeds to the company of approximately $31 million. In summary, we believe that we have restored the company to a position of financial health. With a stronger balance sheet, improved liquidity, and a more focused portfolio, we are now well positioned for growth. Going forward, our primary focus is on improving FFO in 2026 and 2027. We believe there are two key levers that will enable us to achieve this. First, we are focused on improving property-level performance across our portfolio. Second, we expect a substantial reduction in preferred dividend obligations. As a reminder, we completed the redemption near the end of the first quarter, so the impact of that action was only minimally reflected in our first quarter FFO. The full benefit of that redemption will begin in the second quarter. In addition, we are continuing to take proactive steps to further strengthen our financial profile. We are actively working to extend debt maturities on a handful of assets, and at the same time, we will continue to evaluate selective asset sales where we see opportunities to unlock value, improve portfolio quality, or redeploy capital more efficiently. We believe that executing on these priorities is critical to reducing what we believe is a substantial gap between our current share price and the intrinsic value of the portfolio. To put that in perspective, on a cost basis, our undepreciated book value was approximately $147 per share at the end of the first quarter. We believe this highlights the underlying value of our assets and reinforces the opportunity ahead as we translate operational improvements and capital structure efficiencies into stronger financial performance. Now turning to net operating income and trends for the first quarter. Starting with office, NOI declined approximately $0.6 million year-over-year. This was primarily driven by a one-time benefit in the prior-year period related to a tax appeal we won and which should not recur this year. Excluding our Oak Glen 2 office asset, our office lease percentage was approximately 85.7% at the end of the first quarter, representing a 470 basis point increase year-over-year. In our multifamily segment, performance was notably stronger. Excluding our joint venture properties, NOI increased 64% year-over-year. When including our JV properties, NOI increased modestly, primarily due to noncash changes in appraised values. Occupancy across the multifamily portfolio improved to 89.6% at quarter-end, an increase of 940 basis points compared to the prior year. Importantly, after several very challenging years in Oakland, we are beginning to see early signs of recovery supported by improving fundamentals in that market. Turning to our hotel asset, NOI declined by approximately $0.7 million year-over-year. This was largely attributable to temporary factors, including renovation-related disruptions early in the quarter and an issue in one of the mechanical systems that temporarily removed a number of rooms from service in March. However, I am pleased to report that the renovation was substantially completed during the first quarter. Over the past two years, we have renovated all 505 guest rooms, along with the property's common areas, positioning the asset for improved performance going forward. In summary, we continue to see encouraging operating trends across the multifamily portfolio as well as in our Los Angeles and Austin office assets and at the company's hotel property in Sacramento. With that, I will turn the call over to Steve to provide additional color on our refinancing activities and property-level performance. Thanks. Steve Altebrando: The actions we have taken over the past several quarters have significantly improved our balance sheet and will strengthen our funds from operations. We are now well positioned to benefit from improving fundamentals, particularly in our multifamily assets in the Bay Area. Today, Creative Media & Community Trust Corporation owns 621 residential units across two premier Class A assets in the market. After several challenging years, we are beginning to see the recovery gain momentum, supported by a strengthening San Francisco residential market with demand increasingly bolstered by growth in AI-related employment and investment. At the end of the first quarter, our Oakland multifamily occupancy increased to 91.9%, representing an improvement of 860 basis points compared to the end of the first quarter last year. In addition, we are also seeing concessions ease in the market, particularly at our 1150 Clay asset. More broadly, in the adjacent Downtown San Francisco market, multifamily fundamentals have rebounded significantly. In 2025, rent growth reached 7.6%, the highest growth rate in 25 years, followed by an additional 7% increase in 2026. Vacancy has declined to 4.3%, the lowest level in nearly 20 years. In Oakland, we are also seeing encouraging signs of recovery. Vacancy has declined to 7.8% at the end of the first quarter, down from a peak of approximately 18% in 2021. Importantly, rent growth turned positive in 2025 after three consecutive years of decline and increased by 2.9% in 2026. Turning to Los Angeles, we have made solid progress across our two new LA multifamily assets. At 701 South Hudson, our partial conversion of office to residential is now 88.2% occupied. As we mentioned on our last call, we received entitlements in 2026 to build an additional 50 units on the back surface lot of the property. We are currently working on predevelopment and anticipate having the option to start that project later this year. At 1915 Park, our ground-up development in Echo Park, we achieved 52.8% leased at quarter-end. This 36-unit project delivered in the fourth quarter is located in a highly desirable, walkable submarket with significant dining and entertainment options. The development is a joint venture with an international pension fund and was built on land adjacent to our office property at 1910 West Sunset. Including our joint ventures, we now have five operating multifamily assets. Turning to the office segment, we executed approximately 20.162 thousand square feet of leases in the first quarter and continue to see an active pipeline of activity, particularly in LA and Austin. Excluding the company's one Oakland office asset, our lease percentage stood at 85.7% at the end of the first quarter, representing an improvement of 470 basis points year-over-year. At 11600 Wilshire Boulevard, we recently commenced a renovation program focused on several small suites. We believe this targeted investment will enhance leasing activity and tenant demand. This project is expected to be completed over the next few months. Finally, in our hotel segment, we have substantially completed the renovation of the property's public spaces, following the full renovation of all 505 guest rooms. This marks the first comprehensive renovation of the property since its acquisition in 2008 and positions the hotel well for improved performance in 2026 and beyond. We are also evaluating an opportunity to add eight new guest rooms by converting currently underutilized space, which we believe would be highly accretive. Turning to financing, we are actively engaged in three initiatives. At the Sheraton Grand, with the renovation now substantially complete, we believe there is an opportunity to both increase the loan balance and reduce the borrowing spread. At 1150 Clay, we are in active discussions with the lender and anticipate securing a one-year extension on the mortgage as we continue to work to improve the asset's NOI. Finally, at our Oakland office property, we are seeking an extension of the loan maturity. However, we cannot guarantee we will reach an agreement with the lender. For context, in 2025, this asset generated $0.8 million of cash flow after debt service. With that, I will turn the call over to Brandon. Brandon Hill: Thank you, Steve. Good afternoon. I am going to spend a few minutes going over the comparative financial highlights for 2026 versus 2025, starting with our segment NOI, which was $9.8 million in 2026 compared to $11.8 million in the prior-year comparable period. Broken down by segment, the decrease of approximately $1.9 million was driven by decreases of $0.728 million from our hotel property, $0.602 million from our office properties, and $0.59 million from our lending business. Our hotel segment NOI for Q1 2026 was $4 million versus $4.7 million in Q1 2025. This decrease was largely attributable to temporary factors, including a renovation-related disruption early in the quarter and an issue in one of the mechanical systems that temporarily removed a number of rooms from service in March. Our office segment NOI for Q1 2026 was $6.5 million versus $7.1 million in Q1 2025. The decrease was primarily driven by a decrease in tenant reimbursement revenue at an office property in Oakland, California, and an increase in real estate tax expense at an office property in Beverly Hills, California, driven by a tax refund recorded in the prior-year period. In January 2026, we completed the sale of our lending business, First Western, for a purchase price of approximately $44.9 million. As the lending segment activity was de minimis during the period it remained under our ownership during Q1 2026, related amounts were excluded from segment-level activity. Our lending division NOI was $0.59 million in the prior-year period. Our multifamily segment net operating loss of $113,000 remained fairly consistent compared to the prior-year comparable period. Below the segment NOI line, we had an increase in depreciation and amortization expense of $1.2 million, primarily due to an increase in tenant improvement amortization at an office property located in Beverly Hills, California, as well as an increase at our hotel property due to renovation projects that have increased depreciable assets. We also had an increase in loss on early extinguishment of debt of $0.705 million, which was incurred in connection with the full payoff of our lending division revolving credit facility during 2026. These were partially offset by a gain on sale of $1.7 million as a result of our sale of First Western during Q1 2026. Our FFO was negative $28.8 million, or negative $58.47 per diluted share, compared to negative $5.4 million, or negative $900.83 per diluted share in the prior-year comparable period. The decrease in our FFO was primarily driven by an increase in preferred stock dividends of $21.9 million, a decrease of approximately $1.9 million in total segment NOI, and an increase of $0.705 million in loss on early extinguishment of debt, partially offset by a decrease of $1.3 million in redeemable preferred stock dividends. Our core FFO was negative $5.9 million, or negative $11.89 per diluted share, compared to negative $5.1 million, or negative $846.5 per diluted share, in the prior-year comparable period. This decrease in core FFO is attributable to the previously discussed changes in FFO, while not impacted by the increase in loss on early extinguishment of debt or the increase in redeemable preferred stock redemptions, as these are excluded from our core FFO calculation. With that, we can open the line for questions. Operator: We will now open the call for questions. If you are using a speakerphone, please pick up your handset before pressing the keys. Showing no questions, this concludes our question and answer session. And the conference has also now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Creative Media & Community Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Creative Media & Community Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 8, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CMCT Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management executed a transformational redemption of $243 million in preferred stock into common stock to align the capital structure with long-term targets and reduce dividend obligations. The company transitioned to an asset-based financing strategy, successfully retiring its recourse credit facility to minimize corporate-level risk and improve operational flexibility. Strategic focus has shifted toward premier multifamily assets, particularly in the Bay Area, where management is seeing early signs of recovery in fundamentals and occupancy. The sale of the lending division in January 2026 for $31 million in net proceeds was a key step in sharpening the portfolio focus and improving liquidity. Office segment performance was impacted by the non-recurrence of a prior-year tax appeal benefit, though leasing activity remains active in the Los Angeles and Austin markets. Hotel segment declines were attributed to temporary mechanical issues and renovation-related disruptions, which management believes are now resolved following the completion of a comprehensive 505-room renovation. Management expects a substantial improvement in Funds From Operations (FFO) starting in the second quarter of 2026, driven by an estimated $16 million annual reduction in preferred dividend obligations. The company is targeting property-level performance improvements as a primary lever for FFO growth throughout 2026 and 2027. Strategic initiatives include evaluating selective asset sales to unlock value and bridge the gap between the current share price and the undepreciated book value of $147 per share. Development plans include the potential start of a 50-unit residential project on a surface lot in Los Angeles later this year, following the receipt of entitlements. Financing efforts are focused on extending debt maturities for specific Oakland assets and refinancing the Sheraton Grand to increase loan balances and reduce borrowing spreads. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. A one-time tax refund benefit in the prior-year period created a difficult year-over-year comparison for the office segment NOI. The company recorded a $0.705 million loss on early extinguishment of debt related to the full payoff of the lending division's revolving credit facility. Management flagged ongoing negotiations regarding a loan maturity extension for an Oakland office property, noting that an agreement with the lender is not guaranteed. Hotel NOI was specifically pressured by a mechanical system failure in March that temporarily removed a portion of room inventory from service.

LOS ANGELES, May 08, 2026--(BUSINESS WIRE)--Creative Media & Community Trust Corporation (NASDAQ: CMCT) ("we", "our", "CMCT", or the "Company") today reported operating results for the three months ended March 31, 2026. On March 26, 2026, the Company effected a 1-for-10 reverse stock split on the Company’s Common Stock, par value $0.001 per share (the "Common Stock"), and on April 20, 2026, the Company effected a 1-for-10 reverse stock split on its Common Stock. All of the share and per share amounts in this release have been adjusted to give retroactive effect to the reverse stock splits (collectively, the "Reverse Stock Splits"). First Quarter 2026 Highlights Real Estate Portfolio CMCT’s office portfolio was 73.1% leased as of March 31, 2026 (85.7% leased when excluding our one Oakland office building (the "Oakland Office Building"), compared to 81.0% leased as of March 31, 2025). Executed 20,562 square feet of leases with terms longer than 12 months. CMCT’s same-store multifamily portfolio occupancy was 91.4% as of March 31, 2026, representing a 1,120 basis point improvement from the first quarter of 2025. Financial Results Net loss attributable to common stockholders of $(34.7) million, or $(70.52) per diluted share. Funds from operations attributable to common stockholders ("FFO")(3)1 was $(28.8) million, or $(58.47) per diluted share. Core FFO attributable to common stockholders ("Core FFO")(4)1 was $(5.9) million, or $(11.89) per diluted share. Undepreciated common book value of Common Stock was $147.22 per share. Asset Sales and Preferred Redemptions On January 21, 2026, we completed the sale of our lending business ("First Western") for a purchase price of approximately $44.9 million2. Redeemed approximately $242.8 million of Preferred Stock, into shares of our Common Stock in March 2026 ("March Redemption"); the redemption is expected to significantly reduce preferred dividends beginning in the second quarter of 2026. Management Commentary The Company made significant progress on its plan to accelerate its focus towards premier multifamily assets, strengthen the balance sheet and improve liquidity. Operating trends continue to improve across the multifamily portfolio, the Los Angeles and Austin office assets and the company’s one hotel. Since announcing this plan in September 2024, the Company has significantly improved its balance sheet having completed financings on nine assets, fully retired its recourse credit facility, sold its lending business and redeemed approximately $396.2 million of Preferred Stock, into shares of the Company’s Common Stock, including $242.8 million of redemptions in the first quarter of 2026. The March Redemption is expected to improve CMCT’s FFO1 by approximately $16.0 million per year3 and returns the Company’s capital structure back to its long-term target (approximately 38% common equity, 7% preferred equity and 55% debt when adjusting for the Redemption), on a fair value basis. Given the company’s significantly improved financial position, the company does not currently intend to redeem, at the Company’s election, additional Preferred Stock in shares of Common Stock. However, the Company will evaluate redemption requests submitted by holders of Preferred Stock at the time it receives such requests and may elect to redeem those Preferred Shares in Common Stock or cash, at the Company’s discretion. Operating Trends The Company believes there is an opportunity to significantly improve net operating income of its multifamily portfolio by increasing occupancy and by renewing leases at market rents which exceed in-place rents. CMCT’s multifamily occupancy, excluding its premier, Class A Echo Park Los Angeles apartment building which just began lease-up during the fourth quarter of 2025, was 91.4% as of March 31, 2026, representing a 1,120 basis point improvement from the first quarter of 2025. The Company is seeing improving demand at its Bay Area multifamily buildings with occupancy improving to 91.9% at the end of the first quarter, representing a 860 basis point improvement from the first quarter 2025. At the end of the first quarter, the recently developed Echo Park multifamily building was 52.8% occupied. In the office segment, excluding the Oakland Office Building, the leased percentage was 85.7% at the end of March 31, 2026 representing a 470 basis point improvement from the first quarter of 2025. At 11600 Wilshire Boulevard, the Company expects to finalize its renovation program on several small suites in the first half of 2026, which is anticipated to fuel leasing activity. The company is also seeing an increase in activity at its Culver City and Austin creative office assets. The Company owns one office asset in Oakland, where demand continues to be challenging. The mortgage on the asset matures in the third quarter of 2026; the Company is currently seeking an extension of the maturity but cannot guarantee it will reach an agreement with the lender. In the hotel segment, the Company has substantially completed the renovation of the public space during the first quarter of 2026, following the renovation of all 505 rooms, setting the property up well for 2026 and beyond. The renovation was the first large scale renovation of the property since it was acquired in 2008. The company is also exploring an opportunity to convert underutilized space into 8 additional rooms. Asset Sales In January 2026, the Company completed the sale of its lending division for a purchase price of approximately $44.9 million (which is net of the outstanding balance of debt related to the 2023 securitization of certain loan receivables), subject to post-closing adjustments. Giving effect to the payment of other debt, transaction expenses and other matters, the transactions yielded net cash proceeds to the Company of approximately $31.2 million. The Company continues to evaluate additional asset sales. First Quarter 2026 Results Real Estate Portfolio As of March 31, 2026, our real estate portfolio consisted of 27 assets, all of which were fee-simple properties and five of which we own through investments in unconsolidated joint ventures. Our unconsolidated joint ventures contain one office property, three multifamily properties (one of which has been partially converted from office into multifamily units and is now classified as a multifamily property) and one commercial development site. As of March 31, 2026, our 12 office properties, totaling approximately 1.3 million rentable square feet, were 73.1% occupied; our one hotel with an ancillary parking garage, which has a total of 505 rooms, had RevPAR of $178.71 for the three months ended March 31, 2026, and our five multifamily properties were 89.6% occupied. Additionally, as of March 31, 2026, we had eight development sites (two of which were being used as parking lots). Financial Results Net loss attributable to common stockholders was $(34.7) million, or $(70.52) per diluted share of Common Stock, for the three months ended March 31, 2026, compared to a net loss attributable to common stockholders of $(11.9) million, or $(1,983.00) per diluted share of Common Stock, for the same period in 2025. The increase in net loss attributable to common stockholders was primarily driven by an increase in redeemable preferred stock redemptions of $21.9 million and a decrease in segment net operating income of $1.9 million. FFO(3)4 was $(28.8) million, or $(58.47) per diluted share of Common Stock, for the three months ended March 31, 2026, compared to $(5.4) million, or $(900.83) per diluted share of Common Stock, for the same period in 2025. The decrease in FFO4 was primarily attributable to an increase in redeemable preferred stock redemptions of $21.9 million, a decrease of $1.9 million in segment net operating income and an increase of $705,000 in loss on early extinguishment of debt, partially offset by a decrease in redeemable preferred stock dividends of $1.3 million. Core FFO(4)5 was $(5.9) million, or $(11.89) per diluted share of Common Stock for the three months ended March 31, 2026, compared to $(5.1) million, or $(846.50) per diluted share of Common Stock for the same period in 2025. The decrease in Core FFO5 is attributable to the aforementioned changes in FFO5, while not impacted by the increase in loss on early extinguishment of debt or the increase in redeemable preferred stock redemptions, as these are excluded from our Core FFO5 calculation. Segment Information Our reportable segments during the three months ended March 31, 2026 and 2025 consisted of three types of commercial real estate properties, namely, office, hotel and multifamily. Total segment net operating income ("NOI")(5) was $9.8 million for the three months ended March 31, 2026, compared to $11.8 million for the same period in 2025. Office Same-Store Same-store(2) office segment NOI(5) was $6.5 million for the three months ended March 31, 2026, a decrease from $7.1 million compared to the same period in 2025, while same-store(1) office Cash NOI(6)5 was $6.9 million for the three months ended March 31, 2026, a decrease from $7.8 million in the same period in 2025. The decrease in same-store(2) office Segment NOI(5) and same-store(1) office Cash NOI(5) was primarily driven by a decrease in tenant reimbursement revenue at an office property in Oakland, California and an increase in real estate tax expense at an office property in Beverly Hills, California driven by a tax refund recorded in the prior-year period. At March 31, 2026, the Company’s same-store(2) office portfolio was 73.1% occupied, an increase of 290 basis points year-over-year on a same-store(2) basis, and 73.1% leased, an increase of 170 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 $58.47 at March 31, 2026, compared to $61.14 at March 31, 2025. During the three months ended March 31, 2026, the Company executed 20,562 square feet of leases with terms longer than 12 months at our same-store(2) office portfolio. Total Office Segment NOI(5) decreased to $6.5 million for the three months ended March 31, 2026, as compared to $7.1 million for the same period in 2025, driven by the aforementioned decrease in same-store(2) office Segment NOI(5). Hotel Hotel Segment NOI(5) was $4.0 million for the three months ended March 31, 2026, as compared to $4.7 million for the same period in 2025. The decrease was largely attributable to temporary factors, including a renovation-related disruption early in the quarter, and an issue in one of the mechanical systems that temporarily removed a number of rooms from service in March. Multifamily Our Multifamily Segment consists of two multifamily buildings located in Oakland, California as well as three investments in multifamily buildings in Los Angeles, California owned through unconsolidated joint ventures. Our multifamily segment NOI(5) remained fairly consistent at $(613,000) for the three months ended March 31, 2026, compared to $(620,000) for the same period in 2025. As of March 31, 2026, our Multifamily Segment was 89.6% occupied, monthly rent per occupied unit(8) was $2,493 and net monthly rent per occupied unit(9) was $2,156, compared to 80.2%, $2,461, and $2,341, respectively, as of March 31, 2025. Debt and Equity During the three months ended March 31, 2026, the Company redeemed 7,734,130 shares of Series A1 Preferred Stock, 1,957,823 shares of Series A Preferred Stock, and 21,760 shares of Series D Preferred Stock (all shares of which were redeemed in shares of Common Stock). These redemptions resulted in the collective issuance of 2,612,161 shares of Common Stock (adjusted for the Reverse Stock Splits) during the three months ended March 31, 2026. As of May 1, 2026, the Company has received redemption requests related to Series A1 Preferred Stock and Series A Preferred Stock, totaling approximately $204,000, which the Company intends to redeem in shares of Common Stock as soon as practical after the Company opens its trading window in accordance with its Insider Trading Policy. We are evaluating a potential refinancing and are in discussions with and receiving proposals from potential lenders related to the Sheraton Hotel that could result in an upsized loan and a reduced interest rate. In connection with the closing of the sale of First Western, we repaid in full the remaining balance of $10.4 million under the Lending Division Revolving Credit Facility. Dividends We declared preferred stock dividends on our Series A, Series A1 and Series D Preferred Stock for the first quarter of 2026. The dividends were payable on April 15, 2026 to holders of record at the close of business on April 5, 2026. The dividend amounts are as follows: *The quarterly cash dividend of $0.399375 per share represents an annualized dividend rate of 6.39% (2.5% plus the federal funds rate of 3.89% on the applicable determination date). The terms of the Series A1 Preferred Stock provide for cumulative cash dividends (if, as and when authorized by the Board of Directors) on each share of Series A1 Preferred Stock at a quarterly rate of the greater of (i) 6.00% of the Series A1 Stated Value, divided by four (4) and (ii) the Federal Funds (Effective) Rate on the applicable determination date, plus 2.50%, of the Series A1 Stated Value, divided by four (4), up to a maximum of 2.50% of the Series A1 Stated Value per quarter. About the Data Descriptions of certain performance measures, including Segment NOI, Cash NOI, FFO attributable to common stockholders, and Core FFO attributable to common stockholders are provided below. Certain of these performance measures—Cash NOI, FFO attributable to common stockholders and Core FFO attributable to common stockholders—are non-GAAP financial measures. Refer to the subsequent tables for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure. FORWARD-LOOKING STATEMENTS This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (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 continuing higher interest rates on the operations and profitability of CMCT and (v) general economic, market and other conditions, including the effects of high unemployment rates, continued or renewed inflation and any recession or slowdown in economic growth, and (vi) our approach to artificial intelligence ("AI"). Additional important factors that could cause CMCT’s actual results to differ materially from CMCT’s expectations are discussed in "Item 1A—Risk Factors" in CMCT’s Annual Report on Form 10-K for the year ended December 31, 2025 and in Part II, Item 1A of CMCT’s Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. 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 expressed or implied 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 laws. View source version on businesswire.com: https://www.businesswire.com/news/home/20260508387185/en/ Contacts For Creative Media & Community Trust Corporation Media Relations: Bill Mendel, 212-397-1030 [email protected] or Shareholder Relations: Steve Altebrando, 646-652-8473 [email protected]