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CLOSED · 21:35 ET
Market ClerkRecap
Wed Oct 21 · markets closed2 signals today78 insider buys this week · $240.8MCIRO short report next: Oct 31The week ahead

CMCT

Creative Media & Community Trust Corp
NASDAQ · REAL ESTATE · REAL ESTATE INVESTMENT TRUSTS
4.10
−1.62 −28.32%
USD · close Oct 21
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Work order
11
FLAG · shorts 11
Insiders, 90 days
0
no open-market filings in 90 days
Congress, 90 days
0 / 0
no disclosures naming it
Big money
0 / 15
none of the tracked funds disclose it
Calls on record
0
nobody we score has called it yet
MKT CAP $12.1MP/E —DIV YIELD —FCF YIELD —REV TTM $113.8M −3.6%NET INCOME −$42.1MNET DEBT $486M52W 1.92 – 1,288.00SEC XBRL · TTM TO Invalid Date

How CMCT rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025
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New in FY2025

  • Securities Authorized for Issuance Under Equity Compensation Plans The following table provides information as of December 31, 2025 with respect to shares of our Common Stock, either under options or in respect of restricted stock awards that may be issued under existing equity compensation plans, all of which have been approved by our stockholders.
  • Plan Category Number of shares of Common Stock to be issued upon exercise of outstanding options Weighted average exercise price of outstanding options Number of shares of Common Stock remaining available for future issuances under equity compensation plans (all in restricted shares of Common Stock) Equity incentive plan — N/A 227,414 Recent Sales of Unregistered Securities and Use of Proceeds During the years ended December 31, 2025 and 2024, we redeemed, at our option, 0 and 2,589,606 shares of Series A1 Preferred Stock, respectively, all of which were paid in shares of Common Stock, including all accrued and unpaid dividends as of the applicable redemption date and, in addition, we redeemed 536,737 and 181,912 shares of Series A1 Preferred Stock at the option of the holders during the years ended December 31, 2025 and 2024, respectively, that were paid in shares of Common Stock, including all accrued and unpaid dividends as of the applicable redemption date (collectively, the “Series A1 In-Kind Redemptions”).
  • The Series A1 In-Kind Redemptions resulted in the aggregate issuance of 1,010,063 and 192,698 shares of Common Stock during the years ended December 31, 2025 and 2024, respectively.
  • During the years ended December 31, 2025 and 2024, we redeemed, at our option, 0 and 2,150,076 shares of Series A Preferred Stock, all of which were paid in shares of Common Stock, including all accrued and unpaid dividends as of the applicable redemption date and, in addition, we redeemed 456,345 and 214,713 shares at the option of the holders during the years ended December 31, 2025 and 2024, respectively, that were paid in shares of Common Stock, including all accrued and unpaid dividends as of the applicable redemption date (collectively, the “Series A In-Kind Redemptions”).
  • The Series A In-Kind Redemptions resulted in the aggregate issuance of 1,177,243 and 175,167 shares of Common Stock, respectively.
  • During the year ended December 31, 2025, we redeemed 4,122 shares of Series D Preferred Stock that were paid in shares of Common Stock, including all accrued and unpaid dividends as of the applicable redemption date (collectively, the “Series D In-Kind Redemptions”).
  • All such redemptions were redeemed at the option of the holders.
  • The Series D In-Kind Redemptions resulted in the aggregate issuance of 11,556 shares of Common Stock.
  • Properties As of December 31, 2025, 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 being classified as a multifamily property) and one commercial development site.
  • As of December 31, 2025, our 12 office properties, totaling approximately 1.3 million rentable square feet, were 74.8% occupied and our one 505-room hotel with an ancillary parking garage, had RevPAR of $152.70 for the year ended December 31, 2025 and our five multifamily properties were 85.3% occupied.
  • Additionally, as of December 31, 2025, we had eight development sites (two of which were being used as parking lots).
  • Rental Rate Trends Office Statistics: The following table sets forth occupancy rates and annualized rent per occupied square foot across our office portfolio as of the specified periods (includes 100% of our properties partially owned through Unconsolidated Joint Ventures): As of December 31, 2025 2024 Occupancy (1) 74.8 % 70.6 % Annualized rent per occupied square foot (1)(2) $ 58.78 $ 60.48 (1) The information presented in this table represents historical information as of the date indicated without giving effect to any property sales occurring thereafter.
  • Total abatements, representing lease incentives in the form of free rent, for the twelve months ended December 31, 2025 and 2024 were approximately $1.6 million and $1.1 million, respectively.
  • Giving effect to abatements, net annualized rent per occupied square foot was $54.90 and $59.93 as of December 31, 2025 and 2024, respectively (See Definitions for more detail).
  • Over the next four quarters, we expect to see expiring cash rents as set forth in the table below (includes 100% of our properties partially owned through Unconsolidated Joint Ventures): For the Three Months Ended March 31, 2026 June 30, 2026 September 30, 2026 December 31, 2026 Expiring Cash Rents: Expiring square feet (1) 20,003 35,226 30,978 21,607 Expiring rent per square foot (2) $ 44.49 $ 56.38 $ 49.26 $ 55.77 (1) Month-to-month tenants occupying a total of 4,193 square feet are included in the expiring leases in the first quarter listed.
  • (2) Represents gross monthly base rent, as of December 31, 2025, under leases expiring during the periods above, multiplied by 12.
  • During the year ended December 31, 2025, we executed leases with terms longer than 12 months totaling 182,120 square feet.
  • The table below sets forth information on certain of our executed leases during the year ended December 31, 2025, excluding space that was vacant for more than one year, month-to-month leases, leases with an original term of less than 12 months, related party leases, and space where the previous tenant was a related party: New Cash Expiring Cash Number of Rentable Rents per Square Rents per Square Leases (1) Square Feet Foot (2) Foot (2) Year Ended December 31, 2025 26 93,931 $ 45.04 $ 60.51 (1) Based on the number of tenants that signed leases.
  • Additionally, decreased demand and other negative trends or unforeseeable events that impair our ability to timely renew or re lease space could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Preferred Stock or renew dividends on our Common Stock.
  • Multifamily Statistics: The following table sets forth occupancy rates and the monthly rent per occupied unit across our multifamily portfolio for the specified periods (includes 100% of our properties partially owned through an Unconsolidated Joint Venture): As of December 31, 2025 2024 Occupancy 85.3 % 81.7 % Monthly rent per occupied unit (1) $ 2,497 $ 2,468 ______________________ (1) Represents gross monthly base rent under leases commenced as of the specified period, divided by occupied units.
  • Net of rent concessions granted in the specified period, monthly rent per occupied unit was $2,127 and $2,319 as of December 31, 2025 and 2024, respectively.
  • Hotel Statistics: The following table sets forth the occupancy, ADR and RevPAR for our hotel in Sacramento, California for the specified periods: For the Year Ended December 31, 2025 2024 Occupancy 72.5 % 67.2 % ADR $ 210.54 $ 202.26 RevPAR $ 152.70 $ 135.90 Seasonality Our revenues and expenses for our hotel property are subject to seasonality during the year.
  • Lending Segment Prior to the divestiture described in this paragraph, we were a national lender that primarily originated loans to small businesses.
  • As previously announced on November 12, 2025, the Company and First Western entered into the Membership Interest Purchase Agreement with the Buyer.
  • The Closing occurred on January 21, 2026.
  • At the Closing, pursuant to the Membership Interest Purchase Agreement, and upon the terms and subject to the conditions therein, Buyer purchased from the Company all of the issued and outstanding equity interests of First Western SBLC, LLC 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 adjustment.
  • At the Closing and upon 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. 2025 Results of Operations Net Loss and FFO Year Ended December 31, Change 2025 2024 $ % (dollars in thousands) Total revenues $ 116,669 $ 124,512 $ (7,843) (6.3) % Total expenses $ 152,666 $ 148,658 $ 4,008 2.7 % Gain on sale of real estate $ 679 $ — $ 679 N/A Net loss $ (39,575) $ (25,750) $ (13,825) 53.7 % The Company had a net loss of $39.6 million for the year ended December 31, 2025, representing an increase of $13.8 million compared to a net loss of $25.8 million for the year ended December 31, 2024.
  • The increase was primarily due to a decrease of $7.2 million in segment net operating income (discussed in more detail below in “Summary Segment Results”), an increase in interest expense not allocated to our operating segments of $4.1 million, an increase in impairment of real estate of $3.7 million, and an increase in expense reimbursements to related parties - corporate of $1.2 million.
  • These were partially offset by a decrease in loss on early extinguishment of debt of $1.3 million and a gain on sale of real estate of $679,000 recognized in the current year.
  • The following table sets forth a historical reconciliation of net (loss) attributable to common stockholders to FFO attributable to holders of common stockholders: Year Ended December 31, 2025 2024 (in thousands) Net loss attributable to common stockholders (1) $ (61,648) $ (73,343) Depreciation and amortization 27,081 27,373 Noncontrolling interests’ proportionate share of depreciation and amortization (233) (306) Impairment of real estate 3,692 — Loss on assets held for sale 298 — Gain on sale of real estate (679) — FFO attributable to common stockholders (1) $ (31,489) $ (46,276) (1) During the years ended December 31, 2025 and 2024, we recognized $1.4 million and $17.7 million, respectively, of redeemable preferred stock redemptions.
  • Such amounts are included in, and have the effect of increasing, net loss attributable to common stockholders and decreasing FFO attributable to common stockholders because redeemable preferred stock redemptions are not an adjustment prescribed by NAREIT.
  • FFO attributable to common stockholders, which is a non-GAAP measure, was $(31.5) million for the year ended December 31, 2025, an increase of $14.8 million compared to $(46.3) million for the year ended December 31, 2024.
  • The increase in FFO was primarily attributable to a decrease in redeemable preferred stock redemptions of $16.3 million, a decrease in redeemable preferred stock dividends of $8.5 million and a decrease in loss on early extinguishment of debt of $1.3 million.
  • These were partially offset by a decrease of $7.2 million in segment net operating income (discussed in more detail below in “Summary Segment Results”) and an increase in interest expense not allocated to our operating segments of $4.1 million.
  • Summary Segment Results During the years ended December 31, 2025 and 2024, we operated in four segments: office, hotel and multifamily properties and lending.
  • Year Ended December 31, Change 2025 2024 $ % (dollars in thousands) Revenues: Office $ 50,140 $ 54,283 $ (4,143) (7.6) % Hotel $ 41,341 $ 39,407 $ 1,934 4.9 % Multifamily $ 15,783 $ 19,515 $ (3,732) (19.1) % Lending $ 8,960 $ 10,756 $ (1,796) (16.7) % Expenses: Office $ 25,804 $ 27,327 $ (1,523) (5.6) % Hotel $ 29,598 $ 27,955 $ 1,643 5.9 % Multifamily $ 12,786 $ 13,715 $ (929) (6.8) % Lending $ 4,838 $ 7,556 $ (2,718) (36.0) % Income (Loss) From Unconsolidated Entities Office $ (254) $ 462 $ (716) NM* Multifamily $ (3,506) $ (1,268) $ (2,238) NM* Non-Segment Revenue and Expenses: Interest and other income $ 445 $ 551 $ (106) (19.2) % Asset management and other fees to related parties $ (1,356) $ (1,797) $ 441 (24.5) % Expense reimbursements to related parties—corporate $ (3,496) $ (2,281) $ (1,215) 53.3 % Interest expense $ (37,720) $ (33,589) $ (4,131) 12.3 % General and administrative $ (4,434) $ (4,267) $ (167) 3.9 % Transaction-related costs $ (1,475) $ (1,382) $ (93) 6.7 % Depreciation and amortization $ (27,081) $ (27,373) $ 292 (1.1) % Loss on early extinguishment of debt $ (88) $ (1,416) $ 1,328 (93.8) % Impairment of real estate $ (3,692) $ — $ (3,692) N/A Loss on assets held for sale $ (298) $ — $ (298) N/A Gain on sale of real estate $ 679 $ — $ 679 N/A Provision for income taxes $ (497) $ (798) $ 301 (37.7) % ______________________ (*) Percentage changes in excess of 100% are deemed to be not meaningful (“NM”) Revenues Office Revenue: Office revenue includes rental revenue, expense reimbursements and lease termination income from office properties.
  • Office revenue decreased to $50.1 million for the year ended December 31, 2025 from $54.3 million for the year ended December 31, 2024.
  • The decrease was primarily due to a decrease in rental revenues at office properties in Oakland, California, Los Angeles, California, and San Francisco, California as a result of lower occupancies, partially offset by an increase in rental revenues at office properties in Beverly Hills, California and Austin, Texas as a result of increased occupancy and rental rates.
  • Hotel Revenue: Hotel revenue increased to $41.3 million for the year ended December 31, 2025, compared to $39.4 million for the year ended December 31, 2024.

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Gone since FY2024

  • Securities Authorized for Issuance Under Equity Compensation Plans The following table provides information as of December 31, 2024 with respect to shares of our Common Stock, either under options or in respect of restricted stock awards that may be issued under existing equity compensation plans, all of which have been approved by our stockholders.
  • Plan Category Number of shares of Common Stock to be issued upon exercise of outstanding options Weighted average exercise price of outstanding options Number of shares of Common Stock remaining available for future issuances under equity compensation plans (all in restricted shares of Common Stock) Equity incentive plan — N/A 262,058 Recent Sales of Unregistered Securities and Use of Proceeds On December 20, 2022, we issued to the Operator an aggregate of 36,663 shares of our Series A1 Preferred Stock as payment, in lieu of cash, for $916,575 of asset management fees owed to the Operator under the Investment Management Agreement for the third quarter of 2022.
  • Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.
  • Shares of Series A1 Preferred Stock may be redeemed at our option or at the option of the holder for a redemption price payable in cash or shares of Common Stock as described in Note 11 to the consolidated financial statements included in this Annual Report on Form 10-K.
  • In December 2022, the Company announced the redemption of all outstanding shares of its Series L Preferred Stock.
  • In January 2023, the Company completed such previously-announced redemption of all outstanding shares of its Series L Preferred Stock in cash at its stated value of $28.37 per share (plus accrued and unpaid dividends of $1.56 per share, or $4.6 million in the aggregate).
  • The total cost to complete the Series L Redemption, including transaction costs of $ 93,000 (or $ 0.03 per share), was $ 83.8 million.
  • During the quarter ended September 30, 2024, we redeemed, at the option of the Company, 2,589,606 shares of Series A1 Preferred Stock in shares of Common Stock, resulting in issuance of 3,297,298 shares of Common Stock.
  • During the quarter ended September 30, 2024 and December 31, 2024, we redeemed 1,010 and 180,902 shares of Series A1 Preferred Stock in shares of Common Stock at the option of the holders, respectively, resulting in issuance of 2,590 and 1,517,599 shares of Common Stock, respectively.
  • During the quarter ended September 30, 2024, we redeemed, at the option of the Company, 2,150,076 shares of Series A Preferred Stock in shares of Common Stock, resulting in issuance of 2,733,230 shares of Common Stock.
  • During the quarter ended December 31, 2024, we redeemed 214,713 shares of Series A1 Preferred Stock in shares of Common Stock at the option of the holders resulting in issuance of 1,645,869 shares of Common Stock.
  • Properties As of December 31, 2024, 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, one multifamily site currently under development, two multifamily properties (one of which has been partially converted from office into multifamily units and is now being classified as a multifamily property) and one commercial development site.
  • As of December 31, 2024, our 12 office properties, totaling approximately 1.3 million rentable square feet, were 70.6% occupied and our one 505-room hotel with an ancillary parking garage, had RevPAR of $135.90 for the year ended December 31, 2024 and our four multifamily properties were 81.7% occupied.
  • Additionally, as of December 31, 2024, we had nine development sites (three of which were being used as parking lots).
  • Rental Rate Trends Office Statistics: The following table sets forth occupancy rates and annualized rent per occupied square foot across our office portfolio as of the specified periods (includes 100% of our properties partially owned through Unconsolidated Joint Ventures): As of December 31, 2024 2023 Occupancy (1) 70.6 % 83.8 % Annualized rent per occupied square foot (1)(2) $ 60.48 $ 57.17 (1) The information presented in this table represents historical information as of the date indicated without giving effect to any property sales occurring thereafter.
  • Total abatements, representing lease incentives in the form of free rent, for the twelve months ended December 31, 2024 and 2023 were approximately $1.1 million and $3.0 million, respectively.
  • Giving effect to abatements, net annualized rent per occupied square foot was $59.93 and $55.95 as of December 31, 2024 and 2023, respectively (See Definitions for more detail).
  • Over the next four quarters, we expect to see expiring cash rents as set forth in the table below (includes 100% of our properties partially owned through Unconsolidated Joint Ventures): For the Three Months Ended March 31, June 30, September 30, December 31, 2025 2025 2025 2025 Expiring Cash Rents: Expiring square feet (1) 44,273 29,537 32,658 3,857 Expiring rent per square foot (2) $ 61.41 $ 73.47 $ 57.11 $ 46.67 (1) Month-to-month tenants occupying a total of 4,371 square feet are included in the expiring leases in the first quarter listed.
  • (2) Represents gross monthly base rent, as of December 31, 2024, under leases expiring during the periods above, multiplied by 12.
  • During the year ended December 31, 2024, we executed leases with terms longer than 12 months totaling 269,811 square feet.
  • The table below sets forth information on certain of our executed leases during the year ended December 31, 2024, excluding space that was vacant for more than one year, month-to-month leases, leases with an original term of less than 12 months, related party leases, and space where the previous tenant was a related party: New Cash Expiring Cash Number of Rentable Rents per Square Rents per Square Leases (1) Square Feet Foot (2) Foot (2) Twelve Months Ended December 31, 2024 26 260,796 $ 52.74 $ 53.92 (1) Based on the number of tenants that signed leases.
  • Additionally, decreased demand and other negative trends or unforeseeable events that impair our ability to timely renew or re lease space could have a material adverse effect on our business, financial condition, results of operations, cash flow or our ability to satisfy our debt service obligations or to maintain our level of distributions on our Common Stock or Preferred Stock.
  • Multifamily Statistics: The following table sets forth occupancy rates and the monthly rent per occupied unit across our multifamily portfolio for the specified periods (includes 100% of our properties partially owned through an Unconsolidated Joint Venture): As of December 31, 2024 2023 Occupancy 81.7 % 79.3 % Monthly rent per occupied unit (1) $ 2,468 $ 2,805 ______________________ (1) Represents gross monthly base rent under leases commenced as of the specified period, divided by occupied units.
  • Net of rent concessions granted in the specified period, monthly rent per occupied unit was $2,319 and $2,074 as of December 31, 2024 and 2023, respectively.
  • Hotel Statistics: The following table sets forth the occupancy, ADR and RevPAR for our hotel in Sacramento, California for the specified periods: For the Year Ended December 31, 2024 2023 Occupancy (1) 67.2 % 75.1 % ADR $ 202.26 $ 194.12 RevPAR $ 135.90 $ 145.80 ______________________ (1) Hotel occupancy in 2024 was negatively impacted by ongoing construction related to the Rooms Renovation Project from September 2024 through December 2024.
  • Seasonality Our revenues and expenses for our hotel property are subject to seasonality during the year.
  • Lending Segment Through our loans originated under the SBA 7(a) Program, we are a national lender that primarily originates loans to small businesses.
  • We identify loan origination opportunities through personal contacts, internet referrals, attendance at trade shows and meetings, direct mailings, advertisements in trade publications and other marketing methods.
  • We also generate loans through referrals from real estate and loan brokers, franchise representatives, existing borrowers, lawyers and accountants.
  • The SBA 7(a) Loan Program is the SBA’s most common loan program.
  • The maximum loan amount for an SBA 7(a) loan is $5.0 million.
  • Key eligibility factors are based on what the business does to generate its income, its credit history, the liquidity of the borrower, size standards and where the business operates.
  • We work with potential borrowers to identify the type of loan that would be appropriate for each such borrower’s needs.
  • Our SBA 7(a) term loans have monthly repayment terms of principal and interest and are originated with variable interest rates based on the prime rate.
  • Most of our SBA 7(a) loans have maturities of approximately 25 years.
  • While we have focused on originating real estate loans almost exclusively to the limited service and mid-scale hospitality industry, we intend to increase our efforts to originate other real estate collateralized loans.
  • These loans are anticipated to be primarily concentrated in industries in which we previously had positive experience, including convenience store, RV park and single purpose building owner-occupied restaurant operations and may include owner-occupied industrial operations/warehouse buildings. 2024 Results of Operations Net Loss and FFO Year Ended December 31, Change 2024 2023 $ % (dollars in thousands) Total revenues $ 124,512 $ 119,258 $ 5,254 4.4 % Total expenses $ 148,658 $ 170,163 $ (21,505) (12.6) % Net loss $ (25,750) $ (51,456) $ 25,706 (50.0) % The Company had a net loss of $25.8 million for the year ended December 31, 2024, representing a decrease of $25.7 million compared to a net loss of $51.5 million for the year ended December 31, 2023.
  • The decrease was primarily due to a decrease of $25.1 million in depreciation and amortization expense (discussed in more detail below in “Summary Segment Results”) and a decrease in transaction costs of $3.0 million, partially offset by an increase in interest expense not allocated to our operating segments of $2.2 million and a loss on extinguishment of debt of $1.4 million.
  • The following table sets forth a historical reconciliation of net (loss) attributable to common stockholders to FFO attributable to holders of common stockholders: Year Ended December 31, 2024 2023 (in thousands) Net loss attributable to common stockholders (1) $ (73,343) $ (75,727) Depreciation and amortization 27,373 52,484 Noncontrolling interests’ proportionate share of depreciation and amortization (306) (2,090) Gain on sale of real estate — (1,104) FFO attributable to common stockholders (1) $ (46,276) $ (26,437) (1) During the years ended December 31, 2024 and 2023, we recognized $17.7 million and $1.5 million, respectively, of redeemable preferred stock redemptions on our consolidated statements of operations and $755,000 and $0 respectively, of redeemable preferred stock deemed dividends on our consolidated statements of operations.

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Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2024 ↗, FY2025 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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