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

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

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 Trading Down 6.9%

NASDAQ:CMCT traded down $0.35 during midday trading on Friday, hitting $4.74. 83,956 shares of the company traded hands, compared to its average volume of 26,056. The firm has a market capitalization of $13.08 million, a P/E ratio of -0.00 and a beta of 0.79. The firm’s fifty day moving average is $3.58 and its 200-day moving average is $65.45. Creative Media & Community Trust Corporation has a 12-month low of $2.29 and a 12-month high of $1,441.00. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of 2.67.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on CMCT shares. Weiss Ratings restated a “sell (d)” rating on shares of Creative Media & Community Trust Corporation in a research report on Friday, June 26th. Wall Street Zen upgraded shares of Creative Media & Community Trust Corporation from a “sell” rating to a “hold” rating in a report on Saturday, June 27th. Finally, Zacks Research upgraded shares of Creative Media & Community Trust Corporation to a “hold” rating in a research report on Friday, June 5th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Reduce”.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Arkadios Wealth Advisors bought a new position in Creative Media & Community Trust Corporation during the fourth quarter valued at $43,000. Cerity Partners LLC purchased a new position in shares of Creative Media & Community Trust Corporation during the 4th quarter worth about $43,000. Kestra Advisory Services LLC bought a new position in Creative Media & Community Trust Corporation during the 4th quarter valued at about $52,000. Finally, Virtu Financial LLC purchased a new stake in Creative Media & Community Trust Corporation in the 4th quarter worth about $55,000. 28.34% of the stock is owned by hedge funds and other institutional investors.

Creative Media & Community Trust Corporation Company Profile

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.