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

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

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 Stock Performance

Shares of NASDAQ:CMCT traded down $0.35 during trading on Friday, reaching $4.74. The stock had a trading volume of 83,956 shares, compared to its average volume of 26,056. The company has a quick ratio of 1.78, a current ratio of 1.78 and a debt-to-equity ratio of 2.67. The stock has a fifty day simple moving average of $3.58 and a two-hundred day simple moving average of $65.45. The firm has a market capitalization of $13.08 million, a price-to-earnings ratio of -0.00 and a beta of 0.79. Creative Media & Community Trust Corporation has a 52 week low of $2.29 and a 52 week high of $1,441.00.

Hedge Funds Weigh In On Creative Media & Community Trust Corporation

Large investors have recently made changes to their positions in the company. Virtu Financial LLC acquired a new stake in shares of Creative Media & Community Trust Corporation during the 4th quarter worth approximately $55,000. Kestra Advisory Services LLC bought a new position in Creative Media & Community Trust Corporation during the 4th quarter worth approximately $52,000. Arkadios Wealth Advisors bought a new stake in Creative Media & Community Trust Corporation in the fourth quarter valued at approximately $43,000. Finally, Cerity Partners LLC bought a new position in shares of Creative Media & Community Trust Corporation during the fourth quarter worth $43,000. Institutional investors and hedge funds own 28.34% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Zacks Research upgraded shares of Creative Media & Community Trust Corporation to a “hold” rating in a research note on Friday, June 5th. 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, Weiss Ratings reaffirmed a “sell (d)” rating on shares of Creative Media & Community Trust Corporation in a report on Friday, June 26th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Reduce”.

About Creative Media & Community Trust Corporation

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.