Creative Media & Community Trust Corporation (NASDAQ:CMCT) Announces Earnings Results

Creative Media & Community Trust Corporation (NASDAQ:CMCT) issued its quarterly earnings results on Friday. The real estate investment trust reported ($4.03) earnings per share for the quarter, missing the consensus estimate of ($3.11) by ($0.92), FiscalAI reports. Creative Media & Community Trust Corporation had a negative return on equity of 226.47% and a negative net margin of 36.20%.The business had revenue of $29.68 million for the quarter, compared to the consensus estimate of $28.10 million.

Here are the key takeaways from Creative Media & Community Trust Corporation’s conference call:

• Multifamily performance improved sharply, with occupancy reaching 95.3% on a same-store basis and multifamily NOI rising 238% year over year. In-place rents remain about 12% below current asking rents, supporting potential further NOI growth as leases roll over.
• Hotel NOI increased 11% year over year following renovations to all 505 guest rooms and public areas. CMCT is also evaluating the addition of eight guest rooms, which management believes could be accretive.
• Core FFO improved to negative $3.4 million from negative $7.0 million a year earlier, primarily because preferred dividends declined by $4.3 million. However, the company remained FFO-negative, while fair-value adjustments increased losses from unconsolidated entities.
• Office NOI declined to $4.0 million from $5.5 million, and CMCT’s Oakland office mortgage matured in early July without being refinanced. The company is negotiating with the servicer after choosing not to provide the additional capital required for refinancing.
• Management is considering selling one or more real estate assets to strengthen the balance sheet and potentially narrow the gap between CMCT’s share price and its view of portfolio value.

Creative Media & Community Trust Corporation Price Performance

Shares of CMCT traded down $0.35 during mid-day trading on Friday, reaching $4.74. The company had a trading volume of 83,956 shares, compared to its average volume of 26,056. Creative Media & Community Trust Corporation has a 1-year low of $2.29 and a 1-year high of $1,441.00. The company has a debt-to-equity ratio of 2.67, a quick ratio of 1.78 and a current ratio of 1.78. The company has a market capitalization of $13.08 million, a price-to-earnings ratio of -0.00 and a beta of 0.79. The company’s 50 day simple moving average is $3.58 and its 200 day simple moving average is $65.45.

Wall Street Analyst Weigh In

CMCT has been the topic of several recent research reports. Wall Street Zen upgraded shares of Creative Media & Community Trust Corporation from a “sell” rating to a “hold” rating in a research note on Saturday, June 27th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Creative Media & Community Trust Corporation in a research report on Friday, June 26th. Finally, Zacks Research upgraded Creative Media & Community Trust Corporation to a “hold” rating in a research note on Friday, June 5th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Creative Media & Community Trust Corporation presently has a consensus rating of “Reduce”.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CMCT. Virtu Financial LLC acquired a new position in Creative Media & Community Trust Corporation during the 4th quarter worth about $55,000. Kestra Advisory Services LLC bought a new stake in Creative Media & Community Trust Corporation in the fourth quarter worth approximately $52,000. Arkadios Wealth Advisors acquired a new position in Creative Media & Community Trust Corporation in the fourth quarter valued at approximately $43,000. Finally, Cerity Partners LLC acquired a new position in Creative Media & Community Trust Corporation in the fourth quarter valued at approximately $43,000. Institutional investors own 28.34% of the company’s stock.

About Creative Media & Community Trust Corporation

Creative Media & Community Trust Corporation is a real estate investment trust (REIT) that specializes in originating and acquiring first-lien mortgage loans on non-owner-occupied residential properties in the United States. The company focuses on providing capital to real estate investors and rental homeowners, offering financing solutions tailored to single-family homes, small multifamily properties and other residential real estate investments. Its business model centers on underwriting, closing and servicing mortgage loans that help facilitate real estate acquisitions, refinancings and portfolio expansions for its clients.

The company’s loan portfolio is diversified across key U.S.