Creative Media & Community Trust Corporation Reports $12.6 Million Net Loss in Q3 2025

Creative Media & Community Trust Corporation (CMCT) reported a net loss of $12.6 million for the third quarter of 2025, compared to a net loss of $10.6 million in the same period last year, marking a 19% increase in losses. Total revenues for the quarter were $26.2 million, down 8.3% from $28.6 million in the prior year, primarily due to a decrease in rental income from office and multifamily properties. The company’s total expenses rose to $38.7 million, a slight increase of 2.1% from $37.9 million in the previous year, driven by higher depreciation and interest expenses.

For the nine months ended September 30, 2025, CMCT's total revenues decreased by 9.1% to $88.2 million from $97.1 million in the same period of 2024. The net loss for this period was $28 million, significantly higher than the $15.3 million loss reported in the previous year. The increase in net loss was attributed to a decline in segment net operating income and an increase in interest expenses, which rose by $3.2 million. The company also recognized a gain of $679,000 from the sale of real estate during the nine-month period.

Operationally, CMCT's real estate portfolio consisted of 27 assets, with an occupancy rate of 69.8% for its 12 office properties and 85.3% for its four multifamily properties as of September 30, 2025. The hotel segment reported a revenue per available room (RevPAR) of $158.92, reflecting an increase from the previous year. The company also noted a decrease in the number of loans receivable, which totaled $51.5 million, down from $56.2 million at the end of 2024, alongside a rise in expected credit losses to $2.6 million.

Strategically, CMCT is in the process of selling its lending business, First Western SBLC, Inc., for an estimated $44 million, which is expected to yield approximately $31 million in net cash proceeds after settling outstanding debts. This move aligns with the company's focus on enhancing its real estate portfolio, particularly in multifamily properties. The company has also been actively managing its preferred stock, redeeming shares and adjusting its capital structure to improve liquidity and financial stability.

Looking ahead, CMCT anticipates continued challenges in the real estate market, influenced by economic conditions such as inflation and interest rates. The company is committed to optimizing its asset management strategies and maintaining compliance with Nasdaq listing requirements, which are critical for its operational and financial health.