Creative Media & Community Trust Corporation Reports $9.2 Million Net Loss in Q2 2025

Creative Media & Community Trust Corporation (CMCT) reported a net loss of $9.2 million for the second quarter of 2025, a significant increase from a loss of $852,000 in the same period last year. Total revenues for the quarter decreased by 13.8% to $29.7 million, down from $34.4 million in the prior year. The decline in revenue was primarily attributed to lower rental income from office and multifamily properties, as well as decreased hotel income. Total expenses rose to $38.2 million, up 5.9% from $36.1 million, largely due to increased interest expenses and transaction-related costs.

For the first half of 2025, CMCT's net loss reached $15.4 million, compared to a loss of $4.8 million in the same period of 2024. Total revenues for the six months ended June 30, 2025, were $62.0 million, down 9.4% from $68.4 million in the previous year. The increase in net loss was driven by a decrease in segment net operating income and a rise in interest expenses, which increased by $2.4 million compared to the prior year. Funds from operations (FFO), a key performance metric for real estate investment trusts, were $(13.3) million for the first half of 2025, a decrease from $(9.2) million in the same period last year.

Operationally, CMCT's portfolio consisted of 27 properties, with an overall occupancy rate of 68.1% for its office properties and 83.4% for its multifamily properties as of June 30, 2025. The company also reported a RevPAR (revenue per available room) of $171.63 for its hotel segment. The company has been focusing on its multifamily properties, which it views as a strategic priority moving forward. CMCT's lending segment generated $2.1 million in revenue for the second quarter, down from $2.6 million in the previous year, reflecting a decrease in interest income due to loan payoffs and lower interest rates.

In terms of strategic developments, CMCT has been actively managing its capital structure, including a recent refinancing of its 2022 credit facility and the establishment of a new $20 million revolving credit facility. The company also plans to continue redeeming preferred stock in shares of common stock, which it has done for a significant portion of its outstanding preferred shares. Looking ahead, CMCT aims to strengthen its balance sheet and improve liquidity while focusing on its core strategy of investing in premier multifamily properties. The company remains cautious about market conditions, including inflation and interest rates, which could impact its operations and financial performance.