Creative Media & Community Trust Corporation (NASDAQ: CMCT
and TASE: CMCT-L) (“we”, “our”, “CMCT”, or the “Company”) today
reported operating results for the three and nine months ended
September 30, 2022.
Third Quarter 2022 Highlights
Real Estate Portfolio
- Stabilized office portfolio(1) was 86.5% leased.
- Executed 58,666 square feet of leases with terms longer than 12
months.
- Purchased an Austin, Texas property for $1.9 million. We are
currently working on multifamily pre-development on this and an
already owned adjacent site.
Financial Results
- Repurchased $4.4 million of common stock at an average price of
$7.10 per share.
- Repurchased $66.7 million of Series L Preferred Stock at
approximately 96.6% of stated value.
- Net loss attributable to common stockholders of $11.7 million,
or $0.50 per diluted share.
- Funds from operations (“FFO”) attributable to common
stockholders(3) was $(6.6) million, or $(0.28) per diluted
share.
- Core FFO attributable to common stockholders(4) was $(1.5)
million, or $(0.07) per diluted share.
Management Commentary
“We had another quarter of robust leasing activity and continue
to make progress on our multifamily value-add and development
pipeline,” said David Thompson, Chief Executive Officer of Creative
Media & Community Trust Corporation. “We executed an
approximately 18,000 square foot lease for the retail space at our
Beverly Hills property in the quarter – we expect to start
recognizing revenue on this lease during the first half of
2023.
“CMCT has an attractive pipeline of multifamily development
opportunities. We plan to start converting 4750 Wilshire
Boulevard’s unleased space into luxury multifamily units by early
2023 and, in connection with the project, anticipate closing on
equity contributions from coinvestors and a mortgage on the
property at about the same time. We intend to leverage our
distribution and development capabilities to execute on our
pipeline using an asset-light approach, where we raise third party
capital on an asset level basis, maintain a minority interest and
earn a percentage of the profits. We believe this asset light
approach is a compelling model for the Company that will contribute
to strong returns on invested capital.
“We also took steps to improve our balance sheet and liquidity
which we believe will position us to take advantage of potential
market opportunities. We saw an increase in our preferred capital
raising activity and expect to refinance our credit facility in the
fourth quarter. In addition, we repurchased 621,088 shares of
common stock in the quarter and repurchased $66.7 million of Series
L Preferred Stock at a 3.4% discount to stated value.”
Third Quarter 2022 Results
Real Estate Portfolio
As of September 30, 2022, our real estate portfolio consisted of
19 assets, all of which were fee-simple properties, including one
office property which the Company has an approximate 44% ownership
interest through its investment in an unconsolidated joint venture.
The portfolio included 13 office properties and four development
sites (one being used as a parking lot), totaling approximately 1.3
million rentable square feet, and one 503-room hotel with an
ancillary parking garage.
Financial Results
Net loss attributable to common stockholders was $11.7 million,
or $0.50 per diluted share of common stock, for the three months
ended September 30, 2022, compared to a net loss attributable to
common stockholders of $3.2 million, or $0.14 per diluted share of
common stock, for the same period in 2021.
FFO attributable to common stockholders(3) was $(6.6) million,
or $(0.28) per diluted share of common stock, for the three months
ended September 30, 2022, compared to $1.8 million, or $0.08 per
diluted share of common stock, for the same period in 2021. The
increase in net loss attributable to common stockholders and
decrease in FFO and was primarily attributable to an increase in
redeemable preferred stock redemptions of $4.8 million (resulting
from amounts recognized in connection with the Series L Repurchase
(defined on page 3) during the three months ended September 30,
2022), a decrease in lending segment net operating income of $3.7
million, an increase in redeemable preferred stock dividends
declared or accumulated of $1.9 million, a decrease in office
segment net operating income of $994,000 and an increase in general
and administrative expenses of $600,000. The aforementioned amounts
were partially offset by an increase in hotel segment net operating
income of $1.5 million, a decrease in asset management fees of $1.3
million and a decrease in provision for income taxes of
$759,000.
Core FFO attributable to common stockholders(4) was $(1.5)
million, or $(0.07) per diluted share of common stock, for the
three months ended September 30, 2022, compared to $2.0 million, or
$0.08 per diluted share of common stock, for the same period in
2021. The decrease in Core FFO is attributable to the
aforementioned changes in FFO, while not impacted by the increases
in redeemable preferred stock redemption as these are excluded from
our Core FFO calculation.
Segment Information
Our reportable segments during the three months ended September
30, 2022 and 2021 consisted of two types of commercial real estate
properties, namely, office and hotel, as well as a segment for our
lending business. Total Segment net operating income (“NOI”)(5) was
$10.1 million for the three months ended September 30, 2022,
compared to $13.3 million for the same period in 2021.
Office
Same-Store
Same-store(2) office Segment NOI(5) decreased to $6.7 million
for the three months ended September 30, 2022, compared to $6.8
million in the same period in 2021, while same-store(1) office Cash
NOI(6) excluding lease termination income increased to $7.1 million
for the three months ended September 30, 2022, compared to $7.0
million in the same period in 2021. The increase in same-store(1)
office Cash NOI(6) excluding lease termination income was primarily
due to increased rental revenue at an office property in Austin,
Texas as a result of higher rental rates and higher occupancy and
an increase in rental revenues at an office property in Los
Angeles, California and an office property in Beverly Hills,
California, both as a result of increased occupancy. These amounts
were partially offset by increased operating expenses at the
aforementioned office property in Austin, Texas and at an office
property in Oakland, California. The decrease in Same-store(2)
office Segment NOI(5) was a result of lease termination income
earned during the three months ended September 30, 2021.
At September 30, 2022, the Company’s same-store(2) office
portfolio was 83.3% occupied, an increase of 490 basis points
year-over-year on a same-store(2) basis, and 86.1% leased, an
increase of 820 basis points year-over-year on a same-store(2)
basis1. The annualized rent per occupied square foot(7) on a
same-store(2) basis was $55.10 at September 30, 2022 compared to
$52.50 at September 30, 2021. During the three months ended
September 30, 2022, the Company executed 52,285 square feet of
leases with terms longer than 12 months at our same-store(2) office
portfolio.
______________________
1 We are no longer classifying
approximately 110,000 square feet of vacant space at its property
at 4750 Wilshire Boulevard in Los Angeles, California as rentable
office square footage as of September 30, 2022 in connection with
the planned conversion of that space from rentable office space to
multifamily units.
Total
Office Segment NOI(5) decreased to $6.5 million for the three
months ended September 30, 2022, from $7.5 million for the same
period in 2021. The decrease is primarily due to a decrease in
non-same-store(2) office Segment NOI(5) of $877,000. This included
a loss from our unconsolidated entity (acquired in February 2022)
included in non-same-store office Segment NOI of $204,000 for the
three months ended September 30, 2022, primarily due to increases
in the unconsolidated joint venture’s administrative expenses as
well as expenses related to the unconsolidated joint venture’s
mortgage debt origination.
Hotel
Hotel Segment NOI(5) increased to $2.4 million for the three
months ended September 30, 2022, from $877,000 for the same period
in 2021, due to an increase in occupancy and average daily rate as
a result of the hospitality industry continuing to recover from the
impact of COVID-19.
Three Months Ended September
30,
2022
2021
Occupancy
73.7
%
66.6
%
Average daily rate(a)
$
164.33
$
137.29
Revenue per available room(b)
$
121.03
$
91.46
______________________
(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.
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 $1.2 million for the three months ended
September 30, 2022, compared to $4.9 million for the same period in
2021. The decrease is primarily due to lower premium income as a
result of lower loan sale volume and a reduction in the market
premium achieved during the three months ended September 30, 2022,
compared to the three months ended September 30, 2021. We expect
lending revenue to be lower materially for the fourth quarter of
2022, when compared to the fourth quarter of 2021 because of lower
loan origination volume compared to 2021, a year when the SBA
temporarily increased guaranteed percentages for SBA 7(a) loan
originations.
Debt and Equity
In May 2022, CMCT’s Board of Directors authorized a repurchase
program of up to $10 million of the Company’s common stock (the
“SRP”). During the three months ended September 30, 2022, CMCT
repurchased 621,088 shares at an average price of $7.10 per share.
As of September 30, 2022, CMCT has made repurchases totaling $4.7
million in aggregate under the SRP.
On September 15, 2022, CMCT repurchased 2,435,284 shares of its
Series L Preferred Stock in a privately negotiated transaction (the
“Series L Repurchase”). The shares were repurchased at a purchase
price of $27.40 per share (a 3.4% discount to the stated value of
$28.37) plus $1.12 per share of accrued and unpaid dividends (or
$2.7 million in the aggregate). The total cost to complete the
Series L Repurchase, including transactions costs of $700,000, was
$70.1 million. In connection with the Series L Repurchase, the
Company recognized redeemable preferred stock redemptions of $4.8
million on its consolidated statement of operations for the three
and nine months ended September 30, 2022.
During the three months ended September 30, 2022, we issued
2,667,001 shares of Series A1 Preferred Stock for aggregate net
proceeds of $57.4 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,
2022, we had net incremental borrowings of $10.0 million on our
revolving credit facility.
In addition, thus far in the fourth quarter of 2022, we have
issued another 2,027,305 shares of Series A1 Preferred stock for
aggregate net proceeds of approximately $46.5 million.
Dividends
On September 22, 2022, we declared a quarterly cash dividend of
$0.0850 per share of our common stock, which was paid on October
17, 2022.
On September 22, 2022, we declared a quarterly cash dividend of
$0.34375 per share of our Series A Preferred Stock for the fourth
quarter of 2022. The dividend will be payable as follows: $0.114583
per share to be paid on November 15, 2022 to Series A Preferred
Stockholders of record on November 5, 2022; $0.114583 per share to
be paid on December 15, 2022 to Series A Preferred Stockholders of
record on December 5, 2022; and $0.114583 per share to be paid on
January 17, 2023 to Series A Preferred Stockholders of record on
January 5, 2023.
On September 22, 2022, we declared a quarterly cash dividend of
$0.375 per share of our Series A1 Preferred Stock for the fourth
quarter of 2022. The dividend will be payable as follows: $0.125
per share to be paid on November 15 , 2022 to Series A1 Preferred
Stockholders of record on November 5, 2022; $0.125 per share to be
paid on December 15, 2022 to Series A1 Preferred Stockholders of
record on December 5, 2022; and $0.125 per share to be paid on
January 17, 2023 to Series A1 Preferred Stockholders of record on
January 5, 2023. For shares of Series A1 Preferred stock issued
during the fourth quarter of 2022, the dividend will be prorated
from the date of issuance, and the monthly dividend payments will
reflect such proration, as applicable.
On September 22, 2022, we declared a quarterly cash dividend of
$0.353125 per share of our Series D Preferred Stock for the fourth
quarter of 2022. The dividend will be payable as follows: $0.117708
per share to be paid on November 15, 2022 to Series D Preferred
Stockholders of record on November 5, 2022; $0.117708 per share to
be paid on December 15, 2022 to Series D Preferred Stockholders of
record on December 5, 2022; and $0.117708 per share to be paid on
January 17, 2023 to Series D Preferred Stockholders of record on
January 5, 2023.
Acquisitions
In July 2022, CMCT acquired 1007 E 7th Street in Austin, Texas
property for $1.9 million. The property is located on a land site
of approximately 7,450 square feet and is adjacent to 1021 E 7th
Street, an office building that CMCT acquired in 2020. CMCT is
actively working on pre-development plans for a future multifamily
development across both sites. In August 2022, CMCT acquired 3109 S
Western Avenue in Jefferson Park, Los Angeles property for
$700,000. CMCT intends to redevelop approximately seven commercial
units totaling 5,635 rentable square feet and six parking stalls
starting in 2024.
During the first half of 2022, CMCT also acquired 3101 S Western
in Jefferson Park, Los Angeles for $2.3 million (CMCT intends to
entitle the property and develop approximately 40 residential units
starting in 2023) and 3022 S Western, an adjacent site, for $5.7
million (CMCT intends to entitle the property and develop 119
residential units starting in 2024).
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, 2021; (ii) sold or
otherwise removed from our consolidated financial statements on or
before September 30, 2022; or (iii) that underwent a major
repositioning project we believed significantly affected its
results at any point during the period commencing on July 1, 2021
and ending on September 30, 2022. When determining our same-store
properties as of September 30, 2022, 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.
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,” or “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 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 scope, severity and duration of the current pandemic
of COVID-19, and actions taken to contain the pandemic or mitigate
its impact, (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 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, 2021 and in CMCT’s Quarterly Report on Form 10-Q for the period
ended September 30, 2022. 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 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.
CREATIVE MEDIA & TRUST
CORPORATION AND SUBSIDIARIES
Consolidated Balance
Sheets
(Unaudited and in thousands,
except share and per share amounts)
September 30, 2022
December 31, 2021
ASSETS
Investments in real estate, net
$
503,790
$
497,984
Investment in unconsolidated entity - at
fair value
12,149
—
Cash and cash equivalents
14,794
22,311
Restricted cash
12,006
11,340
Loans receivable, net
66,627
73,543
Accounts receivable, net
3,930
3,396
Deferred rent receivable and charges,
net
36,408
36,095
Other intangible assets, net
4,665
5,251
Loan servicing asset, net and other
assets
11,228
10,946
TOTAL ASSETS
$
665,597
$
660,866
LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND EQUITY
LIABILITIES:
Debt, net
$
216,442
$
201,145
Accounts payable and accrued expenses
24,339
26,751
Intangible liabilities, net
78
237
Due to related parties
3,984
4,541
Other liabilities
19,537
16,861
Total liabilities
264,380
249,535
COMMITMENTS AND CONTINGENCIES
REDEEMABLE PREFERRED STOCK: Series A
cumulative redeemable preferred stock, $0.001 par value; 36,000,000
shares authorized; 1,266,400 and 1,265,200 shares issued and
outstanding, respectively, as of September 30, 2022 and 1,633,965
and 1,631,965 shares issued and outstanding, respectively, as of
December 31, 2021; liquidation preference of $25.00 per share,
subject to adjustment
29,073
37,782
EQUITY:
Series A cumulative redeemable preferred
stock, $0.001 par value; 36,000,000 shares authorized; 7,553,938
and 7,134,335 shares issued and outstanding, respectively, as of
September 30, 2022 and 6,492,632 and 6,271,337 shares issued and
outstanding, respectively, as of December 31, 2021; liquidation
preference of $25.00 per share, subject to adjustment
178,287
156,431
Series A1 cumulative redeemable preferred
stock, $0.001 par value; 28,000,000 shares authorized; 2,859,441
shares issued and outstanding as of September 30, 2022 and no
shares issued or outstanding as of December 31, 2021; liquidation
preference of $25.00 per share, subject to adjustment
69,490
—
Series D cumulative redeemable preferred
stock, $0.001 par value; 27,000,000 shares authorized; 56,857
shares issued and outstanding as of September 30, 2022 and 56,857
shares issued and outstanding as of December 31, 2021; liquidation
preference of $25.00 per share, subject to adjustment
1,396
1,396
Series L cumulative redeemable preferred
stock, $0.001 par value; 9,000,000 shares authorized; 8,080,740 and
2,951,876 shares issued and outstanding, respectively, as of
September 30, 2022 and 8,080,740 and 5,387,160 shares issued and
outstanding, respectively, as of December 31, 2021; liquidation
preference of $28.37 per share, subject to adjustment
83,745
152,834
Common stock, $0.001 par value;
900,000,000 shares authorized; 22,737,853 shares issued and
outstanding as of September 30, 2022 and 23,369,331 shares issued
and outstanding as of December 31, 2021.
23
24
Additional paid-in capital
862,360
866,746
Distributions in excess of earnings
(823,523
)
(804,227
)
Total stockholders’ equity
371,778
373,204
Noncontrolling interests
366
345
Total equity
372,144
373,549
TOTAL LIABILITIES, REDEEMABLE PREFERRED
STOCK, AND EQUITY
$
665,597
$
660,866
CREATIVE MEDIA & 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,
2022
2021
2022
2021
REVENUES:
Rental and other property income
$
14,194
$
12,838
$
42,484
$
39,496
Hotel income
7,965
5,212
24,476
10,074
Interest and other income
2,694
6,199
9,078
16,231
Total Revenues
24,853
24,249
76,038
65,801
EXPENSES:
Rental and other property operating
13,334
9,958
37,557
27,363
Asset management and other fees to related
parties
916
2,262
2,757
6,781
Expense reimbursements to related
parties—corporate
511
533
1,459
1,592
Expense reimbursements to related
parties—lending segment
539
55
1,612
1,219
Interest
2,193
2,185
6,766
7,490
General and administrative
1,907
1,625
4,975
5,393
Transaction costs
201
—
201
—
Depreciation and amortization
5,093
5,061
15,071
15,167
Total Expenses
24,694
21,679
70,398
65,005
(Loss) income from unconsolidated
entity
(204
)
—
176
—
(LOSS) INCOME BEFORE PROVISION FOR INCOME
TAXES
(45
)
2,570
5,816
796
Provision for income taxes
187
946
815
2,316
NET (LOSS) INCOME
(232
)
1,624
5,001
(1,520
)
Net (income) loss attributable to
noncontrolling interests
(5
)
—
(19
)
4
NET (LOSS) INCOME ATTRIBUTABLE TO THE
COMPANY
(237
)
1,624
4,982
(1,516
)
Redeemable preferred stock dividends
declared or accumulated
(6,584
)
(4,723
)
(16,763
)
(13,810
)
Redeemable preferred stock deemed
dividends
—
(90
)
(19
)
(253
)
Redeemable preferred stock redemptions
(4,863
)
(27
)
(5,044
)
(53
)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS
$
(11,684
)
$
(3,216
)
$
(16,844
)
$
(15,632
)
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS PER SHARE:
Basic
$
(0.50
)
$
(0.14
)
$
(0.72
)
$
(0.88
)
Diluted
$
(0.50
)
$
(0.14
)
$
(0.72
)
$
(0.88
)
WEIGHTED AVERAGE SHARES OF COMMON STOCK
OUTSTANDING:
Basic
23,209
23,349
23,303
17,784
Diluted
23,209
23,350
23,303
17,784
CREATIVE MEDIA & 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,
2022
2021
2022
2021
Numerator:
Net loss attributable to common
stockholders
$
(11,684
)
$
(3,216
)
$
(16,844
)
$
(15,632
)
Depreciation and amortization
5,093
5,061
15,071
15,167
FFO attributable to common
stockholders
$
(6,591
)
$
1,845
$
(1,773
)
$
(465
)
Redeemable preferred stock dividends
declared on dilutive shares (a)
(6
)
—
(7
)
—
Diluted FFO attributable to common
stockholders
$
(6,597
)
$
1,845
$
(1,780
)
$
(465
)
Denominator:
Basic weighted average shares of common
stock outstanding
23,209
23,349
23,303
17,784
Effect of dilutive securities—contingently
issuable shares (a)
13
3
5
1
Diluted weighted average shares and common
stock equivalents outstanding
23,222
23,352
23,308
17,785
FFO attributable to common stockholders
per share:
Basic
$
(0.28
)
$
0.08
$
(0.08
)
$
(0.03
)
Diluted
$
(0.28
)
$
0.08
$
(0.08
)
$
(0.03
)
______________________
(a)
For the three and nine months ended
September 30, 2022 and 2021, 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 & 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,
2022
2021
2022
2021
Numerator:
Net loss attributable to common
stockholders
$
(11,684
)
$
(3,216
)
$
(16,844
)
$
(15,632
)
Depreciation and amortization
5,093
5,061
15,071
15,167
FFO attributable to common
stockholders
$
(6,591
)
$
1,845
$
(1,773
)
$
(465
)
Redeemable preferred stock redemptions
4,863
27
5,044
53
Redeemable preferred stock deemed
dividends
—
90
19
253
Transaction costs
201
—
201
—
Core FFO attributable to common
stockholders
$
(1,527
)
$
1,962
$
3,491
$
(159
)
Redeemable preferred stock dividends
declared on dilutive shares (a)
(6
)
—
(7
)
—
Diluted Core FFO attributable to common
stockholders
$
(1,533
)
$
1,962
$
3,484
$
(159
)
Denominator:
Basic weighted average shares of common
stock outstanding
23,209
23,349
23,303
17,784
Effect of dilutive securities-contingently
issuable shares (a)
13
3
25
1
Diluted weighted average shares and common
stock equivalents outstanding
23,222
23,352
23,328
17,785
Core FFO attributable to common
stockholders per share:
Basic
$
(0.07
)
$
0.08
$
0.15
$
(0.01
)
Diluted
$
(0.07
)
$
0.08
$
0.15
$
(0.01
)
______________________
(a)
For the three and nine months ended
September 30, 2022 and 2021, 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 & TRUST
CORPORATION AND SUBSIDIARIES
Reconciliation of Net
Operating Income
(Unaudited and in
thousands)
Three Months Ended September
30, 2022
Same-Store
Office
Non-Same-
Store Office
Total Office
Hotel
Lending
Total
Cash net operating income excluding lease
termination income
$
7,050
$
(228
)
$
6,822
$
2,378
$
1,191
$
10,391
Cash lease termination income
—
—
—
—
—
—
Cash net operating income (loss)
$
7,050
$
(228
)
$
6,822
$
2,378
$
1,191
$
10,391
Deferred rent and amortization of
intangible assets, liabilities, and lease inducements
(382
)
79
(303
)
(1
)
—
(304
)
Segment net operating income (loss)
6,668
(149
)
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
)
Transaction costs
(201
)
Depreciation and amortization
(5,093
)
Loss before benefit for income taxes
(45
)
Provision for income taxes
(187
)
Net loss
(232
)
Net loss attributable to noncontrolling
interests
(5
)
Net loss attributable to the Company
$
(237
)
Three Months Ended September
30, 2021
Same-Store
Office
Non-Same-
Store Office
Total Office
Hotel
Lending
Total
Cash net operating income excluding lease
termination income
$
6,963
$
728
$
7,691
$
880
$
4,869
$
13,440
Cash lease termination income
246
—
246
—
—
246
Cash net operating income
$
7,209
$
728
$
7,937
$
880
$
4,869
$
13,686
Deferred rent and amortization of
intangible assets, liabilities, and lease inducements
(320
)
—
(320
)
(3
)
—
(323
)
Straight line lease termination income
(104
)
—
(104
)
—
—
(104
)
Segment net operating income (loss)
6,785
728
7,513
877
4,869
13,259
Asset management and other fees to related
parties
(2,262
)
Expense reimbursements to related
parties—corporate
(533
)
Interest expense
(2,080
)
General and administrative
(753
)
Depreciation and amortization
(5,061
)
Income before benefit for income taxes
2,570
Provision for income taxes
(946
)
Net income
1,624
Net income attributable to noncontrolling
interests
—
Net income attributable to the Company
$
1,624
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221114006058/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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