CMCT Increases Common Stock Dividend
March 08 2022 - 8:30AM
Business Wire
CMCT (NASDAQ: CMCT and TASE: CMCT-L) announced today that its
Board of Directors has declared a quarterly cash dividend of $0.085
per share of common stock, an approximate 13% increase from the
prior quarter. This dividend represents a 4.6% annualized yield
utilizing the March 7 closing price. The dividend will be paid on
April 1, 2022 to stockholders of record at the close of business on
March 19, 2022.
“The board is pleased to declare this initial increase in our
dividend,” said David Thompson, Chief Executive Officer of CMCT.
“Our goal is to continue to grow the dividend as we benefit from
our dramatically reduced cost structure, an improving leasing
environment and continued progress on our value-add assets.”
In January 2022, CMCT announced that CIM Group, the manager to
CMCT, agreed to a fee waiver that is expected to reduce CMCT’s
management fee by approximately 55%, resulting in $0.21 per share
of annualized cost savings. The fee waiver went into effect January
1, 2022 (the fee for the fourth quarter of 2021 was calculated
under the prior fee structure). Management has recommended to the
Board that CMCT over time use substantially all of the cost savings
achieved by the lower management fee to reward common stockholders
through dividend increases starting with this initial increase.
In addition, the Board of Directors has declared a quarterly
cash dividend of $0.34375 per share of CMCT's Series A Preferred
Stock for the second quarter of 2022. The dividend will be payable
as follows: $0.114583 per share to be paid on May 16, 2022 to
Series A Preferred Stockholders of record on May 5, 2022; $0.114583
per share to be paid on June 15, 2022 to Series A Preferred
Stockholders of record on June 5, 2022; and $0.114583 per share to
be paid on July 15, 2022 to Series A Preferred Stockholders of
record on July 5, 2022.
The Board of Directors has also declared a quarterly cash
dividend of $0.353125 per share of CMCT’s Series D Preferred Stock
for the second quarter of 2022. The dividend will be payable as
follows: $0.117708 per share to be paid on May 16, 2022 to Series D
Preferred Stockholders of record on May 5, 2022; $0.117708 per
share to be paid on June 15, 2022 to Series D Preferred
Stockholders of record on June 5, 2022; and $0.117708 per share to
be paid on July 15, 2022 to Series D Preferred Stockholders of
record on July 5, 2022. For shares of Series A Preferred Stock and
Series D Preferred Stock issued during the second quarter of 2022,
as the case may be, the dividend will be prorated from the date of
issuance, and the monthly dividend payments will reflect such
proration, as applicable.
ABOUT CMCT
CMCT is a real estate investment trust that seeks to own,
operate and develop premier multifamily and creative office assets
in vibrant and emerging communities throughout the United States.
CMCT is a leader in creative office, acquiring and developing
properties catering to rapidly growing industries such as
technology, media and entertainment. CMCT seeks to apply the
expertise of CIM to the acquisition, development and operation of
top-tier multifamily properties situated in dynamic markets with
similar business and employment characteristics to its creative
office investments. CMCT is operated by affiliates of CIM Group,
L.P., a vertically-integrated owner and operator of real assets
with multi-disciplinary expertise and in-house research,
acquisition, credit analysis, development, finance, leasing, and
onsite property management capabilities.
(www.cimcommercial.com).
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. 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 include, among others, statements
about CMCT’s plans and objectives relating to future growth and the
future dividend of CMCT’s common stock. 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 scope, severity
and duration of the current pandemic of COVID-19, and actions taken
to contain the pandemic or mitigate its impact, and the
winding-down of or termination of governmental assistance programs
implemented to address the pandemic, (ii) the adverse effect of
COVID-19 on the financial condition, results of operations, cash
flows and performance of CMCT and its tenants and business
partners, the real estate market and the global economy and
financial markets, among others, (iii) the timing, form, and
operational effects of CMCT’s development activities, (iv) the
ability of CMCT to raise in place rents to existing market rents
and to maintain or increase occupancy levels, (v) fluctuations in
market rents, including as a result of COVID-19, (vi) the effects
of inflation and higher interest rate 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, 2020. 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 CMCT believes
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 included 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 law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220308005776/en/
Media Relations: Karen Diehl Diehl Communications
310-741-9097 karen@diehlcommunications.com or Investor
Relations: Steve Altebrando, 646-652-8473
investors@cimcommercial.com
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