Fri, Mar 7, 9:12 PM (53 days ago)
Creative Media & Community Trust Corporation (CMCT) reported a net loss of $25.8 million for the year ended December 31, 2024, a significant reduction from a loss of $51.5 million in 2023. Revenue increased by 4.4% to $124.5 million, driven by a 73.9% rise in multifamily revenue, while office and hotel revenues declined slightly. Total expenses decreased by 12.6% to $148.7 million, primarily due to reduced depreciation and transaction costs. As of December 31, 2024, CMCT's portfolio consisted of 27 assets, including 12 office properties with a 70.6% occupancy rate and one hotel with a RevPAR of $135.90. The multifamily segment had an 81.7% occupancy rate. The company’s strategy focuses on acquiring and developing multifamily and creative office properties in high-growth areas. CMCT faces risks including reliance on major tenants, fluctuating interest rates, and compliance with REIT regulations. The company has substantial debt, with $440.4 million outstanding, and is navigating compliance issues with its credit facility. Future financing and operational strategies will be critical to maintaining liquidity and achieving growth objectives.